12-12-16 Council Agenda Packet - Laserfiche WebLink

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Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. There was one immaterial misstatement identified during the audit. The City accrued property tax revenue based partly on an estimate. The auditor eventually obtained the actual amounts and compared it to the City’s estimate to actual amount and noting that the City’s property tax accrual was $194,567 less than the actual amount. The cause of this misstatement was the accelerated timing of the audit and report issuance – fully one month earlier than the prior year. The misstatement is considered immaterial and management acknowledges the matter in the representation letter provided to the auditor. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated November 21, 2016. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles, implementation of new accounting standards, and the impact of new auditing standards with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of the City Council and management of the City of Eugene and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, ISLER CPA By Gary Iskra, a member of the firm