Independent Audit Opinion
To the Parliament of Western Australia
PUBLIC TRANSPORT AUTHORITY OF WESTERN AUSTRALIA FINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORS FOR THE YEAR ENDED 30 JUNE 2010
I have audited the accounts, financial statements, controls and key performance indicators of the Public Transport Authority of Western Australia.
The financial statements comprise the Statement of Financial Position as at 30 June 2010, and the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, a summary of significant accounting policies and other explanatory Notes.
The key performance indicators consist of key indicators of effectiveness and efficiency.
Chief Executive Officer’s Responsibility for the Financial Statements and Key Performance Indicators
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 the key performance indicators. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements and key performance indicators that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making accounting estimates that are reasonable in the circumstances; and complying with the Financial Management Act 2006 and other relevant written law.
Summary of my Role
As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements, controls and key performance indicators based on my audit. This was done by testing selected samples of the audit evidence. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Further information on my audit approach is provided in my audit practice statement. This document is available on the OAG website under “How We Audit”.
An audit does not guarantee that every amount and disclosure in the financial statements and key performance indicators is error free. The term “reasonable assurance” recognises that an audit does not examine all evidence and every transaction. However, my audit procedures should identify errors or omissions significant enough to adversely affect the decisions of users of the financial statements and key performance indicators.
Public Transport Authority of Western Australia Financial Statements and Key Performance Indicators for the year ended 30 June 2010
Audit Opinion
In my opinion,
- the financial statements are based on proper accounts and present fairly the financial position of the Public Transport Authority of Western Australia at 30 June 2010 and its financial performance and cash flows for the year ended on that date. They are in accordance with Australian Accounting Standards and the Treasurer’s Instructions;
- the controls exercised by the Authority 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; and
- the key performance indicators of the Authority are relevant and appropriate to help users assess the Authority’s performance and fairly represent the indicated performance for the year ended 30 June 2010.
Matter of Significance
Without qualification to the audit opinion, I draw attention to the following matter. As disclosed in Note 4 to the financial statements for the year ended 30 June 2009, uncertainty existed concerning the valuation of the Authority’s Freight Network Infrastructure (FNI). At that time there had not been a formal valuation of the FNI since 1993. At 30 June 2009, the FNI had a gross carrying value of $303 million, compared to the total gross carrying value of the Authority’s infrastructure of $5.366 billion.
During 2009-10, a valuation was performed and the valuation of the FNI increased by $1.1 billion. However uncertainty remains as to whether the balance at 30 June 2009 of $303 million represented the fair value of the FNI at that time.
GLEN CLARKE
DEPUTY AUDITOR GENERAL
15 September 2010