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HomeMy WebLinkAbout1999 05-10 City Council Special Meeting PacketT---- AGENDA SPECIAL MEETING MAPLEWOOD CITY COUNCIL 6:30 P.M., Monday, May 10, 1999 Maplewood Room, Municipal Building Meeting No. 99 -10 _: 1. Annual Financial Report and Audit for 1998 :� tV AGENDA NO C I ►otion ii V.. Counoil ., tzidorsed...... .. AGENDA REPORT Modifl TO: Cit Council FROM: Finance Director. „�.� RE: INFORMATION FOR MEETING WITH AUDITORS DATE: Ma 3, 1999 At 6:30 p.m. on Monda Ma 10 there is a special Council meetin to review the annual financial report and audit reports. Please brin to the meetin y our cop of the 1998 Annual Financial Report. Three additional reports will also be reviewed at the meetin 1. No material weakness letter 2. Le compliance audit report letter. 3. Auditors' communication letter. Copies of these reports are attached. PAF1NANCE\WP\AGN\AUD1TMTG.WPD MROPeat Marwick LLP 4200 Norwest Center Telephone 612 305 5000 Telefax 612 305 5039 90 South Seventh Street Minneapolis, MN 55402 April 1, 1999 Honorable Mayor and Members of the City Council City of Maplewood, Minnesota: We have audited the general purpose financial statements of the City of Maplewood, Minnesota (the City) for the year ended December 31, 1998, and have issued our report thereon dated April 1, 1999. In planning and performing our audit of the general purpose financial statements of the City we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements. An audit does not include examining the effectiveness of internal control and does not provide assurance on internal control. Our consideration of internal control would not necessarily disclose all matters in internal control that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more internal control components does not reduce to a relatively low level the risk that errors or fraud 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. However, we noted no matters involving internal control and its operation that we consider to be material weaknesses as defined above. This report is intended soley for the information and use of the mayor, members of the City Council;` and management. Very truly yours, f< M.'.lck LCP Member Firm of KPMG International MROPeat Marwick LLP 4200 Norwest Center Telephone 612 305 5000 Telefax 612 305 5039 90 South Seventh Street Minneapolis, MN 55402 Independent Auditors' Report on Legal Compliance To the Honorable Mayor and Members of the City Council City of Maplewood, Minnesota: We have audited the general purpose financial statements of the City of Maplewood, Minnesota (the City), as of and for the year ended December 31, 1998, and have issued our report thereon dated April 1, 1999. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant to Minnesota Statute Sec. 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures, as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements: Our study included all of the listed categories. The results. of our tests indicate that for the items rested, the City complied with the materials terms and conditions of applicable legal provisions. Further, for the items not tested, based on our audit and the procedures referred to above, nothing came to our attention to indicate that the City had not complied with such legal provisions. This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than theses specified parties. p p April 1, 1999 K ' PMC.rTe&4- M a e-wick LLB Member Firm of KPMG International MNOPeat Marwick LLP 4200 Norwest Center Telephone 612 305 5000 Telefax 612 305 5039 90 South Seventh Street Minneapolis, MN 55402 April 1, 1999 The Honorable Mayor and Members of the City Council City of Maplewood, Minnesota: We :.have audited the general .purpose financial statements of the City f Maplewood, ' Ci tY p od, Minnesota (the City), for the year ended December 31, .1998, and have issued our report thereon ' p eon dated April 1, 1999. Under generally accepted auditing standards we are rovidin you with p g y the following information related to the conduct of our audit. OUR RESPONSIBILITY UNDER GENERALLY ACCEPTED AUDITING STANDARDS Our responsibility under generally accepted auditing standards is to express an ' p opinion on the general purpose financial statements of the City based on our audit. In carrying ' rry gout this responsibility, we assessed the risk that the general purpose financial statements may contain a material, misstatement, either intentional or unintentional, and designed and condu ' ' g cted our audit to provide reasonable, not absolute, assurance of detecting misstatements that are material to the general purpose financial statements. In addition, we considered the internal control structure of the City to gain a basic understanding of the internal control olicies and procedures p p cedures in order to design an effective and efficient audit approach, not for the u ose of providing p rp p viding assurance on the internal control structure. Furthermore, our audit, including he limited inquiries • g we made in connection with the Year 2000 issue which may exist will be identified on the adequacy of the City's remediation plans related to Year 2000 financial or operational issues es, or on whether the he responsibility p City is or will become Year 2000 compliant. Year 2000 compliance is t ' lity of management. SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used by the City re described in then • ty notes to the financial statements. The City adopted the provisions of the Governmental Accounting tandards g Boards Statement No. 31, Accounting and Financial Reporting or Certain Investments a .f and for External Investment Pools. We noted no transactions entered into b the City during the Y ty g year that were both significant and unusual, and of which, under professional standards . p , we are required to inform you, or transactions for which there is a lack of authoritative uidan g ce or consensus. Member Firm of KPMG International AN W.... Peat Marwick LLP 2 MANAGEMENT JUDGMENTS AND ACCOUNTING ESTIMATES Accounting estimates are an integral part of the financial statements prepared by management and are based upon management's current judgments. Certain accounting estimates are particularly sensitive because of their significance to the general purpose financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. We evaluated the key factors and assumptions used to ascertain that they are reasonable in relation to the general purpose financial statements of the City taken as a whole. SIGNIFICANT AUDIT ADJUSTMENTS We proposed no corrections to the general purpose financial statements that in the aggregate could, in our judgment, have a significant effect on the City's financial reporting process. DISAGREEMENTS /CONSULTATIONS There were no disagreements with management on financial accounting and reporting matters that, if not satisfactorily resolved, would have caused a modification of our report on the City's 1998 general purpose financial statements. To the best of our knowledge management has not consulted with or obtained opinions, written or oral, from other independent accountants during the past year that were subject to the requirements of Statement of Auditing Standards No. 50, Reports on the Application o pp f Accounting Principles. We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. We encountered no difficulties in dealing with management in performing our audit. This information is intended solely for the use of the City Council and should not be used for any other purpose. Very truly yours, Iv(o. -wick LLB'