2003-07-03
;}CXJi- 00 ~
'Sedore & Company '-'
Certified Public Accountnnts, P.G.
Poughkeepsie
(845) 485-5510
James L Sedore. Jr.. G.RA.
Mark S. O'Sullivan. G.RA.
James F Letterio. Jr.. G.RA.
Teresa A. Barschi. G.RA.
Lindo M. Hannigan. G.RA.
Koren T. Hansen. G.RA.
Po. Box 918 . 62 East Main Street. JlfJppingers Falls, NY 12590
(845) 297-11l1 . Fox (845) 297-1432
www.sedoreco.com
RECEIVED
JAN 0 5 2004
Beacon
(845) 831-0542
SUPERVICC)I:":, i')'TICE
TOWN OF' \tV).I,r;f)i;\!GE}~
July 3, 2003
To the Supervisor and Members of the Town Board
Town of Wappinger
20 Middlebush Road
Wappingers Falls, New York 12590
We have audited the fmancial statements of the Towll of Wappingd for the year ended December 31, 2002,
and have issued our report thereon dated July 3, 2003. Professional standards require that we provide you
with the following information related to our audit.
Q\Jr Responsibility Under U.S. Generally Accepted Accounting Standards and OMB Circular A-133
As stated in our engagement letter for the year ended December 31, 2002, our responsibility, as described
by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute assurance
about whether the financial statements are free of material misstatement. Because an audit is designed to
provide reasonable, but not absolute, assurance and because we did not perform a detailed examination of
all transactions, there is a risk that material misstatements may exist and not be detected by us.
As part of our audit, we considered the internal control of the Town of Wappinger. Such considerations
were solely for the purpose of determining our audit procedures and not to provide any assurance
concerning such internal control.
As part of obtaining reasonable assurance about whether the Town of Wappinger's fmancial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grants. However, the objective of our tests was not to provide an opinion on
compliance with such provisions.
Significant Accounting Policies
Management has the responsibility for selection and use of appropriate accounting policies. In accoruanc.e
with the terms of our engagement letter, we will advise management about the appropriateness of
accounting policies and their application. The significant accounting policies used by the Town of
Wappinger are described in Note A to the financial statements. New accounting policies were adopted
pertaining to the handling of escrow funds, but the application of other existing policies was not changed
during 2002. We noted no transactions entered into by the Town during the year that were both significant
and unusual, and of which, under professional standards, we are required to inform you, or transactions for
which there is a lack of authorative guidance or consensus.
Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ significantly
from those expected. The most sensitive estimates affecting the fmancial statements were the estimated
refunds of tax certiorari cases.
'-"
..."
. Management's estimate of the refunds of tax certiorari cases is generally based on information provided to
management by the Town's tax certiorari attorney who handles defense of such cases. We believe that the
use of this basis is reasonable in relation to the fmancial statements taken as a whole.
Audit Adjustments
For purposes of this letter, professional standards define an audit adjustment as a correction of the financial
statements that, in our judgment, may not have been detected except through our auditing procedures. An
audit adjustment mayor may not indicate matters that could have a significant effect on the Town's
financial reporting process (that is, cause future financial statements to be materially misstated). In our
judgment, none of the adjustments we proposed, whether recorded or unrecorded by the Town, either
individually or in the aggregate, indicate matters that could have a significant effect on the Town's
fmancial reporting process.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter
that could be significant to the financial statements or the aUGitor'::; n:porL We are pleased to r.::port tJlat no
such disagreements arose during the course of our audit.
Consultation with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application
of an accounting principle to the Town's fmancial statements or a determination of the type of auditor's
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Issues Discussed Prior to Retention of Independent Auditors
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the Town's auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our relationship.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
This mformation is intended solely for the use or'the Town oi'Wappinger, and management of the Town of
Wappinger and is not intended to be and should not be used by anyone other than those specified parties.
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S,do" and Company, C.P.A.,,~