2022 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, 2022. 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, 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, 2022: •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 no findings based on our testing of the City’s compliance with Minnesota laws and regulations: FOLLOW-UP ON PRIOR YEAR FINDINGS AND RECOMMENDATIONS As a part of our audit of the City’s financial statements for the year ended December 31, 2022, we performed procedures to follow-up on the findings and recommendations that resulted from the prior year audit. We reported the following findings that are no longer findings in the current year audit of the City: •Minnesota Statutes require the person claiming payment, prepare the claim in writing. The prior year audit reported 1 of 28 disbursements we tested did not have a claim in writing to support the payment made. This is not a finding in the current year. •Minnesota Statutes require prompt payment of local government bills within a standard payment period of 35 days from the receipt of goods and services for governing boards that meet at least once a month. If such obligations are not paid within the appropriate time period, local governments must pay interest on the unpaid obligations at the rate of 1.5 percent per month or part of a month. The prior audit reported 1 of 25 disbursements tested was not paid within the statutory time limit. This is not a current year finding.