CCP 06-08-1998 - Laserfiche WebLink

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I . I I C,ertifierl Public Accounlunls & Cunsultanh I 7241 Ohms Lallf' SUilt' 2(X1 I Minneapolis., \1:\ 55439 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL I OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE I WITH GOVERNMENT A UDlTlNG STANDARDS Honorable Mayor and City Council I City of Arden Hills, Minnesota We have audited the general purpose financial statements of the City of Arden Hills, Minnesota as of and for the year ended I December 31, 1997 and have issued our report thereon dated May 14, 1998. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to fmancial audits contained in Government Auditing . I Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the City~s financial statements are free of material misstatement, we I perfonned tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of-fmancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an I opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting I In planning and perfonning our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the fmancial statements and not to provide assurance on I the internal control over fmandal reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters corning to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect the City's ability to record, process, summarize and report financial data consistent with I the assertions of management in the financial statements. Our study and evaluation disclosed that because of the limited size of your office staff, your organization has limited segregation of duties. Good internal control contemplates an adequate segregation of duties so that no one individual handles I a transaction from inception to completion. \Vhile we recognize that your organization is not large enough to permit an adequate segregation of duties in all respects, it is important, however, that you be aware of this reportable condition. I . I -42- I 612.&15.9090 . l~\ (JI2.83,;..3261