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Cayuga County Development Corporation – CCDC FY2017 Audited Financial Statements: Audit Report on Internal Controls CCDC Audited Financial Statements FY2017 I Audit Report on Internal Controls Page 1 Cayuga County Development Corporation FY 2017 Audited Financial Statements Audit Report on Internal Controls Introduction The Cayuga County Development Corporation (CCDC) annually conducts an independent financial audit. The FY17 CCDC Annual Independent Financial Audit looked closely at the finance, internal controls and investments of the CCDC and reported its findings in the CCDC financial audit report. The FY2017 Audit Report on Internal Controls over Financial Reporting is presented herein. ---PAGE BREAK--- CUDDY & WARD, LLP Certified Public Accountants 110 GENESEE STREET - SUITE 230 AUBURN, NEW YORK 13021 PHONE [PHONE REDACTED] FAX [PHONE REDACTED] WWW.CUDDYANDWARDCPA.COM PAUL L. CUDDY, CPA RICHARD L. BEAUCHINE, CPA, MST RICHARD D. WARD, CPA FRANK L. DEROSA, CPA CMC February 2, 2018 Board of Directors Cayuga County Development Corporation 160 Genesee Street, 5th Floor Auburn, New York 13021 We have audited the financial statements of Cayuga County Development Corporation for the year ended December 31, 2017, and have issued our report thereon dated February 2, 2018. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 28, 2017. 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 Cayuga County Development Corporation are described in Note A to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2017. We noted no transactions entered into by the Organization during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. 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 financial statements and because of the possibility that future events affecting them may differ significantly from those expected. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The financial statement disclosures are neutral, consistent, and clear. 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 misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. 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 financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. ---PAGE BREAK--- Management Representations We have requested certain representations from management that are included in the management representation letter dated February 2, 2018. Management 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. If a consultation involves application of an accounting principle to the Organization’s 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 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 Organization’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 With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with U.S. generally accepted accounting principles, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. This information is intended solely for the use of the Board of Directors of Cayuga County Development Corporation and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Cuddy & Ward, LLP Certified Public Accountants