Levitt Report - NHL.com

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UNIFIED REPORT OF OPERATIONSREPORTING PACKAGEURO Special Purpose Audit Report and Financial StatementsEach Club must provide the League with the Special Purpose Report as described inour memo dated September 2, 2003 and noted below along withyour Club’s audited financial statements which cover the 2002-03 playing seasontogether with a detailed reconciliation schedule of the revenues and operatingprofit/(loss) reported in the URO to the audited financial statementsThe Independent Auditor’s Special Purpose Report should read as follows:Board of Governors ofThe National Hockey LeagueReport of Independent AuditorsWe have audited the accompanying balance sheets of __________Member Club(the “Member Club”) as of _________, and the related statements of operations,changes in stockholders’ equity (deficit) and cash flows for the year(s) then ended.These financial statements are the responsibility of the Member Club’s management. Ourresponsibility is to express an opinion on these financial statements based on ouraudit(s). We conducted our audit(s) in accordance with auditing standards generallyaccepted in the United States [Canada - for Canadian Teams]. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statement presentation.We believe that our audit(s) provide a reasonable basis for our opinion.In our opinion, the financial statements referred to above present fairly, in all materialrespects, the financial position of _______ Member Club at _________, and the resultsof its operations and its cash flows for the year(s) then ended in conformity withaccounting principles generally accepted in the United States [Canada - for CanadianTeams].Our audit(s) was (were) conducted for the purpose of forming an opinion on the financialstatements taken as a whole. The Unified Report of OperationsSchedule I and XII for the ________ Member Club is presented for purposes ofadditional analysis and is not a required part of the financial statements. Suchinformation has been subjected to the auditing procedures applied in our audit(s) of thefinancial statements and, in our opinion, is fairly stated in all material respects in relationto the financial statements taken as whole.URO Instructions – September 2003 512/18/2003 10:50 AM
UNIFIED REPORT OF OPERATIONSREPORTING PACKAGEAs noted in the September 2, 2003 memo, this Special Purpose Audit report will be in lieu of the“Comfort Letters” previously required of all 30 clubs under the URO instructions. In addition, asmall group of clubs randomly selected by our project auditors may be required to provide an “Agreed Upon Procedures Report.” We will notify those clubs selected in October of theirselection, the additional procedures to be performed and the form of the report to be issued byyour Club’s local auditors.Obviously, because of different structures, some Clubs may require more than one entity to beaudited in order to be able to opine on both the Club and Affiliated Entity results reported in theURO. For example, to the extent that NHL hockey-related income or expenses are reportedthrough an Affiliated Entity and that entity is not consolidated with your Club’s results, two (ormore) Special Purpose Audit Reports may be required: one for the entity which owns the Club(i.e., the results reported in the Club column of the URO), and one for each Affiliated Entity forwhich NHL hockey-related income has been reported (i.e., the results reported in the AffiliatedEntity column of the URO). To the extent that an audit is done at a higher consolidated level,the auditor should be able to opine on both the Club and the Affiliated Entity results reported inthe URO in the same Report. Having said that, each club will need to work through theirindividual issues, such as different year-ends and entities with their local auditors. We have hadmany discussions with Teams and their auditors on these issues to date. As your concerns andissues arise, you should contact us for ideas, assistance or guidance, as you deem necessary.OtherThe enclosed forms and the detailed by line item instructions have been prepared toassist you in preparing your package. All amounts must be stated in thousands ofdollars. Any assumptions incorporated in the financial information that deviate fromthese specific instructions must be described to ensure the accuracy of the report.FILING REQUIREMENTS1. The completed URO package and accompanying financial statements (includingarena affiliated entity’s financial statements, if appropriate) must be submitted indraft form along with the draft Special Purpose Audit Report that the auditorsare prepared to issue, to the League office no later than October 20, 2003.2. The final URO, Special Purpose Audit Report and accompanying financialstatements must be submitted to the League office no later than November 24,2003.Submit all your information to:Lowell HeitNational Hockey League1251 Avenue of the AmericasNew York, NY, 10020P: (212) 789-2675 F: (212) 789-2060Email: lheit@nhl.comWe thank you in advance for your cooperation. Should you have any questions, pleasedo not hesitate to contact us at the League office.URO Instructions – September 2003 612/18/2003 10:50 AM
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Page 29 and 30: UNIFIED REPORT OF OPERATIONSREPORTI
Page 31: UNIFIED REPORT OF OPERATIONSREPORTI
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Page 81 and 82: Appendix HForm Of Agreed Upon Proce
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