Village of Grafton • Department of Administrative Services • 860 Badger Circle • Grafton, WI 53024 p (262) 375-5300 • f (262) 375-5312 • pstyduhar@village.grafton.wi.us April 21, 2017 To the Citizens and Board of Trustees of the Village of Grafton, Wisconsin: The Comprehensive Annual Financial Report for the Village of Grafton, Wisconsin, for the year ended December 31, 2016, is hereby submitted. This report consists of management’s representations concerning the finances of the Village of Grafton. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the Village of Grafton has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficiently reliable information for the preparation of the Village of Grafton’s financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the Village of Grafton’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Baker Tilly Virchow Krause, LLP, a firm of certified public accountants and consultants, have audited the Village of Grafton’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Village of Grafton for the year ended December 31, 2016, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Village of Grafton’s financial statements for the fiscal year ended December 31, 2016, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. Generally accepted accounting principles require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The Village of Grafton’s MD&A can be found immediately following the report of the independent auditors. 1