Search and Categories

Here’s The Scoop…2/24/09…LBTS…Commision Meeting …#11…”The Rest Of The Story”……The Auditors Report…

March 2, 2009 by Barbara

AS  THE LATE PAUL HARVEY SAID……..

http://www.inlandnewstoday.com/images/photo/p6960.jpg

“THE REST OF THE STORY”….The 2/24/09… …LBTS COMMISSION MEETING….

“We give the Town a 9.5…Is that an expressed opinion…or no-expressed opinion?

The Comprehensive annual report from Auditors Rachlin, LLP…(copies available from Town Hall)…from the report…

Cover letter…Jan 29,2009…From the LBTS Town Manager/Financial Director

State law requires all local governments publish within one year of the close of each fiscal year a complete set of financial statements…that are audited in accordance with standard accepted practices by a certified public accountants. LBTS did this with Raclin ,LLC…as it has in the previous years to the tune of $31.000.00…the report consisted of the managements representations concerning the finances of LBTS…and it is the management of LBTS that assumes the responsibility for the completeness and reliability of that information….”To provide a reasonable basis for making these representations, management of the Town has established a comprehensive internal control framework that is designed both to protect the Town’s assets from loss, theft, or misuse and to complete sufficient reliable information for the preparation of the Town of LBTS financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Town’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief , this financial report is complete and reliable in all material respects.’

It goes on to describe Rachlin…the independent audit and what the audit involves….

The independent audit involved examining on a test basis evidence supporting the amounts and disclosures in the  financial statements; assessing principles used and significant estimates made by management; and evaluating the overall financial statement presentation.The independent auditor concluded based on their audit , that there was a reasonable basis for rendering an unqualified opinion that the Town of Lauderdale- By– The- Sea’s financial statements for fiscal year ended September 30,2008, are fairly presented in conformity with GAAP. ‘

GAAP requirements were described…management needed to provide a narrative introduction, overview, analysis to accompany basic financial statements…next was the Profile of the Town…Factors affecting the financial condition…long term financial planning…cash management…risk management…and awards and acknowledgments…

In the concluding report to the Commission…Rachlin, LLC  state they did the audit….as described by the Manager…’These financial statements are the responsibility of  the Town’s management. OUR RESPONSIBILITY  IS TO  EXPRESS OPINIONS  ON THESE  FINANCIAL STATEMENTS  BASED ON OUR AUDIT.’

Explained further their audit and the standards used and accepted …”Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes CONSIDERATION of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but NOT for the purpose of EXPRESSING  AN OPINION on the effectiveness of the Town’s internal control over financial reporting. Accordingly, WE  EXPRESS NO SUCH OPINION An audit also included assessing accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. WE BELIEVE OUR AUDIT  PROVIDES  A REASONABLE  BASIS  FOR OUR OPINIONS.’

They said the basis financial statements were presented fairly in all material respects…

‘ In accordance with the Government Auditing Standards, we have also issued our report dated Jan.29,2009 on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.The purpose of that report is to DESCRIBE THE  SCOPE of our testing, of internal control over financial reporting  and compliance and the results of that testing, and NOT TO PROVIDE AN OPINION  on the internal control over financial reporting or on compliance., The report was done in accordance of Government Auditing standard…with discussion and analysis beyond the  requirements of the basic financial statements…

In closing…’

‘Our audit was conducted for the purpose of forming opinions on financial statements that collectively comprise the Town’s basic financial statements that collectively comprise the Town’s basic financial statements.. The introductory section, individual fund statements and schedules and statistical tables as listed in the table of contents are presented for the purposes of additional analysis  and are not a required part of the basic financial statements of the Town. The individual fund statements and schedules have been subjected to auditing procedures applied in the audit of the basic  financial statements, and, IN OUR OPINION, are fairly stated, in  all material respects, in relation to the basic financial statements taken as a whole’

and this….

‘The information shown in the introductory and statistical sections listed in the table of contents has NOT been subjected to the auditing procedures  applied to the basic financial statements and, accordingly, WE EXPRESS NO OPINION ON THEM.’

BC- just remember …Enron had audits also…

Dear Readers…this writer is not suggesting any wrongdoing…just giving you a look at what is contained…the verbage used in the world of” bean counters”………….PRICELESS!…

more to come………

Post Division