To the readers of the Ministry of Transport’s financial statements, the non-financial performance information and statements and schedules of non-departmental activities for the year ended 30 June 2014.

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The Auditor‑General is the auditor of the Ministry of Transport (the Ministry). The Auditor‑General has appointed me, Kelly Rushton, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and performance information of the Ministry for the year ended 30 June 2014.

We have audited:

  • the financial statements of the Ministry comprising the statement of financial position, statement of commitments, statement of contingent liabilities and contingent assets as at 30 June 2014, the statement of comprehensive income, statement of changes in equity, statement of departmental expenses and capital expenditure against appropriations, statement of departmental unappropriated expenditure and capital expenditure and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information;
  • the non-financial performance information of the Ministry comprising the statement of objectives and service performance, which includes outcomes; and
  • the statements and schedules of non-departmental activities of the Ministry comprising the schedule of non-departmental assets, schedule of non-departmental liabilities and revaluation reserves, schedule of non-departmental contingent liabilities and contingent assets as at 30 June 2014, the schedule of non-departmental expenses, statement of non-departmental expenditure and capital expenditure against appropriations, statement of non-departmental unappropriated expenses and capital expenditure, schedule of non-departmental revenue and receipts, schedule of non-departmental capital receipts and statement of trust monies, for the year ended on that date and the notes to the schedules that include accounting policies and other explanatory information.

Unqualified Opinion

In our opinion:

  • The financial statements of the Ministry as listed above:
    • comply with generally accepted accounting practice in New Zealand; and
    • fairly reflect the Ministry’s:
      • financial position as at 30 June 2014;
      • financial performance and cash flows for the year ended on that date;
      • expenses and capital expenditure incurred against each appropriation administered by the Ministry and each class of outputs included in each output expense appropriation for the year ended 30 June 2014; and
      • unappropriated expenses and capital expenditure for the year ended 30 June 2014.
  • The non-financial performance information of the Ministry as listed above:
    • complies with generally accepted accounting practice in New Zealand; and
    • fairly reflects the Ministry’s service performance and outcomes for the year ended 30 June 2014, including for each class of outputs:
      • its service performance compared with the forecasts in the statement of forecast service performance at the start of the financial year; and
      • its actual revenue and output expenses compared with the forecasts in the statement of forecast service performance at the start of the financial year.
  • the statements and schedules of non-departmental activities of the Ministry as listed above, fairly reflect, in accordance with the Treasury Instructions:
    • the assets, liabilities, contingencies and trust monies as at 30 June 2014 managed by the Ministry on behalf of the Crown; and
    • the revenues, expenses, expenditure and capital expenditure against appropriations and unappropriated expenditure and capital expenditure for the year ended on that date managed by the Ministry on behalf of the Crown.

Our audit was completed on 30 September 2014. This is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Chief Executive and our responsibilities, and we explain our independence.

Basis of Opinion

We carried out the audit in accordance with the Auditor‑General’s Auditing Standards, which incorporate the New Zealand Auditing Standards.

We planned and performed our audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statementsand performance information did not have material misstatements, whether caused by fraud or error.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and performance information.  If we had found material misstatements that were not corrected, we would have referred to them in the opinion.

Our audit involved performing procedures to test the information presented in the financial statements and performance information. We assessed the results of those procedures in forming our opinion.

Audit procedures generally include:

  • determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data;
  • verifying samples of transactions and account balances;
  • performing analyses to identify anomalies in the reported data;
  • reviewing significant estimates and judgements made by the Ministry;
  • confirming year-end balances;
  • determining whether accounting policies are appropriate and consistently applied; and
  • determining whether all financial statement disclosures are adequate.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and performance information.

We evaluated the overall adequacy of the presentation of information in the financial statementsand performance information. We obtained all the information and explanations we required to support the opinion above.

Responsibilities of the Chief Executive

The Chief Executive is responsible for preparing:

  • financial statements and non-financial performance information that:
    • comply with generally accepted accounting practice in New Zealand;
    • fairly reflect the Ministry’s financial position, financial performance, cash flows, expenses and capital expenditure incurred against each appropriation and its unappropriated expenses and capital expenditure; and
    • fairly reflect its service performance and outcomes; and
  • statements and schedules of non-departmental activities, in accordance with the Treasury Instructions, that fairly reflect those activities managed by the Ministry on behalf of the Crown.

The Chief Executive is also responsible for such internal control as is determined is necessary to enable the preparation of financial statements, non-financial performance information and statements and schedules of non-departmental activities that are free from material misstatement, whether due to fraud or error. The Chief Executive is also responsible for the publication of the financial statements, non-financial performance information and statements and schedules of non-departmental activities, whether in printed or electronic form.

The Chief Executive’s responsibilities arise from the Public Finance Act 1989.

Responsibilities of the Auditor

We are responsible for expressing an independent opinion on the financial statements, the non-financial performance information and the statement and schedules of non-departmental activities and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and the Public Finance Act 1989.

Independence

When carrying out the audit we followed the independence requirements of the Auditor‑General, which incorporate the independence requirements of the External Reporting Board.

Kelly Rushton
Audit New Zealand
On behalf of the Auditor-General
Wellington, New Zealand

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