I have audited the Group and Agency financial statements of the National Asset Management Agency for the year ended 31 December 2013 under the National Asset Management Agency Act 2009. The financial statements, which have been prepared under the accounting policies set out therein, comprise the consolidated income statement, the consolidated statement of comprehensive income, the Agency income statement, the consolidated and Agency statements of financial position, the consolidated and Agency statements of changes in equity, the consolidated and Agency statements of cash flows and the related notes. The financial reporting framework that has been applied in their preparation is the International Financial Reporting Standards (IFRSs) as adopted by the European Union and the provisions of the National Asset Management Agency Act 2009.
The Board is responsible for the preparation of the financial statements, for ensuring that they give a true and fair view of the state of the Group's and Agency's affairs and of the Group's income and expenditure, and for ensuring the regularity of transactions.
My responsibility is to audit the financial statements and report on them in accordance with applicable law.
My audit is conducted by reference to the special considerations which attach to State bodies in relation to their management and operation.
My audit is carried out in accordance with the International Standards on Auditing (UK and Ireland) and in compliance with the Auditing Practices Board's Ethical Standards for Auditors.
An audit involves obtaining evidence about the amounts and disclosures in the financial statements, sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of
I also seek to obtain evidence about the regularity of financial transactions in the course of audit.
In addition, I read the Agency's annual report to identify if there are any material inconsistencies with the audited financial statements. If I become aware of any apparent material misstatements or inconsistencies, I consider the implications for my report.
In my opinion, the financial statements, which have been properly prepared in accordance with the IFRSs as adopted by the European Union and with the provisions of the National Asset Management Agency Act 2009, give a true and fair view of the state of the Group's and the Agency's affairs at 31 December 2013 and of the Group's profit for the year then ended.
In my opinion, proper books of account have been kept by the Agency. The financial statements are in agreement with the books of account.
Without qualifying my opinion, I draw attention to the following matters.
Note 2.1 to the financial statements describes the position in regard to the main funding source for the Agency and sets out the basis upon which the Board is satisfied that it is appropriate to prepare the financial statements on a going concern basis.
Note 3.1 to the financial statements outlines the basis for the incremental impairment charge of €914 million for 2013, bringing the total cumulative impairment to €4,125 million. The charge for the year includes the results of an enhanced process for the assessment of the collective impairment provision. Further enhancement of the impairment assessment process is in progress.
I report by exception if
I have nothing to report in regard to those matters upon which reporting is by exception.
Comptroller and Auditor General
9 May 2014