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FORM 07
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<br />AUDI'POP.S' REPORT ON INTERNAL CONTROLS (ACCOUNTING AIQD
<br />AD'�iINISTRATIVE) BASED ON A STUDY AND EVt1LUA'PION MADE AS A PaRT
<br />O? AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATE:°SENTS
<br />�ND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDI`P ACT
<br />Cit` Council
<br />Cit�� of Roseville, Minaesota
<br />We nave examined the general purpose financial statements of the
<br />City of Roseville, Minnesota, for the year ended December 31,
<br />1988, and have issued our report theron dated March 30, 1989.
<br />Based on our examination, we made a study and evaluation of the
<br />internal control systems, including applicable internal adminis-
<br />trative controls, used in administering federal financial assis-
<br />tance ororams to the extent we considered necessary to evaluate
<br />the systems as required by generally accepted auditing standards,
<br />the standar3s for financial and compliance audits contained in
<br />the Standards for Audit of Governmental Orgar.izations, ProQrams,
<br />Activities, and Functions, issued by the U.S. General �ccounting
<br />Office, the Single Audit Act of 1984, an3 tne provisions of OAiB
<br />Circular A-128, Audits of State and Loca1 Governments. For the
<br />purpose of tnis renort, we nave classit�ed tne signi icant inter-
<br />nal accounting and administrative controls used in administering
<br />federal financial assistance programs in tne following categor-
<br />ies: accounting controls - cash and investments, receivables,
<br />inventory, fixed assets, oayables and accrued liabilities, debt
<br />and fund equity; administrative controls - political activity,
<br />civil rights, cash management, financial reoorting and
<br />elicibility.
<br />The �nanagement of the City of Roseville, Minnesota, is respons-
<br />ible ior establishing and maintaining internal control systems
<br />usea in administering rederal financial assistance orograms. Zn
<br />fu1=i11ing that responsibility, estimates and judgements by man-
<br />age,:.ent are required to assess tn� expected benefits and related
<br />costs of control procedures. The objectives of internal control
<br />syst�ms used in administering federal financial assistance pro-
<br />gra;-.s are to provide management with reasonable, but not abso-
<br />lute, assurance that, with respect to Federal financial assis-
<br />tance orograms, resource use is consistent with 1aws, regula-
<br />tio^:s, and oolicies; resources are safeguarded against waste,
<br />Loss, and misuse; and reliable data are obtained, maintained, and
<br />fairly disclosed in reoorts.
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