2013-12-31 Year End Management Letter

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March 29, 2014 Management, Honorable Mayor and City Council City of Centerville, Minnesota We have audited the accompanying financial statementsof thegovernmental activities, the business-type activities, each major fund and the aggregate remaining fund information of theCity ofCenterville,Minnesota (the City), forthe year ended December31,2013. Professional standards requirethat we provide you withinformation about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit.We have communicated such information in our letter to you dated November 7, 2013.Professional standards also require that we communicate to you the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformitywith accounting principles generally accepted in the United States ofAmerica. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control over financial reporting of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control over financial reporting. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings In planning and performing our audit, we considered the City’s internal control over financial reporting as a basis for designing auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. deficiency in internal control Aexists when the design or operation of a control does not allow management or employees, in the material normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the following pages as finding 2013-001 to be a material weakness in internal control over financial reporting. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We did not identify any deficiencies in internal control over financial reporting that we consider to be significant deficiencies.