SWCASR FINANCIAL REPORT 12-31-2001

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O Sherburne/Wright Counties Cable Communication Commission October 30,2002 Page Two 0 As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement,we performed tests of compliance with certain provisions of laws,regulations, contracts and grants. However,the objective of our tests was not to provide an opinion on compliance with such provisions. We noted no instances of noncompliance with provisions of laws, regulations,contracts and grants. Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter,we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the Commission are described in Note 1 to the fmancial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2001. We noted no transactions entered into by the Commission during the year that were both significant and unusual, and of which,under professional standards,we are required to inform you,or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the general-purpose financial statements and because of the possibility that future events affecting them may differ significantly from those expected. Audit Adjustments For purposes of this letter,professional standards define an audit adjustment as a proposed correction of the fmancial statements that, in our judgment,may not have been detected except through our auditing procedures. An audit adjustment may or may not indicate matters that could have a significant effect on the Commission's financial reporting process(that is,cause future financial statements to be materially misstated).In our judgment,none of the adjustments we proposed,whether recorded or unrecorded by the Commission,either individually or in the aggregate,indicate matters that could have a significant effect on the Commission's financial reporting process. Disagreements with Management For purposes of this letter,professional standards define a disagreement with management as a matter,whether or not resolved to our satisfaction,concerning a financial accounting,reporting or auditing matter that could be significant to the general-purpose financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Consultations with Other Independent Accountants hi some cases,management may decide to consult with other accountants about auditing and accounting matters,similar to obtaining a"second opinion"on certain situations. If a consultation involves application of an accounting principle to the Commission's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,there were no such consultations with other accountants. Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters,including the application of accounting principles and auditing standards,with management each year prior to retention as the Commission's auditors. However,these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing our audit.