2. Independent Auditor's Reportar . �;ww/> ;
1740 U.S. Hwy 93 South, P.O. Box 1957, Kalispell, MT 59903-1957
Mayor and City Council
City of Kalispell
Flathead County
Kalispell, Montana
We have audited the accompanying financial statements of the governmental activities,
business -type activities, each major fund, the aggregate discretely presented component
units and the remaining fund information of the City of Kalispell, Flathead County,
Montana, as of and for the year ended June 30, 2010, which collectively comprise the
City of Kalispell's basic financial statements as listed in the table of contents. These
financial statements are the responsibility of City of Kalispell management. Our
responsibility is to express opinions on these financial statements based on our audit.
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.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, business -type
activities, each major fund, the aggregate discretely presented component units and the
remaining fund information of the City of Kalispell, Flathead County, Montana, as of
June 30, 2010, and the respective changes in financial position, and cash flows thereof for
the year then ended in conformity with accounting principles generally accepted in the
United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
December 30, 2010, on our consideration of the City of Kalispell's internal control over
financial reporting and our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. The purpose of that report
is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
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Robert K. Denning, CPA - Kim M Downey, CPA
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary comparison information, and schedule
of funding for other post employment benefits other than pensions on pages 10 through
11, 78 through 98, and 62 be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures
to the required supplementary information in accordance with auditing standards
generally accepted in the United States of Americas, which consisted of inquiries of
management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements
that collectively comprise the City of Kalispell's basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements, and
statistical section are presented for purposes of additional analysis and are not a required
part of the basic financial statements. The accompanying schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by U.S. Office
of Management and Budget Circular A-133, Audits of States, Local Governments, and
Non -Profit Organizations, and is also not a required part of the basic financial statements
of City of Kalispell, Flathead County, Montana. The combining and individual nonmajor
fund financial statements and the schedule of expenditures of federal awards are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the financial statements. With the
exception of the schedule of expenditures of federal awards, the information has not been
subjected to the auditing procedures applied in the audit of the financial statements and
certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America.
In our opinion, the information is fairly stated in all material respects in relation to the
financial statements as a whole. The introductory and statistical section have not been
subjected to the auditing procedures applied in the audit of the basic financial statements
and, accordingly, we do not express an opinion or provide any assurance on it.
Opp j2
December 30, 2010
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