Public Finance Management Act [Chapter 22:19] as amended as at 28 October 2016 82 Auditor’s report on public entities (1) In this section, “group accounts” means, in the case of a public entity that is a holding company, the balance sheets and profit and loss accounts of the holding company and all its subsidiaries. (2) An auditor shall make a report on the accounts of every public entity examined by him or her including every balance sheet, and statement of comprehensive income and all group accounts, where appropriate, of a public entity presented to him or her for audit, and the report shall contain statements as to the following matters— (a) whether in his or her opinion, the balance sheet and statement of comprehensive income or group accounts of the public entity are properly drawn up to give a true and fair view of the state of the public entity’s affairs at the date of its balance sheet and of its profit or loss for its financial year ended on that date; (b) in the case of a public entity registered as a banking institution in terms of the Banking Act [Chapter 24:24], whether in his or her opinion, the balance sheet and statement of comprehensive income or group accounts of that public entity are properly drawn up so as to disclose its state of affairs at the date of its balance sheet and its profit or loss for its financial year ended on that date; (3) An auditor shall include in his or her report statements which, in his or her opinion, are necessary if— (a) he or she has not obtained all the information and explanations which to the best of his or her knowledge and belief were necessary for the purposes of the audit; (b) so far as appears from his or her examination, proper books of account have not been kept by the public entity; (c) proper returns adequate for the purpose of his or her audit have not been received from branches not visited by him or her; (d) the public entity’s balance sheet and statement of comprehensive income are not in agreement with the books and returns from the branches of a public entity. (3a) Where recommendations have been made by an auditor in terms of this Act, the public entity concerned (except upon good cause shown to the Treasury for deferring implementation of any recommendation or not implementing any recommendation) shall ensure that all recommendations are complied with within time frames agreed with the Auditor-General. 27 (4) In the event of the auditor being unable to make a report in terms of subsection (2) or to make it without further qualification he or she shall inscribe upon or attach to the balance sheet a statement of that fact or of the nature of the qualification, as the case may be, and he or she shall set forth therein the facts or circumstances which prevent him or her from making the report or from making it without qualification. 83 Annual reports and audited financial statements The annual report and audited financial statements of a Ministry, public entity, constitutional entity or statutory fund shall— (a) contain a report on the activities, outputs and outcomes of the Ministry; 27 Subsection (3a) inserted by Act 6/2016 with effect from 28th October 2016.. - 40 -