What is a Management letter?
Answer from Wisegeek.org –
In the corporate context, a management letter is an analysis of findings prepared by a certified public accountant as part of an auditor’s report to a company’s board of directors. An auditor’s report is a thorough, third party review of a company’s bookkeeping practices and financial position along with the preparation of financial statements, including a balance sheet, income statement, and statement of cash flows. Other sorts of reports in different contexts can include a summary address to readers with this name, but its most common use is as part of a formal audit report.
Why is the Turner Valley Rate Payers Board asking for the letter?
We think rate payers in this community need to see what the auditors, MNP LLP, offered for concerns regarding the 2016 Audit of the Town of Turner Valley Financials. It is our understanding that it is the responsibility of the Mayor and Council to maintain an adequate system of internal controls for the organization. We did not electronically record the discussions, however, we did take notes throughout the meeting.
Here is our request to the Mayor and Council sent via email June 8, 2017:
Good Day Mayor & Council,
From the presentation to Council on the 2016 Financial Statements, the Auditors, MNP LLP, mentioned that there were three concerns that they would like to see addressed:
- Tighten control on expenditures (unbudgeted expenditures)
- Tighten control on cash
- Property tax levies calculation
Please forward a copy of the Management Letter from the Auditors to the Town of Turner Valley via email to firstname.lastname@example.org
The Auditors and Administration also discussed the transfer of assets to West End Regional Sewer Commission (West End) and Sheep River Regional Utility Corp (SRRUC). Please provide the breakdown of the assets transferred to West End. What was the book value of these assets? Was there a gain/loss on these assets that were transferred?
We also respectfully request direction on where we can find the breakdown of the Assets that were transferred to SRRUC.
We expect that you will be able to reply in a timely manner and will have answer for us prior to June 30, 2017.
President, Turner Valley Rate Payers Board
Here is the unedited response email from Mayor Kelly Tuck sent June 14, 2017. I will be happy to forward the actual email from the Mayor if anyone wants to confirm that this is the content of Mayor Tucks email. Send the request by email to: email@example.com
Please find enclosed the correct information from the town auditors. I am requesting the letter be placed on the ratepayers Facebook page.
Please note the three comments/ Concerns that were sent to Council are not correct and have been verified by the town auditors As the reminding information come available I will forward it on to you
Rather than provide the Management Letter which should already be in their possession, Mayor and Council requested a new letter from MNP LLP. The letter dated June 12, 2017 is posted here.20170613154725414
We appreciate the Mayor responding to our request for information and making the effort to engage MNP LLP to author this letter. Thank you, Mayor Tuck.
Here is the problem – We still don’t have the original Management Letter. It makes me wonder if there could possibly be information in the Management Letter that is worrisome to the Mayor and Council.
Why would she request a new letter be written by MNP rather than just sending the actual Management Letter already in their possession?
Why address the preamble to the real questions without answering actual questions?
Mayor Tuck has graciously indicated that we will receive additional information as it becomes available which we appreciate and look forward to receiving.
Please allow me to clarify what exactly the Turner Valley Rate Payers Board have requested:
- A copy of the Management Letter from MNP LLP that accompanied the 2016 Audited Financial Statements
- A breakdown of the assets that were transferred to West End Regional Sewer Commission
- Book value of those assets
- Any gain or loss on the assets that were transferred
- Direction on where we can find the breakdown of the assets that were transferred to the Sheep River Regional Utility Corporation.
In a second email, we requested information on DRP funding and Grants received and similar items.
We look forward to receiving this information from the Mayor and Council and will keep our membership updated when we receive further information.