Fiscal Year 2013-2015 Special Budget Meeting

M A C I A S GINI & O'CONNELLLLP -A^WA.E'^O CartiriMl Public AcceuntMU & Muigimtnt Conaulttnti TfHilNItT CKE£K ',. HEWPOHTKilM S4*.'Df£c>"ti Honorable Mayor and. Members of the City Council City of Oakland, Califomiaf We have audited financial statements of the governmental activities, the business-type activities, the discretely presei^ted com^nent unit, each major fimd, and the aggregate remaining fund infomoation of the City of Oakland (tiie City) as of and for the year ended June 30, 2009, and have issued our report thereon dated November 25,2009. Our opinions on the financial statements, insofar as they relate to the Oakland Redevelopment Agency (ORA), are based solely on the report of ofter auditors. Ttis report does not include communications related to tiie audit of the ORA. Af^onaliy, although we performed the audit of the Port of Oakland (the Port), the City*s discretely presented component unit, titis report does not include tbe;cojmmiinications related to tliat audit because separate communication is m^e to the Port*s Board oifPoirt Commissioners. In planning and performing our audit of the financial statements of file govenunental activities, the business-type activities, the 4iscretely presented component unit, each m^or fund, and tii^ aggregate remaining fund information of ^e City as of and for tiie year ended June 30, 2009, in accordance witii auditing standards generally accepted in the United States of America and Ifae standards applicable to financial audits contamed in Government Auditing Standards^ issued by the Comptroller GOTieial of tiie United States, we considered the City's intraml control over finmcial reporting (intfflitL^ ixmtrol) as a basis for designing our auditing, procedures for the purpose of expressing our opinions on tl^ financial statements, but not for the purpose of expressing ain opinion on tiie effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the lunited purpose described in the preceding paragra{^ and was not deslgiiM to identify all deficiencies in intenial control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or mat^al weaknesses have been identified. Howeyer, as discussed below, we identified a certain deficiency ui internal control that we consider to 1)6 a matinlal weakness. A deficiency in internet control exists when tiie design or operation of a control does not allow management of'Cniployees, in the normal course of p^^forming their assigned fimctions, to prevent, or detect and corriect imsstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in interrml control such that there is a reasonable possibility that a material misstat^ent of the entity's financial statements will not be prevented, or detect^ and corrected on a timely basis. Wc consider the deficiency described as comment 2009-1 to be a material weidcness.