Gary Konecky, CPA

May, 2006 Update on Radburn Association Audit

On January 3, 2006, Gary Konecky, CPA wrote an open letter to the Radburn Association Board of Trustees. In that letter he called for an immediate audit of the Radburn Association's 2005 financial statements and for a study of the Radburn Association's internal controls by an independent CPA firm.

On February 26, 2006, Konecky wrote the Board of Trustees and explained why the Radburn Association Manager should not have any involvement in the screening, interviewing or selection of the auditors.

On March 3, Don Morris replied to Gary Konecky's letter.

On April 6, Gary Konecky replied to Mr. Morris's letter, see attached

On April 19, Gary Konecky made a presentation to the Radburn Citizens' Association. In that presentation, he made reference to numerous tools that were available to help the Board of Trustees select an auditor, communicate with their auditor, and to assist the committee charged with oversight of the audit The Trustees (Mr. Morris and Mr. Bray) admitted that they used none of these tools. Ms. Orlando, who recommended the auditor, admitted that she used none of these tools, when soliciting proposals, screening auditors, interviewing auditors, or when making her recommendation to as to which auditor to hire to the Board of Trustees.

Links to these tools are:

http://aicpa.org/audcommctr/toolkitsnpo/Internal_Control.htm

http://aicpa.org/audcommctr/toolkitsnpo/Evaluating_Independent_Auditor.htm

http://aicpa.org/audcommctr/toolkitsnpo/Audit_Committee_Self_Evaluation.htm

http://aicpa.org/audcommctr/toolkitsnpo/SampleRFP_for_CPA_Services.htm

http://aicpa.org/audcommctr/toolkitsnpo/Fraud.htm

http://aicpa.org/audcommctr/spotlight/achilles_heel.htm see page 9 – Communications With Independent Auditors

During the April 19 meeting, the Trustees stated that they have not meet with the auditor. They also stated that the Trustee's finance committee (which would be the equivalent of the audit committee) has not met this year. Additionally, the Trustees stated that they never voted to appoint the independent auditor, which indicates that the selection of the independent auditor was made by the Radburn Association anager, the same manager whose work (as it relates to the financial statements) will be audited by the auditor she selected.