Loading...
Audit Ltr 11/20/2006 November 20, 2006 WOODBURN ORE G 0 N Boldt, Carlisle & Smith, LLC 480 Church Street S .E. Salem, OR 97301 Incorporated 1889 We are providing this letter in connection with your audit of the financial statements of Woodburn Urban Renewal Agency as of June 30, 2006 and for the year then ended for the purpose of expressing an opinion as to whether the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information ofthe Woodburn Urban Renewal Agency and the respective changes in financial position and cash flows, where applicable, in conformity with U.S. generally accepted accounting principles. We confirm that we are responsible for the fair presentation of the previously menti oned financial statements in conformity with U. S. generally accepted accounting principles. We are also responsible for adopting sound accounting policies, establishing and maintaining internal control, and preventing and detecting fraud. We confirm, to the best of our knowledge and belief, as of September 22, 2006, the following representations made to you during your audit. 1. The financial statements referred to above are fairly presented in conformity with U.S. generally accepted accounting principles and include all properly classified funds and other financial information required by generally accepted accounting principles to be included in the financial reporting entity. 2. We have made available to you all- a. Financial records and related data and all audit or relevant monitoring reports, if any, received from funding sources. b. Minutes of meetings of the City Council, or summaries of actions of recent meetings for which minutes have not yet been prepared. 3. There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 4. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. 5. We believe there are no uncorrected financial statement misstatements. 6. We acknowledge our responsibility for the design and implementation of programs and controls to prevent and detect fraud. Boldt, Carlisle & Smith, LLC Salem, Oregon 97301 Finance D2partment 2;'0 ,\ TcIll,,,OIlIClT ::;trccr . \'(L'lylbum. ()rcgL'/l 970;'1 Ph 5C.,.':I82-:;217 . hl.\ ,03.'182-:;2'1'1 '0' ... 7. We have no knowledge of any fraud or suspected fraud affecting the entity involving: a. Management, b. Employees who have significant roles in internal control, or c. Others where the fraud could have a material effect on the financial statements. 8 . We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, analysts, regulators, short sellers, or others. 9. The Agency has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or fund equity. 10. The following, if any, have been properly recorded or disclosed in the financial statements: a. Related party transactions, including revenues, expenditures/expenses, loans, transfers, leasing arrangements, guarantees, and amounts receivable from or payable to related parties. b. Guarantees, whether written or oral, under which the Agency is contingently liable. c. All accounting estimates that could be material to the financial statements, including the key factors and significant assumptions underlying those estimates, and we believe the estimates are reasonable in the circumstances. 11. We are responsible for compliance with the laws, regulations, and provisions of contracts and agreements applicable to us, including tax on debt limits and debt contracts~ and we have identified, and disclosed to you, all laws, regulations and provisions of contracts and agreements that we believe have a direct and material effect on the determination of financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds.. 12. There are no- a. Violations or possible violations of budget ordinances, laws or regulations (including those pertaining to adopting and amending budgets), provisions of contracts and agreements, tax or debt limits, and any related debt covenants whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency. b. Unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with Financial Accounting Standards Board (F ASB) Statement No.5, Accountingfor Contingencies. c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by FASB Statement NO.5. d. Reservations or designations of fund equity that were not properly authorized and approved. Boldt, Carlisle & Smith, LLC Salem, Oregon 97301 3 '.t "", .. 13. As part of your audit, you prepared the draft financial statements and related notes. We have designated a competent employee to oversee your services and have made all management decisions and performed all management functions. We have reviewed, approved, and accepted responsibility for those financial statements and related notes and. 14. The Agency has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any assets been pledged as collateral. 15. The Agency has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 16. The financial statements include all component units as well as joint ventures with any equity interest, and properly disclose all other joint ventures and related organizations. 17. The financial statements properly classify all funds and activities. 18. All funds that meet the quantitative criteria in GASB Statement Nos. 34 and 37 for presentation as major are identified and presented as such and all other funds that are presented as major are particularly important to financial statement users. 19. Net asset components (invested in capital assets, net of related debt; restricted; and unrestricted) and fund balance reserves and designations are properly classified and, if applicable, approved. 20. Provisions for uncollectible receivables have been properly identified and recorded. 21. Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. 22. Revenues are appropriately classified in the statement of activities within program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. 23. Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported. 24. Special and extraordinary items are appropriately classified and reported. 25. Deposits and investment securities are properly classified in category of custodial credit risk. 26. Capital assets, including infrastructure assets, are properly capitalized, reported, and, if applicable, depreciated. 27. Required supplementary information (RSI) is measured and presented within prescribed guidelines. Boldt, Carlisle & Smith, LLC Salem, Oregon 97301 4 "'It "'" To the best of our knowledge and belief, no events, including instances of noncompliance, have occurred subsequent to the balance sheet date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements. We understand that you prepared the trial balance for use during the audit and that your preparation of the trial balance was limited to formatting the information in the Woodburn Urban Renewal Agency's general ledger into a working trial balance. We understand that as part of your audit, you prepared the adjustingjournal entries necessary to convert our modified accrual basis records to the accrual basis of accounting and acknowledge that we have reviewed and approved those entries. SignedIJ4~~ Title ~ M}id07 Date /) j}f}f~ 2 J, 20CX; '11' ...