ORDER NO. 19700
APPROVAL OF JUDGE EDWARDS SIGNING AGREEMENT WITH
GRANT THORNTON TO AUDIT THE KERB COUNTY RECORDS
On this the 9th day of August 1990, upon motion made by
Commissioner Holekamp, seconded by Commissioner Morgan, with
Commissioner's Holekamp, Morgan and Baldwin voting "AYE", and
Judge Edwards "ABSTAINING", it was appTOVld by a mo~ority
vote oŁ the Court that County Judge Danny R. Edwards sign a
letter oŁ agreement for the firm of Grant Thornton to audit
the records of Kerr County for the year ending September 30,
1990, Ear the sum of S18,500.00. If expansions of scope such
as under the Single Audit Act are necessary, there will be an
additional fee of approximately 51,900.00.
Suite 600
8023 Vantage Drive
San Antonio, TX 78230-4797
512 377-2100
FAX 512 377 2684
GrantThornton r
August 1, 1990
Honorable County Judge and
Members of the Commissioners Court
Kerr County
Y,errville, Texas 78028
Accountants and
Management Consultants
The U.S. Member Firm of
Grant Thorntonlnternational
We will audit the general purpose financial statements of Kerr
County, Texas for the year ended September 30, 1990. 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.
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
infcrmaticn set fcrth 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
Kerr County, Texas
August 1, 1990
Page Two
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 payment on a monthly basis, and are payable upon
receipt. Our fee for the year ended September 30, 1990 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. This engagement includes
only those services specifically described in this letter.
Services in connection with offering statements and appearances
(whether requested or required) before judicial proceedings,
government organizations, or regulatory bodies arising out of
this engagement will be billed to you separately and are payable
upon receipt.
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.
Kerr County, Texas
August 1, 1990
Page Three
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
DHC:jd
enclosure
The foregoing letter fully describes our understanding and is
accepted by us.
KER
Sy
Date ~' p- fv
GrantThornton
Accoumm~<s and
Maregertient Conwltarrts
GRANT THORNTON CLIENT SERVICE CONCEPTS
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 helps to clarify our services, and enhances our ability to work more
closely with you. Moreover, although certain concepts may involve services you have not engaged
us to perform, this discussion may enhance future engagements.
Accoun~nnc nnv Atmtrrnc
Responsibilities
We will use our skills as accountants and auditors on your behalf and are responsible for performing
such work with due professional care within theframeworkofourprofessionalstandards. However,
as management of the entity, you are necessarily more familiar with its operations, its personnel and
the realityunderlyingitsbooksandrecords. Accordingly,yourmanagement(andboardofdirectors)
will remain primarily responsible for the data and information contained in the financial statements,
as well as for the evaluation of the capability and integrity of the company's personnel and the
maintenance of adequate accounting records and internal controls 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 clear to you,
please be sure to question us until you are satisfied.
Issuance of Reports
When we report upon your financial statements or other financial data, our exercise of professional
due care includes important processes wherein we review ourown work. When such processes have
been completed, our findings will be presented to you in a formal report. Accordingly, although we
may sometimes make a pencil ordraft copy of ourreport available to you as a courtesy, those findings
are not to be relied upon or disseminated until our completed formal report is issued.
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 shareholders, regulatory filings, offering
circulars, 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
As yow accountants, we would be pleased to provide you with a wide variety of professional tax
planning, preparation and advisory services, based upon yow particulaz needs and the specific
services you engage us to perform. We particularly wge you to engage us to perform special tax
planning on yow behalf (i.e. help plan your affairs so take maximum advantage of those provisions
of the tax code and regulations that might work to your bent). Such an engagement entails
intensive tax planning, whereas an engagement which provides solely for the preparation of tax
returns does not
Nevertheless, when engaged to prepare tax returns for you, ow tax professionals will attempt to help
you minimize yow tax obligations. As you know, we rely on yow timely submission to us of the
information needed for the proper prepazation of your returns. In ttun, we will make every effort
to furnish you with the completed returns 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 are better served by an extension of
the filing date, if necessary, than by an oversight caused by a hasty filing.
When we present tax alternatives to you we know you will understand that not all provisions of the
tax code aze absolutely clear and that some alternatives may not be free from doubt, or may be
changed by subsequent interpretations. We will do ow best to make you aware of any such doubts
so that you may consider them in deciding on the tax position you choose to elect
MANAGEMENT CONSULTING
Our management consultants ate ready to help you deal with many of yow business opportunities,
problems and decisions. Because of their great variety of skills and experience, we hope you will
soon get to know the consultants assigned to your service team. Any engagements they perform for
you should always be subject to a clear understanding as to the scope of the 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 are convinced that only then will you get the maximum benefit from ow work. Also, in ow
consulting, as in all ow other services, we do not permit ow personnel to make management
decisions onto otherwise usurp management's functions. Instead, owefforts are directed to business
and financial advice, the analysis of problems, the recommendation of solutions, and to monitoring
the implementation of such solutions.
SERVtcFS IN CONNECf10N Walt BUSINESS AcQtnsmorts OR DlsrostTloNs
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 yow intention to enter into any such transaction-and
certainly in advance of entering into any contact which refers to us or to ow report(s).
Page 2
When you make an acquisition and a standard audit opinion is needed, we find it is usually 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. (However, we urge you to have us advise you and work
with you to develop a special engagement providing for us to perform specified procedures on your
behalf). This is usually 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 repon. Among other
maters, this protects you against the buyer laterclaiming misunderstanding (or disagreement) with
respect to your accounting policies and methods.
CONCF.PrS WH1cH Psx7nrn To At.t. SExvtciss
Timeliness
We not only aim to perform our services in keeping with the highest professional standards, but we
also expect our work to be conducted efficiently and completed on time. We plan our engagements
to do this, but because of circumstances beyond our control, and often beyond yours as well, this is
not always possible. When situations arise when it appears there will be delays or we must do
additional work, our people are instructed to inform you promptly. We believe you should be made
aware of any matter that may impact our service or fees and given the opportunity to help resolve
any problems which arise.
Supervision Of Your Personnel
When called for by our engagement, we would be pleased to provide your personnel with
appropriate guidance and assistance. For example, we might provide certain record keeping or
financial reporting instructions to your accounting staff, or in the tax area, might furnish personnel
you designate with a "calendar" of tax due dates and with instructions concerning their resgonsibili-
tiesfor the filing of such tax returns, making tax deposits, etc. However, we aze sure you understand
that we cannot be responsible for the day-to-day supervision of your personnel or for ensuring that
such personnel fulfill their assigned responsibilities. You, or someone on your staff, must exercise
this responsibility.
Investment Advice
As professional accountants, auditors and management consultants, we provide our clients with
accounting, tax, fmancial and business services and advice-not investment advice. We do not
recommend the purchase or sale of stocks, bonds or any otherinvestment(s) and suggest you consult
your investment advisor with respect to any such matters. For example, when clients request that
we "find" them a "tax shelter," we may famish them with the materials for several such investments
which appeaz to meet theirrequirements, 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, and we ask that you inform us if any of our personnel appeaz to
exceed these limitations.
Page 3
Independence
One last point: to provide you with proper, unbiased and objective service, ourprofessionalsshoulti
be independent of your organization. This not only means that our people shouhi not have any
investment orother business dealings with your organization orpersonnel, but also, that they should
avoid inappropriate relationships with your personnel and cannot accept gifts or other personal
payments from you in appreciation for their services. Naturally, they art not to accept any
commissions or otherpayments from any suppliers or other parties with whom you do business for
having referttd 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.
We intend the name "Grant Thornton" to stand for outstanding client service. We want you to be
so pleased by our work 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 partner, the
managing partner of the office serving you, or any other partner.
We would be pleased to answer any questions you might have about these, or any other aspects of
our client services.
Very truly yours,
~~
The Partners of
Grant Thornton
4803 (8/89) (Rev.)
Page 4
ORDER N0. 19700
APPROVAL OF JUDGE EDL~k1RDS SIGNING
AGRE~`r WITH GRANT THORNTON TO
AUDIT THE KERR COUNTY RECORDS
August 9, 1990
Vol. R, Pg. 937