5.1. ERMUSR 04-13-2010 - Laserfiche WebLink

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April ~, 200 ~~~il~~l0 l~c~i~7~~, ;1~1V ~,i=~~,'3~ Management and Public Utilities Commission Elk River Municipal Utilities Elk River, Minnesota We have audited the statements of net assets of the Elk River Municipal Utilities the Utilities} of the City of Ells River, Minnesota, the City} for years ended December 31, 2009 and 2oQ8, and the related statements of revenues, expenses and changes in net assets and cash flows for the years then ended and have issued our report thereon Apri16, 2010, Professional standards require that we provide you with the following infoiination related to our audits. ®ur ~,esponsibility Under Auditing ,Standards Generally Accepted in the United States As stated in our engagement letter, our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States. Gur audit of the financial statements does not relieve you or management of your responsibilities, fur responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement, As part of our audit, we considered the internal control over financial reporting of the Utilities. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are responsible far communicating significant matters related to the audit that are, ii1 our professional judgment, relevant to your responsibilities in overseeing the financial reporting process, However, we are not required to design procedures specifically to identify such matters, Significant .Audit Findings A deficiency in internal control exists when the design or operation of a cantroi does not a11ow management ar employees, ~ the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis, A material weal~less is a deficiency, or combination of deficiencies, hl vlternal cont~•ol such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected on a timely basis. fur consideration of internal control over financial reporting was for the limited purpose described ha the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, signif cant deficiencies, or material weaknesses have been identified, We did not identify any deficiencies in internal controf over financial reporting that we consider to be material weaknesses, as defn~ed above. 11'lYlti'.Ht;lll{'.~1t1S.C{)tll