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INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS <br />AND SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS <br />(Continued) <br />Our audit was conducted for the purpose of forming opinions on the financial statements that collec- <br />tivelycomprise the City's basic financial statements. The introductory section, combining fund financial state- <br />ments, other budgetary comparison schedules, and statistical tables are presented for purposes of additional <br />analysis and are not a required part of the basic financial statements. The combining fund financial state- <br />mentsand other budgetary comparison schedules have been subjected to the auditing procedures applied in <br />the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in rela- <br />tion to the basic financial statements taken as a whole. The introductory section and statistical tables have not <br />been subjected to the auditing procedures applied in the audit of the basic financial statements and, accord- <br />ingly, we express no opinion on them. <br />STATE BOARD OF ACCOUNTS <br />May 25, 2007 <br />20 <br />