Laserfiche WebLink
<br />-1- <br />AUDIT SUMMARY <br /> <br />The following is a summary of our audit work, key conclusions, and other information that we consider <br />important or that is required to be communicated to the City Council, administration, or those charged <br />with governance of the City. <br /> <br />OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED <br /> STATES OF AMERICA AND GOVERNMENT AUDITING STANDARDS <br /> <br />We have audited the financial statements of the governmental activities, the business-type activities, each <br />major fund, and the aggregate remaining fund information of the City as of and for the year ended <br />December 31, 2019. Professional standards require that we provide you with information about our <br />responsibilities under auditing standards generally accepted in the United States of America and <br />Government Auditing Standards, as well as certain information related to the planned scope and timing of <br />our audit. We have communicated such information to you verbally and in our audit engagement letter. <br />Professional standards also require that we communicate the following information related to our audit. <br /> <br />PLANNED SCOPE AND TIMING OF THE AUDIT <br /> <br />We performed the audit according to the planned scope and timing previously discussed and coordinated <br />in order to obtain sufficient audit evidence and complete an effective audit. <br /> <br />AUDIT OPINION AND FINDINGS <br /> <br />Based on our audit of the City’s financial statements for the year ended December 31, 2019: <br /> <br />• We have issued an unmodified opinion on the City’s basic financial statements. <br /> <br />• We reported one matter involving the City’s internal control over financial reporti ng that we <br />consider to be a material weakness as detailed in the Special Purpose Audit Reports. Due to the <br />limited size of the City’s office staff, the City has limited segregation of duties in certain areas. <br /> <br />• The results of our testing disclosed no instances of noncompliance required to be reported under <br />Government Auditing Standards. <br /> <br />• We reported no findings based on our testing of the City’s compliance with Minnesota laws and <br />regulations. <br /> <br />FUND BALANCE/NET POSITION DEFICITS <br /> <br />As reported in the City’s Comprehensive Annual Financial Report (CAFR), the EDA TIF District No. 5; <br />Parks Fund; Public Safety Capital Equipment Fund; and TCAAP Fund; had year-end deficit equity <br />balances of $22,000, $5,816, $5,197, and $194,879, respectively. Management has disclosed that these <br />deficits will be eliminated with future contributions, grants, and internal fund transfers, if needed.