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<br /> <br /> <br /> <br /> <br /> MCCLANAHAN AND HOLMES, LLP <br /> CERTIFIED PUBLIC ACCOUNTANTS <br /> R. FRANK RAY, CPA 228 SIXTH STREET S.E. <br /> R. E. BOSTWICK, CPA PARIS, TEXAS 75460 <br /> STEVEN W. MOHUNDRO, CPA 903-784-4316 <br /> GEORGE H. STRUVE, CPA FAX 903-784-4310 <br /> ANDREW B. REICH, CPA 304 WEST CHESTNUT <br /> RUSSELL P. WOOD, CPA DENISON, TEXAS 75020 <br /> 903-465-6070 <br /> FAX 903-465-6093 <br /> 1400 WEST RUSSELL <br /> BONHAM, TEXAS 75418 <br /> 903-583-5574 <br /> Report on Internal Control Over Financial Reporting and on FAX 903-583-9453 <br /> Compliance and Other Matters Based on an Audit of Financial Statements <br /> Performed in Accordance with Government Auditing Standards <br /> Honorable Mayor and City Council <br /> City of Paris, Texas <br /> We have audited the fm cial statements of the governmental activities, the business-type activities, the aggregate <br /> discretely presented component units, each major fund, and the aggregate remaining fund information of the City of <br /> Paris, Texas, as of and for the year ended September 30, 2009, which collectively comprise the City of Paris, Texas', <br /> basic financial statements and have issued our report thereon dated March 29, 2010. We conducted our audit in <br /> accordance with auditing s andards generally accepted in the United States of America and the standards applicable to <br /> financial audits contained ' Government Auditing _Standards , issued by the Comptroller General of the United States. <br /> Internal Control Over Fina cial Re ortin <br /> In planning and performing our audit, we considered the City of Paris, Texas', internal control over financial reporting as <br /> a basis for designing our a diting procedures for the purpose of expressing our opinions on the financial statements, but <br /> not for the purpose of expressing an opinion on the effectiveness of the City of Paris, Texas', internal control over <br /> financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Paris, Texas', internal <br /> control over financial reporting. <br /> A control deficiency exists when the design or operation of a control does not allow management or employees, in the <br /> normal course of perform' their assigned functions, to prevent or detect misstatements on a timely basis. A significant <br /> deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City of Paris, Texas', <br /> ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted <br /> accounting principles such at there is more than a remote likelihood that a misstatement of the City of Paris, Texas', <br /> financial statements that is more than inconsequential will not be prevented or detected by the City of Paris, Texas', <br /> internal control. <br /> A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a <br /> remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the City of <br /> Paris, Texas', internal control. <br /> Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph <br /> of this section and would n t necessarily identify all deficiencies in internal control that might be significant deficiencies <br /> or material weaknesses. W did not identify any deficiencies in internal control over financial reporting that we consider <br /> to be material weaknesses, as defined above. <br /> Compliance and Other Matters <br /> As part of obtaining reas nable assurance about whether the City of Paris, Texas', financial statements are free of <br /> material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and <br /> grant agreements, noncompliance with which could have a direct and material effect on the determination of <br /> <br /> <br /> AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS <br /> 113 <br />