ANNUAL REPORT 2021-22
34
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ANNUAL REPORT 2021-22
ANNUAL REPORT 2021-22
35
Key Audit Matter
Recoverability of deferred tax assets
Auditor-General
The deferred tax assets of $19.060 million,
as disclosed at Note 11 to the financial
statements, represents a significant
balance in the Corporation's financial
statements. Recognition of the deferred tax
assets is influenced by management's
assessment of the ability of the Corporation
to realise the asset.
Unbilled Revenue Estimate at year end
Unbilled generation revenue of
$19.922 million, as disclosed in Note 7 to
the financial statements, represents an
estimate of the value of electricity
generated and sent out however not billed
as at 30 June 2022. Management's
estimate is based upon information
provided by the market operator.
Other Information
Page 3 of 5
Audit scope response to the Key Audit Matter
My procedures included but were not limited to:
confirming the accounting treatment applied by the
Corporation was consistent with the accounting and
taxation advice received and provided by the
Corporation and previously subject to audit
assessment; and
re-performing the testing on the recoverability of the
deferred tax assets and ascertaining that the
Corporation's recognition of deferred tax assets
attributable to impairment losses is reasonable.
My procedures included but were not limited to:
recalculating the unbilled revenue based on the
preliminary settlement statements obtained from the
market operator,
• reviewing the final settlement obtained from the
market operator against the preliminary settlement at
year end
reviewing the reconciliation between the information
provided by the market operator and the Supervisory
Control and Data Acquisition (SCADA) system
readings; and
performing a trend analysis of the unbilled revenue.
The Directors are responsible for the other information. The other information obtained at the date of
this auditor's report is information included in the Corporation's Annual Report for the year ended
30 June 2022, but does not include the financial report and my auditor's report thereon.
My opinion on the financial report does not cover the other information and accordingly I do not express
any form of assurance conclusion thereon.
In connection with my audit of the financial report, my responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
my knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work I have performed on the other information obtained prior to the date of this auditor's
report, I conclude that there is a material misstatement of this other information, I am required to report
that fact. I have nothing to report in this regard.
Auditor-General
Page 4 of 5
Responsibilities of the Directors for the Financial Report
The Directors of the Corporation are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Government Owned
Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable
the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Corporation's ability to
continue as a going concem, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to liquidate the Corporation or to
cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
My objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, I exercise professional
judgement and maintain professional scepticism throughout the audit. I also:
* identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for the auditor's opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
* obtain an understanding of internal control relevant to the audit 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 internal controls as they apply to the Corporation.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors.
* conclude on the appropriateness of the Directors' use of the going concem basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Corporation's ability to continue as a going concern.
If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report
to the related disclosures in the financial report or, if such disclosures are inadequate, to modify the
opinion. My conclusions are based on the audit evidence obtained up to the date of the auditor's
report however, future events or conditions may cause the Corporation to cease to continue as a
going concern.
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