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MEMORANDUM ON INTERNAL CONTROL <br />To the City Council of <br />the City of San Leandro, California <br />In planning and performing our audit of the basic financial statements of the City of San Leandro, California, as <br />of and for the year ended June 30, 2018, in accordance with auditing standards generally accepted in the United <br />States of America, we considered the City’s internal control over financial reporting (internal control) as a basis <br />for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing our <br />opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the <br />City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal <br />control. <br />Our consideration of internal control was for the limited purpose described in the preceding paragraph and was <br />not designed to identify all deficiencies in internal control that might be material weaknesses or significant <br />deficiencies and therefore material weaknesses or significant deficiencies may exist that were not identified. In <br />addition, because of inherent limitations in internal control, including the possibility of management override of <br />controls, misstatements due to error or fraud may occur and not be detected by such controls. However, as <br />discussed below, we identified certain deficiency in internal control that we consider to be significant <br />deficiencies. <br />A deficiency in internal control exists when the design or operation of a control does not allow management or <br />employees, in the normal course of performing their assigned functions, to prevent, or detect and correct <br />misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in <br />internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial <br />statements will not be prevented, or detected and corrected on a timely basis. We did not identify any <br />deficiencies in internal control that we consider to be material weaknesses. <br />A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe <br />than a material weakness, yet important enough to merit attention by those charged with governance. We <br />consider the deficiency in internal control included on the Schedule of Significant Deficiencies to be a <br />significant deficiencies. <br />Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we <br />believe are opportunities for strengthening internal controls and operating efficiency. <br />Management’s written responses included in this report have not been subjected to the audit procedures applied <br />in the audit of the financial statements and, accordingly, we express no opinion on them. <br />This communication is intended solely for the information and use of management, City Council, others within <br />the organization, and agencies and pass-through entities requiring compliance with Government Auditing <br />Standards, and is not intended to be and should not be used by anyone other than these specified parties. <br />Pleasant Hill, California <br />April 26, 2019 <br />1489