Audit Confirm Ltr 2007
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June 30, 2007
WOODBURN URBAN RENEWAL AGENCY
270 MONTGOMERY ST
WOODBURN, OR 97071
We are pleased to confirm our understanding of the services we are to provide WOODBURN URBAN
RENEWAL AGENCY for the year ended June 30, 2007. We will audit the financial statements of the
governmental activities, each major fund, and the aggregate remaining fund information, which collectively
comprise the basic financial statements of WOODBURN URBAN RENEWAL AGENCY as of and for the year
ended June 30, 2007. Accounting standards generally accepted in the United States provide for certain required
supplementary information (RSI), such as management's discussion and analysis (MD&A), to accompany
WOODBURN URBAN RENEWAL AGENCY's basic financial statements. As part of our engagement, we
will apply certain limited procedures to WOODBURN URBAN RENEWAL AGENCY's RSI. These limited
procedures will consist principally of inquiries of management regarding the methods of measurement and
presentation, which management is responsible for affirming to us in its representation letter. Unless we
encounter problems with the presentation of the RSI or with procedures relating to it, we will disclaim an
opinion on it. The Management's Discussion and Analysis is required by generally accepted accounting
principles and will be subjected to certain limited procedures, but will not be audited.
Supplementary information other than RSI, such as combining and individual fund financial statements, also
accompanies WOODBURN URBAN RENEWAL AGENCY's basic financial statements. We will subject the
following supplementary information to the auditing procedures applied in our audit of the basic financial
statements and will provide an opinion on it in relation to the basic financial statements:
1) Combining statements of non-major funds
2.) Individual fund schedules (budget and actual) not presented as part of the basic financial statements.
Audit Objective
The objective of our audit is the expression of opinions as to whether your basic financial statements are fairly
presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to
report on the fairness of the additional information referred to in the first paragraph when considered in relation
to the basic financial statements taken as a whole. Our audit will be conducted in accordance with U.S.
generally accepted auditing standards and will include tests of the accounting records and other procedures we
consider necessary to enable us to express such opinions. If our opinion(s) on the financial statements are other
than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to
complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to
issue a report as a result of this engagement.
www.bcsllc.com
SALEM: 480 CHURCH STREET S.E. . SALEM, OR 97301 . PHONE: (503) 585-7751 . FAX: (503) 370-3781
STAYTON: 408 NORTH THIRD AVENUE . STAYTON, OR 97383 . PHONE: (503) 769-2186 . FAX: (503) 769-4312
ALBANY: 1205 9TH AVENUE S.E. . ALBANY, OR 97322 . PHONE: (541) 928-6500 . FAX: (541) 928-6501
Established - 1968
Management Responsibilities
Management is responsible for establishing and maintaining internal controls, including monitoring ongoing
activities; for the selection and application of accounting principles; and for the fair presentation in the financial
statements of the respective financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of the WOODBURN URBAN RENEWAL AGENCY and the respective
changes in financial position in conformity with U.S. generally accepted accounting principles. Management is
responsible for the basic financial statements and all accompanying information as well as all representations
contained therein. You are also responsible for management decisions and functions; for designating an
individual with suitable skill, knowledge, or experience to oversee our financial statement preparation services
and any other nonattest services we provide; and for evaluating the adequacy and results of those services and
accepting responsibility for them.
Management is responsible for making all financial records and related information available to us and for the
accuracy and completeness of that information. Management is responsible for adjusting the financial
statements to correct material misstatements and for confirming to us in the representation letter that the effects
of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest
period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a
whole.
You are responsible for the design and implementation of programs and controls to prevent and detect fraud,
and for informing us about all known or suspected fraud or illegal acts affecting the government involving (1)
management, (2) employees who have significant roles in internal control, and (3) others where the fraud or
illegal acts could have a material effect on the financial statements. Your responsibilities include informing us
of your knowledge of any allegations of fraud or suspected fraud affecting the government received in
communications from employees, former employees, regulators, or others. In addition, you are responsible for
identifying and ensuring that the entity complies with applicable laws and regulations.
Audit Procedures-General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; therefore, our audit will involve judgment about the number of transactions to be examined and the
areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about
whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent
financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are
attributable to the entity or to acts by management or employees acting on behalf of the entity.
Because an audit is designed to provide reasonable, but not absolute, assurance and because we will not perform
a detailed examination of all transactions, there is a risk that material misstatements may exist and not be
detected by us. In addition, an audit is not designed to detect immaterial misstatements, or violations of laws or
governmental regulations that do not have a direct and material effect on the financial statements. However, we
will inform you of any material errors and any fraudulent financial reporting or misappropriation of assets that
come to our attention. We will also inform you of any violations of laws or governmental regulations that come
to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by
our audit and does not extend to any later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts,
and may include tests ofthe physical existence of inventories, and direct confirmation of receivables and certain
other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We
will request written representations from your attorneys as part of the engagement, and they may bill you for
responding to this inquiry. At the conclusion of our audit, we will also require certain written representations
from you about the financial statements and related matters.
Audit Procedures-Internal Control
Our audit will include obtaining an understanding of internal control sufficient to plan the audit and to
determine the nature, timing, and extent of audit procedures to be performed. An audit is not designed to
provide assurance on internal control or to identify deficiencies in internal control. However, during the audit,
we will communicate to management and those charged with governance internal control related matters that
are required to be communicated under professional standards.
Audit Procedures-Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of WOODBURN URBAN RENEWAL AGENCY's compliance with
applicable laws and regulations and the provisions of contracts and agreements. However, the objective of our
audit will not be to provide an opinion on overall compliance and we will not express such an opinion.
Audit Administration, Fees, and Other
You may request that we perform additional services not addressed in this engagement letter. If this occurs, we
will communicate with you regarding the scope of the additional services and the estimated fees. We also may
issue a separate engagement letter covering the additional services. In the absence of any other written
communication from us documenting such additional services, our services will continue to be governed by the
terms of this engagement letter.
We understand that your employees will prepare all cash or other confirmations we request and will locate any
documents selected by us for testing.
Our invoices will be rendered each month as work progresses and are payable on presentation. In accordance
with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may not
be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our
engagement will be deemed to have been completed upon written notification of termination, even if we have
not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for
all out-of-pocket costs through the date of termination. The fee is based on anticipated cooperation from your
personnel and the assumption that unexpected circumstances will not be encountered during the audit. If
significant additional time is necessary, we will discuss a new fee estimate before we incur the additional costs.
We appreciate the opportunity to be of service to WOODBURN URBAN RENEWAL AGENCY and believe
this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let
us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy
and return it to us.
Very truly yours,
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RESPONSE:
This letter correctly sets forth the understanding of WOODBURN URBAN RENEWAL AGENCY.
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1:\Municipal Engagements\MUNI LETIERS\2007\GAAS unmerged. doc