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Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements may not be detected exists, even though the audit is properly planned and performed in accordance with US GAAS and Government Auditing Standards. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any other periods. Compliance with Laws and Regulations As previously discussed, as part of obtaining reasonable assurance about whether the basic financial statements are free of material misstatement, we will perform tests of the Village’s compliance with the provisions of applicable laws, regulations, contracts, and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Management Responsibilities Our audit will be conducted on the basis that management and those charged with governance acknowledge and understand that they have responsibility: 1. For the preparation and fair presentation of the basic financial statements in accordance with accounting principles generally accepted in the United States of America; 2. For the design, implementation, and maintenance of the system of internal control relevant to the preparation and fair presentation of basic financial statements that are free from material misstatement, whether due to error, fraudulent financial reporting, misappropriation of assets, or violations of laws, governmental regulations, grant agreements, or contractual agreements; and 3. To provide us with: a. Access to all information of which management is aware that is relevant to the preparation and fair presentation of the basic financial statements such as records, documentation, and other matters; b. Additional information that we may request from management for the purpose of the audit; and c. Unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence. 4. For including the auditor’s report in any document containing basic financial statements that indicates that such basic financial statements have been audited by us; 5. For identifying and ensuring that the entity complies with the laws and regulations applicable to its activities; 6. For adjusting the basic financial statements to correct material misstatements and 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 current year period(s) under audit are immaterial, both individually and in the aggregate, to the basic financial statements as a whole; and 7. For acceptance of nonattest services, including identifying the proper party to oversee nonattest work; 8. For maintaining adequate records, selecting and applying accounting principles, and safeguarding assets; 9. For informing us of any known or suspected fraud affecting the entity involving management, employees with significant rofe in the system of internal control and others where fraud could have a material effect on the financials; and 10. For the accuracy and completeness of all information provided. -3-