[Lnc-business] update from the Audit Committee

[Alicia Mattson]

Below I am forwarding a message at the request of the chair of the Audit
Committee.

-Alicia

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Dear members of the LNC,

The Audit Committee met this weekend to discuss how to proceed with the
audit of 2015.

Gelman, Rosenberg and Freedman performed work on the 2014 financial
statements beyond the scope of the engagement letter in the amount of
$2,198.50 to correct accounting errors.  We have not yet paid them for this
and they will not commence the audit of 2015 unless this matter is
resolved.

We had an existing verbal agreement with GRF that no work should be
performed beyond scope.  And while we could push the matter and insist that
they should have notified us of any out-of-scope work that was required
prior to performing it, the reality is that the work needed to be done to
conclude the audit for that year.  Just to be clear, these extra charges
are unrelated to the work the audit committee performed examining our own
internal controls and procedures.

To prevent any misunderstanding of this nature in the future, we will
elevate into writing the requirement that any work the auditor believes
necessary to be performed beyond scope be pre-approved by the audit
committee in writing prior to such work being performed.

We intend to have Robert Kraus make the additional $2,198.50 payment and
authorize GRF to commence work on the 2015 financial statements.  We have
briefed Chairman Sarwark on this and he suggested that we give the LNC a
heads-up on this matter.  We agreed that made sense.

If you have any questions, please feel free to let us know.

Sincerely,

Aaron Starr
(805) 583-3308 Home
(805) 404-8693 Mobile
starrcpa at gmail.com
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