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EXP�ENCE��ME��NG. FEDERAL SINGLE �~~�EK��~��U��K��V��IU�ELIU�ES| U��(continued) ��U�� REQUIREMENTS, -' ^^~ Beyond thisour��h�p��|��hipm��a��on�� Minnesota city community and ourpeers'MMKR professionals have been called on to g ive numerous presentations at a variety of industry seminarsonndifferent aspects of GASB StatementsWe have also been activparticipants on several committeeformed to address the impact of these pronuncements on local governmental units, including the Accounting Guidelines Committee of the MDE. B. Federal Single Audit RequirementS Through our large governmental audit practice, MMKR professionals have gained extensive experience in performing audits of federal awards program expenditures in accordance with the Single Audit Actand the Uniform Guidance. Last year, MMKR performed audits of federal awards program expenditures `u/ approximately 4Oofour go«ermnensuclients. |ien-ta As a result, our auditors have a thorough knowledge of the regulations and requirements for the federal award programs through which Minnesota local governments receive funding. C. State and Local Guidelines for Minnesota Cities MMKR has a long history as a leader in providing audit and consulting services to Minnesota cities. Consequently,y�PNKRgovernmental aud�professionals are weUversed onthe aba��and local acooun�ng' reporting,and compliance requirements that pertain to our city clients. MMKR maintains good working relationships with the Minnesota Office of the State Auditor, regularly serving on advisory committees that oversee theguidanoetheyprov\deforMinneaotaoitieaandother\ooa\governmenta. SPECIFIC AUDIT APPROACH For a local government, the primary goal of financial reporting is to demonstrate the prudent management of the financial resources with which it has entrusted, and its adherence to the laws and regulations that govern its financial operation. To do this, a local government must periodically provide constituents and stakeholders with an accurate, timely, and transparent accounting of its financial position and activities. The fundamental purpose of an audit is to add credibility to financial reporting, through independent testing and verification of the information being reported. Whilthis attestation role is important, we believe it is only part of the value an audit should provide. An audit generally consists of examining the results of things that transpired in the past, but at MMKR the focus of our audit process is on the future.The audit provides an opportunity to help our clients fulfill their fiduciary responsibilities on an ongoing basis. At MMKR, we dig deeper. We go beyond the audit results, evaluating the client financial controls and procedures that produced those results, and determining whether they provide reasonable assurance of consistently producing the desire results in the future. We strive to provide our audit clients with meaningful recommendations and advice for the continual improvement of both the effectiveness of their internal controls and the efficiency of their financial operations. MMKR uses a three-step approach to auditing cities. Finet, we review, dooument, and test our understanding of the City's operation, and its internal controls over financial reporting and compliance relevant to both the basic financial statements and federal financial assistance programs. Second, based on our understanding, we assess risk and determine the audit assertions relevant to the significant classes and account balances of the City. Third, we perform substantive tests of the relevant assertions, which include analytical review procedures, tests of details, and tests of compliance with laws and regulations. Our audit approach satisfies the requirements of auditing standards generally accepted in the United States of America for financial compliance audits contained in CovennnentAudding8/enda/us Standards, issued by the Comptroller General of the United States This audit approach uses a combination of audit prognama, including those that are firm -generated and those that are developed specifically for governmental audits by Practitioners Publishing Company.