1988-1990-FISCAL AUDITS AND REPORT OF EXAMINATION - MASHPEE INDIAN MUSEUM

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Michael J. Cicoria CERTIFIED PUBLIC ACCOUNTANT f : 4 COLONEL DRIVE BOURNE. MASSACHUSETTS 02532 (508) 759.6761 r oard of Selectmen Tovn of Mashpee Mashpee, Massachusetts I have audited the general purpose financial statements of the Tovn of 4 I t Mashpee, Massachusetts for the year ended June 30, 1988, and have issued my report thereon dated January 23, 1989. As part of my audit, I made a study and y�ry evaluation of the system of internal accounting control to the extent I considered necessary to. evaluate the system as required by generally accepted auditing standards. Under these standards, the purpose of such evaluation is to establiaO_ 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 control is to provide reasonable, but not absolute, assurance concerning the method -by vhich a ,municipality safeguards its assets against loss from unauthorized use or disposition and verifies the accuracy and reliability of accounting data. A good system of internal control provides for separation of duties among employees in a . annex to establish checks in order to ensure maximum accuracy in recording transactions and to assure optimum efficiency. The concept of reasonable surance recognizes that the cost of a system of internal control should not ceed the expected benefits derived and also recognizes that- the evaluation of ese factors necessarily requires estimates and judgments by the municipality. ere are inherent limitations that should be recognized in considering the btential effectiveness of any system of internal accounting control. In the "erformance of most control procedures, errors can result from misunderstanding of DRAFT