June 15, 2009 - District of Mission

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District of Mission — 2008 Audit Results and Communication
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Audit Findings
There are a number of matters that arose during the audit that we would like to bring to your attention,
although nothing that negatively impacted the audit. Each of these matters is summarized briefly below. We
would be pleased to discuss any of these items in more detail at our upcoming meeting.
Fraudulent and Illegal Activities
Our audit procedures were performed for the purpose of forming an opinion on the financial statements
and although they might bring possible fraudulent or illegal activities to our attention, our audit
procedures were not designed to detect fraudulent or illegal activities.
In any event, we did not detect any fraudulent or illegal activities, or material misstatements resulting
from fraudulent or illegal activities during our audit.
Disagreements with Management
There were no significant disagreements with management.
Litigation Proceedings
We have communicated directly with the District's various legal counsels, who have indicated that there
are possible material claim outstanding against the District described the Cedar Connector Expropriation
Claims — the amount of which will likely be $1 million. This has already been identified in our audit in the
previous year.
The best estimate of the claim amount (i.e. $1 million) has been paid to the lawyers reserve and had been
previously expensed in the District's accounts.