© Copyright Commonwealth of Australia - Australian Public Service Commission

Independent Auditor Report

To the Prime Minister

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 Australian Public Service Commission for the year ended 30 June 2006. The Australian Public Service Commission's Chief Executive is responsible for the integrity of both the annual report and its web site.

The audit report refers only to the financial statements, schedules and notes named below. It does not provide an opinion on any other information which may have been hyperlinked to/from the audited financial statements.

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 Australian Public Service Commission's annual report.

Scope

The financial statements and Secretary's responsibility

The financial statements comprise:

• Statement by the Chief Executive and Chief Finance Officer;
• income Statement, Balance Sheet and Cash Flow Statement;
• Statement of Changes in Equity;
• Schedules of Commitments and Contingencies; and
• Notes to and forming part of the Financial Statements

of the Australian Public Service Commission for the year ended 30 June 2006.

The Chief Executive is responsible for preparing financial statements that give a true and fair presentation of the financial position and performance of the Australian Public Service Commission, and that comply 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. The Chief Executive is also responsible 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 on 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 reasonable assurance as to whether the financial statements are free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, 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 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.

I have performed procedures 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 Australian Public Service Commission's financial position, and of its 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 the reasonableness of significant accounting estimates made by the Chief Executive.

Independence

In conducting the audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the ethical requirements of the Australian accounting profession.

Audit Opinion

In my opinion, the financial statements of the Australian Public Service Commission:

1. have been prepared in accordance with the Finance Minister's Orders made under the Financial Management and Accountability Act 1997; and
2. give a true and fair view of the Australian Public Service Commission's financial position as at 30 June 2006 and of its performance and cash flows for the year then ended, in accordance with:
   1. the matters required by the Finance Minister's Orders; and
   2. applicable Accounting Standards and other mandatory financial reporting requirements in Australia.

Australian National Audit Office

Allan M. Thompson
Executive Director

Delegate of the Auditor-General

Canberra
24 August 2006