2002 S Finance - Cherry, Bekaert & Holland

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REPRESENTATION FROM MANAGEMENT Management is responsible for the fair presentation of the basic financial statements in conformity with accounting principles generally accepted in the United States of America, for making all financial records and related information available to us, and for identifying and ensuring that the entity complies with the laws and regulations applicable to its activities. Management is also responsible for adjusting the basic financial statements to correct material misstatements. Additionally, as required by OMB Circular A-133 and the State Single Audit Implementation Act, it is management's responsibility to follow up and take corrective action on prior audit findings and to prepare a summary schedule of prior audit findings and a corrective action plan. The summary schedule of prior audit findings and the corrective action plan should be made available to us during the course of our engagement. At the conclusion of the engagement, the County's management will provide to us a representation letter that, among other things, addresses these matters and confirms certain representations made during the audit, including, to the best of their knowledge and belief, the absence of fraud involving management or those employees who have significant roles in the entity's internal control,or others where it could have a material effect on the basic general purpose financial statements. The representation letter will also affirm to us that management believes that the effects of any uncorrected misstatements aggregated pertaining to the current year basic general purpose financial statements are immaterial, both individually and in the aggregate, to the basic general purpose financial statements taken as a whole. COMMUNICATIONS At the conclusion of the engagement, we will provide management, in a mutually agreeable format, our recommendations designed to help the County make improvements in its internal control structure and operations, and other matters that may come to our attention(see"Responsibilities as to Internal Controls" above). As part of this engagement we will ensure that certain additional matters are communicated to the appropriate members of management and the County Commissioners. Such matters include (1)the initial selection of and changes in significant accounting policies and their application; (2)the process used by management in formulating particularly sensitive accounting estimates and the basis for our conclusion regarding the reasonableness of those estimates; (3) audit adjustments that could, in our judgement, either individually or in the aggregate be significant to the basic financial statements or our report; (4) any disagreements with management concerning a financial accounting,reporting or auditing matter that could be significant to the basic financial statements; (5) our views about matters that were the subject of management's consultation with other accountants about auditing and accounting matters; (6)major issues that were discussed with management in connection with the retention of our services, including, among other matters, any discussions regarding the application of accounting principles and auditing standards; (7) serious difficulties that we encountered in dealing with management related to the performance of the audit; and (8) total fees for management advisory services during the year under audit, including a description of the types of such services rendered.