We have audited the financial statements for the year ended 30 June 2007 which comprise the Group Profit and Loss Account, the Group and Parent Balance Sheets, the Statement of Group Total Recognised Gains and Losses, the Group Cash Flow Statement and the related notes. These financial statements have been prepared under the historical cost convention and the accounting policies set out therein.

This report is made solely to the members of the Rugby Football Union, as a body, in accordance with the Friendly and Industrial and Provident Societies Act 1968 and the Provident Societies Act 1965. Our audit work has been undertaken so that we might state to the members of the Rugby Football Union those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Rugby Football Union and the members of the Rugby Football Union as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the Management Board and auditors

As described in the Statement of Management Board’s Responsibilities the Management Board of the Rugby Football Union is responsible for the preparation of the financial statements.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Friendly and Industrial and Provident Societies Act 1968 and the Provident Societies Act 1965. We also report to you if, in our opinion, the Rugby Football Union has not kept proper accounting records or if we have not received all the information and explanations we require for our audit.

We read other information contained in the Annual Report, and consider whether it is consistent with the audited financial statements. This other information comprises only the Chief Executive’s Review and the Operating and Financial Review. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Management Board in the preparation of the financial statements, and of whether the accounting policies are appropriate to the circumstances of the Rugby Football Union and the Group, consistently applied and adequately disclosed.