Laserfiche WebLink
Honorable Mayor and <br />Members of the City Council <br />City of Lino Lakes <br />Other Information in Documents Containing Audited Financial Statements <br />Our auditors' opinion, the audited financial statements, and the notes to financial statements should <br />only be used in their entirety. Inclusion of the audited financial statements in a client prepared <br />document, such as an annual report, should be done only with our prior approval and review of the <br />document. Our responsibility for other information in documents containing the City's financial <br />statements and our auditors' report does not extend beyond the financial information identified in our <br />auditors' report. We have no responsibility for determining whether such other information is properly <br />stated and do not have an obligation to perform any procedures to corroborate other information <br />contained in such documents. <br />Planned Scope and Timing of the Audit <br />We performed the audit according to the planned scope and timing previously communicated to you in <br />our meeting about planning matters on January 19, 2010. <br />Significant Audit Findings <br />Qualitative Aspects of Accounting Practices <br />Management is responsible for the selection and use of appropriate accounting policies. The significant <br />accounting policies used by the City of Lino Lakes are described in Note 1 to the financial statements. <br />No new accounting policies were adopted and the application of existing policies was not changed <br />during 2009. <br />We noted no transactions entered into by the City during the year for which there is a lack of <br />authoritative guidance or consensus. All significant transactions have been recognized in the financial <br />statements in the proper period. <br />Accounting estimates are an integral part of the financial statements prepared by management and are <br />based on management's knowledge and experience about past and current events and assumptions <br />about future events. Certain accounting estimates are particularly sensitive because of their <br />significance to the financial statements and because of the possibility that future events affecting them <br />may differ significantly from those expected. The most sensitive estimates affecting the financial <br />statements were: <br />Estimated useful lives of depreciable capital assets - Management's estimate of useful lives for <br />depreciable assets is based on guidance recommended by authoritative accounting literature and <br />past experiences. The useful life of a depreciable asset determines the amount of depreciation that <br />will be recorded in any given reporting period as well as the amount of accumulated depreciation <br />that is reported at the end of a reporting period. <br />Estimated year-end valuation of investments at fair value — Management's estimate of the fair value <br />of investments is based on published market values at December 31, 2009. <br />We evaluated the key factors and assumptions used to develop the above estimates in determining <br />that it is reasonable in relation to the financial statements taken as a whole. <br />Difficulties Encountered in Performing the Audit <br />We encountered no significant difficulties in dealing with management in performing and completing our <br />audit. <br />N <br />