2008 FINANCIAL STATEMENTS - Laserfiche WebLink

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LarsonAllerf (.l;Y CPAs, Cansulranrs &. Advisors www,farsonallen.com REPORT ON INTERNAL. CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS -Honorable Mayor and Members of the City Council City of Gem Lake., Minnesota We have audited the financial statements of the governmental activities, the business -type activities;. each rliajor fursd, and the aggregate remaining fund information of the City of Gem Lake, Minnesota as of. and for the year ended becember 31, 2008, which collectively comprise the City's basic financial Statements and have issued' .our report thereon dated April 24, 2009. We .conducted our audit -in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Govem- moat Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit; we. considered the City's internal controloverJinaricial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose,of expressing. -an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we. do not express an opinion on the' effectiveness of'the City's internal control over financial reporting. A control deficiency exists when the design or operation --of a control does not allow management or employees, in the normal course of performing their assigned furteiions, to prevent or detect misstatements. on a timely basis. A significant deficiency is a control deficiency, or combination. of control deficiencies,- that adversely affects the .City's ability to: initiate, authorize, record., process., or report financial data reliably in accordance with U.S. generally accepted accounting principles such that there is more than a remote likelihood that: a misstatement of the City's financial statements that is more than inconsequential will not ba prevented or:detected'hY-1he.City's internal control over financial reporting. A material. weakness is a significant deficiency, or combination.of significant deficiencies, that results in more than a remote likelihood that a material misstatement- of Aho financial statements will not be prevented or detected:by the City's internal Control. �. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily identify*all deficiencies in the. internal control that might be significant deficiencies and accordingly, would not.*npcessarily -disclose aII significant deficiencies that are also considered to be material weaknesses. We consider the deficiency described as item 2008-1 in the :accompanying schedule of findings and responses to be a material weakness in internal control overfinandfal reporting., I (31} 1„rxmAllen UP is a mernb r of lexia lnlcrn�ttetmal, ;t %vorldwide network of.inderkni G nt accounting ;ind cmis ti in firms. 11,i�At.