FairPoint Communications 2009 Annual Report Download - page 91

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The Board of Directors and Stockholders of FairPoint Communications, Inc. (Debtors-in-Possession):
We have audited the accompanying consolidated balance sheets of FairPoint Communications, Inc. (Debtors-in-Possession) (the "Company") as
of December 31, 2009 and 2008, and the related consolidated statements of operations, stockholders' equity (deficit), comprehensive (loss) income and
cash flows for each of the three years in the period ended December 31, 2009. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company
at December 31, 2009 and 2008, and the consolidated results of its operations and its cash flows for each of the three years in the period ended
December 31, 2009, in conformity with U.S. generally accepted accounting principles.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As more
fully described in Note 1, the Company has defaulted on loan obligations and has filed voluntary petitions for relief under Chapter 11 of title 11 of the
United States Code in the United States Bankruptcy Court for the Southern District of New York. These conditions raise substantial doubt about the
Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial
statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and
classification of liabilities that may result from the outcome of this uncertainty.
As discussed in Note 3, the Company changed its method of accounting for uncertainty in income taxes effective January 1, 2007.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), FairPoint
Communications, Inc.'s (Debtors-in-Possession) internal control over financial reporting as of December 31, 2009, based on criteria established in
Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated
May 27, 2010 expressed an adverse opinion thereon.
/s/ ERNST & YOUNG LLP
Charlotte, North Carolina
May 27, 2010
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