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INDEPENDENT AUDITOR'S REPORT
<br />To the Honorable Mayor and
<br />Members of the City Council
<br />City of Lino Lakes, Minnesota
<br />Report on the Financial Statemenu
<br />We have audited the accompanying financial statements of the governmental activities, the
<br />business-type activities, each major fund, and the aggregate remaining fund information of the
<br />City of Lino Lakes, Minnesota. as of and for the year ended December 31, 2019, and the related
<br />notes to the financial statements. which collectively comprise the City of Lino Lakes,
<br />Minnesota's basic :financial statements as listed in the table of contents.
<br />Management's Responslbllity for the Financial Statements
<br />Management is responsible for the preparation and fair presentation of these financial statements
<br />in accordance with acco1D1ting principles generally accepted in the United States of America;
<br />this includes the design, implementation, and maintenance ofint.emal control relevant to the
<br />preparation and fair presentation of financial statements that are free from material misstatement,
<br />whether due to fraud or error. ·
<br />Auditor's Responsibility
<br />Our responsibility is to express opinions on these financial statements based on our audit. We
<br />conducted our audit in accordance with auditing standards generally accepted in the United
<br />States of America and the standards applicable to financial audits contained in Government
<br />Auditing Standards, issued by the Comptroller General of the United Smtes. Those standards
<br />require that we plan and perform the audit to obtain reasonable assurance about whether the
<br />financial statements are free from material misstatement
<br />An audit involves performing procedures to obtain audit evidence about the amounts and
<br />disclosures in the financial statements. The procedures selected depend on the auditor's
<br />judgment, including the assessment of the risks of material misstatement of the financial
<br />statements, whether due to fraud or error. In making those risk assessments, the auditor
<br />considers internal control relevant to the entity's preparation and fair presentation of the
<br />financial statements in order to design audit procedures that are appropriate in the circumstances,
<br />but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
<br />control. Accordingly, we express no such opinion. An audit also includes evaluating the
<br />appropriateness of accounting policies used and the reasonableness of significant accounting
<br />estimates made by management, as well as evaluating the overall presentation of the financial
<br />statements.
<br />We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
<br />basis for our audit opinions.
<br />Opinions
<br />In our opinion, the financial statements referred to above present fairly, in all material respects,
<br />the respective financial position of the governmental activities, the business-type activities., each
<br />major fund, and the aggregate remaining fund information of the City of Lino Lakes, Minnesota,
<br />as ofDecember 31, 2019, and the respective changes in financial position, and, where
<br />applicable, cash flows thereof for the year then ended in accordance with accounting principles
<br />generally accepted in the United States of America.
<br />Other Matten
<br />Required Supplementary l,iformation
<br />Accounting principles generally accepted in the United States of America require that the
<br />management's discussion and analysis. the budgetary comparison information, and the schedules
<br />of OPEB and pension information, as listed in the table of contents, be presented to supplement
<br />the basic financial statements. Such information, although not a part of the basic financial
<br />statements, is required by the Governmental Accounting Standards Board, who considers it to be
<br />an essential part of financial reporting for placing the basic financial statements in an appropriate
<br />operational, economic, or historical context. We have applied certain limited procedures to the
<br />required supplementary information in accordance with auditing standards generally accepted in
<br />the United States of America, which consisted of inquiries of management about the methods of
<br />preparing the information and comparing the information for consistency with management's
<br />responses to our inquiries, the basic financial statements, and other knowledge we obtained
<br />during our audit of the basic financial statements. We do not express an opinion or provide any
<br />assurance on the information because the limited procedures do not provide us with sufficient
<br />evidence to express an opinion or provide any assurance.
<br />Other Information
<br />Our audit was conducted for the purpose of forming opinions on the financial statements that
<br />collectively comprise the City of Lino Lakes, Minnesota's basic financial statements. The
<br />introductory section, combining and individual nonmajor fund financial statements and
<br />schedules, statistical section and other information are presented for pmposes of additional
<br />analysis and are not a required part of the basic financial statements.
<br />The combining and individual nonmajor fund financial statements and schedules are the
<br />responsibility of management and were derived from and relate directly to the underlying
<br />accounting and other records used to prepare the basic financial statements. Such information
<br />has been subjected to the auditing procedures applied in the audit of the basic financial
<br />statemeots and certain additiooal procedures, including comparing and reconciling such
<br />information directly to the underlying accounting and other records used to prepare the basic
<br />financial statements or to the basic financial statements themselves. and other additional
<br />procedures in accordance with auditing standards generally accepted in the United States of
<br />America. In our opinion. the combining and individual nonmajor ftmd financial statements and
<br />schedules are fairly stated in all material respects in relation to the basic financial statements as a
<br />whole. ·
<br />The introductory section. the statistical section and other information have not been subjected to
<br />the auditing procedures applied in the audit of the basic financial statements and, accordingly,
<br />we do not express an opinion or provide any assurance on them.
<br />Other Reporting Required by Governm,nt Auditing Standards
<br />In accordance with Government Auditing Standards, we have also issued our report dated
<br />May 28, 2020, on our consideration of the City of Lino Lakes, Minnesota's intemal control over
<br />financial reporting and on our tests of its compliance with certain provisions of laws, regulations.,
<br />contracts, and grant agreements and other matters. The purpose of that report is solely to
<br />describe the scope of om testing of internal control over financial reporting and compliance and
<br />the results of that testing, and not to provide an opinion on the effectiveness of the City of Lino
<br />Lakes, Minnesota's int.ernal control over :financial reporting or on compliance. That report is an
<br />integral part of an audit performed in accordance with Government Auditing Standards in
<br />considering the City of Lino Lakes, Minnesota's internal control over financial reporting and
<br />compliance.
<br />REDPATH AND COMPANY, LID.
<br />St. Paul, Minnesota
<br />May28,2020 IV-2
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