07-10-1995 Council Packet - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I PRINCIPALS KENNt IM W MAUOV. CPA THOMAS M MONTAGUE. CPA THOMAS A KAHNOWSKI. CPA PAUL A HAOOStVICH CPA INDEPENDENT AUDITOR S REPORT ON THE INTERNAL CONT ROL STRUCTl?RE BASED ON AN AUDIT OF THE GENERAL PURPOSE nNANCIAL 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. Minnesota, as of and for the year ended December 31, 1W4. and have issued our report thereon dated May 17. 1995. We conducted our audit in accordance with generally accepted auditing standards and Government Auditini! 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. In planning and performing our audit of the general purpose financial statements of the City of Orono for the year ended December 31. 1994. we considered its internal control structure in order to determine our auditing procedures for the purpo.se of expressing our iTpinion on the general purpose financial statements and not to prtwide assurance on the internal ci^ntrol structure. The management of the City of Orono is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, e.stimates and judgments by management are required to assess the expected benefits and related costs of internal cimtrol structure policies and procedures. The objectives of an internal control .structure are to provide management with reasonable, but not absolute. a.s.surance that assets are safeguarded against loss from unauthorized use or dispositiim. and that transacti»'ns are executed in accordance w ith management’s authorization and recorded properly ti' permit the preparation of general purpose financial statements in accordance with generally accepted acc»>unting 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 peritnls 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 prtKedures may deteriorate. (continued) cewTiriKo lO AOCOiJfMT AfMTS 4Ul PAMK NANOfaAl (4ANK HUKDtNKj I SVAy /.AIA (♦< >tn I VAHO MINNI AIH n i:> MINNI fiOTA V»4U, OV t>4fi (>4:'4 Hi I ♦ AK »|1.' S4‘. tJMm -130-