Agenda - Council - 10/25/1994 - Laserfiche WebLink

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0CT-17-199~ 1~:23 MKR & CO P.A. 612 5~5 ~569 Ransey Fire Relief Association October 17, I934 Page 2 An audit incMdes examining, on a test basis, evidence ~pporting the amounts and disclosures in the financ~ statements; therefore, our audit will involve judgment about the number of tramactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whethex the financial statements are free of nmte~'al misstatement. However, because of the concept of reasonable assurance and because we will not perform a detailed examirmtion of all transactions, there ks a risk that material errors, irregu'larkies, or illegal ac-ts, including fraud or defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periockq for which we are not engaged a,s auditors. We understand that you will provide us with the basic infarmation required for our audit and. that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statement.q, but the responsibility for the financial statements ~emains with you. This responsibility includes thc maintenance of adequate recorckq and related internal control structure policies, thc selection and application of accounting principles, and the safeguarding of a.ssetq. The assistance to be supplied by your personnel, including the preparation of schedules and analyses of accounm, typing all cash or other confirmations we request, and locating any invoices selected by us for testing, will be discussed and coordinated with you. Our audit is nat specifically designed and cannot be relied on to disclose reportable cortdit/ons, that is, significant deficiencies in the design or operatitm of the internal c~trol structure. However, during t_he audit, if we become aware of such reportable conditions or ways that we believe management practices can be improved, we will communicate them to you in a separate letter. We wLU also prepare the Association's Annu',d Federal Return of Organizations Exempt From Income. Tax (Form 990) and the State of Minnesota Annual Financ. ial Report.. Our fees for these services wil2 be based on the a¢tual time spent ar our standard hourly rates, plus travel and other out-of-pocket costs such as report production, typing, postage, etc. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses a.c,d .are payable upon presel~tation. Our fee for th= indLeated services will not exceed $1,200 unless unexpected circumstances are encountered -- at which point we would discuss additional services and fees with you before proceeding. If you intend to publi.qh or otherwise reproduce the fmanci',d statements and make reference t~ our Firm name, you agree to provide us with printers' proofs or masters 'for our review and approval before prinfiag. You also agree to provide us with. a copy of the final reprortuc, ed material for oar approvat bet'ore it is distributed.