2. Financial Section - Independent Auditor's Reportuntitled - FinancialReportbl.pdf
http://www.kalispell.com/finance/documents/FinancialReportbl.p
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Denning, DownA,ply & Associates, P.C.
CER TIFIED PUBLIC A CCO UNTAN TS
1740 U.S. Hwy 93 South, P. 0, 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, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of City of Kalispell, Flathead County, Montana, as of and
for the year ended June 30, 2'01'2,. which collectively comprise the City'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 evaluathig 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-, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund 'Information of the City of Kalispell, Flathead County, Montana, as of June 30, 2012, and
the respective changes in financial position 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 28, 2012, 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
Audiling Standards and should be considered in assessing the results of our audit,
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary comparison inforniation, and schedule of
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Robert K. Denning, CPA - Kim Al; Downey, CPA
funding for other post employment benefits other than pensions on pages 14 through 27, 70 and
71 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 America, 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 an the financial statements that
collectively comprise the City of Kalispell's financial statements as a whole. 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 financial
statements. The accompanying schedule of expenditures of federal awards is presented for
purposes of additional analysis as required by the US -Offlce of Management and Budget
Circular A-1,33, Audits of States, Local Governments, and Non -Profit Organizations, and is also
not a. required part of the financial statements. 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. The information has 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 sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and,, accordingly, we do -express an opinion or provide any
assurance on them..
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December 28, 2012
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