Brought to you by the OSCPA Governmental Accounting and Auditing Strategic Committee. See the latest update on minimum standards for reviews of municipal corporations and access a sample letter for management representation of fiscal affairs required by Oregon regulation.
Management Representation of Fiscal Affairs
Required by Oregon Regulation
The [name of entity] is subject to, and responsible for, compliance with various laws, rules, and regulations relating to its operations and finances. Among such laws, rules, and regulations are the requirements prescribed in Municipal Audit Law (ORS Chapter 297) and the Minimum Standards for Review of Oregon Municipal Corporations (OAR 162, Division 40) including, but not limited to:
§ Deposit of public funds with financial institutions (ORS Chapter 295).
§ Indebtedness limitations, restrictions and repayment.
§ Budgets legally required (ORS Chapter 294).
§ Insurance and fidelity bonds in force or required by law.
§ Programs funded from outside sources.
§ Highway revenues used for public highways, roads, and streets (ORS CHapter 294, 368 & 373).
§ Authorized investment of surplus funds (ORS Chapter 294).
§ Public contracts, purchasing, and improvements (ORS Chapters 279A, 279B, 279C).
The management of [name of entity] is aware of the requirements of Oregon laws and administrative rules concerning each of the above requirements and has complied, in all material respects, with such requirements. Further, we are not aware of any violations or possible violations of laws, rules, or regulations, whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency.
Statement Required by ORS 297.435 (3)(c)
The Board Members and the [name of entity] was covered the entire year ended June 30, 2015, by a $??,??? bond.
__________________________ __________________ ________________
Signature Title Date
This example comes from OAR 162-040-0096 found http://arcweb.sos.state.or.us/pages/rules/oars_100/oar_162/162_040.html
Independent Accountant’s Review Report – additional paragraph on supplementary information that accompanies reviewed financial statements from AICPA’s Accounting and Review Services (Clarified) (AR-C) Section 90 paragraph .A130. (Usually the last paragraph)
Management Representation of Fiscal Affairs Required by Oregon Regulation
The Management Representation of Fiscal Affairs Required by Oregon Regulation, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. The information is the representation of management. [I (We)] have not audited or reviewed such information, and accordingly, [I (we)] do not express an opinion, a conclusion, nor provide any assurance on it.