AgdaPkt 2019-01-28 Joint SA PFA - Laserfiche WebLink

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6.E. - Page 45 of 47 To The Honorable Mayor and Members of the Audit Committee of the City of Redwood City Redwood City, California Page 2 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 involves judgment about the number of transactions to be examined and the areas to be tested. Our audit included obtaining an understanding of the entity 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 entity. We performed the audit according to the timing previously communicated to you on the engagement letter. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements described in Note 1 to the financial statements, the City changed accounting policies related to financial reporting by adopting Statements of Governmental Accounting Standards (GASB Statement) No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, No. 81, Irrevocable Split -Interest Agreements, No. 85, Omnibus 2017, No. 86, Certain Debt Extinguishment Issues. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were: • Depreciable lives and estimated residual value of property and equipment • Pension plans (actuarial assumptions) • Self-insurance liabilities (actuarial assumptions) • Investments Valuations • Allowance for uncollectible accounts • Other Post -employment Benefits (OPEB) Plan (actuarial assumptions) NU -11