Finance Highlights 2010 0302 - Laserfiche WebLink

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Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: Fair values of investments and actuarial estimates related to pensions, other post employment benefits, and risk management. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. In addition, management has corrected all such misstatements. The following material misstatements detected as a result of audit procedures were corrected by management: Cost of issuance, net of amortization, related to 2008 bonds in the amount of $706,243 was not included in government-wide financial statements. Loan receivables and deferred revenues were both overstated by $368,680 in CDBG fund. Loan receivables and deferred revenues were both understated by $496,041 in RDA Low/Moderate Housing Capital Projects. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 15, 2009. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of those charged with governance and management of City of San Leandro and is not intended to be and should not be used by anyone other than these specified parties. r ~ t ~ Pleasanton, California December 15, 2009 2