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General PHIAC Circulars
Proforma Opinion
[TO BE PREPARED ON AUDIT FIRM LETTERHEAD]
Independent Audit Report to the Private Health Insurance
Administration Council (PHIAC) Pursuant to PHIAC
Circular No XXX
Scope
Schedules 1 to 6, 8, 9 (sections 1 to 8 and 10 to 11 only), 10 and 11
We have audited Schedules 1 to 6, 8, Sections 1 to 8 and 10 to 11 of Schedule 9, and Schedules 10 and 11 (which have been stamped by us for identification) of the PHIAC 2 Annual Return ("the Return"), which is used by PHIAC for the purpose of providing an Annual Report to Parliament for the financial year ended 30 June [enter year end]. The directors of company/fund [update as applicable] are responsible for the preparation of the Return and the information contained therein. As required by PHIAC Circular No. XXX dated XXXX we have conducted an independent audit of the Return, in order to express an opinion to PHIAC on whether the report is prepared in accordance with the Statement of Requirements for Reporting to PHIAC (as set out in PHIAC Circular No XXX dated XXX).
The Return has been prepared to fulfil the requirements of Circular No. XXX. We disclaim any assumption of responsibility for any reliance on this report or on the Return to which our report relates, to any person other than PHIAC or for any purpose other than that for which it was prepared..
Our audit has been conducted in accordance with Australian Auditing Standards. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the Return and the evaluation of significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the Return has been prepared in accordance with the Statement of Requirements for reporting to PHIAC, as required by Circular No. XXX.
The audit opinion expressed in this report has been formed on the above basis.
Schedules 7 and 9 (section 9 only)
In relation to Schedule 7 and Section 9 of Schedule 9, we have performed procedures agreed with PHIAC and described below. These procedures were undertaken in accordance with Australian Auditing Standards applicable to agreed-upon procedures engagements. The responsibility for determining the adequacy or otherwise of the procedures agreed to be performed is that of PHIAC.
The procedures were performed solely to assist PHIAC in determining the appropriateness of the information disclosed in Schedule 7 and Section 9 of Schedule 9 and are summarised as follows:
Schedule 7
| 1) | We obtained an understanding of the source of management's projected cash flows and ensured that sign-off from an appropriately senior body or individual was obtained |
| 2) | We agreed all amounts to source documentation |
| 3) | We agreed that the discount rate used is either the 1 year Commonwealth Treasury Rate less 1%; or a rate advised by PHIAC |
| 4) | We recalculated the total cash outflows after inflation by the Capital Adequacy Margin |
| 5) | We recalculated the Renewal Option Reserve as the Net Cash Inflows less Outflows discounted to present value |
Section 9 of Schedule 9
| 6) | We obtained an understanding of the processes undertaken by management to determine an appropriate business funding reserve and ensured that sign-off from an appropriately senior body or individual was obtained |
Because the above procedures do not constitute either an audit in accordance with Australian Auditing Standards or a review in accordance with Australian Auditing Standards applicable to review engagements, we do not express any assurance or opinion on the appropriateness of the information disclosed in Schedule 7 and Section 9 of Schedule 9.
Audit Opinion on schedules 1 to 6, 8, 9 (sections 1 to 8 and 10 to 11 only), 10 and 11
In our opinion,
| a) | Schedules 1 to 6, 8, Sections 1 to 8 and 10 to 11 of Schedule 9, and Schedules 10 and 11 of the PHIAC 2 Annual Return of [enter name of RHBO] for the financial year ended 30 June XXXX [enter year end] have been prepared in accordance with the Statement of Requirements for Reporting to PHIAC, and |
| b) | [enter name of RHBO] has complied with sections 73AAC and 73AAD of the National Health Act (1953), as amended. |
Findings on schedules 7 and 9 (section 9 only)
For the procedures performed in relation to Schedule 7 and Section 9 of Schedule 9, we report as follows:
| 1) | [provide a description of the findings, including sufficient details of errors and exceptions found] |
| 2) | [provide a description of the findings, including sufficient details of errors and exceptions found] |
| 3) | [provide a description of the findings, including sufficient details of errors and exceptions found] |
| 4) | [provide a description of the findings, including sufficient details of errors and exceptions found] |
| 5) | [provide a description of the findings, including sufficient details of errors and exceptions found] |
| 6) | [provide a description of the findings, including sufficient details of errors and exceptions found] |
[Name of Audit Firm]
Chartered Accountants
| by [Name of Partner] | [Location] |
| Partner | [Date] |