2011-2012 Annual Report - Full Version - PDF - Palmerston North ...

Financial Statements Auditor's Reportour judgement, including our assessment of risks ofmaterial misstatement of the financial statements,non-financial performance information andother information whether due to fraud or error.In making those risk assessments, we considerinternal control relevant to the preparation ofthe City Council and group’s financial statements,non-financial performance information and otherinformation that fairly reflect the matters to whichthey relate. We consider internal control in orderto design audit procedures that are appropriatein the circumstances but not for the purpose ofexpressing an opinion on the effectiveness of theCity Council and group’s internal control.An audit also involves evaluating:• the appropriateness of accounting policiesused and whether they have been consistentlyapplied;• the reasonableness of the significantaccounting estimates and judgements madeby the Council;• the adequacy of all disclosures in the financialstatements, non-financial performanceinformation and other information;• determining the appropriateness of thereported non-financial performanceinformation within the Council’s framework forreporting performance; and• the overall presentation of the financialstatements, non-financial performanceinformation and other information.We did not examine every transaction, nor dowe guarantee complete accuracy of the financialstatements, non-financial performance informationand other information. We have obtained all theinformation and explanations we have requiredand we believe we have obtained sufficient andappropriate audit evidence to provide a basis forour audit opinion.Responsibilities of the CouncilThe Council is responsible for preparing:• financial statements and non-financialperformance information that:• comply with generally acceptedaccounting practice in New Zealand;• fairly reflect the City Council andgroup’s financial position, financialperformance and cash flows;• fairly reflect its service performance,including achievements compared toforecast; and• other information in accordance with Schedule10 of the Local Government Act 2002 that fairlyreflects the required information.The Council is responsible for such internalcontrol as it determines is necessary to enable thepreparation of financial statements, non-financialperformance information and other informationthat are free from material misstatement, whetherdue to fraud or error.The Council’s responsibilities arise from the LocalGovernment Act 2002.Responsibilities of the AuditorWe are responsible for expressing an independentopinion on the financial statements, non-financialperformance information and other informationand reporting that opinion to you based on ouraudit. Our responsibility arises from section 15 ofthe Public Audit Act 2001 and section 99 of theLocal Government Act 2002.IndependenceWhen carrying out the audit, we followed theindependence requirements of the Auditor-General, which incorporate the independencerequirements of the New Zealand Institute ofChartered Accountants.Other than the audit and carrying out the auditof long term plan, we have no relationship withor interests in the City Council or any of itssubsidiaries.Bede KearneyAudit New ZealandOn behalf of the Auditor-GeneralPalmerston North, New ZealandMatters relating to the electronic presentation ofthe audited financial statements, non-financialperformance information and the other requirementsThis audit report relates to the financial statements, non-financialperformance information and the other requirements of PalmerstonNorth City Council and group for the year ended 30 June 2012 includedon Palmerston North City Council’s website. The Council is responsiblefor the maintenance and integrity of Palmerston North City Council’swebsite. We have not been engaged to report on the integrity ofPalmerston North City Council’s website. We accept no responsibilityfor any changes that may have occurred to the financial statements,non-financial performance information and the other requirementssince they were initially presented on the website.The audit report refers only to the financial statements, non-financialperformance information and the other requirements named above. Itdoes not provide an opinion on any other information which may havebeen hyperlinked to or from the financial statements, non-financialperformance information and the other requirements. If readers of thisreport are concerned with the inherent risks arising from electronicdata communication they should refer to the published hard copyof the audited financial statements, non-financial performanceinformation and the other requirements as well as the related auditreport dated 26 September 2012 to confirm the information includedin the audited financial statements, non-financial performanceinformation and the other requirements presented on this website.Legislation in New Zealand governing the preparation anddissemination of financial information may differ from legislation inother jurisdictions.132Palmerston North City Council Annual Report 2011/12