Water Entities: Interim Results of the 2009–10 Audits
Overview
This report informs Parliament about internal control issues arising from our interim financial audit of the 19 water entities and one controlled entity, and recommends improvement in their internal controls.
Entity internal controls are adequate for financial reporting purposes. Nevertheless, opportunities to strengthen internal controls were identified in relation to information system controls, the maintenance of fixed asset registers, compliance with procurement policies and procedures, and the timely preparation and review of key account reconciliations.
Controls over the management of creditors and capital projects were generally adequate; nevertheless, controls should be further strengthened.
Performance reporting continues to be of limited utility as the four metropolitan entities are not required to prepare a performance report for audit, while the 13 regional urban and two rural entities, who prepare performance reports, have no obligation to set a target for each performance indicator.