2011 Special Purpose ReportCITY OF NEW HOPE
HENNEPIN COUNTY, MINNESOTA
Special Purpose Audit Reports
Year Ended
December 31, 2011
CITY OF NEW HOPE
HENNEPIN COUNTY, MINNESOTA
Table of Contents
Page
Independent Auditor's Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards 1 -2
Independent Auditor's Report on Compliance With Minnesota State Laws and
Regulations
MMKR
CERTIFIE[ PUBLIC
ACCOIIN'I'ANTS
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
PRINCIPALS
Thomas M. Nionrague, C1
, rhomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichren, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Council
City of New Hope, Minnesota
We have audited the financial statements of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of New Hope, Minnesota (the City)
as of and for the year ended December 31, 2011, which collectively comprise the City's basic financial
statements, and have issued our report thereon dated May 21, 2012. 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.
Internal Control Over Financial Reporting
Management of the City is responsible for establishing and maintaining effective internal control over
financial reporting. In planning and performing our audit, we considered the City's internal control over
financial reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness
of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the City's financial statements will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did
not identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
-I-
(continued)
Malloy, Montague, Karnowski, Radosevich, & Co., P.A.
5353 Wayzata Boulevard • Suitc 410 , Minncapolis, MN 55416 • Tcicphonc: 952- 545.0424 • Tcicfax: 952. 545 -0569 • www.mmkr.com
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, 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 was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
We noted certain matters that we reported to management of the City in a separate letter dated May 21,
2012.
This report is intended solely for the information and use of management, the City Council and others
within the City and is not intended to be, and should not be, used by anyone other than these specified
parties.
W" Wes , �� U. ,, ,2 � e., P- A
May 21, 2012
-2-
MMKR
CERTIFIE[ PUBLIC
ACCOIJN'I'ANTS
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
WITH MINNESOTA STATE LAWS AND REGULATIONS
To the City Council
City of New Hope, Minnesota
PRINCIPALS
Thomas M. Nionrague, CIIA
, rhomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichren, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA
We have audited the financial statements of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of New Hope, Minnesota (the City)
as of and for the year ended December 31, 2011, which collectively comprise the City's basic financial
statements, and have issued our report thereon dated May 21, 2012.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; and the provisions of the Minnesota Legal Compliance
Audit Guide for Political Subdivisions, promulgated by the Office of the State Auditor pursuant to
Minnesota Statute § 6.65. Accordingly, the audit included such tests of the accounting records and such
other auditing procedures as we considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Political Subdivisions covers seven categories of
compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public
indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing. Our
study included all of the listed categories.
The results of our tests indicate that, for the items tested, the City complied with the material terms and
conditions of applicable legal provisions.
This report is intended solely for the information and use of management, the City Council, others within
the City, and the state of Minnesota and is not intended to be, and should not be, used by anyone other
than these specified parties.
-X � , —Wou � / 4LA_4,tA>0_�- / tZ,,44u,; vL k (I. j P. A
May 21, 2012
-3-
Malloy, Montague, Karnowski, Radosevich, & Co., P.A.
5353 Wayzata Boulevard • Suitc 410 , Minncapoks, MN 55416 • Tcicphoac: 952- 545.0424 • Tcicfax: 952. 545 -0569 • www.mmkr.com