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Cayuga County Development Corporation – CCDC FY 2017 Independent Financial Audit: Management Letter CCDC FY2017 FINANCIAL AUDIT: Management Letter Page 1 Cayuga County Development Corporation FY 2017 AUDIT AUDIT MANAGEMENT LETTER ---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 To the Board of Directors Cayuga County Development Corporation 160 Genesee Street, 5th Floor Auburn, New York 13021 In planning and performing our audit of the financial statements of Cayuga County Development Corporation as of and for the year ended December 31, 2017, in accordance with auditing standards generally accepted in the United States of America, we considered Cayuga County Development Corporation’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances 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 Organization’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control that we consider to be significant deficiencies. 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 a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the Organization’s financial statements will not be prevented, or detected and corrected, on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. 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. We consider the deficiencies listed on the following page, in Cayuga County Development Corporation’s internal control to be significant deficiencies. This communication is intended solely for the information and use of management, the Board of Directors, and others within the Organization, and is not intended to be, and should not be, used by anyone other than these specified parties. Respectfully Submitted, Cuddy & Ward, LLP Certified Public Accountants Auburn, New York February 2, 2018 ---PAGE BREAK--- Cayuga County Development Corporation, Inc. Memorandum of Significant Deficiencies December 31, 2017 1. Preparation of Financial Statements Under current accounting standards, it is considered an internal control deficiency if the Organization cannot prepare its financial statements, including full footnote disclosures. Currently, the Organization does not have staff with the expertise to prepare the financial statements. The Organization is aware of this issue and feels that it is not cost effective to have this control in place and will continue to rely on the auditor prepared financial statements.