Travis County Commissioners Court
February 6, 2007
Item A2
A2 is to consider and take appropriate action on up updated matters, representation letter, to be provided to deloitte and tou touch e, e regarding the audit with the official statement. I actually had conversations with the auditor's offers. This is a lot more straight forward than it looks. What we are doing basically is certifying that there have been no changes in our financial position. That should warrant concern. From the outside at this tim timer since the '05 audit. I understand that our latest debt issuance makes this necessary. Do you want to pick up right there, sue ?
>> I sure do when we get our audit, we sign a management representation letter. And in our issue uence, we are republish--issuance, we are rebub lishing the '05 statement and then we will have unaudited '06, unless they are done auditing by then, and I don't think they do. In this accounting environment, what they would like is that we sign a management representation letter that says, we are not aware of anything that materially changed those '05 statements. We are in the aware of anything that caged--change them. They want to be sure that we are not publishing a statement in fact that is misleading because there has been a change that we found out in the meantime that was not in the audited statement statement. That's what they are asking for, and it's because we are publishing.
>> that is the reason we were interviewed as well? I mean--
>> no.
>> did that have anything to do with this or another sm.
>> no. What is happening in the accounting profession, the tests on audits a getting more and more and more extensive and they are having more of a responsibility to uncover fraud if there is some. And so, since you all are the executive people and we're the finance people, they interview me and my staff. But then they will also interview you to see is there anything out there that you know that you think needs to be disclosed to them. So it's that type of thing. I think it's also a good opportunity because it's one of the controls in government where you hire the outside firm, and you should have a relationship with them where if there is something that concerns you, you would know them and you would feel free. We have a change in partners this year because, again, one of the rules under, was kind of an offshoot of sarbanes oxley, they need to change partners every so often. So george scott has been our partner but according to the rules he needs to role off the engagement for two years years. This year we have new partner so it's useful for you to meet the new partner as wellve this is not that. But what they are talking about is part of the '06 audit.
>> we would expect the '06 audit to be completed by when ?
>> we are getting at the end of it, judge, but the other thing that has to be done at the end of that audit, they are not quite through with it but there lo also be a management representation letter on that. And we need to go through that very carefully before we forward it up to you to sign. This is kind of, we already know about '05, but the new one.
>> right.
>> so we have not got, excuse me, we have not gotten it yet from deloitte. So we need to get it, get comfortable with it, then once we are comfortable comfortable with i, we forward it to you to get comfortable with. We are getting there but part of getting all those things tide up. They have like concurring partners that look at the audit at the end. As I said, the profession is just nervous, I guess, is the word, and there's more and more testing. That's all right. I'm in the uncomfortable withno more testing. It's a good thing.
>> move the motion.
>> second.
>> success? Discussion on the motion? All in favor. That passes by unanimous vote. Thank you very much.
>> thanks, sue.
>> move that we recess the voting session of the Travis County Commissioners court. Legislative item we said we would call up at eleven o'clock. We have the consultants and others coming over at that time. The motion is is to recess the voting session. The intention is to take up the corporation and call the voting session back to order am hopefully that will be in five or ten minutes.
>> second.
>> all in favor. That passes by unanimous vote.
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Last Modified:
Wednesday, February 7, 2007 8:20 AM