STATEMENT OF RESPONSIBILITY

In terms of the New Zealand Security Intelligence Service Act 1969 section 4J (1), I am responsible as Director of Security of the New Zealand Security Intelligence Service, for delivering to the Minister a report on the activities of the Service during the year ended 30 June 2007, as if it were an annual report under the Public Finance Act 1989.

I am responsible for the financial statements and the judgements made in the process of producing those statements.

I have the responsibility of establishing and maintaining, and I have established and maintained, a system of internal control procedures that provides reasonable assurance as to the integrity and reliability of financial reporting.

In my opinion, these financial statements fairly reflect the financial position and operations of the Service for the year ended 30 June 2007.

STATEMENT OF EXPENDITURE AND APPROPRIATION

In accordance with the Public Finance Act 1989 Section 45E, I report as follows:

	$000
Total Appropriation	43,499
Actual Expenditure	41,239

The financial statements are audited by the Audit Office and their report is attached.

Countersigned by:
[SIGNED]
Dr W H Tucker Director of Security
18 September 2007

 

 

 

 

AUDIT REPORT

TO THE READERS OF NEW ZEALAND SECURITY INTELLIGENCE SERVICE’S STATEMENT OF EXPENDITURE AND APPROPRIATION FOR THE YEAR ENDED 30 JUNE 2007

The Auditor-General is the auditor of the New Zealand Security Intelligence Service (the Service). The Auditor General has appointed me, Stephen Lucy, using the staff and resources of Audit New Zealand, to carry out the audit of the statement of expenditure and appropriation (the statement) of the Service, on his behalf for the year ended 30 June 2007.

Unqualified opinion

In our opinion the statement of the Service on page 20 fairly reflects the actual expenses and capital expenditure against the Service’s appropriation for the year ended 30 June 2007.

The audit was completed on 18 September 2007, and is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Chief Executive and the Auditor, and explain our independence.

Basis of opinion

We carried out the audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards.

We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the statement did not have material misstatements, whether caused by fraud or error.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the statement. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

The audit involved performing procedures to test the information presented in the statement. We assessed the results of those procedures in forming our opinion.

Audit procedures generally include:

• determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data;
• verifying samples of transactions and account balances;
• performing analyses to identify anomalies in the reported data;
• reviewing significant estimates and judgements made by the Chief Executive;
• confirming year-end balances;
• determining whether accounting policies are appropriate and consistently applied; and
• determining whether all disclosures are adequate.

We did not examine every transaction, nor do we guarantee complete accuracy of the statement.

We obtained all the information and explanations we required to support our opinion above.

Responsibilities of the Chief Executive and the Auditor

The Chief Executive is responsible for preparing a statement that provides a record of the total of actual expenses and capital expenditure incurred for the financial year against the Service’s appropriation for that financial year. The Chief Executive’s responsibilities arise from section 45E of the Public Finance Act 1989.

We are responsible for expressing an independent opinion on the statement and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and section 45D(2) of the Public Finance Act 1989.

Independence

When carrying out the audit we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand. In addition to the audit we have carried out an independent review over costings for implementing a telecommunications solution relating to the Telecommunications (Interception Capability) Act 2004, which was compatible with those independence requirements.

Other than the audit and this assignment, we have no relationship with or interests in the Service.

 

[SIGNED]

 

S B Lucy
Audit New Zealand
On behalf of the Auditor-General
Wellington, New Zealand

 

 

Matters relating to the electronic presentation of the audited statement of expenditure and appropriation This audit report relates to the statement of expenditure and appropriation of the New Zealand Security Intelligence Service (the Service) for the year ended 30 June 2007 included on the Service’s website. The Service’s Chief Executive is responsible for the maintenance and security of the Service’s website. We have not been engaged to report on the integrity of the Service’s website. We accept no responsibility for any change that may have occurred to the statement since it was initially presented on the website. The audit report refers only to the statement named above. It does not provide an opinion on any other information which may have been hyperlinked to/from this statement. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited statement and related audit report dated 18 September 2007 to confirm the information included in the audited statement presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.