Eide Bailly Audit Planning CommunicationEideBailly
CPAs & BUSINESS ADVISORS
July 2, 2013
Honorable Mayor and Members of the City Council
City of Dubuque, Iowa
We are engaged to audit the financial statements of the governmental activities, the business -type activities, the
discretely presented component units, each major fund, and the aggregate remaining fund information of the City
of Dubuque for the year ended June 30, 2013. Professional standards require that we provide you with the
following information related to our audit.
Our Responsibility under U.S. Generally Accepted Auditing Standards and OMB Circular A -133
As stated in our engagement letter dated May 30, 2013, our responsibility, as described by professional standards,
is to express opinions about whether the financial statements prepared by management with your oversight are
fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our
audit of the financial statements does not relieve you or management of your responsibilities.
In planning and performing our audit, we will consider the City's internal control over financial reporting in order
to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and
not to provide assurance on the internal control over financial reporting. We will also consider internal control
over compliance with requirements that could have a direct and material effect on a major federal program in
order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test
and report on internal control over compliance in accordance with OMB Circular A -133.
As part of obtaining reasonable assurance about whether the City's financial statements are free of material
misstatement, we will perform tests of its compliance with certain provisions of laws, regulations, contracts, and
grants, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions is not an objective of our
audit. Also in accordance with OMB Circular A -133, we will examine, on a test basis, evidence about the City's
compliance with the types of compliance requirements described in the "U.S. Office of Management and Budget
(OMB) Circular A -133 Compliance Supplement" applicable to each of its major federal programs for the purpose
of expressing an opinion on the City's compliance with those requirements. While our audit will provide a
reasonable basis for our opinion, it will not provide a legal determination on the City's compliance with those
requirements.
Our responsibility for the supplementary information accompanying the financial statements, as described by
professional standards, is to evaluate the presentation of the supplementary information in relation to the financial
statements as a whole and to report on whether the supplementary information is fairly stated, in all material
respects, in relation to the financial statements as a whole.
Planned Scope and Timing of the Audit
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; therefore, our audit will involve judgment about the number of transactions to be examined and the
areas to be tested.
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Our audit will include obtaining an understanding of the City and its environment, including internal control,
sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing,
and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial
reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable
to the entity or to acts by management or employees acting on behalf of the City. We will communicate any
significant findings at the conclusion of the audit. However, some matters could be communicated sooner,
particularly if significant difficulties are encountered during the audit where assistance is needed to overcome the
difficulties or if the difficulties may lead to a modified opinion. We will also communicate any internal control
related matters that are required to be communicated under professional standards.
The financial statements include the Dubuque Metropolitan Area Solid Waste Agency, which we consider to be a
significant component of the financial statements. Consistent with the audit of the financial statements as a whole,
our audit will include obtaining an understanding of the Dubuque Metropolitan Area Solid Waste Agency and its
environment, including internal control, sufficient to assess the risks of material misstatement of the financial
statements of Dubuque Metropolitan Area Solid Waste Agency and to design the nature, timing, and extent of
further audit procedures.
The financial statements include Dubuque Initiatives and Subsidiaries, which we consider to be significant
components of the financial statements. The financial statements of Dubuque Initiatives and Subsidiaries are
audited by other auditors and we will not take responsibility for the audit performed by the other auditors, rather
will refer to their audit in our report. Our decision to refer to the report of the other auditor is based upon the
ability for group management to provide necessary audit evidence with respect to Dubuque Initiatives and
Subsidiaries. Our planned audit procedures with respect to Dubuque Initiatives and Subsidiaries include required
correspondence with the other auditor, obtaining and reading their auditor's report and the related financial
statements, and other procedures as considered necessary.
We began our audit in June 2013, and expect to issue our report in December 2013.
This information is intended solely for the use of the City Council and management of the City of Dubuque and is
not intended to be and should not be used by anyone other than these specified parties.
EIDE BAILLY LLP
■ e,. .
David R. Cahill, CPA
Partner
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