Item 4D: Resolution Acknowledging Receipt of CAFR

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Manaf!ement Judf!ments~ Accountinf! Estimates and Adjustments Accounting estimates are an integral part of the preparation of financial statements and are based upon management's current judgment. The process used by management encompasses their knowledge and experience about past and current events and certain assumptions about future events. Management has informed us they used all the relevant facts available to them at the time to make the best judgments about accounting estimates and we considered this information in the scope of our audit. Estimates significant to the financial statements include such items as the allowance for doubtful accounts and depreciation. There were no adjustments identified or recorded as part of the audit process. We accumulated no uncorrected misstatements during our audit. Accountinf! Policies and Alternative Treatments Management, under the direction of the City Council has the ultimate responsibility for the appropriateness of the accounting policies used by the City. Management has represented to us that the City did not adopt any significant new accounting policies nor have there been any changes in existing significant accounting policies during the current year which should be brought to your attention. Weare not aware of any consultations management had with other accountants about accounting or auditing matters. Discussions with Manaf!ement In the process of performing our audit procedures we often encounter situations where we make recommendations to management concerning accounting processes, methods of recording transactions and strengthening controls. We believe these recommendations assist the City in the accounting and financial reporting process, but are not of such a magnitude to warrant discussion with the City Council. If we encounter matters of such significance that in our opinion they should be brought to the attention of the City Council we will issue a letter commonly know as a management letter. We did not issue such a letter in the current year. We encountered no disagreements with management over the application of significant accounting principles, the basis for management's judgments on any significant matters, the scope of the audit or significant disclosures to be included in the financial statements. We did not encounter any difficulties in dealing with management relating to the performance of the audit. No major issues were discussed with management prior to our retention to perform the aforementioned audit. Closin2: We will be pleased to respond to any questions you have about the foregoing. We appreciate the opportunity to continue to be of service to the City of Eugene. This report is intended solely for the information and use of the City Council and management and of the City of Eugene is not intended to be and should not be used by anyone other than these specified parties.