Selectmen’s & Administrator’s Report (cont.)recommendation, it was one in which the Board felt would the mostbeneficial in that building at this time.The Selectmen authorized the hiring <strong>of</strong> Warren Street Architects tomove forward with preliminary work on a future fire station. Work wasdone on drawings for a station on the parcel <strong>of</strong> land the <strong>Town</strong> owns onMain Street, as well as the lengthy paperwork for a shoreland protectionpermit application. Currently we have preliminary/draft plans fora building as well as a completed application which is being submittedto the Department <strong>of</strong> Environmental Services for approval. Theshoreland permit is valid for five years and it is planned that, withinthat time frame, the voters will be asked to fund the building <strong>of</strong> a newfire station.Another project that was taken on and completed was one involvingthe streetlights in town. A committee was formed to take a look at thelight locations and whether or not all <strong>of</strong> them were still necessary, ifsome could be turned <strong>of</strong>f at midnight, or if they needed to stay on asthey currently were. The committee which consisted <strong>of</strong> our core emergencyservice department heads, selectmen and public works carefullyassessed each area with lighting, held public meetings and hearingson the subject, and made recommendations to the Board based ontheir research. With the recommendations that were made there were5 removed and 15 changed to shut <strong>of</strong>f at midnight. With these changes,we hope to save an annual amount <strong>of</strong> approximately $1,200.The administration and department heads are always searching forways to save money and take advantage <strong>of</strong> grants which may be applicableto projects we’re working on and will continue to do so. Weappreciate the continued support and constructive suggestions fromthe public and look forward to more in the upcoming year.Respectfully submitted,Clyde Carson - ChairmanDavid E. Hartman - SelectmanDavid Karrick, Jr. - SelectmanLaura Buono - <strong>Town</strong> Administrator20
Report on Internal Control Based onan Audit <strong>of</strong> Basic Financial StatementsDRAFTFOR DISCUSSIONPURPOSES ONLYTo the Board <strong>of</strong> Selectmen<strong>Town</strong> <strong>of</strong> <strong>Warner</strong>, New HampshireIn planning and performing our audit <strong>of</strong> the financial statements <strong>of</strong> thegovernmental activities, each major fund, and the aggregate remainingfund information <strong>of</strong> the <strong>Town</strong> <strong>of</strong> <strong>Warner</strong>, New Hampshire (the <strong>Town</strong>) as<strong>of</strong> and for the year ended December 31, 2010, in accordance with auditingstandards generally accepted in the United States <strong>of</strong> America, weconsidered the <strong>Town</strong>’s internal control over financial reporting (internalcontrol) as a basis for designing our auditing procedures for the purpose<strong>of</strong> expressing our opinions on the financial statements, but not forthe purpose <strong>of</strong> expressing an opinion on the effectiveness <strong>of</strong> the <strong>Town</strong>’sinternal control. Accordingly, we do not express an opinion on theeffectiveness <strong>of</strong> the <strong>Town</strong>’s internal control.Our consideration <strong>of</strong> internal control was for the limited purpose describedin the preceding paragraph and was not designated to identifyall deficiencies in internal control that might be significant deficienciesor material weaknesses and therefore, there can be no assurance thatall deficiencies, significant deficiencies, or material weaknesses havebeen identified. However, as discussed below, we identified certain deficienciesin internal control that we consider to be a material weakness.A deficiency in internal control exists when the design or operation <strong>of</strong> acontrol does not allow management or employees, in the normal course<strong>of</strong> performing their assigned functions, to prevent, or detect and correctmisstatements on a timely basis. A material weakness is a deficiency,or a combination <strong>of</strong> deficiencies, in internal control, such that there is areasonable possibility that a material misstatement <strong>of</strong> the <strong>Town</strong>’s financialstatements will not be prevented, or detected and corrected ona timely basis. We consider the following deficiencies in the <strong>Town</strong>’sinternal control to be a material weakness:ObservationSEGREGATION OF DUTIESThe <strong>Town</strong> has a general ledger accounting system, which has the capabilitiesto account for the activity <strong>of</strong> more than one fund. However, as21