AN independent auditor’s report and management report for the financial year ending June 30, 2015, has found the City of Rockingham holds net assets of nearly $1.5 billion.
The audit was carried out by accounting and consulting firm Grant Thornton and found that the value of the City’s property, plant and equipment and infrastructure was $1.424 billion, an increase of $816.5 million on the prior financial year.
Key indicators for the 2014-15 financial year included total rates revenue of $64.73 million, total operating revenue of $130.5 million, closing surplus of $28.2 million and outstanding borrowings of $18.7 million.
“Audit procedures were undertaken with the aim to assess the appropriateness of the useful lives of infrastructure and capital assets, the accuracy of depreciation charges and assess assets for possible impairment,” the audit findings report said.
“We performed substantive testing on property, plant and equipment and infrastructure asset additions.
“These transactions were assessed to ensure asset capitalisation in line with the City’s policies and procedures and tested for accuracy to supporting documentation.”
The report found the City had incorrectly calculated depreciation on land by $2 million and that infrastructure had been overstated by $3 million, and provided recommendations for how the City could correct those errors in future.
As part of the audit, Grant Thornton also addressed the risk of fraud and found no instances.