Part 4: Financial Statements – HTML version
Report by the Auditor-General
INDEPENDENT AUDIT REPORT
To the Minister for Family & Community Services
Matters relating to the Electronic Presentation of the Audited Financial Statements
This audit report relates to the financial statements published in both the annual report and on the website of the Department of Family & Community Services for the year ended 30 June 2004. The Department’s Secretary is responsible for the integrity of both the annual report and its website.
The audit report refers only to the financial statement which may have been hyperlinked to/from the audited financial statement.
If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial statements in the Department’s annual report.
Scope
The financial statements comprise:
- Statement by the Secretary and Chief Financial Officer;
- Statements of Financial Performance, Financial Position and Cash Flows;
- Schedules of Commitments and Contingencies;
- Schedule of Administered Items; and
- Notes to and forming part of the Financial Statements
of the Department of Family & Community Services for the year ended June 30 2004.
The Department's Setretary is responsible for the preparation and true and fair representation of the financial statements in accordance with the Finance Minister's Orders. This includes responsiblity for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial statements.
Audit approach
I have conducted an independent audit of the financial statements in order to express an opinion of them to you. My audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing and Assurance Standards, in order to provide a reasonable assurance as to whether the financial statements are free of material misstatements. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, and the inherent limitations of internal control, and the availability of persuasive, rather than conclusive, evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.
While the effectiveness of the management's internal controls over financial reporting was considered when determining the nature and extent of audit procedures, the audit was not designed to provide assurance on internal controls.
Procedures were performed to assess, whether, in all material respects, the financial statements present fairly, in accordance with the Finance Minister's Orders made under the Financial Management and Accountability Act 1997, Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with my understanding of the Department's financial position, and of its performance as represented by the statements of financial performance and cash flows.
The audit opinion is formed on the basis of these procedures, which included:
- examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial statements; and
- assessing the appropriateness of the accounting policies and disclosures used, and reasonableness of significant accounting estimates made by the Secretary.
Independence
In conducting the audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate Australian professional ethical pronouncements.
Audit Opinion
In my opinion, the financial statements:
- have been prepared in accordance with the Finance Minister's Orders made under the Financial Management and Accountability Act 1997 and applicable Accounting Standards, and;
- give a true and fair view, of the matters required by applicable Accounting Standards and other mandatory professional reporting requirements in Australia, and the Finance Minister's Orders, of the Department of Family and Community Services as at June 30 2004, and of its performance and cash flows for the year then ended.
Canberra
10 September 2004