6.3. SR 06-15-2020 - Laserfiche WebLink

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Honorable Mayor and City Council City of Elk River Page 3 Uncorrected misstatements (Continued) The following summarizes the uncorrected misstatement of the financial statements: A fire relief pension related deferred inflow of resources in the amount of $117,478 was not recorded in the City's previous year's financial statements. As this is immaterial to governmental activities, the City is booking the net deferred inflow of resources in 2019 and running the adjustment through current year pension expense instead of restating beginning net position for the immaterial prior period amount. Corrected misstatements None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. No such disagreements arose during our audit. Management representations We have requested certain representations from management that are included in the management representation letter dated May 26, 2020. 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 City's financial statements or a determination of the type of auditors' 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. Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement 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 engagement. Other audit findings or issues We have provided a separate letter to you dated May 26, 2020, communicating internal control related matters identified during the audit. Audits of group financial statements We noted no matters related to the group audit that we consider to be significant to the responsibilities of those charged with governance of the group. Quality of component auditor's work There were no instances in which our evaluation of the work of a component auditor gave rise to a concern about the quality of that auditor's work. Limitations on the group audit There were no restrictions on our access to information of components or other limitations on the group audit.