Appendices

Independent auditor’s report


To the readers of Wellington City Council and Group’s annual report for the year ended 30 June 2013

The Auditor General is the auditor of Wellington City Council (the City Council) and Group. The Auditor General has appointed me, Andy Burns, using the staff and resources of Audit New Zealand to audit:

In addition, the Auditor General has appointed me to report on whether the City Council and Group’s annual report complies with the Other Requirements of schedule 10 of the Local Government Act 2002, where applicable, by including:

information about:

Opinion

Audited information

In our opinion:

the financial statements of the City Council and group on pages 75 to 188:

the statements of service performance of the City Council on pages 14 to 74:

the funding impact statements in relation to each group of activities of the City Council on pages 82 to 100, fairly reflects by each group of activities, the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s Long-term Plan.

the statements about budgeted and actual capital expenditure in relation to each group of activities of the City Council on pages 82 to 100, fairly reflects by each group of activities the capital expenditure spent as compared to the amounts budgeted and set out in the City Council’s Long-term Plan or Annual Plan.

the funding impact statement of the City Council on page 82, fairly reflects the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s Annual Plan.

Compliance with the other requirements of schedule 10

In our opinion, which is not an audit opinion, the City Council and Group’s Annual Report complies with the Other Requirements of schedule 10 that are applicable to the Annual Report.

Our audit was completed on 28 August 2013. 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 Council and our responsibilities, and we explain our independence.

Basis of opinionTop

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 information we audited is free from material misstatement.

Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers’ overall understanding of the financial statements and statements of service performance. 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 information we audited. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the information we audited, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the City Council and Group’s preparation of the information we audited that fairly reflect the matters to which they relate. We consider internal control in order to design procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the City Council and Group’s internal control.

An audit also involves evaluating:

We did not examine every transaction, nor do we guarantee complete accuracy of the information we audited.

When reporting on whether the Annual Report complies with the Other Requirements of schedule 10 of the Local Government Act 2002, our procedures were limited to making sure the information required by schedule 10 was included in the Annual Report, where relevant, and identifying material inconsistencies, if any, with the information we audited. This work was carried out in accordance with International Standard on Auditing (New Zealand) 720; The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements. As a result we do not express an audit opinion on the City Council and Group’s compliance with the requirements of schedule 10.

We did not evaluate the security and controls over the electronic publication of the information we are required to audit and report on. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate evidence to provide a basis for our opinion.

Responsibilities of the CouncilTop

The Council is responsible for preparing:

financial statements and statements of service performance that:

the other information in accordance with the requirements of schedule 10 of the Local Government Act 2002.

The Council is responsible for such internal control as it determines is necessary to ensure that the Annual Report is free from material misstatement, whether due to fraud or error. The Council is also responsible for the publication of the Annual Report, whether in printed or electronic form.

The Council’s responsibilities arise under the Local Government Act 2002.

Responsibilities of the AuditorTop

We are responsible for expressing an independent opinion on, the information we are required to audit, and whether the Council has complied with the Other Requirements of schedule 10, and reporting that opinion to you. Our responsibility arises under section 15 of the Public Audit Act 2001 and section 99 of the Local Government Act 2002.

IndependenceTop

When carrying out this audit, which includes our report on the Other Requirements, we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the External Reporting Board. During the year we undertook a review of the Clifton Terrace car park managed by the City Council on behalf of the New Zealand Transport Agency. Other than this audit, which includes our report on the Other Requirements, and the review of the Clifton Terrace car park, we have no relationship with or interests in the City Council or any of its subsidiaries.


Andy Burns signature.

A P Burns
Audit New Zealand
On behalf of the Auditor General
​Wellington, New Zealand