Independent Auditors’ Report

Members of the Board

National Library Board

Report on the financial statements

We have audited the accompanying financial statements of National Library Board (the “Board”) and its subsidiaries (the “Group”), which comprise the balance sheet of the Group and the Board as at 31 March 2008, the income and expenditure statement and statement of changes in equity and cash flow statement of the Group, and the income and expenditure statement and statement of changes in equity of the Board for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 75 to 109. The financial statements for the year ended 31 March 2007 were audited by the Auditor-General’s Office, whose report dated 27 June 2007 expressed an unqualified opinion on these financial statements. The financial statements for the financial year ended 31 March 2007 did not include the restatement as mentioned in Note 13 to the financial statements.

Management’s responsibility for the financial statements

The Board’s management is responsible for the preparation and fair presentation of these financial statements in accordance with the provisions of the National Library Board Act (Cap. 197, 1996 Revised Edition) (the “Act”) and Statutory Board Financial Reporting Standards.

Management has acknowledged that its responsibility includes:

  1. designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial
    statements that are free from material misstatement, whether due to fraud or error;
  2. selecting and applying appropriate accounting policies; and
  3. making accounting estimates that are reasonable in the circumstances.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion:

  1. the consolidated financial statements of the Group and the balance sheet, income and expenditure statement and statement of changes in equity of the Board are properly drawn up in accordance with the provisions of the Act and Statutory Board Financial Reporting Standards and on such basis present fairly, in all material respects the state of affairs of the Group and the Board as at 31 March 2008 and the results, changes in equity and cash flows of the Group and the results and changes in equity of the Board for the year ended on that date; and
  2. the accounting and other records required by the Act to be kept by the Board have been properly kept in accordance with the provisions of the Act.

Report on other legal and regulatory requirements

During the course of our audit, nothing came to our notice that caused us to believe that the receipt, expenditure and investment of monies and the acquisition and disposal of assets by the Board during the financial year have not been in accordance with the provisions of the Act.

KPMG

Public Accountants and

Certified Public Accountants

Singapore

27 June 2008