2023d ABC Board Minutes - Laserfiche WebLink

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i Materiality Financial Accounting Standards Codification, Qualitative Characteristics of Accounting Information, defines materiality as the "magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances,makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement." In planning and performing the audit, we used professional judgment to determine a level of performance materiality of$60,000. Factors considered in this evaluation included the components of the financial statements believed to be the most critical to users and the extent of adjustment detected in prior audits. Compliance with All Ethics Requirements Regarding Independence The engagement team and others in our firm have complied with all relevant ethical requirements regarding independence. I Qualitative Aspects of the ABC Board's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the ABC Board is included in Note I to the financial statements. During the year ended June 30, 2023, the ABC Board implemented Governmental Accounting Standards Board 96 related to lease reporting requirements, using the modified retrospective approach. See Note 17 to the financial statements for additional information. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and(2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. The most sensitive accounting estimates affecting the financial statements are the depreciation lives and methods relating to capital assets. We evaluated the key factors and assumptions used to develop the depreciation lives and methods relating to capital assets and determined that it is reasonable in relation to the basic financial statements taken as a whole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the ABC Board's financial statements relate to the distributions of income. Significant Difficulties Encountered During the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. 2