HomeMy WebLinkAboutRepresentation Letter December 31, 2004 March 14, 2005
HLB Tautges Redpath, Ltd.
4810 White Bear Parkway
White Bear Lake, Minnesota 55110
We are providing this letter in connection with your audit of the financial statements of the City
of Oak Park Heights, Minnesota as of December 31, 2004 and for the year then ended for the
purpose of expressing an opinion as to whether the financial statements present fairly, in all
material respects, the respective financial position of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the City of Oak Park Heights, Minnesota and the
respective changes in financial position and cash flows where applicable, in conformity with U.S.
generally accepted accounting principles. We confirm that we are responsible for the fair
presentation of the previously mentioned financial statements in conformity with U.S. generally
accepted accounting principles. We are also responsible for adopting sound accounting policies,
establishing and maintaining internal control, and preventing and detecting fraud.
We confirm, to the best of our knowledge and belief, as of March 1, 2005 the following
representations made to you during your audit.
1. The financial statements referred to above are fairly presented in conformity with U.S.
generally accepted accounting principles and include all properly classified funds and
other financial information of the primary government and all component units required
by U.S. generally accepted accounting principles to be included in the financial
reporting entity.
2. We have made available to you all:
a) Financial records and related data and all audit or relevant monitoring reports, if
any, received from funding sources.
b) Minutes of all meetings of the City Council or summaries of actions of recent
meetings for which minutes have not yet been prepared.
3. There have been no communications from regulatory agencies concerning
noncompliance with, or deficiencies in, financial reporting practices.
4. There are no material transactions that have not been properly recorded in the
accounting records underlying the financial statements.
HLB Tautges Redpath, Ltd.
Representation Letter, Page 2
5. We believe the effects of the uncorrected financial statement misstatements
summarized in the attached schedule are immaterial, both individually and in the
aggregate, to the financial statements taken as a whole. In addition, you have
recommended adjusting journal entries that have been posted in the City of Oak Park
Heights' accounts. We are in agreement with these adjustments.
6. We acknowledge our responsibility for the design and implementation of programs and
controls to prevent and detect fraud.
7. We have no knowledge of any fraud or suspected fraud affecting the entity involving:
a) Management;
b) Employees who have significant roles in internal control, or
c) Others where the fraud could have a material effect on the financial statements.
8. We have no knowledge of any allegations of fraud or suspected fraud affecting the
entity received in communications from employees, former employees, analysts,
regulators, or others.
9. The City of Oak Park Heights, Minnesota has no plans or intentions that may materially
affect the carrying value or classification of assets, liabilities or fund equity.
10. The following, if any, have been properly recorded or disclosed in the financial
statements:
a) Related party transactions, including revenues, expenditures /expenses, loans,
transfers, leasing arrangements and guarantees, and amounts receivable from or
payable to related parties.
b) Guarantees whether written or oral, under which the City of Oak Park Heights,
Minnesota is contingently liable.
c) All accounting estimates that could be material to the financial statements,
including the key factors and significant assumptions underlying those estimates,
and we believe the estimates are reasonable in the circumstances.
11. We are responsible for compliance with the laws, regulations, and provisions of
contracts and agreements applicable to us, including tax or debt limits and debt
contracts; and we have identified and disclosed to you all laws, regulations and
provisions of contracts and agreements that we believe have a direct and material effect
on the determination of the financial statement amounts, including legal and contractual
provisions for reporting specific activities in separate funds.
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HLB Tautges Redpath, Ltd.
Representation Letter, Page 3
12. There are no:
a) Violations or possible violations of budget ordinances, laws and regulations
(including those pertaining to adopting, approving, and amending budgets),
provisions of contracts and agreements, tax or debt limits, and any related debt
covenants whose effects should be considered for disclosure in the financial
statements or as a basis for recording a loss contingency.
b) We are not aware of any pending or threatened litigation, claims, or assessments or
unasserted claims or assessments that are required to be accrued or disclosed in the
financial statements in accordance with Statement of Financial Accounting
Standards No. 5, and we have not consulted a lawyer concerning litigation, claims
or assessments,
c) Other liabilities or gain or loss contingencies that are required to be accrued or
disclosed by FASB Statement No. 5.
d) Reservations or designation of fund equity that were not properly authorized and
approved.
13. The City of Oak Park Heights, Minnesota has satisfactory title to all owned assets, and
there are no liens or encumbrances on such assets nor has any asset been pledged as
collateral.
14. The City of Oak Park Heights, Minnesota has complied with all aspects of contractual
agreements that would have a material effect on the financial statements in the event of
noncompliance.
15. The financial statements include all component units as well as joint ventures with an
equity interest, and properly disclose all other joint ventures and other related
organizations.
16. The financial statements properly classify all funds and activities.
17. All funds that meet the quantitative criteria in GASB Statement Nos. 34 and 37 for
presentation as major are identified and presented as such and all other funds that are
presented as major are particularly important to financial statement users.
18. Net asset components (invested in capital assets, net of related debt; restricted; and
unrestricted) and fund balance reserves and designations are properly classified and, if
applicable, approved.
19. Provisions for uncollectible receivables have been properly identified and recorded.
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HLB Tautges Redpath, Ltd.
Representation Letter, Page 4
20. Expenses have been appropriately classified in or allocated to functions and programs
in the statement of activities, and allocations have been made on a reasonable basis.
21. Revenues are appropriately classified in the statement of activities within program
revenues, general revenues, contributions to term or permanent endowments, or
contributions to permanent fund principal.
22. Interfund, internal, and intra - entity activity and balances have been appropriately
classified and reported.
23. Special and extraordinary items, if any, are appropriately classified and reported.
24. Deposits and investment securities are properly classified in category of custodial credit
risk.
25. Capital assets, including infrastructure assets, are properly capitalized, reported, and, if
applicable, depreciated.
26. We respect to information required by the Governmental Accounting Standards Board
(GASB) to be presented with the basic financial statements (required supplementary
information or RSI):
a) RSI is presented and measured according to authoritative guidelines on a basis
consistent with that of the prior year.
b) RSI is consistent with the basic financial statements.
c) Management's discussion and analysis (MD &A) is based on facts, decisions, or
conditions currently known to management and does not contain forecasts or other
prospective information.
d) The information in the budgetary comparison schedules is based on the original
legal budget, the amended legal budget, and the actual fund activity presented on
the same basis as the legally adopted budget.
27. In connection with your preparation of draft financial statement and related notes, we
confirm that management of the City of Oak Park Heights, Minnesota has reviewed,
approved and assumes responsibility for the financial statements and related notes as
required by Government Auditing Standards, and believe they are adequately supported
by the books and records of the government. We also confirm the following:
a) The individual responsible for overseeing the preparation of draft financial
statements and related notes is qualified to do so.
b) We have monitored the performance of the preparation of draft financial
statements and related notes.
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HLB Tautges Redpath, Ltd.
Representation Letter, Page 5
c) We made all decisions that involved entity management functions related to the
preparation of draft financial statements and related notes and accept full
responsibility for those decisions.
d) We have evaluated the adequacy of the services performed.
To the best of our knowledge and belief, no events, including instances of noncompliance, have
occurred subsequent to the balance sheet date and through the date of this letter that would
require adjustment to or disclosure in the aforementioned financial statements.
Signed:
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