We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the Schedules referred to above present fairly, in all material respects, the direct labor, fringe benefits and general overhead and facilities capital cost of money of the Company for the year ended December 31, 2019, in accordance with the financial reporting provisions of the Federal Acquisition Regulations (FAR) described in Note 2.
We draw attention to Note 2 of the Schedules, which describes the basis of accounting. The Schedules are prepared in accordance with the financial reporting practices permitted by Part 31 of the Federal Acquisition Regulations (FAR), which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect this matter.
In accordance with Government Auditing Standards, we have also issued our report dated May 27, 2020, on our consideration of the Company's internal control over financial reporting as it relates to the Schedules and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters, including provisions of the applicable sections of Part 31 of the Federal Acquisition Regulations. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Company's internal control over financial reporting and compliance.
This report is intended solely for the information and use of the Board of Directors and management of the Company and government agencies or other customers related to contracts employing the cost principles of the Federal Acquisition Regulations and is not intended to be, and should not be, used by anyone other than these specified parties.
DERMODY, BURKE & BROWN, CPAs, LLC
Syracuse, NY
May 27, 2020
Dermady, Burke & Brown
2