HomeMy WebLinkAboutWestlake Academy Final 2014 Management LetterWESTLAKE ACADEMY
MANAGEMENT LETTER
YEAR ENDED AUGUST 31, 2014
January 7, 2015
To the Superintendent
and Finance Director
Westlake Academy
Management of the Westlake Academy (the Academy) is responsible for establishing and
maintaining the Academy’s internal control structure. In fulfilling this responsibility, estimates
and judgments by management are required to assess the expected benefits and related costs
of internal control structure policies and procedures.
The Academy’s internal control structure consists of policies and procedures established by
management to provide reasonable, but not absolute, assurance that the financial data are
recorded, processed, summarized, and reported consistent with the assertions embodied in the
financial statements. In establishing those policies and procedures, management assesses their
expected benefits and related costs. Because of the inherent limitations in any internal control
structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of
any assessment of the internal control structure to future periods is subject to the risk that
policies or procedures may become inadequate because of changes in conditions or that the
degree of compliance with the policies or procedures may deteriorate.
In planning and performing our audit of the Academy’s basic financial statements for the year
ended August 31, 2014, we considered its internal control structure in order to plan our auditing
procedures for the purpose of expressing our opinion on the basic financial statements and not
to provide assurance on the internal control structure. A certain matter came to our attention
that we wish to report to you. This matter, which was considered by us during our audit of the
financial statements and does not modify the opinion expressed in our report dated January 7,
2015, is presented in the following paragraphs.
TRS On-Behalf Payments
The Academy did not include payments made by the State of Texas to the Teachers Retirement
System of Texas (TRS) on behalf of the Academy (TRS On-Behalf Payments) in the final fiscal
year 2014 General Fund budget approved by the Academy’s Board. Due to a clerical error,
approximately $257,000 of TRS On-Behalf Payments included in the original fiscal year 2014
General Fund budget was erroneously deleted from the final budget.
Although the error did not result in any unbudgeted disbursements being made, it caused the
General Fund to report total expenditures in excess of appropriations of approximately
$122,000.
Westlake Academy
January 7, 2015
Page 2
This report is intended solely for the information and use of the Academy and its management.
This restriction is not intended to limit the distribution of this letter and the accompanying
memorandum, which, upon issuance to the Academy, are a matter of public record.
If we may be of assistance in further discussion of the above comments and recommendations,
please call upon us. We appreciate the opportunity to be of service to you and the courtesies
and cooperation extended to us during our audit.
Yours truly,
WEAVER AND TIDWELL, L.L.P.