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To the readers of the Ministry of Transport's financial statements, statement of service performance and schedules of non-departmental activities for the year ended 30 June 2011

The Auditor‑General is the auditor of the Ministry of Transport (the Ministry). The Auditor‑General has appointed me, John O'Connell, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements, statement of service performance and the schedules of non‑departmental activities of the Ministry on her behalf.

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 2011, the statement of comprehensive income, statement of movement in taxpayer’s funds, 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 statement of service performance of the Ministry; and
  • the schedules of non‑departmental activities of the Ministry comprising the schedule of non-departmental revenue and receipts, schedule of non-departmental expenses, schedule of non-departmental assets, schedule of non-departmental liabilities, statement of non-departmental expenditure and capital expenditure against appropriations, details of multi-year appropriations, statement of non-departmental commitments, statement of non-departmental contingent liabilities, statement of non-departmental unappropriated expenditure for the year ended on that date and the notes to the schedules that include accounting policies and other explanatory information.

Opinion

In our opinion:

  • the financial statements of the Ministry:
    • comply with generally accepted accounting practice in New Zealand; and
    • fairly reflect the Ministry’s:
      • financial position as at 30 June 2011; and
      • 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 2011; and
      • unappropriated expenses and capital expenditure for the year ended 30 June 2011
  • the statement of service performance of the Ministry:
    • complies with generally accepted accounting practice in New Zealand; and
    • fairly reflects for each class of outputs for the year ended 30 June 2011 the Ministry’s:
      • service performance compared with the forecasts in the statement of forecast service performance at the start of the financial year; and
      • actual revenue and output expenses compared with the forecasts in the statement of forecast service performance at the start of the financial year.
  • the schedules of non‑departmental activities of the Ministry, fairly reflect:
    • the assets, liabilities, contingencies, commitments and trust monies as at 30 June 2011 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 2011. 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 our audit in accordance with the Auditor‑General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements, the statement of service performance and the schedules of non‑departmental activities are free from material misstatement.

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

An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements, the statement of service performance and the schedules of non‑departmental activities. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements, the statement of service performance and the schedules of non‑departmental activities, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Ministry’s preparation of the financial statements, the statement of service performance and the schedules of non‑departmental activities that fairly reflect the matters to which they relate. We consider internal control in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Ministry’s internal control.

An audit also involves evaluating:

  • the appropriateness of accounting policies used and whether they have been consistently applied;
  • the reasonableness of the significant accounting estimates and judgements made by the Chief Executive;
  • the adequacy of all disclosures in the financial statements, the statement of service performance and the schedules of non‑departmental activities; and
  • the overall presentation of the financial statements, the statement of service performance and the schedules of non‑departmental activities.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements, the statement of service performance and the schedules of non‑departmental activities. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

Responsibilities of the Chief Executive

The Chief Executive is responsible for preparing:

  • financial statements and a statement of service performance 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 reflects its service performance; and
  • schedules of non‑departmental activities, in accordance with the Treasury Instructions 2010 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, a statement of service performance and schedules of non‑departmental activities that are free from material misstatement, whether due to fraud or error.

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 statement of service performance and the 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 New Zealand Institute of Chartered Accountants.

Other than the audit, we have no relationship with or interests in the Ministry.

John O’Connell

Audit New Zealand
On behalf of the Auditor‑General
Wellington, New Zealand

Important disclaimer by the Auditor-General on audited financial statements on this website

Please note that the maintenance and integrity of the financial statements in parliamentary papers on this website is the responsibility of the Office of the Clerk of the House of Representatives.

I, as Auditor-General, and my appointed auditors, accept no responsibility for any changes that may have occurred or may occur to financial statements audited by us in regard to the presentation of those financial statements on this website.

Our audit reports refer only to those financial statements named within a particular audit report. They do not provide an opinion on any other information that may have been hyperlinked to/from those audited financial statements.

If readers of this web site are concerned about the inherent risks arising from electronic data communication, they should refer to the published hard copies of the audited financial statements to confirm the information.

Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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