ORDER N0. ]887.?.
APPROVAL OF JUI'iGE F~IiWARDS SIC,N:fNG At=,RRF.MF;NT WITIi
GRANT' THORNTnN TO A?JPIT TNF. KFRk COLILQTY RECORD.;
AS PER PRF.V]Z)LJS AGREEMENT OB' LAST yF.AR
On this t:he 10t:h d::zy of July 1989, upon mar ion ni,-ade by
Commi.ssi.oner Ray, ser.,onded by Commissioner Holekamp, .it was
unanimously approved by the Court that County Judge Danny R.
Edwards sign a l.et:ter of agreement for the firm of Grant
Thornton to audit the. rFCOrds o£ Kerr Country, as per. previous
agreement of: last year, for the sum of 518,;00.00. 7f
expans:i_ons of .,r,ope sur.h as under ±h~ Sing.le Audit: Act are
necessary, these will be an additirina7 fee. of approxirnately
51.,900.00.
5023 Vantage Drive
at LH.10 and Callaghan
San Antonio, TX 782304797
512 377 2100
June 28, 1989
Honorable County Judge and
Members of the Commissioners Court
Kerr County
Kerrville, Texas 78028
GrantThornton T
Accountants and
Management Consultants
The 115. Member Frm of
Grant Thornton International
We will audit the general purpose financial statements of Kerr County,
Texas for the year ended September 30, 1989. Our audit will be
conducted in accordance with generally accepted auditing standards and
will include our examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We will also cover the requirements of the Texas
Juvenile Probation Commission of Kerr County, Texas.
The objective of our engagement is the completion of the foregoing
audit and, upon its completion and subject to its findings, the
rendering of our report. As you know, the financial statements are
the responsibility of the management of Kerr County, Texas who are
primarily responsible for the data and information set forth therein,
as well as for the maintenance of an appropriate internal control
structure (which includes adequate accounting records and procedures
to safeguard the County's assets). Accordingly, as required by
generally accepted auditing standards, our procedures will include
obtaining written confirmation from management concerning important
representations which we will rely upon.
As also required by generally accepted auditing standards, we will
plan and perform our audit to obtain reasonable, but not absolute,
assurance about whether the financial statements are free of material
misstatement. Accordingly, any such audit is not a guarantee of the
accuracy of the financial statements and is subject to the. inherent
risk that errors, irregularities (or illegal acts), if they exist,
might not be detected. If we become aware of any such matters during
the course of our audit, we will bring them to your attention. Should
you then wish us to expand cur normal auditing procedures, we would be
pleased to work with you to develop a separate engagement for that
purpose.
Certain schedules contained in your report are of a statistical nature
and will not necessarily be covered by the scope of our opinion. Our
opinion will set forth, through a reference to the table of contents,
the list of financial statements covered by such opinion.
Our billings for the services set forth in this letter, which will be
based upon our rates for this type of work, will be rendered for
Kerr County, Texas
June 28, 1989
Page Two
payment on a monthly basis, and are payable upon receipt. Our fee for
the year ended September 30, 1988 will be $18,500. If expansions of
scope such as under the Single Audit Act are necessary, we estimate
additional fees of approximately $1,900. This engagement includes
only those services specifically described in this letter and
appearances before judicial proceedings or governmental organizations,
such as the Internal Revenue Service, or other regulatory bodies,
arising out of this engagement will be billed to you separately.
We are enclosing an explanation of certain of our Firm's Client
Service Concepts. We have found that such explanation helps to avoid
misunderstandings and enhances our ability to work more closely with
our clients.
We look forward to providing the services described in this letter, as
well as other accounting services agreeable to us both. In the
unlikely event that any differences concerning our services or fees
should arise that are not resolved by mutual agreement, we both
recognize that the matter will probably involve complex business or
accounting issues that would be decided most equitably to both parties
by a judge hearing the evidence without a jury. Accordingly, you and
we agree to waive any right to a trial by jury in any action,
proceeding or counterclaim arising out of or relating to our service
or fees.
If you are in agreement with the terms of this letter, please sign one
copy and return it for our files. We appreciate the opportunity to
continue to work with you.
Very truly yours,
GRANT THORNTON
~.6~+~'
Donald H. Cormie
Partner
rp/vs
enclosure
The foregoing letter fully describes our understanding and is accepted
by us.
KERR COUNTY, T XAS
gy Q•w, ~ ~Q,t~'~ Date • /0 ~
County Judge
Grant Thornton Client Service Conceats
An Open Letter to Our Clients:
The following is a discussion of certain of our Firm's Client Service concepts. We have
found that explanation of these concepts to our clients helps avoid misunderstandings and
enhances our ability to work more closely with you. Moreover, although certain of these
concepts may involve services you have not engaged us to perform, this discussion may
help to clarify future engagements.
Timeliness
We not only aim to perform our work in keeping with the highest professional standazds,
but we also expect our work to be conducted efficiently and completed on time. We plan
our engagements to make sure we do this. Nevertheless, because of circumstances
beyond our control, and often beyond yours as well, this is not always possible. When
circumstances arise where our plan cannot be carried out, we ask our people to inform
you promptly of additional work we must do or of delays in competing our work. We
believe you should be made awaze of any matter that may impact our service or fees and
to help resolve any problems which might arise.
Accounting and Auditing
Within the framework of our professional standards, we will use our skills as accountants
and auditors on your behalf. However, as the management of the entity, you aze
necessarily more familiaz with its day-to-day operations and with the reality underlying
its books and records. Accordingly, your management (and board of directors) will
remain primarily responsible for the data and information contained in the financial
statements, as well as for the maintenance of adequate accounting records and internal
convols for safeguarding the company's assets. As we near completion of our audit
work, we will ask you to carefully review the financial statements and confirm to us in
writing the important representations they contain which we will rely upon. Therefore, if
there is anything in those statements that is not completely cleaz to you, please be sure to
question us until you aze satisfied.
Issuance of Reports
When we report upon your financial statements or other financial data, our exercise of
professional due Gaze includes important processes wherein we review our own work.
When our work has been completed, our findings will be presented to you in a formal
report. Accordingly, although we may sometimes make a pencil or draft copy of our
report available to you as a courtesy, those findings are not to be relied upon or
disseminated until our completed formal report is issued.
-1-
Other Information In Documents Containing Financial Statements
The inclusion of our reports in documents containing information in addition to the
financial statements and our reports thereon (e.g., annual reports to shazeholders,
regulatory filings, offering circulazs, etc.) may require us to perform additional
procedures to fulfill our professional or legal responsibilities. Accordingly, our reports
should not be used for any such purposes without our consent. In addition, to avoid
unnecessary delay or misunderstanding, it is important that you give us timely notice of
your intention to issue any such document.
Tax Services
Our tax professionals will assist you in determining the lowest tax the law requires. And
we urge you to engage us to help plan your affairs to take maximum advantage of those
provisions of the tax code and regulations that might work to your benefit. However, as
you know, we rely on your timely submission to us of the information we need to prepaze
proper returns for you. In turn, we will undertake to furnish you with tax filings
sufficiently in advance of their due dates to give you time to review them. Your
signature on a tax return evidences a serious responsibility and we want you to
understand the document before you sign. We believe you aze better served by an
extension of the filing date, if necessary, than by an oversight caused by a hasty filing.
In addition, we know you understand that not all provisions of the tax code are absolutely
cleaz and that some tax positions we may discuss with you are not free from doubt or
may be changed by subsequent interpretations. When there is doubt concerning the tax
alternatives, we will discuss this with you so that you will be able to decide on the
position you wish to take.
Management Consulting
Our management consultants aze ready to help you deal with many of your business
opportunities, problems and decisions. Because of their great variety of skills and
experience, we hope you will soon get to know the consultants we have assigned to your
service team. Any engagements they perform for you should always be subject to a cleaz
understanding as to the scope of their work, the results to be achieved, the time the
project will take, and the fees for our services.
We will seek, whenever possible, to involve your people in the implementation of our
suggestions, as we aze convinced that only then will you get the maximum benefit from
our work. Also, in our consulting, as in all our other services, we do not permit our
personnel to make management decisions or otherwise to usurp management's functions.
Instead, our efforts aze directed to business and financial advice, the analysis of
problems, the recommendation of solutions, and to monitoring the implementation of
such solutions.
2-
Investment Advice
As professional accountants, auditors and management consultants, we provide our
clients with accounting, tax, financial and business services and advice -- not investment
advice. We do not recommend the purchase or sale of stocks, bonds or any other
investment(s). For example, when clients request that we "find" them a "tax shelter," our
policy is to furnish them with the materials for several such investments which appeaz to
meet their requirements, and advise them solely with respect to the tax aspects. We do
not recommend, vouch for the bona fides of, or act as "offeree representative" with
respect to these -- or any other investments.
Services In Connection With Business Acquisitions Or Dispositions
We would be pleased to provide you with accounting and tax advice or consulting
assistance in connection with proposed business acquisitions or dispositions, including
assistance with locating potential buyers or sellers. In any event, the accounting and tax
ramifications are such that it is essential you notify us as soon as possible of your
intention to enter into any such transaction -- and certainly in advance of entering into
any contract which refers to us or to our report(s).
In the accounting and auditing area, when you make an acquisition we find it is
invariably to your advantage to have the financial statements of the company to be
acquired audited by the seller's accountants and for us to review their work. This is
usually the the most cost-effective means of proceeding and minimizes delay in the
issuance of the seller's financial statements. Conversely, if you are the seller, we would
expect the purchaser's accountants to review our work prior to the issuance of our final
report. Among other matters, this protects you against the buyer later claiming
misunderstanding (or disagreement) with respect to your accounting policies and
methods.
Independence
One last point: to provide you with proper, unbiased and objective service, our
professionals should be independent of your organization. This not only means that our
people should not have any investment or other business dealings with your organization
or personnel, but also, that they cannot accept gifts or other personal payments from you
in appreciation for their services. Naturally, they aze not to accept any commissions or
other payments from any suppliers or other parties with whom you do business for
having referred them to you. These rules are very important and we not only ask your
cooperation in applying them, but request you to advise us if you observe anything that
might indicate that these policies are not being followed.
-3-

We intend the name "Grant Thornton" to stand for outstanding client service. We want
you to be so pleased by our service that you will recommend us to your friends and
business associates. If, however, any of our people do not adhere to the foregoing service
concepts, or if our service does not please you for any other reason, please let us know.
Feel free to call your account administrator, the managing partner of the office serving
you, or any other partner.
We would be pleased to answer any questions you might have about this discussion, or
any other aspects of our client services.
Very truly yours,
The Partners of
Grant Thornton
4-803 (6/88) - 4 -
8023 Vantage Drive
at LH 10 and Callagghan
San Antonio, FX 782304797
512 3772100
`~i~
June 28, 1989
Honorable County
Members of the
Kerr County
Kerrville, Texas
Judge and
Commissioners Court
78028
GrantThornton T
Accountants and
Management Consultants
The U S. Member Frrm of
Grant Thornton International
We will audit the general purpose financial statements of Kerr County,
Texas for the year ended September 30, 1989. Our audit will be
conducted in accordance with generally accepted auditing standards and
will include our examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We will also cover the requirements of the Texas
Juvenile Probation Commission of Kerr County, Texas.
The objective of our engagement is the completion of the foregoing
audit and, upon its completion and subject to its findings, the
rendering of our report. As you know, the financial statements are
the responsibility of the management of Kerr County, Texas who are
primarily responsible for the data and .information set forth therein,
as well as for the maintenance of an appropriate internal control
structure (which includes adequate accounting records and procedures
to safeguard the County's assets). Accordingly, as required by
generally accepted auditing standards, our procedures will include
obtaining written confirmation from management concerning important
representations which we will rely upon.
As also required by generally accepted auditing standards, we will
plan and perform our audit to obtain reasonable, but not absolute,
assurance about whether the financial statements are free of material
misstatement. Accordingly, any such audit is not a guarantee of the
accuracy of the financial statements and is subject to the inherent
risk that errors, irregularities (or illegal acts), if they exist,
might not be detected. If we become aware of any such matters during
the course of our audit, we will bring them to your attention. Should
you then wish us to expand our normal auditing procedures, we would be
pleased to work with you to develop a separate engagement for that
purpose.
Certain schedules contained in your report are of a statistical nature
and will not necessarily be covered by the scope of our opinion. Our
opinion will set forth, through a reference to the table of contents,
the list of financial statements covered by such opinion.
Our billings for the services set forth in this letter, which will be
based upon our rates for this type of work, will be rendered for
Kerr County, Texas
June 28, 1989
Page Two
payment on a monthly basis, and are payable upon receipt. Our fee for
the year ended September 30, 1988 will be $18,500. If expansions of
scope such as under the Single Audit Act are necessary, we estimate
additional fees of approximately $1,900. This engagement includes
only those services specifically described 'in this letter and
appearances before judicial proceedings or governmental organizations,
such as the Internal Revenue Service, or other regulatory bodies,
arising out of this engagement will be billed to you separately.
We are enclosing an explanation of certain of our Firm's Client
Service Concepts. We have found that such explanation helps to avoid
misunderstandings and enhances our ability to work more closely with
our clients.
We look forward to providing the services described in this letter, as
well as other accounting services agreeable to us both. In the
unlikely event that any differences concerning our services or fees
should arise that are not resolved by mutual agreement, we both
recognize that the matter will probably involve complex business or
accounting issues that would be decided most equitably to both parties
by a judge hearing the evidence without a jury. Accordingly, you and
we agree to waive any right to a trial by jury in any action,
proceeding or counterclaim arising out of or relating to our service
or fees.
If you are in agreement with the terms of this letter, please sign one
copy and return it for our files. We appreciate the opportunity to
continue to work with you.
Very truly yours,
GRANT THORNTON
Donald H. Cormie
Partner
rp/vs
enclosure
The foregoing letter fully describes our understanding and is accepted
by us.
KERR COUNTY, TEXAS
gy Date
County Judge
o~~ Lam. 1ss12
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A~~~ Y~ Co ~ OF LR'~sT Yom;
PER FR~tOUS r~C~^F'~
Jv1Y 10~ 19$9
424
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