2002-06-03
Sedore & COj1Z~1Jany
Cettified Public ACCO!l1ltatltS, PC
POlIghl.npJic
~~..;.')) ./85-5.110
Jttlllt:'i L. Salon'. Jr. C.PA.
il!lId S. () S,;!lic{IJ!, C.PA.
Ji/llltJ F LeI(trio. .Ii:, c.P/1.
iin'JII /1. B({J:rdii, Cf'/1.
1.i!ldll M. H(//lllixa!l. CP/1.
Krmll T f!fIlIJtII. CPA.
Po. Box 918 . 62 East Naill Street. lHippi/lgCl:r Fa/I,; NY 12590
(845) 297-11J1 . Fax (845) 297-1432
wwwsedoreandcompany.com
lJearoll
(84.')) 831-0542
l\'t^JSVIfI)!:h
~\''';5) 56.')-1373
June 3, 2002
Joseph Ruggerio, SUlJerV1Sor
Town ofWappingei"
20 MiddleoJsh ~~~:.ad
Wappingers Falls, N.Y. 12590
We are pleased io confirm our understanding of the services we are to provicle The Tow": of
Wappinger Ie: th\; ye::r ended December 31, 2001. \Ve will audit the finar.ci2.1 statemelr~s of T:.e
Town of'Wappi:.1ge:- z:s of aL.d for the year ended :December 31, 2002. Vie 1.:i1derstand ti-1Z.t th
financ;al statt..l~C;~~." wIll be presented in accordanc~ "';lith the financid re:?c~-~:;lJ model in c":'~ec~
plior to~h~. desc~-ibe;i in C,....sB Statement No. 3<.
Audit Objecti-;:2s
The objective of our audit is the expression of an opinion as to whether your :1nancial statemer.ts
are fady presentee!, in all material respects, in corJ:cnnity with accounting pr:..cipies generally
accepted in the Uri:ed States of Arnerica and to r~pc:~ on the faimess oftr-.::i.dditional
infomiatiGn referr:;;:: to in the first paragraph wher;. considered in rela.~ion to ~;'-le financial
SIaterrien~$ t",ken '::s :i whole. Our audit wili be conC:ucted in accordance with :::uditing stanc.;.r;~.s
gener011v ~"cen~''''--'-. t"'e Uru;+"'''; Sj-~.es 0': Amen"c'-, c "'1d ~.1- '" st'''''dard<: !~or F.nc. ".~;~l a"d;t" ('o'....._:~ "d
U.U -' ,",v 'r''''"''U ....i.... ..J..i l."",U "t1,\".l ~ \04..1... ..~........ ~l .., 4-.1.U...i.\"-...Q. W J. ,:) '"' .1J.l..L.....;.J.<v
!in Government Auditing Standards, issued by the Comptroller General of the United States, :'one
will i..dude tests oL:-le accounting records of the Town of Wappinger and C't:1~r procedures \ve
consicer i1ecessa:-_~o enable us to express such an opinion. If our opinicr. ell the finallcial
.. t ""'1'''' :- ro""-" <- '^" n' l"fi a" '"1' full."'''' th n :,1- ,.' d . T' C'~_
s.a el,~C.l.S 1~, v...;;;, L..a.l un';.ua Ie, we Wl i y....;:,..-:.4::.8. e reaso,.s ~11lu YOu In a vance. ~') .'J~
.. ~o '.- T --0-''-0'1 +~.~,. ,..'a+ th ~'d:t~-r"" ~bl +.C', '^,'H"'~. tfi -]".-
"any 1 ea.~oCJ., Vie ",1... Uua.O e cV ",om!"...le le c:.U . "'" ,~_.. una. e..o .l.Or::1 or 1.........0 ormell ,,'i
1""\. . ~ " .,..~ "~r,TCT ~i_ ....1;."" .t'r_ ~,. ... :"",.~...... .;.-: 100 ,-:::''-;'- ~ i;' ",-,,",,:-'- ,-,.l-....thi ':"f-r",,.'-_r-,'-
Vpm.l.OI'., Vt<;... i.,(;.; ....;C........Le l-.; ...xp.ess an Oylllivn or .0..} ~ssu", a r"'}iu.1. a", a r..;"",.. v.l. S eng""gelU;:'.'~'
We will a:so prOVIG.; reports on internai control related to the financiai sta~e:nents and compi:z..:ce
with laws, re;ulat:ons, and the provisions or grant agreements, noncomplie.;,:c,:: vv'ith which could
have a ;,:.z.teria.: e:f:Ze~~ on the financial statements as :equired by Government Auditing Standards.
1
Man2.ge::..er~t R.:.>)onsibiiities
1\,f " r.-,"","'~":~ "'''~n -.~'bl .,.' r.> ..nbl' hi. rr ';. d 'j-;' ;.... .,.1 n+-.1 .;,-.-".f. 1'" ..."
l\l..la..a,"c"J.",... l~ .....::.._01>.)1 e ~or ...Sl.a IS TIc;,...n r..aln.31rung .nl-en.m CO...IO. ..../..1 ...or como IG.n~~
-.,1.1. - ....
,'tt... 1",. <: r '. .,' .'" 't..-.~,,, dt T, '~-l:::'l: thi Mn":-';':" p t' .,-'- ,,---1
Villi .c.R"" .egL.,;....C.~.::., con .;.......S, w'1 agreemen S. J.n...... .uw.ng S re;Spoi.."."'.....y, ....s Im...Les <.,L....
judgme;::.ts by LJ.,-r,agement are required to a3sess (he expected benefits a:-id related costs oft:.~
control':;. The objectives ofinteL1al control are tc provide m-";:;.~gement witi" reasonable, but l'.at
absolL:~e, assuranc~ that assets are safeguarded agab::.t loss from unauthorized use or disposi~ion,
that tr2.nsac~iJns are executed in r..ccordance with m"':':._3ement's authoriza~lcns and recorded
prope::y to pe:::nit the preparation offinancid statem-:nts in accodance wit;;. generally acce)td
accou~:~:ng principle,::.
Manz,sement is res::.onsible for making all financial re~ords and related imclT.:ation available tG":S.
vV' e uncerstand t:1:it YOl: will provide us with such information required for mlr audit ana that you
are responsible for '~he acc~racy and completeness of that information. Vle viill advise you c.bo~t
appropri2.te acco'Jnting pri.-.ciples and their applicatio:~ ai'1d will assist in tt.e ?reparation of your
financia.~ s~;::.te:..T1erlts, 'v..1t the responsibility for the financial statements remains with you. That
respor-sibby includes the establishment a..'1d maintenance of adequ<i~e' reco:C:s and effective
i.1ten:al :;ont::01 0\1:;:' financial reporting, the sdection ar.": application of acc)unting principles,
and the safegm::rciirJ.j of assets. Managemem: is res.Jonsioie for adj...sting tl~e fi:1anci?1 statemer.ts
to COIT:::'C~ ":.....:.cerial :-:isstatements and fo:' ~onfirming to us in the representc.tion letter that the
effects of ar1Y ...I-:': Jrrected misstatements aggregated by :'3 during the currer.t .;;ngagemem aL'::'
pertaining to~he ia~est peiiod preser:ted are iIThT..6.teri2.l, both individualiy ard ia the aggregate, to
the nn::'Ilci2.l sc..:te:-.:::er.ts takerl as a whole.
Audit: 2"~~'{j;ced.~lt~S - Gen~ta!
.A..n au.:~: incbcies exc.~l1ining, on a test basis, evidence supporting the ar.10ur:.ts and disclosur,;s in
the financial sta~;::.-::..ctJ.ts, therefore, our audit vlill involve judgement about t~"e number of
t ~~~"_'_""_"_,,~'-r' drdth n~ c'" t-,,,,,,? W' ;111'" ";,.._..E'" th 'd:""
ral1su\..cc.......'" C~ V'~ vAG.ITUne ",n e a.lea., LO oe c.;.;:,..i.o.... e WJ.i p a.l an... })CdVrm cat. h L.)
obtz..:i'. reas:mab:;:: :,)':her than J.bsolute ass...rmce about whether the finan.::ic.: statements are free of
. - . 't... d' fr ' B ,. . d" ':l
matenai L:..l;,,:;tc.~en::..e.i1t, w;:etller cause oyer:.:Jr or j, aue.. '- ecause arl audit IS eSlgnea to prOll' e
i reasoilfiole, ::'c:t EO: absolute assurance and cecause vl"e wi:: not perform a dr;tai:ed exami:ution of
all tra.iis.:ct:0~S, '~l-"c;re is a risk that materiz..l ..nisstatements (whether caused Lj error or fraud) or
illegd :.cts :.l.ay exi.:;t and 1""ot be detected by us. In addition, an audit is not iesigned to detec;,~
irnma:crial rcisst2.te::.ents, immaterial illegal acts, or iilega! act;; that do not L;;;.ve a direct effec': on
J;, the f:.-.z..:ciz.~ st.ite:..en::;. However, we will inform YO'':' of i411Y mat,;,..-ial e~TC.-S tllat come to c..:r
n+ten"-' .,~ ,'1' a-IY r~"ua' tt.~.., '~ome' to OU' .ott' ,"'nt:u'" r YFe Wl'l'l" nlSu'" l'"J:'OIT1'" ' ,,..,' ~f any l'lle-a' a~"~
a.L l.....diJ. ""'.4......... ;,.' """'...... U(..l,.~ ~ i .)... .. '-i... looI 1. u. rV (U ill l.A.:: u... v C, i ...,,1...:)
T.lat C ::,,:ae '~.: au: ::..:tention, ur.less dearly inconsequentia:.. OUf responsibiLj ,.s auditor:; is lir:aed
to the ..,x:r:.:J':: :;ov;;red by our audit and does noteA~end to matters that n~g:.~ arise during ar..y bter
De'';o'',c f~.- ,,,,ir'}' ,y..,c. 01"'''' ..u~+ eng"'ged as au";t".,..,
.;. ~J. ~..., .....'-1.... '"'V.l.U"""..... ,,\,.I ..,.I...."""".1J." a. U.1",VJi~.
Our 1)[CCC~'.:::c::; 'xili ir.ch.:de tests of documentar: evidence sUDPodng '~i1e~r:msactio::s r:;cc,c.:~::l
J. .,.i..il -
, h ., 'd ~". l' ~ ' , , d'
-n" -- o.~"~,,,,-;.; :... 1 .nry lrC'ue tes.ts ottr-e ',..rYS'C"i '~X1':"":>no'" c" w'v"'n""'''-''''' Q-a ,rect'
i! l.. t-: .....I...i...'v_.........__, _..... _ .........(1 ....a. 1 .... .J. if,.J~! A. ~ \;i Ioi........! \J J.. ........ \wl L.U... .......'u, all .U.
cors.....2:~::)n ofreGeivz.bles and certain other assets ~nd liabilities by cOfres;cndence with selec.d
ir.div~duals, cr,editcl's, and financial instituticns. \ve will request '.;/Litten rei)~-';se:lta~ions frO:l1 your
"
,
attorr:"3YS :.:: :jz.r~,",:(l~ engager;.ent, and they may bill you for respor.cEz:.g to f"ils inquiry. Att:"~e
conclus~on Oi.~ our aueit, we will also require certair: vi..::tten r~pres:;t~t,"~iG::s frc..:1 you about th:::
nnanci;:..l statel:1c:rts 2.~1d related rr~atters.
Identifyi:';,:,:; an,:: e::..~uring that the Town of Wappinger complies with 1;;.w3, regulz.tions, contracts,
wd az; ~c:;:ler~~3 is '~he responsibility of managemen.t. .t--s part of obtc.L-:ii12 reas.')nable assurance
'lbout wb::;~l:;,~..: ;....~ i1:.....anci,.l statements are free of TL3.:ericl misstateme:-it, we will perfo:7i1 tes'~s of
the Town ofVl:pr::;..g~r cornpliance with a;:.)licable l~ws and regulatlJ:2 ::.nd~he provisions of
contracts 2.:lCl ag::-ee;nents. However, the objective of our audit will i...:,t be to l::ovide an opirllJil
on overdl cc:npliarice and we will not express suer;. w" opinion,
.A",-ud:..: ?:':0~cd:.1r~~ - I:':lteit:i... = C"...'...~ro!
In. plam-':i1g a:":c ..~,,;;:-fo:r:nir.g our audit, we will consiC::er 6e internal c'Jntroi sufrlcient to plan t:...~
a:.rdit i:-~ 0:: ~\:~: tc -" 3'cermine the nature, timing, and exter"t of o'..lr ai.ldit::;Z lJ:.."occdures for the
~Xpr(;S3~~-:g c.'~~r c~:~:~.J~: Ofi Tl1e Town. of'Nappinge:~'.:; fi:1ancial stE.:ter:...etrt3.
"'Ne w:.... ob~2.i:: i7S.i. 1..mC:~rstanding oftne design oftL, ::.::levant controls aLe w::~ther they have been
Dlacec: :.,.., o:Jcratic;.-;" ar.d w~ ,;,rill assess control risk T.::sts of contro:.:;: :-La" be oerformed to tf~~;i:.
..l. .. .,J jj.
the effc'':;'i:.iv..;.;"ess cf certain controls that we consiC:.;: r;;levant to pr.ev'::i.:L'3 and detectins er:'Grs
z..r.d fn-..:d ",:e .uz.~erial to the :Enancial stateme::C3 ;.ne: to p::enr.1ti:"<:; z"..':: detecting
ffilsst2.~';;::.~::'.~s rr;:,-:.:Lir.o fi'c~: illegal acts fu'1d othe: :'..:J::1Co::-.pjance matters tha': have a Ci:-ect zLd
mater:L"~ ~:....-"~c :..;, tr...; -1nz.ncial statements. Our te:.:c:;, i:'performed, will be less in scope tl1an
wouk .::.c :-;ces:;J.:"-Y to render an opinion on intemcJ. control ~r:d, z.c::c:crc';...::Jy, :-..0 opinlcll will :e
expressz;d.
An a_c;t is ..:.t desig;:l.ed~o provide aSSllf",rlCe on i;Ltemal control or to :c~ntify reportable
condijcr.s. Ecrwever, we will inform the gover;ir...g 00dy or audit ccr:"':'T:.ittee of any matters
; 1:" ". :".~,,~1 ~~-+'"~; ,,~~ ;"" ooe'""afon tha" w' c~ -s:dp~ to be ~O'" H"-ble ....ondi..:~..,s "nd'~-
.nvo'\'.ub .n~;;ld...l \..o,",~.d vi ;;.,...._ ...:> l. . l. "" . I;: v... L ...1 . '"'.c _...;;. v. HV" ... 1;;.
stand::.:-::.:; . s.:s.tLsl:ec by .F...l11erican Institute of Ce~-~ified Public Accm;.ma""~s, Report::::':e
concLix.J ::1volve f.G.::(.:ers cor.:ung to our at:entiori i"elating to significam deficiencies in the d.::sig:.-.
) or operc.tior~:/:::-.:.:: lriterr.al control that, in cur juC:3e::-~en~, could adverse~y affect the entity's
abilitj.T to record, prGC~SS, SUr.cu111~rize, an.d report !It,z..ncial data. cor~sistent wit~ ::lle assc,rtic~-(s of'"
mana3er:le:--L~ :n tne 2::~al1cial statements.
~~'',...4...lldi'~ PAdI'~:iT.,:5::::"Zit:c'n~ Fees a~1d OtI1er
\(\7 e UY1Cers:&.l'..c :~:a~ ~Jur er::~loyees will prepare s.~l cz.sh or other ccnfirr:::,atioJ.1s we request
w~ll locate 2..i::' Lvo:ces selected. by us for testing,
-; '-' .'-:
"-......\..,l.
Th "'-" .-- ',.-r,r, -. ~~..'\:' J.~.-.... -!.;~~-,;~ ':;),~...-:-':' ..... .(,. ,,',.. ...'h_.... .....'t:::.---;i ,,....,,.i7' ~[,:),d &r -.....,...... ,'_-.,:,~-"-' ,~u A' , -0. _r" ,:.:--rJ
~. e h' '.JL".~,:....I"". '" ~'",.1 ......... "'Ho~geH1en. aJ. e L..", prop"" \." "'.. U'" ore vVlT..:h......, '-'.~, ,s....,~, ,......
~ t-~",--+", ,-.,-......-c,-:..:'l.'i"\,_:,,1 ;....."f".- ""'t~r,""'\""'1" ~_...-.. ,..-..,..-" ~-'.o. ....~,i-" ,,:"_~ 1 '~'-- .......'r"J-e: -:t. ... ."""k- -~-r"C'
~'Jns io_..C ....\.i.:..i.~...HL"".. huvll.i.1.. .vh. hO\VeV""l, w:;; .";;'j v... .i..;;ques.."a ..0 a'':''1\..... ce. aln wo.. pa;J~i;:)
. .....:1r-.''''1.-.l-, r-'\",,'_r...-, '~""~--~'.,..,'....t .l-,_,"" .A.'---:_ Of ,~,-"'" t ~-'-1-.\~ 1 ~.... "'-,- .,...~___1~. ~-~ -'-i~ "'Tf +.-1 """"rp ,r "'''''
avd..l C,l..il":: lv ";,,Vl",...i. ...J....Uuwa.llll. Lv aUl.i~OnLY g!VC.u 0...... v..;/ i.aW vi ~":'6U."a....;.on. ..I.~ re...lUes-..e......;. a.\.I.........S...:. ..."..J
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,1-. .,.>,.,r"~,,,~~-,',, ' p. . '~,,- "d d' 'd' '-"-,a. " .r:'~"'; _..,co S d .~, Pr C C U A) ry'-'
SllChWO'A'-"'"r'",,,~\...d.D,,,p,,uVl e un ert;";"\J",u~",~V.,:,.".lO.l e Oh,o;;.;;. ,)mpany, ..... . S,.l.........
-"'''-S''''~'''11 'H.,.,-fL "'-01""" u"'on req'uest we mr", "'''~''';c.''.~ .,..,.[.,......u-co...o;er- .~..:-Q"le'~ted vTorkp"""e~<: "'0
}J\.J1. v....lv........ u..."'....w.....~.', "'''', ;..J... ....,.1. c...) 1--"''../\.1. '>.J 1.J......'-~ 1 &. U v:... w.......... ....... V UlJ 1.... L,
..1-,,, -N"'Vl'\.T.o,.'- C'y,:"" ""o---+'-o}ler's 0ffice 0" 0'-':;0' ">,'<,"-'ry aU"lr":< --.. rri- ",oeo regul"'""",y'
r.,1J,.\..I... ",",' ...... v....;..\.. _..._:.-(:; '-' 11...~",it..,... U ... l,.....4'....... "''';:'~_''';''''''''''>..J LA. \..i........_"""U'. J........v....:,'"' -'-....,-,-,'.
z.:..lt!1cntics r~'l~Y int~...1G, at ~:,~cide, to distribu'~~ tl-~c .;.-,:...":;-~0Go~Jies.
We "'X'J"""'to 'De'''''--''''' ","dl"t our aua'l"t or. ap'-"""':'-'""",>,y -;";~e 3 'Ju^-;'j ":v~ "0' l'osue no 1a"'''- ,c:~.n
\..I~... '-"'"'~ .. b"'...... v......... lo,.4."",," '.. ,;.J........J:................"".....J. .,1........1 ').. 'oJ_ ~...\.Q. ~ oJ ' .1 J. ~.....1 "au........
July 15, 2C02:
']ur ~"'," fO~l ti;,p,,,,, ""''"'l;'~eoS ,,';'1 be ?""Ordl"nr-r to .-,_..~ .;:~._";.,~'...'"'. sel~t to -.~," -".-r' ""~ ""'par~te ro''''v''''
\....' ,.lIf.....V A .L;;,v....._ oJ"W.. .....""''-'' ,,'.I.... _",,,-,, ... 0 '............... ..;;.............".........."'" 1. ./ '.,J...... ......I..:.......~J. lJ...... a""", \"I'..J \0,;.....
Our invoices ~r 'U'.z,;:;e fees will be re.-.dered eac~'. r~lv'~~'~ as '~vork prog~'eJ=e.:; anc are payable 0:'1
preser.ta::_... Tr..t aoove fee is based on anticipa~ed ,:.::cperatio.-;. [tOrr-. your persolliiel and tb.;
assu:-.-.r,:ion thatl.<.:;.expected circumstances wi:: .. .'~ '",;;;:lcounterec d:.:rll'13 '::1';; ",dit. If sig!"':.i":lcant
addition::} t:l:.1e :s .necessary, vIe will c:scuss i: )\J~~ Zi-:~. ar:rive ~t a r>:.''-''i.7 ::;;~ ~stimate 'Jefof::) we
i:ncur the addi.>:J=--!;;..i COS~3.
Goveml.:ent ,,~~.....:iU~?;g Standards require that 'V": _):C'.i~e yell with .,,:. ~0::/ cf Ouf r::ost :'ece:-.~
qualit;! co:.t::-ol :'cvievi re)ort. Our December 2:; 202;2 pe~l review ~'epc< accompanies t1::s letter.
.We a:=preci::..te .~}.e o:Jpcrrt:;nity to be of service .' the r~'owr. of\N~pping.:::' ztnd beiieve tLs lett,;;[
accurately S"::.T;.-:~;;..rizes the significant terms of)::;::-.L;;ls:;.;:nent. Ify:.JL.: hElVe any questions, pl';;2.se
let us kIl0-N, Ifyo-.:. i.gree with the terms of 0'';':' :::'Z::.;;/;:;.e::t as de5:crlbe.:i in this letter, please sign
the e::Dlo~~C: :G~~j'J c...i?d ret"J:cn it to us.
,; To. ,.-,'" '" -,._~"~
Y; "":;";( , .e~2
,~\~~ J?... ~'--'1i-'-i<:JV~!.~ I ,~~l ,(!
f L.....~ ....... "--v.:.'\......... ~..N ... j . .A. "', P.C.
l~'ES?()!~-S}j~
This :~~:.:;r cOITec'~ly sets forth the understal1di;-~b :..:~ie Town ofWi;.ppl:.:,:::er, New York.
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Date: t. ~ 2. i'- 0 "'L---
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