Annual Report 2006

Auditors Report

REPORT OF THE AUDITORS TO THE MEMBERS OF
THE COMMUNAL CO-OPERATIVE CREDIT UNION LIMITED

 We have audited the accompanying balance sheet at 31st December, 2006 and the related statements of income and expenditure and cash flows for the year then ended.  These financial statements are the responsibility of the Credit Union's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

Except as reported below, we conducted our audit in accordance with approved International Auditing Standards.  These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosure in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

We report as follows:

(i) The Credit Union accounts for interest on loans on a cash receipt basis.  This is not in accordance with International Accounting Standards.

In our opinion, except for any adjustments which may be necessary due to the above matter, the financial statements referred to above, as set out on pages 3 to 11 present fairly in all material respects, the financial position of the Credit Union at 31st December, 2006 and the results of its operations for the year then ended in conformity with approved International Financial Reporting Standards.

GRENADA:

 25^th January, 2007                                                                              Accountants & Business Advisers: