Brandon W. Burrows
Donald L. Parker
Michael K. Chu
David E. Hale
A Professional Corporation
Donald G. Slater
Richard K. Kikuchi
Certified Public Accountants Retired
Robert C. Lance
1914- 1994
Richard C. Soll
Fred J. Lunghard, Jr.
1928- 1999
INDEPENDENT AUDITORS' REPORT
To The Honorable Mayor and Members of the City Council
City of Emeryville, California
We have audited the accompanying financial statements of the governmental activities, the business- type
activities, each major fund and the aggregate remaining fund information of the City of Emeryville, California,
as of and for the year ended June 30, 2006, which collectively comprise the City’s basic financial statements
as listed in the accompanying table of contents. These financial statements are the responsibility of the City
of Emeryville’s 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 by the United States of
America and the standards applicable to financial audits contained in the 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 opinion.
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, each major fund and
the aggregate remaining fund information of the City of Emeryville as of June 30, 2006, and the respective
changes in financial position and cash flows, where applicable, and the respective budgetary comparison for
the General Fund, thereof 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
November 17, 2006 on our consideration of the City of Emeryville’s internal control over financial reporting
and our tests of its compliance with certain laws, regulations, contracts, 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 assessing the results of our audit.
The management's discussion and analysis is not a required part of the basic financial statements but is
supplementary information required by the Governmental Accounting Standards Board. 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.
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