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lndependent Auditors Report on Communication of lnternal Control Matters ldentified in the Audit

The Honorable Supervisor and Members of the Town Board Town of Hyde Park 4383 Albany Post Road Hyde Park, NY 12538

ln planning and performing our audit of the basic financial statements of the Town of Hyde Park, New York ("Town") as of and for the year ended December 31, 2009, in accordance with auditing standards generally accepted in the United States of America, we considered the Town's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control.

We have included in this letter a summary of communications with the Town Supervisor and Members of the Town Board as required by generally accepted auditing standards. We are also required to communicate any control deficiencies we identified during the audit and determined to be significant deficiencies or material weaknesses. This communication is a requirement of the new Statement on Auditing Standards (SAS) 115:
Communicating lnternal Control Related Matters ldentified in an Audit.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose of conducting your Town's audit and was not designed to identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses, and therefore, there can be no assurance that all such deficiencies have been identified. However, as discussed below, we identified certain deficiencies in internal control that we consider to be material weaknesses and others to be control deficiencies.

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