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HomeMy WebLinkAbout20101590.tiff tit BONDI & Co. t.t.L a1 INvT KNFss IRCv F.FAST 1101)799-6826 PI IONF I NCI.FWOOD,COLORADO 80112 CERTIFIED PUBLIC ACCOUNTANTS (x00)230-9081 IOLI_I RFF W1/4 wbondfcurom MANAGEMENT CONSULTANTS 3!11)799-19'6 IS\X June 29, 2010 To the Board of Directors Weld County Retirement Board Greeley, Colorado 80632 Dear Members of the Board: We have audited the financial statements of the plan net assets available for benefits and the related statement of changes in plan net assets available for benefits of the Weld County Retirement Plan as of and for the years ended December 31, 2009 and 2008, and have issued our report thereon dated May 28, 2010. Professional standards require that we provide you with the following information related to our audits. Our Responsibilities under U.S. Generally Accepted Auditing Standards As stated in our engagement letter, dated October 9, 2007, 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 audits of the financial statements do not relieve you or management of your responsibilities. Planned Scope and Timing of the Audits We performed the audits according to the planned scope communicated to you in our engagement letter dated October 9, 2007. We performed the audits according to the planned timing previously discussed with Barbara Connolly via telephone. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we advised management about the appropriateness of accounting policies and their application. The significant accounting policies used by the Weld County Retirement Plan are described in Note 2 to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the years ended December 31, 2009 and 2008. We noted no transactions entered into by the Weld County Retirement Plan during these years for which Cartui I� 2010-1590 7-19 a°ia FlOo45 Board of Directors Weld County Retirement Plan Page 2 there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transactions occurred. 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. There were no sensitive estimates affecting the financial statements during the years ended December 31, 2009 and 2008. The disclosures in the financial statements are neutral, consistent, and clear. Difficulties Encountered in Performing the Audits We encountered no significant difficulties in dealing with management in performing and completing our audits. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audits, other than those that are trivial, and communicate them to the appropriate level of management. There were no material misstatements detected as a result of audit procedures. Attached is a schedule summarizing uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. 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 auditors' report. We are pleased to report that no such disagreements arose during the course of our audits. Management Representations We have requested certain representations from management that are included in the management representation letter dated May 28, 2010, which is attached. Board of Directors Weld County Retirement Plan Page 3 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 Weld County Retirement Plan's financial statements or a determination of the type of auditors' 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. 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 Weld County Retirement Plan's auditors. However, these discussions occurred in the normal course of our professional relationship, and our responses were not a condition to our retention. This information is intended solely for your use and that of management of the Weld County Retirement Plan, and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, eONmi�, 04.DI& Co. ccc Attachments Weld County Government Accounting Department P.O. 758 915 10th C, et Greeley,(Colorado 80632 COLORADO May 28, 2010 Bondi 8, Co, LLC 44 Inverness Drive East, Bldg. B Englewood, Colorado 80112 We are providing this letter in connection with your audits of the financial statements and supplemental schedules of Weld County Retirement Plan as of December 31, 2009 and 2008, and for the years then hen ended. We understand that your audits were made for the purpose of expressing an opinion as to whether the financial statements present fairly, in all material respects, the financial status and changes in financial status of the Plan in conformity with U.S. generally accepted accounting principles, and whether the supplemental schedules are fairly stated in all material respects in relation to the basic financial statements taken as a whole. We are responsible for the fair presentation in the Plan's financial statements of financial status and changes in financial status in conformity with U.S. generally accepted accounting principles and for the fair presentation of the accompanying supplemental schedules. We are also responsible for adopting sound accounting policies, establishing and maintaining internal control, and preventing and detecting fraud. Certain representations in this letter are described as being limited to matters that are material. Items are considered material if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors. We confirm, to the best of our knowledge and belief, as of May 28, 2010, the following representations made to you during your audits. 1) The financial statements and related footnotes are fairly presented in conformity with U.S. generally accepted accounting principles, and the notes include all disclosures required by laws and regulations to which the plan is subject. 2) We have made available to you all— a) Financial records and related data. b) All minutes of the meetings of Board of Trustees or summaries of actions of recent meetings for which minutes have not yet been prepared. c) Plan instruments, trust agreements, insurance contracts, or investment contracts and amendments to such documents entered into during the year, including amendments to comply with applicable laws. d) Actuarial reports prepared for the plan and the plan's sponsor during the year. 3) There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices, that could have a material effect on the financial statements in the event of noncompliance. 4) We acknowledge our responsibility for the design and implementation of programs and controls to prevent and detect fraud. 5) We have no knowledge of any fraud or suspected fraud affecting the plan involving— a) Management, b) Employees who have significant roles in internal control, or c) Others where the fraud could have a material effect on the financial statements. 6) We have no knowledge of any allegations of fraud or suspected fraud affecting the plan received in communications from employees, former employees, participants, regulators, beneficiaries, service providers, third-party administrators, or others. 7) We have no— a) Plans or intentions that may materially affect the carrying value or classification of assets and liabilities. b) Intentions to terminate the plan. 8) The following have been properly recorded or disclosed in the financial statements: a) Related-party transactions, including transactions with parties-in-interest, including sales, purchases, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties. b) Guarantees whether written or oral under which the plan is contingently liable to a bank or other lending institution. c) All significant estimates and material concentrations known to management that are to be disclosed. We understand that the significant estimates covered by this disclosure are estimates at the date of the statement of net assets that are reasonably possible of changing materially within the next year. Concentrations refer to the nature and type of investments held by the plan, or markets for which events could occur which would significantly disrupt normal finances within the next year. d) Amendments to the plan instrument, if any. 9) We believe the effects of the uncorrected financial statement misstatements summarized in the attached schedule, of$29,205, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. 10) There are no— a) Violations or possible violations of laws or regulations (including ERISA, DOL, and IRS regulations) whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency. b) We are not aware of any pending or threatened litigation, claims, or assessments or unasserted claims or assessments that are required to be accrued or disclosed in the financial statements in accordance with FASB Accounting Standards Codification 450, Contingencies(formerly Statement of Financial Accounting Standards No. 5), and the plan has not consulted a lawyer concerning litigation, claims, or assessments. c) Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by FASB Accounting Standards Codification 450, Contingencies (formerly Statement of Financial Accounting Standards No. 5. d) Material transactions that have not been properly recorded in the accounting records underlying the financial statements. e) Other matters (e.g., breach of fiduciary responsibilities, nonexempt transactions, loans or leases in default, events reportable to the PBGC, or events that may jeopardize the tax status) that legal counsel have advised us that must be disclosed. 11) There were no omissions from the participants' data provided to the plan's actuary for the purpose of determining the actuarial present value of accumulated plan benefits and other actuarially determined amounts in the financial statements. 12) The plan administrator agrees with the actuarial methods and assumptions used by the actuary for funding purposes and for determining the plan's accumulated plan benefits and has no knowledge or belief that such methods or assumptions are inappropriate in the circumstances. We did not give any, nor cause any, instructions to be given to the Plan's actuary with respect to values or amounts derived, and we are not aware of any matters that have impacted the independence or objectivity of the plan's actuary. 13) There have been no changes in: a) The actuarial methods or assumptions used in calculating amounts recorded or disclosed in the financial statements. b) Plan provisions between the actuarial valuation date and the date of this letter. 14) The plan has complied with all aspects of debt and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 15) The methods and significant assumptions used to estimate fair values of financial instruments, including nonreadily marketable securities are as follows: provided by third party investment management information and assumptions used to estimate fair values of financial instruments, The methods and significant assumptions used result in a measure of fair value appropriate for financial measurement and disclosure purposes. 16) Financial instruments with concentrations of credit risk have been properly recorded or disclosed in the financial statements. 17) All required filings of Plan documents with the appropriate agencies have been made. 18) The plan is qualified under the appropriate section of the Internal Revenue Code and we intend to continue them as a qualified plan, The plan sponsor has operated the Plan and trust or insurance contract in a manner that did not jeopardize this tax status. 19) The plan has complied with the Department of Labor's regulations concerning the timely remittance of participant contributions to trusts containing assets for the plan. 20) The plan has satisfactory title to all owned assets which are recorded at fair value, [state exceptions, if any] and all liens, encumbrances, or security interest requiring disclosure in the financial statements have been properly disclosed. 21) There are no— a) Investments or loans in default or considered to be uncollectible that were not disclosed in the supplemental schedules. 22) We have apprised you of all communications, whether written or oral, with regulatory agencies concerning the operation of the plan. 23) No events have occurred subsequent to the date of the plan's financial statements and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements. 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