CC RES 00-018 A RESOLUTION APPROVING AN AUDITOR FOR THE CITY AND H. R.A. 1999 AUDITS

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Honorable Mayor and City Council • City of St. Anthony Management is responsible for making all financial records and related information available. I understand that you will provide the basic information required for the audit and that you are responsible for the accuracy and completeness of that information. I will advise you about appropriate accounting principles and their application and will assist in the' preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsi- bility includes the establishment and maintenance of adequate records and effective internal control over financial reporting, the selection and application of account- ing principles, and the safeguarding of assets. AUDIT PROCEDURES - GENERAL An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, the audit will involve judgment about the number of transactions to be examined and the areas to be tested. I will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. Because of the concept of reasonable assurance and because I will not perform a detailed examination of all transactions, there is a risk that a material misstatement may exist and not be detected. In addition, an audit is not designed to detect errors, fraud, or other illegal acts that are immaterial to the general purpose financial statements. However, I will inform you of any mate- rial errors and any fraud that comes to my attention. I will also inform you of any other illegal acts that come to my attention, unless clearly inconsequential. My responsiblity is auditor is limited to the period covered by the audit and does not extend to matters that might arise during any later periods for which I am not engaged as auditor. Audit procedures will include tests of documentary evidence supporting the trans- actions recorded in the accounts, direct confirmation of cash, receivables and certain other assets and liabilities by correspondence with selected financial institutions, creditors and others, and may include tests of the physical exis- tence of inventories. I will request written representations from your attorney(s) as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of the audit, I will also request certain written representa- tions from you about the financial statements and related matters. Identifying and ensuring that the City of St. Anthony, Minnesota complies with laws, regulations, contracts, and agreements is the responsibility of management. As part of obtaining reasonable assurance about whether the general purpose finan- cial statements are free of material misstatement, I will perform tests of the City's compliance with applicable laws and regulations and the provisions of con- tracts and agreements. However, the objective of the audit will not be to provide an opinion on overall comnpliance and I will not express such an opinion. AUDIT PROCEDURES - INTERNAL CONTROL • In planning and performing the audit, I will consider the internal control suffi- cient to plan the audit in order to determine the nature, timing, and extent of the auditing procedures for the purpose of expressing my opinion on the City of St. Anthony, Minnesota's general purpose financial statements.