January 22, 1992
TO: AUDIT COMMITTEE NO. 1-92
RE: FY 1991 Audit Report and Management Letter
______________________________________________________________
Enclosed is the financial report of the independent auditors
for fiscal year 1991 ending September 30, 1991. The financial
results are basically the same as those provided in our internal
financial statements sent to you earlier.
We have the following comments concerning the management
letter:
1. Although it is dated November 27, 1991, it was received
in our office on January 16.
2. Recommendation concerning routing of vendor invoices-
This comment is made each year and we have not changed
the procedure because our automated system is not set
up to handle invoices in the manner the auditors
suggested. This item was discussed in some detail
with the Audit Committee when we met in October.
3. Recommendation concerning capitalization of organi-
zational costs related to the data project -
We will monitor this issue during the current fiscal
year. However, we do not believe current costs
related to this project justifies capitalization and
amortization.
4. Recommendation of accounting for post retirement
benefits -
Each year (for the past two fiscal years) we have
reviewed whether it would be prudent to implement
FAS 106 earlier than the date required. In each
case, we have determined that earlier implementation
would not have a material impact on the ultimate cost
that will result due to FAS 106. We will continue to
review this each fiscal year.
5. Recommendation on accounting policies and procedures-
Implementation of an accounting policy manual is in
the program of work for the controller for this current
fiscal year.
Please let me know if you have any questions.
Thomas S. Simmons
Vice President - Administration
Enclosure