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Audit Ltr 06/30/07 WOODBURN ORE G 0 N Incorporated 1889 Boldt, Carlisle & Smith, LLC 480 Church Street SE Salem, OR 97301 We are providing this letter in connection with your audit(s) of the financial statements of Woodburn Urban Renewal Agency as of June 30, 2007 and for the year then ended for the purpose of expressing opinions 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 of the Woodburn Urban Renewal Agency and the respective changes in financial position and, where applicable, cash flows thereof in conformity with U.S. generally accepted accounting principles. We confirm that we are responsible for the fair presentation of the previously mentioned 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 the date of this letter, the following representations made to you during your audit(s). 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 of the primary government required by generally accepted accounting principles to be included in the financial reporting entity. 2) We have made available to you alI- a) Financial records and related data [and all audit or relevant monitoring reports, if any, received from funding sources]. b) Minutes of the meetings of Board of Directors 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 are in agreement with the adjusting journal entries you have proposed and they have been posted. 6) We acknowledge our responsibility for the design and implementation of programs and controls to prevent and detect fraud. Finance Department 270 MOllfgomerv Street. \'(feat/burn, Oregon 9707/ P/1-503-982-.,217 . Fax 503-982-5244 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 offraud or suspected fraud affecting the entity received in communications from employees, former employees, analysts, regulators, or others. 9) The Agency has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or 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, and 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 measurements. We believe the estimates and measurements are reasonable in the circumstances, consistently applied, and adequately disclosed. 11) We are responsible for compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to us, including tax or debt limits and debt contracts; and we have identified and disclosed to you all laws, regulations and provisions of contracts and grant agreements that we believe have a direct and material effect on the determination of financial statement amounts, or other financial data significant to the audit objectives, 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 and regulations (including those pertaining to adopting, approving, and amending budgets), provisions of contracts and grant 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, or for reporting on noncompliance. 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 (FASB) 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 designation of fund equity that were not properly authorized and approved. 13) As part of your audit, you prepared the draft financial statements and related notes. We have designated a competent management-level individual 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. 14) The Agency has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset 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 properly classify all funds and activities. 17) 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. 18) 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. 19) Provisions for uncollectible receivables have been properly identified and recorded. 20) 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. 21) 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. 22) Required supplementary information (RSI) is measured and presented within prescribed guidelines. 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 ~. . . Signed: tl1.::4ffl2p;~/ Signed: Title: &~ ~ Date: /Jh~ ~ 2()() 7 Title: Date: