ORDER N0. 4~,Q~E4
AP'P'ROVE SERVICES AGREEMENT
BETWEEN IiERR COUNTY
AND P'RESSLER, THOMF'SON AND COMPANY
On this the 1th day of October 199, ~_~pon motion made by
Commissioner, Baldwin, seconded by Commissioner Griffin, the
Co~_~rt ~_manimo~_tsly approved by a vote of 4-~-Q~, the services
agreement between N,err Co~_tnty and Pressler, Thompson and
Company to provide an a~_idit for the gener^a 1. p~_trpase financial
statements of tSerr Co~_~nty as of and for the year ending
September L,+Zi, 1~~~ and authorized Co~_inty J~_idge to sign same.
COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE
REVIEWED BY THE COURT.
MADE BY: Fred Henneke OFFICE: County Jude
MEETING DATE: October 12 , 1999 TIME PREFERRED:
SUBJECT: (PLEASE BE SPECIFIC)
Consider and discuss approval of services agreement between Kerr County and Pressler, Thompson and
Company to provide an audit for the general purpose financial statements of Kerr County as of and for
the year ended September 30, 1999 and authorize the County Judge to sign same.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT:
ESTIMATED LENGTH OF PRESENTATION:
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
County Jude
Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter
551 and 552, Government Code, is as follows:
Meeting scheduled for Mondays
THIS REQUEST RECEIVED BY:
THIS REQUEST RECEIVED ON:
5:00 P.M. previous Tuesday.

All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been
prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be
appreciated and contribute towards you request being addressed at the earliest opportunity. See Agenda Request Rules
Adopted by Commissioners' Court.
William F. Thompson, C.P.A.
Ernst H. Druebert, Jr., C.P.A.
Jerry N. Oliver, C.P.A.
Douglas H. Sundberg, C.P.A.
PR.ESSLER, 1 riOMPSON AND COMPANY
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
ONE SCHREINER CENTER
819 WATER STREET, SUITE 320
KERRVILLE, TEXAS 78028
September 1, 1999
The Honorable Judge and Members of the
Commissioners Court
Kerr County
Kerrville, TX 78028
P.O. Box 290590
Telephone (830) 257-7241
Fax (830) 896-4041
We are pleased to confirm our understanding of the services we are to provide
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, 1999. We will audit the general purpose financial
statements of Kerr County (including the Texas Juvenile Probation Commission
and the Texas Department of Criminal Justice, Community Justice Assistance
Division) as of and for the year ended September 30, 1999.
Audit Objective
The objective of our audit is the expression of an opinion as to whether your
general purpose financial statements are fairly presented, in all material respects,
in conformity with generally accepted accounting principles. Our audit will be
conducted in accordance with generally accepted auditing standards and will
include tests of the accounting records 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 fully discuss the
reasons with you in advance. If, for any reason, we are unable to complete the
audit or are unable to form or have not formed an opinion, we may decline to
express an opinion or to issue a report as a result of this engagement.
Management Responsibilities
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.
Audit Procedures -General
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 periods for which we are not engaged as auditors.
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.
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.
An audit of the general purpose financial statements performed in accordance
with generally accepted auditing standards is not designed to determine whether
the computer systems of Kerr County are year 2000 compliant, or to provide any
assurance on whether the county has addressed all of the affected systems on a
timely basis. Further, we have no responsibility with regard to the systems of
vendors, service providers, or any other third parties. These are responsibilities
of the county management. However, we may choose to communicate matters
that come to our attention relating to the Year 2000 issue.
Additionally, sufficient audit evidence may not exist to support the governments'
financial statement disclosures with respect to the Year 2000 Issue in
accordance with GASB Technical Bulletin 98-1, Disclosure about Year 2000
Issues (TB 98-1 ). If we determine that there is not sufficient audit evidence to
support the required disclosures, we will consider issuing a qualified opinion
(scope limitation), on the county's general purpose financial statements. If the
county does not include the disclosures required by TB 98-1 and we determine
that the financial statements are affected by the omission, we will issue a
qualified or adverse opinion on the general purpose financial statements for that
departure from generally accepted accounting principles.
Audit Procedures -Internal Control
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 opinion on Kerr
County's general purpose financial statements.
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 operation 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.
Audit Administration, Fees, and Other
We understand that your employees will prepare all cash or other confirmations
we request and will locate any invoices selected by us for testing.
Our fee for these services will be at our standard hourly rates plus out-of-pocket
costs (such as report reproductions, typing, postage, travel, copies, telephone,
etc.) 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.
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 COMPAN
A PROFESSIONAL CORPORATION
This letter correctly sets forth the understanding of Kerr County.
Title:
Date: 1~