11.03 - 2006 Audit Proposal - Laserfiche WebLink

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Y ' LarsonAlleri" CPAs, Consultants &Advisors www.larsonallen.com July 14, 2005 Honorable Mayor and Council Members City of Pequot Lakes City Clerk Office P O Box 361 Pequot Lakes, MN 56472 SCOPE We are pleased to confirm our understanding of the services we are to provide the City of Pequot Lakes ("you" or "your") for the year ended December 31, 2005. We will audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, which collectively comprise the entity's basic financial statements, of the City of Pequot Lakes as of and for the year ended December 31, 2005. Also, the document we submit to you will include the following additional information that will be subjected to the auditing procedures applied in our audit of the financial statements: 1. Combining and individual fund statements. 2. Supporting schedules The document will also include the following additional information that will not be subject to the auditing procedures applied in our audit of the financial statements, and for which our auditor's report will disclaim an opinion. 1. Management's Discussion and Analysis 2. Budgetary comparison schedules AUDIT OBJECTIVE The objective of our audit is the expression of an opinion as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the financial statements taken as a whole. Our audit will be conducted in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the City of Pequot Lakes and other procedures we consider necessary to enable us to express such an opinion. If our opinion on the financial statements is other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. This report will include a statement that the report is intended solely for the information and use of the audit committee, management, and specific PO Box 648, Brainerd, MN 56401-0648,218/828-0100,Fax 218/828-9503 14275 Golf Course Drive,Suite 300, Baxter, MN 56425