Levitt Report - NHL.com

Appendix H (cont’d)11. We obtained an explanation from management of the (insert club name) of procedures torecord concession revenue on hockey nights. For hockey games, we agreed amountsrecorded as concession revenue to either cash receipts records or third-party reports.12. We obtained an explanation from management of the (insert club name) of procedures torecord novelty revenue on hockey nights. For hockey games, we agreed amountsrecorded as novelty revenue to either cash receipts records or third-party reports. Fornovelty items, we calculated the margin by comparing the selling price per sales records andcost per vendor invoice. We compared these margins to the margin for novelty revenue in theURO.13. We agreed the total on the player salary schedule in the URO to the total of player costs in theURO. For players, we compared the salary per the schedule to the player’s contract.14. We compared the arena operating costs for the year ended June 30, 2003 to the arenaoperating costs in the prior year that was audited.15. We compared the general and administrative costs for the year ended June 30, 2003 to thegeneral and administrative costs in the prior year that was audited.16. We obtained a representation letter from management addressing accuracy and completenessof the URO, compliance with URO instructions, appropriateness of allocations and disclosureof related party transactions.We were not engaged to, and did not, perform an audit, the objective of which would be theexpression of an opinion on the URO. Accordingly, we do not express such an opinion. Had weperformed additional procedures, other matters might have come to our attention that would havebeen reported to you.This report is intended solely for the information and use of the team and the NHL and theirrepresentatives, and is not intended to be and should not be used by anyone other than thosespecified parties.Very truly yours,Date