HomeMy WebLinkAboutAgenda Report - January 21, 1981 (57)RECEIVING 1 1n
ANNUAL AUDIT
the Ci t - ��u
erk
Ernst andCinWhw
delay in Whin
receivin
and other Financ'
Lodi for fiscal
to inquire as to
Of the Management
ncilman Hughes, Pinkerton
as directed to correspond
y to ascertain the reason
l
9 the Audited Fi
second,
wi th
for f -ho
al Information fna
orncial Statements
year ended June 30 the City of
1980 and also
when the Cit
y Letter concerni ght,.�Xpect receipt
i
February S, 1981
Ms. Alice M. Reimche, City Clerk
City of Lodi
221 West Pine Street
Lodi, California 95240
Dear Alice:
SSS Capitol Mall, Suite 630
Sacramento, California 9381 d,
916/447-3237
Thank you very much for your letter of January 28, 1981. In response to
your first question regarding the report date of October 27, 1980, and
your receipt of the actual report on January 7, 1981, the delay was due
primarily to questions raised in correspondence with your attorney.
Briefly, in connection with an annual audit we inquire of your internal
and external attorneys regarding asserted and unasserted claims and the
potential outcome thereof. The purpose of the inquiry is to determine
whether or not all appropriate accruals and necessary disclosures have
been made in your annual financial statements. Several of the responses
from the attorneys indicated the possibility of significant contingent
liabilities. Therefore, rather than issuing our report with a "qualified"
opinion, we thought it was in the best interest of the City to -work toward
resolving the issues or obtaining more refined estimates of the probable
losses and consequently issue an "unqualified" opinion. Final input from
the various attorneys was received in our office on December 17, 1980, a -t
which time we completed our second -partner review procedures, etc., as
quickly as possible.
With respect to the management letter, all management letter -type items
have been previously discussed with representatives of the City in the
course of our examination.. Also, we have recently formalized these comments
and forwarded a discussion draft for Fred Wilson's review prior to final
issuance.
Please feel free to call us if we can provide any further input or help.
Also, should the Council wish to meet with us, we would be available at its
convenience. Again, thank you for your letter and if we can provide any
further assistance, please do not hesitate to call.
Very truly yours,
David T. Christensen
Partner
DTC:smh
cc: Mr. Henry A. Glaves, Jr.
Mr. Jerry Glenn
Mr. Fred Wilson
FEB 0 6 1%1