07-26-1999 Council Packet - Laserfiche WebLink

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I I I r f I I I I I I I I I I I I I PRINCIPALS M<^MALLOY MONTAGUE-KAPNOWSKr RADIEVICH KENNETH W MALLOY. CPA THOMAS M MONTAGUE. CPA THOMAS A KARNOWSKI. CPA PAUL A RADOSEVICH. CPA WILLIAM J LAUER CR» INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council and Residents City of Orono Orono, Minnesota We have audited the general purpose financial statements of the City of Orono as of and for the year ended December 31, 1998, and have issued our report thereon dated May 14, 1999. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether City of Orono’s general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. T^.e results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards . Internal Control Over Financial Reporting In planning and performing our audit, we considered the City of Orono’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended for the information of the City Council and management of the City of Orono, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. May 14,1999 iimiicu. y J y »•!«•»! 1C 410 PARK national BANK BUIIONO &3&3 WAYZATA BOOLEVAMO MiNNEAPOLiS MINNESOTA *»&4t6 TELEPHONE 612 S45 04.’4 TELEEAX 612 545 0569 -119-