Fiscal Year 2013-2015 Special Budget Meeting

CITY OF OAKLAND Required Communications and Recommendations Fiscal Year Ended June 30,2009 REQUIRED COMMUNICATIONS Professional standards require that we provide you with the following information related to our audit L The Auditor's Responsibility Under U.S. Generally Accepted Auditing Standards and OMB Circular A-t33 As stated in our engagement letter dated February 26, 2009, our responsibility, as described by professional standards, is to express opinions about whether the fiiiancial statemrats prepared by management with your oversi^t are fairly presented, in all material respects, in conformity with U.S. graierally accepted accounting principles. Our audit of the fmancial statements does not relieve you or manag«nent of your responsibilities. In planning and performing our audit we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting. We also considered internal control over compliance with requirements that could have a direct and material effect on a ma^ot federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance OMB Circular A-133. As part of obtaining reasonable assurance about whether the City's financial statranents are fiee of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a dhect and material effect on the deteimination of financial statemait amounts. However, providing an opinion on compliance with those provisions is not an objective of our audit. Also in accordance with OMB Cireular A-133, we will examine, on a test basis, evidence about the City's compliance with the types of compliance requirements described m tiie U.S Office of Management and Budget (OMB) Circtt/or A-133 Compliance Stqjplement applicable to each of its m^or federal programs for the purpose of expressing an ophiion on the City's compliance with those requirements. While our audit will provide a reason^le basis for our opinion, it will not provide a legal determination on the City's compliance with those requirements. Our reports required under OMB A-133 are in process and those reports will be provided to you when they have been issued. n. Other Information in Documents Containing Audited Financial Statements During the year, tiie City included audited financial statements for the year ended June 30,2008 in various debt offering documents (e.g.. Official Statements.) We do not have an obligation to perform any procedures to corroborate other information contamed m such debt offering documents. We were not associated with and did not have any involvement with such documents. Accordingty, we did not perform any procedures on these docimients and provide no assurance as to the other information contained in tiie debt offering documents. Our responsibUity for other information in documents containing the City's financial statements and our report thereon does not ext^d beyond financial information identified in our report, and we have no obligation to perform any procedures to corroborate other information contained in these documents. We have, however, read the other information included hi the (:ity*s compr^tensive annual fmancial report; and no matters came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the infomiBtion, or its manner of presentation, appearing in the financial statements.