REPORT ON THE FINANCIAL STATEMENTS
Report on the Financial Statements
We have audited the accompanying financial statements of Public Utilities Commission, which comprise the statements of financial position as of March 31, 2011 and 2010, the statement of activities and changes in general fund, and the statement of cash flows for the year and 15 months, respectively. then ended, along with a summary of significant accounting policies and other explanatory notes.
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 and Other
We are unable to confirm the existence of fixed assets at March 31, 2011 owing to the time of our appointment, and could not satisfy ourselves using alternative procedures. Additionally, and as more fully described in Note 11 to the financial statements, the Commissioners approved a change of the fiscal reporting period that resulted in a 15-month initial report. As a consequence, comparability of these financial statements is affected.
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, 2011 and 2010 and the results of its activities and changes in general fund, and cash flows for the year and 15 months, respectively, then ended in accordance with International Financial Reporting Standards.
