HomeMy Public PortalAboutNowlen Agmt 2018, 2019NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
WEST PALM BEACH OFFICE
NORTHBRIDGE CENTRE
515 N. FLAGLER DRIVE, SUITE 1700
POST OFFICE BOX 347
WEST PALM BEACH, FLORIDA 33402-0347
TELEPHONE (561) 659-3060
FAX (561) 835-0628
W W W.NHMCPA.COM
September 13, 2018
The Honorable Mayor, Members of the Town
Commission, and Town Manager
Town of Gulf Stream, Florida
100 Sea Road
Gulf Stream, FL 33483
EVERETT B. NOWLEN (1930-1984), CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER, RETIRED
ROBERT W. HENDRIX, JR., CPA
JANET R. BARICEVICH, RETIRED, CPA
TERRY L. MORTON, JR., CPA
N. RONALD BENNETT, CVA, ABV, CFF, CPA
ALEXIA G. VARGA, CFE, CPA
EDWARD T. HOLT, JR., PFS, CPA
BRIAN J. BRESCIA, CFP®, CPA
MARK J. BYMASTER, CFE, CPA
RYAN M. SHORE, CFP®, CPA
WEI PAN, CPA
WILLIAM C. KISKER, CPA
RICHARD E. BOTTS, CPA
BELLE GLADE OFFICE
333 S.E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
FAX (561) 996-6248
We are pleased to confirm our understanding of the services we are to provide the Town of Gulf Stream,
Florida for the year ended September 30, 2018. We will audit the financial statements of the
governmental activities, the business -type activities, and each major fund, including the related notes to
the financial statements, which collectively comprise the basic financial statements of the Town of Gulf
Stream, Florida as of and for the year ended September 30, 2018. Accounting standards generally
accepted in the United States of America provide for certain required supplementary information (RSI),
such as management's discussion and analysis (MD&A), to supplement the Town of Gulf Stream,
Florida's basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. As part of our engagement, we will apply certain limited
procedures to the Town of Gulf Stream, Florida's RSI in accordance with auditing standards generally
accepted in the United States of America. These limited procedures will consist 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 will not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance. The following RSI is required
by U.S. generally accepted accounting principles and will be subjected to certain limited procedures, but
will not be audited:
1) Management's Discussion and Analysis
2) Budgetary Comparison Schedule — General Fund
3) Schedule of Changes in Total CIPEB Liability and Related Ratios
We have also been engaged to report on supplementary information other than RSI that accompanies the
Town of Gulf Stream, Florida's financial statements. We will subject the following supplementary
information to the auditing procedures applied in our audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial statements
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America, and we will provide an opinion on it in relation to the financial statements
as a whole, in a report combined with our auditor's report on the financial statements.
1) Schedule of Expenditures of Federal Awards and State Financial Assistance, if applicable
Audit Objectives
The objective of our audit is the expression of opinions as to whether your financial statements are fairly
presented, in all material respects, in conformity with U.S. generally accepted accounting principles and
to report on the fairness of the supplementary information referred to in the second paragraph when
considered in relation to the financial statements as a whole. The objective also includes reporting on—
• Internal control over financial reporting and compliance with provisions of laws, regulations,
contracts, and award agreements, noncompliance with which could have a material effect on the
financial statements in accordance with Government Auditing Standards.
• Internal control over compliance related to major programs and projects and an opinion (or
disclaimer of opinion) on compliance with federal statutes, regulations, and the terms and
conditions of federal awards that could have a direct and material effect on each major program
in accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance) and each major state project in
accordance with Chapter 10.550 Rules of the Auditor General. (Single Audit Report)
The Government Auditing Standards report on internal control over financial reporting and on
compliance and other matters will include a paragraph that states that (1) the purpose of the report is
solely to describe the scope of testing of internal control and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the entity's internal control or on compliance, and
(2) the report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity's internal control and compliance. The Uniform Guidance report on
internal control over compliance will include a paragraph that states that the purpose of the report on
internal control over compliance is solely to describe the scope of testing of internal control over
compliance and the results of that testing based on the requirements of the Uniform Guidance and
Chapter 10.550 Rules of the Auditor General. Both reports will state that the report is not suitable for
any other purpose.
Our audit will be conducted in accordance with auditing standards generally accepted in the United
States of America; the standards for financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; the
provisions of the Uniform Guidance; and Chapter 10.550 Rules of the Auditor General, and will include
tests of accounting records, a determination of major program(s) in accordance with the Uniform
Guidance and major state project(s) in accordance with Chapter 10.550 Rules of the Auditor General,
and other procedures we consider necessary to enable us to express such opinions. We will issue written
reports upon completion of our Single Audit. Our reports will be addressed to the Mayor and Members
of the Town Commission of the Town of Gulf Stream, Florida. We cannot provide assurance that
unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to
modify our opinions or add emphasis -of -matter or other -matter paragraphs. If our opinions are other
than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to
complete the audit or are unable to form or have not formed opinions, we may decline to express
opinions or issue reports, or we may withdraw from this engagement.
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Audit Procedures—General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to be
examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements. We will plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement,
whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or
(4) violations of laws or governmental regulations that are attributable to the government or to acts by
management or employees acting on behalf of the government. Because the determination of abuse is
subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of
detecting abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control,
and because we will not perform a detailed examination of all transactions, there is a risk that material
misstatements or noncompliance may exist and not be detected by us, even though the audit is properly
planned and performed in accordance with U.S. generally accepted auditing standards and Government
Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations
of laws or governmental regulations that do not have a direct and material effect on the financial
statements or on major programs and projects. However, we will inform the appropriate level of
management of any material errors, any fraudulent financial reporting, or misappropriation of assets that
come to our attention. We will also inform the appropriate level of management of any violations of
laws or governmental regulations that come to our attention, unless clearly inconsequential, and of any
material abuse that comes to our attention. We will include such matters in the reports required for a
Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not
extend to any later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories, and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, funding
sources, creditors, and financial institutions. We will request written representations from your attorneys
as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our
audit, we will require certain written representations from you about your responsibilities for the
financial statements; schedule of expenditures of federal awards and state financial assistance; federal
and state award programs; compliance with laws, regulations, contracts, and grant agreements; and other
responsibilities required by generally accepted auditing standards.
Audit Procedures—Internal Control
Our audit will include obtaining an understanding of the government and its environment, including
internal control, sufficient to assess the risks of material misstatement of the financial statements and to
design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to
test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and
fraud that are material to the financial statements and to preventing and detecting misstatements
resulting from illegal acts and other noncompliance matters that have a direct and material effect on the
financial statements. Our tests, if performed, will be less in scope than would be necessary to render an
opinion on internal control and, accordingly, no opinion will be expressed in our report on internal
control issued pursuant to Government Auditing Standards.
As required by the Uniform Guidance and Chapter 10.550 Rules of the Auditor General, we will
perform tests of controls over compliance to evaluate the effectiveness of the design and operation of
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controls that we consider relevant to preventing or detecting material noncompliance with compliance
requirements applicable to each major federal award program and state project. However, our tests will
be less in scope than would be necessary to render an opinion on those controls and, accordingly, no
opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance and
Chapter 10.550 Rules of the Auditor General.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies or
material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will
communicate to management and those charged with governance internal control related matters that are
required to be communicated under AICPA professional standards, Government Auditing Standards, the
Uniform Guidance, and Chapter 10.550 Rules of the Auditor General.
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the Town of Gulf Stream, Florida's compliance with provisions
of applicable laws, regulations, contracts, and agreements, including grant agreements. However, the
objective of those procedures will not be to provide an opinion on overall compliance and we will not
express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.
The Uniform Guidance and Chapter 10.550 Rules of the Auditor General require that we also plan and
perform the audit to obtain reasonable assurance about whether the auditee has complied with federal
and state statutes, regulations, the terms and conditions of federal awards applicable to major programs,
and the terms and conditions of state awards applicable to major projects. Our procedures will consist of
tests of transactions and other applicable procedures described in the OMB Compliance Supplement and
the Department of Financial Services' State Projects Compliance Supplement for the types of
compliance requirements that could have a direct and material effect on each of the Town of Gulf
Stream, Florida's major programs and projects. The purpose of these procedures will be to express an
opinion on the Town of Gulf Stream, Florida's compliance with requirements applicable to each of its
major programs and projects in our report on compliance issued pursuant to the Uniform Guidance and
Chapter 10.550 Rules of the Auditor General.
Other Services
We will also assist in preparing the financial statements, annual financial report to be filed with the
Florida Department of Financial Services, schedule of expenditures of federal awards and state financial
assistance, and related notes of the Town of Gulf Stream, Florida in conformity with U.S. generally
accepted accounting principles, the Uniform Guidance, and Chapter 10.550 Rules of the Auditor
General based on information provided by you. These nonaudit services do not constitute an audit under
Government Auditing Standards and such services will not be conducted in accordance with
Government Auditing Standards. We will perform the services in accordance with applicable
professional standards. The other services are limited to the financial statements, annual financial report
to be filed with the Florida Department of Financial Services, schedule of expenditures of federal awards
and state financial assistance, and related notes services previously defined. We, in our sole professional
judgment, reserve the right to refuse to perform any procedure or take any action that could be construed
as assuming management responsibilities.
Management Responsibilities
Management is responsible for (1) designing, implementing, establishing, and maintaining effective
internal controls relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error, including internal controls over federal
awards, and for evaluating and monitoring ongoing activities, to help ensure that appropriate goals and
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objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurance
that government programs are administered in compliance with compliance requirements; and
(4) ensuring that management and financial information is reliable and properly reported. Management
is also responsible for implementing systems designed to achieve compliance with applicable laws,
regulations, contracts, and grant agreements. You are also responsible for the selection and application
of accounting principles; for the preparation and fair presentation of the financial statements, schedule of
expenditures of federal awards and state financial assistance, and all accompanying information in
conformity with U.S. generally accepted accounting principles; and for compliance with applicable laws
and regulations (including federal statutes) and the provisions of contracts and grant agreements
(including award agreements). Your responsibilities also include identifying significant contractor
relationships in which the contractor has responsibility for program compliance and for the accuracy and
completeness of that information.
Management is also responsible for making all financial records and related information available to us
and for the accuracy and completeness of that information. You are also responsible for providing us
with (1) access to all information of which you are aware that is relevant to the preparation and fair
presentation of the financial statements, (2) access to personnel, accounts, books, records, supporting
documentation, and other information as needed to perform an audit under the Uniform Guidance and
Chapter 10.550 Rules of the Auditor General, (3) additional information that we may request for the
purpose of the audit, and (4) unrestricted access to persons within the government from whom we
determine it necessary to obtain audit evidence.
Your responsibilities include adjusting the financial statements to correct material misstatements and
confirming to us in the management representation letter that the effects of any uncorrected
misstatements aggregated by us during the current engagement and pertaining to the latest period
presented are immaterial, both individually and in the aggregate, to the financial statements as a whole.
You are responsible for the design and implementation of programs and. controls to prevent and detect
fraud, and for informing us about all known or suspected fraud affecting the government involving
(1) management, (2) employees who have significant roles in internal control, and (3) others where the
fraud could have a material effect on the financial statements. Your responsibilities include informing us
of your knowledge of any allegations of fraud or suspected fraud affecting the government received in
communications from employees, former employees, grantors, regulators, or others. In addition, you are
responsible for identifying and ensuring that the government complies with applicable laws, regulations,
contracts, agreements, and grants. Management is also responsible for taking timely and appropriate
steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant
agreements, or abuse that we report. Additionally, as required by the Uniform Guidance and Chapter
10.550 Rules of the Auditor General, it is management's responsibility to evaluate and monitor
noncompliance with federal statutes, regulations, and the terms and conditions of federal awards; take
prompt action when instances of noncompliance are identified including noncompliance identified in
audit findings; promptly follow up and take corrective action on reported audit findings; and prepare a
summary schedule of prior audit findings and a separate corrective action plan.
You are responsible for identifying all federal and state awards received and understanding and
complying with the compliance requirements and for the preparation of the schedule of expenditures of
federal awards and state financial assistance (including notes and noncash assistance received) in
conformity with the Uniform Guidance and Chapter 10.550 Rules of the Auditor General. You agree to
include our report on the schedule of expenditures of federal awards and state financial assistance in any
document that contains and indicates that we have reported on the schedule of expenditures of federal
awards and state financial assistance. You also agree to include the audited financial statements with any
presentation of the schedule of expenditures of federal awards and state financial assistance that includes
5
our report thereon. Your responsibilities include acknowledging to us in the written representation letter
that (1) you are responsible for presentation of the schedule of expenditures of federal awards and state
financial assistance in accordance with the Uniform Guidance and Chapter 10.550 Rules of the Auditor
General; (2) you believe the schedule of expenditures of federal awards and state financial assistance,
including its form and content, is stated fairly in accordance with the Uniform Guidance and Chapter
10.550 Rules of the Auditor General; (3) the methods of measurement or presentation have not changed
from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you
have disclosed to us any significant assumptions or interpretations underlying the measurement or
presentation of the schedule of expenditures of federal awards and state financial assistance.
You are also responsible for the preparation of the other supplementary information, which we have
been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree
to include our report on the supplementary information in any document that contains, and indicates that
we have reported on, the supplementary information. You also agree to include the audited financial
statements with any presentation of the supplementary information that includes our report thereon.
Your responsibilities include acknowledging to us in the written representation letter that (1) you are
responsible for presentation of the supplementary information in accordance with GAAP; (2) you
believe the supplementary information, including its form and content, is fairly presented in accordance
with GAAP; (3) the methods of measurement or presentation have not changed from those used in the
prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us
any significant assumptions or interpretations underlying the measurement or presentation of the
supplementary information.
Management is responsible for establishing and maintaining a process for tracking the status of audit
findings and recommendations. Management is also responsible for identifying and providing report
copies of previous financial audits, attestation engagements, performance audits, or other studies related
to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes
relaying to us corrective actions taken to address significant findings and recommendations resulting
from those audits, attestation engagements, performance audits, or studies. You are also responsible for
providing management's views on our current findings, conclusions, and recommendations, as well as
your planned corrective actions, for the report, and for the timing and format for providing that
information.
You agree to assume all management responsibilities relating to the financial statements, annual
financial report to be filed with the Florida Department of Financial Services, schedule of expenditures
of federal awards and state financial assistance, and related notes, and any other nonaudit services we
provide. You will be required to acknowledge in the management representation letter our assistance
with preparation of the financial statements, annual financial report to be filed with the Florida
Department of Financial Services, schedule of expenditures of federal awards and state financial
assistance, and related notes and that you have reviewed and approved the financial statements, annual
financial report to be filed with the Florida Department of Financial Services, schedule of expenditures
of federal awards and state financial assistance, and related notes prior to their issuance and have
accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an
individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate
the adequacy and results of those services; and accept responsibility for them.
Engagement Administration, Fees, and Other
We will schedule the engagement based in part on deadlines, working conditions, and the availability of
your key personnel. We will plan the engagement based on the assumption that your personnel will
cooperate and provide assistance by performing tasks such as preparing requested schedules, retrieving
on
supporting documents, and preparing confirmations. If for whatever reason your personnel are unable to
provide the necessary assistance in a timely manner, it may affect our ability to complete the
engagement within the established deadlines.
At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection
Form that summarizes our audit findings. It is management's responsibility to electronically submit the
reporting package (including financial statements, schedule of expenditures of federal awards, summary
schedule of prior audit findings, auditors' reports, and corrective action plan) along with the Data
Collection Form to the federal audit clearinghouse. We will coordinate with you the electronic
submission and certification. The Data Collection Form and the reporting package must be submitted
within the earlier of 30 calendar days after receipt of the auditors' reports or nine months after the end of
the audit period.
We will provide copies of our reports to the Town of Gulf Stream, Florida; however, management is
responsible for distribution of the reports and the financial statements. Unless restricted by law or
regulation, or containing privileged and confidential information, copies of our reports are to be made
available for public inspection.
The audit documentation for this engagement is the property of Nowlen, Holt & Miner, P.A. and
constitutes confidential information. However, subject to applicable laws and regulations, audit
documentation and appropriate individuals will be made available upon request and in a timely manner
to a regulatory agency or its designee, a federal or state agency providing direct or indirect funding, or
the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit
findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested,
access to such audit documentation will be provided under the supervision of Nowlen, Holt & Miner,
P.A. personnel. Furthermore, upon request, we may provide copies of selected audit documentation to
the aforementioned parties. These parties may intend, or decide, to distribute the copies or information
contained therein to others, including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of five years after the
report release date or for any additional period requested by a federal or state awarding agency,
oversight agency, or pass-through entity. If we are aware that a federal or state awarding agency, pass-
through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the
audit finding for guidance prior to destroying the audit documentation.
We expect to begin our audit in December and to issue our reports no later than March 31st. Ronald
Bennett is the engagement partner and is responsible for supervising the engagement and signing the
reports or authorizing another individual to sign them.
Our fee for the financial statement audit will be $15,050. If a Federal Single Audit or a State Single
Audit is required, the fee would be based on the size, complexity, and the number of major programs.
The fee is generally between $3,000 and $5,000 per major program. Once it is determined that
additional work is required, a fixed fee will be agreed to before any work is performed.
Our invoices for these fees will be rendered each month as work progresses and are payable on
presentation. In accordance with our firm policies, work may be suspended if your account becomes
overdue and may not be resumed until your account is paid in full. If we elect to terminate our services
for nonpayment, our engagement will be deemed to have been completed upon written notification of
termination, even if we have not completed our report(s). You will be obligated to compensate us for all
time expended and to reimburse us for all out-of-pocket costs through the date of termination. The above
fee is based on anticipated cooperation from your personnel and the assumption that unexpected
h
circumstances will not be encountered during the audit. If significant additional time is necessary, we
will discuss it with you and arrive at a new fee estimate before we incur the additional costs.
We appreciate the opportunity to be of service to the Town of Gulf Stream, Florida and believe this
letter accurately summarizes the significant terms of our engagement. If you have any questions, please
let us know. If you agree with the terms of our engagement as described in this letter, please sign the
enclosed copy and return it to us.
Very truly yours,
7�.� /�"�
Nowlen, Holt & Miner, P.A.
RESPONSE:
This letter correctly sets forth the understanding of the Town of Gulf Stream, Florida.
Greg Dunham, Town Manager
Date:
4::�-T-
Scott W. rg ayor
Date: U
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NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
WEST PALM BEACH OFFICE
NORTHBRIDGE CENTRE
515 N. FLAGLER DRIVE, SUITE 1700
POST OFFICE BOX 347
WEST PALM BEACH, FLORIDA 33402-0347
TELEPHONE (561) 659-3060
FAX (561) 835-0628
W W W.NHMCPA.COM
September 13, 2018
The Honorable Mayor, Members of the Town
Commission, and Town Manager
Town of Gulf Stream
100 Sea Road
Gulf Stream, FL 33483
EVERETT B. NOWLEN (1930-1984), CPA
EDWARD T HOLT, CPA
WILLIAM B. MINER, RETIRED
ROBERT W. HENDRIX, JR., CPA
JANET R. BARICEVICH, RETIRED, CPA
TERRY L. MORTON, JR., CPA
N. RONALD BENNETT, CVA, ABV, CFF, CPA
ALEXIA G. VARGA, CFE, CPA
EDWARD T HOLT, JR., PFS, CPA
BRIAN J. BRESCIA, CFP-, CPA
MARK J. BYMASTER, CFE, CPA
RYAN M. SHORE, CFP-, CPA
WEI PAN, CPA
WILLIAM C. KISKER, CPA
RICHARD E. BOTTS, CPA
BELLE GLADE OFFICE
333 S.E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
FAX (561)996-6248
We are pleased to confirm our understanding of the services we are to provide for the Town of Gulf
Stream, Florida for the year ended September 30, 2018.
We will examine the Town of Gulf Stream, Florida's compliance with Section 218.415, Florida Statutes
during the fiscal year ended September 30, 2018. The objectives of our examination are to obtain
reasonable assurance and to express an opinion about whether the Town of Gulf Stream, Florida was in
compliance with Section 218.415, Florida Statutes during the fiscal year ended September 30, 2018.
Our examination will be conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants. Accordingly, it will include examining, on a test basis, your
records and other procedures to obtain evidence necessary to enable us to express our opinion. We will
issue a written report upon completion of our examination. Our report will be addressed to the Mayor
and Members of the Town Commission of the Town of Gulf Stream, Florida. We cannot provide
assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is
necessary for us to modify our opinion. If our opinion is other than unmodified, we will discuss the
reasons with you in advance. If, for any reason, we are unable to complete the examination or are unable
to form or have not formed an opinion, we may decline to express an opinion or may withdraw from this
engagement.
Because of the inherent limitations of an examination engagement, together with the inherent limitations
of internal control, an unavoidable risk exists that some material misstatements may not be detected,
even though the examination is properly planned and performed in accordance with the attestation
standards.
You understand that the report is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor
General, applicable management, and the Town Commission, and is not intended to be and should not
be used by anyone other than these specified parties.
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL
We will plan and perform the examination to obtain reasonable assurance about whether the Town of
Gulf Stream, Florida was in compliance with Section 218.415, Florida Statutes during the fiscal year
ended September 30, 2018. Our engagement will not include a detailed inspection of every transaction
and cannot be relied on to disclose all material errors, or known and suspected fraud or noncompliance
with laws or regulations, or internal control deficiencies, that may exist. However, we will inform you of
any known and suspected fraud and noncompliance with laws or regulations, internal control
deficiencies identified during the engagement, and uncorrected misstatements that come to our attention
unless clearly trivial.
We understand that you will provide us with the information required for our examination and that you
are responsible for the accuracy and completeness of that information. We may advise you about
appropriate criteria, but the responsibility for the subject matter remains with you.
You are responsible for the the Town of Gulf Stream, Florida's compliance with Section 218.415,
Florida Statutes. You are also responsible for providing us with (1) access to all information of which
you are aware that is relevant to the measurement, evaluation, or disclosure of the subject matter;
(2) additional information that we may request for the purpose of the examination; and (3) unrestricted
access to persons within the entity from whom we determine it necessary to obtain evidence.
At the conclusion of the engagement, you agree to provide us with certain written representations in the
form of a representation letter.
Ronald Bennett is the engagement partner and is responsible for supervising the engagement and signing
the report or authorizing another individual to sign it.
We expect to begin our examination in December. Our fees for these services are included in the fees for
the audit of the financial statements
We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the
significant terms of our engagement. If you have any questions, please let us know. If you agree with the
terms of our engagement as described in this letter, please sign the enclosed copy and return it to us.
Very truly yours,
Nowlen, Holt & Miner, P.A.
RESPONSE:
This letter correctly sets forth the understanding of the Town of Gulf Stream, Florida.
Greg Dunham, own Manager
Date: cl /17//
IF
2
NH NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT8 NOWLEN (1030-1984), IPA
■ ■ EDWARD T. HOLT, CPA
WILLIAM B- MINER, RETIRED
ROBERTW HENDRIK,JR, CPA
WEST PALM BEACH OFFICE JANET R BARICEVICH, RETIRED, CPA
NORTHBRTDOE CENTRE TERRY L. MORTON, JA, CPA
515 N. FLAOLER DRIVE, SURE 1700 N RONALD SENNETT, CVA, ABV, CFF CPA
ALEXIAG. VARGA, CFE, CPA
POST OFFICE BOX 347 EDWARD T HOLT, JR., PFS, CPA
WEST PALM BEACH. FLORIDA 33402.0347 BRIAN J BRESCIA, CFP', CPA
TELEPHONE (561) 659 :1060
FAX (561) 635-0628
W W W.NHMCPA COM
MARK BYMASTER,CFE, CPA
RYAN M. SHORE, CFP'. CPA
WEI PAN. CPA
WILLIAM C. KISKER, GPA
RICHARD S BOTTS, CPA
August 7, 2019
BELLE GLADE OFFICE
333 S.E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (561) 986.5612
FAX (561) 996-6248
'The Honorable Mayor, Members of the Town
Commission, and Town Manager
Town of Gulf Stream
100 Sea Road
Gulf Stream, FL 33483
We are pleased to confirm our understanding of the services we are to provide for the Town of Gulf
Stream, Florida for the year ended September 30, 2019.
We will examine the Town of Gulf Stream, Florida's compliance with Section 218.415, Florida Statutes
during the fiscal year ended September 30, 2019. The objectives of our examination are to obtain
reasonable assurance and to express an opinion as to whether the Town of Gulf Stream, Florida was in
compliance with Section 218.415, Florida Statutes during the fiscal year ended September 30, 2019, in
all material respects.
Our examination will be conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants. Accordingly, it will include examining, on a test basis, your
records and other procedures to obtain evidence necessary to enable us to express our opinion. We will
issue a written report upon completion of our examination. Our report will be addressed to the Mayor
and Members of the Town Cominission of the Town of Gulf Stream, Florida. We cannot provide
assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is
necessary for us to modify our opinion. If our opinion is other than unmodified, we will discuss the
reasons with you in advance. If, for any reason, we are unable to complete the examination or are unable
to form or have not formed an opinion, we may decline to express an opinion or may withdraw from this
engagement.
Because of the inherent limitations of an examination engagement, together with the inherent limitations
of internal control, an unavoidable risk exists that some material misstatements may not be detected,
even though the examination is properly planned and performed in accordance with the attestation
standards. This engagement does not constitute an audit under Government Auditing Standards and will
not be conducted in accordance with Government Auditing Standards.
You understand that the report is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor
General, applicable management, and the Town Commission, and is not intended to be and should not
be used by anyone other than these specified parties.
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL
We will plan and perform the examination to obtain reasonable assurance about whether the Town of
Gulf Stream, Florida was in compliance with Section 218.415, Florida Statutes during the fiscal year
ended September 30, 2014. Our engagement will not include a detailed inspection of every transaction
and cannot be relied on to disclose all material errors, or known and suspected fraud or noncompliance
with laws or regulations, or internal control deficiencies, that may exist. However, we will inform you of
any known and suspected fraud and noncompliance with laws or regulations, internal control
deficiencies identified during the engagement, and uncorrected misstatements that come to our attention
unless clearly trivial.
We understand that you will provide us with the information required for our examination and that you
are responsible for the accuracy and completeness of that information. We may advise you about
appropriate criteria, but the responsibility for the subject matter remains with you.
You are responsible for the Town of Gulf Stream, Florida's compliance with Section 218.415, Florida
Statutes. You are also responsible for providing us with (1) access to all information of which you are
aware that is relevant to the measurement, evaluation, or disclosure of the subject matter; (2) additional
information that we may request for the purpose of the examination; and (3) unrestricted access to
persons within the entity from whom we determine it necessary to obtain evidence.
At the conclusion of the engagement, you agree to provide us with certain written representations in the
form of a representation letter.
Ronald Bennett is the engagement partner and is responsible for supervising the engagement and signing
the report or authorizing another individual to sign it.
We expect to begin our examination in December. Our fees for these services are included in the fees for
the audit of the financial statements
We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the
significant terms of our engagement. If you have any questions, please let us know. If you agree with the
terms of our engagement as described in this letter, please sign the enclosed copy and return it to us.
Very truly yours,
Nowlen, Holt & Miner, P.A.
RESPONSE:
This letter correctly sets forth the understanding of the Town of Gulf Stream, Florida.
Greg Dunh , Town Manager
Date:
2
NH NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B NOWLEN (1930-1894). CPA
EDWARD T. HOLT, CPA
WILLIAM S. MINER, RETIRED
ROBERT W. HENDRIX, JR., CPA
WEST PALM BEACH OFFICE JANET R. BAnICEVICH, RETIRED, CPA
NORTHBRIDGE CENTRETERRY L MORTON, JR., CFA
515 N. FLAGLER DRIVE, SURE 1700 N RONALD BENNETT, OVA, ABV, CFF, CPA
ALEX1ACt VARGA CFE, OPA
POST OFFICE BOX 347 EDWARD L HOLT, JR_ PFS, CPA
WEST PALM BEACH, FLORIDA 33402-0347 BRIAN J 8RESCIA, CFP-, CPA
TELEPHONE (561) 659-3060
FAX (561) 835-W28
W W W NHMCPA COM
MARK SVMASTER, CFE. CPA
RYAN M. SHORE, CFP-,, CPA
W EI PAN, CPA
WILLIAM C- KISKER, CPA
RICHARD E BOTTS, CPA
August 7, 2019
BELLE GLADE OFFICE
333 S.E. 2nd STREET
POST OFFICE BOX 338
The Honorable Mayor, Members of the Town BELLE GLADE, FLORIDA &343M338
TELEPHONE (561) 996.5612
Commission, and Town Manager FAX (561) 986-6248
Town of Gulf Stream, Florida
100 Sea Road
Gulf Stream, FL 33483
We are pleased to confirm our understanding of the services we are to provide the Town of Gulf Stream,
Florida for the year ended September 30, 2019. We will audit the financial statements of the
governmental activities, the business -type activities, and each major fund, including the related notes to
the financial statements, which collectively comprise the basic financial statements of the Town of Gulf
Stream, Florida as of and for the year ended September 30, 2019. Accounting standards generally
accepted in the United States of America provide for certain required supplementary information (RSI),
such as management's discussion and analysis (MD&A), to supplement the Town of Gulf Stream,
Florida's basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. As part of our engagement, we will apply certain limited
procedures to the Town of Gulf Stream, Florida's RSI in accordance with auditing standards generally
accepted in the United States of America. These limited procedures will consist 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 will not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any, assurance. The following RSI is required
by U.S. generally accepted accounting principles and will be subjected to certain limited procedures, but
will not be audited:
1) Management's Discussion and Analysis
2) Budgetary Comparison Schedule — General Fund
3) Schedule of Changes in Total OPEB Liability and Related Ratios
We have also been engaged to report on supplementary information other than RSI that accompanies the
Town of Gulf Stream, Florida's financial statements. We will subject the following supplementary
information to the auditing procedures applied in our audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial statements
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America, and we will provide an opinion on it in relation to the financial statements
as a whole, in a report combined with our auditor's report on the financial statements.
1) Schedule of Expenditures of Federal Awards and State Financial Assistance, if applicable
Audit Objectives
The objective of our audit is the expression of opinions as to whether your financial statements are fairly
presented, in all material respects, in conformity with U.S. generally accepted accounting principles and
to report on the fairness of the supplementary information referred to in the second paragraph when
considered in relation to the financial statements as a whole. The objective also includes reporting on—
Internal control over financial reporting and compliance with provisions of laws, regulations,
contracts, and award agreements, noncompliance with which could have a material effect on the
financial statements in accordance with Government Auditing Standards.
Internal control over compliance related to major federal programs and state projects and an
opinion (or disclaimer of opinion) on compliance with federal and state statutes, regulations, and
the terms and conditions of federal awards and state financial assistance that could have a direct
and material effect on each major federal program in accordance with the Single Audit Act
Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniforn2
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance) and each major state project in accordance with Chapter 10.550 Rules of the
Auditor General.
The Government Auditing Standards report on internal control over financial reporting and on
compliance and other matters will include a paragraph that states that (1) the purpose of the report is
solely to describe the scope of testing of internal control and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the entity's internal control or on compliance, and
(2) the report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity's internal control and compliance. The Uniform Guidance and State
Single Audit report on internal control over compliance will include a paragraph that states that the
purpose of the report on internal control over compliance is solely to describe the scope of testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance and Chapter 10.550 Rules of the Auditor General. Both reports will state that the report is not
suitable for any other purpose.
Our audit will be conducted in accordance with auditing standards generally accepted in the United
States of America; the standards for financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; the
provisions of the Uniform Guidance; and Chapter 10.550 Rules of the Auditor General, and will include
tests of accounting records, a determination of major program(s) in accordance with the Uniform
Guidance and major state project(s) in accordance with Chapter 10.550 Rules of the Auditor General,
and other procedures we consider necessary to enable us to express such opinions. We will issue written
reports upon completion of our Single Audit. Our reports will be addressed to the Mayor and Members
of the Town Commission of the Town of Gulf Stream, Florida. We cannot provide assurance that
unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to
modify our opinions or add emphasis -of -matter or other -matter paragraphs. If our opinions are other
than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to
complete the audit or are unable to form or have not formed opinions, we may decline to express
opinions or issue reports, or we may withdraw from this engagement.
Audit Procedures—General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to be
examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements. We will plan and perform the audit to
obtain reasonable assurance about whether the financial statements are flee of material misstatement,
whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or
(4) violations of laws or governmental regulations that are attributable to the government or to acts by
management or employees acting on behalf of the government. Because the determination of abuse is
subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of
detecting abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control,
and because we will not perform a detailed examination of all transactions, there is a risk that material
misstatements or noncompliance may exist and not be detected by us, even though the audit is properly
planned and performed in accordance with U.S. generally accepted auditing standards and Government
Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations
of laws or governmental regulations that do not have a direct and material effect on the financial
statements or major federal programs and state projects. However, we will inform the appropriate level
of management of any material errors, any fraudulent financial reporting, or misappropriation of assets
that come to our attention. We will also inform the appropriate level of management of any violations of
laws or governmental regulations that come to our attention, unless clearly inconsequential, and of any
material abuse that comes to our attention. We will include such matters in the reports required for a
Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not
extend to any later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories, and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, funding
sources, creditors, and financial institutions. We will request written representations from your attorneys
as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our
audit, we will require certain written representations from you about your responsibilities for the
financial statements; schedule of expenditures of federal awards and state financial assistance; federal
award programs and state projects; compliance with laws, regulations, contracts, and grant agreements;
and other responsibilities required by generally accepted auditing standards.
Audit Procedures—Internal Control
Our audit will include obtaining an understanding of the government and its environment, including
internal control, sufficient to assess the risks of material misstatement of the financial statements and to
design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to
test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and
fraud that are material to the financial statements and to preventing and detecting misstatements
resulting from illegal acts and other noncompliance matters that have a direct and material effect on the
financial statements. Our tests, if performed, will be less in scope than would be necessary to render an
opinion on internal control and, accordingly, no opinion will be expressed in our report on internal
control issued pursuant to Government Auditing Standards.
As required by the Uniform Guidance and Chapter 10.550 Rules of the Auditor General, we will
perform tests of controls over compliance to evaluate the effectiveness of the design and operation of
controls that we consider relevant to preventing or detecting material noncompliance with compliance
requirements applicable to each major federal award program and state project. However, our tests will
be less in scope than would be necessary to render an opinion on those controls and, accordingly, no
opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance and
Chapter 10.550 Rules of the Auditor General.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies or
material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will
communicate to management and those charged with governance internal control related matters that are -
required to be communicated under AICPA professional standards, Government Auditing Standards, the
Uniform Guidance, and Chapter 10.550 Rules of the Auditor General,
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the Town of Gulf Stream, Florida's compliance with provisions
of applicable laws, regulations, contracts, and agreements, including grant agreements. However, the
objective of those procedures will not be to provide an opinion on overall compliance and we will not
express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.
The Uniform Guidance and Chapter 10.550 Rules of the Auditor General require that we also plan and
perform the audit to obtain reasonable assurance about whether the auditee has complied with federal
and state statutes, regulations, and the terms and conditions of federal awards applicable to major federal
programs, and state financial assistance applicable to major state projects. Our procedures will consist of
tests of transactions and other applicable procedures described in the OMB Compliance Supplement and
the Department of Financial Services' State Projects Compliance Supplement for the types of
compliance requirements that could have a direct and material effect on each of the Town of Gulf
Stream, Florida's major federal programs and state projects. The purpose of these procedures will be to
express an opinion on the Town of Gulf Stream, Florida's compliance with requirements applicable to
each of its major federal programs and state projects in our report on compliance issued pursuant to the
Uniform Guidance and Chapter 10.550 Rules of the Auditor General.
Other Services
We will also assist in preparing the financial statements, annual financial report to be filed with the
Florida Department of Financial Services, schedule of expenditures of federal awards and state financial
assistance, and related notes of the Town of Gulf Stream, Florida in conformity with U.S. generally
accepted accounting principles, the Uniform Guidance, and Chapter 10.550 Rules of the Auditor
General based on information provided by you. These nonaudit services do not constitute an audit under
Government Auditing Standards and such services will not be conducted in accordance with
Government Auditing Standards. We will perform the services in accordance with applicable
professional standards. The other services are limited to the financial statements, annual financial report
to be filed with the Florida Department of Financial Services, schedule of expenditures of federal awards
and state financial assistance, and related notes services previously defined. We, in our sole professional
judgment, reserve the right to refuse to pe►forn any procedure or take any action that could be construed
as assuming management responsibilities.
Management Responsibilities
Management is responsible for (1) designing, implementing, establishing, and maintaining effective
internal controls relevant to the preparation and fair presentation of financial statements that are free
EI
from material misstatement, whether due to fraud or error, including internal controls over federal
awards and state financial assistance, and for evaluating and monitoring ongoing activities, to help
ensure that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring
that there is reasonable assurance that government programs are administered in compliance with
compliance requirements; and (4) ensuring that management and financial information is reliable and
properly reported. Management is also responsible for implementing systems designed to achieve
compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible
for the selection and application of accounting principles; for the preparation and fair presentation of the
financial statements, schedule of expenditures of federal awards and state financial assistance, and all
accompanying information in conformity with U.S. generally accepted accounting principles; and for
compliance with applicable laws and regulations (including federal and state statutes) and the provisions
of contracts and grant agreements (including award agreements). Your responsibilities also include
identifying significant contractor relationships in which the contractor has responsibility for program
compliance and for the accuracy and completeness of that information.
Management is also responsible for making all financial records and related information available to us
and for the accuracy and completeness of that information. You are also responsible for providing us
with (1) access to all information of which you are aware that is relevant to the preparation and fair
presentation of the financial statements, (2) access to personnel, accounts, books, records, supporting
documentation, and other information as needed to perform an audit under the Uniform Guidance and
Chapter 10.550 Rules of the Auditor General, (3) additional information that we may request for the
purpose of the audit, and (4) unrestricted access to persons within the government from whom we
determine it necessary to obtain audit evidence.
Your responsibilities include adjusting the financial statements to correct material misstatements and
confirming to us in the management representation letter that the effects of any uncorrected
misstatements aggregated by us during the current engagement and pertaining to the latest period
presented are immaterial, both individually and in the aggregate, to the financial statements as a whole.
You are responsible for the design and implementation of programs and controls to prevent and detect
fraud, and for informing us about all known or suspected fraud affecting the government involving
(1) management, (2) employees who have significant roles in internal control, and (3) others where the
fraud could have a material effect on the financial statements. Your responsibilities include informing us
of your knowledge of any allegations of fraud or suspected fraud affecting the government received in
communications from employees, former employees, grantors, regulators, or others. In addition, you are
responsible for identifying and ensuring that the government complies with applicable laws, regulations,
contracts, agreements, and grants. Management is also responsible for taking timely and appropriate
steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant
agreements, or abuse that we report. Additionally, as required by the Uniform Guidance and Chapter
10.550 Rules of the Auditor General, it is management's responsibility to evaluate and monitor
noncompliance with federal and state statutes, regulations, and the terms and conditions of federal
awards and state financial assistance; take prompt action when instances of noncompliance are identified
including noncompliance identified in audit findings; promptly follow up and take corrective action on
reported audit findings; and prepare a summary schedule of prior audit findings and a separate corrective
action plan.
You are responsible for identifying all federal awards and state financial assistance received and
understanding and complying with the compliance requirements and for the preparation of the schedule
of expenditures of federal awards and state financial assistance (including notes and noncash assistance
received) in conformity with the Uniform Guidance and Chapter 10.550 Rules of the Auditor General.
You agree to include our report on the schedule of expenditures of federal awards and state.financial
assistance in any document that contains and indicates that we have reported on the schedule of
expenditures of federal awards and state financial assistance. You also agree to include the audited
financial statements with any presentation of the schedule of expenditures of federal awards and state
financial assistance that includes our report thereon. Your responsibilities include acknowledging to us
in the written representation letter that (1) you are responsible for presentation of the schedule of
expenditures of federal awards and state financial assistance in accordance with the Uniform Guidance
and Chapter 10.550 Rules of the Auditor General; (2) you believe the schedule of expenditures of
federal awards and state financial assistance, including its form and content, is stated fairly in
accordance with the Uniform Guidance and Chapter 10.550 Rules of the Auditor General; (3) the
methods of measurement or presentation have not changed from those used in the prior period (or, if
they have changed, the reasons for such changes); acid (4) you have disclosed to us any significant
assumptions or interpretations underlying the measurement or presentation of the schedule of
expenditures of federal awards and state financial assistance.
You are also responsible for the preparation of the other supplementary information; which we have
been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree
to include our report on the supplementary information in any document that contains, and indicates that
we have reported on, the supplementary information. You also agree to include the audited financial
statements with any presentation of the supplementary information that includes our report thereon.
Your responsibilities include acknowledging to us in the written representation letter that (1) you are
responsible for presentation of the supplementary information in accordance with GAAP; (2) you
believe the supplementary information, including its form and content, is fairly presented in accordance
with GAAP; (3) the methods of measurement or presentation have not changed from those used in the
prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us
any significant assumptions or interpretations underlying the measurement or presentation of the
supplementary information..
Management is responsible for establishing and maintaining a process for tracking the status of audit
findings and recommendations. Management is also responsible for identifying and providing report
copies of previous financial audits, attestation engagements, performance audits, or other studies related
to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes
relaying to us corrective actions taken to address significant findings and recommendations resulting
from those audits, attestation engagements, performance audits, or studies. You are also responsible for
providing management's views on our current findings, conclusions, and recommendations, as well as
your planned corrective actions, for the report, and for the timing and format for providing that
information.
You agree to assume all management responsibilities relating to the financial statements, annual
financial report to be filed with the Florida Department of Financial Services, schedule of expenditures
of federal awards and state financial assistance, and related notes, and any other nonaudit services we
provide. You will be required to acknowledge in the management representation letter our assistance
with preparation of the financial statements, annual financial report to be filed with the Florida
Department of Financial Services, schedule of expenditures of federal awards and state financial
assistance, and related notes and that you have reviewed and approved the financial statements, annual
financial report to be filed with the Florida Department of Financial Services, schedule of expenditures
of federal awards and state financial assistance, and related notes prior to their issuance and have
accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an
individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate
the adequacy and results of those services; and accept responsibility for them.
0
Engagement Administration, Fees, and Other
We will schedule the engagement based in part on deadlines, working conditions, and the availability of
your key personnel. We will plan the engagement based on the assumption that your personnel will
cooperate and provide assistance by performing tasks such as preparing requested schedules, retrieving
supporting documents, and preparing confirmations. If for whatever reason your personnel are unable to
provide the necessary assistance in a timely manner, it may affect our ability to complete the
engagement within the established deadlines.
At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection
Form that summarizes our audit findings. It is management's responsibility to electronically submit the
reporting package (including financial statements, schedule of expenditures of federal awards, summary
schedule of prior audit findings, auditor's reports, and corrective action plan) along with the Data
Collection Form to the federal audit clearinghouse. We will coordinate with you the electronic
submission and certification. The Data Collection Form and the reporting package must be submitted
within the earlier of 30 calendar days after receipt of the auditor's reports or nine months after the end of
the audit period.
We will provide copies of our reports to the Town of Gulf Stream, Florida; however, management is
responsible for distribution of the reports and the financial statements. Unless restricted by law or
regulation, or containing privileged and confidential information, copies of our reports are to be made
available for public inspection.
The audit documentation for this engagement is the property of Nowlen, Holt & Miner, P.A. and
constitutes confidential information. However, subject to applicable laws and regulations, audit
documentation and appropriate individuals will be made available upon request and in a timely manner
to a regulatory agency or its designee, a federal or state agency providing direct or indirect funding, or
the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit
findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested,
access to such audit documentation will be provided under the supervision of Nowlen, Holt & Miner,
P.A. personnel. Furthermore, upon request, we may provide copies of selected audit documentation to
the aforementioned parties. These parties may intend, or decide, to distribute the copies or information
contained therein to others, including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of five years after the
report release date or for any additional period requested by a federal or state awarding agency,
oversight agency, or pass-through entity. If we are aware that a federal or state awarding agency, pass-
through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the
audit finding for guidance prior to destroying the audit documentation. The obligations of Nowlen, Holt
& Miner, PA are solely the obligations of Nowlen, Holt & Miner, PA. No officer, owner, director,
employee, agent, contractor, shareholder, or controlling person shall be subject to any personal liability
whatsoever.
We expect to begin our audit in December and to issue our reports no later than March 31st. Ronald
Bennett is the engagement partner and is responsible for supervising the engagement and signing the
reports or authorizing another individual to sign them.
Our fee for the financial statement audit will be $15,050. If a Federal Single Audit or a State Single
Audit is required, the fee would be based on the size, complexity, and the number of major programs.
The fee is generally between $3,000 and $5,000 per major program. Once it is determined that
additional work is required, a fixed fee will be agreed to before any work is performed.
7
Our invoices for these fees will be rendered each month as work progresses and are payable on
presentation. In accordance with our firm policies, work may be suspended if your account becomes
overdue and may not be resumed until your account is paid in full. If we elect to terminate our services
for nonpayment, our engagement will be deemed to have been completed upon written notification of
termination, even if we have not completed our report(s). You will be obligated to compensate us for all
time expended and to reimburse us for all out-of-pocket costs through the date of termination. The above
fee is based on anticipated cooperation from your personnel and the assumption that unexpected
circumstances will not be encountered during the audit. If significant additional time is necessary, we
will discuss it with you and arrive at a new fee estimate before we incur the additional costs.
We appreciate the opportunity to be of service to the Town of Gulf Stream, Florida and believe this
letter accurately summarizes the significant terms of our engagement. If you have any questions, please
let us know. If you agree with the terms of our engagement as described in this letter, please sign the
enclosed copy and. return it to us.
Very truly yours,
Nowlen, Holt & Miner, P.A.
RESPONSE:
This letter correctly sets forth the understanding of the Town of Gulf Stream, Florida.
Greg D am, Town Manager
Date: 49,11 Z/, r07
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1
Scrit W. M gap, yor
Date: t