2024.07.15 CC Packet - Laserfiche WebLink

Home

Members of American Institute of CPAs, Private Companies Practice Section, Minnesota Society of CPAs Member of PrimeGlobal, A Global Association of Independent Accounting Firms Minneapolis Office • 7500 Olson Memorial Highway 55 • Suite 350 • Minneapolis, MN 55427 • PH (952) 920‐1455 • FAX (952) 920‐6603 Offices in: Red Wing and Rochester • www.smithschafer.com June 26, 2024 Honorable Mayor and City Council City of Hugo 14669 Fitzgerald Avenue North Hugo, Minnesota 55038 We have audited the financial statements of City of Hugo as of and for the year ended December 31, 2023, and have issued our report thereon dated June 26, 2024. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit and Single Audit As stated in our engagement letter dated January 31, 2024, we are responsible for conducting our audits in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS), Government Auditing Standards of the Comptroller General of the United States of America, the requirements of the Single Audit Act, as amended; and the provisions of the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), for the purpose of forming and expressing opinions on the financial statements, and on major federal award program compliance. Our audits do not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of the system of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of City of Hugo solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. Our responsibility as it relates to the schedule of expenditures of federal awards is to evaluate its presentation for the purpose of forming and expressing an opinion as to whether it is presented fairly in all material respects in relation to the financial statements as a whole. Our responsibility as it relates to other supplementary information, is to evaluate its presentation for the purpose of forming and expressing an opinion as to whether the information is fairly stated in all material respects in relation to the financial statements as a whole. Our audits included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit involved judgment about the number of transactions to be examined and the areas to be tested. Our audit procedures also included determining major federal programs and performing the applicable procedures described in the U.S. Office of Management and Budget OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the entity’s major programs.