Killdeer Area Ambulance District is an rural ambulance taxing district formed and operating

under NDCC 11-28.3. As a taxpayer living within the boundaries of the Killdeer Area Ambulance
District located within Dunn County, North Dakota and as an employee of the Board of
Directors, I am presenting this complaint as allowed under NDCC 115-02-01.

This complaint is presented against.

Daniel D Cox, CPA (ND Lic 3343)
Quality Assurance Audit Manager
ND State Auditor’s Office

We believe that Mr. Cox violated governmental conduct governed by law and ethics provisions
as follows;
 ND Administrative Code regarding Board of Accountancy
3-01-03-01. Code of ethics. Licensees must observe the code of professional conduct of
the American institute of certified public accountants, with references to "member"
being understood to apply to licensees. Licensees must also observe the codes of
conduct of the general accounting office, the securities and exchange commission, and
any other bodies, whenever they are relevant and applicable based on services
performed by the licensee.
 ND Century Code regarding Accountants
43-02.2-16. Confidential communications. Except by permission of the client engaging a
licensee under this chapter, or the heirs, successors, or personal representatives of such
client, a licensee or any partner, officer, shareholder, or employee of a licensee may not
voluntarily disclose information communicated to the licensee by the client relating to
and in connection with services rendered to the client by the licensee. Such information
is deemed confidential but this section may not be construed as prohibiting the
disclosure of information required to be disclosed by the standards of the profession in
reporting on the examination of financial statements or as prohibiting disclosures in
court proceedings, in investigations or proceedings under section 43-02.2-09 or 43-02.2-
10, in ethical investigations conducted by private professional organizations, or in the
course of practice reviews, or to other persons active in the organization performing
services for that client on a need-to-know basis or to persons in the entity who need this
information for the sole purpose of assuring quality control.
 Letter of Engagement dated 26 January, 2022 signed by Heath Erickson, CPA, Office of
State Auditor, page 5, paragraph 1 which reads;
“Any confidential information or data in our work papers will be safeguarded from
public disclosure.”
 Association of International Certified Professional Accounts (AICPA) Rule 102 – Integrity
and objectivity, which reads; “In the performance of any professional service, a member
shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not
knowingly misrepresent facts or subordinate his or her judgment to others.”
 Association of International Certified Professional Accounts (AICPA) Rule 102-1 which
reads; “Knowing misrepresentations in the preparation of financial statements or
 records. A member shall be considered to have knowingly misrepresented facts in
violation of rule 102 when he or she knowingly – c. Signs, or permits or directs another
to sign, a document containing materially false or misleading information.”
 Violation of the AICPA Code Of Conduct, a copy of which is attached.
 ND Century Code regarding State Auditor
54-10-22.1 State Auditor’s access to information relating to operations of governmental
entities subject to audit. The state auditor and persons employed by the state auditor
examining any information, which is confidential by law, shall guard the secrecy of such
information except when otherwise directed by judicial order or as is otherwise
provided by law.
54-10-26. State auditor’s working papers.
1. Except as provided in this section, working papers of the state auditor are not public
records and are exempt from section 44-01-18.
2. Except as provided in subsection 3, a draft audit report released to the governing
body or management of the audited entity is confidential until the final audit report
is issued or work ceases on the audit at which time the audit report becomes an
open record.

Attached please find a copy of an email dated 2022-08-02 from Cox, Daniel D dcox@nd.gov
with signature block Dan Cox, CPA Quality Assurance Audit Manager ND State Auditor’s Office
(701)328-2745 which was sent to cakleman@ndsupernet.com with the greeting to Candyce.
This email was presented in an open meeting to the Dunn County Commission accompanied by
a letter dated August 3,2022 signed by Candyce Kleemann.

Attached please find a copy of the letter of engagement between Tracey Dolezal representing
Killdeer Ambulance and Heath Erickson, CPA representing Office of the State Auditor. To our
knowledge, Mr. Cox was not a part of our audit team although he was included in some initial
emails.

Candyce Kleemann is not an employee, officer, volunteer, elected official or representative in

any manner of Killdeer Area Ambulance District. Candyce Kleemann has no right of access to
confidential records, information, reporting or other communications regarding the audit
process, confidential work papers of the auditor’s office or confidential communications the
auditor’s office required by that office with Killdeer Area Ambulance District. Killdeer Area
Ambulance did not grant Candyce Kleemann right of access to confidential information or
communications on behalf of the service with any state office, employee, or representative.
The Office of State Auditor did not inform Killdeer Area Ambulance that their representative
was communicating with Candyce Kleemann or any other party or individual on behalf of
Killdeer Area Ambulance. As part of the audit process, the office of state auditor was directed
to speak with Tracey Dolezal, Ann Hafner, Dustin Lien or Kelly Fritel as the only representatives
of Killdeer Area Ambulance.
Killdeer Area Ambulance asserts that Mr. Cox knowingly engaged in careless behavior by
communicating confidential information to individual(s) unrelated to Killdeer Ambulance who
were not authorized to receive such information.

Killdeer Area Ambulance asserts that Mr. Cox knowingly misrepresented the true status of the
audit to Candyce Kleemann in the statement, “…I can tell you that it has taken way longer than
it ever should to receive the records from them (KAAS)…” and , “…it takes less than a month
(from much larger clients) & they have taken almost 7 months.” From his words, it appears
that Mr. Cox was attempting to inflame a citizen’s opinion against Killdeer Area Ambulance.
Attached please find emails dated beginning 10 February, 2022 as evidence that Killdeer Area
Ambulance was doing their best to comply with requests from the office of state auditor and
communicating those efforts consistently. Please note that Mr. Cox was included in these
emails so he was aware that Killdeer Area Ambulance was making a good faith attempt to
cooperate. He did not communicate this effort to Candyce Kleemann, in fact, he insinuated
that Killdeer Area Ambulance was negligent in their efforts to cooperate with his office.

Killdeer Area Ambulance asserts that Mr. Cox misrepresented the progress and status of the
audit in his email and that misrepresentation caused damage to the reputation of employees of
the service, damage to the reputation of the service, financial loss to the service and erosion of
public trust which hindered the ability of Killdeer Area Ambulance to perform its function as an
Advanced Life Support Ambulance Service.

This complaint is being made in addition to being reported to Heath Erickson and Michael
Scherer, our audit team with the state auditor’s office in a meeting on 14 October, 2022.
Evidence including emails and facebook posts were provided on 15 October, 2022 and CPA
Fritel was told the incident would be investigated. We have not been made aware that the
investigation was completed or if any changes were made to prevent Mr. Cox from repeating
these behaviors in the future. In fact, our supporting documents suggest that Mr. Cox may
have communicated confidential or misleading information to additional tax payers in our
service area causing additional damages to our employees and our service.

I respectfully request the North Dakota Ethics Commission investigate my complaint and apply
any and all remediations allowed state and federal law. I certify that the information provided
in this complaint is true, correct, complete, and of my own personal knowledge. I will fully
cooperate in the process regarding this complaint.

Additional witnesses have agreed to make statements or provide additional information;

 Chairman of Killdeer Area Ambulance Board of Directors Tracey Dolezal
traceydolezal@icloud.com
 CPR Kelly Fritel Kelly.fritel@gmail.com
 Dustin Lien dustinlien@me.com
ATTACHMENTS :
 AICPA Code of Conduct
 Letter of Engagement from Office of State Auditor signed by Heath Erickson, CPA and
Director Tracey Dolezal
 Email 22 February 2022
 Email 11 April 2022
 Email 2 August 2022 from Cox to Kleemann
 Letter 3 August 2022 from Kleemann to Dunn County Commission
 Facebook Post re: DanCox by Farra Meeker
 Email 15 October 2022 reporting unethical behavior
 Email 1 December 2022
Audit Messages and emails
From Kelly Fritel <kelly.fritel@gmail.com>
hmerickson@nd.go , Scherr, Michael A. <mascherr@nd.gov> , Tracey
To Dolezal <tracey.dolezal@dunncountynd.org> , Ann Hafner
<killdeerems@ndsupernet.com>
Date 2022-10-15 9:38 am

Attachments
 Audit messages.pdf (~2.9 MB)Show options

Message Body
Heath & Mike - Attached are the email received from Dan Cox by Candyce Kleemann, a letter she wrote
regarding her discussion with him, an email from Tracey to Candyce, and some facebook comments
regarding our audit and mill levy.

Please let us know if you have any questions.

Thanks,
Kelly
From: Scherr, Michael A. <mascherr@nd.gov>
Date: Thu, Dec 1, 2022 at 8:39 AM
Subject: KAAS 2017 -2020 Draft Report & Recommendations
To: Kelly Fritel <kelly.fritel@gmail.com>, ANN <killdeerems@ndsupernet.com>, Dolezal, Tracey K.
<tracey.dolezal@dunncountynd.org>

Good Morning,

I have attached the confidential draft PDF reports for 2017-2018 and 2019-2020. Please go through these
reports and let me know if you have any questions or if they look good.

Also, per the section of state law below this report is considered working papers of the state auditor and
cannot be shared with anyone outside the Ambulance District.

54-10-26. State auditor's working papers.

Working papers of the state auditor are not public records and are exempt from section 44-04-18. Working
papers include records kept by the auditor of the procedures applied, the tests performed, the information
obtained, draft audit reports, and the pertinent conclusions reached in the engagement. Working papers
may be, at the discretion of the state auditor and unless otherwise prohibited by law, made available for
inspection. A draft audit report released to the governing body or management of the audited
entity is confidential until the final audit report is issued or work ceases on the audit. The issued
audit report is public information. The working papers of an issued audit report are public. At the discretion
of the state auditor, all or a portion of the working papers of an issued audit report may be declared
confidential. The declaration of confidentiality must state the reason for the confidentiality and the date, as
can best be reasonably determined at the time, when the working papers will be made public.

Also, I have attached a word file of the audit recommendations. Can you please enter your responses on
each highlighted section. The responses don't need to be lengthy as they can usually only be a sentence or
two. I would start with "We agree.." and then start your response. Please note that even though we did get
bank recons and capital assets for example, we will have to still give audit recommendations as these were
not initially provided until after the financials were prepared this summer by our office. If this audit would
not have occurred there would not have been capital assets or bank recons that were complete for our audit
years. Please let me know if you want me to call and go over any recommendations or anything in the
report.

Thank you!

Mike Scherr

Auditor III | Division of Local Government Audit

600 E. Boulevard Ave Dept 117, Bismarck, ND 58505

Phone: 701.328.9500 Website: nd.gov/auditor

AICPA Code of Conduct
AICPA members are bound by the AICPA Code of Professional Conduct. Rule 201 requires that
members provide professional services with competency. In the delivery of personal financial
planning services, a member shall adhere to the following Principles of Professional Conduct.

ET Section 52 – Article I – Responsibilities

In carrying out their responsibilities as professionals, members should exercise sensitive
professional and moral judgments in all their activities.

Section ET 53 – Article II – The Public Interest

Members should accept the obligation to act in a way that will serve the public interest, honor the
public trust, and demonstrate commitment to professionalism.

Section ET 54 – Article III - Integrity

To maintain and broaden public confidence, members should perform all professional
responsibilities with the highest sense of integrity.

Section ET 55 – Article IV – Objectivity and Independence

A member should maintain objectivity and be free of conflicts of interest in discharging professional
responsibilities. A member in public practice should be independent in fact and appearance when
providing auditing and other attestation services.

Section ET 56 – Article V – Due Care

A member should observe the profession's technical and ethical standards, strive continually to
improve competence and the quality of services, and discharge professional responsibility to the
best of the member's ability.
From: Tracey Dolezal <tracey.dolezal@dunncountynd.org>
Sent: Tuesday, February 22, 2022 11:14 AM
To: Erickson, Heath M. <hmerickson@nd.gov>
Cc: Cox, Daniel D. <dcox@nd.gov>
Subject: RE: Killdeer Area Ambulance Service

***** CAUTION: This email originated from an outside source. Do not click links or open attachments
unless you know they are safe. *****

Good Morning Heath,

Ann Hafner, Manager and Dustin Lien, Bookkeeper are working to retrieve ’17 & ’18 quick books
records.
We found the file on an old pc, but it is corrupt. We are fairly certain we have a backup and
Dustin is working on finding it. We have gathered both year’s bank statements and have invoices
by month for each year.
We were thinking it may be easiest to drop the records off with you in Bismarck, rather than trying
to scan everything.
Thanks,
Tracey Dolezal
KAAS Board Member

From: Erickson, Heath M. <hmerickson@nd.gov>

Sent: Thursday, February 10, 2022 12:31 PM
To: Tracey Dolezal <tracey.dolezal@dunncountynd.org>
Cc: Cox, Daniel D. <dcox@nd.gov>
Subject: RE: Killdeer Area Ambulance Service

Tracey,

Just checking in with you on the status of the records. We would like to begin this process soon and we
need to know if the four years are going to be all audit years or maybe some of them not. 2017 and on is
what we will focus on. If you want to forward this message, please do so. Thanks.

Heath Erickson, CPA

Audit Manager | Division of Local Government Audit

1655 43rd Street S., Suite 203, Fargo, ND 58103

Phone: 701.239.7286 Website: nd.gov/auditor
From: Scherr, Michael A. <mascherr@nd.gov>
Sent: Monday, April 25, 2022 8:49 AM
To: kaas_finance@ndsupernet.com
Cc: Erickson, Heath M. <hmerickson@nd.gov>; Tracey Dolezal <tracey.dolezal@dunncountynd.org>
Subject: RE: Killdeer Area Ambulance District Audit 2017-2020

Good Morning Dustin, I am just checking in to see if you had a chance to get the files needed from the
inquiry below. We will need this information as soon as possible. You can send these files to my email
here directly and if you have any questions on anything I am asking for, please call me at 701-328-9500.
Thank you for your help on this Dustin.

Mike
From: Scherr, Michael A.
Sent: Monday, April 11, 2022 3:11 PM
To: kaas_finance@ndsupernet.com
Cc: Erickson, Heath M. <hmerickson@nd.gov>
Subject: Killdeer Area Ambulance District Audit 2017-2020
Importance: High

Good Afternoon Dustin,

We were able to access the 2017 quickbooks for the Ambulance District. I am just wondering if there is a
way to get access to see the 2018, 2019, and 2020 information. If it is easier for you, you can simply
send some pdf/excel files to use from the quickbooks through email here. I am also wondering if we
could get some bank statements and bank reconciliations. Just let me know what works best for you. I
will list below what files we will need to prepare the financial statements for the ambulance district.

 1/1/2018 – 12/31/2018 Profit and Loss Statement and 1/1/2018 -12/31/2018 Profit and Loss
Detail Statement
 1/1/2019 – 12/31/2019 Profit and Loss Statement and 1/1/2019 -12/31/2019 Profit and Loss
Detail Statement
 1/1/2020 – 12/31/2020 Profit and Loss Statement and 1/1/2020 -12/31/2020 Profit and Loss
Detail Statement
 12/31/2018 Balance Sheet and 1/1/2018 – 12/31/2018 Balance Sheet Detail Statement
 12/31/2019 Balance Sheet and 1/1/2019 – 12/31/2019 Balance Sheet Detail Statement
 12/31/2020 Balance Sheet and 1/1/2020 – 12/31/2020 Balance Sheet Detail Statement
 1/1/2018 – 12/31/2018 check register for each bank statement
 1/1/2019 – 12/31/2019 check register for each bank statement
 1/1/2020 – 12/31/2020 check register for each bank statement
 12/31/2017, 12/31/2018, 12/31/2019, 12/31/2020 bank statement for ND Community
Foundation Account that is on Balance sheet (had balance of $10,185 at year end 2017)
 12/31/2018, 12/31/2019, and 12/31/2020 Bank statements and Bank reconciliations for
American Bank center and First International Bank & Trust

If it is easier to send all of these files as pdf's to me here that would work great. Just let me know what is
easier for you. Please let me know if you have any questions and thank you for the help on this!

Mike Scherr
Auditor | Division of Local Government Audit

600 E. Boulevard Ave Dept 117, Bismarck, ND 58505

Phone: 701.328.9500 Website: nd.gov/auditor
January 26, 2022

Tracey Dolezal
KAAS Board Member
25 High St.
Killdeer, ND 58640

Dear Ms. Dolezal:

This letter is to inform you of the audit of Killdeer Area Ambulance District for the years ended December 31,
2020-2017. Note that this audit is currently in delinquent status and will be now conducted by the Office of the
State Auditor. We will audit the financial statements of the governmental activities, the major fund, and the
aggregate remaining fund information that collectively comprise the basic financial statements of Killdeer Area
Ambulance District as of and for the year ended December 31, 2020-2017.

We have also been engaged to report on supplementary information other than RSI that accompanies Killdeer
Area Ambulance District’s financial statements. We will subject the following supplementary information to the
auditing procedures applied in our audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the financial statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America and will provide an
opinion on it in relation to the financial statements as a whole:

• Budgetary Comparison Schedules

Audit Objectives

The objective of our audit is the expression of opinions as to whether your financial statements are fairly
presented, in all material respects, in conformity with the modified cash basis of accounting, which is an other
comprehensive basis of accounting, and to report on the fairness of the supplementary information referred to
above when considered in relation to the financial statements as a whole.

Our audit will be conducted in accordance with auditing standards generally accepted in the United States of
America and the standards for financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States, and will include tests of the accounting records of Killdeer Area
Ambulance District and other procedures we consider necessary to enable us to express such opinions. We
will issue a written report upon completion of our audit of Killdeer Area Ambulance District ’s financial
statements. Our report will be addressed to the board of Killdeer Area Ambulance District. We cannot provide
assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for
us to modify our opinions or add emphasis-of-matter or other-matter paragraphs. If our opinions on the financial
statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we
are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express
opinions or issue reports, or may withdraw from this engagement.

We will also provide a report (that does not include an opinion) on internal control related to the financial
statements and compliance with the provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a material effect on the financial statements as required by Government
Auditing Standards. The report on internal control and on compliance and other matters will include a
paragraph that states (1) that the purpose of the report is solely to describe the scope of testing of internal
control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control on compliance, and (2) that the report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and compliance.
The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become
aware that Killdeer Area Ambulance District is subject to an audit requirement that is not encompassed in the
terms of this engagement, we will communicate to management and those charged with governance that an
audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits
contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual
requirements.

The audit of the financial statements does not relieve management or those charged with governance of their
responsibilities.

Management Responsibilities

Management is responsible for the basic financial statements and all accompanying information as well as all
representations contained therein. As part of the audit, we will assist with preparation of your financial
statements and related notes. You are responsible for making all management decisions and performing all
management functions relating to the financial statements and related notes and for accepting full
responsibility for such decisions. You will be required to acknowledge in the written representation letter our
assistance with preparation of the financial statements and that you have reviewed and provided the financial
statements and related notes prior to their issuance and have accepted responsibility for them. Further, you
are required to designate an individual with suitable skill, knowledge, or experience to oversee any non-audit
services we provide and for evaluating the adequacy and results of those services and accepting
responsibility for them.

Management is responsible for establishing and maintaining effective internal controls, including evaluating
and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following
laws and regulations; and ensuring that management is reliable and financial information is reliable and
properly reported. Management is also responsible for implementing systems designed to achieve
compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for
the selection and application of accounting principles, for the preparation and fair presentation of the financial
statements in conformity with the modified cash basis of accounting, which is an other comprehensive basis
of accounting, and for compliance with applicable laws and regulations and the provisions of contracts and
grant agreements.

Management is also responsible for making all financial records and related information available to us and
for the accuracy and completeness of that information. You are also responsible for providing us with (1)
access to all information of which you are aware that is relevant to the preparation and fair presentation of
the financial statements, (2) additional information that we may request for the purpose of the audit, and (3)
unrestricted access to persons within the government from whom we determine it necessary to obtain audit
evidence. Since most of our audit documentation becomes public information, you are also responsible for
notifying us of any confidential information you provide us so that we can properly safeguard such
confidential information.

It is the policy of the State Auditor to use the State’s Secure File Transfer System
(https://secure.intranetapps.nd.gov/itd/filetransfer/login.htm) when sending or receiving audit client computer
files. If you need assistance with this system, please notify us. Computer files should not be e-mailed to
auditors.

Your responsibilities include adjusting the financial statements to correct material misstatements and for
confirming to us in the written representation letter that the effects of any uncorrected misstatements
aggregated by us during the current engagement and pertaining to the latest period presented are
immaterial, both individually and in the aggregate, to the financial statements taken as a whole.

You are responsible for the design and implementation of programs and controls to prevent and detect fraud,
and for informing us about all known or suspected fraud affecting the government involving (1) management,
(2) employees who have significant roles in internal control, and (3) others where the fraud could have a
material effect on the financial statements. Your responsibilities include informing us of your knowledge of
any allegations of fraud or suspected fraud affecting the government received in communications from
employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying
and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and
grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of
laws, regulations, contracts or grant agreements, or abuse that we report.

You are responsible for the preparation of the supplementary information in conformity with the modified cash
basis of accounting, which is an other comprehensive basis of accounting. You agree to include our report on
the supplementary information in any document that contains and indicates that we have reported on the
supplementary information. You also agree to include the audited financial statements with any presentation
of the supplementary information that includes our report thereon. Your responsibilities include acknowledging
to us in the written representation letter that (1) you are responsible for presentation of the supplementary
information in accordance with the modified cash basis of accounting, which is an other comprehensive basis
of accounting; (2) you believe the supplementary information, including its form and content, is fairly presented
in accordance with the modified cash basis of accounting, which is an other comprehensive basis of
accounting; (3) the methods of measurement or presentation have not changed from those used in the prior
period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any
significant assumptions or interpretations underlying the measurement or presentation of the supplementary
information.

Management is responsible for establishing and maintaining a process for tracking the status of audit findings
and recommendations. Management is also responsible for identifying for us previous financial audits,
attestation engagements, performance audits or other studies related to the objectives discussed in the Audit
Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address
significant findings and recommendations resulting from those audits, attestation engagements, performance
audits, or other studies. You are also responsible for providing management’s views on our current findings,
conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the
timing and format for providing that information.

Professional standards require us to be independent with respect to Killdeer Area Ambulance District in the
performance of our services. Any discussions that you have with personnel of our office regarding
employment could pose a threat to our independence. Therefore, we request that you inform us prior to any
such discussions so that we can implement appropriate safeguards to maintain our independence.

Other Services

We will also assist in preparing the financial statements and related notes of Killdeer Area Ambulance District
in conformity with the modified cash basis of accounting based on information provided by you. These non-
audit services do not constitute an audit under Government Auditing Standards and such services will not be
conducted in accordance with Government Auditing Standards. We will perform the services in accordance
with applicable professional standards. The other services are limited to the financial statement services
previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure
or take any action that could be construed as assuming management responsibilities.

Audit Procedures-General

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; therefore, our audit will involve judgment about the number of transactions to be examined and
the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than
absolute assurance about whether the financial statements are free of material misstatement, whether from
(1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or
governmental regulations that are attributable to the entity or to acts by management or employees acting on
behalf of the entity. Because the determination of abuse is subjective, Government Auditing Standards do not
expect auditors to provide reasonable assurance of detecting abuse.

Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and
because we will not perform a detailed examination of all transactions, there is a risk that material
misstatements or noncompliance may exist and not be detected by us, even though the audit is properly
planned and performed in accordance with U.S. generally accepted auditing standards and Government
Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of
laws or governmental regulations that do not have a direct and material effect on the financial statements.
However, we will inform the appropriate level of management of any material errors, any fraudulent financial
reporting, or misappropriation of assets that come to our attention. We will also inform you of any violations of
laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility
as auditors is limited to the period covered by our audit and does not extend to any later periods for which we
are not engaged as auditors.

Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts and may include tests of the physical existence of inventories, and direct confirmation of receivables
and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial
institutions. We will request written representations from your attorneys as part of the engagement, and they
may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written
representations from you about the financial statements and related matters.

Audit Procedure-Internal Controls

Our audit will include obtaining an understanding of the entity and its environment, including internal control,
sufficient to assess the risk of material misstatement of the financial statements and to design the nature,
timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of
certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the
financial statements and to preventing and detecting misstatements resulting from illegal acts and other
noncompliance matters that have a direct and material effect on the financial statements. Our tests, if
performed, will be less in scope than would be necessary to render an opinion on internal control and,
accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government
Auditing Standards.

An audit is not designed to provide assurance on internal control or to identify significant deficiencies.
However, during the audit, we will communicate to management and those charged with governance internal
control related matters that are required to be communicated under AICPA professional standards and
Government Auditing Standards.

Audit Procedure-Compliance

As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of Killdeer Area Ambulance District’s compliance with the provisions of
applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be
to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance
issued pursuant to Government Auditing Standards.

Audit Administration, Fees, and Other

We understand that your employees will prepare all cash or other confirmations we request and will locate any
documents selected by us for testing, as well as prepare any requested supporting schedules.

GAAS require that we communicate certain additional matters related to the conduct of our audit to those
charged with governance. Such matters include (1) our responsibilities under auditing standards generally
accepted in the United States of America; (2) an overview of the planned scope and timing of the audit; (3)
significant findings from the audit, including, among others: (a) the initial selection of and changes in significant
accounting policies and their application; (b) the process used by management in formulating particularly
sensitive accounting estimates and the basis for our conclusions regarding the reasonableness of those
estimates; (c) significant difficulties that we encountered in dealing with management related to the
performance of the audit; (d) audit adjustments that could, in our judgment, either individually or in the
aggregate, have a significant effect on your financial reporting process and uncorrected misstatements of the
financial statements that were determined by management to be immaterial, both individually and in the
aggregate, to the financial statements taken as a whole; (e) any disagreements with management, whether or
not satisfactorily resolved, about matters that individually or in the aggregate could be significant to the financial
statements or our report;(j) management representations; (g) our views about matters that were the subject of
management's consultation with other accountants about auditing and accounting matters; (h) major issues
that were discussed with management in connection with the retention of our services, including, among other
matters, any discussions regarding the application of accounting principles and auditing standards, and if
applicable, events or conditions indicating there could be a substantial doubt about the entity's ability to
continue as a going concern for a reasonable period of time; and (4) other matters as considered necessary
or required to be communicated under professional standards.

If you intend to publish or otherwise reproduce the financial statements and make reference to our office, you
agree to provide us with printers' proofs or masters for our review and approval before printing. You also agree
to provide us with a copy of the final reproduced material for our approval before it is distributed.
The audit documentation for this engagement is the property of the Office of the State Auditor. Once an audit
is complete most of our audit documentation is public information. This audit documentation is therefore subject
to inspection in our office with prior authorization by the State Auditor, Deputy State Auditor, or Audit Managers.
Any confidential information or data in our work papers will be safeguarded from public disclosure.
Management is responsible for informing us of any confidentiality provisions related to documentation provided
to the State Auditor’s Office.

We will begin our audit immediately and expect to issue our report when it is complete. Heath Erickson, CPA,
will be the audit manager during fieldwork.

Our fee for these services will be at our standard hourly rates plus travel and other out-of-pocket costs. Our
standard hourly rates vary according to the degree of responsibility involved and the experience level of the
personnel assigned to your audit.

Government Auditing Standards require that we provide you with a copy of our most recent external peer
review report or any letter of comment, and any subsequent peer review reports and letters of comment
received during the period of the contract. Copies of our latest peer review reports may be found online at
https://www.nd.gov/auditor/about-us/peer-review-reports

Very truly yours,

Heath Erickson, CPA

Audit Manager, Division of Local Government Audit
From: Scherr, Michael A. <mascherr@nd.gov>
Date: Thu, Dec 1, 2022 at 8:39 AM
Subject: KAAS 2017 -2020 Draft Report & Recommendations
To: Kelly Fritel <kelly.fritel@gmail.com>, ANN <killdeerems@ndsupernet.com>, Dolezal, Tracey K.
<tracey.dolezal@dunncountynd.org>

Good Morning,

I have attached the confidential draft PDF reports for 2017-2018 and 2019-2020. Please go through these
reports and let me know if you have any questions or if they look good.

Also, per the section of state law below this report is considered working papers of the state auditor and
cannot be shared with anyone outside the Ambulance District.

54-10-26. State auditor's working papers.

Working papers of the state auditor are not public records and are exempt from section 44-04-18. Working
papers include records kept by the auditor of the procedures applied, the tests performed, the information
obtained, draft audit reports, and the pertinent conclusions reached in the engagement. Working papers
may be, at the discretion of the state auditor and unless otherwise prohibited by law, made available for
inspection. A draft audit report released to the governing body or management of the audited
entity is confidential until the final audit report is issued or work ceases on the audit. The issued
audit report is public information. The working papers of an issued audit report are public. At the discretion
of the state auditor, all or a portion of the working papers of an issued audit report may be declared
confidential. The declaration of confidentiality must state the reason for the confidentiality and the date, as
can best be reasonably determined at the time, when the working papers will be made public.

Also, I have attached a word file of the audit recommendations. Can you please enter your responses on
each highlighted section. The responses don't need to be lengthy as they can usually only be a sentence or
two. I would start with "We agree.." and then start your response. Please note that even though we did get
bank recons and capital assets for example, we will have to still give audit recommendations as these were
not initially provided until after the financials were prepared this summer by our office. If this audit would
not have occurred there would not have been capital assets or bank recons that were complete for our audit
years. Please let me know if you want me to call and go over any recommendations or anything in the
report.

Thank you!

Mike Scherr

Auditor III | Division of Local Government Audit

600 E. Boulevard Ave Dept 117, Bismarck, ND 58505

Phone: 701.328.9500 Website: nd.gov/auditor