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The City of Hawesville, Commonwealth of Kentucky, hereby publishes in compliance with KRS 91A.040 (9)a-e

The City of Hawesville, Commonwealth of Kentucky, hereby publishes in compliance with KRS 91A.040 (9)a-e, the following information:

 

Tichenor & Associates, LLP

Certified Public Accountants and Management Consultants

1700 Eastpoint Parkway, Suite 270

Louisville, Kentucky 40223

Business: (502) 245-0775

Fax: (502) 245-0725

E-Mail: WTICHENOR@TICHENORASSOCIATES.COM

Independent Auditors’ Report

To the Honorable Charles M. King, Mayor and Members of the City Council of the City of Hawesville, Kentucky

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities and the general fund of the City of Hawesville, Kentucky (the City), as of and for the fiscal year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Managements’ Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statement that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the governmental activities, each major fund, and the aggregate remaining fund information of the City of Hawesville, Kentucky as of June 30, 2018, and the respective changes in financial position and, where applicable, cash flows for the year then ended in accordance with accounting principles generally accepted in the Untied States of America.

Emphasis of a Matter – Implementation of New GASB Accounting Standard

As discussed in Note 13 to the financial statements, effective July 1, 2017, the City adopted Governmental Accounting Standards Board Statement No. 75. Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Our opinions are not modified to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Schedule of the City’s Proportionate Share of the Net Pension Liability – CERS and the Schedule of City Contributions – CERS on page 37 and 38, Schedule of the City’s Proportionate Share of the Net OPEB Liability – CERS and the Schedule of the City’s Proportionate Share of the Net OPEB Contributions – CERS on page 39 and 40, and the budgetary comparison information on page 41 and 42 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statement in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

 

Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated February 9, 2021, on our consideration of the City of Hawesville, Kentucky’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Hawesville, Kentucky’s internal control over financial reporting and compliance.

Based on the results of our audit, we have presented the following report findings:

2018-001 Control Risk Due To Lack Of Segregation Of Duties

2018-002 Annual Inventory Listing

2018-003 Accounting Records And Reporting

2018-004 The City Of Hawesville Does Not Have Sufficient Collateralization Of Deposits

2018-005 Budgetary Control Per KRS 91A.030(13)

Tichenor & Associates, LLP

Louisville, Kentucky

February 9, 2021

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