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HomeMy Public PortalAbout2007-2008 Audit Management_Representation_Letter October 8, 2008 Larson & Rosenberger Certified Public Accountants 765 North Main Spanish Fork, Utah 84660 Ladies and Gentlemen: We are providing this letter in connection with your audit of the financial statements of Moab City as of June 30, 2008 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 governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of Moab City and the respective changes in financial position and cash flows, where applicable 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 October 8, 2008 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 account groups of the primary government. 2. We have made available to you all— a. Financial records and related data. b. Minutes of the meetings of 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. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. 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. We acknowledge our responsibility for the design and implementation of programs and controls to prevent and detect fraud. We have no knowledge of any fraud or suspected fraud affecting the entity involving: Management, Employees who have significant roles in internal control, or Others where the fraud could have a material affect on the financial statements. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, analysts, regulators, short sellers, or others. We have a process to track the status of audit findings and recommendations. We have provided our views on reported findings, conclusions, and recommendations, as well as our planned corrective actions, for the report. The City has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or fund equity. 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 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. 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 determination of financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds. There are no— a. Violations or possible violations of budget ordinances, laws and regulations (including those pertaining to adopting and amending budgets), provisions of contracts and grant 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 our lawyer 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. As part of your audit, you prepared the draft financial statements and related notes. We have designated a competent employee to oversee your services and have made all management decisions and performed all management functions. We have reviewed, approved, and accepted responsibility for those financial statements and related notes. The City 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. The City has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. The financial statements properly classify all funds and activities. 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. 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. Provisions for uncollectible receivables have been properly identified and recorded. 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. 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. Inter-fund, internal, and intra-entity activity and balances have been appropriately classified and reported. Deposits and investment securities are properly classified as to risk. Capital assets, including infrastructure assets, are properly capitalized, reported, and, if applicable, depreciated. Required supplementary information (RSI) is measured and presented within prescribed guidelines. To the best of our knowledge and belief, no events 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:___________________________ Date:_______________ Donna J. Metzler, Manager Signed:___________________________ Date:_______________ Rachel Ellison, Recorder Signed:_____________________________ Date:________________ Jennie Ross, Treasurer