10 DECEMBER NEW ZEALAND GAZETTE 4499

PricewaterhouseCoopers

Report of the Audit Office
To the Readers of the Financial Statements of Transpower New Zealand Limited’s Lines Business
For the Year Ended 30 June 1999

We have audited the accompanying financial statements of Transpower New Zealand Limited’s Lines Business. The financial statements provide information about the past financial performance of Transpower New Zealand Limited’s Lines Business and its financial position as at 30 June 1999. This information is stated in accordance with the accounting policies set out in the Statement of Accounting Policies.

Directors’ Responsibilities

The Electricity (Information Disclosure) Regulations 1999 require the Directors to prepare financial statements which give a true and fair view of the financial position of Transpower New Zealand Limited’s Lines Business as at 30 June 1999, and the results of its operations and cash flows for the year then ended.

Auditors’ Responsibilities

It is the responsibility of the Audit Office to express an independent opinion on the financial statements presented by the Directors and report it to you.

The Controller and Auditor-General has appointed F A Hutchings, of PricewaterhouseCoopers, to undertake the audit.

Basis of Opinion

An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It also includes assessing:

• the significant estimates and judgements made by the Directors in the preparation of the financial statements; and
• whether the accounting policies are appropriate to Transpower New Zealand Limited’s Lines Business circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with generally accepted auditing standards, including the Auditing Standards issued by the Institute of Chartered Accountants of New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to obtain reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Our firm carried out other assignments for Transpower New Zealand Limited and Group in the areas of taxation compliance, and other assurance services. Other than these assignments and in our capacity as auditor acting on behalf of the Controller and Auditor-General, we have no relationship with or interests in Transpower New Zealand Limited and Group.

Qualified Opinion – Comparative Figures Omitted

Paragraph 2.18 of the Electricity Information Disclosure Handbook issued by the Ministry of Commerce permits the exclusion of comparative figures where disclosures are made for the first time for the current disclosure year and does not require prior year figures to be recalculated on a basis consistent with the current year. Transpower New Zealand Limited’s Lines Business has applied these exemptions and has not disclosed certain comparative figures or recalculated certain prior year’s figures. To this extent, the financial statements of Transpower New Zealand Limited’s Lines Business do not comply with Financial Reporting Standard No. 2, Presentation of Financial Reports, or the Electricity (Information Disclosure) Regulations 1999.

We have obtained all the information and explanations we have required.

In our opinion, proper accounting records have been kept by Transpower New Zealand Limited’s Lines Business as far as appears from our examination of those records.

In our opinion, except for the omission of comparative figures referred to above, the financial statements of Transpower New Zealand Limited’s Lines Business:

• comply with generally accepted accounting practice;
• give a true and fair view of the financial position of Transpower New Zealand Limited Lines Business as at 30 June 1999 and the results of its operations and cash flows for the year then ended; and
• comply with the Electricity (Information Disclosure) Regulations 1999.

Our audit was completed on 24 November 1999 and our qualified opinion is expressed as at that date.

F A Hutchings
PricewaterhouseCoopers
On behalf of the Controller and Auditor-General
Wellington, New Zealand

PricewaterhouseCoopers
113-119 The Terrace
PO Box 243
Wellington, New Zealand
Telephone +64 4 462 7000
Facsimile +64 4 462 7001