Mr. Tom Burns
Sublette County SD # 1
P.O. Box 549
Pinedale, WY 82941-0549
Dear Mr. Tom Burns and Board of Trustee
Members,
This
will confirm the understanding between you and our firm concerning applying the
agreed-upon procedures for the specified components of the accounting records
of Sublette County SD # 1, Wyoming for
the fiscal year ended June 30, 2000.
1.
Components
The specific components are found in Attachment 1
and are in the order in which they are to be tested using the agreed-upon procedures noted in # 2 below.
They have been specified by the District
and the Legislative Service Office of the Wyoming Legislature.
2. Agreed-upon procedures
The
agreed-upon procedures for each specified component of the accounting records
as of June 30, 2000 and for the fiscal year ended June 30, 2000 are found in
Attachment 2. Attachments 1 and 2 are
incorporated by reference into this engagement letter.
This
engagement to apply agreed-upon procedures will be performed in accordance with
standards established by the American Institute of Certified Public Accountants
(AICPA). On or before December 1, 2000, we will report to you, in the format
prescribed by the Legislative Service Office, our findings from the procedures
performed. Our failure to file the
agreed upon procedures report on or before the December 1 deadline will result
in liquidated damages calculated by reducing by ten percent (10%) the amount
stated in # 4 below.
We
will not express an opinion on our findings. Performance of the procedures for
each of the components shall not constitute an audit in accordance with
generally accepted auditing standards. You understand further that the
procedures performed are not sufficient or adequate to allow us to express an
opinion on the financial statements of Sublette
County SD # 1, Wyoming for the year ending June 30, 2000.
Although
fraud, defalcation, errors, irregularities, or illegal acts may occasionally be
disclosed by this type of engagement, it is not designed for this purpose, and
should not be relied on to disclose fraud, should any exist. We are not
performing a special or detailed investigation to detect embezzlement. We will,
of course, report to you anything that appears to us during our engagement to
be unusual or abnormal.
3. Liability and Damages
Sublette County SD # 1, Wyoming and Mortenson,
Stevens & Company agree that Mortenson,
Stevens & Company’s liability hereunder for damage, regardless of the
form of action, shall not exceed the total amount paid for the services
provided under this engagement letter. Except as otherwise provided in this
section, this shall be the exclusive remedy of Sublette County SD # 1, Wyoming.
In
no event, will Mortenson, Stevens &
Company, be liable for consequential damage, even if Mortenson, Stevens & Company has been advised of the
possibility of such damages. Sublette
County SD # 1, Wyoming and Mortenson,
Stevens & Company further agree that Mortenson, Stevens & Company will not be liable for any lost
revenue, or for any claim or demand against Sublette County SD # 1, Wyoming by any other party. Mortenson, Stevens & Company does
not make any express or implied warranties, including, but not limited to, the
implied warranties of merchantability and fitness for a particular purpose.
No
action, regardless of form, arising out of the services under this engagement
letter, may be brought by either party more than one year after the cause of
action has accrued, except that an action for non-payment may be brought within
one year of the date of last payment.
Regardless
of any other terms in this engagement, Mortenson,
Stevens & Company shall be liable for liquidated damages.
4. Fees and Expenses
Our
fees for our services under this engagement will be no greater than
$_____________.00, ___________dollars and no cents, (Please contact your
district for the dollar amount to insert.) inclusive of our
out-of-pocket expenses for meals, lodging, travel, and copies related to this
engagement. Our invoice separately will state: 1) The fees for our services; 2)
Our out-of-pocket expenses in performing those services and 3) For each
separate component listed in Attachment 1, number of hours required to complete
the agreed-upon procedures for the component and total number of hours to
complete all components. Our failure to
itemize separately fees for our services, our out of pocket expenses and hours
required to complete procedures for each component will result in liquidated
damages determined by reducing by five percent (5%) the amount stated in this
section. If possible, we will perform the agreed-upon procedures in conjunction
with any annual or other school audit we may perform for you in order to
minimize out-of-pocket expenses; we further agree to allocate reasonably the
expenses for performance of the agreed-upon procedures with any other work we
may be performing for you simultaneously while on-site. In the event we
accomplish the agreed-upon procedures, inclusive of our out-of-pocket expenses
incurred in performing the procedures, for less than the amount stated in this
section, we will bill you only for that lesser amount.
5. Notification
We will give our best professional effort to
accomplish the agreed-upon procedures, inclusive of our out-of-pocket expenses
incurred in performing the procedures, for the amount stated in # 4 above.
However, we understand there are limited resources to pay for our services and
expenses, therefore and in order that we do not perform services, including
related expenses, requiring payment beyond the limited resources, we agree to
notify you and René LaBare, Manager, School Finance Audit, Wyoming Legislative
Service Office by voice, facsimile or electronic mail at the earliest point in
our work, when in our professional opinion, we reasonably believe that we
cannot complete the agreed-upon procedures, including related expenses, for the
amount stated in # 4 above. Our notification will include an explanation of
why, in our professional opinion, the agreed-upon procedures, including related
expenses, cannot be completed for the amount stated. In good faith, we will
negotiate a resolution. You agree to
pay for our services and out-of pocket expenses up to the time we provide notice,
but the sum of the amount for our services and out-of-pocket expenses shall not
exceed the amount stated in # 4 above.
We
further agree that in no event will we be permitted to provide notification
under this section after October 15, 2000.
Our failure to follow the procedure established in this section will
result in liquidated damages calculated by reducing by ten percent (10%) the
amount stated in # 4 above.
6. Final Report
Our
final report on the results of the agreed-upon procedures, under SAS 87, will
be restricted to use by the parties to this engagement and should not be used
by anyone other than these specified parties.
Under Wyoming law, our report on the results of the agreed upon
procedures is a matter of public record and its distribution is not limited. We
agree to preserve and maintain all
documents, reports, records, field notes, materials, and data of any kind
resulting from performance of this engagement for a period of three (3) years
and to provide you or any State Agency, including, but not limited to, the
Legislative Service Office, or any representative of you or a State Agency,
access thereto.
7. Restrictions on Communication
The restrictions on communication contained in this
section apply until acceptance of our final report, and not thereafter. In
performing our responsibilities under this engagement, we agree to obtain your
approval in advance with respect to all communications with legislators and all
other Wyoming state and local government officials subject to the terms of the
contract into which this agreement is incorporated by reference. We will not
communicate with the media or any other member of the public with respect to
the performance of this engagement without prior approval, as provided in the
contract into which this agreement is incorporated by reference, except to
acknowledge that a contract with you for the performance of the agreed-upon
procedures does exist. For violation of this provision, we agree you reserve
the right to terminate the engagement.
8. Agreement,
Signature and Distribution
We are pleased to have this opportunity to serve you.
Three (3) originals of this engagement letter are enclosed. If this letter is in accordance with your
understanding of the arrangements, please:
1.
Sign, fill in the title of the
signatory and date one of the originals and return it to us.
2.
Sign, fill in the title of the
signatory and date the second original and return it to the Legislative
Services Office.
3.
Keep a signed and dated
original for your records.
Cordially
yours,
Mortenson,
Stevens & Company
Certified
Public Accountants
RESPONSE:
This letter correctly sets
forth the understanding of Sublette
County SD # 1, Wyoming and Mortenson,
Stevens & Company.
Sublette County SD # 1, Wyoming
By:___________________________
Title:__________________________
Date:__________________________
ATTACHMENT 1
Appendix A
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Appendix B
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Appendix C
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Randomly Selected Components:
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Selected
for Testing - Appendix D |
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5.
Small Schools
Components:
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Utilities:
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Selected
for Testing - Appendix E -- D. 1. & 2. A. |
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Activities: |
N/A |
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Food Service: |
N/A |
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6.
District Specific – Technical Components: |
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Extra Teacher Compensation |
N/A |
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Limited English Proficient (LEP) |
N/A |
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Economically Disadvantaged Youth (EDY) |
N/A |
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Special Tuition |
N/A |
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Maintenance & Isolation |
N/A |