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.
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CONCHITA H. ALVAREZ, CMC, VILLAGE CL
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APPROVED AS TO FORM AND LEGAL SUFFICIE
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RICHARD JAY WEISS, VILLAGE ATTORNEY
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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:
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