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3407 SW CORBETT AVENUE

PORTLAND, OR 97239

10900 NE 8th STREET, STE 1000 PMB 136
BELLEVUE, WA 98004

503.227.1165 phone 503.227.1423 fax
cpa@schwindtco.com
Members American Institute of
Certified Publi
A Professional Corporation
Members American Institute of
Certified Public Accountants /
Oregon Society of Certified Public
Accountants






EXECUTIVE SUMMARY


Crestwood Terrace Condominium Owners Association

Proposal for Financial Services

Year Ended December 31, 2013





Engagement

Audited Financial Statements year ended 12/31/13 $3,500

Reviewed Financial Statements year ended 12/31/13 $2,000

Audited Financial Statements for the years ended
12/31/09, 12/31/10, 12/31/11, 12/31/12, and 12/31/13


$12,500
















See Attached Engagement Letter


3407 SW CORBETT AVENUE
PORTLAND, OR 97239

10900 NE 8th STREET, STE 1000 PMB 136
BELLEVUE, WA 98004

503.227.1165 phone 503.227.1423 fax
cpa@schwindtco.com
Members American Institute of
Certified Publi
A Professional Corporation
Members American Institute of
Certified Public Accountants /
Oregon Society of Certified Public
Accountants
June 13, 2014


Board of Directors
Crestwood Terrace Condominium Owners Association
1660 N. 18
th
Street
Washougal, WA 98671

Dear Directors:

We are pleased to confirm our understanding of the accounting and tax services to be provided to Crestwood Terrace
Condominium Owners Association. We presently provide accounting and tax services to over 500 Homeowner Associations
in the Pacific Northwest. This client base coupled with over twenty years of experience in the Homeowner Association
industry distinguishes our firm as one of the leaders in providing quality and timely accounting services to Homeowners
Associations.

If an audit engagement is selected, we will audit the balance sheet- cash basis of Crestwood Terrace Condominium
Owners Association as of December 31, 2013, and the related statements of revenue and expenses, changes in fund
balances cash basis for the year then ended. The document we submit to you will include supplementary information
about future major repairs and replacements required by the American Institute of Certified Public Accountants. Although
we will apply certain limited procedures with respect to the required supplementary information, we will not audit the
information and will not express an opinion on it.

The objective of our audit is the expression of an opinion about whether your financial statements are fairly presented, in
all material respects, in conformity with the cash basis of accounting. Our audit will be conducted in accordance with U.S.
generally accepted auditing standards and will include tests of your accounting records and other procedures we consider
necessary to enable us to express such an opinion. If our opinion is other than unqualified, we will discuss the reasons
with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an
opinion, we may decline to express an opinion or to issue a report as a result of this engagement.

Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts and direct
confirmation of cash, investments and certain other assets and liabilities by correspondence with selected members, creditors
and banks. Our procedures will not determine whether the funds designated for future major repairs and replacements are
adequate to meet such future costs because such a determination is outside the scope of the engagement. We will request
written representation from your attorney as part of the engagement and he may bill you for responding to this inquiry. At the
conclusion of our audit, we will request certain written representations from you about the financial statements and related
matters.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements;
therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested.
Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement, whether from errors, fraudulent financial reporting, misappropriation of assets, or violations of
laws or governmental regulations that are attributable to the Association or to acts by management or employees acting on
behalf of the Association. Because an audit is designed to provide reasonable, but not absolute, assurance and because we
will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be
detected by us. In addition, an audit is not designed to detect immaterial misstatements, or violations of laws or
Crestwood Terrace Condominium Owners Association
June 13, 2014
Page 2
governmental regulations that do not have a direct and material effect on the financial statements. However, we will
inform you of any material errors that come to our attention, and we will inform you of any fraudulent financial reporting
or misappropriation of assets that comes to our attention. We will also inform you of any other violations of laws or
governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is
limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as
auditors.

Our audit will include obtaining an understanding of internal control sufficient to plan the audit and to determine the
nature, timing, and extent of audit procedures to be performed. An audit is not designed to provide assurance on internal
control or to identify reportable conditions, that is, significant deficiencies in the design or operation of internal control.
However, during the audit, if we become aware of such reportable conditions, we will communicate them to you.

The AICPA has issued new Statements on Auditing Standards and have amended existing Standards effective for audits
of financial statements for periods beginning on or after December 15, 2006. These interrelated Audit Risk Standards are
required to be performed in order to assess certain audit risks. These standards are expected to improve the quality and
depth of understanding of the entity, its internal controls, the assessment of the risk of material misstatements, and control
weakness. It is estimated that in order to comply with these new requirements, we will be required to spend significant
additional time on all audit engagements.

We understand that you will provide us with the basic information required for our audit and that you are responsible for
the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their
application and will assist in the preparation of your financial statements, but the responsibility for the financial
statements remains with you. That responsibility includes the establishment and maintenance of adequate records and
effective internal controls over financial reporting, the selection and application of accounting principles and the
safeguarding of assets. You are responsible for adjusting the financial statements to correct material misstatements and for
confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by
us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the
aggregate, to the financial statements taken as a whole. You are responsible for the design and implementation of
programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the
Association involving (a) management, (b) employees who have significant roles in internal control, and (c) others where
the fraud could have a material effect on the financial statements. You are also responsible for informing us of your
knowledge of any allegations of fraud or suspected fraud affecting the Association received in communications from
employees, former employees, regulators, or others. In addition, you are responsible for identifying and ensuring that the
Association complies with applicable laws and regulations.

We understand that your employees will locate any documents selected by us for testing.

If a review engagement is selected, we will review the balance sheet cash basis of Crestwood Terrace Condominium
Owners Association as of December 31, 2013, and the related statements of revenues and expenses and changes in fund
balance cash basis for the year then ended, and issue an accountants report thereon in accordance with Statements on
Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.

The objective of a review engagement is to obtain limited assurance that there are no material modifications that should be
made to the financial statements in order for the statements to be in conformity with the cash basis which is a
comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.

Our review will consist primarily of inquiries of association personnel and analytical procedures applied to financial data.
A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the
financial statements as a whole. A review does not contemplate obtaining an understanding of the Associations internal
control; assessing fraud risk; testing accounting records by obtaining sufficient appropriate audit evidence through
inspection, observation, confirmation, or the examination of source documents; or other procedures ordinarily performed
during an audit. Thus, a review does not provide assurance that we will become aware of all significant matters that would
Crestwood Terrace Condominium Owners Association
June 13, 2014
Page 3
be disclosed in an audit. Accordingly, we will not express an opinion regarding the financial statements as a whole. In
addition, the document we submit to you will include supplementary information about future major repairs and
replacements required by the American Institute of Certified Public Accountants. We will compile the required
supplementary information, but we will not audit or review such information, or express an opinion or any other form of
assurance on it.

Our engagement cannot be relied upon to disclose errors, fraud, or illegal acts that may exist. However, we will inform the
appropriate level of management of any material errors and of any evidence or information that comes to our attention
during the performance of our review procedures that fraud may have occurred. In addition, we will inform you of any
evidence or information that comes to our attention during the performance of our review procedures, regarding illegal
acts that may have occurred, unless they are clearly inconsequential. In addition, we have no responsibility to identify and
communicate deficiencies in your internal control as part of this engagement.

If, for any reason, we are unable to complete our review of your financial statements, we will not issue a report on such
statements as a result of this engagement.

New IRS requirements oblige us to disclose that certain client information may be provided to third party contractors such
as payroll tax processors, tax return processing software providers, tax and accounting consultants and other service
providers used in providing services to our clients. These providers are obligated to only use this information in
performing services for our clients and are forbidden to disclose any information to outside parties.

The Association understands that during the course of Schwindt and Co.s review of the Associations financial statements
that information may be discovered that may require the Association to adjust its books and records. We may ask the
Association to assist us in formulating potential adjustments. If such adjustments are provided to the Association, the
Association acknowledges that the responsibility with understanding the adjustments, deciding which adjustments to post and
communicating any decisions with respect to such adjustments are the Associations responsibility.

You are responsible for the following in connection with performance of our review services and the tax preparation
aspects of the engagement:

Making all management decisions and performing all management functions;
Designating a competent employee, preferably within senior management, to oversee our services;
Preparation and the fair presentation of the financial statements in accordance with the applicable financial
reporting framework;
Designing, implementing, and maintaining internal controls relevant to the preparation and fair presentation
of the financial statements;
Preventing and detecting fraud;
Identifying and ensuring that the Association complies with the laws and regulations applicable to its
activities;
Making all financial records and related information available to us and for the accuracy and completeness of
that information;
Evaluating the adequacy and results of the services performed;
Accepting responsibility for the results of the services; and
Providing to us, at the conclusion of the engagement, a letter that confirms certain representations made
during the review.

The Association agrees to provide Schwindt & Co. with copies of all requested documents in advance of beginning work.
The Association furthermore agrees to provide Schwindt & Co. with a trial balance of the year being reviewed, all balance
sheet accounts reconciled and adjusted to agree to supporting documentation and fund balances reconciled to beginning
and ending balances. The Association understands and acknowledges that it has the responsibility to provide us with
unrestricted access to persons within the Association from whom we determine it necessary to obtain audit evidence. The
Crestwood Terrace Condominium Owners Association
June 13, 2014
Page 4
Association recognizes that they may be charged for making copies and if accounts are not reconciled, additional work
may be required resulting in a revised fee quote.

Based on our knowledge of the Associations records, we estimate that our fees for the review will be $2,000 for a one-year
engagement, our fees for the audit will be $3,500 for a one-year engagement, and our fees for the audit for the years ended
December 31, 2009, December 31, 2010, December 31, 2011, December 31, 2012, and December 31, 2013 will be $12,500.
You may also be billed for travel and other out-of-pocket costs such as report production, typing, postage, etc. The fee
estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not
be encountered during the review. If significant additional time is necessary, we will discuss it with you and arrive at a new
fee estimate before we incur the additional costs. Our invoices for these fees will be rendered each month as work progresses
and are payable on presentation.

The Association agrees to provide Schwindt & Co. with a signed management representation letter and to sign and
return proposed adjusting journal entries, if applicable, within 45 days after the review report date. If the
requested signed documents are not provided within this time frame, additional fees may apply.

Our personnel will also be available to present these financial statements at your membership and/or board of directors
meeting(s). Our fees for these services will be based on actual time expended at our standard hourly rates.

We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the significant terms of
our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as
described in this letter, please sign the enclosed copy and return it to us.

Sincerely,

David T. Schwindt, CPA
Schwindt & Co.























Crestwood Terrace Condominium Owners Association
June 13, 2014
Page 5

RESPONSE:

This letter correctly sets forth the understanding of Crestwood Terrace Condominium Owners Association.

Please check boxes for services selected:
Financial Statement Audit Engagement for the year ended December 31, 2013 - $3,500
- or -
Financial Statement Review Engagement for the year ended December 31, 2013 - $2,000
- or -
Financial Statement Audit Engagement for the years ended December 31, 2009, 2010, 2011, 2012, & 2013 - $12,500



Signature:

Title:

Date:

Weve designated _______________________ as our competent employee to oversee your services.

For planning and scheduling purposes, please list your desired due dates below. If you would like a member of our firm to
present the financial statements, please list the desired meeting time and place below. We will call you to confirm these dates.

Desired draft due date:

Desired final due date:

Presentation of financial statements: Yes No

Desired presentation time/place:


In order to meet the Associations desired due date as indicated, an eight week turnaround time is required from the
date we receive all the requested information. However, if there are special circumstances that require it to be
completed in less than eight weeks, we can work to accommodate those needs.