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HomeMy Public PortalAbout2000-42 Authorizing agreement with Rachlin, Cohen & Holtz, LLP for Auditing ServicesRESOLUTION NO. 2000-42 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF KEY BISCAYNE, FLORIDA; AUTHORIZING THE VILLAGE MANAGER TO APPROVE THE ATTACHED AGREEMENT ON BEHALF OF THE VILLAGE WITH RACHLIN, COHEN & HOLTZ, LLP FOR AUDITING SERVICES; PROVIDING FOR AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF KEY BISCAYNE, FLORIDA AS FOLLOWS: Section 1. Rachlin, Cohen & Holtz, LLP will audit the general purpose financial statements of the Village as of and for the fiscal years ended September 30, 2000, and 2001. Section 2. That the objective is 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 authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Section 3. That the Village Manager is hereby authorized to execute the attached Agreement, on behalf of the Village, with Rachlin, Cohen & Holtz, LLP, Certified Public Accountants & Consultants in a letter dated August 7, 2000. Section 4. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 29th day of August , 2000. 4 ,T: A611 CONCHITA H. ALVAREZ, CMC, VILLAGE CL H R' r $4,0 APPROVED AS TO FORM AND LEGAL SUFFICIE kr)-) \"4-(;\ RICHARD JAY WEISS, VILLAGE ATTORNEY • 4,1 MAYOR JOE I. RASCO RCH Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants August 7, 2000 Mr. Sam Kissinger Village Manager Village of Key Biscayne 85 West McIntyre Street Key Biscayne, Florida 33149 Dear Sam: We are pleased to confirm our understanding of the services we are to provide the Village of Key Biscayne (the Village). We will audit the general purpose financial statements of the Village as of and for the fiscal years ended September 30, 2000, and 2001. The objective of our audit is the expression of an opinion as to whether your general purpose financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles. Our audit will be conducted in accordance with generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the Village and other procedures we consider necessary to enable us to express such an opinion. If our opinion on the general purpose financial statements is other than unqualified, we will fully 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 an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. We will also provide reports (that do not include opinions) on internal control related to the financial statements and compliance with laws, regulations, and the provisions or grant agreements, noncompliance with, which could have a material effect on the financial statements as required by Government Auditing Standards. Management is responsible for establishing and maintaining internal control and for compliance with laws, ' agreements. In tlfillin this responsibility/ estimates and judgments by regulations, contracts, and a�;r�.,...,....�s. fl...�_.i...� ...., responsibility, - � � judgments - � = L 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 general purpose financial statements in accordance with generally accepted accounting principles. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. That responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting, the selection and application of accounting principles, and the safeguarding of assets. One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305-377-4228 • Fax 305-377-8331 Offices in: Miami • Ft. Lauderdale • Boca Raton • West Palm Beach • Stuart www.rchcpa.com ----- --- - Member of Summit International Associates, Inc with offices in pnncipal cities throughout the world Member of the Amencan Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Accountants Mr. Sam Kissinger Village of Key Biscayne August 7, 2000 Page 2 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. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. Because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that a material misstatement may exist and not be detected by us. In addition, an audit is not designed to detect errors, fraud, or other illegal acts that are immaterial to the general purpose financial statements. 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. 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. 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, 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 also require certain written representations from you about the financial statements and related matters. Identifying and ensuring that the Village complies with laws, regulations, contracts, and agreements is the responsibility of management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we will perform tests of the Village's compliance with applicable laws and regulations and the provisions of contracts and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. In planning and performing our audit, we will consider the internal control sufficient to plan the audit in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinion on the Village's general purpose financial statements. 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 general purpose 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 general purpose financial statements. (Tests of controls are required only if control risk is assessed below the maximum level.) 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. RCH Mr. Sam Kissinger Village of Key Biscayne August 7, 2000 Page 3 An audit is not designed to provide assurance on internal control or to identify reportable conditions. However, we will inform the governing body or audit committee 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 judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. We understand that your employees will prepare all cash or other confirmations we request and will locate any invoices selected by us for testing. The workpapers for this engagement are the property of Rachlin Cohen & Holtz LLP and constitute confidential information. However, we may be requested to make certain workpapers available to regulatory agencies pursuant to authority given to it by law or regulation. If requested, access to such workpapers will be provided under the supervision of Rachlin Cohen & Holtz LLP personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to the regulatory agency. The regulatory agency may intend, or decide, to distribute the photocopies or information contained therein to others, including other governmental agencies. Our fees for these services are estimated to be $35,000 for the year ending September 30, 2000, and $36,700 for the year ending September 30, 2001. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered as the work progresses and are payable on presentation. In accordance with our Firm's policies, should any invoices remain unpaid for more than 30 days, we reserve the right to defer providing any additional services until all outstanding invoices are paid. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be �� ed during } ,d If '" t t lit > is ne e,:s r it encountered the :ir:uit. significant �: ?>>: ��.i121?� r�_. G., r�, �x P will ? � f: �_, ..,... '., discuss with you and arrive at a new fee estimate before we incur the additional costs. If additional time is necessary due to an increase in the number of funds (i.e., increase in level of services provided by the Village), significant changes in Governmental Accounting Standards Board Pronouncements and other similar matters that are not contemplated by this letter, we will discuss these matters with you prior to commencement of the work. The Village will be required to implement Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis — For State and Local Governments, for the fiscal year ending September 30, 2003. Your auditors need to be involved in the implementation process. As a result, there will be consultation and communication between the Village and Rachlin Cohen & Holtz regarding implementation efforts. We estimate that fees for these services will range from $2,000 to $3,000 depending on the degree and nature of the consultation requested by the Village. Our fees for this engagement will be based on the number of hours at our standard billing rates required to perform these services. Mr. Sam Kissinger Village of Key Biscayne August 7, 2000 Page 4 If the Village is required to have a Single Audit performed in accordance with generally accepted auditing standards; 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; and the provisions of OMB Circular A-133, Audits of States, Local Governments, and Non Profit Organizations, during the periods covered by this letter, we will prepare an addendum to this letter indicating the additional services and fees necessary to complete the engagement. If additional services are required or requested as a result of the Village receiving grant funds under the Florida Appropriations Act, we will prepare an addendum to this letter indicating the additional services and fees necessary to complete the engagement. We appreciate the opportunity to be of continued 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. Sincerely, . Jerry Chiocca, CPA Director - Miami Enclosure APPROVED: This letter correctly sets forth the understanding of Village of Key Biscayne Signed: Title: Date: F:\00\49\49940\Government eng ltr