AUDITOR PREPARED FINANCIAL STATEMENTS Name of contact person: Mayor and Clerk Corrective Action: We have considered the issue of Auditor-prepared financial statements. However, the City believes that the controls and practices in place adequately serve our needs and that the costs of hiring additional professionals to do this work would not justify the benefits to be gained. As long as we have confidence in the ability and experience of the accounting firm selected to do our audit, and as long as we actively participate in the preparation, preliminary review, and drafting of financial statements, we trust the reliability of the statements to effectively fulfill their purpose. Proposed Completion Date: The City will continue to monitor this concern and avoid problems that may raise questions concerning the reliability of the financial statements.