Agenda - 04-15-2008-4f - Laserfiche WebLink

Browse Search

0 McGladrey& Pullen Certified Public Accountants March 24, 2008 The Honorable Manager and Members of the County Commissioners Orange County, North Carolina • P.O. Box 8181 Hillsborough, North Carolina 27276 Attention: Mr. Gary Humphreys, Financial Services Director McGladrey lx Pullen, UP 230 North Eini St, 5te.1100, Greensboro, NC 2740I•Z436 P.Q Box 2410, Greensboro, NC Z1402.24T0 0 336273.4461 r 336.274.2519 wwwmcgladreycom This letter is to explain our understanding of the arrangements for the senfices we are to per6orm for Orange County, North Carolina {the °County") for the year ending June 30, 2008. We ask that you either confirm or amend this understanding. Audit Services We win perfomr an audit of the County's governmental activities and major fund as of far the year ended June 30, 2008 which collectively comprise the basic financial statements. We understand that these financial statements will be prepared in at~coniance wtth accounting principles generally accepted in the United States of America. The objective~of an audit of financial statements is to express an opinion on those statements. 'INe will also peffiorm the autlit of the County as of June 30, 2008 so as to satisfy the audit n:gtiirements'impased by the Single Audit Act and the U.S. Office of Management and Budget (°OMB'~ Circular A-133. 1Ne will conducfthe audit"in acconiance with auditing standards gener~7ly accepted9 inlhe't~riititerf States of America and Government Audrfing Standaros issued by the Comptroller General of the United States; the provisions of the Single Audit Act, OMB CircularA-133 and OMB's Compliance Supplamenh, and the State Single Audit implementation Act. Those standards,.circulars, supplements or guides require'that we plan and perform the audit to obtain reasonable, rather than absolute, assurance about whetherthe financial statements are free of material misstatement whether caused by error or fraud. Aexordingiy, a rnateriat misstatement may remain undetected. Also, an audit is not designed to detect errors orftaud that are (mmateriai to the•financiai sfatemerrts. The determination of abuse is subjective; therefore, Government Auditing Standards do not expect us to provide reasonable assurance of detecting abuse. An audit of financrai statements also includes obtaining an understanding of internal control sufficient to plan the audit and to determine the nature, timing, and extent of audit procedures to be parfiarmed. An audit is not designed to .provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, we will communicate tiff you and tD management any significant deficiencies or material weaknesses that become known to us during the course of the audit ' We will also communrcate th the board of county commissioners (a) any fraud involving senior management and fraud (whether caused by senior management or other employees) that causes a material misstatement of the financial statements, (b) any fraud, illegal acts, violations of.provisions of contracts or.grant agreements and abuse that come to our attention (unless they are clearly inconsequential), (c) any disagreements with management and ocher serious difficulties encountered in performing the audit, and (d) various matters related to the entity's accounting policies and financial statements. McGladrey & Pullen, LLP is a member Nnn of RSM Internationai- an aitiliation afseparate and independent legal entities.