HomeMy WebLinkAboutRepresentation Letter March 15,2002 March 15, 2002
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 general purpose financial
statements of the City of Oak Park Heights, Minnesota as of December 31, 2001 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 financial position of the City of Oak Park Heights,
Minnesota and the results of its operations and the cash flows of its proprietary funds in
conformity with accounting principles generally accepted in the United States of America. We
confirm that we are responsible for the fair presentation in the general purpose financial
statements of financial position, results of operations, and cash flows of the proprietary funds in
conformity with accounting principles generally accepted in the United States of America. 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, 2002, the following
representations made to you during your audit.
1. The financial statements referred to above are fairly presented in conformity with
generally accepted accounting principles and include all properly classified funds and
account groups of the primary government and all component units required by
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.
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.
J„
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 general purpose financial statements taken as a whole.
6. There has been no:
a) Fraud involving management or employees who have significant roles in internal
control.
b) Fraud involving others that could have a material effect on the financial statements.
7. 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 balances.
8. The following, if any, have been properly recorded or disclosed in the financial
statements:
a) Related parry 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.
9. We are responsible for compliance with the laws, regulations, and provisions of
contracts and agreements applicable to us; 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.
10. There are no:
a) Violations or possible violations of, laws and regulations (including those
pertaining to adopting 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) Unasserted claims or assessments that the City attorney has advised us are probable
of assertion and must be disclosed in accordance with Financial Accounting
Standards Board (FASB) Statement No. 5, Accounting for Contingencies,
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.
HLB Tautges Redpath, Ltd.
Representation Letter, Page 3
11. 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.
12. The City of Oak Park Heights, Minnesota has complied with all aspects of contractual
agreements that would have a material effect on the general purpose financial
statements in the event of noncompliance.
13. There are no audit, finance, or other committees that require additional audit
communication in accordance with Statement on Auditing Standards #61.
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.
Ju I01 t K( putt' Clerk/Finance Director
MISSTATEMENT EVALUATION FORM
Name of Governmental Unit City of Oak Park Heights Date of Combined Balance Sheet 12/31/01
Fund Type or Account Group General
This form should be used to accumulate known errors by fund type or account group detected by nonsampling substantive
tests (including differences in accounting estimates) and projected errors from substantive tests that used sampling. This
form should not include normal closing entries that the client expects the auditor to prepare and book. At the end of the
audit, the auditor evaluates all uncorrected misstatements. In a governmental audit of GPFS, materiality evaluations are made
at the fund type and account group level. Thus, a separate Misstatement Evaluation Form should be maintained for each
fund type and account group and discretely presented component unit.
Note - All nonrecurring deductions of $500 or less are treated as rounding differences.
Financial Statement Effect -
Amount of Over (Under) Statement of:
Description W/P Total Total Fund
of Misstatement Ref. Amount Assets Liabilities Equity Revenues Expenditures
I Investmenst recorded at cost B 02 $3,125 `— ($3,125) $3,125 ($3,125)
I
I
Total $3,125 ($3,125) $0 $3,125 ($3,125) $0
Client Corrections in Total
Net Unadjusted Misstatement - This Year $3,125 ($3,125) $0 $3,125 ($3,125) $0
Net Unadjusted Misstatement - Last Year $9,570 $9,570 $0 $9,570 $0 ($9,570)
Net Unadjusted Misstatement $12,695 $6,445 $0 $12,695 ($3,125) ($9,570)
Materiality ** $27,600 GP 04a
** Check Final financial statement totals do not vary significantly from those used in calculating planning materially and/or
net misstatements are so insignificant that it is not necessary to recalculate materiality levels. (Use planning materiality)
❑ Check Planning materiality recalculated for final analysis.
RESULTS: X Net financial statement effect immaterial, pass on all adjustments
Net financial statement effect material, record adjustments deemed
necessary (list below)
Completed By DM Date
HLB TR, Ltd. 3/14/02 RV
MISSTATEMENT EVALUATION FORM
Name of Governmental Unit City of Oak Park Heights Date of Combined Balance Sheet 12/31/01
Fund Type or Account Group Special Revenue
This form should be used to accumulate known errors by fund type or account group detected by nonsampling substantive
tests (including differences in accounting estimates) and projected errors from substantive tests that used sampling. This
form should not include normal closing entries that the client expects the auditor to prepare and book. At the end of the
audit, the auditor evaluates all uncorrected misstatements. In a governmental audit of GPFS, materiality evaluations are made
at the fund type and account group level. Thus, a separate Misstatement Evaluation Form should be maintained for each
fund type and account group and discretely presented component unit.
Note - All nonrecurring deductions of $500 or less are treated as rounding differences.
Financial Statement Effect -
Amount of Over (Under) Statement of:
Description W/P Total Total Fund
of Misstatement Ref. Amount Assets Liabilities Equity Revenues Expenditures
Total $0 $0 $0 $0 $0 $0
Client Corrections in Total
Net Unadjusted Misstatement - This Year $0 $0 $0 $0 $0 $0
Net Unadjusted Misstatement - Last Year $0 $0 $0 $0 $0 $0
Net Unadjusted Misstatement $0 $0 $0 $0 $0 $0
Materiality ** $3,971 GP 04a
** Q Ch(Final financial statement totals do not vary significantly from those used in calculating planning materially and/or
net misstatements are so insignificant that it is not necessary to recalculate materiality levels. (Use planning materiality)
❑ Ch( Planning materiality recalculated for final analysis.
RESULTS: X Net financial statement effect immaterial, pass on all adjustments
Net financial statement effect material, record adjustments deemed
necessary (list below)
Completed By DM Date
HLB TR, Ltd. 3/14/02 RV
MISSTATEMENT EVALUATION FORM
Name of Governmental Unit City of Oak Park Heights Date of Combined Balance Sheet 12/31/01
Fund Type or Account Group Debt Service
This form should be used to accumulate known errors by fund type or account group detected by nonsampling substantive
tests (including differences in accounting estimates) and projected errors from substantive tests that used sampling. This
form should not include normal closing entries that the client expects the auditor to prepare and book. At the end of the
audit, the auditor evaluates all uncorrected misstatements. In a governmental audit of GPFS, materiality evaluations are made
at the fund type and account group level. Thus, a separate Misstatement Evaluation Form should be maintained for each
fund type and account group and discretely presented component unit.
Note - All nonrecurring deductions of $500 or less are treated as rounding differences.
Financial Statement Effect -
Amount of Over (Under) Statement of
Description W/P Total Total Fund
of Misstatement Ref. Amount Assets Liabilities Equity Revenues Expenditures
Total $0 $0 $0 $0 $0 $0
Client Corrections in Total
Net Unadjusted Misstatement - This Year $0 $0 $0 $0 $0 $0
Net Unadjusted Misstatement - Last Year $0 $0 $0 $0 $0 $0
Net Unadjusted Misstatement $0 $0 $0 $0 $0 $0
Materiality ** $23,979 ,GP 04a
** ❑ Ch(Final financial statement totals do not vary significantly from those used in calculating planning materially and/or
net misstatements are so insignificant that it is not necessary to recalculate materiality levels. (Use planning materiality)
0 Ch( Planning materiality recalculated for final analysis.
RESULTS: X Net financial statement effect immaterial, pass on all adjustments
Net financial statement effect material, record adjustments deemed
necessary (list below)
Completed By DM Date
HLB TR, Ltd. 3/14/02 RV
MISSTATEMENT EVALUATION FORM
Name of Governmental Unit City of Oak Park Heights Date of Combined Balance Sheet 12/31/01
Fund Type or Account Group Capital Project
This form should be used to accumulate known errors by fund type or account group detected by nonsampling substantive
tests (including differences in accounting estimates) and projected errors from substantive tests that used sampling. This
form should not include normal closing entries that the client expects the auditor to prepare and book. At the end of the
audit, the auditor evaluates all uncorrected misstatements. In a governmental audit of GPFS, materiality evaluations are made
at the fund type and account group level. Thus, a separate Misstatement Evaluation Form should be maintained for each
fund type and account group and discretely presented component unit.
Note - All nonrecurring deductions of $500 or less are treated as rounding differences.
Financial Statement Effect -
Amount of Over (Under) Statement of
Description W/P Total Total Fund
of Misstatement Ref. Amount Assets Liabilities Equity Revenues Expenditures
Total $0 $0 $0 $0 $0 $0
Client Corrections in Total
Net Unadjusted Misstatement - This Year $0 $0 $0 $0 $0 $0
Net Unadjusted Misstatement - Last Year $0 $0 $0 $0 $0 $0
Net Unadjusted Misstatement $0 $0 $0 $0 $0 $0
Materiality ** $43,981 GP 04a
** Ch(Final financial statement totals do not vary significantly from those used in calculating planning materially and/or
net misstatements are so insignificant that it is not necessary to recalculate materiality levels. (Use planning materiality)
❑ Ch Planning materiality recalculated for final analysis.
RESULTS: X Net financial statement effect immaterial, pass on all adjustments
Net financial statement effect material, record adjustments deemed
necessary (list below)
Completed By DM Date
HLB TR, Ltd. 3/14/02 RV
MISSTATEMENT EVALUATION FORM
Name of Governmental Unit City of Oak Park Heights Date of Combined Balance Sheet 12/31/01
Fund Type or Account Group Enterprise
This form should be used to accumulate known errors by fund type or account group detected by nonsampling substantive
tests (including differences in accounting estimates) and projected errors from substantive tests that used sampling. This
form should not include normal closing entries that the client expects the auditor to prepare and book. At the end of the
audit, the auditor evaluates all uncorrected misstatements. In a governmental audit of GPFS, materiality evaluations are made
at the fund type and account group level. Thus, a separate Misstatement Evaluation Form should be maintained for each
fund type and account group and discretely presented component unit.
Note - All nonrecurring deductions of $500 or less are treated as rounding differences.
Financial Statement Effect -
Amount of Over (Under) Statement of:
Description W/P Total Total Fund
of Misstatement Ref. Amount Assets Liabilities Equity Revenues Expenditures
Prepaid insurance is not recorded $11,424 ($11,424) ($11,424) $11,424
Per Workpaper 101 - Estimated
amount ( prior yr would have
offsetting entry)
Acummulated depreciation per $3,405 $3,405 $3,405
fixed asset report is greater
than per financial statement
see w/p J -04
unrecorded sales tax refund
estimated at $5,200 $5.200 x($5,200) ($5,200)
Total $20,029 ($13,219) $0 ($13,219) $0 $11,424
Client Corrections in Total
Net Unadjusted Misstatement - This Year $20,029 ($13,219) $0 ($13,219) $0 $11,424
Net Unadjusted Misstatement - Last Year $0 $0 $0 $0 $0 $0
Net Unadjusted Misstatement $20,029 ($13,219) $0 ($13,219) $0 $11,424
Materiality ** $17,535 GP 04a
** Q Ch(Final financial statement totals do not vary significantly from those used in calculating planning materially and/or
net misstatements are so insignificant that it is not necessary to recalculate materiality levels. (Use planning materiality)
❑ Chf Planning materiality recalculated for final analysis.
RESULTS: X Net financial statement effect immaterial, pass on all adjustments
Net financial statement effect material, record adjustments deemed
necessary (list below)
Completed By DM Date
HLB TR, Ltd. 3/14/02 RV