|
The Certificate and Report of the Comptroller and Auditor General
to the House of Commons
back
I certify that I have examined transactions on the Exchange Equalisation
Account (“the Account”) for 1998-99 in accordance with the Exchange
Equalisation Account Act 1979.
Respective Responsibilities of the Accounting Officer and the Auditor
As described on
page 3, the Accounting Officer is responsible for the preparation
of the financial statements and for ensuring the regularity of financial
transactions. The Accounting Officer is also responsible for the
preparation of the foreword and the Statement on the System of Internal
Financial Control on page 17.
Under the Exchange
Equalisation Account Act 1979 it is my responsibility to form an independent
opinion, based on my examination, as to whether or not the operations
and transactions have been in accordance with the provisions of the
Act, and to report my opinion to you. By agreement with the Treasury
it is also my responsibility to form an independent opinion, based
on my examination, as to whether the financial statements properly
present the receipts and payments of the Account and the balances
held at the year end, and to report my opinion to you. My responsibilities,
as independent auditor, are established by statute and guided by the
Auditing Practices Board and the auditing profession’s ethical guidance.
I read the other
information contained in the Accounts and consider whether it is consistent
with the audited financial statements. I consider the implications
for the certificate if I become aware of any apparent misstatements
or material inconsistencies with the financial statements.
I review whether
the statement on page 17 reflects compliance with the Treasury’s guidance:
“Corporate Governance: statement on the system of internal financial
control.” I report if it does not meet the requirements specified
by the Treasury, or if the statement is misleading or inconsistent
with other information I am aware of from my audit of the financial
statements.
Basis of Opinion
I conducted my
audit in accordance with Auditing Standards issued by the Auditing
Practices Board. An audit includes an examination, on a test basis,
of evidence relevant to the amounts, disclosures and regularity of
transactions included in the financial statements. It also includes
an assessment of the judgements made by the Accounting Officer in
the preparation of the financial statements.
I planned and
performed my audit so as to obtain all the evidence and explanations
which I considered necessary in order to provide me with sufficient
evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by error or fraud
or other irregularity and that, in all material respects, the payments
and receipts have been applied to the purposes intended by Parliament
and conform to the authorities which govern them. In forming my opinion
I also evaluated the overall adequacy of the presentation of information
in the financial statements.
Opinion
In my opinion:
- the financial
statements set out on pages 18 to 26 properly present the payments
and receipts of the Exchange Equalisation Account for the year ended
31 March 1999 and the balances as at that date, and have been properly
prepared in the form, and applying accounting policies, determined
by the Treasury; and
- in all material
respects the payments and receipts have been applied for the purposes
intended by Parliament and conform to the authorities which govern
them.
I have no observations
to make on these financial statements.
John Bourn
National Audit Office
Comptroller
and Auditor General
157-197 Buckingham Palace Road
Victoria
London SW1W 9SP
28 February
2001
Accounts
Direction given by HM Treasury
1.
The Treasury shall prepare accounts for the Exchange Equalisation
Account (“the Account”) for the financial year ended 31 March 1998
and subsequent financial years comprising:
(a) a foreword, which inter alia, incorporates a statement
of the Accounting Officer’s responsibilities and provides information
on the origins and purpose of the Account, the audit and publication
requirements, administration and control, links to the National Loans
Fund, investment policy, credit risk, an evaluation of the Bank of
England’s management of the Account and a review of activities during
the financial year,
(b) a receipts and payments account,
(c) a statement of assets and liabilities; and
(d) notes which set out the accounting policies for the
Account and provide details of transfers between the Account and the
National Loans Fund; returns on surpluses; unrealised valuation of
gains/losses during the year resulting from movements in sterling
against the associated foreign currencies in which the bulk of the
Account’s assets and liabilities are denominated; uncompleted contracts;
the Exchange Cover Scheme (ECS); administrative costs; Special Drawing
Rights (SDRs) and any other details as may be necessary.
2. The accounts shall properly present the receipts and payments
for he period and the assets and liabilities of the Account as at
the end of the financial year.
3. The foreword, the Account and the assets and liabilities statement
shall be signed by the Accounting Officer and dated.
4. The accounts direction shall be reproduced as an annex to
the Account.
Jamie
Mortimer
24 March 1999
Treasury
Officer of Accounts
|
