6_CITY OF TEMPE GENERAL REP LETTER 25 SIGNED-CERTIFICATE.PDF
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Page 1 Heinfeld, Meech & Co., P.C. 1365 N. Scottsdale Rd., Suite 300 Scottsdale, AZ 85257 This representation letter is provided in connection with your audit of the financial statements of City of Tempe, Arizona (City), which comprise the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows for the period then ended, and the disclosures (collectively the “financial statements”), for the purpose of expressing opinions as to whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors. We confirm, to the best of our knowledge and belief, as of the date of our signature, the following representations made to you during your audit. Financial Statements 1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter, including our responsibility for the preparation and fair presentation of the financial statements in accordance with U.S. GAAP and for preparation of the supplementary information in accordance with the applicable criteria. 2. The financial statements referred to above are fairly presented in conformity with U.S. GAAP and include all properly classified funds and other financial information of the primary government and all component units required by generally accepted accounting principles to be included in the financial reporting entity. 3. We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Page 2 4. We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. 5. The methods, significant assumptions, and data used in making accounting estimates and their related disclosures are appropriate to achieve recognition, measurement, or disclosure that is reasonable in accordance with U.S. GAAP. In addition, we believe: • The significant judgments made in making accounting estimates have considered all relevant information of which management is aware • The appropriateness and consistency of the measurement processes used by management in determining accounting estimates • That the assumptions appropriately reflect management’s intent and ability to carry out specific courses of action • That the disclosures related to accounting estimates, including those describing estimation uncertainty are complete and appropriate under GAAP • That, when necessary, appropriate specialized skills or expertise have been applied • That no subsequent event requires adjustment to the accounting estimates and related disclosures included in the financial statements • That for any accounting estimates not recognized or disclosed in the financial statements, management has decided to exclude them after considering the appropriate recognition and disclosure criteria in GAAP. 6. There are no known related-party relationships or transactions that need to be accounted for or disclosed in accordance with U.S. GAAP. 7. Adjustments or disclosures have been made for all events, including instances of noncompliance, subsequent to the date of the financial statements that would require adjustment to or disclosure in the financial statements or in the schedule of findings and questioned costs. 8. We have identified no unrecorded misstatements in the financial statements. 9. The effects of all known actual or possible litigation, claims, and assessments have been accounted for and disclosed in accordance with U.S. GAAP. 10. Guarantees, whether written or oral, under which the City is contingently liable, if any, have been properly recorded or disclosed. Page 3 Information Provided 11. We have provided you with: a. Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statements, such as records (including information obtained from outside of the general and subsidiary ledgers), documentation, and other matters and all audit or relevant monitoring reports, if any, received from funding sources. b. Additional information that you have requested from us for the purpose of the audit. c. Unrestricted access to persons within the City from whom you determined it necessary to obtain audit evidence. d. Minutes of the meetings of the City Council or summaries of actions of recent meetings for which minutes have not yet been prepared. 12. All material transactions have been recorded in the accounting records and are reflected in the financial statements and the schedule of expenditures of federal awards (SEFA). 13. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. 14. We have no knowledge of any fraud or suspected fraud that affects the City and involves: • Management, • Employees who have significant roles in internal control, or • Others where the fraud could have a material effect on the financial statements. 15. We have no knowledge of any allegations of fraud or suspected fraud affecting the City’s financial statements communicated by employees, former employees, grantors, regulators, or others. 16. We have no knowledge of any instances of noncompliance or suspected noncompliance with provisions of laws, regulations, contracts, or grant agreements, or waste or abuse, whose effects should be considered when preparing financial statements. 17. We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements. 18. We have disclosed to you the identity of the City’s related parties and all the related party relationships and transactions, including any side agreements. Page 4 Government-specific 19. There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 20. If applicable, we have taken timely and appropriate steps to remedy identified and suspected fraud, or noncompliance with provisions of laws, regulations, contracts, and grant agreements that you have reported to us. 21. If applicable, we have a process to track the status of audit findings and recommendations. 22. We have identified and communicated to you any previous audits, attestation engagements, and other studies related to the objectives of the audit and whether related recommendations have been implemented. 23. We have identified to you any investigations or legal proceedings that have been initiated with respect to the period under audit. 24. If applicable, we have provided our views on reported findings, conclusions, and recommendations, as well as our planned corrective actions, for the report. 25. The City has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, deferred outflows/inflows of resources, and fund balance or net position. 26. We are responsible for compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to us, including tax or debt limits and debt contracts, and legal and contractual provisions for reporting specific activities in separate funds. 27. We have appropriately identified, recorded, and disclosed all leases in accordance with GASB Statement (GASBS) No. 87. 28. We have appropriately identified, recorded, and disclosed public-private and public-public partnerships and availability payment arrangements in accordance with GASBS No. 94. 29. We have appropriately identified, recorded and disclosed subscription-based information technology arrangements in accordance with GASBS No. 96. 30. We have appropriately measured, recorded, and disclosed compensated absences and other salary-related payments in accordance with GASBS No. 101. Page 5 31. With respect to your compliance examination of highway user revenue fund monies and other dedicated state transportation revenues, we represent the following: • we are responsible for compliance with A.R.S. Title 28, Chapter 18, Article 2; and for establishing and maintaining effective internal controls to ensure compliance. • we have disclosed to you all known noncompliance with the aforementioned statutes and related requirements. • we have disclosed to you all communications from regulatory agencies, internal auditors, other independent accountants or consultants, and others regarding possible noncompliance with the aforementioned statutes and related requirements. 32. We have identified and disclosed to you all instances of identified and suspected fraud and noncompliance with provisions of laws, regulations, contracts, and grant agreements that we believe have a material effect on the financial statements 33. There are no violations or possible violations of budget ordinances, laws and regulations (including those pertaining to adopting, approving, and amending budgets), provisions of contracts and grant agreements, tax or debt limits, and any related debt covenants whose effects should be considered for disclosure in the financial statements, or as a basis for recording a loss contingency, or for reporting on noncompliance. 34. The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. 35. The City has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 36. We have followed all applicable laws and regulations in adopting, approving, and amending budgets. 37. If applicable, the financial statements include all component units, appropriately present majority equity interest in legally separate organizations and joint ventures with an equity interest, and properly disclose all other joint ventures and other related organizations. 38. The financial statements include all fiduciary activities required by GASBS No. 84, as amended. 39. The financial statements properly classify all funds and activities in accordance with GASBS No. 34, as amended. 40. All funds that meet the quantitative criteria in GASBS Nos. 34 and 37 for presentation as a major fund are identified and presented as such and all other funds that are presented as a major fund are particularly important to financial statement users. 41. Components of net position (net investment in capital assets; restricted; and unrestricted) and classification of fund balance (nonspendable, restricted, committed, assigned, and unassigned) are properly classified and, if applicable, approved. 42. Investments are properly valued. Page 6 43. With regard to investments and other instruments reported at fair value: • The underlying assumptions are reasonable and they appropriately reflect management's intent and ability to carry out its stated courses of action. • The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied. • The disclosures related to fair values are complete, adequate, and in conformity with U.S. GAAP. • There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements. 44. If applicable, provisions for uncollectible receivables have been properly identified and recorded. 45. Direct borrowings and direct placements of debt have been properly separated from other debt; and unused lines of credit, collateral pledged to secure debt, terms in debt agreements related to significant default or termination events with finance-related consequences, and significant subjective acceleration clauses have been properly disclosed. 46. All payroll information and the individual employment data have been properly submitted to the state retirement systems, and the employer contributions have been properly submitted to the retirement systems. 47. We believe that the actuarial assumptions and methods used to measure pension and OPEB liabilities and costs for financial accounting purposes are appropriate in the circumstances. 48. Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. 49. Revenues are appropriately classified in the statement of activities within program revenues and general revenues. 50. Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported. 51. If applicable, special and extraordinary items (unusual items or infrequent items after implementing GASBS No. 103), are appropriately classified and reported. 52. Deposits and investment securities are properly classified as to risk and are properly disclosed. 53. Capital assets, including infrastructure and intangible assets, are properly capitalized, reported, and, if applicable, depreciated or amortized. 54. If applicable, the government meets the GASB-established requirements for accounting for eligible infrastructure assets using the modified approach. 55. Asset retirement obligations associated with tangible capital assets have been properly recognized in accordance with GASBS No. 83. Page 7 56. Tax abatement agreements have been properly disclosed in the notes to the financial statements, including the names of all governments involved, the gross amount and specific taxes abated, and additional commitments. 57. We have appropriately disclosed the City’s policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available and have determined that net position is properly recognized under the policy. 58. We are following our established accounting policy regarding which resources (that is, restricted, committed, assigned, or unassigned) are considered to be spent first for expenditures for which more than one resource classification is available. That policy determines the fund balance classifications for financial reporting purposes. 59. We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed. Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year. 60. We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured and presented within prescribed guidelines and the methods of measurement and presentation have not changed from those used in the prior period. We have disclosed to you any significant assumptions and interpretations underlying the measurement and presentation of the RSI. 61. With respect to the supplementary information on which in-relation-to opinions are issued, presented, such as the combining and individual fund financial statements and schedules, financial data schedules (FDS) for HUD reporting and the SEFA. a. We acknowledge our responsibility for presenting the supplementary information in accordance with accounting principles generally accepted in the United States of America, and we believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. The methods of measurement and presentation of the supplementary information have not changed from those used in the prior period, and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. b. If the supplementary information is not presented with the audited financial statements, we will make the audited financial statements readily available to the intended users of the supplementary information no later than the date we issue the supplementary information and the auditor’s report thereon. Page 8 62. We acknowledge our responsibility for the other information included in the financial statements, such as the transmittal letter and statistical data. a. We acknowledge that we have informed you of all documents that may comprise other information we expect to issue. The financial statements and other information you obtained prior to the auditor’s report date are consistent with one another, and the other information does not contain any material misstatements. b. If applicable, with regard to the other information that will be included in the annual report that has not been obtained by you prior to the auditor’s report date, we intend to prepare and issue the other information, as well as communicate the expected timing of issuance, and provide you with the final version of the document(s) when available and prior to the issuance of the annual report. 63. With respect to federal award programs: a. We are responsible for understanding and complying with and have complied with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), including requirements relating to preparation of the schedule of expenditures of federal awards (SEFA). b. We acknowledge our responsibility for preparing and presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, and we believe the SEFA, including its form and content, is fairly presented in accordance with the Uniform Guidance. The methods of measurement or presentation of the SEFA have not changed from those used in the prior period and we have disclosed to you any significant assumptions and interpretations underlying the measurement or presentation of the SEFA. c. If the SEFA is not presented with the audited financial statements, we will make the audited financial statements readily available to the intended users of the SEFA no later than the date we issue the SEFA and the auditor’s report thereon. d. We have identified and disclosed to you all of our government programs and related activities subject to the Uniform Guidance compliance audit, and have included in the SEFA, expenditures made during the audit period for all awards provided by federal agencies in the form of federal awards, federal cost-reimbursement contracts, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other direct assistance. e. We are responsible for understanding and complying with, and have complied with, the requirements of federal statutes, regulations, and the terms and conditions of federal awards related to each of our federal programs and have identified and disclosed to you the requirements of federal statutes, regulations, and the terms and conditions of federal awards that are considered to have a direct and material effect on each major program. Page 9 f. We are responsible for establishing, designing, implementing, and maintaining, and have established, designed, implemented, and maintained, effective internal control over compliance for federal programs that provides reasonable assurance that we are managing our federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards that could have a material effect on our federal programs. We believe the internal control system is adequate and is functioning as intended. g. We have made available to you all federal awards (including amendments, if any) and any other correspondence with federal agencies or pass-through entities relevant to federal programs and related activities. h. We have received no requests from a federal agency to audit one or more specific programs as a major program. i. We have complied with the direct and material compliance requirements (except for noncompliance disclosed to you), including when applicable, those set forth in the OMB Compliance Supplement, relating to federal awards and have identified and disclosed to you all amounts questioned and all known noncompliance with the direct and material compliance requirements of federal awards, or confirm that there were no amounts questioned and no known noncompliance with the direct and material compliance requirements of federal awards. j. We have disclosed any communications from federal awarding agencies and pass-through entities concerning possible noncompliance with the direct and material compliance requirements, including communications received from the end of the period covered by the compliance audit to the date of the auditor’s report. k. We have disclosed to you the findings received and related corrective actions taken for previous audits, attestation engagements, and internal or external monitoring that directly relate to the objectives of the compliance audit, including findings received and corrective actions taken from the end of the period covered by the compliance audit to the date of the auditor’s report. l. Amounts claimed or used for matching were determined in accordance with relevant guidelines in OMB’s Uniform Guidance (2 CFR Part 200, Subpart E). m. We have disclosed to you our interpretation of compliance requirements that may have varying interpretations. n. We have made available to you all documentation related to compliance with the direct and material compliance requirements, including information related to federal program financial reports and claims for advances and reimbursements. o. We have disclosed to you the nature of any subsequent events that provide additional evidence about conditions that existed at the end of the reporting period affecting noncompliance during the reporting period. Page 10 p. There are no such known instances of noncompliance with direct and material compliance requirements that occurred subsequent to the period covered by the auditor’s report. q. No changes have been made in internal control over compliance or other factors that might significantly affect internal control, including any corrective action we have taken regarding significant deficiencies or material weaknesses in internal control over compliance, subsequent to the period covered by the auditor’s report. r. Federal program financial reports and claims for advances and reimbursements are supported by the books and records from which the financial statements have been prepared. s. The copies of federal program financial reports provided you are true copies of the reports submitted, or electronically transmitted, to the respective federal agency or pass-through entity, as applicable. t. If applicable, we have monitored subrecipients to determine that they have expended subawards in compliance with federal statutes, regulations, and the terms and conditions of the subaward and have met the other pass-through entity requirements of the Uniform Guidance. u. If applicable, we have issued management decisions for audit findings that relate to federal awards made to subrecipients and such management decisions have been issued within six months of acceptance of the audit report by the Federal Audit Clearinghouse. Additionally, we have followed-up ensuring that the subrecipient has taken timely and appropriate action on all deficiencies detected through audits, on-site reviews, and other means that pertain to the federal award provided to the subrecipient. v. If applicable, we have considered the results of subrecipient audits and have made any necessary adjustments to our books and records. w. We have charged costs to federal awards in accordance with applicable cost principles. x. We are responsible for and have accurately prepared the summary schedule of prior audit findings to include all findings required to be included by the Uniform Guidance, and we have provided you with all information on the status of the follow-up on prior audit findings by federal awarding agencies and pass-through entities, including all management decisions. y. We are responsible for and have ensured the reporting package does not contain protected personally identifiable information. z. We are responsible for and have accurately prepared the auditee section of the Data Collection Form as required by the Uniform Guidance. aa. We are responsible for taking corrective action on each audit finding of the compliance audit and have developed a corrective action plan that meets the requirements of the Uniform Guidance. Page 11 bb. If applicable, we have disclosed to you all contracts or other agreements with service organizations, and we have disclosed to you all communications from the service organizations relating to noncompliance at the service organizations. We understand that at the conclusion of the audit Heinfeld, Meech & Co, P.C. will submit to the City Council a communication to those charged with governance that will include a copy of this representation letter and a copy of the engagement letter. ________________________________________ __________________________ Laura Calder, Financial Services Director Date City of Tempe, Arizona ________________________________________ __________________________ Lisette Camacho, Deputy City Manager Date City of Tempe, Arizona 12/15/2025 12/15/2025 TRANSACTION DETAILS DOCUMENT DETAILS Reference Number 8BAC93E2-8F0B-4B04-B597-E8268057819B Transaction Type Signature Request Sent At 12/13/2025 02:50:45 PM EST Executed At 12/15/2025 07:12:06 PM EST Identity Method email Distribution Method email Signed Checksum a57b2ab4be85234dd713d43fee3329b3358a7b757314b39f116611a98e41b5df Signer Sequencing Disabled Document Passcode Disabled Document Name GLR Single Audit 25 Tempe City Filename GLR_Single_Audit_25_Tempe_City.pdf Pages 11 pages Content Type application/pdf File Size 223 KB Original Checksum 7ece570e72b152f6e2044680bece4c81038a69ad5fe7e51dfcf9775fe6121f44 SIGNERS SIGNER E-SIGNATURE EVENTS Name Lisette Camacho Email lisette_camacho@tempe.gov Components 2 Status signed Multi-factor Digital Fingerprint Checksum 4f53cda18c2baa0c0354bb5f9a3ecbe5ed12ab4d8e11ba873c2f11161202b945 IP Address 164.50.248.103 Device Chrome via Windows Typed Signature Signature Reference ID A115FEF9 Viewed At 12/15/2025 07:09:20 PM EST Identity Authenticated At 12/15/2025 07:12:06 PM EST Signed At 12/15/2025 07:12:06 PM EST Name Laura Calder Email laura_calder@tempe.gov Components 2 Status signed Multi-factor Digital Fingerprint Checksum 4f53cda18c2baa0c0354bb5f9a3ecbe5ed12ab4d8e11ba873c2f11161202b945 IP Address 164.50.248.101 Device Microsoft Edge via Windows Typed Signature Signature Reference ID C408A0AF Viewed At 12/15/2025 09:15:14 AM EST Identity Authenticated At 12/15/2025 09:21:40 AM EST Signed At 12/15/2025 09:21:40 AM EST AUDITS TIMESTAMP AUDIT 12/13/2025 02:50:45 PM EST Jared Young (jared.young@hm.cpa) created document 'GLR_Single_Audit_25_Tempe_City.pdf' on Chrome via Windows from 70.172.12.87. 12/13/2025 02:50:46 PM EST Lisette Camacho (lisette_camacho@tempe.gov) was emailed a link to sign. 12/13/2025 02:50:46 PM EST Laura Calder (laura_calder@tempe.gov) was emailed a link to sign. 12/15/2025 08:52:05 AM EST Laura Calder (laura_calder@tempe.gov) viewed the document on Microsoft Edge via Windows from 164.50.248.101. 12/15/2025 09:15:14 AM EST Laura Calder (laura_calder@tempe.gov) viewed the document on Microsoft Edge via Windows from 164.50.248.101. SIGNATURE CERTIFICATE REFERENCE NUMBER 8BAC93E2-8F0B-4B04-B597-E8268057819B 12/15/2025 09:21:40 AM EST Laura Calder (laura_calder@tempe.gov) authenticated via email on Microsoft Edge via Windows from 164.50.248.101. 12/15/2025 09:21:40 AM EST Laura Calder (laura_calder@tempe.gov) signed the document on Microsoft Edge via Windows from 164.50.248.101. 12/15/2025 07:09:20 PM EST Lisette Camacho (lisette_camacho@tempe.gov) viewed the document on Chrome via Windows from 164.50.248.103. 12/15/2025 07:12:06 PM EST Lisette Camacho (lisette_camacho@tempe.gov) authenticated via email on Chrome via Windows from 164.50.248.103. 12/15/2025 07:12:06 PM EST Lisette Camacho (lisette_camacho@tempe.gov) signed the document on Chrome via Windows from 164.50.248.103. TIMESTAMP AUDIT