Mr Martin Smith Chairman Buroba Pty Limited Level 19, 83 Clarence St SYDNEY NSW 2000 Dear Mr Smith STATUTORY AUDIT REPORT FOR THE YEAR ENDED 30 JUNE 2003 BUROBA PTY LIMITED GPO BOX 12 SYDNEY NSW 2001 9285 0106 z1083/ad 10 October 2003 I have audited the accounts of Buroba Pty Limited as required by the Public Finance and Audit Act 1983 (the Act). This Statutory Audit Report outlines the results of my audit for the year ended 30 June 2003, and details any significant matters that in my opinion call for special notice. The Act requires that I send this report to the Minister and to the Treasurer. This report is not the Independent Audit Report, which expresses my opinion on the company's annual financial report. The Independent Audit Report, together with the company's annual financial report, are attached. Audit Result I expressed an unqualified opinion on the company's annual financial report and I have not identified any significant matters since I wrote to you on 29 October 2002. My audit is continuous and I may therefore identify new significant matters before the Auditor-General next reports to Parliament on the agency's audit. If this occurs, I will write to you immediately. Auditor-General's Report to Parliament Comment on the company's activities will appear in the Auditor-General's Report to Parliament. I will send you a draft of this comment for review before the Report is tabled during December 2003. Scope of the Audit As advised in the Engagement Letter, my audit procedures are targeted specifically towards forming an opinion on the company 's financial report. This includes testing whether your agency has complied with key legislation that may materially impact on the financial report. The results of the audit are reported in this context. Acknowledgment 1 thank the company's staff for their courtesy and assistance. _. I 1--l--/ II .!j[J!/L Phil Thomas Assistant Auditor-General cc The Hon J Della Bosca MLC, Special Minister for State The Hon M R Egan MLC, Treasurer
Transcript
Mr Martin Smith Chairman Buroba Pty Limited Level 19, 83 Clarence St SYDNEY NSW 2000
Dear Mr Smith
STATUTORY AUDIT REPORT
FOR THE YEAR ENDED 30 JUNE 2003 BUROBA PTY LIMITED
GPO BOX 12 SYDNEY NSW 2001
9285 0106 z1083/ad
1 0 October 2003
I have audited the accounts of Buroba Pty Limited as required by the Public Finance and Audit Act 1983 (the Act). This Statutory Audit Report outlines the results of my audit for the year ended 30 June 2003, and details any significant matters that in my opinion call for special notice. The Act requires that I send this report to the Minister and to the Treasurer.
This report is not the Independent Audit Report, which expresses my opinion on the company's annual financial report. The Independent Audit Report, together with the company's annual financial report, are attached.
Audit Result
I expressed an unqualified opinion on the company's annual financial report and I have not identified any significant matters since I wrote to you on 29 October 2002. My audit is continuous and I may therefore identify new significant matters before the Auditor-General next reports to Parliament on the agency's audit. If this occurs, I will write to you immediately.
Auditor-General's Report to Parliament
Comment on the company's activities will appear in the Auditor-General's Report to Parliament. I will send you a draft of this comment for review before the Report is tabled during December 2003.
Scope of the Audit
As advised in the Engagement Letter, my audit procedures are targeted specifically towards forming an opinion on the company 's financial report. This includes testing whether your agency has complied with key legislation that may materially impact on the financial report. The results of the audit are reported in this context.
Acknowledgment
1 thank the company's staff for their courtesy and assistance.
Yoursence~el)j _.
I 1--l--/ II .!j[J!/L
Phil Thomas Assistant Auditor-General
cc The Hon J Della Bosca MLC, Special Minister for State The Hon M R Egan MLC, Treasurer
BUROBA PTY LTD
A.C.N. 065 388 150
FINANCIAL STATEMENTS- 30 JUNE 2003
Contents:
Auditor's Report to the Members Directors' Statement Statement of Financial Performance Statement of Financial Position Statement of Cash Flows Notes to and forming part of the Financial Statements
Page No.
1-2 3 4 5 6
7-10
INDEPENDENT AUDIT REPORT
BUROBA PTY LTD
To Members of the New South Wales Parliament
Audit Opinion
In my opinion, the financial report of Buroba Pty Ltd:
GPO BOX 12 SYDNEY NSW 2001
(a) presents fairly the company's financial position as at 30 June 2003 and its financial performance and cash flows for the year ended on that date, in accordance with applicable Accounting Standards and other mandatory professional reporting requirements in Australia, and
(b) complies with section 418 of the Public Finance and Audit Act 1983 (the Act)
The opinion should be read in conjunction with the rest of this report.
The Director's Role
The financial report is the responsibility of the director's of the company. It consists of the statement of financial position, the statement of financial performance, the statement of cash flows and the accompanying notes.
The Auditor's Role and the Audit Scope
As required by the Act, I carried out an independent audit to enable me to express an opinion on the financial report. My audit provides reasonable assurance to Members of the New South Wales Parliament that the financial report is free of material misstatement.
My audit accorded with Australian Auditing and Assurance Standards and statutory requirements, and 1:
• evaluated the accounting policies and significant accounting estimates used by the director's in preparing the financial report, and
• examined a sample of the evidence that supports the amounts and other disclosures in the financial report.
An audit does not guarantee that every amount and disclosure in the financial report is error free. The terms 'reasonable assurance' and 'material' recognise that an audit does not examine all evidence and transactions. However, the audit procedures used should identify errors or omissions significant enough to adversely affect decisions made by users of the financial report or indicate that director's had failed in their reporting obligations.
My opinion does not provide assurance:
.. about the future viability of the company,
., that it has carried out its activities effectively, efficiently and economically, or
., about the effectiveness of its internal controls.
Audftlndependence
The Audit Office complies with all applicable independence requirements of Australian professional ethical pronouncements. The Act further promotes independence by:
• providing that only Parliament, and not the executive government, can remove an Auditor-General, and
• mandating the Auditor-General as auditor of public sector agencies but precluding the provision of non-audit services, thus ensuring the Auditor-General and the Audit Office are not compromised in their role by the possibility of losing clients or income.
ffi;!jl) /[, ~~
Phil Thomas Assistant Auditor-General
SYDNEY 1 0 October 2003
3
BUROBA PTY LTD
A.C.N. 065 388 150
PUBLIC FINANCE AND AUDIT ACT 1983
1 JULY 2002 TO 30 JUNE 2003
Pursuant to the Public Finance and Audit Act, 1983 the Directors of the Company declare on behalf of the Company that in our opinion:
1. The accompanying financial statements exhibit a true and fair view of the financial position of Buroba Pty Ltd as at 30 June 2003.
2. The statements have been prepared in accordance with the provisions of the Public Finance and Audit Act, 1983 the Public Finance and Audit Regulation 2000 and the Treasurer's Directions.
Further, we are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.
(.i iL Signed at Sydney this 'U day of October, 2003 in accordance with a resolution of the Directors.
Profit from Ordinary Activities after Related Income Tax Expense
Net Profit
Note 2003 $
2002 $
5
BUROBA PTY LTD
A.C.N. 065 388 150
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2003
Note 2003 2002 $ $
CURRENT ASSETS Cash 2 2 TOTAL CURRENT ASSETS 2 2
TOTAL ASSETS 2 2
TOTAL LIABILITIES
NET ASSETS 2 2
EQUITY
Contributed Equity 2 2
TOTAL EQUITY 2 2
6
BUROBA PTY LIMITED
A.C.N. 065 388 150
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2003
CASH FLOWS FROM OPERATING ACTIVITIES
NET CASH USED IN OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
NET CASH USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
NET CASH USED IN FINANCING ACTIVITIES
TOTAL CASH FLOWS FROM ACTIVITES
CASH BALANCE AT THE BEGINNING OF THE FINANCIAL YEAR
CASH BALANCE AT THE END OF THE FINANCIAL YEAR
Note A
2003 Inflow/
(Outflow) $
2
2
2002 Inflow/
(Outflow) $
2
2
For the purposes of the Statement of Cash Flows, Cash includes all cash on hand and at Bank. Cash at the end of the reporting period as shown in the statement of Cash Flows is reconciled to the related items in the Balance Sheet as follows:
CASH
2003 $
2 2
2002 $
2 2
7
BUROBA PTY L TO
A.C.N. 065 388 150
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2003
1. Principal Activity
The company has been dormant during the twelve months ended 30 June 2003.
2. Basis of Accounting
The Company's financial statements are a general purpose financial report, which has been prepared on an accrual basis and in accordance with:
• applicable Australian Accounting Standards • other authoritative pronouncements of the Australian Accounting Standards
Board (AASB) • Urgent Issues Group (UIG) Consensus Views, and • the requirements of the Public Finance and Audit Act and Regulations.
Where there are inconsistencies between the above requirements, the legislative provisions have prevailed.
In the absence of a specific Accounting Standard, other authoritative pronouncement of the AASB or UIG Consensus View, the hierarchy of other pronouncements as outlined in AAS 6 "Accounting Policies" is considered.
The financial statements are prepared in accordance with the historical cost convention. All amounts are rounded to the nearest dollar and are expressed in Australian currency. The accounting policies adopted are consistent with those of the previous year.
Revenue Recognition
Revenue is recognised when the entity has control of the good or right to receive, it is probable that the economic benefits will flow to the entity and the amount of revenue can be measured reliably.
Employee Entitlements
The Company has no employees.
8
BUROBA PTY LTD
A.C.N. 065 388 150
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2003
Notes to the Financial Statements (continued)
Insurance
The Company has no insurance activities.
Accounting for the Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except: • the amount of GST incurred as a purchaser that is not recoverable from the
Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense.
• Receivables and payables are stated with the amount of GST included.
Acquisition of Assets
The Company has not acquired any assets.
Plant and Equipment
The Company has no plant and equipment.
Depreciation of Non-Current Physical Assets
The Company has no non-current physical assets.
Maintenance and Repairs
No maintenance and repairs were undertaken during the financial year.
Receivables
Receivables are recognised and carried at the original invoice amount less a provision for any uncollected debts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred.
Payabies
These amounts represent liabilities for goods and services provided to the company and other amounts, including interest. Interest is accrued over the period it becomes due.
Budgeted d;lmounts
The Company has no budget.
9
BUROBA PTY L TO
A.C.N. 065 388 150
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2003
Notes to the Financial Statements (continued}
3. Auditor's Remuneration
Total amount receivable by the auditors of the company for:
(a) Audit of the Company's Accounts (b) Other services
Audit Fees of the Company are paid by the Parent Entity of the Company- STC. The Auditor of the Company is The Auditor General of NSW.
4. Contributed Equity
30 June 2003
$
2,772
2,772
30 June 2003
$
30 June 2002
$
2,640
2,640
30 June 2002
$ Authorised Capital 10,000,000 shares at $1.00 per share 10,000,000 10,000,000
Issued- Paid up Capital 2 shares at $1.00
5. Contingent Liabilities
2
The Company has no contingent liabilities as at the date of this report.
6. Commitments for Expenditure
The Company has no commitment for expenditure as at the date of this report.
1. !Financial Reporting by Segmelr'H'ii:s
The Company operates in one geographical area being NSW, Australia.
2
10
BUROBA PTY lTD
A.C.N. 065 388 150
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2003
Notes to the Financial Statements (continued)
8. Directors' Emoluments
Total due and payable by the Company during the year
9. Related Party Information
30 June 2003
$
Nil
30 June 2002
$
Nil
(a) From 15 July 1997 the Parent Entity is SAS Trustee Corporation (STC).
(b) Directors of the Company are:
Martin J. Smith appointed 15 July 1997 David C. Shields appointed 15 July 1997
10. Material Assistance Provided at no cost to the Company
e Lodgement fees • Audit fees
30 June 2003
$
1,060 2,772
3,832
30 June 2002
$
200 2,640
2,840
It is not possible to quantify the value of specific assistance provided by staff of Deutsche Asset Management (Australia) Limited in relation to administrative, accounting and legal support.
End of Audited Financial Statements.
9 October 2003
Auditor-General The Audit Office of New South Wales GPO Box 12 SYDNEY NSW 2001
Deutsche Asset Marnagement Deutsche Bank Group
Deutsche Asset Management
(Australia) Limited
ABN 11 076 098 596
Licensed Dealer in Securities
Level 21 83 Clarence Street
Sydney NSW 2000
PO Box N127
Grosvenor Place NSW 1220
Telephone 61 2 9249 9000
Facsimile 61 2 9249 9290
MANAGEMENT REPRESENTATION LETTER
Buroba Pty limited
ACN 065 388 150
In connection with your audit of the financial report for the year ended 30 June 2003, we confirm to the best of our knowledge and belief, and having made appropriate inquiries of other key employees of Deutsche Asset Management (Aust) Ltd the following representations.
GENERAL
1. We acknowledge our responsibility for keeping proper accounts and records, and preparing the financial report.
2. We believe that, in all material respects, the financial report is presented fairly in accordance with the requirements of:
(a) the Public Finance and Audit Act 1983
(b) applicable Accounting Standards and other mandatory professional reporting requirements; and
3. We believe that, in all material respects, the financial report presents a view which is consistent with our understanding of Buroba Pty Ltd (the Company) financial position as at 30 June 2003, financial performance and its cash flows for the year then ended.
4. There have been no deficiencies in financial reporting practices and we have disclosed in the financial report any changes to accounting policies.
ACCOUNTING RECORDS AND TRANSACTIONS
5. We have made available to you all accounting records and have properly recorded all transactions in the accounting records. This includes:
(a) all legal issues and legal opinions which have the capacity to be relevant to the fairness of the financial repo11
(b) minutes of all meetings (eg Board meetings, l.\udit Committee or other management meetings); and
Page 2 Deutsche Asset Management Deutsche Bank Group
(c) all off-balance sheet agreements or instruments.
COMPLIANCE WITH LEGISLATION AND OTHER REQUIREMENTS
6. We are not aware of any breaches or possible breaches of relevant legislation, contracts or agreements.
7. We have notified you of:
(a) any misappropriated cheques where a loss of public moneys seems likely (TD 218.9)
(b) any losses, defalcations or deficiencies that are of serious proportions or have serious implications (TD 455.01)
(c) the existence of all controlled entities within one month of their creation (Section 638 of the Public Finance and Audit Act 1983)
(d) any transactions or arrangements capable of being regarded as 'private sector funded infrastructure', outsourcings of significant areas of activity or any other matters dealt with in Part 2 8 of the Public Authorities (Financial Arrangements) Act 1987
INTERNAL CONTROLS
8. We acknowledge our responsibility for implementing and operating accounting and internal control systems that are designed to prevent and detect fraud and error.
9. Adequate systems of internal control exist to ensure that:
(a) we record all material transactions in the accounting records underlying the financial report
(b) we minimise the risk of fraud and error occurring and are able to detect them should they occur; and
(c) we minimise the risk of significant breaches of legislation and other mandatory requirements occurring and detect significant breaches of legislation and other mandatory requirements should they occur.
1 0. No fraud or misappropriation, or suspected fraud or misappropriation have occurred known to management or employees of the Company or Deutsche Asset Management (Aust) Ltd.
11. We have disclosed to you the results of our assessment of the risk that the financial report may be materially misstated as a result of fraud.
INTERNAl AUDIT
12. We operate an effective internal audit function and management promptly rectify any shortcomings reported.
Page 3
FINANCIAL REPORT
Non-Current Assets
Deutsche Asset Management Deutsche Bank Group
13. The Company controls all assets recognised in the statement of financial position. There are no liens or encumbrances on assets nor has any asset been pledged.
14. We depreciate assets over their useful lives and we have adjusted depreciation charges for all important items of property, plant and equipment that have been abandoned or are otherwise unusable.
15. Depreciation rates have been reviewed having regard to such factors as asset usage and the rate of technical and commercial obsolescence. Any adjustment to reflect the most recent assessment of the useful lives of all non-current assets has been recognised and disclosed in the financial report.
16. We have assessed the current recoverable amount and notional replacement cost of all noncurrent assets and we have written down the book values of non-current assets where they exceeded recoverable amount and/or notional replacement cost.
Doubtful/Bad Debts
17. The allowance for doubtful debts is sufficient to provide for any losses on realisation of receivables and we have written off all known bad debts.
Inventories
1 8. The Company has no obsolete or excess inventories.
Other Current Assets
19. We expect to realise all other current assets at least at the amounts at which they are stated in the financial report.
Liabilities
20. We have recognised all liabilities in the financial report.
Provisions, Contingent Assets and Liabilities
21. We have recognised or disclosed in the financial report:
(a) arrangements involving restrictions on cash balances, compensating balances and line-ofcredit or similar arrangements
(b) agreements to repurchase assets previously sold; and
(c) material or contingent liabilities or assets.
Commitments
22. We have disclosed in the financial report all material commitments.
Page 4
Statement of Financial Performance
Deutsche Asset Management Deutsche Bank Group
23. Except as disclosed in the financial report, the results for the year were not materially affected by:
(a) extraordinary items
(b) errors, including fundamental errors; or
(c) changes in accounting policy.
Director Related Disclosure
24. We have made full disclosure in the financial report of information concerning directors and director related transactions in accordance with applicable legislative requirements.
25. We have made available to you details and records relating to:
(a) any agreements or transactions between employee controlled entities and the company
(b) any equity interests or directorships held by employees in other entities, which are party to, directly or indirectly, any agreements or transactions with this organisation and/or any controlled entity or related party of this organisation; and
(c) any external accounting advice received on these agreements, transactions or interests.
Accounting for Investments in Associates
26. We have made available to you details and records relating to the existence and ownership of equity interests held in associates.
Environmental Issues
27. We have considered whether environmental matters could have a material impact on the financial report and conclude that:
(a) we are not aware of any material liabilities or contingencies arising from environmental matters, including those resulting from illegal or possibly illegal acts
(b) we are not aware of environmental matters that may result in a material impairment of assets.
Accounting Misstatements Detected by Audit
28. We acknowledge that no uncorrected misstatements have been brought to our attention.
29. We have considered the impact of uncorrected misstatements on the financial report. We conclude uncorrected misstatements are quantitatively and qualitatively immaterial when considered individually or in aggregate.
30. We have also considered the impact of uncorrected misstatements from previous periods and conclude that the aggregate amount of uncorrected misstatements from previous and current periods is immaterial.
Page 5
GENERAL
Native Title Land Claims
Deutsche Asset Management 0 Deutsche Bank Group
31. We are not aware of any native title land claims:
(a) that may have a material impact on the financial report; or
(b) if aware of native title land claims that may have a material impact on the financial report, we have disclosed all facts relating to those claims to you.
Insurance
32. We have established procedures to assess the adequacy of insurance cover on all assets and insurable risks, and where appropriate, assets and insurable risks are adequately covered by insurance.
Going Concern
33. In our opinion, the going concern basis is appropriate for the financial report.
Events Occurring After Reporting Date
34. From the financial reporting date of the financial report to the date of this letter, we are not aware of any events that have occurred which are of such importance that we need to disclose or recognise them in the financial report.
....... ~/~£'( .................................... . Director ur.oba Pty Ltd
······ ~,/}Joi Seer~~~~ ~4':-~ty Ltd
BUROBA PTY LIMITED A.C.N. 065 388 150
MINUTES OF MEETING OF DIRECTORS OF THE COMPANY HELD on 9 October 2003, at LEVEL 21, 83 CLARENCE ST SYDNEY AT
Present:
Presentation of Accounts:
Directors' Report
Statement by Directors:
Statement by Directors under the Public Finance and Audit Act:
Mr M. J. Smith (Chairman) Mr D.C. Shields Mr G. W. Little (Secretary)
The Directors reviewed the accounts as at 30 June 2003 presented to them and made enquiries in relation to a number of matters therein. The Secretary advised the Directors that in the course of preparation of the Accounts and subsequent review by the auditors he had been advised that all matters had been satisfactorily resolved and that an unqualified Audit Opinion would be provided.
Directors noted that the Company had remained dormant during the period covered by the financial report.
It was noted that as the Company was dormant no Directors' Report was required per S304(2) of the Corporations Law.
It was RESOLVED that in the opinion of the Directors:
a) the Statement of Financial Performance for the year ended 30 June 2003 is drawn up so as to give a true and fair view of the profit of the Company for the year; and
b) the Statement of Financial Position is drawn up so as to give a true and fair view of the state of affairs of the Company as at 30 June 2003; and
c) there are reasonable grounds to believe that the Company will be able to pay debts as and when they fall due.
It was noted that the Accounts had been made out in accordance with Approved Accounting Standards.
It was RESOLVED that a statement to this effect be signed by two Directors and attached to the Accounts submitted to the Annual General Meeting of shareholders.
It was RESOLVED that Directors sign the Statement under the Public Finance and Audit Act declaring that:
a) the Financial Statements exhibit a true and fair view of the financial position of the Company as at 30 June 2003 and for transactions for the period 1 July 2002 to 30 June 2003.
b) The Statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983,
Management Representation Letter:
Annual General Meeting:
Closure:
2
the Public Finance and Audit (Statutory Bodies) Regulations, 1995 and the Treasurer's Directions.
The Directors reviewed the Representation letter to the Auditor General and made enquiries of the Company Secretary and each other in relation to the representations contained therein. Each confirmed that to the best of his knowledge and belief that representations were able to be made.
Directors RESOLVED that the Management Representation letter prepared to be submitted to the Auditor General be signed as required.
It was RESOLVED that the Annual General Meeting of shareholders be held in due course and that the Secretary be authorised to issue Notices of Meeting to those shareholders entitled to receive them.
There being no further business the meeting was declared closed at
