HomeMy WebLinkAboutAudit Report 4.20.2006.PDFJohn H. Dietershagen, C.P.A.
Jerry E. Mickelson, C.P.A.
Thomas K. Van Dezee, C.P.A.
Debbie Conley Jordan, G,P.A.
Patrick S. Jordan, C.P.A.
Duane ll. Shoen, C.P.A.
Lesley l-. Horner, C.P.A.
D. Leslire Spurgin, C.P.A.
Frederick J. Ciaschi, C.P.A.
John E. Little. C.P.A.
Ciaschi . Dietershagen . Little . Mickelson
& Company, LLP
Certified Public Accountants and Consultants
Mayor and Village Trustees
Village of Cayuga Heights
Ithaca. New York
We have audited the financial statements of the Village of Cayuga Heights for the year ended May 31 ,2005,
an<J have issued our report thereon dated April 20,2006. Professional standards require that we provide you
witlh the following information related to our audit.
9gr Responsibilitv Under U.S. Generallv Accepted Auditinq Standards and Government Auditinq Standards
As stated in our engagement letter, our responsibility, as described by professional standards, is to plan and
peform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of
material misstatement and are fairly presented in accordance with accounting principles generally accepted in
the United States of America. Because an audit is designed to provide reasonable, but not absolute assurance,
an<l because we did not perform a detailed examination of all transactions, there is a risk that material
mis;statements may exist and not be detected by us.
As part of our audit, we considered the internal control of the Village of Cayuga Heights. Such
considerations were solely for the purpose of determining our audit procedures and not to provide any
assiurance concerning such internal control.
As part of obtaining reasonable assurance about whether the financial statements are free of material
mis;statement, we performed tests of the Village of Cayuga Heights compliance with certain provisions of laws,
regulations, contracts, and grants, noncompliance. However, the objective of our tests was not to provide an
opinion on compliance with such provisions.
$jgnifi cant Accountins Policies
Management is responsible for the selection and use of appropriate accounting policies. In accordance with
the terms of our engagement letter, we will advise management about the appropriateness of accounting policies
ancl their application. The significant accounting policies used by the Village of Cayuga Heights are described in
Note 1 to the financial statements.
As described in Note 3 to the financial statements, the Village of Cayuga Heights changed accounting
pollcies related to adopting Statement of GovernmentalAccounting Standards (GASB Statement) No. 34, "Basic
Financial Statements - and Management's Discussion and Analysis - for State and Local Governments," as
am,ended by GASB Statements Nos. 37 and 38 and GASB Interpretation No. 6.
CORTLAND ITHACA WATKINS GLEN
39 Church Street
Oortland, New York 13045
607-753-7439
fax 607-753-7874
401 East State Street - Suite 500
Ithaca, NewYork 14850
607-272-4444
fax 607-273-8372
www.cdlm.com
108 West Fourth Street
Watkins Glen, New York 14891
607-535-4443
fax 607-535-6220
Accounting Estimates
Accounting estimates are an integral part of the financial statements 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 basic
financial statements and because of the possibility that future events affecting them may differ significantly from
those expected. The most sensitive estimates affecting the financial statements were accrued liabilities, and
depreciation expense.
Management's estimates are based on various assumptions. We evaluated the key factors and
assumptions used to develop these estimates in determining that they are reasonable in relation to the financial
statements taken as a whole.
Audit Adiustments
For purposes of this letter, professional standards define an audit adjustment as a proposed correction of
ther basic financial statements that, in our judgment, may not have been detected except through our auditing
procedures. An audit adjustment may or may not indicate matters that could have a significant effect on The
Village of Cayuga Heights financial process (that is, cause future financial statements to be materially
mis;stated). In our judgment, none of the adjustments we proposed, whether recorded or unrecorded by the
Village, either individually or in the aggregate, indicate matters that could have a significant effect on the Village's
financial reporting process
Dis;agreements with Manaqement
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that
could be significant to the financial statements or the auditor's report. We are pleased to report that no such
disagreements arose during the course of our audit.
Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. lf a consultation involves application of an
acc;ounting principle to the Village of Cayuga Heights' financial statements or a determination of the type of
auditor's opinion that may be expressed on those statements, our professional standards require the consulting
acc;ountant 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.
lssues Discussed Prior to Retention of Independent Auditors
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 Village of Cayuga Heights's auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
DifFiculties Encountered in Performinq the Audit
We encountered no significant difficulties in dealing with management in performing our audit.
We would like to thank you and your staff for the cooperation and support given us during the course of the
auclit. We appreciate the opportunity to be of service to you and look forward to our continued involvement.
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This report is intended solely for the information and use of the Board of Trustees, management, pass-
through entities including the Village and is not intended to be and should not be used by anyone other than
these specified parties.
t;*r,l, fofrr4, LH/*, ill /,th', /om, Ltf
Apnil20,2006
Ithaca. New York
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