ORDER N0. 27c59
PRESSLER, THOMPSON & CO.
LETTER OF ENGRGEMENT AUDIT
FYc00Q~/^cOQ~1
On this the 4th day of September- ^c001, upon a motion made by
Commissioner- Williams, seconded by Commissioner- Griffin, the
Co~_ir•t unanimously approved by a vote of 4-0-0, the engagement
letter- for^ 2~D0@/EQ~O1 a~_idit to be per•for•med by Rr•essler•,
Thompson, and Company, and a~_ithor^ize the County 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: io m .u. N T rvt ~c'M,s e n .
MEETING DATE: 9- -Z 5<~ ~~
SUBJECT: (PLEASE BE SPECIFIC)
C'9 yi ~ /'G~~(' Q rim-/ c/i's c iJs S
Prd~: /Cir, Tif BrH~1Dn 7r CQ
OFFICE: !7l/~'~C
TIME PREFERRED:
P~q~eyvlert7~ le//sr ~/' ~.OOD~O/ 4f/ar~f 6~
. any' avf~COr~'s-~~rt9 Cdv,n~ ~e~9e ~
sign scyr-+e•
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT:
ESTIMATED LENGTH OF PRESENTATION:
IE-EERSONNEL MATTER -NAME OF EMPLOYEE:
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:

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.
5:00 P.M. previous Tuesday.
PRESSLER, THOMPSON AND COMPANY
	A PROFESSIONAL CORPORATION
William F Thompson, C.P.A.	CERTIFIED PUBLIC ACCOUNTANTS
Ernst H. Druehert, Jr., C.P.A.	
ONE SCHREINER CENTER
Jerry N. Oliver, C.P.A.
Douglas H. Suntlberg, C.P.A.	819 WATER STREET, SUITE 320
Timothy R. Porter, CJ?A. I{ERRVILLE, TEXAS 78028
September 10, 2001
The Honorable Judge and Members of the
Commissioners Court
Kerr County
Kerrville, Texas
P.O. Box 290590
Telephone (830) 257-7241
Fax (830) 896-0041
Email: info@ptcocpa.com
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, 2001. We will audit the general purpose financial
statements of Kerr County as of and for the Year ended September 30, 2001. We understand that the
financial statements will be presented in accordance with the financial reporting model in effect prior to that
described in GASB Statement No. 34.
Audit Objectives
The objective of our audit is the expression of an opinion as to whether your financial statements are fairly
presented, in all material respects, in conformity with accounting principles generally accepted in the United
States of America. Our audit will be conducted in accordance with auditing standards generally accepted in
the United States of America 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 financial statements is other than unqualifed, we will fully discuss the reasons
with you in advance. If, for any reason, we are unable to complete the auditor 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.
We will also provide reports (that do not include opinions) on internal control related to the fnancial
statements and compliance with laws, regulations, and the provisions or grant agreements, noncompliance
with which could have a material effect on the financial statements as required by Government Auditing
Standards.
Management Responsibilities
Management is responsible for establishing and maintaining internal control and for compliance with laws,
regulations, contracts, and agreements. 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 financial
statements in accordance with generally accepted accounting principles.
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 far 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. Management is responsible for
adjusting the financial statements to correct material misstatements and for confirming to us in the
representation letter that the effects of any uncorrected misstatements aggregated by us during the current
engagement and pertaining to the latest period presented are immaterial, both individually and in the
aggregate, to the financial statements taken as a whole.
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 an audit is designed to provide reasonable, but not absolute assurance
and because we will not perform a detailed examination of all transactions, there is a risk that material
misstatements (whether caused by errors or fraud) or illegal acts may exist and not be detected by us. In
addition, an audit is not designed to detect immaterial misstatements, immaterial illegal acts, or illegal acts
that do not have a direct effect on the financial statements. However, we will inform you of any material
errors that come to our attention and any fraud that comes to our attention. We will also inform you of any
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 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.
Audit Procedures-Internal Controls
In planning and performing our audit, 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 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 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 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 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 financial statements.
Audit Administration, Fees, and Other
We understand that your employees 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
reproduction, typing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee,
including expenses, will not exceed $ 19,750. Our standard hourly rates vary according to the degree of
responsibility involved andthe experience level of the personnel assigned to your audit. Our invoices for
these fees 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 1999 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,
Pr~ Thomr~ Co~~~~~
RESPONSE:
This let~~tejjcorrectly sets forth the understanding of Kerr County.
By~~',~~~~-tea
Title: Kerr County Judge
Date: September 24th, 2001
Carneiro,Chumney8.Co., L.c.
Robert M. McAdams. CPA
Robert L Lewis, CPA
Franklin W. Burk, CPA
Paul Roth-Roffy, CPA
CERTIFlED PUBLIC ACCOUNTANTS
1. Lowell C,oode. CPA
lu)ia C Norton, CPA
Sandra (. Leppert. CPA
Allen E Robertson, Ic, CPA
December 7, 1999
To the Shareholders
Pressler, Thompson and Company, P.C.
We have reviewed the system of quality control for the accounting and auditing practice of
Pressler, Thompson and Company, P.C. (the firm) in effect for the year ended August 31, 1999.
A system of quality control encompasses the firm's organizational structure and the policies
adopted and procedures established to provide it with reasonable assurance of complying with
professional standards. The elements of quality control are described in the Statements on
Quality Control Standards issued by the American Institute of Certified Public Accountants
(AICPA). The design of the system and compliance with it are the responsibility of the firm.
Our responsibility is to express an opinion on the design of the system, and the firm's
compliance with the system based on our review.
Our review was conducted in conformity with standards established by the Peer Review Board of
the AICPA. In pertorming our review, we obtained an understanding of the system of quality
control for the firm's accounting and auditing practice. In addition, we tested compliance with
the firm's quality control policies and procedures to the extent we considered appropriate.
These tests covered the application of the firm's policies and procedures on selected
engagements. Because our review was based on selective tests, it would not necessarily
disclose all the weaknesses in the system of quality control or all instances of lack of compliance
with it.
Because there are inherent limitations in the effectiveness of any system of quality control,
departures from the system may occur and not be detected. Also, projection of any evaluation
of a system of quality control to future periods is subject to the risk that the system of quality
control may become inadequate because of changes in conditions, or because the degree of
compliance with the policies or procedures may deteriorate.
In our opinion, the system of quality control for the accounting and auditing practice of Pressler,
Thompson and Company, P.C. in effect for the year ended August 31, 1999, has been designed
to meet the requirements of the quality control standards for an accounting and auditing
practice established by the AICPA and was being complied with for the year then ended to
provide the firm with reasonable assurance of complying with professional standards.
C ~~~.,~
40 N.E. Loop 410. Suite 200
San Antonio, Texas 78216-5876
(210) 342-8000 Fax: (2 10) 342-0866 www.carneiro.com