Management Report - Laserfiche WebLink

Home

1 SIGNIFICANT ACCOUNTING POLICIES The City's management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City are described in Note 1 of the notes to basic financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that were recognized in the financial statements in a different period than when the transaction occurred. AUDIT ADJUSTMENTS Our audit was designed to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. In addition, we are obligated by auditing standards generally accepted in the United States of America to inform you of any adjustments arising from the audit that could, in our judgment, either individually or in the aggregate, have a significant effect on the City's financial reporting process. All proposed audit adjustments (whether recorded or uncorrected) were reviewed with management and were determined, individually or in the aggregate, not to have a significant effect on the financial reporting process. In addition, we are not aware of any misstatements which have not been corrected by management. ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS The City uses estimates of useful lives for the depreciation of capital assets. Management expects any differences between estimates and actual amounts of these estimates to be insignificant. We reviewed and tested management's procedures and underlying supporting documentation in the area discussed above. We concluded that the accounting estimates and management judgments appeared to consider all significant factors and resulted in appropriate accounting recognition. MANAGEMENT REPRESENTATIONS We have requested certain representations from management that are included in the management representation letter dated May 22, 2009. OTHER MATTERS Auditing standards also require us to consider the following topics as potential areas that may need to be communicated to the appropriate officials or committee: • Other information in documents containing audited financial statements • Disagreements with management • Consultations with other accountants • Major issues discussed with management prior to retention as auditors • Difficulties encountered in performing the audit We did not encounter any circumstances and we are unaware of any items in any of these areas which we believe require further communication. -2-