HomeMy WebLinkAboutRepresentation Letter-Finance DirectroHLB Tautges Red path, Ltd,
1 White Bear Parkway
White Bear Lake, Minnesota 5 5110
This representation letter is provided in connection with your audit of the financial statements of
the City of Oak Park Heights, Minnesota, which comprise the respective financial position of the
governmental activities, the business -type fund information, each major fund, and the aggregate
rem aini ng fund information as of December 31, 2012, and the respecti ve change s 1n f ina czal
position and, where applicable, cash flows for the year then ended, and the related notes to the
financial statements, for the purpose of expressing opinions as to whether the f z ancial
statements are presented fairly, in all material respects., in accordance with accounting principles
generally accepted in the United States of America U.S. GAAP .
Certain representations in this fetter are described as being limited to matters that are mat
ften - is are considered material, regardless of sire, if they involve an omission or misstatement of
accounting information that, in li ght of surrounding circumstances, males it probable that the
.j ud ment of a reasonable person relying on the information would be changed or influenced by
the omission or misstatement. An o or misstatement that is monetarily small in amount
could be considered material as a result of qualitative factors.
We confirm, to the best of our knowledge dodge and belief, as of the date listed below, the following
representations made to you during your audit.
Financial Statements
1 We have fulfilled our responsibilities, as set out in the r*
terms of the audit engagement letter
dated etobo i �, including our• responsibility for the preparation and fair presentation
of the financial statements and for the preparation of the supplementary information in
accordance with applicable criteria.
2 ) The financial statements ref ffed to above are fairly presented in conformity with U.S.
generally accepted accounting principles and include all properly classified funds ds and other
financial information of the primary go emment and all component units required by
g enerally accepted accounting principles to be included in the financial re rtin entity.
3) We acknowledge e our• responsibility for the design, implementation, and maintenance of
intemal control relevant to the preparation and fair presentation of financial statements that
a re free f rom material misstatement, whether due t fraud or error.
HLB autes Red path, Ltd.
Representation Letter, Page 2
4) We acknowledge our responsibility for the design, implementation, and maintenance of
internal control to prevent and detect fraud.
5) Significant assumptions we used in making accounting; estimates are reasonable.
6) .elated party relationships and transactions, including revenues, expend 1 tures expenses,
loans, transfers, leasing arrangen cents, and guarantees,, and amounts receivable from or
payable to related parties have been appropriately accounted for and disclosed in accordance
with the requirements of U.S. G AS .
7) All events subsequent to the date of the financial statements and for which U.S. GAAP
requires adjustment or disclosure have been adjusted or disclosed, No everts, including
instances of noncompliance, have occurred subsequent to the balance sheet date and througrh
the date of this letter that would require adjustment to or disclosure in the aforementioned
financial statements.
8 "I'he effects of uncorrected misstatements are immaterial, both individually and in the
aggregate, to tea financi l statements for each opinion unit. A list of uncorrected
misstatements is attached to the representation letter.
9) The effects of all known actual or possible litigation, claims, and assessments have been
accounted for and disclosed in accordance with U.S. GAAP.
10 Guarantees, whether written or oral, under which the City of Oak Park Heights, Minnesota is
contingently liable, if any, have been properly recorded or disclosed.
Infoi *oration Provided
1 1 We have provided you with;
a ) Access to all information, of which we are aware, that is relevant to the preparation and
fair presentation of the financial statement, such as records, documentation, and other
matters.
b Additional information that you have requested from us for the purpose of the audit.
c ) Unrestricted access to persons within the entity from whom you determined it necessary
to obtain audit evidence.
d Minutes utes of the meetings of the City of oak Park. Heights, Minnesota or summaries of
actions of recent meetings for which minutes have not yet been prepared.
HLB Tautges Re dp at ., Ltd.
Representation Letter, lac 3
l 2 All material transactions have been recorded in the accounting records and are reflected in the
financial statements.
ts.
l 3 We have disclosed to you the results of our assessment of the risk that the financial
statements may be materially misstated as a result of fraud.
l We have no knowledge of any fraud or suspected fraud d that affects the entity and involves:
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.
1 We have no knowledge of any allegations of :gaud or suspected fraud affecting the entity's
financial statements communicated by employees, former mploye s, regulators, or others.
l We have disclosed to you all known instances of noncompliance or suspected noncompliance
with provisions of laws, regulations, contracts, or grant agreements, or abuse, whose effeets
should be considered when preparing financial statements.
1 ' We have disclosed to you all known actual or possible litigation, cl ip s, and assessments
whose effects should be considered when preparing the financial statements.
l 8 We have disclosed to you the identity of the entity's related panties and all the related party
relationships and transactions of which we are aware.
Government— specific
l We ha ve made available to you all financial records and related data.
20 There have been no communications from regulatory agencies concerning noncompliance
with, or deflclenci s i , f x ancia.l reporting practices.
21 We have a process to track the status of audit findings and recorr mendatio s.
22 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.
2 We have provided our views on reported findings, conclusions, and recommendations, as
well as our planned corrective actions, for the report.
IJLB Tautges Redpath, Ltd.
Representation Letter, Page e
2 4) 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 equity.
2 We are responsible for compliance with the laws, regulations, and provisions of contracts and
grant 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
grant agreements that we believe have a direct and material effect on the deterniMation of
# ncial statement amounts on other financial data significant to the audit objectives,
including legal and contractual provisions for reporting specific activities in separate funds.
26 ) There are no violations or possible violations of budget ordinances, lags and regulations
(including those pertaining to adopting, approving, and amending budgets), provisions of
contracts and ;rant 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, or for reporting; on noncompliance,
27 As part of our audit, you assisted with preparation of the financial statements and related
notes. We have designated an individual with suitable skill knowledge, or expermice to
oversee your services and have jade all management decisions and perforated all
manager - lent functions. We have reviewed, approved, and accepted responsibility for those
financial statements and related notes.
2 The City of oak Park Heights, Minnesota has satisfactory title to all owne d assets, and there
are no liens or encumbrances on such assets nor has any asset been pledged as collateral.
2 he City of oaf. 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.
o We have followed all applicable lags aid regulations in adopting, approving, and amendin
budgets.
1 The finanelal statements include all component units as well as Joint venture s with an equity
interest, and properly disclose al other Joint venture s and other related organ zati ons.
2 `Fhe financial statements properly classify all funds and activities.
3 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.
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