Item 3D: Adoption of Comprehensive Annual Financial Report

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Mamlllemcnt <hIQg~!lmts, Accountin~ .lDstimates and Adjustments Accounting estimates are an integral part of the preparation of financial statements and are based upon management's current judg-ment. The process used by management encompasses their knowledge and experience about past and CUTrent events and certain assumptions about future events. Management has infomled us they used ail 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 adjustment idf.;ntified or recorded as part ofthe audit process. \V(: accumulated no uncorrected misstaternents during our audit Accounting Policies ~md Alternative Treatments .tvfanagement, under the direction of the City Council has the ultimate responsibility for ihe appropriateness of the accounting policies used by the City. Management has represented to us that the C1ty 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. We are not a\vare of any consultations management had with other accountants about accounting or auditing matters. Discussions ",'ftb l\'Ian2.j,tement In the process of performing our audit procedures we often (~ncounter situations where we make recoUh'1lendations to management concerning accounting processes, methods of recording transactions and strengthening controls. We believe these reconunendations assist the City in the aCCOul1ting and financial reporting process, but a:re 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 \,till issue a leti:er commonly know as a management letter. We did not issue such a letter in the Clh'Tent year. ';^le encountered no disagreements with management over the application of significant accounting principles, the basis f{)r management's judgments on any significant matters, the scope of the audit or significant disclosures to be included in the tlnanciilstatements. "Ve did not encou:nter any difficulties in dealing vlith management relating to the performance of the audit. No major issues were discm:sed with management prior to our retention to perfonn the aforementioned audit. Closing \Ve will be pleased to respond to any questions you have about the foregoing. \Ve appreciate the opportunity to conti,'lue to be of service to the Cit'j of Eugene. This n,-port is intended solely for the inflynnation 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 oilier than these specified parties. V:h~lf1:!trS, 12