Laserfiche WebLink
a _ <br />Management Responsibilities <br />City of Centerville <br />August 17, 2010 <br />Page 2 <br />Management is responsible for the basic financial statements and all accompanying information as well as all representations <br />contained therein. We will prepare a general ledger trial balance for use during the audit. Our preparation of the trial balance will <br />be limited to formatting information in the general ledger into a working trial balance. As part of the audit we will prepare a draft <br />of your financial statements and related notes. We will also enter the current year capital asset transactions into our software <br />based on information you provide. You are also responsible for making all management decisions and performing all <br />management functions; for designating an individual with suitable skill, knowledge, or experience to oversee our assistance with <br />the preparation of your financial statements and related notes and any other nonattest services we provide; and for evaluating the <br />adequacy and results of those services and accepting responsibility for them. <br />Management is responsible for establishing and maintaining effective internal controls, including monitoring ongoing activities; <br />for the selection and application of accounting principles; and for the fair presentation in the financial statements of the respective <br />financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, <br />each major fund, and the aggregate remaining fund information of the City and the respective changes in financial position and <br />where applicable, cash flows, in conformity with accounting principles generally accepted in the United States of America. <br />Management is also responsible for making all financial records and related information available to us and for the accuracy and <br />completeness of that information. Your responsibilities include adjusting the financial statements to correct material <br />misstatements and confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us <br />during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, <br />to the financial statements taken as a whole. <br />You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us <br />about all known or suspected fraud or illegal acts affecting the government involving (1) management, (2) employees who have <br />significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the financial <br />statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting <br />the government received in communications from employees, former employees, regulators, or others. In addition, you are <br />responsible for identifying and ensuring that the entity complies with applicable laws and regulations. You are responsible for the <br />preparation of the supplementary information in conformity with accounting principles generally accepted in the United States of <br />America. You agree to include our report on the supplementary information in any document that contains and indicates that we <br />have reported on the supplementary information. You also agree to present the supplementary information with the audited <br />financial statements OR make the audited financial statements readily available to users of the supplementary information no later <br />than the date the supplementary information is issued with our report thereon. With regard to electronic dissemination of audited <br />financial statements, including financial statements published electronically on your website, you understand that electronic sites <br />are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to <br />consider the consistency of other information in the electronic site with the original document. <br />952.835.9090 • Fax 952.835.3261 <br />www.aemcpas.com <br />2010 GAAS Audit Engagement Letter <br />10 <br />