Order No. 25550
Approval of agreement with PRessler,
'I'hanpson and Company to audit
Kerr County as of and for
the Year ended September 30,1998
and authorize county judge to
sign same
September 14, 1998
Vol V Page 795
ORDER NO. ~JJJ~
RF'F'ROVRL OF AGREEMENT WITH F'RESSI_ER, THOMF'SON AND
COMF'RNY TO AUDIT IiERR COUN'T`! AS OF AND FOR THE YERR
ENDED SEF'TEMEIER :;~, 199a AND AUTI-IORIZE COUNTY JUDSE TO SIGN SRME
On this day the 14th day of Se ptember•, 1`3`38 ~_ipon mntion made
by Commissioner Baldwin, seconded by Commissioner Lackey, the
Court unanimously appr^oved by a vote of 4-a-0, thr_ agreement
with F'ressler•, Thompson and Company to audit I{er^r• County as of
and for• the year ended September 30, 1'3'38 and author•i~e County
J~.tdge to sign same.

William F. Thompson, C.P.A.
Ernst H. Druebert, Jr., C.P.A.
Jerry N. Oliver, C.P.A.
Charles A. Forbes, Jr., C.P.A.
Douglas H. Suntlberg, C.P.A.
Gary B. Selgrath, C.P.A.
PRESSLER~ THOMPSON AND COMPANY
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
320 SIDNEY BAKER STREET
KERRVILLE, TEXAS 78028
August 10, 1998
The Honorable Judge and Members of the
Commissioners Court
Kerr County
Kerrville, TX 78028
P.O. Box 590
Telephone (630) 257-7241
Fax (630) 696-4047
We are pleased to confirm our understanding of the services we
are to provide for Kerr County (including the Texas Juvenile
Probation Commission and the Texas Department of Criminal
Justice, Community Justice Assistance Division) for the year
ended September 30, 1998. We will audit the general purpose
financial statements of Kerr County as of and for the year ended
September 30, 1998.
The objective of our audit is the expression on an opinion as to
whether the general purpose financial statements are fairly
presented, in all material respects, in conformity with generally
accepted accounting principles and to report on the fairness of
the additional information referred to in the first paragraph
when considered in relation to the general purpose financial
statements taken as a whole. Our audit will be conducted in
accordance with generally accepted auditing standards and the
standards for financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United
States, and will include tests of the accounting records of Kerr
County and other procedures we consider necessary to enable us to
express such an opinion. If our opinion on the general purpose
financial statements is other than unqualified, we will discuss
the reasons with you in advance. If, for any reason, we are
unable to complete the audit or are unable to express an opinion,
we may decline to express an opinion or may not issue a report as
a result of this engagement.
The management of Kerr County is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of the controls. The
objectives of internal control are to provide management with
reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition,
that transactions are executed in accordance with management's
authorizations and recorded properly to permit the preparation of
general purpose financial statements in accordance with generally
accepted accounting principles.
-2-
In planning and performing our audits, we will consider the
internal control sufficient to plan the audit in order to
determine the nature, timing, and extent of our auditing
procedures for the purpose of expressing our opinions on Kerr
County's general purpose financial statements.
We will obtain an understanding of the design of the relevant
controls and whether they have been placed in operation, and we
will assess control risk. Tests of controls may be performed to
test the effectiveness of certain controls that we consider
relevant to preventing and detecting errors and fraud that are
material to the general purpose financial statements and to
preventing and detecting misstatements resulting from illegal
acts and other noncompliance matters that have a direct and
material effect on the general purpose financial statements.
(Tests of controls are required only if control risk is assessed
below the maximum level.) Our tests, if performed, will be less
in scope than would be necessary to render an opinion on internal
control and, accordingly, no opinion will be expressed.
An audit is not designed to provide assurance on internal control
or to identify reportable conditions. However, we will inform
the governing body or audit committee of any matters involving
internal control and its operations that we consider to be
reportable conditions under standards established by the American
Institute of Certified Public Accountants. Reportable conditions
involve matters coming to our attention relating to significant
deficiencies in the design or operation of the internal control
that, in our judgment, could adversely affect the entity's
ability to record, process, summarize, and report financial data
consistent with the assertions of management in the general
purpose financial statements.
Identifying and ensuring that Kerr County complies with laws,
regulations, contracts, and agreements is the responsibility of
management. As part of obtaining reasonable assurance about
whether the general purpose financial statements are free of
material misstatement, we will perform tests of Kerr County's
compliance with applicable laws and regulations and the
provisions of contracts and agreements. However, the objective
of our audit will not be to provide an opinion on overall
compliance and we will not express such an opinion.
-3-
Our procedures will include tests of documentary evidence
supporting the transactions recorded in the accounts, and may
include tests of the physical existence of inventories, and
direct confirmation of receivables and certain other assets and
liabilities by correspondence with selected individuals,
creditors, and financial institutions. We will request written
representations from your attorneys as part of the engagement,
and they may bill you for responding to this inquiry. At the
conclusion of our audit, we will also require certain written
representations from you about the financial statements and
related matters.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements;
therefore, our audit will involve judgment about the number of
transactions to be examined and the areas to be tested. we will
plan and perform the audit to obtain reasonable rather than
absolute assurance about whether the financial statements are
free of material misstatement, whether caused by error or fraud.
Because of the concept of reasonable assurance and because we
will not perform a detailed examination of all transactions,
there is a risk that a material misstatement may exist and not be
detected by us. In addition, an audit is not designed to detect
errors, fraud, or other illegal acts that are immaterial to the
general purpose financial statements. However, we will inform
you of any material errors and any fraud that comes to our
attention. We will also inform you of any other illegal acts
that come to our attention, unless clearly inconsequential. Our
responsibility as auditors is limited to the period covered by
our audit and does not extend to matters that might arise during
any later period for which we are not engaged as auditors.
Management is responsible for making all financial records and
related information available to us. We understand that you will
provide us with such information required for our audit and that
you are responsible for the accuracy and completeness of that
information. We will advise you about appropriate accounting
principles and their application and will assist in the
preparation of your financial statements, but the responsibility
for the financial statements remains with you. That
responsibility includes the establishment and maintenance of
adequate records and effective internal control over financial
reporting, the selection and application of accounting
principles, and the safeguarding of assets.
We understand that your employees will prepare all cash or other
confirmations we request and will locate any invoices selected by
us for testing.
-4-
Our fee for these services will be at our standard hourly rates
plus out-of-pocket costs except that we agree that our gross fee,
including expenses, will not exceed $19,500. Our standard hourly
rates vary according to the degree of responsibility involved and
the experience level of the personnel assigned to your audit.
Billing will be rendered upon completion of the engagement. The
above fee is based on anticipated cooperation from your personnel
and the assumption that unexpected circumstances will not be
encountered during the audit. If significant additional time is
necessary, we will discuss it with you and arrive at a new fee
estimate before we incur the additional costs.
Government Auditing Standards require that we provide you with a
copy of our most recent quality control review report. Our 1996
peer review report accompanies this letter.
We appreciate the opportunity to be of service to Kerr County 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,
PRESSLER, THOMPSON AND COMPANY
A PROFESSIONAL CORPORATION
RESPONSE:
This letter correctly sets forth the understanding of Kerr
County.
BY ~ -cl IU vw~~ i 1 . ~~
Title:
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Date: