HomeMy WebLinkAboutAudit Report Letter 1996February 28, 1997
Tautges, Redpath & Co., Ltd.
4810 White Bear Parkway
White Bear Lake, Minnesota 55110
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, 1996 and for the year then ended, for
the purpose of expressing an opinion as to whether the financial statements present fairly, in all
material respects, the financial position of the City of Lino Lakes, Minnesota and the results of its
operations and the cash flows of its proprietary funds 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 financial statements of financial
position, and results of operations of the City of Lino Lakes, Minnesota and the cash
flows of its proprietary funds in conformity with generally accepted accounting
principles. The financial statements include all properly classified funds and account
groups of the primary government and all component units 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
internal accounting structure.
b) Irregularities involving other employees that could have a material effect on the
financial 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, liabilities or fund balances.
5. The following have been properly recorded or disclosed in the financial statements:
a) Joint ventures and related party transactions and related accounts receivable or
payable, including revenues, expenditures, loans, transfers, lensing arrangements and
guarantees.
Tautges, Redpath & Co., Ltd.
Representation Letter, Page 2
b) Arrangements with financial institutions involving repurchase or reverse repurchase
agreements, compensating balances, or other arrangements involving restrictions on
cash balances and line -of -credit or similar arrangements.
c) Agreements to repurchase assets previously sold.
6. 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.
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.
c) Reservations or designations of fund equity that were not properly authorized and
approved.
7. 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.
8. There are no material transactions that have not been properly recorded in the
accounting records or related data underlying the financial statements.
9. 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.
10. We are responsible for the City of Lino Lakes, Minnesota 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 financial statements in
the event of noncompliance.
11. We have identified all accounting estimates that could be material to the financial
statements, including the key factors and significant assumptions underlying those
estimates, and we believe the estimates are reasonable in the circumstances.
12. No events have occurred subsequent to the balance sheet date that would require
adjustment to, or disclosure in, the financial statements.
13. 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
direct appropriations.
Tautges, Rcdpath & Co., Ltd.
Representation Letter, Page 3
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; 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.
e) Amounts claimed or used for matching were determined in accordance with
relevant guidelines in OMB Circular A-87, Cost Principles for State, Local, and
Indian Tribal 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 major 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 Vaske, Finance Director