Report
Annual report and Accounts 2019 to 2020
Making gambling fairer and safer
Parliamentary accountability and audit report
The Audit Report of the Comptroller and Auditor General to the Houses of Parliament
Opinion on financial statements
I have audited the ?nancial statements of the Gambling Commission for the year ended 31 March 2020 under the Gambling Act 2005. The ?nancial statements comprise of: the Statements of Comprehensive Net Expenditure, Financial Position, Cash Flows, Changes in Taxpayers’ Equity, and the related notes including the signi?cant accounting policies. These ?nancial statements have been prepared under the accounting policies set out within them. I have also audited the information in the Accountability Report that is described in that report as having been audited.
In my opinion the ?nancial statements give a true and fair view of the state of the Gambling Commission’s affairs as at 31 March 2020 and of the net expenditure for the year then ended; and the ?nancial statements have been properly prepared in accordance with the Gambling Act 2005 and Secretary of State directions issued thereunder.
Opinion on regularity
In my opinion, in all material respects the income and expenditure recorded in the ?nancial statements have been applied to the purposes intended by Parliament and the ?nancial transactions recorded in the ?nancial statements conform to the authorities which govern them.
Basis of opinions
I conducted my audit in accordance with International Standards on Auditing (ISAs) (UK) and Practice Note 10 ‘Audit of Financial Statements of Public Sector Entities in the United Kingdom’. My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the ?nancial statements section of my certi?cate. Those standards require me and my staff to comply with the Financial Reporting Council’s Revised Ethical Standard 2016. I am independent of the Gambling Commission in accordance with the ethical requirements that are relevant to my audit and the ?nancial statements in the UK. My staff and I have ful?lled our other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Conclusions relating to going concern
I have nothing to report in respect of the following matters in relation to which the ISAs (UK) require me to report to you where:
- the Gambling Commission’s use of the going concern basis of accounting in the preparation of the ?nancial statements is not appropriate; or
- the Gambling Commission have not disclosed in the ?nancial statements any identi?ed material uncertainties that may cast signi?cant doubt about the Gambling Commission’s ability to continue to adopt the going concern basis.
Responsibilities of the Commission and Accounting Officer for the ?nancial statements
As explained more fully in the Statement of the Commission’s and Accounting Officer’s Responsibilities, the Commission and the Accounting Officer are responsible for the preparation of the ?nancial statements and for being satis?ed that they give a true and fair view.
Auditor’s responsibilities for the audit of the ?nancial statements
My responsibility is to audit and report on the ?nancial statements in accordance with the Gambling Act 2005.
An audit involves obtaining evidence about the amounts and disclosures in the ?nancial statements sufficient to give reasonable assurance that the ?nancial statements are free from material misstatement, whether caused by fraud or error. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to in?uence the economic decisions of users taken on the basis of these ?nancial statements.
As part of an audit in accordance with ISAs (UK), I exercise professional judgment and maintain professional scepticism throughout the audit. I also:
Identify and assess the risks of material misstatement of the ?nancial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Gambling Commission’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Evaluate the overall presentation, structure and content of the ?nancial statements, including the disclosures, and whether the consolidated ?nancial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Conclude on the appropriateness of the Gambling Commission’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signi?cant doubt on the Gambling Commission’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my report to the related disclosures in the ?nancial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my report. However, future events or conditions may cause the Gambling Commission to cease to continue as a going concern.
I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signi?cant audit ?ndings, including any signi?cant de?ciencies in internal control that I identify during my audit.
In addition, I am required to obtain evidence sufficient to give reasonable assurance that the income and expenditure reported in the ?nancial statements have been applied to the purposes intended by Parliament and the ?nancial transactions conform to the authorities which govern them.
Other information
The Commission and the Accounting Officer are responsible for the other information. This comprises information included in the annual report, other than the parts of the Accountability Report described in that report as having been audited, the ?nancial statements and my auditor’s report thereon. My opinion on the ?nancial statements does not cover the other information and I do not express any form of assurance conclusion thereon. In connection with my audit of the ?nancial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the ?nancial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.
Opinion on other matters
In my opinion the parts of the Accountability Report to be audited have been properly prepared in accordance with Secretary of State directions made under the Gambling Act 2005. In light of the knowledge and understanding of the Gambling Commission and its environment obtained in the course of the audit, I have not identi?ed any material misstatements in the Performance Report or the Accountability Report and the information given in Performance Report and Accountability Report for the ?nancial year for which the ?nancial statements are prepared is consistent with the ?nancial statements.
Matters on which I report by exception
I have nothing to report in respect of the following matters which I report to you if, in my opinion:
- adequate accounting records have not been kept or returns adequate for my audit have not been received from branches not visited by my staff; or
- the ?nancial statements and the parts of the Accountability Report to be audited are not in agreement with the accounting records and returns; - I have not received all of the information and explanations I require for my audit;
- the Governance Statement does not re?ect compliance with HM Treasury’s guidance.
Report
I have no observations to make on these ?nancial statements.
Gareth Davies November 2020 Comptroller and Auditor General
National Audit Office157-197 Buckingham Palace Road Victoria
London
SW1W 9SP
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Last updated: 13 November 2020
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