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HomeMy WebLinkAboutMDC Audit Letter and Resolution 1 104 E. Fairview Ave #239 Meridian, ID 83642 208.830.7786 www.meridiandevelopmentcorp.com December 3, 2025 Eide Bailly LLP 877 W. Main Street, Suite 800 Boise, Idaho 83702 This representation letter is provided in connection with your audit of the financial position of the governmental activities and each major fund and the respective changes in financial position of Meridian Development Corporation as of September 30, 2025, and for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, of the various opinion units of Meridian Development Corporation in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP). Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of December 3, 2025: Financial Statements 1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated September 15, 2025, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP. 2 2. We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 3. We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. 4. We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements. 5. We have reviewed, approved, and taken responsibility for the financial statements and related notes. 6. We have a process to track the status of audit findings and recommendations. 7. We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. 8. Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. 9. Any related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. 10. All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. 11. The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP. 12. All funds and activities are properly classified. 13. All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus as amended, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users. 3 14. All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved. 15. Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy. 16. All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. 17. All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis. 18. All interfund and intra-entity transactions and balances have been properly classified and reported. 19. Deposit and investment risks have been properly and fully disclosed. 20. Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated. 21. All required supplementary information is measured and presented within the prescribed guidelines. Information Provided 22. We have provided you with: a. Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters; b. Additional information that you have requested from us for the purpose of the audit; and c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. 23. All transactions have been recorded in the accounting records and are reflected in the financial statements. 4 24. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. 25. We have no knowledge of any fraud or suspected fraud that affects the entity and involves: a. Management; b. Employees who have significant roles in internal control; or c. Others where the fraud could have a material effect on the financial statements. 26. We have no knowledge of any allegations of fraud, or suspected fraud, affecting the entity’s financial statements communicated by employees, former employees, vendors, regulators, or others. 27. We are not aware of any pending or threatened litigation, claims, and assessments whose effects should be considered when preparing the financial statements and we have not consulted legal counsel concerning litigation, claims, or assessments. 28. We have disclosed to you the identity of the entity’s related parties and all the related party relationships and transactions of which we are aware. 29. There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. 30. Meridian Development Corporation has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities. 31. We have disclosed to you all guarantees, whether written or oral, under which Meridian Development Corporation is contingently liable. 32. We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds. 33. There are no: a. Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations. b. Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62. c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62 d. Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12). 34. Meridian Development Corporation has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you. 35. We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance. ___________________________________ Ashley Squyres, Administrator MERIDIAN DEVELOPMENT CORPORATION THE URBAN RENEWAL AGENCY OF THE CITY OF MERIDIAN Resolution No. 25-025 BY THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF MERIDIAN, IDAHO, A/K/A THE MERIDIAN DEVELOPMENT CORPORATION: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF MERIDIAN, IDAHO, ACCEPTING AND APPROVING THE FISCAL YEAR 2024-2025 ANNUAL AUDIT REPORT FOR THE MERIDIAN DEVELOPMENT CORPORATION ("MDC"); AUTHORIZING AND DIRECTING THE ADMINISTRATOR TO TAKE ALL NECESSARY ACTION REQUIRED REGARDING THE ANNUAL AUDIT REPORT; AND PROVIDING AN EFFECTIVE DATE. THIS RESOLUTION, made on the date hereinafter set forth by the Urban Renewal Agency of the City of Meridian, Idaho, an independent public body corporate and politic, authorized under the authority of the Idaho Urban Renewal Law of 1965, as amended, Chapter 20, Title 50, Idaho Code, a duly created and functioning urban renewal agency of the City of Meridian, Idaho, hereinafter referred to as the "MDC." WHEREAS, the MDC, an independent public body, corporate and politic, is an urban renewal agency created by and existing under the authority of and pursuant to the 'Idaho Urban Renewal Law of 1965, being Idaho Code title 50, chapter 20, as amended and supplemented, and the Local Economic Development Act of 1988, being Idaho Code, Title 50, Chapter 29; as amended and supplemented (collectively the "Act"); WHEREAS, the MDC was established by Resolution No. 01-367 of the City Council of the City of Meridian, Idaho (hereinafter the "City Council"), adopted July 24, 2001; WHEREAS, the City Council of the City of Meridian, Idaho (the "City"), on October 8, 2002, after notice duly published, conducted a public hearing on the Meridian Revitalization Plan (the "Revitalization Plan"); WHEREAS, following said public hearing the City adopted its Ordinance No. 02- 98E on December 3, 2002, approving the Revitalization Plan and making certain findings; RESOLUTION NO. 25-025 (Approval of 2025 Annual Audit Report) - 1 WHEREAS, the MDC Auditor has prepared the 2025 fiscal year Annual Audit Report for the urban renewal district and the board has reviewed the report; WHEREAS, the Annual Audit Report found the MDC finances to be in order and MDC desires to approve and accept the 2025 fiscal year Annual Audit Report and desires that the Administrator take all necessary action regarding the report as required by law; NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF MERIDIAN, IDAHO, A/K/A THE MERIDIAN DEVELOPMENT CORPORATION, AS FOLLOWS: Section 1: That the above statements are true and correct Section 2: That the Board finds the audit report and the agency's finances to be in order and hereby accepts and approves the 2025 fiscal year Annual Audit Report. Section 3: The Board authorizes the Administrator to take all necessary action to implement this resolution and comply with Idaho law concerning the 2025 fiscal year Annual Audit Report. Section 4: That this resolution shall be in full force and effect immediately upon its adoption and approval. PASSED AND ADOPTED by the Urban Renewal Agency of the City of Meridian, Idaho, a/k/a the Meridian Development Corporation, on December 10, 2025. Signed by the Chairman of the Board of Commissioners, and attested by the Secretary to the Board of Commissioners, on this December 10, 2025. APPROVED: By Dave Winder, Chairman ATTEST: Steve Vlak, Secretary ESOLL - N . 25-025 (Approval of 2025 Annual Audit Report) - 2