Resolution No. 5146 - Laserfiche WebLink

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Central Services Finance City of Eugene th 100 West 10 Ave., Suite 400 Eugene, Oregon 97401 (541) 682-5022 (541) 682-5802 FAX www.eugene-or.gov December 23, 2015 Citizens of Eugene The Honorable Kitty Piercy, Mayor Members of the City Council Jon R. Ruiz, City Manager It is my pleasure to submit to you the Comprehensive Annual Financial Report (CAFR) of the City of Eugene, Oregon, for the fiscal year ended June 30, 2015. Local ordinances and state statutes require that the City of Eugene issue a report on its financial position and activity within six months of the close of each fiscal year. In addition, this report must be audited in accordance with generally accepted auditing standards by an independent firm of certified public accountants. This report consists of management’s representations concerning the finances of the City. Consequently, responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. To provide a reasonable basis for making these representations, management has established an internal control structure designed to safeguard City assets against loss, theft, or misappropriation, and to ensure the reliability of financial records for preparing financial statements in conformity with generally accepted accounting principles (GAAP). The internal control structure has been designed to provide reasonable, but not absolute, assurance that these objectives are being met. The concept of reasonable assurance recognizes that: The cost of the control structure should not exceed the benefits likely to be derived; and The evaluation of cost and benefits requires estimates and judgments by management. We believe that the City's internal control structure adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions. To the best of our knowledge, the enclosed data are presented accurately in all material respects, along with the disclosures necessary to provide the reader with a reasonable understanding of the City's financial affairs. The City’s financial statements were audited by Isler CPA, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2015 are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor’s concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s basic financial statements for the fiscal year ended June 30, 2015, are fairly presented, in all material respects, in conformity with GAAP. The independent auditor’s report on the Basic Financial Statements is included in the Financial Section of this report. In addition to meeting the requirements set forth above, the independent audit also was designed to meet the special needs of federal grantor agencies as provided for in the Federal Single Audit Act and the Office of Management and Budget’s (OMB) Circular A-133. These standards require the independent auditor not only report on the fair presentation of the basic financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. The results of the independent audit for the fiscal year ended June 30, 2015 indicated no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations. The independent auditor’s reports related specifically to the Single Audit and OMB Circular A-133 are included in the Government Auditing Standards Section. 1