Territory Stories

February 2008 report to the Legislative Assembly

Details:

Title

February 2008 report to the Legislative Assembly

Collection

Report to the Legislative Assembly; Reports; PublicationNT

Date

2008

Description

Made available via the Publications (Legal Deposit) Act 2004 (NT).

Notes

Date:2008-02

Language

English

Subject

Northern Territory. Auditor-General's Office -- Periodicals; Finance, Public -- Northern Territory -- Accounting -- Periodicals; Northern Territory -- Appropriations and expenditures -- Periodicals

Publisher name

Northern Territory Auditor-General's Office

Place of publication

Darwin

ISSN

1323-7128

Copyright owner

Check within Publication or with content Publisher.

Parent handle

https://hdl.handle.net/10070/223559

Citation address

https://hdl.handle.net/10070/686148

Page content

108 Auditor-General for the Northern Territory February 2008 Report Jabiru Town Development Authority Audit findings and Analysis of the financial statements for the year ended 30 June 2007 Background The Jabiru Town Development Authority (the Authority) has overall responsibility under the Jabiru Town Development Act for maintenance and development of the town of Jabiru, the issue of sub-leases of land and for administration, management and control of the town. A Headlease Agreement between the Authority and the Commonwealth over the town is due to expire in 2021. The NT Government provided loan funds of $8.4 million for over-designed services, mainly water supply and sewerage facilities which were constructed to facilitate expansion of the town to its final estimated population. During the period January 1984 to June 1986 this debt increased to $8.8 million due to the capitalisation of net unpaid interest. In August of 1986 the Government granted the Authority a moratorium on future interest and loan repayments on existing loans. That moratorium continued to apply at 30 June 2007. A 1985 Cost Sharing Agreement set out the principles for the allocation between participating parties of expenditure required for the town development. The participating parties were principally Energy Resources Australia Limited (ERA), the NT Government, the Commonwealth Government and the Authority. Audit Opinion The audit of the Jabiru Town Development Authority for the year ended 30 June 2007 resulted in an unqualified independent audit opinion, which was issued on 9 January 2008. Key issues The audit opinion report while not qualified included the following emphasis of matter: Without qualification to the opinion expressed above, attention is drawn to the following matter. Under the heading of Basis of Accounting and Going Concern in Note 1(a), the Authority refers to its expectation of the continuation of the moratorium on the Authoritys future interest and repayment of loans due to the Northern Territory Government totalling $8,804,916. Without this moratorium, there would be significant uncertainty whether the Authority would be able to continue as a going concern and therefore whether it would realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.