2020 Management Letter - Laserfiche WebLink

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-1- AUDIT SUMMARY The following is a summary of our audit work, key conclusions, and other information that we consider important or that is required to be communicated to the City Council, administration, or those charged with governance of the City. OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA AND GOVERNMENT AUDITING STANDARDS We have audited the financial statements of the governmental activities, the business-type activities, and each major fund of the City as of and for the year ended December 31, 2020. Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to you verbally and in our audit engagement letter. Professional standards also require that we communicate the following information related to our audit. PLANNED SCOPE AND TIMING OF THE AUDIT We performed the audit according to the planned scope and timing previously discussed and coordinated in order to obtain sufficient audit evidence and complete an effective audit. AUDIT OPINION AND FINDINGS Based on our audit of the City’s financial statements for the year ended December 31, 2020: • We have issued an unmodified opinion on the City’s basic financial statements. • We reported one matter involving the City’s internal control over financial reporting that we considered to be a material weakness: 1. Due to the limited size of the City’s office staff, the City has limited segregation of duties in certain areas. • The results of our testing disclosed no instances of noncompliance required to be reported under Government Auditing Standards. • We reported three findings based on our testing of the City’s compliance with Minnesota laws and regulations: 1. Minnesota Statutes require the governing body of the City to annually delegate the authority to make electronic funds transfers to a designated business administrator or chief financial officer or the officer’s designee. The City did not complete this delegation for the year ended December 31, 2020. 2. Minnesota Statutes require payroll time sheet approval for employees. The time sheet for the City’s one employee did not contain a declaration indicating that the facts recited on the payroll are correct to the best of the employee’s information and belief. 3. Minnesota Statutes require unclaimed property held for more than three years (or one year for unpaid compensation) to be reported and paid or delivered to the state Commissioner of Commerce each year. This requirement was not met by the City for the curren t audit year.