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HomeMy WebLinkAboutDavis Hammon, Mendocino Emergency Services Authority Audit, 1997-09-13DAMS HAMMON & CO. roll n Certified Public Accountants ,-~u u September 13. 1997 Ms. Candace Horsley Mendocino Emergency Services Authority % City of Ukiah 300 Seminary Ave. Ukiah. CA 95482-5400 Dear Ms. Horsley: Davis W. Hammon, Jr., CPA (1924-1989) Stephen B. Norman, CPA - PFS Stephen J. Herr, CPA Guy E. Marcy, CPA VV'e are pleased to confirm our understanding of the services we are to provide for Mendocino Emergency Services Authority . We will audit the financial statements of Mendocino Emergency Services Authority as of and for the year ended June 30, 1997. Our audit will be conducted in accordance with generally accepted auditing standards and the standards for financial audits contained in Governtnent Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of Mendocino Emergency Services Authority and other procedures we consider necessary to enable us to express an unqualified opinion that your financial statements are fairly presented. in all material respects, in conformity with generally accepted accounting principles. If our opinion is other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason. we are unable to complete the audit, we will not issue a report as a result of this engagement. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts. and may include tests of the physical existence of inventories. and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected customers. creditors and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of the audit, we will also request certain written representations from you about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors. irregularities. or illegal acts. including fraud or defalcations. may exist and not be detected by us. MEMBERS: AMERICAN INSTITUTE AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 2080 Myers Street, Oroville, CA 95966-5341 (916) 533-3392 FAX (916) 533-2714 n I'n DAYIS HAMMON & CO. Certified Public Accountants ~u u Mendocino Emergency Services Authority September 13. 1997 Page 2 However. we will inform you of any material errors and any fraud that come to our attention. We will also inform you of any illegal acts that come to our attention. unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of this information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements. but the responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related internal control policies and procedures. the selection and application of accounting principles. and the safeguarding of assets. We understand that your staff will furnish the following: a) All financial records. books of account, supporting documents , and other related records. b) Copies of minutes of the Board of Directors. By-Laws. Charter. police directives. contracts, loan agreements. leases, budgets. and such other information as may be required in the conduct of the audit. c) Adequate working space and other facilities for the conduct of the audit. Our audit is not specifically designed and cannot be relied on to disclose reportable conditions. that is, significant deficiencies in the design or operation of the internal control structure. However, during the audit, if we become aware of such reportable conditions or ways that Nve believe management practices can be improved, we will communicate them to you in a separate letter. We expect to begin our audit in September, 1997 and to issue our report shortly thereafter. DAVIS HAMMON & CO_ Certified Public Accountants on. Mendocino Emer,_,encv Services Authority September 13. 1997 Pare 3 Our fees for theses services will be based on our standard hourly rates. plus travel and out-of-pocket cost such as report reproduction, typing. postage, etc. Our standard rates vary according to the degree of responsibility involved and the experience level of the personnel assignedto your audit. Our invoices for theses fees are payable on presentation. However. the maximum fees for the year ended June 30.. 1997. should not exceed $2.500. We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions. please give me a call. If you agree with the terms of our engagement as described in this letter. please sign the - t7 enclosed copy and return it to us. This letter will continue in effect until canceled by either party. Sincerely, DAVIS HAMMON & CO. Stephen J. Herr, CPA RESPONSE: This letter correctly sets forth the understanding of Mendocino Emergency Services Authority: Officer Signature: OL~~~ Title: Date: - -