Centerville 2010 Management letter

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City of Centerville March 24, 2011 Page 3 2009-2Preparation of Financial Statements Condition: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services.Recent auditing standards require auditors to communicate this situation to the Council as an internal control deficiency. Ultimately, it is management’sresponsibility to provide for the preparation of your statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements.It is our responsibility to inform you that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by your management.Essentially, the auditors cannot be part of your internal control process. Criteria: Internal controls should be in place to provide reasonable assurance over financial reporting. Current Year Status: Management utilized a disclosure checklist to ensure all required disclosures are presented and the City agreedits financial software to the numbers reported in the financial statements. 2009-3Mileage Reimbursement Allowance Condition: During our audit we noted that the City paid an automobile allowance to an employee, and also reimbursed the same employee for actual mileage incurred while performing work for the City. Criteria :Minnesota statute 471.665, subd. 3, requires that if the City establishes an automobile allowance for any officer or employee, the allowance be in lieu of all other mileage reimbursement to that officer or employee. Current Year Status: The City no longer offers an automobile allowance and only pays for mileage reimbursement. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you.