5.1. ERMUSR 05-08-2012 - Laserfiche WebLink

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r •~ y ~~RS LLP Certtfied PuGlic Accountmits & Consultaits Apri124, 2012 5201 F.den Avenue Spite 250 8dina, MN 55436 Management and Public Utilities Commission Elk River Municipal Utilities Elk River, Minnesota We have audited the statements of net assets of the Elk River Municipal Utilities (the Utilities) of the City of Elk River, Minnesota, (the City) for years ended December 31, 2011 and 2010, and the related statements of revenues, expenses and changes in net assets and cash flows for the years [hen ended and have issued our report thereon April 24, 2012. Professional standards require that we provide you with [he following information related to our audits. Our Responsibility Under Auditing Standards Generally Accepted in the United States As stated in our engagement letter, our responsibility, as described by professional standazds, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but no[ absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered [he intemal control over financial reporting of the Utilities. Such considerations were solely for the purpose of determining our audit procedures and no[ to provide any assurance concerning such internal control. We are responsible for communicating significant matters related to the audit [hat are, in our professional judgment, relevant [o your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically [o identify such matters. Significant Audi[ Findings A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in [he normal course of performing their assigned functions, [o prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in intemal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. We did not identify any deficiencies in intemal control over financial reporting that we consider to be material weaknesses, as defined above. 952.835.9090 Fax 952.835.3261 www.aemepas.wm