Comprehensive Annual Financial Report (CAFR) - Johnson City

~ ~~~~-li--~-B~kbur~ Childers&Steagall, PLCC E RTIFIED PuBLIC A ccouNTANTS A N D C oNs ULTANT SA MERICAN I N STITUT E OF C E RTIFE D PuBLIC A cco uNTANT SC ELEBRATIN G O UR 50TH A NNI VERSARYINDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OFFINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS. Honorable Mayor and Board of CommissionersCity of Johnson CityJohnson City, TennesseeWe have audited the financial statements of the governmental activities, the business-type activities, theaggregate discretely presented component units, each major fund, and the aggregate remaining fundinformation of the City of Johnson City, Tennessee (the "City") as of and for the year ended June 30, 2011,which collectively comprise the City's basic financial statements and have issued our report thereon datedDecember 15, 2011, which contains an explanatory paragraph noting the City's implementation of theprovisions of Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting andGovernmental Fund Type Definitions, which became effective for the year ended June 30, 2011. Our reportincludes a reference to other auditors. We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States. Other auditorsaudited the financial statements of the Johnson City Schools Site Based Fund, as described in our report on theCity's financial statements. This report does not include the results of the other auditors' testing of internalcontrol over financial reporting or compliance and other matters that are reported on separately by thoseauditors.-I}Internal Control over Financial ReportingIn planning and performing our audit, we considered the City's internal control over financial reporting as abasis for designing our auditing procedures for the purpose of expressing our opinions on the financialstatements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal controlover financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internalcontrol over financial reporting.A deficiency in internal control exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent, or detect and correctmisstatements on a timely basis. A matf:rial weakness is a deficiency, or combination of deficiencies, ininternal control such that there is a reasonable possibility that a material misstatement of the City's financialstatements will not to be prevented, or detected and corrected on a timely basis.Our consideration of the internal control over financial reporting was for the limited purpose described in thefirst paragraph of this section and was not designed to identify all deficiencies in internal control over financialreporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify anydeficiencies in internal control over financial reporting that we consider to be material weaknesses, as definedabove.Johnson CityKingsportGreeneville801B Sunset Drive, Johnson City, TN 37604440 E. Sullivan Street, Kingsport, TN 37660550 Tusculum Boulevard, Greeneville, TN 37745(423) 282-4511(423) 246-1725(423) 638-8516Fax (423) 283-4532Fax (423) 247-6800Fax (423) 638-3361website: http:/ /www.BCScpa.come-mail: BCS@BCScpa.com