R2006-071 05-22-06
RESOLUTION NO. R2006-71
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, ACCEPTING THE CITY'S ANNUAL AUDIT MANAGEMENT
LETTER AS PREPARED BY THE ACCOUNTING FIRM OF PATTILLO,
BROWN AND HILL, L. L. P.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain financial audit management letter as prepared by Patillio,
Brown and Hill, L. L. P., a copy of which is attached hereto as Exhibit "A" and made a part
hereof for all purposes, is hereby authorized and approved.
Section 2. That the City Council accepts the City's annual financial audit
management letter.
PASSED, APPROVED and ADOPTED this the 22nd day of May, AD., 2006.
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TOM REID
MAYOR
APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
EXHIBIT
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PAT T ILL 0, B ROW N & H ILL, 1.. 1.. P.
CERTIFIED PUBLIC ACCOUNTANTS. BUSINESS CONSULTANTS
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and
Member of the City of Council
City of Pearland, Texas
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the City of Pearland, Texas, as of and for the year ended
September 30, 2005, which collectively comprise the City's basic financial statements as listed in the
table of contents. These financial statements are the responsibility of the City of Pearland, Texas'
management. 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 and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. 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 examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our 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
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Pearland, Texas, as of September 30, 2005, and the respective changes in
financial position and cash flows, where applicable, thereof and the respective budgetary comparison for
the General Fund for the year then ended in conformity with accounting principles generally accepted in
the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated March
10, 2006, on our consideration of the City of Pearl and, Texas' 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 and should be considered in conjunction
with this report in considering the results of our audit.
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401 WEST HlGHW A Y 6 . P. O. BOX 20725 . WACO, TX 76702-0725 . (254) 772-4901. FAX: (254) 772-4920. www.pbhcpa.com
AFFlLIA TE OFFICES: BROWNSVILLE, TX (956) 544-7778 . HlLLSBORO, TX (254) 582-2583
TEMPLE, TX (254) 791-3460. ALBUQUERQUE, NM (505) 266-5904
The management's discussion and analysis on pages 3 through 10 is not a required part of the
basic financial statements but is supplementary information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Pearland, Texas' basic financial statements. The introductory section,
combining and individual fund financial statements and schedules, and statistical tables are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The
combining and individual fund financial statements and schedules have been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in
all material respects in relation to the basic financial statements taken as a whole. The introductory
section and statistical tables have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we express no opinion on them.
?ct,"'h..U.o I \S~ ~ th..U.) L. L.f.
March 10,2006
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For the year ended
September 30, 2005