2010 Monticello Auditor's Special Purpose Report
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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
City Council and Management
City of Monticello, Minnesota
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Monticello, Minnesota (the City)
as of and for the year ended December 31, 2010, which collectively comprise the City’s basic financial
statements, and have issued our report thereon dated June 22, 2011. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City’s internal control over financial reporting as
a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
City’s internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over financial
reporting that might be significant deficiencies or material weaknesses and, therefore, there can be no
assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified.
However, as described in the Schedule of Findings, we identified certain deficiencies in internal control
over financial reporting that we consider to be material weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. We
consider the deficiency described in the accompanying Schedule of Findings as item 2010-1 to be a
material weakness.
(continued)
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE
WITH MINNESOTA STATE LAWS AND REGULATIONS
City Council and Management
City of Monticello, Minnesota
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Monticello, Minnesota (the City)
as of and for the year ended December 31, 2010, which collectively comprise the City’s basic financial
statements, and have issued our report thereon dated June 22, 2011.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; and the provisions of the Minnesota Legal Compliance
Audit Guide for Political Subdivisions, promulgated by the Office of the State Auditor pursuant to
Minnesota Statute § 6.65. Accordingly, the audit included such tests of the accounting records and such
other auditing procedures as we considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Political Subdivisions covers seven main categories of
compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public
indebtedness, claims and disbursements, county and city miscellaneous provisions, and tax increment
financing. Our study included all of the listed categories.
The results of our tests indicate that, for the items tested, the City complied with the material terms and
conditions of applicable legal provisions, except as noted in the Schedule of Findings.
This report is intended solely for the information and use of the City Council, management of the City,
and the state of Minnesota and is not intended to be, and should not be, used by anyone other than these
specified parties.
June 22, 2011
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