In today's SMH CBD column:
Scott Rochfort
January 30, 2012
BACK IN FOLD
There might be some awkward discussions when the MFS-founded, and now Jenny Hutson-managed, Premium Income Fund cobbles together its half-year accounts in the coming weeks.
More than three months after Hutson's Wellington Capital crowed about its newly appointed auditor, Johnston Rorke, having a client base that included ''publicly listed and large private companies'', it was been forced back into the embrace of its old auditor, who was unwilling to sign off the valuation of the fund's assets.
Wellington announced last week that the Australian Securities and Investments Commission had declined to accept the resignation of PricewaterhouseCoopers.
PwC itself declined to vouch for the $233 million gross asset valuation of the fund that was signed off by Hutson in last financial year's accounts.
A valuation, that is, on which her 0.7 per cent management fee is based. The bulk of the valuation comprised of mortgages that had been lent out by the fund to various property developers.
''At the date of issue of this report, we were unable to obtain access to the external advisers and their supporting work papers and, as a result, were unable to evaluate the appropriateness of the advisers' work and obtain sufficient appropriate audit evidence in relation to the recoverable amount of the mortgage loans,'' PwC said in the accounts.
Read more: http://www.smh.com.au/business/comfort-for-shires-assetrich-battlers-20120129-1qnu9.html#ixzz1kt5nKPQ5
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