Annual report of the Town of Hampton, New Hampshire

Bigelow & Company
Certified Public Accountants, P.C.
AUDITOR / S LETTER OF TRANSMITTAL
The Board of Commissioners
Hampton Beach Village District
Hampton, New Hampshire 03842
We have examined the financial statements of the Hampton Beach Village
District, New Hampshire for the fiscal year ended December 31, 1991, in
accordance with State of New Hampshire R.S.A. 71-A:19. Included in the
examination and audit were the accounts and records of the Board of
Commissioners, Treasurer, and Trustees of Trust Funds.
As a part of our examination, we reviewed and tested the District's system
of internal accounting control to the extent we considered necessary to
evaluate the system as required by generally accepted auditing standards.
Under these standards, the purpose of such evaluation is to establish a
basis for reliance thereon in determining the nature, timing, and extent of
other auditing procedures that are necessary for expressing an opinion on
the financial statements.
The objective of internal accounting controls is to provide reasonable, but
not absolute, assurance as to the safeguarding of assets against loss from
unauthorized use or disposition and the reliability of financial records
for preparing financial statements and maintaining accountability for
assets. The concept of reasonable assurance recognizes that the cost of a
system of internal accounting control should not exceed the benefits
derived, and also recognizes that the evaluation of the factors necessarily
requires the use of estimates and judgements by district officials.
In conjunction with our audit report dated February 7,
following:
1992, we noted the
A.)
General Accounting System and Procedures
We noted that several invoices for advertising and marketing
expenditures were not centrally located with other invoices.
Discussion indicated that some of the invoices were mailed back to the
vendors with the payment. The District should maintain the originals
of all invoices.
B.)
General Fixed Assets Accounting
In general, accounting for fixed assets provides information for
estimating the amount of insurance needed, monitors asset utilization,
provides a safeguarding over the asset, and allows for depreciation to
be estimated when applicable. The district does not maintain records
for its investment in property, plant and equipment.
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MANCHESTER, NH 03104 PORTSMOUTH, NH 03801 SEABROOK, NH 03874
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