Auditors Report to the Board of Directors of ETC Group:
We have audited the balance sheet of ETC Group (formerly Rural Advancement Foundation International (Canada)) as at August 31, 2002 and the statements of operations and net assets and cash flows for the year then ended. These financial statements are the responsibility of ETC Group's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures 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.
In common with many charitable not-for-profit organizations, ETC Group derives its revenues and expenses from a variety of sources, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues and expenses, including contributed goods and services, was limited to the amounts recorded in the records of ETC Group and we were not able to determine whether any adjustments might be necessary to these aforementioned accounts. In our opinion, except for the effect of adjustments, if any, which we might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of revenue and expenses referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of ETC Group as at August 31, 2002 and the results of its operations and net assets and cash flows for the year then ended in accordance with generally accepted accounting principles.