18 - APPROVED ANNUAL AUDIT OF THE PEDC FOR FY 2013-14

Home Browse Search

Board of Directors Paris Economic Development Corporation Page 2 Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. PEDC prepares its budget and maintains its general ledger primarily on a cash basis while the year -end financial reports are prepared on a modified accrual or accrual basis. At year end, we are provided information to convert the cash basis to accrual basis for financial statement presentation. In addition, a receivable from the prior year was deemed to not be collectible and was written off. Debit Credit Sales Tax Receivable $ 6,000 Direct Business Incentives 46,744 Sales Tax Revenue $ 6,000 Other Receivable 46,744 Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated January 5, 2014. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS