Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholders of
Central Securities Corporation:
In planning and performing our audit of the financial statements of
Central Securities Corporation (the ?Corporation?) as of and for the
year ended December 31, 2021, in accordance with the standards of
the Public Company Accounting Oversight Board (United States)
(PCAOB), we considered the Corporation?s internal control over
financial reporting, including controls over safeguarding
securities, as a basis for designing our auditing procedures for the
purpose of expressing our opinion on the financial statements and to
comply with the requirements of Form N-CEN, but not for the purpose
of expressing an opinion on the effectiveness of the Corporation?s
internal control over financial reporting. Accordingly, we express
no such opinion.
Management of the Corporation is responsible for establishing and
maintaining effective internal control over financial reporting. In
fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related
costs of controls. A company?s internal control over financial
reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with
generally accepted accounting principles (GAAP). A company?s
internal control over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with GAAP,
and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors
of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or
disposition of a company?s assets that could have a material effect
on the financial statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
A deficiency in internal control over financial reporting exists
when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned
functions, to prevent or detect misstatements on a timely basis. A
material weakness is a deficiency, or combination of deficiencies,
in internal control over financial reporting, such that there is a
reasonable possibility that a material misstatement of the
Corporation?s annual or interim financial statements will not be
prevented or detected on a timely basis.
Our consideration of the Corporation?s internal control over
financial reporting was for the limited purpose described in the
first paragraph and would not necessarily disclose all deficiencies
in internal control that might be material weaknesses under
standards established by the PCAOB. However, we noted no
deficiencies in the Corporation?s internal control over financial
reporting and its operation, including controls over safeguarding
securities that we consider to be a material weakness as defined
above as of December 31, 2021.
This report is intended solely for the information and use of
management and the Board of Directors of Central Securities
Corporation and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these
specified parties.
/s/ KPMG LLP
New York, New York
February 3, 2022


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