Publications
Annual Report
2007-2008
Audit Report
To the readers of the Earthquake Commision's financial statements and statement of service performance for the year ended 30 June 2009
The Auditor General is the auditor of the Earthquake Commission (the Commission). The Auditor General has appointed me, John O'Connell, using the staff and resources of Audit New Zealand, to carry out the audit. The audit covers the financial statements and statement of service performance included in the annual report of the Commission for the year ended 30 June 2009.
Unqualified Opinion
In our opinion:
- The financial statements of the Commission on pages 17 to 38:
- comply with generally accepted accounting practice in New Zealand; and
- fairly reflect:
- The Commissionfs financial position as at 30 June 2009; and
- the results of its operations and cash flows for the year ended on that date.
- The statement of service performance of the Commission on pages 39 to 43:
- complies with generally accepted accounting
- practice in New Zealand; and
- fairly reflects for each class of outputs:
- its standards of delivery performance achieved, as compared with the forecast standards outlined in the statement of forecast service performance adopted at the start of the financial year; and
- its actual revenue earned and output expenses incurred, as compared with the forecast revenues and output expenses outlined in the statement of forecast service performance adopted at the start of the financial year.
The audit was completed on 21 September 2009, and 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 Board and the Auditor, and 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 the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and statement of service performance 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 readerfs overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.
The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. 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 Board of Commissioners;
- confirming year-end balances;
- determining whether accounting policies are appropriate and consistently applied; and
- determining whether all financial statement and statement of service performance disclosures are adequate.
We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance. We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.
Responsibilities of the Board of Commissioners and the Auditor
The Board is responsible for preparing the financial statements and statement of service performance in accordance with generally accepted accounting practice in New Zealand. The financial statements must fairly reflect the financial position of the Commission as at 30 June 2009 and the results of its operations and cash flows for the year ended on that date. The statement of service performance must fairly reflect, for each class of outputs, the Commissionfs standards of delivery performance achieved and revenue earned and expenses incurred, as compared with the forecast standards, revenue and expenses adopted at the start of the financial year. The Boardfs responsibilities arise from the Crown Entities Act 2004 and the Earthquake Commission Act 1993.
We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.
Independence
When carrying out the audit we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand.
Other than the audit, we have performed additional assurance work over expenditure incurred in the processing of claims. Other than the audit, and this assignment, we have no relationship with or interests in the Commission.
John O'Connell
Audit New Zealand
On behalf of the Auditor-General
Wellington, New Zealand
Matters Relating to the Electronic Presentation of the Audited Financial Statements and Statement of Service Performance
This audit report relates to the financial statements and statement of service performance of the Earthquake Commission for the year ended 30 June 2008 included on the Earthquake Commission's website. The Earthquake Commission's Board is responsible for the maintenance and integrity of the Earthquake Commission's website. We have not been engaged to report on the integrity of the Earthquake Commission's website. We accept no responsibility for any changes that may have occurred to the financial statements and statement of service performance since they were initially presented on the website.
The audit report refers only to the financial statements and statement of service performance named above. It does not provide an opinion on any other information which may have been hyperlinked to or from the financial statements and statement of service performance. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and statement of service performance and related audit report dated 7 October 2008 to confirm the information included in the audited financial statements and statement of service performance presented on this website.
Legislation in New Zealand governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.