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In accordance with Government Auditing Standards, we have also issued a report dated May 2, 2006, on <br />our consideration of the City's internal control over financial reporting and on our tests of its compliance <br />with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose <br />of that report is to describe the scope of our testing of internal control over financial reporting and <br />compliance and the results of that testing and not to provide an opinion on the internal control over <br />financial reporting or on compliance. That report is an integral part of an audit performed in accordance <br />with Government Auditing Standards and should be considered in conjunction with this report in <br />considering the results of our audit. <br />The Management's Discussion and Analysis, which follows this report letter, is not a required part of the <br />basic financial statements, but is supplementary information required by accounting principles generally <br />accepted in the United States of America. We have applied certain limited procedures, which consisted <br />principally of inquiries of management, regarding the methods of measurement and presentation of the <br />required supplementary information. However, we did not audit the information and express no opinion <br />on it. <br />Our audit was conducted for the purpose of forming opinions on the financial statements that collectively <br />comprise the City's basic financial statements. The introductory section, combining and individual fund <br />statements and schedules, and statistical section, as listed in the table of contents, are presented for <br />purposes of additional analysis and are not a required part of the basic financial statements. The <br />combining and individual fund statements and schedules have been subjected to the auditing procedures <br />applied in the audit of the basic financial statements and, in our opinion, are fairly stated, in all material <br />respects, in relation to the basic financial statements taken as a whole. The introductory section and <br />statistical section have not been subjected to the auditing procedures applied in the audit of the basic <br />financial statements and, accordingly, we express no opinion on them. <br />n"at oy1 /J �kr � C-4 Cd� /1- <br />May 2, 2006 <br />-12- <br />