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To Members of the New South Wales Parliament

Audit Opinion

In my opinion, the financial report of Landcom (the Corporation):

• presents fairly the Corporation’s financial position as at 30 June 2006 and its performance for the year ended on that date, in accordance with Accounting Standards and other mandatory financial reporting requirements in Australia, and
• compiles with section 41B of the Public Finance and Audit Act 1983 (the Act), and the Public Finance and Audit Regulation 2005.

My opinion should be read in conjunction with the rest of this report.

Scope

The Financial Report and Directors’ Responsibility

The financial report comprises the balance sheet, income statement, statement of changes in equity, cash flow statement and accompanying notes to the financial statements for the Corporation for the year ended 30 June 2006.

The directors of the Corporation are responsible for the preparation and true and fair presentation of the financial report in accordance with the Act. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for accounting policies and accounting estimates inherent in the financial report.

Audit Approach

I conducted an independent audit in order to express an opinion on the financial report. My audit provides reasonable assurance to members of the New South Wales Parliament that the financial report is free of material misstatement.

My audit accorded with Australian Auditing Standards and statutory requirements, and I:

• assessed the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the directors in preparing the financial report, and
• examined a sample of evidence that supports the amounts and disclosures in the financial report.

An audit does not guarantee that every amount and disclosure in the financial report is error free. The terms ‘reasonable assurance’ and ‘material’ recognise that an audit does not examine all evidence and transactions.  However, the audit procedures used should identify errors or omissions significant enough to adversely affect decisions made by users of the financial report or indicate that the directors had not fulfilled their reporting obligations.

My opinion does not provide assurance: 

• about the future viability of the Corporation,
• that it has carried out its activities effectively, efficiently and economically, or
• about the effectiveness of its internal controls.

Audit Independence

The Audit Office complies with all applicable independence requirements of Australian professional ethical pronouncements. The Act further promotes independence by:

• providing that only the Parliament, and not the executive government, can remove an Auditor-General, and
• mandating the Auditor-General as auditor of public sector agencies but precluding the provision of non-audit services, thus ensuring the Audit-General and the Audit Office are not compromised in their role by the possibility of losing clients or income.

P J Boulous CA
Director, Financial Audit Services

SYDNEY
27 September 2006

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