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HomeMy Public PortalAboutR 98:006No. 98-6 Date ol Adoption. J~.l'qIL, l~uqY 1: 1998 RESOLUTION #98-6 APPOINTING A MUNICIPAL AUDITOR FOR THE YEAR 1998 WHEREAS, there exists a need for a Registered Municipal Accountant of the State of New Jersey; and WHEREAS, funds are available for this purpose; and WHEREAS, the Local Public Contracts Law (NJ.SA 40A:I 1-1 et seq.) requires that the resolution authorizing the award of contracts for "Professional Services" without competitive bids must be publicly advertised; NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Borough of Carteret as follows; 1. Lerch, Vinci ~, Hig§ins , Registered Municipal Accountants of the State of New Jersey are hereby appointed Municipal Auditor for the Borough of Carteret for the year 1998. 2. That they shall in addition to preparing the annual audit in accordance with the statutory requirement assist in the preparation of the 1998 Municipal Budget and attend all conferences and meetings requested by the Governing Body regarding the 1998 budget. 3. Said appointment is awarded without competitive bidding as a Professional Service under the provisions of the Local Public Contracts Law because a Certified Public Accountant is a recognized profession licensed and regulated by Law. 4. For the performance ofthe aforesaid services, Lerch, Vinci & Higgins be paid an annual fee of $ 30,00000 5. A notice of this action shall be published in The Home News and Tribune as required by law on January 7, 1998. Adopted this 1st day of January, 1998 and certified as a true copy of the original on January 2, 1998. KATHLEEN M. BARNEY, RECORD OF COUNCIL VOTE X Indicate Vote AB - Absent NV - Nol Voting XOR - Indicates Vole to Overrule Veto $ j Adopled at a meeting of the Municipal Council dlarntary 17 1998 LERCH, VINCI & HIGGINS CERTIFIED PUBLIC ACCOUNTANTS REGISTERED MUNICIPAL ACCOUNTANTS 17 17 RO[JTE 208 FAIR LAWN. NJ 07410 '~ (201)791 7100 DiEfER p LERCH CPA, RMA. pSA FACSIMILE(201) 791-3035 ELIZABElll A SHICK CP'\ RMA, ['SA G~RY J VINCI. CPA RMA PSA , i , ANNETTE E GIORi)ANO CPA RMA January 13, 1998 Honorable Mayor and Members of the Borough Council Borough of Carteret 61 Cooke Avenue Carteret, New Jersey 07008 Dear Governing Body: We are pleased to confirm our understanding of the services we are to provide for the Borough of Carteret for the year ended December 31, 1998. We will audit the financial statements of the Borough of Carteret as of and for the year ended December 31, 1998. In addition, we propose to timely complete the following additional services that will not be subjected to the auditing procedures applied in our audit of the financial statements: o Review of the Unaudited Annual Financial Statement for the year ended December 3]., 1998 o Review and certification of the 1998 Annual Budget Our audit will be a Single Audit made in accordance with generally accepted auditing 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; and the provisions of OMB Circular A-i33, "Audits of S~ates, Local Governments and Non-Profit Organizations" and the provisions of New Jersey Circular 98-07, and will include tests of the accounting records of the Borough and other procedures we consider necessary to enable us to express an unqualified opinion that the financial statements are fairly presented, in all material respects, in conformity with accounting principles and practices as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, and to report on the schedules of expenditures of federal and/or state awards and the Borough's compliance with laws and regulations and the provisions of contracts and grant agreements and its internal controls as required for a Single Audit. If our opinion is other than unqualified, we will fully disclose the reasons in our report. -2- The management of the Borough of Carteret is responsible for establishing and maintaining internal control. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management.s authorizations and recorded properly to permit the preparation of financial statements in accordance with accounting principles and practices as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, and that federal and state award programs are managed in compliance with applicable laws and regulations and the provisions of contracts and grant agreements. In planning and performing our audit for the year ended December 31, 1998, we will consider the internal control in order to determine our auditing procedures for the purpose of expressing our opinions on the .Borough's financial statements and on its compliance with requzrements applicable to major programs and to report on internal control in accordance with OMB Circular A-133 and New Jersey Circular 98-07, and not to provide assurance on the internal control. We will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed. We will perform tests of controls, as required by OMB Circular A- 133 and New Jersey Circular 98-07, to evaluate the effectiveness of the design and operation of controls that we considered relevant to preventing or determining material noncompliance with compliance requirements, applicable to each of the Borough.s major federal and/or state award programs. Our tests will be less in scope than would be necessary to render an opinion on these controls and, accordingly, no opinion will be expressed. We will inform you of any matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control that, in our judgement, could -3- adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. We will also inform you of any nonreportable conditions or other matters involving internal control, if any, as required by OMB Circular A-133 and New Jersey Circular 98-07. Compliance with laws, regulations, contracts and grant agreements applicable to the Borough of Carteret is the responsibility of the Borough's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the Borough's compliance with applicable laws and regulations and the provisions of contracts and grant agreements. However, the objective of our audit will not be to provide an opinion on overall compliance with such provisions, and we will not express such an opinion. Our audit will be conducted in accordance with the standards referred to in the third paragraph. OMB Circular A-133 and New Jersey Circular 98-07 require that we plan and perform the audit to obtain reasonable assurance about whether the Borough has complied with applicable laws and regulations and the provisions of contracts and grant agreements. Our procedures will consist of the applicable procedures described in the Circulars' compliance supplements. The purpose of our audit will be to express an opinion on the Borough's compliance with requirements applicable to major programs. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representation 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 also request certain written representations from you about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgement about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. As required by the Single Audit Act Amendments of 1996, OMB Circular A-133 and New Jersey Circular 98-07, our audit will include tests of transactions related to federal and/or state award programs for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. However, because of the concept of reasonable assurance and because we 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 by us. However, we will inform you of any material errors and any fraud that comes to our attention. We will also inform you of any other illegal acts 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 matters that might arise during any later periods for which we are not engaged as auditors. We understand that you will provide us with the basic information ' ed for our audit and that you are responsible for the accuracy and requ~r ..... ~rmation We will advise you about appropria}e co p .... ~ ~ a~lication and will assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsibility includes the establishment and maintenance of adequate records and related controls, the selection and application of accounting principles, and the safeguarding of assets. Management is also responsible for identifying and ensuring that the entity complies with applicable laws and regulations and the provisions of contracts and grant agreements. The workpapers for this engagement are the property of Lerch, Vinci & Higgins and constitute confidential information. However, we may be requested to make certain workpapers available to the Division of Local Government Services pursuant to authority given to it by law or regulation. If requested, access to such workpapers will be provided under the supervision of Lerch, Vinci & Higgins' personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to the Division of Local Government Services. The Division of Local Government Services may intend or decide to distribute the photocopies or information contained therein to others, including other governmental agencies. Fees Our fee for these services will be based on the actual time spent at our standard hourly rates, plus any other out-of-pocket costs such as mailing and Dostage. Our standard hourly rates vary according to the degree of r~sponsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable upon presentation. Our fee for the previously described services will be $30,000. Should any additional matters come to our attention which will require us to enlarge the scope of the engagement, we will discuss the matter as well as the cost estimate with the governing body prior to commencement of the work. Also, any matters performed on behalf of the Borough not covered by this engagement letter will be billed out based on our standard billing rates. Our standard billing rates for 1998 are as follows: Partners $115 $140 per hour Managers $ 95 $110 per hour Seniors $ 80 $ 95 per hour Staff Accountants $ 65 $ 80 per hour Other Personnel $ 45 per hour -5- Government Auditinq Standards 1994 Revision requires that we provide you with a copy of our most recent quality control review report. Our 1997 peer review report accompanies this letter. We appreciate the opportunity to be of service to the Borough of Carteret 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. Veryjtrul¥ yours, / ~ J LERCH, VINCI & H ~ . Certified Public Accountants This letter correctly sets forth the understanding of the Borough of Carteret. By:-//?~/~/~ Title: Mayor Date: January 27~ 1998 BOROUGH OF CARTERET 20 coOKE AVENUE CARTERET, NEW JERSEY 07008 Tills AGREEMENT: made this Ist day of January 1997 By and between: Lerch, Vinci & tliggins 17-17 Route 208 Fair Lawn, N. J. 07410 And thc Borough of Carteret, a municipal corporation, having its Principal office at the Borough Hall 61 Cooke Avenue, Carteret, New Jersey, As per Resolution Number 98-6. THE CONTRACTOR does hereby agree to pertbrm the following MUNICIPAL AUDITOR FOR TIlE YEAR 1998. According to the terms set forth in Resolution. THE BOROUGH does hereby agree to pay the _Contractor the sum set tbrtb in Resolution. IN WITNESS WHEREOF, the parties hereto have hereunder set their hands and seals or caused these presents to be signed by their proper corporate officers and their corporate seals to be hereto affixed, the day and year written above. Forj, l~c~o~oratic~ ; B; ~~.c~r~ BOROUGH OF CART p~j. Sica,~,/ ' Mayor K~hleen M. Barney Municipal Clerk Affidavit of Publication Publisher's Fee $14.56 Affidavit Charge $12.50 State of New Jersey } ss. MONMOUTH COUNTY Personally appeared PAT HENEGHAN ~ "~' ' of I-~ome News 'Tribune, a newspaper printed in Freehold NJ and publ~t'ted In NEPTUNE, In said County and State, who being duly sworn, deposeth and ~aith that the advertisement of which the annexed is a true copy, has been published In the said newspaper 1 (ONE} times, once In each Issue, as follows 1/07/98, CO, ~ISSION EX,!RES FEB. 14, 20J(~ Sworn and subscribed t~efore me this ~:~.~_~ .~. ~._ C. / ~ 7th day of January, A.D., 1998 Notary Public of New ~e~rsey ~OROUSH OF CARTERET NOTICE OF CONTRACT AWARDED has awarded a contract without competitive bid- vice pursuant to N J S.A. 40A:11-5 (1) (a) This con authorizin¢ it are available for public ~nspection in the Clerk. Awarded ~o: Lerch, Vinci & Uiggins Services: Borou h Auditor KATHLE EN~/M. BARNEY Municipal Clerk ($14.56) 12443