05.02 - 2012 Audit - Laserfiche WebLink

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Honorable Mayor and City Council Members City of Pequot Lakes Page 4 Other audit findings or issues (continuedJ We understand this material weakness is already known to management and represents a conscious decision by management and the City Council as a result of cost or other considerations. We acknowledge management is responsible for making decisions concerning costs and the related benefits. We are responsible to communicate significant deficiencies and material weaknesses in accordance with professional standards regardless of management's decisions to ensure that the Board of directors is aware of this situation. Other information in documents containing audited financial statements With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of ineasurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management's responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI. With respect to the Combining Balance Sheet — Nonmajor Governmental Funds and Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Nonmajor Governmental Funds (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated April 2, 2013. Our auditors' opinion, the audited financial statements, and the notes to financial statements should only be used in their entirety. Inclusion of the audited financial statements in a document you prepare, such as an annual report, should be done only with our prior approval and review of the document. *** The purpose of this communication is solely to provide you with information about findings or issues arising from the audit that are significant and relevant to your responsibility to oversee the financial reporting process and compliance. This communication is an integral part of an audit performed in accordance with Government Auditing Standards. This communication is not suitable for any other purpose. � �� P CliftonLarsonAllen LLP Brainerd, Minnesota April 2, 2013