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Home My WebLink About2011 Management Representation Letter.pdf March 6, 2012 Ciaschi, Dietershagen, Little, Mickelson and Company, LLP 401 East State Street Suite 500 Ithaca, New York 14850 We are providing this letter in connection with your audit of the financial statements of the Village of Cayuga Heights (the Village) as of May 31, 2011 and for the year then ended for the purpose of expressing opinions as to whether the financial statements present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Village and the respective changes in financial position in conformity with U.S. generally accepted accounting principles. We confirm that we are responsible for the fair presentation of the previously mentioned financial statements in conformity with U.S. generally accepted accounting principles. We are also responsible for adopting sound accounting policies, establishing a nd maintaining effective internal control over financial reporting, and preventing and detecting fraud. We confirm, to the best of our knowledge and belief, as of March 6, 2012 the following representations made to you during your audit. 1. The financial statements referred to above are fairly presented in conformity with U.S. generally accepted accounting principles and include all properly classified funds and other financial information of the primary government and all component units required by generally accepted accounting principles to be included in the financial reporting entity. 2. We have made available to you all: a. Financial records and related data. b. Minutes of meetings of the Village Board of Trustees or summaries of actions of recent meetings for which minutes have not yet been prepared. 3. There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 4. There are no material transactions that have not been properly recor ded in the accounting records underlying the financial statements. 5. There are no uncorrected misstatements that are material, either individually or in the aggregate, to the financial statements for each opinion unit. 6. We acknowledge our responsibility for the design and implementation of programs and controls to prevent and detect fraud. 7. We have no knowledge of any fraud or suspected fraud affecting the entity involving: a. Management, b. Employees who have significant roles in internal control, or c. Others where the fraud could have a material effect on the financial statements. 8. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, analysts, regulators, or others. 9. We have a process to track the status of audit findings and recommendations. 10. We have identified to you any previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. 11. We have provided our views on reported findings, conclusions, and recommendations, as well as our planned corrective actions, for the report. 12. The Village has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or equity. 13. The following, if any, have been properly recorded or disclosed in the financial statements: a. Related party transactions, including revenues, expenditures/expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties. b. Guarantees, whether written or oral, under which the Village is contingently liable. c. All accounting estimates that could be material to the financial statements, including the key factors and significant assumptions underlying those estimates and measurements. We believe the estimates and measurements are reasonable in the circumstances, consistently applied, and adequately disclosed. 14. We are responsible for compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to us, including tax or debt limits and debt contracts; and we have identified and disclosed to you all laws, regulations and provisions of contracts and grant agreements that we believe have a direct and material effect on the determination of financial statement amounts or other financial data significant to the audit objectives, including legal and contractual provisions for reporting specific activities in separate funds. 15. There are no: a. Violations or possible violations of budget ordinances, laws and regulations (including those pertaining to adopting, approving, and amending budgets), provisions of contracts and grant agreements, tax or debt limits, and any related debt covenants whose effects sh ould be considered for disclosure in the financial statements, or as a basis for recording a loss contingency, or for reporting on noncompliance. b. Unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 450, Contingencies (formerly Statement of Financial Accounting Standards (SFAS) No. 5, Accounting for Contingencies). c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by FASB ASC 450, Contingencies (formerly SFAS No. 5, Accounting for Contingencies). d. Reservations or designation of fund equity that were not properly authorized and approved. 16. As part of your audit, you assisted with preparation of the financial statements and related notes . We have designated an individual with suitable skill, knowledge, or experience to oversee your services and have made all management decisions and performed all management functions. We have reviewed, approved, and accepted responsibility for those financial statements and related notes. 17. The Village has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. 18. The Village has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 19. We have followed all applicable laws and regulations in adopting, approvin g, and amending budgets. 20. The financial statements include all component units as well as joint ventures with an equity interest, and properly disclose all other joint ventures and other related organizations. 21. The financial statements properly classify all funds and activities. 22. All funds that meet the quantitative criteria in Government Auditing Standards Board (GASB) Statements Number 34 and 37 for presentation as major are identified and presented as such and all other funds that are presented as major are particularly important to financial statement users. 23. Net asset components (invested in capital assets, net of related debt; restricted and unrestricted) and equity amounts are properly classified and, if applicable, approved. 24. Provisions for uncollectible receivables have been properly identified and recorded. 25. Expenses have been appropriately classified in or allocated to functions and programs in the Statement of Activities, and allocations have been made on a reasonable basis. 26. Revenues are appropriately classified in the Statement of Activities within program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. 27. Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported. 28. Deposits and investment securities are properly classified as to risk, and investments are properly valued. 29. Capital assets, including infrastructure assets, are properly capitalized, reported, and, if applicable, depreciated. 30. We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured and presented within prescribed guidelines and the methods of measurement and presentation have not changed from those used in the prior period. We have disclosed to you any significant assumptions and interpretations underlying the measurement and presentation of the RSI. 31. No events, including instances of noncompliance, have occurred subsequent to the balance sheet date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements. Signed: Signed: Title: Title: