Appendix 3: Public entities not audited by the Auditor-General

Annual Report for the year ended 30 June 2009.

Under section 5 of the Public Audit Act 2001, the Auditor-General is the auditor of every public entity, which includes any entity controlled by one or more public entities.

Section 5 uses both legal and financial reporting definitions of control. Section 5(2) says that an entity is controlled by one or more other entities if:

  1. the entity is a subsidiary of any of those other entities; or
  2. the other entity or entities together control the entity within the meaning of any relevant approved financial reporting standard; or
  3. the other entity or entities can together control directly or indirectly the composition of the board of the entity within the meaning of sections 7 and 8 of the Companies Act (which, for the purposes of this paragraph, are to be read with all necessary modifications).

Applying paragraph (b) requires us to consider the substance of the relationship between two entities to determine whether one controls another (within the meaning of any relevant approved financial reporting standard).

In a number of instances, entities have disagreed with our conclusion that they are public entities because they are controlled by one or more public entities. The following entities are not currently audited by the Auditor-General because they do not accept that they are public entities.

Te Wharekura O Rakaumangamanga Foundation Charitable Trust Board

Te Wharekura O Rakaumangamanga (a state school) set up Te Wharekura O Rakaumangamanga Foundation Charitable Trust Board (the Foundation). The purpose of the Foundation is mainly to promote education for the benefit of the school and its community.

South Auckland Health Foundation

Counties Manukau Health Limited (which became Counties Manukau District Health Board) was involved in setting up the South Auckland Health Foundation (the Foundation). The purpose of the Foundation is mainly to support the provision of healthcare in the Counties Manukau area.

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