Auditors' Report

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To the Members of L'Association des Francophones de Nanaimo:

We have audited the statement of financial position of L'Association des Francophones de Nanaimo as at March 31, 2005 and the
statements of operations, changes in net assets and cash flows for the year then ended. These financial statements are the responsibility

of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audit.

Except as explained in the following paragraph, we conducted our audit in accordance with Canadian 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 not-for-profit organizations, the association derives revenue from donations totaling $253,536 (2004 - $214,996)
the completeness of which is not susceptible to satisfactory audit verification. $247,001 (2004 - $206,882) of these donations are
classified as gifts in kind revenue and $6,535 (2004 - $8,114) are included in goods sold, fees and miscellaneous revenues. Accordingly,
our verification of donations revenue was limited to the amounts recorded in the records and we were not able to determine whether
adjustments might be necessary to gifts in kind and goods sold, fees and miscellaneous revenues, excess of revenues over expenses,

assets and net assets.

In our opinion, except for the effects of adjustments, if any, which we might have determined to be necessary had we been able to satisfy
ourselves concerning the completeness of the donations referred to in the preceding paragraph, these financial statements present fairly,
in all material respects, the financial position of the Associationas at March 31, 2005 and the results of its operations and its cash flows

for the year then ended in accordance with Canadian generally accepted accounting principles.

Nanaimo, British Columbia iM aor ane J GAY Penang L LP

May 12, 2005 Chartered Accountants

P.O. Box 514, 96 Wallace Street, Nanaimo, British Columbia, V9R 5L5, Phone: (250) 753-8251, 1-877-340-3330

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