To The Herald-Whig:

In CPA Dennis Koch's Nov. 1 letter to The Herald-Whig, "Auditor's terminology explained," I will point out several of Mr. Koch's misstatements.

Mr. Koch wrote, "The auditor's opinion on the financial statements themselves was a 'clean' or 'unqualified' opinion -- meaning that the district's statements contained no material misstatements."

This is false. Page 3 of the 2009 audit states the auditor's opinion was "adverse." In the auditor's Dec. 21, 2007, Regulatory Basis Engagement letter it states, "This opinion is considered by professional standards to be an 'Adverse Opinion.'"

An "Adverse Opinion" is issued when the auditor determines that the financial statements of an auditee are materially misstated. It is considered the opposite of materially incorrect, unreliable, and inaccurate in order to assess the auditor's financial position and results of operations. Investors, lending institutions and governments very rarely accept an auditee's financial statements if the auditor issued an adverse opinion.

Mr. Koch stated, "The fact that the issues were corrected and not reported as a repeat finding the following year would indicate that the matter was resolved, as auditors are required to follow up on previously reported findings."

This is false. Page 69 of the 2008 audit states the school district does not follow the Illinois Program Accounting Manual and this is a repeat finding. The year it was originally reported was fiscal year 2004. However it was originally reported by the district's previous auditor in fiscal year 1998 -- the year Mr. Koch was a School Board member and chairman of the Finance Committee. The Finance Committee has never recommended the School Board or management to correct this "finding" for the past 12 years.

As far as "auditors are required to follow up on previously reported findings," Mr. Koch should clarify this. On page 2 the audit states, Quincy Public School District No. 172's response to the findings identified in our audit ... We did not audit Quincy Public School District No. 172's response and accordingly, we express no opinion on it."

Perhaps Mr. Koch's misstatements were the result of him reviewing some other school district's audits.

Daniel Bastean

Quincy