1991 - 09-03-91 Regular Meeting - Laserfiche WebLink

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gnn~ 14 54 CHERRY H~OLLAND CERTIFIED PUBLIC ACCOUNTAN-rS August 23, 1991 Ms. Beatrice C. Fields, Finance Director County of Lee, North Carolina Post Office Drawer 1968 Sanford, North Carolina 27331-1968 Dear Ms. Fields: Enclosed are the following: `Revised contract to audit the financial statements for the year ended June 30, 1991, 'Amendment to our engagement understanding of May 8, 1991, and 'our invoice for accounting services in connection with the setup of proprietary fund fixed assets on the computerized depreciation software. The year ended June 30, 1991 is the second year under our proposal to audit the financial statements of the County. The original contract for 1991 in the amount of $23,000.00 was the amount proposed some two years ago for the audit As detailed in the contract that audit envisioned only one enterprise fund, the Water Fund. Since that time a new fund, the Solid Waste Fund, was established. The creation of this new fund will necessitate additional audit work not contemplated in the proposal or the original contract for the current year. Principally, these additional audit steps will involve verification of the opening balances being transferred to create the new fund. This verification will consist of making a determination that all assets comprising the fund have been properly transferred net of any accumulated depreciation that is now required to be recognized since this is an enterprise fund, that any associated debts or liabilities have likewise been transferred or otherwise appropriately recognized, and that the fund equity thereby created is properly presented by its contributed capital components of Federal, state and local sources. Of course, the year end balances will now also require certain audit verification in addition to the aforementioned opening balances. Since the County previously only had one enterprise fund there was no need for the various combining statements in the financial statements that will now be necessary in order to present each fund and their combined results. I hope this information will be of assistance to you in presenting our request to the Commissioners. Thank you for your courtesy. Sincerely yours, CHERRY, BEKA T & HOLL~4ND H. Wayne Comstock, CPA Partner 2850 Village Drive, Suite 201, P.O. Drawer 47, Fayetteville, North Carolina 28302-0047. 919/483-7131 Offices throughout the Southeast • Represented internationally through Summit International Associates, Inc.