07-08-1996 Council Packet - Laserfiche WebLink

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PRINCIPALS KENNETH W MALLOV. CWA THOMAS M MONTAGUE. CPA THOMAS A KARNOWSKI. CPA PAUl A RADOSEVtCH CPA WILLIAM J LAUER. CPA INDEPENDENT AUnTTOR'S RFPORT ON THE INTERNAl CONTROL STRUCTURE BASED ON AN AUDIT OF THE GENERAL PURPOSE FlNANCIAl STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING 5 . A\T RDS City Council and Residents City of Orono Orono, Minnesota We have audited the general purpose financial statements of the City of Orono, Minnesota, as of and for the year ended December 31, 1^5, and have issued our report thereon dated May 29, 1996. We conducted our audit in accordance with generally accepted auditing standards and Govemmeni Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The management of the City of Orono is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibilit>\ estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are .o provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and proceduies may deteriorate. In planning and performing our audit of the general purpose financial statements of the City of Orono for the year ended December 31, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and net to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. (continued) csr^TiF^ieo F>lJOL.IC 410 PAMK national OANH BUILDING ) WAV/ATA BOULEVARD MINNEAPOLIS MINNESOTA SS410 TELEPHONE 612 S4S 04^4 TELEFAX 612 64S0569 -128-