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KAAREN A. JACKS & ASSOCIATES, P.C. Certified Public Accountants P.O. Box 3167 Karen A. Jacks, CPA Longview, Texas 75606 Phone: 903•238•8822 Peggy J. Lantz, CPA Sherry Davis, CPA 1501 Colony Circle Fax• 903 • 238 • 9838 Longview, Texas 75604 ~ December 30, 2008 Board of Directors East Texas Council on Alcoholism and Drug Abuse Longview, Texas We have audited the financial statements of East Texas Council on Alcoholism and Drug Abuse as of and for the year ended August 31, 2008, and have issued our report thereon dated December 30, 2008. As a part of our audit, we made a siudy and evaluation of the Council's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. The purpose of our study and evaluation was to determine the nature, timing and extent of the auditing procedures necessary for expressing an opinion on the Council's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole. The Board of D'uectors and management are responsible for establishing and maintaining a system of intemal accounting control. In fulfilling that responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system aze to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with procedures may deteriorate. Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of the East Texas Council on Alcoholism and Drug Abuse taken as a whole. However, our siudy and evaluation disclosed the following conditions which we believe could be improved to the benefit of the Council's operations. These conditions were considered in deternuning the nature, timing and extent of the audit tests to be applied in our audit of the August 31, 2008, financial statements, and this letter does not modify our report dated December 30, 2008, on those financial statements. Members American lnslilute of Certified Publfc Accowtants • Texas SocitqiCeryfi~e~p pyq~i~ pccountants• AICPA Division for Firms Private Companies Prectice Section a VUv:jU