Second Report of the Auditor-General for the year ended 30 June ...

5.1.13 It was considered by the Corporation that the private auditors
appointed by the sharetolders urxJer the provisions of the Gas arxJ Fuel
Corporation Act 1958 stould contiruie with their appointed role.
Consequently, the Corporation sought the endorsement of the Treasurer
to their proposed action that toth the Auditor-General and the private
auditors would continue to report on the Corporation's financial
statements. The Corporation has sought a legal opinion on the matter.
5.1.14 The Treasurer indicated to the Corporation that, based on advice
available to him, he had ro objection to the Corporation preparing its
annual report and financial statements on the basis that toth the
Auditor-General and the private auditors report thereon. With respect
to the 1983-84 financial statanents, I have reported separately on
ttose statements in accordance with the Annual Reporting Act 1983
whereas the private auditors have reported in accordance with the Gas
and Fuel Corporation Act 1958. In previous years, a joint audit report
was signed by the private auditors and myself urxJer the Gas arxl Fuel
Corporation Act 1958.
Creditors - Accounts Payable System
6.1.15 In ny previous December 1982 and 1983 reports, references were made to
the lack of satisfactory reconciliation of the trade creditors account
in the general ledger with the individual creditors telances in the
creditors ledger. This reconciliation weakness continued during 1983-
84.
5.1.16 The variation in the records was mainly due to a lack of interface
between the stores and creditors ledgers which necessitated
indeperxjent postings of transactions into each system arxl resulted in
untimely arxJ inconsistent irput to the 2 ledger systems.
5.1.17 An interface designed by the Corporation as the result of an internal
task force recommerxlation was put into cperation in late 1983-84 so as
to simultaneously process input into the 2 systems. Since its
implementation, the reconciliations for the months of June, July and
August 1984 prepared by the Corporation have disclosed a consistent
variation of $130 917 tetween the 2 ledgers.
5.1.18 Audit recommended that the Corporation write off the variation tetween
the 2 ledgers once management are satisfied that the variation is
unreconcilable and that the interface tetween the stores and creditors
ledgers is operating effectively.
Conclusion
5.1.19 Apart from the above matters and other matters of a minor nature
brought to the attention of the Corporation, the results of the audit
examination proved satisfactory.
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