Independent Auditor’s Report
Independent auditor's report to the Auditor General for Scotland and the Scottish Parliament
I have audited the financial statements of the Scottish Consolidated Fund for the year ended 31 March 2016 under the Public Finance and Accountability (Scotland) Act 2000. The financial statements comprise the Receipts and Payments Account and the related notes. The financial reporting framework that has been applied in their preparation is the receipts and payments basis.
This report is made solely to the parties to whom it is addressed in accordance with the Public Finance and Accountability (Scotland) Act 2000 and for no other purpose. In accordance with paragraph 125 of the Code of Audit Practice approved by the Auditor General for Scotland, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.
Respective responsibilities of Principal Accountable Officer and auditor
As explained more fully in the Statement of the Principal Accountable Officer's Responsibility, the Principal Accountable Officer is responsible for the preparation of the financial statements and for being satisfied that they properly present the receipts and payments for the financial year, and is also responsible for ensuring the regularity of the receipts and payments. My responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing ( UK and Ireland) as required by the Code of Audit Practice approved by the Auditor General for Scotland. Those standards require me to comply with the Auditing Practices Board's Ethical Standards for Auditors. I am also responsible for giving an opinion on the regularity of payments in accordance with the Public Finance and Accountability (Scotland) Act 2000.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the account's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Principal Accountable Officer; and the overall presentation of the financial statements. It also involves obtaining evidence about the regularity of receipts and payments. In addition, I read all the financial and non-financial information in the document containing the accounts to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by me in the course of performing the audit. If I become aware of any apparent material misstatements, irregularities, or inconsistencies I consider the implications for my report.
Opinion on financial statements
In my opinion the financial statements:
- properly present in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers the receipts and payments of the account for the year ended 31 March 2016 and the balances held at that date; and
- have been properly prepared in accordance with the requirements of the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers.
Opinion on regularity
In my opinion in all material respects the sums paid out of the Scottish Consolidated Fund for the purpose of meeting the expenditure shown in the financial statements were applied in accordance with section 65 of the Scotland Act 1998 and sections 4 to 6 of the Public Finance and Accountability (Scotland) Act 2000.
Opinion on other prescribed matters
In my opinion the information given in the Foreword for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which I am required to report by exception
I am required to report to you if, in my opinion:
- adequate accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- I have not received all the information and explanations I require for my audit; or
- the Governance Statement does not comply with guidance from the Scottish Ministers.
I have nothing to report in respect of these matters.
102 West Port
23 September 2016