05-28-13 Council Packet - Laserfiche WebLink

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An independent member of Nexia International Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota We have audited the financial statements of the governmental activities, the business ‐type activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes (the City) for the year ended December 31, 2012, and have issued our report thereon dated May 22, 2013. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards , as well as certain information related to the planned scope and timing of our audit. Professional standards also require that we communicate to you the following information related to our audit. Significant audit findings Qualitative aspects of accounting practices Accounting policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. For the year ended December 31, 2012, the financial statements include the impact of adoption of Governmental Accounting Standards Board statement numbers 62 and 63. GASBS 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre ‐November 30, 1989 FASB and AICPA Pronouncements , supersedes GASBS 20. GASBS 20 gave governments the choice to elect to follow only GASB’s authoritative literature, or to follow FASB and AICPA pronouncements that did not conflict with GASB pronouncements. Upon adoption of GASBS 62, all governmental accounting guidance is codified into the GASB literature. GASBS 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position , provides guidance on deferred outflows and inflows of resources. It also renames the residual amounts from “net assets” to “net position”. These financial statements include the statement of net position, which reports all assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position. Adoption of future GASB standards will include reporting of some items previously reported as assets and liabilities as deferred outflows and inflows of resources. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.