Jackson%20County%20BOE%202024%20AUP.PDF

Parent document: May 2, 2024, Regular Session-05-02-2024.pdf

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Suttle & Certified

Public
Stalnaker | accountants

A Professional Limited Liability Company

April 23, 2024

Ms. Laura Matheny, Treasurer
Jackson County Board of Education
PO Box 770

Ripley, West Virginia 25271

We are pleased to confirm our understanding of the terms of our engagement and the nature and limitations of the
services we are to provide for Jackson County Board of Education (the Board).

We will apply the procedures described below. By signing this engagement letter, you agree to those procedures and
acknowledge that the procedures to be performed are appropriate for the intended purpose of the engagement,
which is to determine if the records and transactions of the high schools of the Board for the year ending June 30,
2024 are prepared in accordance with the standards established by the West Virginia Department of Education. We
understand the engagement is required in accordance with Section 1-43 of the Accounting Procedures Manual for the
Public Schools in the State of West Virginia. Our engagement to apply agreed-upon procedures will be conducted in
accordance with attestation standards established by the AICPA. Those standards require that we obtain your written
agreement to the procedures to be applied and your acknowledgment that those procedures are appropriate for the
intended purpose of the engagement, as described in this letter. A refusal to provide such agreement and
acknowledgment will result in our withdrawal from the engagement. No other parties will be requested to agree to
the procedures and acknowledge that the procedures performed are appropriate for their purposes. We make no
representation that the procedures we will perform are appropriate for the intended purpose of the engagement or
for any other purpose. The specific procedures to be performed are as follows:

1. Determine that the June 30, 2024 bank statements have been reconciled and agree to the annual reports,
and reconciling items do not appear to be unusual.

2. Select a sample of receipts (approximately 25 from each school) from the detailed receipts listing and
determine that the receipt is properly recorded, completed in full and deposited to the bank. In addition, we
will scan the detail receipts listing for any items which do not appear reasonable.

3. Select a sample of disbursements (approximately 75 from each school) from the detail expenditure listing.
We will determine that the disbursement is properly recorded, that the expenditure is supported by an
invoice and the purchase order is properly approved. In addition, we will examine canceled checks for proper
authorized signatures and endorsement by payee. We will also scan the detail expenditure listing for any
items which do not appear reasonable.

4. We will review the ticket reconciliation process for both schools and document any issues or control
deficiencies noted.

5. We will complete the standard internal control checklist with the school’s designated bookkeeper and will
report any internal control issues identified.

The Virginia Center The Rivers Office Park Suncrest Towne Centre The Somerville Building
1411 Virginia Street, East 200 Star Avenue 453 Suncrest Towne Centre Drive 501 5th Avenue

Suite 100 Suite 220 Suite 201 Suite 1

Charleston, WV 25301 Parkersburg, WV 26101 Morgantown, WV 26505 Huntington, WV 25701
MAIN (304) 343-4126 MAIN (304) 485-6584 MAIN (304) 554-3371 MAIN (304) 525-0301

FAX (304) 343-8008 FAX (304) 485-0971 FAX (304) 554-3410 FAX (304) 522-1569


Because the agreed-upon procedures do not constitute an examination or review, we will not express an opinion or
conclusion on any of the specific elements, accounts, or items referred to in our report or on the financial statements
of the Board taken as a whole. In addition, we have no obligation to perform any procedures beyond those to which
you agree.

We have advised you of the limitations of our engagement regarding the detection of fraud and the possible effect on
the financial statements (including misappropriation of cash or other assets). We are available to perform, as a
separate engagement, extended procedures specifically designed to detect fraud; however, you have declined to
engage us to do so at this time.

As this engagement is not designed to be a fraud engagement, management understands and accepts the inherent
limitations of the engagement services described in this agreement.

We plan to begin our procedures during July 2024 and, unless unforeseeable problems are encountered, the
engagement should be completed by August 2024.

We will issue a written report upon completion of our engagement that lists the procedures performed and our
findings. Our report will be addressed to the Board. If we encounter restrictions in performing our procedures, we will
discuss the matter with you. If we determine the restrictions are appropriate we will disclose the restrictions in our
report. Our report will contain a paragraph indicating that had we performed additional procedures, other matters
might have come to our attention that would have been reported to you. You understand that the report is intended
solely for the information and use of the Board and should not be used by anyone other than that specified party.

There may exist circumstances that, in our professional judgment, will require we withdraw from the engagement. If
circumstances occur relating to the condition of your records, the availability of evidence, or the existence of a
significant risk of material misstatement of the subject matter caused by error or fraud, which in our professional
judgment prevent us from completing the engagement or reporting findings on the subject matter, we retain the
right to take any course of action permitted by professional standards, including declining to report findings or issue a
report, or withdrawing from the engagement. Such circumstances include the following:

e You refuse to provide written agreement to the procedures and acknowledge that they are appropriate for
the intended purpose of the engagement.

e¢ You fail to provide requested written representations, or we conclude that there is sufficient doubt about the
competence, integrity, ethical values, or diligence of those providing the written representations, or we
conclude that the written representations provided are otherwise not reliable.

e We determine that the description of the procedures performed or the corresponding findings are
misleading in the circumstances of the engagement.

¢ We determine that restrictions on the performance of procedures are not appropriate.

An agreed-upon procedures engagement is not designed to detect instances of fraud or noncompliance with laws or
regulations; however, should any such matters come to our attention, we will communicate them in accordance with
professional standards and applicable law. In addition, if, in connection with this engagement, matters come to our
attention that contradict the records and transactions of the high schools of the Board, we will communicate such
matters to you.


You are responsible for the records and transactions of the high schools of the Board. In addition, you are responsible
for providing us with (1) access to all information of which you or the appropriate party are aware that is relevant to
the performance of the agreed-upon procedures on the subject matter, (2) additional information that we may
request from the appropriate party for the purpose of performing the agreed-upon procedures, and (3) unrestricted
access to persons within the entity from whom we determine it necessary to obtain evidence relating to performing
those procedures.

At the conclusion of our engagement, we will require certain written representations in the form of a representation
letter from management that, among other things, will confirm management’s responsibility for the records and
transactions of the high schools of the Board in accordance with the standards established by the West Virginia
Department of Education.

Chris Deweese, CPA, CGMA is the engagement partner and is responsible for supervising the engagement and signing
the report or authorizing another individual to sign it.

If any dispute arises among the parties hereto, the parties agree first to try in good faith to settle the dispute by
mediation administered by the American Arbitration Association under Rules for Professional Accounting and Related
Services Disputes before resorting to litigation. Costs of any mediation proceeding shall be shared equally by all
parties.

We generally base our fees on the time required at our regular rates for the services and personnel assigned plus out
of pocket costs and relevant computer charges. Our charges also include other appropriate factors, including the
difficulty of the assignment, the degree of skill required, time limitations imposed on us by others, the experience and
ability of the personnel assigned, and the value of the services to the client. Interim billings will be submitted as work
progresses and as expenses are incurred. Billings are due upon submission. Assuming adequate records, internal
controls, and assistance of your personnel, we estimate that our fee for the above services will be $5,750 to $8,250.

Out of pocket costs will be added to the above fees. We will attempt to minimize our fees consistent with quality
work. The extent to which we can do this will depend on your personnel offering us clerical and other assistance to
prepare schedules, perform analyses, and provide source documents. This fee estimate will be subject to adjustments
based on unanticipated changes in the scope of our work and/or the incomplete or untimely receipt by us of the
information on the client participation list. All other provisions of this letter will survive any fee adjustment.

Client and accountant both agree that any dispute over fees charged by the accountant to the client will be submitted
for resolution by arbitration in accordance with the Rules for Professional Accounting and Related Services Disputes
of the American Arbitration Association. Such arbitration shall be binding and final. In agreeing to arbitration, we both
acknowledge that in the event of a dispute over fees charged by the accountant, each of us is giving up the right to
have the dispute decided in a court of law before a judge or jury and instead we are accepting the use of arbitration
for resolution.

The Board hereby indemnifies Suttle & Stalnaker, PLLC and its partners, principals and employees and holds them
harmless from all claims, liabilities, losses and costs arising in circumstances where there has been a knowing
misrepresentation by a member of the Board’s management, regardless of whether such person was acting in the
Board’s interest. This indemnification will survive termination of this letter.

During the course of our engagement, we may accumulate records containing data that should be reflected in your
books and records. You will determine that all such data, if necessary, will be so reflected. Accordingly, you will not
expect us to maintain copies of such records in our possession.

The assistance to be supplied by your personnel has been discussed and coordinated with Laura Matheny, Treasurer
for the Board. The timely and accurate completion of this work is an essential condition to our completion of our
services and issuance of our report.


The attest documentation for this engagement is the property of Suttle & Stalnaker, PLLC and constitutes confidential
information. However, we may be requested to make certain attest documentation available to Federal or State
regulatory authorities pursuant to authority given to it by law or regulation. If requested, access to such attest
documentation will be provided under the supervision of Suttle & Stalnaker, PLLC personnel. Furthermore, upon
request, we may provide copies of selected attest documentation to Federal or State regulatory authorities. The
Federal or State regulatory authorities may intend, or decide, to distribute the copies or information contained
therein to others, including other governmental agencies.

In the event we are requested or authorized by the Board or are required by government regulation, subpoena, or
other legal process to produce our documents or our personnel as witnesses with respect to our engagements for the
Board, the Board will, so long as we are not a party to the proceeding in which the information is sought, reimburse
us for our professional time and expenses, as well as the fees and expenses of our counsel, incurred in responding to
such requests.

It is agreed by the Board and Suttle & Stalnaker, PLLC or any successors in interest that no claim arising out of services
rendered pursuant to this agreement by or on behalf of the Board shall be asserted more than two years after the
date of the last report issued by Suttle & Stalnaker, PLLC.

By signing this engagement letter, you authorize us to use the name of your entity in future proposals, as well as
provide contact information for requested references.

You may request that we perform additional services not contemplated by this engagement letter. If this occurs, we
will communicate with you regarding the scope of the additional services and the estimated fee. We also may issue a
separate engagement letter covering the additional services. In the absence of any other written communication from
us documenting such additional services, our services will continue to be governed by the terms of this engagement
letter.

We appreciate the opportunity to assist you 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 attached copy and return it to us. If the need for additional procedures arises,
or the procedures need to be modified, our agreement with you will need to be revised. It is customary for us to
enumerate these revisions in an addendum to this letter. If additional specified parties of the report are added, we
may require that they acknowledge in writing their agreement with the procedures performed or to be performed
and their acknowledgment that the procedures are appropriate for their purposes.

Very truly yours,

Kane ss Mlk Puce

Suttle & Stalnaker, PLLC

This letter correctly sets forth the understanding of Jackson County Board of Education:

Signature

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