to the Minister for Finance

I have audited the financial statements of the Strategic Banking Corporation of Ireland (SBCI) for the period ended 31 December 2015 under the Strategic Banking Corporation of Ireland Act 2014. The financial statements comprise the income statement and other comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and the related notes. The financial reporting framework that has been applied in their preparation is the International Financial Reporting Standards (IFRS) as adopted by the European Union and those parts of the Companies Act 2014 applicable to companies reporting under IFRS.

Responsibilities of the directors

The directors are responsible for the preparation of the financial statements, for ensuring that they give a true and fair view and otherwise comply with the Companies Act 2014 and for ensuring the regularity of transactions.

Responsibilities of the Comptroller and Auditor General

My responsibility is to audit the financial statements and to 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.

Scope of audit of the financial statements

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

• whether the accounting policies are appropriate to the SBCI’s circumstances, and have been consistently applied and adequately disclosed
• the reasonableness of significant accounting estimates made by the directors in the preparation of the financial statements, and
• the overall presentation of the financial statements.

I also seek to obtain evidence about the regularity of financial transactions in the course of audit.

In addition, I read the SBCI’s annual report to identify if there are any material inconsistencies with the audited financial statements or to identify if there is any information that is apparently materially incorrect or inconsistent based on the knowledge acquired by me in the course of performing the audit. If I become aware of any apparent material misstatements or inconsistencies, I consider the implications for my report.

Opinion on the financial statements

In my opinion, the financial statements

• give a true and fair view of the assets, liabilities and financial position of the SBCI as at 31 December 2015 and of its loss for the period then ended; and
• have been properly prepared in accordance with IFRS as adopted by the European Union; and
• have been properly prepared in accordance with the requirements of the Companies Act 2014.

Matters on which I am required to report by the Companies Act 2014

I have obtained all the information and explanations that I consider necessary for the purposes of my audit. In my opinion, the accounting records of the SBCI were sufficient to permit the financial statements to be readily and properly audited. The financial statements are in agreement with the accounting records.

In my opinion, the information given in the directors’ report is consistent with the financial statements.

Matters on which I report by exception

I report by exception if I find

• any material instance where public money has not been applied for the purposes intended or where the transactions did not conform to the authorities governing them, or
• the information given in the SBCI’s annual report is not consistent with the related financial statements or with the knowledge acquired by me in the course of performing the audit, or
• the statement on internal financial control does not reflect the SBCI’s compliance with the Code of Practice for the Governance of State Bodies, or
• the disclosures of directors’ remuneration and transactions as specified by the Companies Act 2014 are not made, or
• there are other material matters relating to the manner in which public business has been conducted.

I have nothing to report in regard to those matters upon which reporting is by exception.

27 May 2016