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M 6KR <br />CERTIFIED PUBLIC <br />ACCOUNTANTS <br />INDEPENDENT AUDITOR'S REPORT <br />ON MINNESOTA LEGAL COMPLIANCE <br />To the City Council and Management <br />City of Mounds View, Minnesota <br />PRINCIPALS <br />Thomas A. Karnowski, CPA <br />Paul A. Radosevich, CPA <br />William J. Lauer, CPA <br />James H. Eichten, CPA <br />Aaron J. Nielsen, CPA <br />Victoria L. Holinka, CPA/CMA <br />Jaclyn M. Huegel, CPA <br />Kalen T. Karnowski, CPA <br />We have audited, in accordance with auditing standards generally accepted in the United States of <br />America, and the standards applicable to financial audits contained in Government Auditing Standards, <br />issued by the Comptroller General of the United States, the financial statements of the governmental <br />activities, the business -type activities, each major fund, and the aggregate remaining fund information of <br />the City of Mounds View, Minnesota (the City) as of and for the year ended December 31, 2023, and the <br />related notes to the financial statements, which collectively comprise the City's basic financial statements, <br />and have issued our report thereon dated April 29, 2024. <br />MINNESOTA LEGAL COMPLIANCE <br />In connection with our audit, we noted that the City failed to comply with provisions of the claims and <br />disbursements section of the Minnesota Legal Compliance Audit Guide for the Cities, promulgated by the <br />State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to accounting matters as <br />described in the Schedule of Findings and Responses as finding 2023-002. Also, in connection with our <br />audit, nothing came to our attention that caused us to believe that the City failed to comply with the <br />provisions of the contracting — bid laws, depositories of public funds and public investments, conflicts of <br />interest, public indebtedness, miscellaneous provisions, and tax increment financing sections of the <br />Minnesota Legal Compliance Audit Guide for Cities, insofar as they relate to accounting matters. <br />However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. <br />Accordingly, had we performed additional procedures, other matters may have come to our attention <br />regarding the City's noncompliance with the above referenced provisions, insofar as they relate to <br />accounting matters. <br />CITY'S RESPONSE TO FINDING <br />Government Auditing Standards requires the auditor to perform limited procedures on the City's response <br />to the legal compliance finding identified in our audit and described in the accompanying Schedule of <br />Findings and Responses. The City's response was not subjected to the other auditing procedures applied <br />in the audit of the financial statements and, accordingly, we express no opinion on the response. <br />PURPOSE OF THIS REPORT <br />The purpose of this report is solely to describe the scope of our testing of compliance and the results of <br />that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any <br />other purpose. <br />A. <br />Minneapolis, Minnesota <br />April 29, 2024 <br />-3- <br />Malloy, Montague, Karnowski, Radosevich & Co., P.A. <br />5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com <br />