AUDITOR-GENERAL’S REPORT FINANCIAL AUDITS Volume Four 2008_part5 doc

Country Energy Abridged Balance Sheet At 30 June 2008 $’000 2007 $’000 Current assets Non-current assets TOTAL ASSETS 814,618 3,827,819 4,642,437 1,149,429 3,432,877 4,582,306 Current liabilities Non-current liabilities TOTAL LIABILITIES 1,244,431 2,448,106 3,692,537 1,095,110 2,275,604 3,370,714 949,900 1,211,592 NET ASSETS The significant decrease in current assets was mainly due to a decrease of $388 million in the value of derivative financial instruments The increase in non-current assets included $584 million from the acquisition of property, plant and equipment and intangible assets during the year Liabilities rose primarily due to an additional $412 million of debt, increasing the balance of loans outstanding to $2.6 billion ($2.2 billion) The increase was partially offset by a decrease of $125 million in deferred tax liabilities CORPORATION ACTIVITIES See the ‘Electricity Industry Overview’ section appearing earlier in this report for general industry comment Country Energy is a statutory State owned corporation constituted by the Energy Services Corporation Act 1995 Its principal function is to distribute electricity to the national electricity market For more information on Country Energy, refer to www.countryenergy.com.au CONTROLLED ENTITIES The following controlled entities have not been reported on separately as they are not considered material by their size or the nature of their operations to the consolidated entity Entity Name Country Energy Gas Pty Limited NorthPower Energy Services Pty Limited This is trial version www.adultpdf.com Auditor-General’s Report to Parliament 2008 Volume Four 59 EnergyAustralia AUDIT OPINION The audits of EnergyAustralia and its controlled entities’ financial reports for the year ended 30 June 2008 resulted in unqualified Independent Auditor’s Reports Unless otherwise stated, the following commentary relates to the consolidated entity KEY ISSUES Development Site EnergyAustralia may be required to sell its development site to private operators as part of the Government’s revised electricity reform package introduced to secure the future supply of electricity of New South Wales EnergyAustralia has one development site It is in the process of obtaining a development application to construct a 350 megawatt open cycle gas turbine power station in Marulan The plant will provide capacity to meet peak demand Critical Information Technology Systems Over the past year, EnergyAustralia’s Critical IT Exposures Remediation Program has reduced the risk of back up failure on a number of business critical systems In 2006-07, EnergyAustralia first formally identified the risk of being unable to recover business critical systems and implemented a program to reduce that risk PERFORMANCE INFORMATION EnergyAustralia provided the following information regarding its performance Operational Performance A prime objective of EnergyAustralia is to deliver a safe and reliable supply of energy to its customers The following table shows its performance in relation to customer satisfaction, employee safety and customer gains and losses This is trial version www.adultpdf.com 60 _Auditor-General’s Report to Parliament 2008 Volume Four EnergyAustralia Year ended 30 June Actual Target* 2005 Customer satisfaction index (%) (a) Minutes customers were without supply Lost time injury frequency – (hours per million hours worked) Customers at year end (000’s) 2006 2007 2008 2008 55 52 51 52 >60 90 90 102 100 86-104 3.8 1,539 3.8 1,557 2.9 1,568 3.9 1,581