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AUDIT SUMMARY { The following is a sumM of our audit work, key conclusions; and other information that we. consider important.orthat. is -required to by communicated to-the'City*Coune.il,.administration; orthose charged with governance ofthe City. OUR RISPONSIBILFTY UNDER AUDITING STANDARDS GF,N'FRAI,LY ACCEPTED IiYTHE UNIrFD:SIA['ES OF A.M.-ERICA AND GOVERNMENTAUD&INOSTANDA"S We have audited the financial statements of the governmental activities; the.btisiriess-type::activities, and each maior fund.of the City as of and.for the year ended December 31, 2021. Professional standards require. that we. provide ypu.With:information.abbut our responsibilities under auditing standards generally accepted in the United States of America and.-Governinent.AuditingStandalds; as well as certain information related. to the planned scope acid tirh� ng. df our audit. We,have communicated such. itformation to you yerbally,: in our audit engagement letter; andin a separate letter dated :May 20, 2022. Professional standards also require. that we:communieate the following iriformatioit related to our audit. IkANNED SCOPE AND.TUMINC OOTIIE Ai1Drr We performed the audit according to the planned scope:and liming previously discussed and coordinated in .order to obtain suf icient. 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 3:1,.2021: • 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 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 GovenjsieW Auditing. Standards. • We reported two findings. based on our testing ofthe City's compliance with Minnesota laws and regulations: 1. Minnesota Statutes require prompt payment of local governthent bills within a standard payment period of 35 days from the receipt of goods and services. for goveming. boards that meet at least otice. a month. If such obligations are not paid within the. appropriate time period, local governments must pay interest on the unpaid obligadoM .at:the rate of 1,5 .percent per month or part.of a month. One of twenty-f ve disbursements: tested was not paid within thestatutory time limit. 2. Minnesota Statute§ require where'a•claim. for money due on .goods or services furnished can be. itemized in the ordinary course of business, the person claiming paymoM or the claimant's agent, shall prepare the claim in written items, One. of twenty-eight disbursements tested did not have a claim. in writing*ja support.the payment. made: -1-