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19C - EMPOWERMENT-FINANCIAL AUDIT FY 2009-2010
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19C - EMPOWERMENT-FINANCIAL AUDIT FY 2009-2010
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1/3/2012 3:59:38 PM
Creation date
9/15/2010 2:15:47 PM
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City Clerk
Doc Type
Agenda Packet
Item #
19C
Date
9/20/2010
Destruction Year
2015
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Our audit included obtaining an understanding of the Organization and its environment, including internal <br />control, sufficient to assess the risks of material misstatement of the financial statements and to design the <br />nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, <br />(2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or <br />governmental regulations that are attributable to the entity or to acts by management or employees acting <br />on behalf of the Organization. <br />Significant Audit Findings <br />Qualitative Aspects of Accounting Practices <br />Management is responsible for the selection and use of appropriate accounting policies. The significant <br />accounting policies used by Organization are described in Note (1) to the financial statements. No new <br />accounting policies were adopted and the application of existing policies was not changed during year. <br />We noted no transactions entered into by the Organization during the year for which there is a lack of <br />authoritative guidance or consensus. All significant transactions have been recognized in the financial <br />statements in the proper period. <br />Accounting estimates are an integral part of the financial statements prepared by management and are <br />based on management's knowledge and experience about past and current events and assumptions about <br />future events. Certain accounting estimates are particularly sensitive because of their significance to the <br />financial statements and because of the possibility that future events affecting them may differ <br />significantly from those expected We noted that the Organization's significant account balances are not <br />dependent upon management's estimates. <br />Certain financial statement disclosures are particularly sensitive because of their significance to financial <br />statement users. The most sensitive disclosure affecting the financial statements was regarding the <br />Organization's ability to continue as a going concern. This disclosure is included as Note (8) to the <br />financial statements. <br />Diculties Encountered in Performing the Audit <br />We encountered no significant difficulties in dealing with management in performing and completing our <br />audit. <br />Corrected and Uncorrected Misstatements <br />Professional standards require us to accumulate all known and likely misstatements identified during the <br />audit, other than those that are trivial, and communicate them to the appropriate level of management. <br />Management has corrected all such misstatements. In addition, none of the misstatements detected as a <br />result of audit procedures and corrected by management were material, either individually or in the <br />aggregate, to the financial statements taken as a whole. <br />Disagreements with Management <br />For purposes of this letter, professional standards define a disagreement with management as a financial <br />accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be <br />significant to the financial statements or the auditor's report. We are pleased to report that no such <br />disagreements arose during the course of our audit. <br />19C-4
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