REPORT ON THE FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
Report on the Financial Statements
We have audited the accompanying financial statements of the Public Utilities Commission, which comprise the statements of financial position as of March 31, 2012 and 2011, the statements of activities and changes in general fund, and the statements of cash flows for the years then ended, along with a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements which are free from material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and, making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. Except for the matter discussed in the following section, we conducted our audits in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our modified audit opinion.
Basis for Qualified Opinion
Fixed Assets Existence
Due to the timing of our appointment, we were unable to verify the existence of vehicles recorded in the fixed asset account for $4.67m and $4.6lm as of March 31, 2012 and 2011 respectively; neither were we able to satisfy ourselves using alternative auditing procedures.
Qualified Opinion
In our opinion, except for the effects of adjustments which might be required in relation to the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the Public Utilities Commission as of March 31, 2012 and 2011 and the results of its activities and changes in general fund, and cash flows for the years then ended in accordance with International Financial Reporting Standards.
