2008-06-25 CC Packet - Laserfiche WebLink

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Grandview Square 5201 Eden Avenue Suite 370 Edina, MN 55436 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS Honorable Mayor and Council City of Centerville, Minnesota We have audited the accompanying fmancial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Centerville, Minnesota (the City), as of and for the year ended December 31,2007 which collectively comprise the City's basic financial statements and have issued our report thereon dated May 29,2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. In planning and performing our audit of the fmancial statements of the City as of and for the year ended December 31,2007, in accordance with auditing standards generally accepted in the United States of America, we consider the City's internal control over fmancial reporting as a basis of designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness ofthe City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report fmancial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the City's fmancial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider fmdings 2007-1 and 2007-2 described in the accompanying schedule of fmdings and responses to be significant deficiencies in internal control over financial reporting. A material weakness is a significant deficiency, or combination of significant deficiencies, that result in more than a remote likelihood that a material misstatement of the fmancial statements will not be prevented or detected by the City's internal control over fmancial reporting. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we do not consider any of the above significant deficiencies to be material weaknesses. -62- 952.835.9090 . Fax 952.835.3261 www.aemcpas.com