17 AUGUST 2005
NEW ZEALAND GAZETTE, No. 128
3119

Deloitte.

REPORT OF THE AUDITOR-GENERAL
TO THE READERS OF THE FINANCIAL STATEMENTS OF OTAGONET JOINT VENTURE LINES
BUSINESS FOR THE YEAR ENDED 31 MARCH 2005

We have audited the financial statements of OtagoNet Joint Venture Lines Business (“OtagoNet Joint Venture”) on pages 2 to 15. The financial statements provide information about the past financial performance of OtagoNet Joint Venture and its financial position as at 31 March 2005. This information is stated in accordance with the Statement of Accounting Policies set out on pages 6 and 7.

Management Committee’s Responsibilities
The Commerce Commission’s Electricity Information Disclosure Requirements 2004 made under section 57T of the Commerce Act 1986 require the Management Committee to prepare financial statements which give a true and fair view of the financial position of OtagoNet Joint Venture as at 31 March 2005 and the results of its operations and cash flows for the year ended on that date.

Auditor’s Responsibilities
Section 15 of the Public Audit Act 2001 and Requirement 30 of the Electricity (Information Disclosure) Requirements 2004 require the Auditor-General to audit the financial statements. It is the responsibility of the Auditor-General to express an independent opinion on the financial statements and report that opinion to you.

The Auditor-General has appointed G R Mitchell of Deloitte 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 Management Committee in the preparation of the financial statements; and
• whether the accounting policies are appropriate to OtagoNet Joint Venture’s circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with the Auditing Standards published by the Auditor-General, which incorporate 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.

Other than in our capacity as auditor acting on behalf of the Auditor-General, we have no relationship with or interests in OtagoNet Joint Venture.

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

In our opinion:

• proper accounting records have been maintained by OtagoNet Joint Venture as far as appears from our examination of those records; and
• the financial statements of OtagoNet Joint Venture on pages 2 to 15;
  a) comply with generally accepted accounting practice; and
  b) give a true and fair view of OtagoNet Joint Venture’s financial position as at 31 March 2005 and the results of its operations and cash flows for the year ended on that date; and
  c) comply with the Electricity Information Disclosure Requirements 2004.

Our audit was completed on 3 August 2005 and our unqualified opinion is expressed as at that date.

G. R. Mitchell
Deloitte
On behalf of the Auditor-General
Wellington, New Zealand