11-10-1993 Council Agenda - Laserfiche WebLink

Home Browse Search

1 1 1 1 1 1 1 1 a 1 1 1 1 1 1 1 1 1 1 For all of the internal control structure categories listed, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. However, our consideration of the internal control structure disclosed the following conditions that we believe to be material weaknesses at December 31, 1992. A substantial portion of certain accounting processes are performed by a single employee. Ideal conditions call for segregation of dudes to establish a system of internal testing of procedures performed. This condition is common to cities of this size. Any modification of internal control structure in this area, however, must be viewed from a cost/benefit perspective. This report is intended for the information of management and others within the City of Little Canada, Minnesota. This restriction is not intended to limit the distribution of this report, which is a matter of public record. TAUTGES, REDPATH & CO., LTD. Certified Public Accountants June 25, 1993 2 Page 18