6.4. SR 06-21-2004 - Laserfiche WebLink

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ABDO EICK & Certified Public Accountants & Consultants March 19, 2004 Grandview Square 5201 Eden Avenue Suite 370 Edina, MN 55436 Honorable Mayor and City Council City of Elk River Elk River, Minnesota We have audited the general purpose f'mancial statements of the City of Elk River for the year ended December 31, 2003 and have issued our report thereon dated March 19, 2004. 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 of America and OMB Circular A-133 As stated in our engagement letter, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance about whether the financial statements are free of material misstatement. Because an audit is designed to provide reasonable, but not absolute assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, fraud or other illegal acts may exist and not be detected by us. In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on internal control over £mancial reporting. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, non-compliance 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. Also, in accordance with OMB Circular A-133, we examined, on a test basis, evidence about the City's compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement applicable to each of its major federal programs for the purpose of expressing an opinion on the City's compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City's compliance with those requirements. We noted one instance of non-compliance. Collateral Coverage In accordance with Minnesota statute, section 118a.03, the Utility Commission is required to have pledged collateral equal to 110 percent of the deposits not covered with insurance. At December 31, 2003, the Utility Commission was $200,000 under collateralized. 952.835.9090 · Fax952.835.3261 www. aemcpas.com