06 - MINUTES OF BOARDS, COMMISSIONS, AND COMMITTEES

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Paul T. Wells & .Associates` LLC Communications with Governance at the Conclusion of the ,Audit Board of Directors Paris -Lamar County Health District Paris, Texas We have audited the financial statements of the Paris -Lamar County Health District (the District) for the year ended September 30, 2016, and have issued our report thereon dated December 5, 2016. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain informal on related to the planned scope and timing of our audit. We have cornrnu ;icated such information in our engagement. letter to you dated September 3o, 2o16. Professional standards also require that we communicate te. you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the District are described in Note 1 to the financiat statements. No new accounting policies were adopted and the application of existing policies was not changed during 2016. We noted no transactions entered into by the District during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: !'Management's estimate of depreciation expense is based or, a straight -line basis, over the estimated useful lives of the District's assets. We evaluated the key :actors and assumptions used to develop the depreciation method used and the estimates of useful lives of the assets in determining that they are reasonable in relation to the financial statements taken as a whole. The allowance for, uncollectible accounts and patient receivables is calculated based on estimates from management. We have determined, based on review of this calculation, that these estimates are reasonable in relation to the financial statements taken as a evhole. 13-73 L3iild( ?'tV (iUC, Pdfly, !n 7 5�4hC% ^ P,rjnE:''U�.i Fc]X: (3,iBL.,'6K .•._.W.