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HomeMy Public PortalAboutPRR 20-2816 Renee Basel From:Morgan Murphy <mbmurphy@cricpa.com> Sent:Monday, October 12, 2020 2:44 PM To:Rita Taylor Subject:RE: Public Records Request - Town of Gulf Stream \[NOTICE: This message originated outside of the Town of Gulfstream -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.\] Hi Ms. Taylor, I’m just follow-up on my request below? Thanks, Morgan Stay in the loop with CRI! Be sure to check out our events calendar for up-to-date information on all of the firm’s upcoming webinars and events. Morgan Murphy Carr, Riggs & Ingram, LLC 33 Southwest Flagler Avenue Stuart, FL 34994 Voice: 772-283-2356, ext 2609 Fax: 772-287-1887 CRIcpa.com ************************************************************************************************** The information contained in this message may be privileged and confidential and protected from disclosure. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged or confidential or otherwise legally exempt from disclosure. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to the message and deleting it from your computer. Thank you. Carr, Riggs & Ingram, LLC. _____________________________________________ Stay in the loop with CRI! Be sure to check out our events calendar for up-to-date information on all of the firm’s upcoming webinars and events. The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location. Morgan Murphy Carr, Riggs & Ingram, LLC 33 Southwest Flagler Avenue Stuart, FL 34994 Voice: 772-283-2356, ext 2609 1 Fax: 772-287-1887 CRIcpa.com ************************************************************************************************** The information contained in this message may be privileged and confidential and protected from disclosure. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged or confidential or otherwise legally exempt from disclosure. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to the message and deleting it from your computer. Thank you. Carr, Riggs & Ingram, LLC From: Morgan Murphy Sent: Thursday, September 10, 2020 6:15 PM To: 'rtaylor@gulf-stream.org' <rtaylor@gulf-stream.org> Subject: Public Records Request - Town of Gulf Stream Hi Ms. Taylor, I would like to make a public records request for a copy of the Town’s current auditing service agreement as well as the last RFP and the proposals received for it? Thanks, Morgan 2 TOWN OF GULF STREAM PALM BEACH COUNTY, FLORIDA Delivered via e-mail October 13, 2020 Morgan Murphy [mail to: mbmurphy@cricpa.com] Re: GS #2816 (Auditing service agreement) I would like to make a public records request for a copy of the Town’s current auditing service agreement as well as the last RFP and the proposals received for it. Dear Morgan Murphy [mail to: mbmurphy@cricpa.com]: The Town of Gulf Stream has received your public records request October 12, 2020. You should be able to view your original request and response at the following link: https://portal.laserfiche.com/Portal/DocView.aspx?id=173473&repo=r-430100cc We consider this request closed. Sincerely, Reneé Rowan Basel As requested by Rita Taylor Town Clerk, Custodian of the Records Town of Gulf Stream Annual Audit Services RFP #20-01 Bid Opening, March 20, 2020 @ 2:00PM BID TABULATION Company Company Name & Address Representative Phone # Amount Nowlen, Holt & Miner Ron Bennett 561.659.3060 Total Five yr. = $85,000 1 yr. $16,000 515 N. Flagler Drive 2 yr. $16,500 Suite 1700 Option: One-time initial ADA 3 yr. $17,000 PO Box 347 Compliant Digital Contract = $1,500 4 yr. $17,500 West Palm Beach FL 33402 5 yr. $18,000 Grau & Associates Racquel 561.994.9299 Total Five yr. = $75,000 1 yr. $14,000 951 Yamato Road McIntosh, VP 2 yr. $14,500 Suite 280 Option: ADA Compliant Digital 3 yr. $15,000 Boca Raton FL 33431 Format = $450-$500 4 yr. $15,500 5 yr. $16,000 MINUTES OF THE AUDITOR SELECTION COMMITTEE MEETING OF THE TOWN OF GULF STREAM ON WEDNESDAY, JULY 29, 2020 AT 2:00 P.M. IN THE WILLIAM F. KOCH, JR. COMMISSION CHAMBERS OF THE TOWN HALL, 100 SEA ROAD, GULF STREAM, FLORIDA. THIS MEETING OF THE AUDITOR SELECTION COMMITTEE WAS CONDUCTED USING COMMUNICATIONS MEDIA TECHNOLOGY. I. CALL TO ORDER Chairman Lyons called the meeting to order at 2:00 P.M. II. ROLL CALL Present and Participating: Paul A. Lyons Chairman & Town Commissioner Tracey Stevens Ocean Ridge Town Manager Linda Stumpf Manalapan Town Manager Edward Nazzaro Asst. Town Attorney Also Present & Observing: Gregory Dunham Town Manager Rita Taylor Town Clerk III. EVALUATE, RANK AND RECOMMEND PROPOSALS Chairman Lyons thanked everyone for attending and expressed his appreciation to everyone for being able to move the meeting from the originally scheduled date of July 23, 2020 due to an emergency he had to tend to. He stated the purpose of the meeting was to evaluate and rank the two firms that sent in proposals and to make a recommendation to the Commission. Chairman Lyons stated the town staff, as part of the due diligence process, called references and did some independent research and those findings were shared with each committee member. Committee Member Stumpf stated she used the evaluation form and ranked the two proposals very similar but had two areas of concern regarding Grau & Associates. She ranked Grau lower than Nowlen, Holt and Miner on the availability of key personnel stating that her concern was the hours proposed to perform the audit were much lower than Nowlen, Holt and Miner. Ms. Stumpf added she knew Nowlen, Holt and Miner had been doing the Town's audits so they had a general idea of how long it takes to do the audit and felt that Grau & Associates had underestimated the amount of time it would take, especially as a new auditor for the Town. Ms. Stumpf ranked them lower on office location and the number of CPA's available to the Town with Nowlen, Holt and Miner having much more experience. She added that Grau's hourly rates were much higher than Nowlen, Holt and Miner and the number of hours to perform the audit was significantly different. Ms. Stumpf asked CFO Tew if the digital was included in the bid because she didn't see it in the price structure to which CFO Tew answered that it was optional, so it wasn't included in the bid. Ms. Stumpf stated she ranked Grau & Associates with a score of 90 out of 100 and Nowlen, Holt and Miner with a score of 96. Committee Member Stevens stated that her comments were going to be almost a carbon copy of Ms. Stumpf. The first thing that stood out Minutes of the Audit Selection Committee Meeting Held July 29, 2020 @ 2:00 P.M. to her under qualifications/experience on the evaluation form was that Nowlen, Holt and Miner was going to assign a partner full-time and Grau & Associates was going to have a partner available for technical assistance. She agreed with Ms. Stumpf's findings that Nowlen, Holt and Miner had more CPA's on staff. Ms. Stevens stated that even though the overall bid came in lower with Grau, she was looking at the hourly rates, and those were lower at Nowlen, Holt and Miner. She added that Grau had a big client list and was concerned they may not be able to provide the adequate personnel and believed the hours were underestimated from Grau & Associates. Ms. Stevens stated it wasn't clear in Grau's proposal whether they had ever had any litigation but showed no litigation for the past three years whereas Nowlen, Holt and Miner had never had any litigation. She added that it looked like Grau's proposal was only a 90-day proposal, which meant it would be expired. Ms. Stumpf interjected that she thought the same thing and wondered if the numbers were still accurate. Ms. Stevens stated her ranking for Grau & Associates was 94 out of 100 and Nowlen, Holt and Miner was a 99. Chairman Lyons stated he didn't have any more insight to the comments Ms. Stump and Ms. Stevens had made but added that he believed the overall depth of experience of Nowlen, Holt and Miner was stronger than Grau. Mr. Lyons stated the allocation of key personnel was better at Nowlen, Holt and Miner and agreed with the ladies on the hourly rates being drastically different. Mr. Lyons ranked Grau and Associates at 88 out of 100 and Nowlen, Holt and Miner a 94. He added that with the consensus of the committee and the evaluation rankings, Nowlen, Holt and Miner was who the Auditor Selection Committee would recommend to the Commission. IV. ADJOURNMENT Chairman Lyons adjourned the meeting at 2:12 P.M. Renee Basel Assistant Town Clerk NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS EVERETT 8. NOWLEN (1930-1984), CPA EDWARD T. HOLT. CPA WILLIAM B. MINER. RETIRED HOBERT W. HENDRIX. JR.. CPA W EST I'ALM REACH D191CI1 JANET R BARICEVICH. RETIRED. CPA NORTI IIIRIh(111:NTRI, CVI:. TERRY L. MORTON, JR.. CPA 515 N. 11 ACLER URI'. XI IITF. 17410 N RONALD BENNETT, CVA. ABV, CFF. CPA ALEXIA G. VARGA, CFE. CPA POST OFFICE BOX 347 EDWARD T. HOLT. JR.. PFS. CPA WEST PALM 11LAC II. FLORIDA 13402-0347 BRIAN J. BRESCIA. CFF-, CPA TI it .ISI'I IONI `. 1561 1659.106 I I'AX 15611 835-0628 W W W.N11MC PA.CY1R1 --" MARK J. BVMASTER, CFE, CPA RYAN M. SHORE. CFF-, CPA WEI PAN. CPA September 3, 2020 WILLIAM C KISKER. CPA BELLE GLADE OFFICE 333 S.E. 2nd STREET POST OFFICE BOX 338 BELLE GLADE, FLORIDA 33430-0338 TELEPHONE (561) 996.5612 The Honorable Mayor, Members of the Town FAX (561) 996.6248 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, 2020. We will examine the Town of Gulf Stream, Florida's compliance with Section 218.415, Florida Statutes during the fiscal year ended September 30, 2020. 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, 2020, 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 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. 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, 2020. 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. — hu�A 1-<� Gregory L. I)XdVabi, Town Manager Date: �o�✓ NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS W'LST I ALM IILACII 011 ]('1% NI I:iTH BI I X 8: CF.NTRF. iIj N.I I A(B.I i11 URIVI.. SUITI. 170) 1'OST(H Il(91 BOX 347 X\ I 1 I A I %I III A(11. 1 1 OR I DA 33402-0347 TI I I.I'II()N) 560659-101`,0 I AS ISG I K3S-IV,2K W W W. N I I M('I'A.COM September 3, 2020 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 1934). CPA EDWARD T HOLT. CPA WILLIAM B. MINER, RETIRED ROBERT W. HENDRIX. JR . CPA JANET R BARICEVICH, RE TIRED. 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 BYMASTER. CFE CPA RYAN M. SHORE. CFP" CPA WEIPAN. CPA WILLIAM C. KISKER, CPA BELLE GLADE OFFICE 333 S.E.2nd STREET POST OFFICE BOX 338 BELLE GLADE, FLORIDA3343G-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, 2020. We will examine the Town of Gulf Stream, Florida's compliance with Section 218.415, Florida Statutes during the fiscal year ended September 30, 2020. 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, 2020, 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 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. 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, 2020. 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, N. 94-7%{d 1iz9vrua Nowlen. llolt & Miner, P.A. RESPONSE: This letter correctly sets forth the understanding of the Town of Gulf Stream. Florida. mow Gregory L. Du a , Town Manager Date: 9/g%Zo-0 2 NOWLEN, HOL'T & MINER, P.A. f tl, - c, CERTIFIED PUBLIC ACCOUNTANTS EVERETT B NOWLEN (193GA994). CPA EDWARD T. HOU, CPA _ WILLIAM B. MINER, RETIRED ROBERT W. HENDRIX. JR., CPA WI:SL I'AI.NI BEACH 011 ICI JANET R. BARICEVICH. RETIRED. CPA NUI2THHR11 )(iIS CENTRE TERRYL MORTON.JR.CPA 515 N. IORTH A(d III2 DRID61 V P:, tiTRE 171111 N. RONALD BENNETT. CVA. ABV. CFF, CPA ALEXIA G. VARGA, CFE CPA POS IOI11('I! BOX 347 EDWARD T HOLT. JR_ PFS. CPA W liti"F PALM III'ACH. I I ON II )A 13402-I347 BRIAN J. BRESCIA. CFP^, CPA '1 1 i1 I f I'11ONI'. 1561) 09-1060 1-AX (5611835-0628 WW W.NIIM('VA.COM MARK J. SYMASTER, CFE. CPA RYAN M. SHORE CFP°. CPA September 3, 2020 WEI PAN. CPA WILLIAM C. KISKER, CPA The Honorable Mayor, Members of the Town BELLE GLADE OFFICE Commission, and Town Manager 333 S.E. 2nd STREET POST OFFICE BOX 338 Town Gulf Stream BELLE GLADE. FLORIDA 33430-0338 of TELEPHONE (561) 996-5612 100 Sea Road FAX (561) 996.6248 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, 2020 with an option to renew for the years ended September 30, 2021, 2022, 2023, and 2024. We will audit the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information, 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, 2020. 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: l) 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 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 Requiremenis_for Federal Awardv (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 Uniforn-i 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 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 waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting waste or 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, an unavoidable risk exists that some 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 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. 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 3 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 [Name of Governmental Unit] '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. Tile Unifonn 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 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. For federal programs that are included in the OMB Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the OMB Compliance Supplement identifies as being subject to audit. For state projects that are included in State Projects Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the State Projects Compliance Supplement identifies as being subject to audit. 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 and the Uniform Guidance 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 4 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 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 objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurance that goverment 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 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, including identification of all related parties and all related -party relationships and transactions, (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 confinning 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 of each opinion unit 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 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 Uniforni 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 infonmation. 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, perfonmance 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. 0 You agree to assume all management responsibilities relating to the financial statements, annual financial report to be tiled 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 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 7 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, P.A. are solely the obligations of Nowlen, Holt & Miner, P.A. 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 April 15th. 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 $16,000. 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 for the Single Audit. If the contract extension is approved, our fees for the financial statement audits will be as follows: Fiscal Year Ending September 30, 2021 $16,500 Fiscal Year Ending September 30, 2022 $17,000 Fiscal Year Ending September 30, 2023 $17,500 Fiscal Year Ending September 30, 2024 $18,000 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 suininarizes 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, N- Nowlen, Holt & Miner, P.A. RESPONSE: This letter correctly sets forth the understanding of the Town of Gulf Stream, Florida. Gregory L. n am, Town Manager S/ or an, M or Date: �Q Date) o L NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS EVERETT B NOWLEN (193619B4). CPA EDWARD T. HOLT. CPA WILLIAM B. MINER. RETIRED ROBERT W. HENDRIX. JR.. CPA W LS1 I'ALM IWACH 01 110E JANET R. BARICEACH, RETIRED, CPA NO )RTHHRID(8'('II NTRF FERRY MORTON, JR. CPA S 15 N. PI AGI.I iR URIVH. SCITI. PIN) N RONALD BENNETT, CVA. ABV, CFF. CPA POST OFFICE HOX 147 ALEXIA G. VARGA. CFE. CPA WEST PALM IWACII.I I IIRIPA 314112-0147 EDWARD T. HOLT. JR , PFS. CPA BRIANJ BRESCIA CFP°, CPA TP.1.I I11I0NI 156I 1 659 IDW I AX I561 I 8150628 W W\V, N I I \I('I'AA'1)\1 MARK J. BYMASTER.CFE, CPA RYAN M SHORE. CFP^. CPA September 3, 2020 I PAN CPA WILLIAM C KESKER. CPA The Honorable Mayor, Members of the Town BELLE GLADE OFFICE Commission, and Town Manager 333 S.E. 2nd STREETPOST OFFICE BOX 338 Town of Gulf Stream BELLE GLADE, FLORIDA33430-0338 TELEPHONE (561) 996-5612 100 Sea Road FAX (561) 996-6248 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, 2020 with an option to renew for the years ended September 30, 2021, 2022, 2023, and 2024. We will audit the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information, 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, 2020. 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 partof 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 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. 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. 11 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 waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting waste or 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, an unavoidable risk exists that some 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 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. 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 c3 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 [Name of Governmental Unit] '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 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' Slate 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. For federal programs that are included in the OMB Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the OMB Compliance Supplement identifies as being subject to audit. For state projects that are included in State Projects Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the State Projects Compliance Supplement identifies as being subject to audit. 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 and the Uniform Guidance 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 4 accordance with applicable professional standards. The other services are limited to the financial statements, annual financial report to be tiled with the Florida Department of Financial Services, schedule of expenditures of federal awards, 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 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 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, including identification of all related parties and all related -party relationships and transactions, (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 of each opinion unit 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 5 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); 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 fonnat for providing that information. C91 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 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, Dolt & 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 7 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, P.A. are solely the obligations of Nowlen, Holt & Miner, P.A. 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 April 15th. 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 $16,000. 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 deterniined that additional work is required, a fixed fee will be agreed to before any work is performed for the Single Audit. If the contract extension is approved, our fees for the financial statement audits will be as follows: Fiscal Year Ending September 30, 2021 $16,500 Fiscal Year Ending September 30, 2022 $17,000 Fiscal Year Ending September 30, 2023 $17,500 Fiscal Year Ending September 30, 2024 $18,000 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, N• R-vn� L�wru� Nowlen, Holt & Miner, P.A. RESPONSE: This letter correctly sets forth the understanding of the Town of Gulf Stream. Florida. Gregory unham, Town Manager Sc W. rgan, ayor Date: