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July 2612021 <br />Page 2 <br />Audit Objective <br />The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all <br />material respects, in conformity with generally accepted accounting principles and to report on the fairness of the <br />supplementary information referred to in the second paragraph when considered in relation to the financial statements as <br />a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of <br />America and will include tests of the accounting records and other procedures we consider necessary to enable us to <br />express such opinions. We will issue a written report upon completion of our audit of the City's financial statements. Our <br />report will be addressed to the City Council of the City. We cannot provide assurance that unmodified opinions will be <br />expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis -of -matter or <br />other -matter paragraphs. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for <br />any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to <br />express opinions or may withdraw from this engagement. <br />Audit Procedures -General <br />An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial <br />statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to <br />be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of <br />significant accounting estimates made by management, as well as evaluating the overall presentation of the financial <br />statements. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are <br />free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or <br />(4) violations of laws or governmental regulations that are attributable to the government or to acts by management or <br />employees acting on behalf of the government. <br />Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we <br />will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be <br />detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted <br />auditing standards. In addition, an audit is not designed to detect immaterial misstatements, or violations of laws or <br />governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform <br />the appropriate level of management of any material errors, fraudulent financial reporting, or misappropriation of assets <br />that comes to our attention. We will also inform the appropriate level of management of any violations of laws or <br />governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is <br />limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as <br />auditors. <br />Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may <br />include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and <br />liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will <br />request written representations from your attorneys as part of the engagement, and they may bill you for responding to <br />this inquiry. At the conclusion of our audit, we will require certain written representations from you about the financial <br />statements and related matters. <br />Audit Procedures -Internal Control <br />Our audit will include obtaining an understanding of the government and its environment, including internal control, <br />sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and <br />extent of further audit procedures. An audit is not designed to provide assurance on internal control or to identify <br />deficiencies in internal control. Accordingly, we will express no such opinion. However, during the audit, we will <br />communicate to management and those charged with governance internal control related matters that are required to be <br />communicated under AICPA professional standards. <br />Audit Procedures -Compliance <br />As part of obtaining reasonable assurance about whether the financial statements are free of material <br />misstatement, we will perform tests of the City's compliance with the provisions of applicable laws, <br />regulations, contracts, and agreements. However, the objective of our audit will not be to provide an <br />opinion on overall compliance and we will not express such an opinion. <br />I'eO�:)Ie <br />�rUlli<'' <br />\u�fI Ik is <br />