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City of Finance Department |
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Audit Directory FY2005(PDF) FY2006(PDF) |
DESCRIPTION OF AUDIT DOCUMENT The Finance Department of the City of Homer
is pleased to submit the Comprehensive Annual
Financial Report of the City of Homer. The purpose of the report is to provide the council, management,
staff, the public and other
interested parties with detailed information reflecting the City’s financial condition. THE REPORT This report satisfies
Title 29 of the Alaska Statutes requiring annual audits of all municipalities. Responsibility for both the accuracy of the presented data
and the completeness and fairness of the
presentation, including all disclosures, rests with the City. We believe the data is accurate in all material
respects and is presented in a manner that fairly sets forth the financial position and results of the
City. We also believe all disclosures
necessary to enable the reader to gain an
understanding of the City's financial affairs have been included. To provide a reasonable basis for making
these representations, management of the City of Homer has established a comprehensive
internal control framework that is designed both to protect the government's
assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the
City of Homer's financial statements in conformity with Generally Accepted Accounting
Principles (GAAP). Because the cost of internal controls should not outweigh
their benefits, the City of Homer’s comprehensive framework of internal
controls has been designed to
provide reasonable rather than absolute assurance that the financial statements will be free from material
misstatement. As management, we assert that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material respects. The comprehensive
annual financial report (CAFR) is organized into major Introductory, Financial,
Statistical and Single Audit Sections. The Introductory Section provides general information on the government's structure and personnel as
well as information useful in assessing the government's
financial condition. The Financial Section contains the opinion of the
City's independent auditor. The City of Homer's
financial statements have been audited by Mikunda Cottrell & Co., a firm
of licensed certified public accountants.
The goal of the independent audit was to provide reasonable assurance that the financial statements of the
City of Homer are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements;
assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial
statement presentation. Also
included in the Financial Section is
management's discussion and analysis (MD&A) that provides users of the basic financial statements
a narrative introduction, overview, and analysis of those statements. The basic financial
statements, including the accompanying notes, represent the core of
the financial section. These financial statements present the financial condition of the City of Homer as a single
entity, as well as the individual funds that account for the City's
various governmental and business-type activities. The report
concludes with the Statistical Section, which through the use of tables, presents comparative economic and financial data to give
users of the report a perspective of the City's performance over a
number of years. The
City is required to undergo an annual single audit in conformity with the provisions
of the Federal and State Single Audit Act. Information related to the single
audits, including the schedules of federal and states financial assistance,
and the auditors’ reports on the internal control structure and compliance
with applicable laws and regulations are included in this report. |
