OPINION 6. We have audited: (a) the accounts of the Board which comprise the financial statements (4) and the reports on the implementation of the budget (5) for the financial year ended 31 December 2016; and (b) the legality and regularity of the transactions underlying those accounts; as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). Reliability of the accounts Opinion on the reliability of the accounts 7. In our opinion, the accounts of the Board for the year ended 31 December 2016 present fairly, in all material respects, the financial position of the Board at 31 December 2016, the results of its operations, its cash flows, and the changes in net assets for the year then ended, in accordance with its Financial Regulation and with accounting rules adopted by the Commission’s accounting officer. These are based on internationally accepted accounting standards for the public sector. Legality and regularity of the transactions underlying the accounts Revenue Opinion on the legality and regularity of revenue underlying the accounts 8. In our opinion, revenue underlying the accounts for the year ended 31 December 2016 is legal and regular in all material respects. Payments Opinion on the legality and regularity of payments underlying the accounts 9. In our opinion, payments underlying the accounts for the year ended 31 December 2016 are legal and regular in all material respects. Responsibilities of management and those charged with governance 10. In accordance with Articles 310 to 325 of the TFEU and the Board’s Financial Regulation, management is responsible for the preparation and presentation of the accounts on the basis of internationally accepted accounting standards for the public sector and for the legality and regularity of the transactions underlying them. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error. Management is also responsible for ensuring that the activities, financial transactions and information reflected in the financial statements are in compliance with the authorities which govern them. The Board’s management bears the ultimate responsibility for the legality and regularity of the transactions underlying the accounts. 11. In preparing the accounts, management is responsible for assessing the Board’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting. 12. Those charged with governance are responsible for overseeing the entity’s financial reporting process. Auditor’s responsibilities for the audit of the accounts and underlying transactions 13. Our objectives are to obtain reasonable assurance about whether the accounts of the Board are free from material misstatement and the transactions underlying them are legal and regular and to provide, on the basis of our audit, the European Parliament and the Council or other respective discharge authorities with a statement of assurance as to the reliability of the accounts and the legality and regularity of the transactions underlying them. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit will always detect a material misstatement or non-compliance when it exists. These can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts. 14. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and the legality and the regularity of the transactions underlying them. The procedures selected depend on the auditor’s judgment, including an assessment of the risks of material misstatement of the accounts and of material non-compliance of the underlying transactions with the requirements of the legal framework of the European Union, whether due to fraud or error. In making those risk assessments, internal control relevant to the preparation and fair presentation of the accounts and legality and regularity of underlying transactions, are considered 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 internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the accounts. 15. For revenue, we verify the Board’s procedures for calculating and raising Fund contributions and other income, if any (6). Our verification of Fund contributions was based on information communicated by the Credit Institutions through national resolution authorities and did not cover the reliability of this information. Furthermore, Fund contributions which are the subject of administrative appeals or judicial proceedings between some Credit Institutions and national resolution authorities and of judicial proceedings between some Credit Institutions and the Board before the General Court of the European Union respectively were not subject to our audit in order not to affect in any way the position of the parties in such proceedings. Detailed information on administrative appeals or judicial proceedings is presented in paragraph 7(i) of the Board’s annual accounts.’ 16. For expenditure, we examine payment transactions when expenditure has been incurred, recorded and accepted. This examination covers all categories of payments other than advances at the point they are made. Advance payments are examined when the recipient of funds provides justification for their proper use and the Board accepts the justification by clearing the advance payment, whether in the same year or later. 17. In preparing this report and Statement of Assurance, we considered the audit work of the independent external auditor performed on the Board’s accounts as stipulated in Article 102(1) of the Board’s Financial Regulation. Emphasis of matter 18. Without calling into question its opinions expressed in paragraphs 6 to 17, the Court would like to emphasise that Fund contributions are calculated on the basis of information provided by Credit Institutions to the Board through the national resolution authorities. However, the SRM Regulation does not provide for a comprehensive and consistent control framework to ensure the reliability of the information. Furthermore, the Court notes that the methodology to calculate contributions laid down in the legal framework is very complex, resulting in a risk to accuracy. Moreover, the Board cannot release details on the risk-assessed contribution calculations per Credit Institution as they are interlinked and include confidential information about other Credit Institutions. This affects the transparency of these calculations.