ELDO J. WALL, C. P. A. L. NEIL SMITH, C. P.A. PAUL V. BATEMAN, C. P. A. MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
WALL,
SM
1TH, BATEMAN AND ASSOCIATES,I
NC CERTIFIED PUBLIC ACCOUNTANTSDAVID L. YOUNG, C. P.A.
Board of Directors Land Rights Council
Chama, CO 81126 Gentlemen: 410 ROSS AVENUE ALAMOSA, COLORADO 81101 TELEPHONE 589-3619 December 8, 1980
MONTE VISTA, COLORADO ALAMOSA,COLORADO
This will confirm our understanding of the arrangements for our examination
of the financial statements of the following: Land Rights Council Grant
78-734 and CETA - On the Job Training (OJT) contracts for the year ending
October 31, 1979 and Land Rights Council Grant 79-D-18-03, CETA - On the Job
Training (OJT) contracts and Funding Raising account for the year ending October 31, 1980.
We will examine the Council's balance sheet at October 31, 1980, and the related statements of income, retained earnings, and changes in financial position for the year then ended, for the purpose of expressing an opinion
on them. Our examination will be made in accordance with generally accepted
auditing standards and accordingly, will include such tests of the accounting records and such other auditing procedures as we consider necessary in the circumstances.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical evidence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected customers, creditors, legal
counsel and banks. At the conclusion of our examination, we will request
certain written representations from you about the financial statements and matters related thereto.
All tests are based on the documentation maintained by Land Rights Council. At the minimum, we ask the Organization maintain a journal for disbursements, documentation for disbursements, ledger of all accounts, trial balances, bank statements and bank reconciliations.
Our engagement is subject to the inherent risk that material errors, irregu-larities, or illegal acts, including fraud or defalcations, if they exist,
will not be detected. However, we will inform you of any such matters that
Board of Directors December 8, 1980 2
The objective of our examination is the expression of an unqualified opinion of the various funds of Land Rights Council, dependent on the facts and
circumstances at the date of our opinion. If our opinion will be other than
unqualified, the reasons therefore will be fully disclosed.
In addition, we will submit, as a normal part of our examination, a letter advising you of opportunities we have observed for economies in or improved
internal control over your operations. It is our practice to prepare a
letter bringing such matters to the attention of the appropriate level of management.
We are, of course, available to assist you in other areas that might arise.
Our estimate of the fee necessary to complete the audit is about $1,500.00.
Our fees are based on the amount of time required at various levels of
responsibility. We will notify you immediately of any circumstances we
encounter which could significantly affect the amount of time needed to complete the examination and discuss these matters with you before
under-taking additional work. In addition, should the actual time be less than
our estimates, the audit fee will be correspondingly less.
Our fee for these services will be at our regular per diem rates, plus travel
and other out-of-pocket costs. Invoices will be rendered.
If the foregoing is in accordance with your understanding, please sign and return to us the duplicate copy of this letter.
We very much appreciate the opportunity to serve you and trust that our
association will be a long and pleasant one.
Very truly yours,
WALL, SMITH, BATEMAN and ASSOCIATES, INC.
dkm
enclosure
Accepted by: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Date: Title:
