Appendix 2: Details of the non-standard audit reports issued in 2011

Local government: Results of the 2010/11 audits.

Adverse opinions

These details relate to non-standard audit reports issued during the 2011 calendar year. Where an entity is directly controlled by, or associated with, one or more city, district, or regional councils, we have listed them in brackets.

Southland Museum and Art Gallery Trust Board (Gore District Council, Invercargill City Council, and Southland District Council) Financial statements year ended: 30 June 2011 We disagreed with the Trustees not recognising the museum's collection, or the associated depreciation expense, in the Trust's financial statements. These are departures from New Zealand Equivalent to International Accounting Standard 16: Property, Plant and Equipment (NZ IAS 16). NZ IAS 16 requires museum collections to be recognised and depreciated as assets in the financial statements during their useful lives.
Far North Regional Museum Trust (Far North District Council) Financial statements year ended: 30 June 2009 We disagreed with the Trustees not recognising the museum's collection, or the associated depreciation expense, in the Trust's financial statements. These are departures from Financial Reporting Standard No. 3: Accounting for Property, Plant and Equipment (FRS 3). FRS 3 requires museum collections to be recognised and depreciated as assets in the financial statements during their useful lives.
Otago Museum Trust Board Financial statements year ended: 30 June 2011 We disagreed with the Trustees not recognising the museum's collection, or the associated depreciation expense, in the Trust's financial statements. These are departures from New Zealand Equivalent to International Accounting Standard 16: Property, Plant and Equipment (NZ IAS 16). NZ IAS 16 requires museum collections to be recognised and depreciated as assets in the financial statements during their useful lives.
Pukaki Trust Financial statements year ended: 30 June 2010 >We disagreed with the Trustees not recognising the artworks in the Trust's financial statements. This is a departure from New Zealand Equivalent to International Accounting Standard 16: Property, Plant and Equipment (NZ IAS 16). NZ IAS 16 requires the artworks to be recognised and depreciated as assets in the financial statements during their useful lives.
Crops for Southland Incorporated Society (Gore District Council, Invercargill City Council, and Southland District Council) Financial statements year ended: 30 June 2011 We disagreed with the Society not reporting performance information that reflected the Society's achievements, measured against its performance targets. Doing so is required by the Local Government Act 2002.
New Zealand Food Innovation (Manukau) Limited (Auckland Council) Financial statements and statements of service performance year ended: 30 June 2011 We disagreed with the company not reporting performance information that reflected the company's achievements, measured against its performance targets. Doing so is required by the Local Government Act 2002.
Dunedin (New Zealand) Masters Games Trust (Dunedin City Council) Financial statements and statements of service performance year ended: 30 June 2011 We disagreed with the Trust not reporting performance information that reflected the Trust's achievements, measured against its performance targets. Doing so is required by the Local Government Act 2002. Our audit was limited because we were unable to obtain enough evidence to confirm the revenue for the previous year and use it as a comparator (the Trust had limited controls over the previous year's revenue).

Disclaimers of opinion

Christchurch City Council and group Annual report year ended: 30 June 2011 We were unable to form an opinion on the Council and group's financial statements as a whole, other than the statement of cash flows, because of the significant damage to the Council's assets caused by the Canterbury earthquakes. The Council could not account for the impact of the earthquakes' on its assets because it could not estimate the effect with enough reliability when the audit was carried out. However, the Council did disclose that the earthquakes had affected its assets and why it could not reflect that effect in the financial statements. Specifically, we could not get enough assurance: that the value of the property, plant, and equipment assets (valued at fair value) was correct, because there was no market evidence available to perform a revaluation in keeping with the requirements of New Zealand Equivalent to International Accounting Standard 16: *Property, Plant and Equipment* (NZ IAS 16); that there had not been a material movement in the replacement costs for infrastructure assets (valued using depreciated replacement cost) because no revaluations could be performed and appropriate replacement cost rates could not be determined with enough reliability; and to support the impairment losses and property, plant, and equipment values of the Council's subsidiary Vbase Limited (which is included in the group financial statements, and Vbase Limited's assets were substantially damaged by the earthquakes). Our audit was also limited because we could not get enough audit evidence to support the "what did it cost" sections of the other information and the associated variance explanations. We could issue an unmodified opinion on the Council and group's statement of cash flows. Although we could not form an opinion on the Council and group's financial statements as a whole, other than the statement of cash flows, we provided assurance that we got enough appropriate audit evidence for the information included in the financial statements. The exceptions to this were the: carrying amount of property, plant, and equipment, asset revaluation reserves, and retained earnings in the balance sheet; related impairment losses, loss on disposals, and depreciation charged to the profit/loss in the statement of comprehensive income; and related property, plant, and equipment valuation gains/losses and the impairment losses charged to other comprehensive income in the statement of comprehensive income. The audit report outlined that the Council and group reported non-financial performance information even though the Canterbury Earthquake (Local Government Act 2002) Order 2011 removed the requirement in the Local Government Act 2002 for that information to be reported. We did not audit the non-financial performance information, because it did not have to be reported.
Tuam Limited (Christchurch City Council) Financial statements and statement of service performance year ended: 30 June 2011 We could not form an opinion on the financial statements and the statement of service performance, other than the cash flow statement, because we could not carry out adequate audit procedures to work out the effect of the Canterbury earthquakes on those statements. Specifically: the extent of earthquake damage suffered by the properties was unknown because of restrictions on access to properties; the investment properties could not be revalued as required by New Zealand Equivalent to International Accounting Standard 16: Property, Plant and Equipment (NZ IAS 16) because the independent valuer advised that there was no market evidence to support a reliable fair value for the properties as at 30 June 2011; any adjustment to the fair value of investment properties as a result of earthquake damage would affect the surplus/deficit for the year; and the tax treatment of investment properties depends on their future use and that use was unknown because of the uncertainties around the extent of earthquake damage. Therefore, current and deferred tax balances associated with the investment properties could not be determined easily.
Curries Proprietary Limited (Christchurch City Council) Financial statements 15-month period ended: 30 June 2011 We were unable to form an opinion on the company's statement of comprehensive income and the statement of changes in equity because we were unable to obtain enough appropriate audit evidence to confirm the balances in the statement of financial position as at 31 March 2010. This limitation in scope occurred because the company had not been audited in the previous period, and we were unable to gain access to the accounting records for the previous period.
Whatitiri Domain Board Financial statements year ended: 30 June 2008 We were unable to form an opinion on the financial statements of the Board because we were unable to obtain enough assurance about the completeness of revenue (because the Board had limited controls over that revenue). We were also unable to determine whether all payments recorded in the statement of financial performance had been properly incurred or correctly classified because there was inadequate supporting documentation for the Board's expenditure.
Ongarue Hall Society Incorporated Statement of accounts year ended: 30 June 2006 We were unable to form an opinion on the financial statements of the Society because we were unable to obtain enough assurance about the completeness of revenue (because the Society had limited controls over that revenue). We were also unable to get enough appropriate audit evidence to support all expenditure and to confirm transactions that occurred during the period from July 2005 to 30 May 2006 because the bank statements for that period were lost.
Oakura Reserve Board Financial statements year ended: 30 June 2004 We were unable to form an opinion on the financial statements of the Board because: we were unable to obtain representations about certain material matters that the Board is responsible for; we were unable to obtain enough assurance about the completeness of revenue (because the Board had limited controls over that revenue); and budgeted figures were not included in the statements of financial performance, financial position, and cash flows, even though including them is a requirement of the Public Finance Act 1989.
Oakura Reserve Board Financial statements years ended: 30 June 2005, 30 June 2006, 30 June 2007, and 30 June 2008 We could not form an opinion on the financial statements of the Board because: we could not get representations about certain material matters that the Board is responsible for; we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue); and budgeted figures were not included in the statements of financial performance, financial position and cash flows, even though including them is a requirement of the Public Finance Act 1989. We noted that our previous year's audits were limited because we could not provide assurance about the comparative information.
Ohingaiti Cemetery Statement of accounts year ended: 31 March 2010 We could not form an opinion on the statement of accounts because we could not verify some revenue (because the Trustees had limited controls over that revenue). We could not work out whether all payments recorded in the statement of accounts had been incurred properly or classified correctly. We noted a breach of the Burial and Cremation Act 1964 because the Trustees failed to keep a register of burials.
Hawea Cemetery Trust Statement of accounts years ended: 31 March 2007, 31 March 2008, 31 March 2009, and 31 March 2010 We could not form an opinion on the statement of accounts because we could not get enough appropriate audit evidence (because the Trustees did not retain all bank statements and other accounting records). We could not work out which receipts and payments happened during the year. We noted a breach of the Burial and Cremation Act 1964 because the Trustees failed to keep full accounts of all money received and spent.

Qualified opinions

Tauranga Art Gallery Trust (Tauranga City Council) Financial statements and statement of service performance year ended: 30 June 2011 We disagreed with the Board not recognising the artworks of the Trust at fair value. This departs from New Zealand Equivalent to International Accounting Standard 16: Property, Plant and Equipment (NZ IAS 16), which requires entities to measure items of property, plant, and equipment at fair value and to carry out revaluations with enough regularity to ensure that revalued items are not included at a value that is materially different to their fair value.
Mt Wellington Licensing Trust and group Financial statements year ended: 31 March 2008 We disagreed with the Trustees not preparing group financial statements to consolidate the financial statements of its subsidiary, Mt Wellington Charitable Trust. This departs from the New Zealand Equivalent to International Accounting Standard 27: Consolidated and Separate Financial Statements (NZ IAS 27). NZ IAS 27 requires an entity that has one or more subsidiaries at its reporting date to prepare consolidated financial statements for the group, including the parent and all of its subsidiaries.
Waimakariri District Council and group Annual report year ended: 30 June 2011 Our audit was limited because we could not get enough audit evidence to confirm the: carrying value of property, plant, and equipment and infrastructural assets; impairment charged to the revaluation reserves and surplus/deficit; and associated effects of damage to the above from the Canterbury earthquakes. This limitation in scope also affected the service provision information reported by the Council. We issued an unmodified opinion on the Council and group's statement of cash flows and other schedule 10 information.
Grey District Council Annual report year ended: 30 June 2011 Our audit was limited because we could not get enough appropriate audit evidence to support the Council's estimates of the time it took to respond to various ratepayers' complaints and requests for service. The Council did not collect data for this performance measure.
Manukau Building Consultants Limited (Manukau City Council) Financial statements and performance information 16-month period ended: 31 October 2010 Our audit of the comparative information was limited because, for the year ended 30 June 2009, we could not work out the effect of an adjustment made to regulatory fee income between 2008 and 2009. We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately in preparing the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Manukau Building Consultants Limited and vested its assets and liabilities in Auckland Council.
Auckland Regional Transport Network Limited and group (Auckland City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We disagreed with the company not reporting performance information that reflected the company's achievements, measured against its performance targets. Doing so is required by the Local Government Act 2002. We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Auckland Regional Transport Network Limited and group and vested its assets and liabilities in Auckland Transport.
Te Ahu Charitable Trust (Far North District Council) Financial statements year ended: 30 June 2010 We disagreed with the Trust not reporting performance information that reflected the Trust's achievements, measured against its performance targets. The Local Government Act 2002 requires this reporting.
Kaikoura Enhancement Trust and group (Kaikoura District Council) Financial statements and performance information year ended: 30 June 2007 We disagreed with the Trust not reporting performance information that reflected the Trust's achievements, measured against its performance targets. The Local Government Act 2002 requires this reporting. We drew attention to the disclosures in the financial statements that the Trust did not prepare a statement of intent for the period beginning 1 July 2007.
Tauranga City Aquatics Limited (Tauranga City Council) Financial statements and performance information year ended: 30 June 2011 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the company had limited controls over that revenue).
Tauranga City Investments Limited and group (Tauranga City Council) Financial statements and statement of service performance year ended: 30 June 2011 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the company and group had limited controls over that revenue).
Tauranga City Venues Limited (Tauranga City Council) Financial statements and performance information year ended: 30 June 2011 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the company had limited controls over that revenue).
Te Kauwhata Licensing Trust Financial statements year ended: 31 March 2009, 31 March 2010, and 31 March 2011 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Trust had limited controls over that revenue).
Awakaponga Public Hall Board Financial statements years ended: 30 June 2008, 30 June 2009, and 30 June 2010 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue).
Coates Memorial Church Board Statement of accounts years ended: 30 June 2009 and 30 June 2010 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue).
Mataroa Hall Board Financial statements years ended: 30 June 2009 and 30 June 2010 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue).
Millerton Hall Board Statement of financial position and operating statement years ended: 30 June 2008, and 30 June 2009 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue).
Ohau Hall Board Financial statements years ended: 30 June 2003 and 30 June 2004 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue).
Ohau Hall Board Financial statements year ended: 30 June 2005 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue). We could not substantiate the amount, nature, and use of petty cash.
Papanui Hall Board Financial statements year ended: 30 June 2008 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue).
Ongarue Hall Society Incorporated Statement of accounts years ended: 30 June 2007, 30 June 2008, and 30 June 2009 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue).
Taurikura Hall Board Statement of accounts year ended: 30 June 2010 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue).
Ruakaka Central Domain Board Statement of accounts years ended: 30 September 2006, 30 September 2007, 30 September 2008, 30 September 2009, and 30 September 2010 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue).
Whatitiri Domain Board Financial statements year ended: 30 June 2009 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Board had limited controls over that revenue). Our audit of the comparative information for the year ended 30 June 2008 was limited (because the Board had limited control over revenue and inadequate supporting documentation for its spending).
Ohingaiti Cemetery Statement of accounts years ended: 30 June 2008, and 30 June 2009 Our audit was limited because we could not verify some revenue (because the Trustees had limited controls over that revenue) or work out whether some expenditure recorded in the statement of accounts had been incurred properly or classified correctly. We noted a breach of the Burial and Cremation Act 1964 because the Trustees failed to keep a register of burials.
Springfield Cemetery Statement of accounts year ended: 31 March 2010 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Trustees had limited controls over that revenue).
Rai Valley Cemetery Trustees Statement of accounts year ended: 31 March 2009 Our audit was limited because we could not get enough assurance about the completeness of revenue (because the Trustees had limited controls over that revenue). We could not get enough supporting documents for payments or work out whether some expenditure recorded in the statement of accounts had been incurred properly or classified correctly.
Lepperton Cemetery Statement of accounts year ended: 31 March 2010 Our audit was limited because we could not get enough assurance about the completeness of payments (because the Trustees had inadequate documentation of payments).
Owaka Cemetery Trust Statement of accounts year ended: 31 March 2010 Our audit was limited because we could not get appropriate audit evidence to support all of the Trustees' payments.

"Emphasis of matter" paragraphs

Auckland City Council and group Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved the Auckland City Council and group, and their functions, duties, and powers were transferred to Auckland Council. As a consequence of that reorganisation, all the assets and liabilities of the Auckland City Council and group were vested in Auckland Council and the entities it controls.
Auckland Regional Council and group Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because on, 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved the Auckland Regional Council and group, and their functions, duties, and powers were transferred to Auckland Council and Environment Waikato. As a consequence of that reorganisation, all the assets and liabilities of the Auckland Regional Council and group were vested in Auckland Council, Environment Waikato, and Auckland Council's controlled entities.
Manukau City Council and group Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Manukau City Council and group, and their functions, duties, and powers were transferred to Auckland Council. As a consequence of that reorganisation, all the assets and liabilities of the Manukau City Council and group were vested in Auckland Council and its controlled entities.
North Shore City Council and group Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved North Shore Council and group, and their functions, duties, and powers were transferred to Auckland Council. As a consequence of that reorganisation, all the assets and liabilities of the North Shore Council and group were vested in Auckland Council and its controlled entities.
Papakura District Council and group Financial statements and service performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Papakura District Council and group, and their functions, duties, and powers were transferred to Auckland Council. As a consequence of that reorganisation, all the assets and liabilities of the Papakura District Council and group were vested in Auckland Council and its controlled entities.
Rodney District Council and group Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Rodney District Council and group, and their functions, duties, and powers were transferred to Auckland Council. As a consequence of that reorganisation, all the assets and liabilities of Rodney District Council and group were vested in Auckland Council and its controlled entities.
Waitakere City Council and group Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Waitakere City Council and group, and their functions, duties, and powers were transferred to Auckland Council. As a consequence of that reorganisation, all the assets and liabilities of the Waitakere City Council and group were vested in Auckland Council and its controlled entities.
Franklin District Council Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved the Council, and its functions, duties, and powers were transferred to Auckland City, Hauraki District Council, and Waikato District Council. As a consequence of that reorganisation, all the assets and liabilities of the Franklin District Council were vested in Auckland Council, Hauraki District Council, and Waikato District Council, and related controlled entities.
Aotea Centre Board of Management (Auckland City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Aotea Centre Board of Management and vested its assets and liabilities in Regional Facilities Auckland Limited.
ARTNL Britomart Limited (Auckland City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved ARTNL Britomart Limited and vested its assets and liabilities in Auckland Transport.
Auckland Tourism and Visitors Trust (Auckland City Council) Financial statements 16 month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because the Trust's assets, liabilities, contractual rights, and obligations were transferred to Auckland Tourism Events and Economic Development Limited on 1 November 2010.
Metrowater Limited and group (Auckland City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Metrowater Limited and group and vested the assets and liabilities of the company and group in Watercare Services Limited.
Sea + City Projects Limited (Auckland City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Sea + City Projects Limited and vested its assets and liabilities in Auckland Waterfront Development Agency Limited.
Tomorrow's Manukau Properties (Flat Bush) Limited (Auckland City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved TMPL (Flat Bush) Limited and vested its assets and liabilities in Auckland Council.
Tomorrow's Manukau Properties Limited and group (Auckland City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Tomorrow Manukau Properties Limited and group and vested their assets and liabilities in Auckland Council.
Auckland Regional Holdings and group (Auckland Regional Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Auckland Holdings Limited and group and vested their assets and liabilities in Auckland Council.
Auckland Regional Transport Authority (Auckland Regional Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Auckland Regional Transport Authority and vested its assets and liabilities in Auckland Transport.
Manukau Leisure Services Limited (Manukau City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Manukau Leisure Limited and vested its assets and liabilities in Auckland Council.
Manukau Water Limited (Manukau City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Manukau Water Limited and vested its assets and liabilities in Watercare Services Limited.
Manukau Enterprise and Employment Trust (Manukau City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Manukau Enterprise and Employment Trust and vested its assets and liabilities in Auckland Tourism, Events and Economic Development Limited.
NSC Holdings Limited (North Shore City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved NSC Holdings Limited and vested its assets and liabilities in Auckland Council.
Enterprise North Shore Trust (North Shore City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Enterprise North Shore Trust and vested its assets and liabilities in Auckland Tourism, Events & Economic Development Limited.
Rodney Properties Limited (Rodney District Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Rodney Properties Limited and vested its assets and liabilities in Auckland Council.
Waitakere City Holdings Limited and group (Waitakere City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Waitakere City Holdings Limited and group and vested their assets and liabilities in Auckland Council.
Waitakere Enterprise Trust Board (Waitakere City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved the Trust Board and vested its assets and liabilities in Auckland Tourism Events and Economic Development Limited.
Waitakere Properties Limited (Waitakere City Council) Financial statements and performance information 16-month period ended: 31 October 2010 We drew attention to the disclosures in the financial statements that referred to the dissolution basis being used appropriately to prepare the financial statements because, on 1 November 2010, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 dissolved Waitakere Properties Limited and vested its assets and liabilities in Auckland Council.
Franklin Art, Culture and Library Trust (Franklin District Council) Financial statements year ended: 30 June 2010 We drew attention to that referred to the dissolution basis appropriately being used in preparing the financial statements because, on 1 July 2010, the Trust was dissolved and the Franklin libraries were transferred to Franklin District Council. The other arts and culture learning assets and liabilities were vested in a new trust, Franklin Arts, Culture and Learning Trust.
City of Manukau Education Trust (Manukau City Council) Financial statements and performance information year ended: 30 June 2010 We drew attention the disclosures in the financial statements that refer to the new local government structure for the Auckland region. Decisions were yet to be made about Auckland Council's structure and operations, including how the Trust would be vested and integrated.
Manukau Beautification Charitable Trust (Manukau City Council) Financial statements and performance information year ended: 30 June 2010 We drew attention the disclosures in the financial statements that refer to the new local government structure for the Auckland region. Decisions were yet to be made about Auckland Council's structure and operations, including how the Trust would be vested and integrated.
Pakuranga Arts and Cultural Trust (Manukau City Council) Financial statements and performance information year ended: 30 June 2010 We drew attention the disclosures in the financial statements that refer to the new local government structure for the Auckland region. Decisions were yet to be made about Auckland Council's structure and operations, including how the Trust would be vested and integrated.
Central Plains Water Trust (Selwyn District Council and Christchurch City Council) Financial statements year ended: 30 June 2011 We drew attention to the disclosures in the financial statements that referred to the uncertainties surrounding the going concern assumption. The validity of the going concern assumption depends on continued funding from Central Plains Water Limited or other sources.
Ruawhata Public Hall Board Financial statements year ended: 30 June 2008, 30 June 2009, and 30 June 2010 We drew attention to the disclosures in the financial statements that referred to the uncertainties over the disestablishment of the Board and the transfer of its activities to the Department of Conservation. The Department was yet to decide whether it would approve the disestablishment of the Board.
Grow Wellington Limited and group (Greater Wellington Regional Council) Financial statements and statement of service performance year ended: 30 June 2011 We drew attention the disclosures in the financial statements that referred to the uncertainties surrounding the continued existence of the company. The validity of the going concern assumption depended on the outcome of Greater Wellington Regional Council's 2012-22 LTP process.
Creative HQ Limited (Greater Wellington Regional Council) Financial statements and statement of service performance year ended: 30 June 2011 We drew attention the disclosures in the financial statements that referred to the uncertainties surrounding the continued existence of the company. The validity of the going concern assumption depended on the outcome of Greater Wellington Regional Council's 2012-22 LTP process.
New Zealand Mutual Liability Riskpool Financial statements year ended: 30 June 2011 We drew attention to the disclosures in the financial statements about the uncertainties involved in estimating how the Weathertightness Home Resolution Service might affect the outstanding claims provision and reinsurance receivables of the Scheme using actuarial assumptions. We drew attention to the fact that the going concern assumption had being used appropriately to prepare the financial statements because the Trustee of Riskpool is able to levy members to cover any shortfall in equity under the terms of the Trust Deed.
Waitomo District Council and group Annual report year ended: 30 June 2011 We drew attention to the disclosures in the financial statements outlining the serious financial difficulties experienced by the Council and group's subsidiary, Inframax Construction Limited (the company). The Council had invested capital in the company to enable it to meet its short-term cash flow obligations. The disclosures outlined that, although the group financial statements had been prepared on a going concern basis, the going concern assumption of the company depended on: the continuing support of the company's lenders; continued support from the Council of the company's recovery plan; and the ability of the company to meet its forecast performance.
Inframax Construction Limited (Waitomo District Council) Financial statements and statement of performance measures year ended: 30 June 2011 We drew attention to the disclosures in the financial statements outlining the serious financial difficulties experienced by the company, including the net loss incurred for the year ended 30 June 2011 and the resulting uncertainties about the use of the going concern assumption. The validity of the going concern assumption depended on: the continuing support of the company's lenders; continued support from Waitomo District Council for the company's recovery plan; and the ability of the company to meet its forecast performance.
Bay Broadband Limited Financial statements year ended: 30 June 2011 We drew attention to the disclosures in the financial statements that referred to the going concern assumption appropriately not being used in preparing the financial statements. The company ceased trading and the company is to be deregistered.
Cranberries New Zealand Limited Financial statements year ended: 31 March 2011 We drew attention to the disclosures in the financial statements that referred to the going concern assumption appropriately not being used in preparing the financial statements. The company ceased trading in May 2010.
Dunedin Transport Limited (formerly Citibus Limited) (Dunedin City Council) Financial statements year ended: 30 June 2011 We drew attention to the disclosures in the financial statements that referred to the going concern assumption appropriately not being used in preparing the financial statements. The company ceased trading after its assets were sold on 31 May 2011.
Forever Beech Limited Financial statements year ended: 31 March 2011 We drew attention to the disclosures in the financial statements that referred to the going concern assumption appropriately not being used in preparing the financial statements because the company ceased trading in July 2009.
St James Theatre Charitable Trust and group (Wellington City Council) Financial statements year ended: 30 June 2011 We drew attention to the disclosures in the financial statements that referred to the going concern assumption appropriately not being used in preparing the financial statements. The Trust and group was wound up after 30 June 2011 and the operations of the Trust and St James Theatre Limited were transferred to Wellington Venues Limited.
St James Theatre Limited (Wellington City Council) Financial statements year ended: 30 June 2011 We drew attention to the disclosures in the financial statements that referred to the going concern assumption appropriately not being used in preparing the financial statements. The company was wound up after 30 June 2011 and its operations were transferred to Wellington Venues Limited.
Whangarei Tourism Trust (Whangarei District Council) Financial statements year ended: 30 June 2011 We drew attention to the disclosures in the financial statements that referred to the going concern assumption appropriately not being used in preparing the financial statements. The Trustees intended to wind up the Trust within the next 12 months.
Mana Taverns Limited Financial statements year ended: 31 March 2011 We drew attention to the disclosures in the financial statements that referred to the realisation basis appropriately being used in preparing the financial statements because the company is ceasing to operate.
Local Government Industry Training Organisation Financial statements year ended: 31 December 2010 We drew attention to the disclosures in the financial statements that referred to the realisation basis appropriately being used in preparing the financial statements because the organisation is ceasing to operate.
Southland Flood Relief Fund Financial statements year ended: 30 June 2011 We drew attention to the disclosures in the financial statements that referred to the dissolution basis appropriately being used in preparing the financial statements. Section 8 of Southland Flood Relief Committee Empowering Act 1992 requires the Trustees to wind up the fund on or by 23 March 2012.
The Trusts Charitable Foundation Incorporated Financial statements year ended: 31 March 2011 We drew attention to the disclosures in the financial statements that referred to the dissolution basis appropriately being used in preparing the financial statements. The Trustees intended to wind up the Foundation within the next 12 months.
Rangitikei Mayoral Flood Relief Trust (Rangitikei District Council) Financial statements year ended: 30 June 2010 We drew attention to the disclosures in the financial statements that referred to the going concern assumption appropriately not being used in preparing the financial statements. The Trust was to be wound up and its assets and operations transferred to the Wanganui-Manawatu Regional Disaster Relief Fund Trust.
Orion New Zealand Limited and group (Christchurch City Council) Financial statements and performance statements year ended: 31 March 2011 We drew attention to the disclosures in the financial statements and performance statements that referred to: the effect of the Canterbury earthquakes on the company and group's financial performance; and the company's ability to report against forecast electricity network reliability targets, as set out in its statement of intent.
Central Otago District Council Annual report year ended: 30 June 2011 We drew attention to the disclosures in the financial statements about the Council having inadequate and incomplete performance measures in the performance framework in the 2009/19 LTCCP, which contained a qualified audit opinion. Since then, the Council has improved its performance framework and made progress in explaining the relationship between community outcomes, service levels, performance measures, and targets. The revised performance measures provide an appropriate basis for a meaningful assessment of the Council's performance.
South Port New Zealand Limited and group (Environment Southland) Financial statements year ended: 30 June 2011 We drew attention to the disclosures in the financial statements that referred to the provision for unforeseen repairs and maintenance. This provision did not meet the definition of a liability and should not be recognised as such. Even though it was not material to the financial statements as a whole, we felt it important to highlight it to the readers of the financial statements.
Dunedin Venues Limited (Dunedin City Council) Financial statements years ended: 30 June 2010 and 30 June 2011 We drew attention to the disclosures in the financial statements about the company not having a statement of service performance. The company is inactive and did not have any performance to report for the period ended 30 June 2011.
Novus Contracting Limited (South Taranaki District Council) Financial statements year ended: 30 June 2011 We drew attention to the disclosures in the financial statements about the company not having a statement of service performance. The company is inactive and did not have any performance to report for the period ended 30 June 2011.
Waikato District Community Wellbeing Trust (Waikato District Council) Financial statements one-month period ended 30 June 2010 We drew attention to the disclosures in the financial statements outlining that the company did not prepare a statement of service performance. The Trust is inactive and did not have any performance to report for the period ended 30 June 2010.
Waikato District Community Wellbeing Trust (Waikato District Council) Financial statements year ended: 30 June 2011 We drew attention to the disclosures in the financial statements outlining that the company did not prepare a statement of service performance. The Trust is inactive and did not have any performance to report. The Trust also failed to complete its statement of intent by 30 June 2011, for the period beginning 1 July 2011.
The North Shore Domain and North Harbour Stadium Trust Board (North Shore City Council) Financial statements year ended: 28 February 2010 We drew attention to a breach of the Local Government Act 2002 because the Trust failed to have a June balance date. A June balance date is a requirement of the Act.

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