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<br />R <br />Q <br /> <br />If! <br />L; <br /> <br />o <br />'.0' <br />I ' <br />-i <br /> <br /> <br />~ <br /> <br />Ie <br />[ <br />Ie <br /> <br />'n. <br />'u <br />o <br />Ie: <br />D <br />o <br />.Ei <br />o <br />B <br />~ <br />!6 <br /> <br />I <br /> <br />IB <br /> <br /> <br />May 3, 2007 <br /> <br />Grandview Square <br />5201 Eden Avenue <br />Suite 370 <br />Edina, MN 55436 <br /> <br /> <br />Honorable Mayor and Council <br />City of Centervi1le, Minnesota <br /> <br />We have audited the financial statements of the governmental acti .. <br />aggregate remaining fund information of the City ofCenterville, <br />have issued our report thereon dated May 3,2007. Professional stan <br />information related to our audit. <br /> <br />a> <br />and the <br />31,2006 and <br />following <br /> <br />Our Responsibility Under Auditing Standards Gen <br /> <br />A material weakness is a significant deficiency, or comb <br />likelihood that a material misstatement of the financial <br />The finding reported is not considered a material weakness <br /> <br />As part of obtaining reasonable <br />tests of the City's compliance <br />tests was not to. provide an 0 . <br /> <br />t in more than a remote <br />by the entity's internal control. <br /> <br />ofmateria1 misstatement, we performed <br />ons, c and grants. However, the objective of our <br />. We noted no instances of noncompliance. <br /> <br />ional standards, is to pIan and perform our audit to <br />statements are free of material misstatement Because <br />and because we did not perform a detailed e,camination of <br />gal acts may exist and not be detected by us. <br /> <br />statements of the City, for the year ended December 31, 2006, we considered <br />con11'01) as a basis for designing our auditing procedures for the <br />financ. ents, but not for the purpose of expressing an opinion on the <br />Ac gIy,we do not express an opinion on the effectiveness of the City's internal <br />flY <br /> <br />A control deficien or operation of a control does not allow management or employees, in the normal <br />course of performing , to prevent or detect misstatements on a timely basis. A significant deficiency is a <br />control deficiency, or 1 deficiencies, that adversely affects the entity's ability to initiate, authorize, record, <br />process, or report financial ly in accordance with accounting principles generally accepted in the United States of <br />America such tbatthere is m a remote likelihood that a misstatement of the City's financial statements that is more than <br />inconsequential will not be or detected by the City's internal control. However, we identified the following deficiency <br />in internal con11'01 that we consider to be a significant deficiency. <br /> <br />Segregation of Duties <br /> <br />Our study and evaluation disclosed that because of the limited size of your office ~ the City has limited segregation of <br />duties~ A good internal control structure contemplates and adequate segregation of duties so that no one individual handles <br />transactions :from inception to completion. While we recognize that the City is not large enough to permit an adequate <br />segregation of duties in all respects, it is important that you be aware of this reportable condition. The main area where the <br />City has not been able to segregate functions is between genera11edger con11'01 and reconciliation of accounts. This is a <br />common area that is difficult to separate. <br /> <br />952.835.9090 · Fax 952.835.3261 <br />www.aemcpas.com <br />