Finance Committee

w MELANSON

(clusters) required to be audited in compliance with Uniform Guidance. As a result, additional
fees may apply. We will discuss this with you once this determination is made.

w MELANSON

auditor’s report, or if necessary, withdraw from the engagement. If our opinions on the basic
financial statements are other than unmodified, we will discuss the reasons with you in advance.
lf, for any reason, we are unable to complete the audit or are unable to form or have not formed
opinions, we may decline to express opinions or to issue a report as a result of this engagement.

w MELANSON

Nonattest Services

As part of this engagement we will perform the following nonattest services, based on
information gathered during the audit process:

e Preparation of the financial statements in their entirety.

e Consolidating funds into governmental and business-type activities and converting to the
accrual basis of accounting based on information from the City’s accounting records.

e Preparation of the Data Collection Form (DCF).

w MELANSON

e For following up and taking corrective action on current year audit findings and
preparing a corrective action plan for such findings;

e For submitting the reporting package and data collection form to the appropriate
parties; and

e For making the auditor aware of any significant vendor/contractor relationships where
the vendor/contractor is responsible for program compliance.

w MELANSON

h.

For maintaining adequate records, selecting and applying accounting principles, and safe-
guarding assets;

For informing us of any known or suspected fraud affecting the entity involving management,
employees with significant role in internal control and others where fraud could have a
material effect on the financials;

For the accuracy and completeness of all information provided; and

w MELANSON

Management Responsibilities

Our audit will be conducted on the basis that management and, when appropriate, those charged
with governance acknowledges and understands that they have responsibility:

a. For the preparation and fair presentation of the basic financial statements in accordance
with accounting principles generally accepted in the United States of America;

w MELANSON

w MELANSON

Single Audit

Schedule of Expenditures of Federal Awards

w MELANSON

obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

w MELANSON