WEBSTER CENTRAL SCHOOL DISTRICT NEW YORK LETTER OF COMMUNICATION For Year Ended June 30, 2022
October 3, 2022
To the Board of Education Webster Central School District, New York We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Webster Central School District, New York for the year ended June 30, 2022, and have issued our report thereon dated October 3, 2022. Professional standards require that we provide you with the following information related to our audit. A.
Our Responsibility Under U.S. Generally Accepted Auditing Standards and OMB Uniform Guidance
As stated in our engagement letter dated March 10, 2022 our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. In planning and performing our audit, we considered the Webster Central School District, New York’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Uniform Guidance. As part of obtaining reasonable assurance about whether the Webster Central School District, New York’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit. Also, in accordance with OMB Uniform Guidance, we examined, on a test basis, evidence about the Webster Central School District, New York’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Uniform Guidance applicable to each of its major federal programs for the purpose of expressing an opinion on the Webster Central School District, New York’s compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the Webster Central School District, New York’s compliance with those requirements.
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B.
Planned Scope and Timing of the Audit
We performed the audit according to the planned scope and timing previously communicated to your audit committee in our meeting about planning matters on May 24, 2022. C.
Significant Risks Identified
Professional standards require that we identify and assess risks and design and perform our audit procedures to assess those risks. The two risks which are always identified in an audit are management override of internal controls and revenue recognition. The identification of a risk does not mean that it has occurred, but rather it has the potential to impact the financial statements. D.
Significant Audit Findings Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Webster Central School District, New York are described in Note 1 to the financial statements. The new accounting pronouncements which were implemented were GASB Statement No. 87, Leases, GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, GASB Statement No. 93, Replacement of Interbank Offered Rates, Paragraphs 13 and 14, and GASB Statement No. 98, The Annual Comprehensive Financial Report. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the proper period. 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 effecting them may differ significantly from those expected. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. There were no individually sensitive disclosures affecting the financial statements. E.
Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our
audit. F.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. G.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. 2
H.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated October 3, 2022. I.
Management Consultations 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 governmental unit’s financial 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. J.
Other Audit Findings or Issues
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 governmental unit’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. K.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence. Safeguards in place to eliminate or reduce threats to independence to an acceptable level include a skilled, knowledgeable, and experienced Business Official who reviews draft financial statements prior to issuance and accepts responsibility for them. L.
Other Matters
We applied certain limited procedures to the management’s discussion and analysis, schedule of changes in District’s total OPEB liability and related ratio, schedule of District’s proportionate share of the net pension liability, schedule of District contributions, and budget comparisons, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquires, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on supplementary information accompanying the financial statements (as listed in the table of contents) but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. *
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This information is intended solely for the use of the Board of Education and management of the Webster Central School District, New York and is not intended to be and should not be used by anyone other than these specified parties. Rochester, New York October 3, 2022 3