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<br />INDEPENDENT AUDITOR’S REPORT
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<br />ON MINNESOTA LEGAL COMPLIANCE
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<br />To the City Council and Management
<br />City of Gem Lake, Minnesota
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<br />We have audited, in accordance with auditing standards generally accepted in the United States of
<br />America and the standards applicable to financial audits contained in Government Auditing Standards,
<br />issued by the Comptroller General of the United States, the financial statements of the governmental
<br />activities, the business-type activities, and each major fund of the City of Gem Lake, Minnesota (the City)
<br />as of and for the year ended December 31, 2020, and the related notes to the financial statements, which
<br />collectively comprise the City’s basic financial statements, and have issued our report thereon dated
<br />June 22, 2021.
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<br />MINNESOTA LEGAL COMPLIANCE
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<br />In connection with our audit, we noted that the City failed to comply with provisions of the claims and
<br />disbursements and miscellaneous provisions sections of the Minnesota Legal Compliance Audit Guide for
<br />Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to
<br />accounting matters as described in the Schedule of Findings and Responses as findings 2020-002,
<br />2020-003, and 2020-004. Also, in connection with our audit, nothing came to our attention that caused us
<br />to believe that the City failed to comply with the provisions of the contracting and bidding, deposits and
<br />investments, conflicts of interest, public indebtedness, and tax increment financing sections of the
<br />Minnesota Legal Compliance Audit Guide for Cities, insofar as they relate to accounting matters.
<br />However, our audit was not directed primarily toward obtaining knowledge of such noncompliance.
<br />Accordingly, had we performed additional procedures, other matters may have come to our attention
<br />regarding the City’s noncompliance with the above-referenced provisions, insofar as they relate to
<br />accounting matters.
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<br />CITY’S RESPONSES TO FINDINGS
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<br />The City’s responses to the findings identified in our audit are described in the accompanying Schedule of
<br />Findings and Responses. The City’s responses were not subjected to the auditing procedures applied in
<br />the audit of the financial statements and, accordingly, we express no opinion on them.
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<br />PURPOSE OF THIS REPORT
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<br />The purpose of this report is solely to describe the scope of our testing of compliance and the results of
<br />that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any
<br />other purpose.
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<br />Minneapolis, Minnesota
<br />June 22, 2021
<br />C E R T I F I E D
<br />A C C O U N T A N T S
<br />P UBLIC
<br />PRINCIPALS
<br />Thomas A. Karnowski, CPA
<br />Paul A. Radosevich, CPA
<br />William J. Lauer, CPA
<br />James H. Eichten, CPA
<br />Aaron J. Nielsen, CPA
<br />Victoria L. Holinka, CPA/CMA
<br />Jaclyn M. Huegel, CPA
<br />Kalen T. Karnowski, CPA
<br />Malloy, Montague, Karnowski, Radosevich & Co., P.A.
<br />5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
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