Here is the text of the letter:
November 19, 2012
Grafton Township Supervisor Moore and Board of Trustees:
Effective upon receipt of this letter, Evans, Marshall and Pease, P.C. is resigning as the independent auditors for the year ended March 31, 2011.
This decision was reached after much consideration of the facts and circumstances that have arisen throughout our relationship and relative to the planned meeting with the Township on November 28, 2012.
Pursuant to a conversation with Supervisor Moore, it was agreed that Mr. Paul H. Thermen C.P.A. would attend a board meeting to discuss the March 31, 2011 audit and the accompanying management letter.
It was agreed that the Board would submit to our office, the questions and other items that they wished to address relative to these items only.
The decision to limit the meeting to these items was that the March 31, 2010 was completed, accepted and paid for by the Township.
It was only the March 31, 2011 audit and management letter that were not accepted by the Township, hence the meeting.
Since then Mr. Thermen has been contacted by Trustee LaPorta, first wanting to know if the information regarding the meeting that he received from the supervisor was correct.
Then, on November 13, 2012, Mr. LaPorta e-mailed Mr. Thermen and stated that he felt that it was unreasonable to limit the meeting as stated.
He goes on to say that we never met to discuss the final report of the previous audit.
Mr. Thermen and Mr. Jeff Rollefson did in fact meet with the entire board relative to the audit report and it was subsequently revised to be in agreement with the Board’s request.
Mr. LaPorta asked for permission to expand the meeting to the prior year as well.
This request was not in accordance with the understanding reached with the Township Supervisor and therefore it was unacceptable.
On November 15, 2012, Mr. LaPorta e-mailed our office again, now stating that “Myself and/or our attorney’s will be contacting the AICPA and other professional organizations in your profession to determine if this is a normal reply. We will notify them of this refusal.”
He then states “We will also invite various media (2 newspapers and 2 on-line blog newspapers) to attend this meeting, of which we will highlight Paul’s refusal.”
This is not the first threat that has come from the Board via Mr. LaPorta.
At the beginning of our engagement, Evans, Marshall & Pease, P.C. was told that if the audit of the financial statements did not coincide with the allegations put forth by him, that legal action may ensue.
Our management letter set forth a number of items that we felt should be implemented, however nothing was found to impact the fairness of the financial statements for either audit period.
In light of this and the on-going tensions between the Board and the Township Supervisor, which is no place for the certified public accountants to be, we hereby tender our firm’s resignation.
As a result of our resignation, we feel that there is no purpose to the meeting scheduled for November 28, 2012 and Mr. Thermen will not be in attendance.
We suggest that the Township retain the services of another independent certified public accountant to perform the March 31, 2011 audit.
We have already submitted our invoice for the work performed on that audit and upon payment thereof we will fully co-operate with whomever the Township chooses.
Evans, Marshall & Pease, P.C.