The financial report and Directors’ responsibility

The financial report comprises the income statement, statements of cash flows, accompanying Notes 1 to 45 to the financial statements, and the Directors’ declaration for Savings & Loans Credit Union (S.A.) Limited (the ‘Credit Union’) and Savings & Loans Credit Union (S.A.) Limited and its controlled entity (the ‘Consolidated Entity’), for the year ended 30 June 2006. The Consolidated Entity comprises both the Credit Union and the entity it controlled during that year.

The directors of the Credit Union are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Audit approach

We conducted an independent audit in order to express an opinion to the members of the Credit Union. Our audit was conducted in accordance with Australian Auditing Standards in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001, Australian Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the Credit Union’s and the Consolidated Entity’s financial position, and of their performance as represented by the results of their operations and cash flows.

We formed our audit opinion on the basis of these procedures, which included:

• examining, on a test basis,information to provide evidence supporting the amounts and disclosures in the financial report, and
• assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the directors.

While we considered the effectiveness of management’s internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.

Audit opinion

In our opinion, the financial report of Savings & Loans Credit Union (S.A.) Limited is in accordance with:

a) the Corporations Act 2001, including:

(i) giving a true and fair view of the Credit Union’s and the Consolidated Entity’s financial position as at 30 June 2006 and of their performance for the financial year ended on that date; and

(ii) complying with Accounting Standards in Australia and the Corporations Regulations 2001; and

b) other mandatory financial reporting requirements in Australia.

A Santin, Partner
Dated at Adelaide this 30th day of August 2006