Airport Management Rep Letter

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Airport Management Rep Letter Powered By Docstoc
					                                                Telephone: 772-288-5430
                                                      Fax: 772-288-5432
                                                     Email: tkryzda@martin.fl.us

February 22, 2007



Cherry, Bekaert & Holland, L.L.P.
800 North Magnolia Avenue
Suite 1300
Orlando, Florida 32803

Ladies and Gentlemen:

We are providing this letter in connection with your audits of the financial statements of
the Martin County Florida Airport (the “Airport”), an enterprise fund of Martin County,
Florida. The purpose of your audits is to express an opinion as to whether the financial
statements referred to above present fairly, in all material respects, the financial
position of the Airport as of September 30, 2006, and 2005, and the changes in its
financial position and its cash flows for the years then ended in conformity with
accounting principles generally accepted in the United States of America.

We confirm that we have reviewed and approved the financial statements referred to
above; we confirm that we are responsible for their fair presentation in conformity with
accounting principles generally accepted in the United States of America; and we
acknowledge your role as auditors in connection with the financial statements. We are
also responsible for adopting sound accounting policies, establishing and maintaining
internal control, and preventing and detecting fraud.

Certain representations in this letter are described as being limited to matters that are
material. Items are considered to be material, regardless of size, if they involve an
omission or misstatement of accounting information that, in light of the surrounding
circumstances, makes it probable that the judgment of a reasonable person relying on
the information would be changed or influenced by the omission or misstatement. An
omission or misstatement that is monetarily small in amount could be considered
material as a result of qualitative factors.

We confirm, to the best of our knowledge and belief, as of the date of this letter the
following representations made to you during your audits:

1. The financial statements referred to above are fairly presented in conformity with
   accounting principles generally accepted in the United States of America and
   include all financial information required by accounting principles generally
   accepted in the United States of America to be included in the financial reporting
   entity.

2. We have made available to you all financial records and related data.

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 recorded in the accounting
   records underlying the financial statements. Any adjusting entries for the years ended
   September 30, 2006, and 2005, which have been proposed by you, are approved by us and
   recorded on the financial statements.

5. We acknowledge our responsibility for the design and implementation of programs and
   controls to prevent and detect fraud.

6. We have no knowledge of any fraud or suspected fraud affecting the Airport 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.

7. We have no knowledge of any allegations of fraud or suspected fraud affecting the Airport
   received in communications from employees, former employees, regulators or others.

8. We have no plans or intentions that may materially affect the carrying value or classification
   of assets or liabilities.

9. Receivables recorded in the financial statements represent valid claims against debtors for
   transactions arising on or before the statement of net asset date and have been
   appropriately reduced to their estimated net realizable value. Provisions for uncollectible
   receivables have been properly identified and recorded.

10. Provision, when material, has been made to reduce excess or obsolete inventories to their
    estimated net realizable value.

11. Related party transactions and related amounts receivable or payable, including sales,
    purchases, loans, transfers, leasing arrangements, and guarantees have been properly
    recorded and disclosed in the financial statements.

   For purposes of this letter, we understand the following to be the definition of the term
   related party:

       Affiliates of the Airport; entities for which investments are accounted for by the equity
       method by the Airport; trusts for the benefit of employees, such as pension and
       profit-sharing trusts that are managed by or under the trusteeship of management;
       principal owners of the Airport; its management; members of the immediate families of
       principal owners of the Airport and its management; and other parties with which the
       Airport may deal if one party controls or can significantly influence the management or
       operating policies of the other to an extent that one of the transacting parties might be
       prevented from fully pursuing its own separate interests. Another party also is a related
       party if it can significantly influence the management or operating policies of the
       transacting parties or if it has an ownership interest in one of the transacting parties and
       can significantly influence the other to an extent that one or more of the transacting
       parties might be prevented from fully pursuing its own separate interests.

12. There are no guarantees, whether written or oral, under which the Airport is contingently
    liable.

13. The financial statements contain disclosures about significant estimates and material
    concentrations known to management that are required to be disclosed in accordance with
    the AICPA Statement of Position 94-6, Disclosure of Certain Significant Risks and
   Uncertainties. We believe these estimates, including the key factors and significant
   assumptions underlying those estimates, are reasonable in the circumstances.

       Significant estimates are estimates at the statement of net asset date which could
       change materially within the next year. Concentration refers to volumes of business,
       revenues, available sources of supply, markets, or geographic areas for which events
       could occur which would significantly disrupt normal finances within the next year.

14. 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 agreements, tax or debt limits, and any related debt covenants, whose effects
      should be considered for disclosure in the financial statements or as a basis for
      recording a loss contingency.

   b. Unasserted claims or assessments that our lawyers have advised us are probable of
      assertion and must be disclosed in the financial statements in accordance with
      Statement of Financial Accounting Standards No. 5, Accounting for Contingencies.

   c. Other material liabilities or gain or loss contingencies that are required to be accrued or
      disclosed by Statement of Financial Accounting Standards No. 5.

15. The Airport 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.

16. The Airport has complied with all aspects of contractual agreements that would have a
    material effect on the financial statements in the event of noncompliance.

17. Management has identified and disclosed to the auditor violations (and possible violations)
    of laws, regulations, and provisions of contracts and grant agreements with effects that
    should be considered for disclosure in the financial statements or as a basis for recording a
    loss contingency.

18. Management is responsible for compliance with laws, regulations, and provisions of
    contracts and grant agreements applicable to the Airport.

19. Management has identified and disclosed to the auditor all laws, regulations and provisions
    of contracts and grant agreements that could have a direct and material effect on the
    determination of financial statement amounts, including legal and contractual provisions for
    reporting specific activities in separate funds.

20. Management is responsible for establishing and maintaining effective internal control over
    financial reporting.

21. Deposit and investment risk disclosures accurately present the Airport’s policies and
    applicable deposit and investment risks prescribed for disclosure by GASB 40, Deposit and
    Investment Risk Disclosures.

22. Management has followed applicable laws and regulations in adopting, approving, and
    amending budgets.
                                            adm2007L187.doc
23. With regard to presentation of the financial statements in accordance with GASB 34:

   a. Capital assets are properly capitalized, reported, and, if applicable, depreciated.

   b. Net asset components (invested in capital assets, net of related debt; restricted; and
      unrestricted) are properly classified and, if applicable, approved.

   c. Interfund, internal, and intra-entity activity and balances have been appropriately
      classified and reported.


24. We believe that the effects of the uncorrected financial statement misstatements
    summarized in the accompanying schedule are immaterial, both individually and in the
    aggregate, to the financial statements.

Further, we confirm to the best of our knowledge and belief that there have been no events that
have occurred subsequent to September 30, 2006, and through the date of this letter that would
require adjustment to or disclosure in the aforementioned financial statements.

Sincerely,



________________________________________
Taryn Kryzda
Assistant County Administrator



________________________________________
Jo Hempel, C.G.F.O.
Accounting Manager




                                            adm2007L187.doc
Summary of Uncorrected Financial Statement Misstatements

                                                           Effe ct of Curre nt Ye a r Diffe re nce s
Entry Num be r            De scription           Asse ts         Lia bilitie s     Equity           Incom e

                To correct A/R balance
              1 previously received
                General/Administrative Expense                                                        33,134
                   Accounts Receivable             (33,134)




Subtotals                                          (33,134)                 0              0          33,134


Net effect of prior year differences                       0                0              0                  0

Net effect on financial statements                 (33,134)                 0              0          33,134




                                             adm2007L187.doc