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Home My Public Portal Aboutr 99:06No 99-6 Date i)t AdoptionJalqtlary 1.. lC)99 APPOINTING A MUNICIPAl, AUDITOR FOR THE YEAR 1999 Ii %'HEREAS, there exists a need tbr a Regisle~ed Municipal Accountant of thc State of New lersey and WHEREAS, funds are a~ailable for this propose: and WHEREAS, the Local Public Contracts Law (NJSA 40A:I 1-1 et seq) requires that the resolution authorizb~g the award of contracts For "Professional Services" without competitive bids must be publicl> ad;ertisedl NO'W, THEREFORE, BE IT RESOLVED by the Mayor and Council o£ the Borough of Caneret as follox~ s 1 LERCH, VINCI a HIGGINS~ Registered Mnnicipal Accountants of the Stale of New Jersey are hereby appointed Municipal Auditor For the Borough of Carteret the year 1999 2. That they' shall in addition to preparing the annual audit in accordance with the statutoL~' requirement assist in lbo preparation of the 1999 Municipal Budget; prepare such interim reports as ma3 be required: attend all conferences and meeting as required by, the Governing Body, including forty (40) hours related budget meetings and prepare the [ 999 budget 3 Said appointment is awmded '~;ithout competitiYe bidding as a Professional Service under the provisions of the Local Public Contracts La'e, because a ('e~xified Public Accountant is a recognized profession licensed and regulated bv Law 4 For the pedbnnance of the atb~esaid setMces, ~ LER~CH, VINCJ._ & JJlGGibJS2E ? be pa i d an annual fee of $30.000 0O 5 A notice (oft ~is action shah be published in ?be Home News Tribune as required by law on Janua~7 7. 1999 Adopted this 1st ¢t% oF January 1999 and certified as a true cop3 of the original on January 4, 1999 KATHLEEN M BARNEY. Municipal Clerk RECORD OECOUNCILVOTE COUNCILMAN YES NO I ~z ~l A.B. COUNCILMAN CRILLEY MANCUSO ix FAZEKAS ~ X O'BRIEN _GUTOWSKI ~ ~ QUINONES X Indicate Vote AB Absent hES NO [ NV A.B. NV . Not Voting XOR - Indicates Lote to Otcrrulc Veto Adopted at a meeting of the Municipal Council January_ 1, 1999 MIDDLESEX COUNTY MEMORANDUM DATE: January 20, 1999 I'(): Lerch,Vinci & Higgins 17-17 Route 208 Fairlawn, INlewr Jerse5r 07410 FROM: KATHLEEN M. BARNEY, RMC/CMC Municipal Clerk SUBJECT. Auditors Col]tract ENC1,S: Gloria Goodrich, Purcaasing Agent File i~I~i'ICt], X'INCi & HI(;(;IN~ Januar3 12. 1999 t lonorablc Mayor and Members of tile Borough Council Borough of Cartcret 61 Cooke A yen uc ( arteret. NJ 07008 Dear (iuxerning Beds: \Vt atr'c pleased to conlh'm our understanding of the serxices ~xe are to provide for the Borough of Carteret tbr the )'ear ended December 31, 1999 We will audit tho financial statements of tiao Borough of Cartcrct as of and fbr thc year ended December 31, 1999. In addition, we pI-,>posc to timely complete the Ibllm~ing additional sen'ices that will not be subjected to thc auditing procedures applied in {)tlr audit of the financial statements: Rcvioxx of the Unaudited /\mmal ldnancial Statement for thc year ended December 31. 999 o Rcvicx~ and ccrlifica/ion of the 1999 Annual Budgel ()ur audit will be a Single Audit made in accordance with generally accepted auditing standards 1Ur financial audits contuincd in "(}overnment Auditing St~d~ds", issued by the Comptroller General of the United States: the Single Audit Act Amendments of 1996; a~d the provisions of OMB Circular A-133, "Audits of States. I.ocal Governments and Non-Profit Organiza~tions" m~d the provisions of New Jersey Circular 98-07. and will include tests of thc accounting records of the Borough and other procedures ~e consider necessary 1o enable us to express an unqualified opinion that lhe financial statements arc Ih)fly presented, in all ~fmtcrial respects, in contbrmity xxith accounting principlcs m~d practices as prescribed by thc Dixision of' l.oca! Gov,zrmnent Serx ices. D? ~rtmcnt of Community Affidrs. State of New Jersey. and to report on thc schedules ufexpcnditures of Ibderal awards and state financial assistance and the Burough% conlDlitmcc ~5 )th lays ami ~egu!aiions and thc p~,.)x i:;io~s of contracts and grant agreements and its iuterna! reasons in our report. The management of thc Borough of Cartcret is responsible lbr establishing and mainlainin~ internal controh In f~lfilling Ibis responsibilit3, eslimatcs and judgements by managemem arc required~o assess lbo expected benefits and related cosls et' thc controls. Thc o[2jcctives of internal control are lo proxide management with reasonable, bnt not absolule, assurance that assets arc satbguarded against loss fi'om unauthorized usc or disposition, that transactions are executed in accordance x~itb managcmenfs authorizations and recorded properly to pcmfit the preparation of financial statements in accordance ~itb accounting principles and practices as prescribed by Ihe I)ivision of Local Goxernmcnt Services. Department of Community Af/hirs, Stale of Ncx~ Jersey, and that l)dcral and state award programs arc managed in compliance with applicable lax~s and rcgtdations and the provisions of contracts and grant agroolI1OlltS, in planning and pertbmfing our audit lbr the year cndcd December 31. 1999. wc will consider the internal control in order to determine our auditing procedures lbr thc pu~osc of cxpressing our opinions on Ibe Bo~ouab s hnancml statements and on ~ts comphancc w~th reqmrements apphcablc to malor programs and to rcp~)rt on internal control in accordance with OMB Circular A-133 and Ne~ .lersey C frcular 98-07. and not to prox idc assHrancc on the internal controh We will obtain an understanding el'thc design of thc relevant controls and wbcthcr thcx have been placed in operalion, and ~c will assess control risk. I'csts of controls may be pertbrmcd to test the cflbctivcncss of certain controls thai we consider relevant to prex enting and dc{ccting e~ors and lkaud that are material lo the financial statements and to prevenling and detecting misstatements resulting I?om illegal acts and other noncompliance matters that bavc a direct and malerial eflbct on thc financial stalements. Our tests, il' perlbrmc& will be less in scope than would be necessary to render an opinion on internal conlrol and. accordingl5. no opinion will be expressed. \Vt x~ill pcrfbrm tests of controls, as required by OMB Circular A-133 and New Jersey Circular 98- 07, to exaluale the efl~ctivcncss of thc desian and o~erafion of controls that we considered relevant to prex'cnlmz- ~, or determining, materml noncomphance X~ Itel COin qmncc rccjutrcmcnts, apphcable to each el thc Borouoh'~= major /bderal ..and/'°r .slate award prog, rams ...... Our tests x~ll be less in scope than would be ncccssaU to render an oNmon on these controls and, accordingly, no opinion ~ill be expressed. \Vt will intbnn you of any mallets inxolving internal control and its operalion that we consider to bc rcpotlahlc conditions nnder standards eslablishcd by thc A~ncrican Institute of Certified Public Accountants. Repotlablc conditions involve mailers coming to our attention relating to significant deficiencies in the design or operation of thc internal control that. in our,iudgcmcnt, could adxersely afl'oct ibc cntity's abilil? to record, process, sunnnarizc, and reporl linancial data consistent with the assertions of management in thc financial statemenls. We will also inform you of any reportable conditions or other matters involving internal control, if any. as required by OMB Cfrcular A-133 and New ,Icrscy Circular 07. Compliance x~itb laws, rct~ulations, conlracls and arant agreements applicable to thc Borough of (aitc~ct ~s thc rcspons~bdn~ el the Borouabs managemeS~t. As p,m et obtmmna reasonable assmancc aboul xdacthcr thc financial statements are flee of material misstatement. ~e x~i~i pcrtbm] tests of the Borough's compli~n?}c with applicable la~s and regulations and the provisions of contracts and re'ant agreements. Hm~exer, lbo o~}cctivc of our audit will not be to provide an opinion on oxerall compliance with such provisions, and ~e xxil] nol express such an opinion. -3- Our audit x~ill be conducted in accordance ~itln the standards rcfkrred to in tine tlnird paragraph. OMB Circular A-103 and New Jersey Circular 98-07 require that we plain and perlbm~ the aud'it to'obtain rc!}sonat~lq assurgnce about whether the Borough l!as complied with applicable lax~s and regulations and tine proxismns o~ contracts and grant agrccments. Our procedures will consist of the applicable procedures described in the Circulars' compliance supplements. The purpose of our audit will be to express an opiuion on the Borougb's compliance with requirements applicable to ma or programs. Our procedures will include tests o1' documcntar> e~idencc supporting the lransactions recorded in thc accounls, and may include direct confirmation of receivables and ce~ain other assels and liabilities b> correspondence with selected individuals, creditors, and linancial institutions. We will requesl written representation fi'om your attorneys as part ol' thc cnaagcmenl, and they may bill ~ou lbr respondJn~ to this incluir3. At thc conclusion of ou~ audit, we will aisc} request certain x~itte~f reprekentations fi'om y(Ju about thc Iinancial statements and related matters. An audi{ includes examining, on a test basis, exidence supporting the amounts and disclosures in thc financial statements: therefore, our audit will involve judgement about thc number of transactions to be examined and the areas to be tested. Also, we will plan and perlbrm tine audit to obtain reasonable assurance about whether thc financial stalements arc free of material misstatement. As required bx the Single Audit Act Amendments of 1996, OMB Circular A-133 and Ne,a Jersey Circular 98-07, our-at~dit will include tests of transactions related to federal and/or state award progS'ams lbr compliance with applicable lax~s and regulations and thc provisions ot'contracts and grant agreements. However, because of the concept of reasonable assuraucc and because ~e will not perform a detailed examination of all transactions, there is a risk that material errors, fraud or illegal acts may exist and not be detected b5 tls. l lowcvcr, we will inlbrm you of any material errors and any fraud that comes to our attention. We will als(> intbrm xou of anx other illegal acts that come to our attention, unless clcarlv inconsesluential. Wc will include suc?i matters in tine reports required lbr a single audit. ()ur responsibility as auditors is limited to thc pcr~od covered b~ our audit and does not extend to matters that mmht arise durme any later periods Inr x~hicb we are not engaged as auditors. x,~,c understand that xou ~xill proxidc tls with thc basic inlbrmation required for our audit and tlnat xou are responsible lbr thc'accuracy and completeness of thai in~bnnalion. We will advise you about ~q*prnpriate accounting principles mfd their a~plication and will assist in tine preparation of you~ financial stutements, but thc r~sponsibility lbr the hnancial statements remains x~ith sou. This rcsponsibilit5 includes thc establishment and maintcnancc of adequate records and related cbntrols, the selection and application of accounting principles, and thc safbguarding of assets. Managcmcnt is also responsible lbr idcntil}'ing and ensuring that thc cntit> complies with applicable laws and regulations and the provisions of contracts and grant agreements. 'Iht xxorkpapcrs for tiffs engagement arc thc property of l~erch, Vinci & I liggins and constitute confidential inlbnnalkm. Howcvcr. wc nm> be requcstcd to make certain workpapcrs available to tine I)~v~slon o~ Local Goxemment Serv'ccs pm'st ant to aul ~ ~r'tv givcn to it b> la~ or regulation. If requested access to such x~orkpapcrs will be provided under thc supe['vision of Lurch, Vine & II gg ns' per~,o I-urthcrmor¢. upon request, wc may provide photocopies ol selected workpapers to thc Division ol Ix)cai (Sovcrnmcnt Services. The Divisic;n or' LocalGoxernment Services may intend or decide to distribute the photucopics or in~brmation contained tlnerein to othcrs, including otlner govcmmental agencies. -4- ()ur lbe lbr these scrxiccs vdlI bc based on thc actua time spent at our staadard murl3 rates, plus an3 other out-ol2pockcl costs such as mailing anti poslagc O[ r standa-d ~our dcurcc of rcsponsibilit} involxed and the experience eve o'l~c pets( nqc 5ss gncd ldvour atd Our invoices tbr mis ~e will be rendered cacb month as work progresses a ~d a'c paw b c Our Ibc tbr the prcviousl3 described serx ices will be $30,000. Should anx additional matters come to our attention xqficb will rcqt re t s t( e ]arge thc scoj)e of thc engagement. We x~dl discuss the matter as well as tbe cost estimate ~th thc govern ~ body m-lOt to commencemenl of the work. Also. anx matters pcrlbrmcd on behalf of the Borough not ~oxerCd'b> this engagcnlent [citer will be billed out based on om' standard billing rates. Our standard billing rates tbr 1999 arc as lbllows: Partners Managers Seniors Staff Accountanls Other Personnel $115 - $140 per hour $ 95 - $110 per hour $ 80- $ 95 per hour $ 65 - $ 80 per hour $ 45 per bout (Jm,er,,tc~t :ludifi~z,~,, 5'ia~dards - 1994 Rexision requires that ~c pro~idc 5ou xdth a cop> of our most rcccm qualit> control rcxiex~ rcporl. Our 1997 peer rcv~ex~ repeal accompanic~ this letter. ~tc appreciate the opportunity to be of serxicc to thc Borough o ~ Cmxcret and be eve fl~is letter accuratcl5 summarizes the ~?fificanf tctqns el'our engagement. If you ha~e any quest ohs, please et us knox,, if > ou agree with thc terms of our engagement as described ih this letterfplcase sign the enclosed copx alld l'eturB It to us. ~ iJ~RCIL VINCI & Certified Public Accountants This letter correctly sets lbrth the understanding of thc Borough of Carterct. I'itle: Date: January 19, 1999