O-1998-2282 - Laserfiche WebLink

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e e City of La Porte, Texas August 26, 1998 Page 2 In planning and performing our audits for the years ended September 30, 1998, 1999, and 2000, we will consider the internal control sufficient to plan the audit in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinions on the City's general purpose financial statements and on its compliance with requirements applicable to major programs. We will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the general purpose financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the general purpose financial statements. (Tests of controls are required only if control risk is assessed below the maximum level.) Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed. We will perform tests of controls, as required by OMB Circular A-I33, to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncomplianc~ with compliance requirements that are applicable to each of your major federal award programs. Our tests will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed. An audit is not designed to provide assurance on internal control or to identify reportable conditions, However, we will inform you of any matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. We will also inform you of any nonreportable conditions or other matters involving internal control, ifany, as required by OMB Circular A-l33. Identifying and ensuring that the City complies with laws, regulations, contracts, and agreements, including grant agreements, is the responsibility of management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we will perform tests of the City's compliance with applicable laws and regulations, and the provisions of contracts and agreements, . including grant agreements. However, the objective of our audit will not be to provide an opinion on overall compliance, and we will not express such an opinion. , dur audits will be conducted in accordance with the standards referred to in the second paragraph, OMB Circular A-I33 requires that we plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations, and contracts and grant agreements applicable to major programs. Our procedures will consist of the applicable procedures described in the OMB's compliance supplement. The purpose of these procedures will be to express an opinion on the City's compliance with requirements applicable to major programs.