I certify that I have audited the financial statements of The Crown
Estate for the year ended 31 March 2006 under The Crown Estate Act
1961. These comprise the Revenue account, the Balance sheet, the
Cash flow statement and statement of total recognised gains and
losses and the related notes. These financial statements have been
prepared under the accounting policies set out within them.
The Commissioners and Accounting Officer are responsible for preparing the Annual Report, the Remuneration Report and the financial statements in accordance with the The Crown Estate Act 1961 and Treasury directions made thereunder and for ensuring the regularity of financial transactions. These responsibilities are set out in the Statement of the Commissioners and Accounting Officer’s responsibilities.
My responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements, and with International Standards on Auditing (UK and Ireland).
I report to you my opinion as to whether the financial statements give a true and fair view and whether the financial statements and the part of the Remuneration Report to be audited have been properly prepared in accordance with The Crown Estate Act 1961 and Treasury directions made thereunder. I also report whether in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. I also report to you if, in my opinion, the Annual Report is not consistent with the financial statements, if The Crown Estate has not kept proper accounting records, if I have not received all the information and explanations I require for my audit, or if information specified by relevant authorities regarding remuneration and other transactions is not disclosed.
I review whether the statement on pages 46 to 48 reflects The Crown Estate’s compliance with HM Treasury’s guidance on the Statement on Internal Control, and I report if it does not. I am not required to consider whether the Accounting Officer’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness of The Crown Estate’s corporate governance procedures or its risk and control procedures.
I read the other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. This other information comprises only the Annual Report, the unaudited part of the Remuneration Report and the Foreword. I consider the implications for my report if I become aware of any apparent misstatements or material inconsistencies with the financial statements. My responsibilities do not extend to any other information.
I conducted my audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. My audit includes examination, on a test basis, of evidence relevant to the amounts, disclosures and regularity of financial transactions included in the financial statements and the part of the Remuneration Report to be audited. It also includes an assessment of the significant estimates and judgements made by the Commissioners and Accounting Officer in the preparation of the financial statements, and of whether the accounting policies are most appropriate to The Crown Estate’s circumstances, consistently applied and adequately disclosed.
I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements and the part of the Remuneration Report to be audited are free from material misstatement, whether caused by fraud or error and that in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions 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 and the part of the Remuneration Report to be audited.
In my opinion:
The maintenance and integrity of The Crown Estate's website is the responsibility of the Accounting Officer; the work carried out by the auditors does not involve consideration of these matters and accordingly the auditors accept no responsibility for any changes that may have occured to the financial statements since they were initially presented on the website.
John Bourn
Comptroller and Auditor General
National Audit Office
157-197 Buckingham Palace Road
Victoria
London SW1W 9SP
21 June 2006
Respective responsibilities of The Crown Estate Commissioners, the Accounting Officer and Auditor
The Commissioners and Accounting Officer are responsible for preparing the Annual Report, the Remuneration Report and the financial statements in accordance with the The Crown Estate Act 1961 and Treasury directions made thereunder and for ensuring the regularity of financial transactions. These responsibilities are set out in the Statement of the Commissioners and Accounting Officer’s responsibilities.
My responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements, and with International Standards on Auditing (UK and Ireland).
I report to you my opinion as to whether the financial statements give a true and fair view and whether the financial statements and the part of the Remuneration Report to be audited have been properly prepared in accordance with The Crown Estate Act 1961 and Treasury directions made thereunder. I also report whether in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. I also report to you if, in my opinion, the Annual Report is not consistent with the financial statements, if The Crown Estate has not kept proper accounting records, if I have not received all the information and explanations I require for my audit, or if information specified by relevant authorities regarding remuneration and other transactions is not disclosed.
I review whether the statement on pages 46 to 48 reflects The Crown Estate’s compliance with HM Treasury’s guidance on the Statement on Internal Control, and I report if it does not. I am not required to consider whether the Accounting Officer’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness of The Crown Estate’s corporate governance procedures or its risk and control procedures.
I read the other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. This other information comprises only the Annual Report, the unaudited part of the Remuneration Report and the Foreword. I consider the implications for my report if I become aware of any apparent misstatements or material inconsistencies with the financial statements. My responsibilities do not extend to any other information.
Basis of audit opinions
I conducted my audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. My audit includes examination, on a test basis, of evidence relevant to the amounts, disclosures and regularity of financial transactions included in the financial statements and the part of the Remuneration Report to be audited. It also includes an assessment of the significant estimates and judgements made by the Commissioners and Accounting Officer in the preparation of the financial statements, and of whether the accounting policies are most appropriate to The Crown Estate’s circumstances, consistently applied and adequately disclosed.
I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements and the part of the Remuneration Report to be audited are free from material misstatement, whether caused by fraud or error and that in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions 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 and the part of the Remuneration Report to be audited.
Opinions
In my opinion:
- the financial statements give a true and fair view, in accordance with The Crown Estate Act 1961 and directions made thereunder by Treasury, of the state of The Crown Estate’s affairs as at 31 March 2006 and of its surplus for the year then ended;
- the financial statements and the part of the Remuneration Report to be audited have been properly prepared in accordance with The Crown Estate Act 1961 and Treasury directions made thereunder; and
- in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.
The maintenance and integrity of The Crown Estate's website is the responsibility of the Accounting Officer; the work carried out by the auditors does not involve consideration of these matters and accordingly the auditors accept no responsibility for any changes that may have occured to the financial statements since they were initially presented on the website.
John Bourn
Comptroller and Auditor General
National Audit Office
157-197 Buckingham Palace Road
Victoria
London SW1W 9SP
21 June 2006