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PRESSLER~ THOMPSON AND COMPANY
	A PROFESSIONAL CORPORATION
	CERTIFIED PUBLIC ACCOUNTANTS
William F. Thompson, C.P.A.	320 SIDNEY BAKER STREET
Ernst H. Druebert, Jr., C.P.A.	KERRVILLE, TExA5 78028
Jerry N. Oliver, C.P.A.	
Charles A. Forbes, Jr., C.P.A.	
Douglas H. Sundberg, C.P.A.	
Gary B. Selgrath, C.P.A.	
May 8, 1997
Kerr County Juvenile Board
Kerrville, TX
P.O. Box 590
Telephone (210) 257-7241
Fax (210) B96-4041
We are pleased to confirm our understanding of the services we
are to provide the Kerr County Juvenile Board, as agent for Kerr
County. We will audit the records of Recor, Inc. for compliance
with the Operations Fund Agreement and the Operation and
Management Agreement for the period of July 1, 1995 through May
31, 1997.
Our audit will be conducted in accordance with generally accepted
auditing standards and will include tests of the accounting
records and other documents and other procedures we consider
necessary to enable us to express an opinion regarding the
compliance with the above mentioned contracts.
In planning and performing our audit for the above mentioned
period, we will consider the internal control in order to
determine our auditing procedures and not to provide assurance on
the internal controls.
We will obtain an understanding of the policies and procedures as
outlined in the two contracts and determine whether they have
been followed in the operations at the Kerr County Juvenile
Facility (the facility) .
Our procedures will include tests of documentary evidence
supporting the transactions recorded in the accounts of the
facility and possibly direct correspondence with selected
individuals, creditors and financial institutions. We may also
need to correspond with your attorney should any interpretations
be required.
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An audit includes examining, on a test basis, evidence supporting
the recorded transactions, therefore, our audit will involve
judgment about the number of transactions to be examined and the
areas to be tested. Because of the concept of reasonable
assurance and because we will not perform a detailed examination
of all transactions, there is a risk that material errors,
irregularities, or illegal acts, including fraud or defalcations
may exist and not be detected by us. Our responsibilities as
auditors is limited to the period covered by our audit and does
not extend to matters that might arise during any later periods
for which we are not engaged as auditors.
At the end of our audit, we will provide you with a report of our
findings as to the compliance with the above mentioned contracts
for the period from October 1, 1995 through March 31, 1997.
Our fee for this service will be at our standard hourly rates
plus any out-of-pocket costs. Our standard hourly rates vary
according to the degree of responsibility involved and the
experience level of the personnel assigned to our audit. Billing
will be rendered upon completion of the engagement.
We appreciate the opportunity to be of service to you and believe
this letter accurately summarizes the significant terms of our
engagement. If you have any questions, please let us know. If
you agree with the terms of our engagement as described in this
letter, please sign the enclosed copy and return it to us.
Very truly yours,
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PRESSLER, THOMPSON AND COMPANY
A PROFESSIONAL CORPORATION
RESPONSE:
This letter correctly sets forth the understanding of the Kerr
Countv Juvenile Board.
BY:~
TITLE:
DATE: