Compliance with All Ethics Requirements Regarding Independence
The engagement team and others in our Firm have complied with all relevant ethical
requirements regarding independence. Safeguards that have been applied to eliminate
threats to independence or reduce them to an acceptable level include annual certifica-
tion by all Firm staff of independence.
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies.
A summary of the significant accounting policies adopted by the City is included in the
notes to the financial statements. There have been no new accounting policies and no
changes in significant accounting policies or their application during the year ended
June 30, 2015. No matters have come to our attention that would require us, under
professional standards, to inform you about (1) the methods used to account for sig-
nificant unusual transactions and (2) the effect of significant accounting policies in
controversial or emerging areas for which there is a lack of authoritative guidance or
consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by man-
agement and are based on management's current judgments. Those judgments are
normally based on knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive
because of their significance to the financial statements and because of the possibility
that future events affecting them may differ markedly from management’s current
judgments.
The most sensitive accounting estimates affecting the financial statements are:
e Estimated lives and depreciation methods for depreciable assets.
e Collectability of receivables.
e Net OPEB obligation.
e Net pension liability.
Management's estimates of the above are based on various criteria. We evaluated the
key factors and assumptions used to develop these estimates and determined that it is
reasonable in relation to the basic financial statements taken as a whole and in relation
to the applicable opinion units.
