2020 Other Required Reports City Other Required Reports
City of Albertville
Albertville, Minnesota
For the Year Ended
December 31 , 2020
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City of Albertville, Minnesota
Other Required Reports
Table of Contents
For the Year Ended December 31, 2020
Page No.
Other Required Reports
Independent Auditor's Report
on Minnesota Legal Compliance 3
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 4
Schedule of Finding and Response 6
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INDEPENDENT AUDITOR'S REPORT
ON MINNESOTA LEGAL COMPLIANCE
Honorable Mayor and City Council
City of Albertville, Minnesota
We have audited, 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, the financial statements of governmental activities, the business-type activities, each major fund and
the aggregate remaining fund information of the City of Albertville, Minnesota (the City) as of and for the year ended
December 31, 2020, and the related notes to the financial statements, and have issued our report thereon dated
April 19, 2021.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the
provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and
disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit
Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting
matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly,
had we performed additional procedures, other matters may have come to our attention regarding the City's
noncompliance with the above referenced provisions, insofar as they relate to accounting matters.
This report is intended solely for the information and use of those charged with governance and management of the city
and the State Auditor and is not intended to be and should not be used by anyone other than these specified parties.
ABDO, EICK& MEYERS, LLP
Minneapolis, Minnesota
April 19, 2021
5201 Eden Avenue,Suite 250
Edina.MN 55436 3
952.835.9090 1 Fax 952.835.3261
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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
Honorable Mayor and City Council
City of Albertville, Minnesota
We have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, each major fund
and the aggregate remaining fund information of the City of Albertville, Minnesota (the City), as of and for the year ended
December 31, 2020 and the related notes to the financial statements, which collectively comprise the City's basic financial
statements, and have issued our report thereon dated April 19, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial
reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances 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. Accordingly, we do not express an opinion on the effectiveness of the City's
internal control.
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 a combination of deficiencies, in internal control, such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected
and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and
therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We
identified a certain deficiency in internal control, described in the schedule of finding and response as item 2020-001 that
we consider to be a significant deficiency.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from 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 financial statements. 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.
5201 Eden Avenue,Suite 250
Edina.MN 55436 4
952.835.9090 1 Fax 952.835.3261
The City's Response to the Finding
The City's response was not subjected to the auditing procedures applied in the audit of the financial statements and,
accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This
report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
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Schedule of Finding and Response
For the Year Ended December 31, 2020
Finding Description
2020-001 Limited Segregation of Duties
Condition: During our audit, we reviewed procedures over major transaction cycles and found the City to
have limited segregation of duties related to cash disbursements, payroll, utility billing, and
receipting.
Criteria: There are four general categories of duties: authorization, custody, record keeping and
reconciliation. In an ideal system, different employees perform each of these four major functions.
In other words, no one person has control of two or more of these responsibilities.
Cause: As a result of the limited number of staff, the City is not able to completely segregate all
accounting functions. All cycles have the same person performing or access to some of the
authorization, custody, and recording functions.
Effect: The existence of this limited segregation of duties increases the risk of fraud.
Recommendation: While we recognize the number of staff is not large enough to eliminate this deficiency, we
recommend that the City evaluate the current procedures and segregate duties where possible
and implement any compensating controls. We are aware some compensating controls are in
place; however, it is important that the City Council is aware of this condition and monitor all
financial information.
Management Response:
Management is aware of the lack of segregation, which is due to limited office staff, and continues to look for opportunities
to provide additional segregation in a cost effective manner.
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