Navy Federal Credit Union 2007 Annual Report Download - page 23

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To the Board of Directors, Supervisory Committee and Other Members of Navy Federal Credit Union:
We have audited the accompanying consolidated statements of financial condition of Navy Federal Credit Union (“Navy
Federal”) as of December 31, 2007 and 2006, and the related consolidated statements of operations, of changes in reserves
and undivided earnings, and of cash flows for the years 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 audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America.
Those 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 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. We believe
that our audits provide a reasonable basis for our opinion.
In our report dated March 5, 2007, we expressed an opinion that the 2006 financial statements did not fairly present
financial position in conformity with accounting principles generally accepted in the United States of America because of one
departure from such principles: Navy Federal classified member's equity as equity as opposed to liabilities. Navy Federal has
changed its method of accounting for these items and changed its 2006 financial statements to conform with accounting
principles generally accepted in the United States of America. Accordingly, our present opinion on the 2006 financial
statements, as presented herein, is different from that expressed in our previous report.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial
position of Navy Federal Credit Union at December 31, 2007 and 2006, and the results of its operations and its cash flows
for the years then ended in conformity with accounting principles generally accepted in the United States of America.
March 10, 2008
The Report of Independent Auditors