of America. Please note that the determination of abuse is subjective and Government
Auditing Standards does not require auditors to detect abuse.
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 communicate
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.
Compliance with Laws and Regulations
As part of obtaining reasonable assurance about whether the financial statements are
free of material misstatement, we will perform tests of the City’s compliance with the
provisions of applicable laws, regulations, contracts, and agreements. However, the
objective of our audit will not be to provide an opinion on overall compliance and we will
not express such an opinion.
Audit of Major Program Compliance
Our audit of the City’s June 30, 2018 and 2019 major federal award programs compliance
will be conducted in accordance with the requirements of the Single Audit Act, as
amended; and the Uniform Guidance, and will include tests of accounting records, a
determination of major programs in accordance with the Uniform Guidance and other
procedures we consider necessary to enable us to express such an opinion on major
federal award program compliance and to render the required reports. We cannot provide
assurance that an unmodified opinion on compliance will be expressed. Circumstances
may arise in which it is necessary for us to modify our opinion or withdraw from the
engagement.
The Uniform Guidance requires that we also plan and perform the audit to obtain reason-
able assurance about whether the City has complied with applicable laws and regulations
and the provisions of contracts and grant agreements applicable to major federal award
programs. Our procedures will consist of determining major federal programs and
performing the applicable procedures described in the U.S. Office of Management and
Budget OMB Compliance Supplement for the types of compliance requirements that
couid have a direct ana material effect on each of the City’s major programs. The purpose
of those procedures will be to express an opinion on the City’s compliance with
requirements applicable to each of its major programs in our report on compliance issued
pursuant to the Uniform Guidance.
Also, as required by the Uniform Guidance, we will perform tests of controls to evaluate
the effectiveness of the design and operation of controls that we consider relevant to
preventing or detecting material noncompliance with compliance requirements applicable
to each of the City’s major federal award programs. However, our tests will be less in
scope than would be necessary to render an opinion on these controls and, accordingly,
no opinion will be expressed in our report.
