Independent Audit Opinion
INDEPENDENT AUDITOR’S REPORT
To the Parliament of Western Australia
PUBLIC TRANSPORT AUTHORITY OF WESTERN AUSTRALIA
Report on the Financial Statements
I have audited the accounts and financial statements of the Public Transport Authority of Western Australia.
The financial statements comprise the Statement of Financial Position as at 30 June 2011, the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and Notes comprising a summary of significant accounting policies and other explanatory information.
Chief Executive Officer’s Responsibility for the Financial Statements
The Chief Executive Officer is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the Treasurer’s Instructions, and for such internal control as the Chief Executive Officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements based on my audit. The audit was conducted in accordance with Australian Auditing Standards. Those Standards require compliance with relevant ethical requirements relating to audit engagements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Authority’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Chief Executive Officer, as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
In my opinion, the financial statements are based on proper accounts and present fairly, in all material respects, the financial position of the Public Transport Authority of Western Australia at 30 June 2011 and its financial performance and cash flows for the year then ended. They are in accordance with Australian Accounting Standards and the Treasurer’s Instructions.
Matter of Significance
I draw attention to the carrying value of the Freight Network Infrastructure (FNI) asset as at 1 July 2009. As there had not been a formal valuation of this asset since 2003, there was uncertainty as to whether the carrying value as at 1 July 2009 represented fair value. The FNI asset was revalued to fair value as at 30 June 2010 resulting in a revaluation increment of $1.1 billion. My opinion is not modified in respect to this matter.
Report on Controls
I have audited the controls exercised by the Public Transport Authority of Western Australia. The Chief Executive Officer is responsible for ensuring that adequate control is maintained over the receipt, expenditure and investment of money, the acquisition and disposal of public and other property, and the incurring of liabilities in accordance with the Financial Management Act 2006 and the Treasurer’s Instructions, and other relevant written law.
As required by the Auditor General Act 2006, my responsibility is to express an opinion on the controls exercised by the Chief Executive Officer based on my audit conducted in accordance with Australian Auditing Standards.
Opinion
In my opinion, the controls exercised by the Public Transport Authority of Western Australia are sufficiently adequate to provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions.
Report on the Key Performance Indicators
I have audited the key performance indicators of the Public Transport Authority of Western Australia. The Chief Executive Officer is responsible for the preparation and fair presentation of the key performance indicators in accordance with the Financial Management Act 2006 and the Treasurer’s Instructions.
As required by the Auditor General Act 2006, my responsibility is to express an opinion on the key performance indicators based on my audit conducted in accordance with Australian Auditing Standards.
Opinion
In my opinion, the key performance indicators of the Public Transport Authority of Western Australia are relevant and appropriate to assist users to assess the Authority’s performance and fairly represent indicated performance for the year ended 30 June 2011.
Independence
In conducting this audit, I have complied with the independence requirements of the Auditor General Act 2006 and the Australian Auditing Standards, and other relevant ethical requirements.
COLIN MURPHY
AUDITOR GENERAL
16 September 2011