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a a a r a a a McCALL GIBSON SWEDLUND BARFOOT PLLC Certified Public Accountants 13100 Wortliam Center Drive Suite 235 111 Ctmgress Avem;e Houston, Texas 77065-5610 Suite 400 (713) 462-0341 Austin, Texas 78701 Fax (713) 462-2708 (512) 610-2209 E-Mail: mgsWingsbplle.com evicay.mgsbulic.con; January _, 2016 Board of Directors La Porte Redevelopment Authority City of LaPorte, Texas DRAFT SUBJECT TQ CHANGE In planning and performing our audit of the financial statements of the La Porte Redevelopment Authority (Authority) as of and for the year ended September 30, 2015, in accordance with auditing standards generally accepted in the United States of America, we considered the Authority's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant • deficiencies, or material weaknesses have been identified. A deficiency in internal control exists when the design or operation of a control does not allow r management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements of the Authority's financial statements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. a Last year, and again this year, we observed the following deficiencies in the Authority's internal control that we consider to be material weaknesses. a Material Weaknesses The Authority's management consists of an appointed Board of Directors ("Directors"). Day-to-day operations are performed by private companies ("Consultants") under contract with the Authority. The Directors supervise the performance of the Consultants; however, although the Consultants can be part of a the Authority's system of internal control, the Consultants are not members of management. Ultimately, the Directors are responsible for design and implementation of the system of internal control. a Member of . American Institute of Certified Public Accountants Texas Society of Certified Public Accountants a