Agenda - Council - 01/27/1987 - Laserfiche WebLink

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December 23, t986 PANNELL KERR FORSTER Certified Pubhc Accountants 410 Park Nal~onal Bank Blcl~ 5353 Wayzata Boulevard Minneapolis. MN 55416 Telephone (612) 545-0421 Mr. Noel J. Graczyk, Finance Director City of Ramsey 15153 Nowthen Bou].evard }~orthwest Rams ey, Minnesota 55303 Dear Mr. Graczyk: This letter is to explain our understanding of the arrangements for the services we are to perform for the City of Rams ey for the year ending December 31, 1986. We ask that you either confirm or amend that understanding. We will perform an examination of the City's financial statements. The purpose of our examination is to express an unqualified opinion on the fairness of the presentation of the City's finencJal statements for the year ending December 31, 1986, in conformity with gener&lly accepted accounting principles applied on a consistent basis. If we discover that we cannot issue an unqualified opinion, we will discuss the reasons with you before submitting a different kind of report. As you know, management has th(~ p~imary responsibility for properly recording transactions in the records, f¢,r safeguarding assets, and for preparing accurate financial statements. ~]r basic audit function is to add reliability to those financial statements. Our examination will be conducted in accordance with generally accepted auditing standards. It will include a ~eview of the system of internal accounting control, analytical reviews, a~d tests of the transactions and/or balances to the extent we believe necessarf. It will not include a detailed audit of all transactions and is not design(d to discover defalcations or other irregulari- ties, should any exist. If th( City desires that we expand the scope of our services in th]_s ~:egard, this ]etter of understanding will require revision. As a result of ou:c review of ye,ur system of internal accounting control, we will report to you any major observ(d ~eaknesses. In addition, we will perform t~e required state legal compliance audit covering five main categories of compli~.nc~{ with Minnesota laws to be tested and prepare a report on our findings~ Our testing procedures will comply with provisions of the Legal Comp!ia'.~ce Audit Gui~-e pursuant to Minnesota Statutes Sec. 6.65. We will also perform an audit. (f federal financial assistance activity in accor- dance with the Si,~gle Audit Ac1 requirements and provide the corresponding reports.