Agenda - 06-26-1996 - VIII-C - Laserfiche WebLink

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6 May 31, 1996 The Board of County Commissioners Page 3 • Opinion on compliance with the specific requirements related to major federal and state programs identified in the Schedule of Federal and State Financial Assistance • Report on compliance with general requirements of federal financial assistance programs • Report on compliance with specific program requirements related to nonmajor federal financial assistance program transactions selected for testing, if any. In addition, we will render a report on illegal acts and a report on findings and questioned costs, as required, depending on the results of our audit procedures. The management of Orange County is responsible for establishing and maintaining an internal control structure. To fulfill this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs for internal control structure 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 internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions, or that the effectiveness of the design and operation of policies and procedures may deteriorate. As part of our audit, we will consider the organization's internal control structure and assess control risk, as required by Government Auditing Standards and generally accepted auditing standards, for the purpose of establishing a basis for determining the nature,timing, and extent of auditing procedures necessary for expressing our opinion concerning the general purpose financial statements, and not to provide assurance on the internal control structure. The report on our understanding of the organization's internal control structure and the assessment of control risk made as part of the general purpose financial statement audit will include(1)the scope of our work in obtaining an understanding of the internal control structure and in assessing the control risk; (2)the organization's significant internal controls or control structure,including the controls established to ensure compliance with laws and regulations that have a material impact on the general purpose financial statements;and(3)the reportable conditions,if any, including the identification of material weaknesses identified as a result of our work in understanding and assessing the control risk.