5.1. ERMUSR 05-14-2013 - Laserfiche WebLink

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•ABDO IVY t; EICK & ®, oil. MEYERS LLP Certified Public Accountants&Consultants May 6,2013 5201 Eden Avenue Suite 250 Edina,MN 55436 Management and Public Utilities Commission Elk River Municipal Utilities Elk River,Minnesota We have audited the financial statements of the business-type activities of the Elk River Municipal Utilities(the Utilities)of the City of Elk River, Minnesota,(the City)for years ended December 31,2012 and 2011. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter dated November 12,2012. Professional standards require that we provide you with the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States As stated in our engagement letter,our responsibility,as described by professional standards,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 not absolute, assurance that the financial statements are free of material misstatement. As part of our audit,we considered the internal control over financial reporting of the Utilities. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However,we are not required to design procedures specifically to identify such matters. Significant Audit Findings 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 have been identified. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions,to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency,or combination of deficiencies, in internal 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. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses,as defined above. Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement,we performed tests of compliance with certain provisions of laws,regulations,contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However,providing an opinion on compliance with those provisions was not an objective of our audit. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under statutes set forth by the State of Minnesota. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing. 952.835.9090 • Fax 952.835.3261 www.aemcpas.com