CCP 05-13-2002 - Laserfiche WebLink

Home Browse Search

I .1 I 7241 Ohms Lane Suite 200 Edina, MN 55439 I I REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS I . Honorable Mayor and City Council City of Arden Hills, Minnesota I We have audited the general purpose frnancial statements of the City of Arden Hills, Minnesota as of and for the year ended December 31, 200 I and have issued our report thereon dated April 1 0, 2002, We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to frnancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, I .. Compliance As part of obtaining reasonable assurance about whether the City's general purpose frnancial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, I noncompliance with which could have a direct and material effect on the determination of frnancial statement amounts, However, providing an opinion on compliance '\Vith those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of OUI tests disclosed no instances of noncompliance that arc required to be reported under I Goverrunent Auditing Standards, Internal Control Over Financial Reporting In planning and performing 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 general purpose fmancial statements and not to provide assurance on the internal control over fmandaI reporting. However, we noted certain matters involving the internal control over fmancial reporting and its operation that we consider to be reportable conditions, Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over fmancial reporting that, in our judgment, could adversely affect the City's ability to record, process, snmmarize and report frnancial data consistent with the assertions of management in the general purpose [maneial statements. I . Our study and evaluation disclosed that because of the limited size of your office staff, your City has linnted segregation of duties, Good internal control contemplates an adequate segregation of duties so that no one individual handles a transaction from inception to completion. While we recognize that your City 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 .- . 952.835.9090 Fax 952.835.3261 -47- I www.aemcpas.cum