6.4. SR 06-21-2004 - Laserfiche WebLink

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City of Elk River March 19, 2004 Page Three Issues Discussed Prior to Retention of Independent Auditors 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 City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing our audit. Governmental Accounting Standards Board (GASB) Statement No. 34 As mentioned previously, the City has implemented GASB Statement No. 34 for the December 31, 2003 financial statements. The main change resulting from the implementation was issuing financial statements under a new reporting model. The main features of this model are summarized below: · Narrative analysis through the Management Discussion & Analysis (MD&A) letter. · Government-wide f'mancial repotting that builds upon traditional fund based £mancial statements. The Government-wide financial statement are intended to give a more concise view of the government as a single unified entity. More long-term focus for governmental activities. The City now has fixed assets, bonds and compensated absences payable on its Statement of Net Assets for Governmental Activities. The addition of this information should help direct users to a long-term view of the £mancial data. A distinction between major and non-major funds. More information is provided on individual funds that meet the criteria to be included as major funds. The general fund, Improvement Bonds and Public Safety/City Hall Expansion are considered major governmental funds. All enterprise funds are reported as major business-type activity. · Budgeting analysis that considers both the adopted and final budget. 952.835.9090 · Fax952.835.3261 www. aemcpas,com