HomeMy WebLinkAboutAudit Report Letter 1995May 23, 1996
Tautges, Redpath & Co., Ltd.
4810 White Bear Parkway
White Bear Lake, Minnesota 55110
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In connection with your audit of the financial statements of the various funds and account groups
of the City of Lino Lakes, Minnesota as of December 31, 1995 and for the year then ended, for
the purpose of expressing an opinion as to whether the financial statements present fairly the
fmancial position, changes in fund balance, results of operations, and changes in financial
position (where appropriate) of the various funds of the City of Lino Lakes, Minnesota in
conformity with generally accepted accounting principles, we confirm, to the best of our
knowledge and belief, the following representations made to you during your audit.
1. We are responsible for the fair presentation in the fmancial statements of financial
position, changes in fund balance, results of operations and changes in financial
position in conformity with generally accepted accounting principles. The financial
statements include all properly classified funds and account groups of the oversight unit
required by generally accepted accounting principles to be included in the financial
reporting entity.
2. We have made available to you all:
a) Financial records and related data.
b) Minutes of all meetings of the City Council.
3. There have been no:
a) Irregularities involving administration or employees who have significant roles in
the system of internal accounting control.
b) Irregularities involving other employees that could have a material effect on the
fmancial statements.
c) Communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices that could have a material effect on the
financial statements.
4. The City has no plans or intentions that may materially affect the carrying value or
classification of assets and liabilities.
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Tautges, Redpath & Co., Ltd.
Representation Letter, Page 2
5. There are no:
a) Violations or possible violations of laws or regulations whose effects should be
considered for disclosure in the financial statements or as a basis for recording a
loss contingency except for instances of noncompliance with grant contract 1 j,13 frc'
provisions, laws, and regulations included in the Schedule of Findings and
Questioned Costs and your report on compliance with laws and regulations related
to financial assistance programs.
b) Other material liabilities or gain or loss contingencies that are required to be
accrued or disclosed by Statement of Financial Accounting Standards No. 5, except
as disclosed in the letter from our City attorney.
c) Reservations or designations of fund equity that were not properly authorized or
approved.
6. There are no unasserted claims or assessments that the City attorney has advised us are
probable of assertion and must be disclosed in accordance with Statement of Financial
Accounting Standards No. 5.
7. There are no material transactions that have not been properly recorded in the
accounting records or related data underlying the financial statements.
8. The City has satisfactory title to all owned assets, and there are no unrecorded liens or
encumbrances on such assets nor have any assets been pledged. The City does not have
title to leased computer equipment.
9. All significant (material) inventories of the Proprietary Fund types have been recorded
and disclosure has been made with regard to valuation basis.
10. We are responsible for the City's compliance with laws and regulations applicable to it;
and we have identified, and disclosed to you, all laws and regulations that have a direct
and material effect on the determination of financial statement amounts. We have
complied with all aspects of laws, regulations, and contractual agreements that would
have a material effect on the fmancial statements in the event of noncompliance, except
for instances of noncompliance with grant contract provisions, laws, and regulations
included in the Schedule of Findings and Questioned Costs and your report on
compliance with laws and regulations related to financial assistance programs.
11. No events have occurred subsequent teethe balance sheet date that would require
adjustment to, or disclosure in, the financial statements.
Tautges, Redpath & Co., Ltd.
Representation Letter, Page 3
12. With respect to federal financial assistance programs:
a. We have identified in the schedule of federal financial assistance all assistance
provided by federal agencies in the form of grants, contracts, loans, loan
guarantees, property, cooperative agreements, interest subsidies, insurance, or a/ (4(/
direct appropriations.
b. We have identified the requirements governing political activity, the Davis -Bacon
Act, civil rights, cash management, relocation assistance and real property
management, federal financial reports, allowable costs/cost principles, drug -free
workplace, and administrative requirements over federal financial assistance.
c. We have identified the requirements governing types of services allowed or not
allowed; eligibility; matching, level of effort, or earmarking; reporting; claims for
advances and reimbursements; and amounts claimed or used for matching that are
applicable to nonmajor federal financial assistance programs, which are identified
in the schedule of federal financial assistance.
d. We have complied with reporting requirements in connection with federal financial
assistance, and information presented in federal financial reports and claims for
advances and reimbursements is supported by the accounting records from which
the basic financial statements were prepared except for instances noted in the
Schedule of Findings and Questioned Costs.
e. Amounts claimed or used for matching were determined in accordance with
relevant guidelines in OMB Circular A-87, "Cost Principles for State and Local
Governments," and OMB's "Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments."
f. We have identified and disclosed to you all amounts questioned, as well as known
violations of requirements that, if not complied with, could have a material effect
on a nonmajor federal financial assistance program, and all civil rights complaints
filed against us or investigations completed or in progress of which we are aware.
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Mary�ke, Finance Director
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