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Home My WebLink AboutMathis West Huffines Co PC Midwestern Correspondence TE�AS �T�J �NT 6-��ll�6NG � R,� RAT'10 — �l1 P OJE�"i 2650 J.T'. �1'TIt�C�R &Z� E�TLAKE, TEXAS 76262 May 18, 2005 fl�athis,West, Huffines �Co., P.C. P.t�. Box 970Q0 Wichita Fafls, Texas 76307-7000 We are providing this ietter in connecfion with your audits o# the statements of financial position flf #he Texas Student �iousing Carparation — MSll Project as of August 31, 20Q4 and 2003 and the related statements of activities and cash flovvs for the tvvelve and fihirteen months then ended for the purpose of expressing an opinion as to whefiher the financial statements present fairly, in all materiai respects, the financial position, changes in net assets, and cash flows of the Texas �tudent Housing Corporation — MSU Project in conformity with U.S. generally accepted accounting principles. We confirm fihat we are rPsnonsibl� for the fair presentation in the financial stafements of financial position chanaes in net _ assets, and cash flows in conformi#y with generally accepted accounting principles. We are also responsible for adopting sound accounting policies, establishing and maintafning in#ernal controi, and preventing and detecting fraud. We confirm, to fihe best of our knowledge and belief, the following represenfations made to you during your audits. 1. The #inancial statements referred to above are fairly presented in conformity with U.S. generally accepted accaunting principles and include all assets and liabilities under#he Corporation's con#rol. 2. VVe have made available to yau aii— a. Financial records and relafed data. b. #l�inutes of the meetings of the Baard of Directors. We have disclosed to you that there have been no Board meetings since the inception of the Corporation. 3. iher� have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 4. There are no material transactions that have r�ot besn properiy recorded in the accaun#ing records underlying the financial sfiatements. 5. We believe the effects of the uncorrected financia! statement misstatements summarized in the afitached schedule are immaterial, both individually and in the aggregate, to the financial statements taken as a�hole. 6. We acknowiedge our responsibiiity for the design and irrtpiementation af programs and controls #o prevent and detect fraud. 7. We have no knowledge of any fraud or suspected fraud affecting the Corporation invoiving— a. Management, b. Others who have significant roies in internal control,or c. O#hers where the fraud could have a materia! effect on the financiai statements. Mathis, West, Huffines & Co., P.C. Wichita Falls, Texas May 18, 2005 Page Two 8. We have no knowledge of any aiiegations of fraud or suspected fraud affecting the Corporation received in communicafiions from Midwestern State Univsrsity {MSU) employees, former MSU emplayses, grantors, regulatars, or others. 9. The Corporation has no plans or infentions that may materialiy affect the carrying value or classification of assets, liabilities, or net asset balances. 9t�. The following, if any, have been properly recorded or disclosed in the financial stafements: a. Related party transactions, including revenuss, expenses, loans, transfers, leasing arrangements, and guarantses, and amaunts receivabie from or payabie to related parties. b. Guaranfees, vvhether written or oral, under which the Carporation is contingently liabie. factors and signifiicant assumptions underlying those estimates, and we believe the estimates are reasonabie in the circumstances. 11. There are no estimates tha# may be subject to a materiai change in the near term that have not been properly disclosed in the financial statements. We understand that near term means the period within one year of the date af the financial statements. in addition, we have no knowledge of cancentratsons existing at the date of the financial statements #hat make the Corporation vulnerabls to fihe risk of severe impact that have not been properly disclosed in the financial statements. 12. We are responsible for compliance with the laws, reguiations, and provisions of contracts and granf agreements applicable to us; and we have identified and disclosed to yau all faws, regulations and provisions of contracts and grant agreernents that we believe have a direct and material effect on the determination of financial statement amounts. 13. The Texas Student Housing Corporation — �SU Project is an instrumentafity of the Town of U'Vesfilake, Texas and is an exempt organization under SectiQn 501(a} of the Internal Revenue Code. Any activities of which we are aware that vvould jeopardize the Corporatian's #ax-exempt s#atus, and a!I activities subject to tax on unrelated business income or excise or other fax, have been disciosed to you. Thera are no required filings with tax authorities. 14. T1�ere are no— a. Violations or possible vioiations of laws and regulatians and provisions of contracts and grant agreements whflse effects should be cansidsred for disclosure in the financial statements or as a basis far recording a loss contingency. b. We are not aware of any pending or fihreafened litigation, claims, or assessments #hat are required #a be accrued or disclosed in the financial statements in accordance with Statement of Financial Accaunting Standards IVo. 5, Accourrting for Continger�cies, and we have not consulted a lawyer concerning litigation, claims, or assessments. c. Other liabilities ar g�in or loss contingencies that are required fio be accrued or disclosed by Statement of Financial Accounting Standards No. 5. �. L�esi�n�tit�ns �f net ass�ts disclose� to you that �rere not properly authoriz�d and approved, or reclassifications of net assets that have not been properly reflected in the financial statements. f�athis, iNest, Huffines &Ca., P.C. Wichita Falls, Texas f�ay 1$, 2005 Page Thrae 15. The Corporation has satisfactory title to a!I owned assets, and there are na liens or encumbrances on such assets nor has any asset been pledged. 16. We have complied wifih a(J restrictions on resources {inciuding dondr restrictic�ns) and ail aspects of contractual and grant agreemen#s that would have a material effect on the financial sfiatements in fihe event of noncompliance. This includes compiying with donor requirements to maintain a specific asset composi�ion necessary to safisfy their restrictions. No events nave occurred subsequent fo the statement of financial position date and through the date of this I�tter that would require adjustment#o, or disclosure in, the financial stafiements. Texas Stu nt Housin r oration—MSU Project: Title: Signed:_� � Title:�✓J �� 1 ��- Midwestern State University (only those items pertaining to MSU as manager ofi the Sunwatcher Village, the Corporation's student housing fiacility): Signed: Ti#le: ATf-61.S WEST I-IIJFFIPiIES & CO.. P.C>`. CapitalCenter • IndianaatSeventh Certified Pubiic Accountants P.O.Box 97000 • Wichita Falls,Texas 76307-7000 (940)723-'1471 � FRX(940)723-2251 ' Email medgin mwh acom • www.mwhpacom Niichaei D. Edgin, CPA June 8, 20Q5 Gai! Ferguso A Midwest�State University 3410 aft Bouievard � hita Falls, Texas 76308-2099 Dear Gaii: Upon the Bank af New York's approval of the definition of `Fixed Charges' for the computation of the Fixed Charges Coverage Ratio, I have finalized the Financial Statements and Independent Auditor's Report for the Texas Student Housing Corporation — MSU Project as of August 31, 2004 and 2003, and the twelve and thirteen months ended, respectively. Consequently, please find eight copies of the Financiai Statements and Independent Auditor's Reporf for distribution and for your records. As we have discussed, I am mailing directly to Pete Ehrenberg two copies for his records. Soon I will prepare the engagement letter for the audit as of August 31, 2005 and for the year then ended. Additionally, I wouid like to establish the audit dates soon to meet the 120 day filing deadline; therefore, please let me know when you think the accounting records will be ready for audit in the fall. Thanks again far all of your assistance during the audit process. Sincerely, �:r..�� . Michael D. Edgin, CPA cc: �Pete Ehrenberg Texas Student Housing Corporation —MSU Project 2650 J.T. Ottinger Rd. Westlake, Texas 76262