HomeMy WebLinkAbout2023 - Tax Increment Finance Authority TIFA Audit Letter 2023 Maner Costerisan 2425 E.Grand River Ave.,
Ma n e r Suite 1,Lansing,MI 48912
n 517.323.7500
(r,00
0 517.323.6346
December 15, 2023
The Honorable Mayor, Members of the City Council of the City of Lansing,
and Members of the Board of Directors of the
Tax Increment Finance Authority of the City of Lansing
Lansing,Michigan
We have audited the financial statements of the governmental activities and the major fund of the Tax Increment
Finance Authority of the City of Lansing (the Authority), a discretely presented component unit of the City of
Lansing, Michigan, for the year ended June 30, 2023. Professional standards require that we provide you with
information about our responsibilities under generally accepted auditing standards and Government Auditing
Standards, as well as certain information related to the planned scope and timing of our audit. We have
communicated such information in our letter to City Council dated October 30, 2023. Professional standards
also require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Tax Increment Finance Authority of the City of Lansing are described in Note 1
to the financial statements. As described in Note 10 to the financial statements, the Authority adopted
Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-based IT Arrangements,
during the year ended June 30, 2023. The implementation of GASB Statement No.96 did not have an impact on
the financial statements. We noted no transactions entered into by the Authority during the year for which there
is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based
on management's knowledge and experience about past and current events and assumptions about future
events. Certain accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ significantly from those
expected. The most sensitive estimate affecting the financial statements was:
Investments are carried at fair value, which is defined as the amount that the Authority could reasonably
expect to receive for an investment in a current sale between a willing buyer and a willing seller and is
generally measured by quoted market prices.
We evaluated the key factors and assumptions used to develop this estimation in determining that it is
reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral,consistent,and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements that were detected as a result of audit procedures. The
misstatements that were corrected by management related to various year-end accrual adjustments.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the
auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 15, 2023.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of
an accounting principle to the Authority's financial statements or a determination of the type of auditor's opinion
that may be expressed on those statements, our professional standards require the consulting accountant to
check with us to determine that the consultant has all the relevant facts. To our knowledge,there were no such
consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters,including the application of accounting principles and auditing standards,
with management each year prior to retention as the Authority's auditors. However,these discussions occurred
in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the management's discussion and analysis and budgetary comparison
schedule,which are required supplementary information (RSI) that supplement the basic financial statements.
Our procedures consisted of inquiries of management regarding the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We did not
audit the RSI and do not express an opinion or provide any assurance on the RSI.
Restriction on Use
This information is intended solely for the use of the City Council of the City of Lansing,the Board of Directors,
and management of the City of Lansing and of the Tax Increment Finance Authority of the City of Lansing and is
not intended to be,and should not be,used by anyone other than these specified parties.
Very truly yours,
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