7.5. SR 06-04-2007 - Laserfiche WebLink

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June 4, 2007 Honorable Mayor Klinzing, Members of the City Council, and Citizens of Elk River: The Comprehensive Annual Financial Report (CAFR) for the City of Elk River for the fiscal year ended December 31,2006, is hereby submitted. Minnesota State Statutes and the City's ordinance require an annual audit of the City's accounts by the State Auditor's Office or by independent certified public accountants. The firm of Abdo, Eick, and Meyers was selected to perform the City's audit and their unqualified opinion has been included in this report. The independent auditor's report is included in the financial section of this report. This report was prepared by the City's Finance Department and responsibility for both the completeness and accuracy of this data, as well as the fairness of this presentation including all enclosures, rests with the City. To the best of my knowledge and belief, the enclosed data are accurate in all material respects and are recorded in a manner designed to present fairly the financial position and the results of operations of the various funds of the City. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed to both protect the City's assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of these financial statements in accordance with generally accepted accounting principles (GAAP). Internal accounting controls are designed to provide reasonable but not absolute assurance regarding the safeguarding of the City's assets against loss, theft, or misuse, and ensuring that adequate financial records are maintained for preparing financial statements, and maintaining accountability for assets. The development of an appropriate internal control system requires estimates and judgments by management to ensure that the costs do not exceed the benefits of the system. The City of Elk River's internal control structure is designed so that the estimated costs of control do not exceed the benefits. The CAFR is presented in three sections: Introductory, Financial, and Statistical. The Introductory section includes this transmittal letter, the City's organizational chart, and a list of City officials. The Financial section includes the Independent Auditor's Report, Management's Discussion and Analysis (MD&A), government wide and fund financial statements, notes to the financial statements, and the combining statements and individual fund statements. The Statistical section includes selected financial, economic, and demographic information generally presented on a multi-year basis. Generally accepted accounting principles require that management provide a narrative introduction overview and analysis to accompany the basic financial statements in the form ofMD&A. This letter of transmittal is designed to compliment the MD&A and should be read in conjunction with it. The City of Elk River's MD&A can be found immediately following the report of the independent auditors.