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-AUl>tiiT S`U.IVmARY The following it -a summary of�our.audit work, key. con6lusions, 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 RESi'UNSIBILITY UNDER.AUDITING STANDARDS GENERAI.I.Y ACCEPTED IN THEUNITED STATES OF AMERICA AND GOVERNMENTAUDITINGSTANDARDS 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-Decem.ber 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 GrivernunentAudiang.Standards; as well as Wbi oration 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 petforined the audit according to the planned scope wid.timing previously discussed and coordinated in. order tobbbWn sufficient audit evidence and complete an effective audit. Aurr Oi IN10N AND FINDINGS Based bn-our audit dthe'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 repotting. that we. considered to be a material. weakness: 1. Due. to the. limited size Qfthe City-'s office staff -the City has limited segregation oftl�lties in. certain areas: The results of our testing disclosed na instances of noncompliance required'to be: repaRrted sunder Government Auditing Standards. • We reported three findings based on our testing of the City's compliance with Minnesota laws and regulations: I. 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 Decemiber.34, 2020, 2. Minnesota Statutes require payroll time sheet approval for employees. The time sheet for the .City.'s one employee didnot contain. a declaration :indicating that. the fads recited on the payroll are correct to the. best of the employee's information and belief. 3. Minnesota Statutes require. unclaimed property held foriftorethan three year (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 current audit f, year.