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

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There are inherent limitations that should be recognised in con- sidering the potential effectiveness of any system of internal ac- counting control. in the performance of most control procedures, er- rors can result from misunderstanding of instructions, mistakes of judgment, carelessness, or other personal factors. Control procedures whose effectiveness depends on segregation of duties can be circum- vented by collusion. Similarly, control procedures can be circum- vented intentionally by municipal employees, either with respect to the execution and recording of transactions or with respect to the es- timates and judgments required in the preparation of financial state- II merits. Further projection of any evaluation of internal accountingf control to future periods is subject to the risk that the procedures may become inadequate because of changes in conditions, or that the l degree of compliance with the procedures may deteriorate. Our study and evaluation of the Town' s system of internal ac- j counting controls for the year ended June 30, 1989, which were made for the purpose set forth in the first paragraph, would not neces- sarily disclose all weaknesses in the system. However, our testing and review did disclose weaknesses that we believe should be brought to your attention. .iV The sections of this letter which follow explain the specific I � areas where improvement in controls and/or systems are recommended and offer a means for corrective action. II i We wish to thank the Town officials and their staff for their co- j Operation, arid appreciate the opportunity to serve the Town of Mashpee in this engagement. We shall be pleased to discuss our comments and recommendations in greater detail, and will be available to assist in the implernenta- titin of suggested changes. November 9, 1389 fT BLISS & MARZELLI CERTIFIED PUBLIC ACCOUNTANTS i 2