Audit of the Financial Statements
We will conduct our audit in accordance with auditing standards generally accepted in
the United States of America (U.S. GAAS) and Government Auditing Standards of the
Comptroller General of the United States of America; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the basic
financial statements are free from material misstatement. An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due
to error, fraudulent financial reporting, misappropriation of assets, or violations of laws,
governmental regulations, grant agreements, or contractual agreements. An audit also
includes evaluating the appropriateness of accounting policies used and the reason-
ableness of significant accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
Because of the inherent limitations of an audit, together with the inherent limitations of
internal control, an unavoidable risk that some material misstatements or noncompliance
may not be detected exists, even though the audit is properly planned and performed in
accordance with U.S. GAAS and Government Auditing Standards of the Comptroller
General of the United States of America.
In making our risk assessments, we consider internal control relevant to the City’s prep-
aration and fair presentation of the financial statements in order to design audit proce-
dures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City’s internal control. However, we will communi-
cate to you in writing concerning any significant deficiencies or material weaknesses in
internal control relevant to the audit of the financial statements that we have identified
during the audit.
We will issue a written report upon completion of our audit of the City’s June 30, 2016
and 2017 basic financial statements. Our report will be addressed to those charged with
governance of the City. We cannot provide assurance that an unmodified opinion will be
expressed. Circumstances may arise in which it is necessary for us to modify our opin-
ion, add an emphasis-of-matter or other-matter paragraph(s), or withdraw from the
engagement.
In accordance with the requirements of Government Auditing Standards, we will also
issue a written report describing the scope of our testing over internal control over
financial reporting and over compliance with laws, regulations, and provisions of grants
and contracts, including the results of that testing. However, providing an opinion on
internal control and compliance over financial reporting will not be an objective of the
audit and, therefore, no such opinion will be expressed.
