2009 06-19 CCP - Laserfiche WebLink

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Honorable Mayor and Members of the City CounciI City of Gem Lake Page 2 Significant Audit Findings. Qualitative Aspects ofAccounting Practices Management. is .responsible .for the selection • and use. of appropriate accounting policies. The: significant accounting policies used by City of Gem Lake. are described in Note 1 to the financial statements, Na new .accounting policies were, adopted and the application..ofexisting policies was not changed during 2008: We .noted no transactions. entered into by the City. of Gem Lake during the year for .whick there is a lack of authoritative guidance or consensus. There are no significant transactions that have •been recognized in the financial statements in a different period than. when the transaction occurred. Accounting estimates are.. an integral part of the financial statements prepared by management. and are based on management's knowledge and experience about past and current eventsand assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and: because of thepossibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Estimated useful lives of depreciable capital assets - Management's estimate of useful lives for depreciable assets is based on guidance recoinmended by authoritative accounting literature and past experiences. The useful life of a depreciable asset determines the amount of depreciation that. will be recorded in any given reporting period as wellas the amount of accumulateddepreciation that is reported at the end of a reporting period. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and:. Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to theappropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Disagreements with Management For :purposesof this letter, professional standards define a disagreement with management as a financial. accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are includedin the management representation letter dated April 24, 2009.