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HomeMy WebLinkAbout2014 (2)Fishers Island Fire District COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE December 31, 2014 Sheehan P 437 Madison Avenue, 29th Floor New York, NY 10022 • 212.962.4470 165 Orinoco Drive, Brightwaters, NY 11718 631.665.7040 • Fax: 631.665.7014 15 South Bayles Avenue, Port Washington, NY 11050 516.883.5510 • Fax: 516.767.7438 A PROFESSIONAL CORPORATION OF CERTIFIED PUBLIC ACCOUNTANTS www.sheehanepa.com March 4, 2015 To the Board of Fire Commissioners Fishers Island Fire District We have audited the Annual Financial Report Update Document (AUD) of Fishers Island Fire District (the District) for the year ended December 31, 2014. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter to you dated December 4, 2014. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the District are described in Note 1 to the AUD. No new accounting policies were adopted and the application of existing policies was not changed during 2014. We noted no transactions entered into by the District during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the AUD in the proper period. Accounting estimates are an integral part of the AUD prepared by management and are based on management's 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 AUD and because of the possibility that future events affecting them may differ significantly from those expected. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. An Independent Member of BDO Alliance USA To the Board of Fire Commissioners Fishers Island Fire District March 4, 2015 Page 2 Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting or auditing matter, whether or not resolved to our satisfaction that could be significant to the AUD or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated March 4, 2015. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants concerning auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's AUD or a determination of the type of auditor's opinion that may be expressed on that AUD, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year, prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER MATTERS Grant Revenues It was noted during the audit that grant revenues were recorded net against the related grant expenditures. To maintain compliance with reporting requirements, we .recommend that all grant revenue received be recorded in the proper revenue account, rather than netting with the corresponding expenditure. To the Board of Fire Commissioners Fishers Island Fire District March 4, 2015 Page 3 Transfers to / from the Reserve Funds It was noted, during the current year audit, that the District transferred $34,770 from the Building Repair and Renovations Reserve Fund to the General Fund. Such transfer was not documented in the 2014 Board minutes. All transfers to and from the reserve funds should be Board approved and documented in the Board minutes to evidence such approval. We are pleased to report that the January 12, 2015 Board minutes properly included an approval to transfer $61,631 from the Building Repair and Renovations Reserve Fund to the General Fund. We wish to express our appreciation for the courtesies extended to our staff during the audit and we would be pleased to discuss our comments and recommendations with the Board of Fire Commissioners. This information is intended solely for the use of the Fishers Island Fire District's Board of Fire Commissioners and management and is not intended to be and should not be used by anyone other than these specified parties. Brightwaters, New York March 4, 2015 Sheehan