HomeMy WebLinkAboutRepresentation Letter - Finance Dir HLB Tautges Redpat , Ltd.
4810 White Bear Parkway
White Bear Labe, Minnesota 55110
We are providing this letter in connection with your audit of the financial statements of the City
of oaf. Park -lei ghts, Minnesota as of D ecem ber 3 1, 201 1 and for• the year then eroded fog• th
purpose of expressing opinions as to whether- the financial statements ents prresent fairly,, in all
material respects, the respective financial position of the ern ental activities, the sin s-
type activities, each ma4or* fund, and the aggregate remaining fund information of the City of
Oak Park Heights, Minnesota and the respective changes in financial position and, where
applicable, cash flows thereof in conformity with U.S. generally accepted accounting principles.
W confirm that we are responsible for the fair• presentation of the previously mentioned
financial statements in eonf or inity with .S. generally accepted accounting principles. We are
also responsible for adopting sound accounting policies, establishing and maintaining effective
internal control over financial reporting, and preventing tin and detecting fraud.
We eonfirr , to the best of our knowledge and belief, as of the date listed below, the Followin
representations made to you during your audit.
1. The fimancial 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 generally accepted accounting principles to be inclUd d in the financial reportin
entity.
2. We have remade available to you all:
a Financial records and related data.
b minutes of'all mectings of the ;ity Council or summaries of actions of decent
i eetings for which minutes have not yet been prepared.
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 nder ;lying the financial statements.
5. We believe the effects of the uncorrected financial statement misstatements
summarized ire the audit r ana ernent letter are immaterial, both individually and in the
aggregate, to the financial sta.tements for each opinion unit.
FIL "I'a tges Redpath, Ltd.
Representation Letter, Page 2
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 ancial to me ts,
8. We have no I(nowledge of any allegations of fraud or suspected fl -aud affecting the
entity received In communications from employees, former employees, analysts,
regulators, or others.
9, We have a process to track the statLIS of audit findings and recommendations.
10. we have identified to you any previous audits, attestation engagements, and other
studies related to the audit obJectives and whether related recommendations have been
implemented.
11. we have provided our views on reported ridings, conclusions, and recommendations',
as well as our planned corrective actions, for the report.
12. The City of Oak Park Heights, Minnesota has no plats or intentions that may materially
affect the carrying value or classification of assets, liabilities or equity.
13. The following, if any, have been properly recorded or disclosed in the financial
a Related party transactions,, including revenues, expenditures/expenses, loans,
transt' rs, 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 ant assu ption underlying those estimates
and measurements. We believe the estimates and measurements are reasonable in
the circurnstances.
14. we are responsible for compliance with the laws, regulations and provisions of
contracts and grant agreements applicable to Lis, including tax or debt limits and debt
contracts; and we have identified and disclosed to you all laws, regulations and
provisions of contracts and grant agreements that we believe have a dlreet and material
effect obi the determination of the financial statement amounts or other financial data
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H "Fautges 1 edpa.th, I.A.
Representation Letter, 'age
significant to the audit objectives, including legal and contractual provisions for
reporting specific activities in separate ftinds.
15. There are too:
a ) Violations or possible violations of budget ordinances, laws and regulations
(including those pertaining to adopting, approving, and amending budgets),
provisions of contracts and grant agreements, tax or debt limits, and ally related
debt covenants whose effects should be considered for disclosure in the financial
statements, or as a basis for recording a loss contingency, or for reporting
noncomp ra.nce,
b ) Unasserted claims or assessments that our lawyer has advised Lis are probable of
assertion and must be disclosed in accordance with generally accepted accounting
principles.
c Others liabilities or gain or loss contingencies that are required to be accrued or
disclosed by generally accepted ac oUr1ting Principles.
16. As part of your audit, you assisted with preparation of the financial statements and
related notes. We have designated an individual with suitable sell, knowledge, on
experience to oversee your services and have made all management decisions and
performed all management functions, we have reviewed, approved, and accepted
r•espon ib1 sty 1'r those financial
ral statements and related notes.
t
17. The City of oak Park Fleights, Minnesota ota bas satisfactory title to all owned assets, and
there are no liens or encumbrances on such assets nor has any asset been pledged as
collateral.
18. The City of oak Park Heights, Minnesota has complied with all aspects of contractual
agreements ents that would have a material effect on the financial statements in the evert of
noncompliance.
19. We have followed all applicable laws and regulations in adopting, approving, and
amending budgets.
20. The financIal statements include all component Lin its as welt as joint ventures with an
equity inter ;e st, and proper I disclose ail other joint ventures and other" related
i
organizations.
21. The financial statements properly classify all funds and activities.
IILB T t ; s Redpath, Ltd.
R epresentation Letter, Page
22. All funds that inn et the quantitative criteria in GASB Statement Nos. 34 and 37 for
presentation a s major; are identified and presented as such and all other funds that are
presented as major are par important to financial statement users.
23. Components of net assets (inv in ca pital assets, net of related debt; rest and
unrestricted and equity a .IOUnts are properly classified and, if applicable, approved.
24. Inv estments, derivative transactions, and land and other real estate hell by endowment
are properly alUed.
2 . Provisions f� r U11COIlectible receivables have been properly identified and recorded.
26. ='xpen es have been appropriately classified in or allocated t o functions s are ro r•ar r
in the statement of activities, a nd allocations have been made on a reaso b asis.
27. Revenues are appropriately classified in the statement of activities within program
revenues, g enera l revenues, contributions) t o t erin o permanent endo o
co ntributions to permanent fund principal.
28. Interfund, internal, and infra - entity activity and balances have been appropriately
classified and reported.
9. Deposits and investment securities an derivative tr ansactions are properly classified as
to risk and are properly disclosed.
30. Capital assets, including infrastructure a nd intangible assets, are properly capitalized,
reported, arid, if applicable, depreciated.
31. We have appropriately disclosed the C of Oak Park Heights, Minnesota's policy
regarding whether to f ast apply restricted r unrestricted resources ce when all expense is
incurred for purposes for w both restricted and unrestricte ne assets are available
a nd have determined that net assets were properly recognized under the policy.
32. We acknowledge our responsibility for the r equired SUpplementar•y information RS1 ).
T he RSY is measured and presented within prescribed Uldelin s and the methods of
measurement and presentation have not changed from those used in the prior period.
We have disclosed to you any significant assumptions and interpretations underlyin
the measurement and presentation of the RSI.
HLB Tautges Redpath, Ltd.
Representation Letter, Pag 5
33 . Wi th respect to th co mbining and individ nonniajor fund financial statements:
a We acknowledge our responsibility for presenting the combining and individual
nonmajor fund financial statements in accordance with accounting principles
generally accepted in the U nited States of n nerica., and we believe the com bining
and individual nonma'or* fund financial statements, inclu ding i f orm and content,
are fairly presented in accordance with accounting principles generally accepted ill
the United States o f America. The methods of measurement and presentation of the
combining and individual nonmajor fund financial statements have not changed
from those used in the prior period, and we have disclosed to you any significant
assumptions or interpretations underlying the r ea Wrement. an presentation of the
supplementary information.
b I the combining and individual non major ft financial s tatements are not
presented ith the audited Financial statements, we H ill make the audited f illancial
stater eats readily avai lable to the Intended Users of the supplementary in formation
no later than the date we issue the supplementary information and the auditor's
report thereon.
34 . We have evaluated the City of Oak Park Fleight , Minnesota's ability to continue as a
going concern and have included appropriate disclosures, as necessary,, in the financial
35 . We have evaluated and classified any subsequent everts as recognized or
no .recog i ed t hrough the date of this letter. No events, including instances o
noncompliance, have c occurred subsequent to the balance sheet date and through the
date of .leis letter that WOUld require adjustment to or disclosure in the aforementioned
fi nancial statements.
Date:
Signed: 1�4
Title: F inance D irector � �°
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