6.2. SR 06-02-2014 - Laserfiche WebLink

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Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing. Qualitative Aspects of Accounting Practices Management has the responsibility for selection and use of appropriate accounting policies.In accordance with the terms of our engagement letter,we will advise management about the appropriateness of accounting policies and their application.The significant accounting policies used by the fire relief are described in Note 2 to the financial statements.No new accounting policies were adopted and the application of existing policies was not changed during the year.We noted no transactions entered into by the Association during the year that were both significant and unusual,and of which,under professional standards,we are required to inform you,or transactions for which there is a lack of authoritative guidance or consensus. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events.Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected.The most sensitive estimate affecting the financial statements was the actuarial accrued liability.This is based on the funding formula prescribed by the State of Minnesota.We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral,consistent,and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit,other than those that are trivial,and communicate them to the appropriate level of management.There were no misstatements noted during the audit Disagreements with Management For purposes of this letter,professional standards define a disagreement with management as a financial accounting,reporting,or auditing matter,whether or not resolved to our satisfaction,that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated April 14,2014. Management Consultations with Other Independent Accountants In some cases,management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a"second opinion"on certain situations.If a consultation involves application of an accounting principle to the Association's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements,our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts.To our knowledge,there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters,including the application of accounting principles and auditing standards,with management each year prior to retention as the Association's auditors.However,these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. People +Process® Going Beyondthe _2_ Numbers