HomeMy Public PortalAbout2017 Marcum.pdfMARCUM
ACCOUNTANTS ♦ ADVISORS
November 6, 2017
Honorable Mayor and Village Council
c/o John C. Gilbert, Village Manager
Village of Key Biscayne, Florida
88 West McIntyre Street
Key Biscayne, Florida 33149
Re: Contract Extension - Engagement of Marcum LLP
We are pleased to confirm our understanding of the services Marcum LLP ("Marcum," the
"Firm," "we," "us" or "our") are to provide Village of Key Biscayne, Florida (the
"Organization," "you" or "your") for the fiscal year ending September 30 2018. We will audit
the financial statements of the governmental activities, the business -type 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 Village of Key
Biscayne, Florida as of and for the fiscal year ending September 30, 2018 with the option of the
Village to extend this agreement for two (2) one (1) year periods. 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
Village's basic financial statements. Such information, although not 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 Village'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 generally accepted accounting principles and will be subjected to
certain limited procedures, but will not be audited:
1) Management's Discussion and Analysis
2) Schedule of Changes in the Village's Net Pension Liability and Related Ratios
3) Schedule of Village Contributions — Pension
4) Schedule of Investment Returns - Pension
5) Schedule of Changes in the Village's Total OPEB Liability and Related Ratios
6) Budgetary Comparison Schedules
MARCUMGROUP
MEMBER
Marcum LLP • One Southeast Third Avenue • Suite 1100 • Miami, Florida 33131 • Phone 305.995.9600 • Fax 305.995.9601 • www.marcumllp.com
Village of Key Biscayne, Florida
November 6, 2017
Page 2
The following other information accompanying the financial statements will not be subjected to
the auditing procedures applied in our audit of the financial statements, and our auditors' report
will not provide an opinion or any assurance on that other information.
1) Introductory Section
2) Statistical Section
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. Our
audit will be conducted in accordance with auditing standards generally accepted in the United
States of America 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 opinions. We will issue a written report upon completion of our audit of Village's
financial statements. Our report will be addressed to the Honorable Mayor, Village Council and
Village Manager.
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 on the financial statements 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 may withdraw from this engagement.
We will also provide a report (that does not include an opinion) on internal control related to the
financial statements and compliance with provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a material effect on the financial statements
as required by Government Auditing Standards. The reports on internal control and compliance
will each include a paragraph that states (1) that 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 entity's internal control on compliance, and (2) that 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 paragraph will also state that the
report is not suitable for any other purpose. If during our audit we become aware that Village is
subject to an audit requirement that is not encompassed in the terms of this engagement, we will
communicate to management and those charged with governance that an audit in accordance
with U.S. generally accepted auditing standards and the standards for financial audits contained
in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual
requirements,
Village of Key Biscayne, Florida
November 6, 2017
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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 financial
statements. 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 from
(1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of
laws or governmental regulations that are attributable to the Village or to acts by management or
employees acting on behalf of the Village. Because the determination of abuse is subjective,
Government Auditing Standards do not expect auditors to provide reasonable assurance of
detecting 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, there is a risk
that material misstatements 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. 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 and any material abuse that comes to our attention. Our responsibility as
auditors is limited to the period covered by our audit and does not extend to 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 the Village's 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 for the financial statements; compliance with laws, regulations,
contracts, and grant agreements; and other responsibilities required by generally accepted
auditing standards.
Audit Procedures - Internal Controls
Our audit will include obtaining an understanding of the entity 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
Village of Key Biscayne, Florida
November 6, 2017
Page 4
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 in our report on internal control issued pursuant to Government
Auditing Standards.
An audit is not designed to provide assurance on internal control or to identify significant
deficiencies or material weaknesses. 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 and Government Auditing Standards.
Audit Procedures - Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of
material misstatement, we will perform tests of Village's compliance with the provisions of
applicable laws, regulations, contracts, agreements, and grants. 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 our report on compliance issued pursuant to Government Auditing Standards.
Management Responsibilities
Management is responsible for establishing and maintaining effective internal controls, including
evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives
are met; following laws and regulations; and 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 and all accompanying
information in conformity with U.S. generally accepted accounting principles, and for
compliance with applicable laws and regulations and the provisions of contracts and grant
agreements.
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, (2) additional
information that we may request for the purpose of the audit, and (3) 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 for confirming to us in the written representation letter that the effects of any uncorrected
misstatements aggregated by us during the current engagement and pertaining to the latest period
Village of Key Biscayne, Florida
November 6, 2017
Page 5
presented are immaterial, both individually and in the aggregate, to the financial statements taken
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 Village
involving (1) management, (2) employees who have significant roles in internal control, and (3)
others where the fraud or illegal acts 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 entity complies with applicable laws, regulations, contracts, agreements, and
grants for taking timely and appropriate steps to remedy fraud and noncompliance with
provisions of laws, regulations, contracts or grant agreements, or abuse that we report.
You are responsible for the preparation of the 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 or make the audited financial statements readily available to users of
the supplementary information no later than the date the supplementary information is issued
with 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 other 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.
We will provide copies of our reports to Village however, Marcum will distribute the reports to
the Village Mayor, Village Council and Village Manager. Unless restricted by law or regulation,
or containing privileged and confidential information, copies of our reports are to be made
available for public inspection.
Village of Key Biscayne, Florida
November 6, 2017
Page 6
With regard to the electronic dissemination of audited financial statements, including financial
statements published electronically on your website, you understand that electronic sites are a
means to distribute information and, therefore, we are not required to read the information
contained in these sites or to consider the consistency of other information in the electronic site
with the original document.
Management is responsible for the financial statements and all accompanying information as
well as all representations contained therein. As part of the audit, we will assist with preparation
of your financial statements and related notes. These nonaudit/nonattest services do not
constitute an audit under Government Auditing Standards and such services will not be
conducted in accordance with Government Auditing Standards. You agree to assume all
management responsibilities relating to the financial statements and related notes and any other
nonaudit/nonattest services we provide. You will be required to acknowledge in the management
representation letter our assistance with preparation of the financial statements and related notes
and that you have reviewed and approved the financial statements and related notes prior to their
issuance and have accepted responsibility for them. Further, you agree to oversee the
nonaudit/nonattest services by designating an individual, preferably from senior management,
who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of
those services; and accept responsibility for them.
Communication with Those Charged with Governance
As part of our engagement, we are responsible for communicating significant matters related to
the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the
financial reporting process as well as other matters we believe should be communicated to those
charged with governance. Generally accepted auditing standards do not require the auditor to
design procedures for the purpose of identifying other matters to communicate with those
charged with governance. Such matters include, but are not limited to, (1) the initial sc1C;C;tiun of
and changes in significant accounting policies and their application; (2) the process used by
management in formulating particularly sensitive accounting estimates and the basis for our
conclusions regarding the reasonableness of those estimates; (3) all passed audit adjustments; (4)
any disagreements with management, whether or not satisfactorily resolved, about matters that
individually or in the aggregate could be significant to the financial statements or our report; (5)
our views about matters that were the subject of management's consultation with other
accountants about auditing and accounting matters; (6) major issues that were discussed with
management in connection with the retention of our services, including, among other matters,
any discussions regarding the application of accounting principles and auditing standards; (7)
serious difficulties that we encountered in dealing with management related to the performance
of the audit; and (8) matters relating to our independence as your auditors.
Village of Key Biscayne, Florida
November 6, 2017
Page 7
Reproduction of Auditors' Report
If you intend to publish or otherwise reproduce the financial statements and make reference to
our Firm, you agree to provide us with printers' proofs or masters for our review and approval
before printing. You also agree to provide us with a copy of the final reproduced material for
our approval before it is distributed. In addition, to avoid unnecessary delay or
misunderstanding, it is important that you give us timely notice of your intention to issue any
such document.
If the Village elects to issue public debt and not have us associated with the proposed offering.
We agree that our association with the proposed offering is not necessary providing that the
Village agrees to clearly indicate that we are not associated with the contents of any such official
statement or memorandum. The Village agrees that the following disclosure will be prominently
displayed in any such official statement or memorandum.
Marcum LLP has not been engaged to perform, and has not performed, since the date of
its report included herein, any procedures on the financial statements addressed in that
report. Marcum LLP, also has not performed any procedures relating to this official
statement.
Assistance By Your Personnel
We will ask that your personnel, to the extent possible, prepare required schedules and analyses,
and make selected invoices and other required documents available to our staff. This assistance
by your personnel will serve to facilitate the progress of our work and minimize our time
requirements.
You acknowledge that your confidential information may be transmitted to us through an
information portal or delivery system established by us or on our behalf. You shall notify us in
writing of your employees, representatives, or other agents to be provided access to such portal
or system; upon the termination of such status, you shall immediately notify us in writing. You
acknowledge that you are responsible for the actions of your current and former employees,
representatives, or other agents in connection with the transmission of your information.
Background Checks
As a matter of Firm policy, we perform background checks, which may require out-of-pocket
expenses, on potential clients and/or on existing clients, on an as -determined basis. The terms
and conditions of this engagement are expressly contingent upon the satisfactory completion of
our investigatory procedures and we reserve the right to withdraw from any relationship should
information which we deem to be adverse come to our attention. The results of all background
checks and other investigatory procedures are submitted to, and reviewed by, our Firm's Client
Acceptance Committee.
Village of Key Biscayne, Florida
November 6, 2017
Page 8
Independence
Professional standards require that a firm and its members maintain independence throughout the
duration of the professional relationship with a client. In order to preserve the integrity of our
relationship, no offer of employment shall be discussed with any Marcum professionals assigned
to the audit, including within the one year period prior to the commencement of the year-end
audit. Should such an offer of employment be made, or employment commences during the
indicated time period, we will consider this an indication that our independence has been
compromised. As such, we may be required to recall our auditors' report due to our lack of
independence. In the event additional work is required to satisfy independence requirements,
such work will be billed at our standard hourly rates. Furthermore, we strive to staff your
engagement with quality, superbly trained professionals. In recognition of the extensive
investment we have made to recruit and develop our personnel, we ask that you agree to the
following. In the event that any of our employees accepts a position of employment with your
Organization, or any of its related parties at any time while we are performing services for you or
within one year thereafter, you agree to pay us a placement fee equal to the employee's annual
compensation in effect on the date such employment was contracted. Such fee is payable when
the employee accepts such a position.
Access to Working Papers
The working papers prepared in conjunction with our engagement are the property of Marcum
and constitute confidential information subject to the Public Records Laws of the Florida
Statutes. These working papers will be retained by us in accordance with applicable laws and
with our Firm's policies and procedures. However, we may be required, by law or regulation, to
make certain working papers available to regulatory authorities for their review, and upon
request, we may be required to provide such authorities with photocopies of selected working
papers.
The Firm is required to undergo a "Peer Review" every three years. During the course of a Peer
Review engagement, selected working papers and financial reports, on a sample basis, will be
inspected by an outside party on a confidential basis. Consequently, the accounting and/or
auditing work we performed for you may be selected. Your signing this letter represents your
acknowledgement and permission to allow such access should your engagement be selected for
review.
As a result of our prior or future services to you, we may be required or requested to provide
information or documents to you or a third -party in connection with a legal or administrative
proceeding (including a grand jury investigation) in which we are not a party. If this occurs, we
shall be entitled to compensation for our time and reimbursement for our reasonable out-of-
pocket expenditures (including legal fees) in complying with such request or demand. This is
not intended, however, to relieve us of our duty to observe the confidentiality requirements of
our profession.
Village of Key Biscayne, Florida
November 6, 2017
Page 9
Third -Party Service Providers
The Firm may, from time to time, and depending on the circumstances, use third -party service
providers to assist us with the audit of your financial statements. We may share confidential
information about you with the third -party service providers, but remain committed to
maintaining the confidentiality of your information. Accordingly, we maintain internal policies,
procedures and safeguards to protect the confidentiality of your information. Furthermore, the
Firm will remain responsible for the work performed by such third -party service providers.
Dispute Resolution Procedure, Waiver of Jury Trial and Jurisdiction and Venue for Any
d...; All Disputes Under This Engagement Letter and Governing Law
AS A MATERIAL INDUCEMENT FOR US TO ACCEPT THIS ENGAGEMENT
AND/OR RENDER THE SERVICES TO THE ORGANIZATION IN ACCORDANCE
WITH THE PROVISIONS OF THIS ENGAGEMENT LETTER:
This Firm and the Organization each hereby knowingly,
waive any right either may have to a trial by jury with respect to any litigation based
hereon, or arising out of, under or in connection with this engagement letter and/or the
services provided hereunder, or any course of conduct, course of dealing, statements
(whether verbal or written) or actions of either party. This Firm and the Village each
Jaat the Circuit Court of the Il rh Judicial Circuit, in
and for the Miami -Dade County, Florida, and the United States District Court for the
Southern District of Florida, shall each have exclusive and sole jurisdiction and venue
for any respective state or federal actions arising from, relating to or in connection
with this engagement letter, or any course of conduct, course of dealing, statement or
actions of either party arising after the date of this engagement letter
The terms and provisions of this engagement letter, any course of conduct, course of
dealing and/or action of this Firm and/or the Organization and our relationship with
you shall be governed by the laws of the State of Florida to the extent said laws are not
inconsistent with the Federal Securities Laws and Rules, Regulations and Standards
there under. In any litigation brought by either this Firm or the Organization, the
prevailing party shall be entitled to an award of its reasonable attorneys' fees and costs
incurred, including through all appeals.
We acknowledge your right to terminate our services at any time, and you acknowledge our right
to resign at any time (including instances where in our judgment, our independence has been
impaired or we can no longer rely on the integrity of management), subject in either case to our
right to payment for all direct and indirect charges incurred through the date of termination or
resignation or thereafter as circumstances and this agreement may require, plus applicable
interest, costs, fees and attorneys' fees.
Village of Key Biscayne, Florida
November 6, 2017
Page 10
No action, regardless of form, arising out of the services under this agreement may be brought by
either party more than one year after the date of the last services provided under this agreement.
The Village hereby indemnifies Marcum and its partners, principals, and employees, and holds
them harmless from all claims, liabilities, losses, and costs arising in circumstances where there
has been a known or intentional misrepresentation by a member of the Village's
management, regardless of whether such person was acting in the Village's interest. This
indemnification will survive termination of this letter of engagement.
Other Services
We will perform, in accordance with Chapter 10.550, Rules of the Auditor General of the State
of Florida, an examination pursuant to AICPA Professional Standards, promulgated by the
American Institute of Certified Public Accountants regarding the compliance of the Village's
with 218.415, Florida Statutes, Local Government Investment Policies. There is no additional
cost for this service.
If the Village is required to undergo a single audit in accordance with the Federal Single Audit
Act Amendments of 1996 and the provisions of the Uniform Guidance or Florida Single Audit
in accordance with the Florida Single Audit Act and Chapter 10.550 Rules of the Auditor
General of the State of Florida, we will discuss with you the additional fees which will be
dependent on the number of programs determined to be a major program based on the
determination required by the Single Audit Acts. Also, a new engagement letter will have to be
provided that meets the requirements of the Federal 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 the
Florida Single Audit Act and Chapter 10.550, Rules of the Auditor General of the State of
Florida.
We are always available to meet with you and/or other management personnel at various times
throughout the year to discuss current business, operational, accounting and auditing matters
affecting your Organization. Whenever you feel such meetings are desirable please let us know;
we are prepared to provide services to assist you in any of these areas. We will be pleased, at
your request to attend your Council meetings.
Timeline
Our engagement ends on delivery of our audit report. Any follow-up services that might be
required will be a separate, new engagement. The terms and conditions of that new engagement
will be governed by a new, specific engagement letter for that service.
Village of Key Biscayne, Florida
November 6, 2017
Page 11
Fees
Our fee for these services will be based on the actual time spent at our discounted rates. Our
discounted hourly rates vary according to the level of the personnel assigned to your
engagement. Our invoices for these fees will be rendered as the work progresses, and are due
and payable upon presentation. In the event that you dispute any of the fees or expenses on a
specific invoice, you agree to notify us within twenty (20) days of receipt of the invoice of such
dispute. If you fail to notify us within the twenty (20) day period, your right to dispute such
invoice will be waived. Prior to the commencement of the services described above, any past due
balances are required to be paid in full. In accordance with our Firm policies, should any invoice
remain unpaid for more than thirty (30) days, we reserve the right to defer providing any
additional services until all outstanding invoices are paid in full. Amounts past due sixty (60)
days from the invoice date will incur a finance charge of 1% per month. Nothing herein shall be
construed as extending the due date of payments required under this agreement, and you agree
that we are not responsible for the impact on the Company of any delay that results from such
non-payment by you.
As a result of our planning process, we believe that the above described professional services can
be completed for an estimated fee of $59,750 for the fiscal year ended September 30, 2018 (same
fee as fiscal years 2016 and 2017). If the Village elects to extend the agreement for financial
audit professional services for fiscal years ending September 30, 2019 and 2020 (the option
years), our fees will be $63,000 for each year (excluding any Federal and State single audit
requirements). The estimate of our fee is based on certain assumptions, including the required
assistance described above. To the extent that certain circumstances including, but not limited to
those listed in Appendix A, arise during the engagement, our fee estimate may be significantly
affected and additional fees may be necessary. Additional services provided beyond the
described scope of services will first be discussed with you.
Agreement
This letter comprises the complete and exclusive statement of the agreement between the parties,
superseding all proposals oral or written and all other communications between the parties. If
any provision of this letter is determined to be unenforceable, all other provisions shall remain in
force.
It is hereby understood and agreed that this engagement is being undertaken solely for the benefit
of the Village and that no other person or entity shall be authorized to enforce the terms of this
engagement.
If you agree with the terms of our engagement, as described in this letter, please sign the
engagement letter and return it to us.
Michael D. Futterman is the Engagement Partner and is responsible for supervising the
engagement and signing the report or authorizing another individual to sign it.
Village of Key Biscayne, Florida
November 6, 2017
Page 12
This agreement is renewable at the option of Village. We appreciate the opportunity to be of
service to the Village and believe this letter accurately summarizes the significant terms of our
engagement. If you have any questions, please let us know.
Very truly yours,
Marcum LLP
*i .g jZa
Michael D. Futterman
ACCEPTED
This letter correctly sets forth the agreement of the Village of Key Biscayne, Florida.
Authorized Sign
Title:
Date signed:
APPENDIX A
Village of Key Biscayne, Florida
Circumstances Affecting Timing and Fee Estimate
The estimated fee is based on certain assumptions. Circumstances may arise during the
engagement that may significantly affect the targeted completion dates and our fee estimate. As
a result, additional fees may be necessary. Such circumstances include but are not limited to the
following:
I . Changes to the timing of the engagement at your request. Changes to the timing of the
engagement usually require reassignment of personnel used by Marcum in the performance
of services hereunder. However, because it is often difficult to reassign individuals to other
engagements, Marcum may incur significant unanticipated costs.
2. All requested schedules are not (a) provided by the accounting personnel on the date
requested, (b) completed in a format acceptable to Marcum (c) mathematically correct, or
(d) in agreement with the appropriate underlying records (e.g., general ledger accounts).
Marcum will provide the accounting personnel with a separate listing of required schedules
and deadlines.
3. Weaknesses in the internal control.
4. Significant new issues or unforeseen circumstances as follows:
a. New accounting issues that require an unusual amount of time to resolve.
b. Changes or transactions that occur prior to the issuance of our report.
c. Changes in the Organization's accounting personnel, their responsibilities, or their
availability.
d. Changes in auditing requirements set by regulators.
5. Significant delays in the accounting personnel's assistance in the engagement or delays by
them in reconciling variances as requested by Marcum. All invoices, contracts and other
documents which we will identify for the Organization, are not located by the accounting
personnel or made ready for our easy access.
6. A significant level of proposed audit adjustments are identified during our audit.
7. Changes in audit scope caused by events that are beyond our control.
8. Untimely payment of our invoices as they are rendered.
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