HomeMy Public PortalAboutr 00:006No. 00-6 Date of Adoption JANUARY 2, 2000
APPOINTING A MUNICIPAL AUDITOR FOR THE YEAR 2000
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 (N.J.S.A. 40A: 11-1 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. , VINCI & HIGGINS , Registered Municipal Accountants of the State of
New Jersey are hereby appointed Municipal Auditor for the Borough of Carteret for
the year 2000.
2. That they shall in addition to preparing the annual audit in accordance with the
statutory requirement assist in the preparation of the 2000 Municipal Budget; prepare
such interim reports as may be required; attend all conferences and meeting as
required by the Governing Body including forty (40) hours related budget meetings
and prepare the 2000 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 of the aforesaid services,Ll!llCH, VINCI & HIGGINSbe paid
an annual fee of $30,000.00.
5. A notice of this action shall be published in The Home News Tribune as required
by law on January 7, 2000.
Adopted this 2nd day of January, 2000
and certified as a true copy of the original
on January 3, 2000.
KATHLEEN M. BARNEY,
Municipal Clerk
RECORD OF COUNCIL VOTE
COUNCILMAN COUNCILMAN
CRILLEY QUINONES
FAZEKAS SANTORO
BRIEN SOHAYDA
X - indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Overrule Veto S
Adopted at a meeting of the Municipal Council
JANUARY 2 ~ 2000
CLERK ~
LERCH, VINCI & HIGGINS
CERTIFIED PUBLIC ACCOUNTANTS
REGISTERED MUNICIPAl. ACCOUNTANTS
17- 17ROUYE208
(201) 791-7100 ~
Honorable Mayor and Members January 10, 2000
of the Borough Council
Borough of Carteret
61 Cooke Avenue
Carteret, NJ 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, 2000. We will audit the financial statements of the Borough of
Carteret as of and for the year ended December 31, 2000.
In addition, we propose to timely complete the following additional services that will not be
subjected to the auditing pmcedures applied in our audit of the financial statements:
· Review of the Unaudited Annual Financial Statemem for the year ended December 31, 2000
· Review and certification of the 2000 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-133,
"Audits of States, 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 D~v~s~on of Local Government Senaces, Department of Community Affairs, State of New Jersey, and to
report on the schedules of expenditures of federal awards and state financial assistance 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.
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The management of the Borough of Carteret is responsible for establishin~ and maintaining internal
control. In fulfiilihg this responsibility, estimates and judffements by manaeemen[are required to assess the
expected benefits and related costs of the controls. The object~ves of-intemal control are to provide
~' u~aanuat~nm.~en~ ~ ~raS~able,·.but q9t .ab. solute, .assurance that asse~ are safeeuarded aeainst loss from
~_,~.~,: ..... ~ ~,sppsmon,, mat tr~. c.tlons are executed m accordance wifff mana~ement's
,~*,u,~,%.,~[,ut~ .m~9 ,recorae9 property to pemut ~e preparation of financial statements in accordafice with
~cou.n. ttng pn~n~cipies ao.a pmctmes as prescnbect By the Division of Local Government Services,
r~t~a~a~ede.~ o,~,,u..o~:~n'~n.~u~u.~,~Al~_ai._r~, _S, ta, te, of New. Jerse¥,..and that, .federal ag..d stat%award programs are
t, ..~,~.,[,.ms,.c ~,tus app~lCaole taws ana regmanons ana me provisions oI contracts and grant
agreements.
· . ,In pl .a~n.' g ap.d performing our audit for the year ended December 31, 2000, we will consider the
l.nte~a~ control in order to determine our auditing procedures for the se of ex ressin ' '
the t~ ' ' . . . .purpo .p g o~ opunons on
_ orough s fin. anctal.statements and on its comphance ruth requirements apphcable to major programs
a~ tn%tr,?o_.rt~.o~.~_mt_e__m_.al control.,in .ac.cord.ance .wi,th OMB Circular A-133 andNew Jersey Circular 98-07,
tu iJ~uwuc v..ssurance on me mternal control.
· · .We will obtain an understanding of the design, of the relevant controls and whether they have been
pmcea in operation, and we will assess control risk. Tests of controls may be performedto test the
effectiv, en.e.ss of. ce ~rtain controls that we consider relevant to preveming and detecting errors and fraud that
state .men~,an.d' to prev,.enti~, g a~,d det .e~t.ing_misstatements resulting from illegal
. ,~ m.x~ uu[¢$IIUII~U4JIII~U,,an~ matters mat nave a infect ana matenm ettect on the financial s entq O~nr
te · . . tatem .......
srs, Ix perrormea, wm oe less in scope than would be necessary to render an opinion on internal control
and, accordingly, no opinion will be expressed.
" ~ We. w~.'ii .,perfo~nn t.e. sts ofcon~tr.ols, .as require.d by Om Circular A-133 and New Jersey Circular 98-
~, to evaluate me ertectiveness oI the aesign and operation of controls that we considered relevant to
~ preventing or determining material noncompliance with com liance re uiremen '
B , · P cl ts,.appllcable to each of the
orough s major, federal, ap.d/or state award programs. Our tests mil be less m scope than would be
necessary to renaer an opuuon 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 'ud em
the entity's ability to record rocess s ' . J g . ent, co~d adversely, affect
· , , ummanze, and re rt financial data consisten
maria ' . .PP t w~th th.e.asse~ons of
_g_e.ment .m the financi}lP.~te.moents. We mil also inform ou of an re rtable conditions or
ma . . y po . other
07.tt~ revolving internal control, l~any, as requtred by OMB C~rcular A-~33 and New Jersey C~rcular 98-
Carl,~_,C~m,~li~ wi~.!~ws, or.ebmla..tions, ~ntmcts and grant agreements applicable to the Borough of
abo~,-t~t~;~ .~y~po~nsmn.~v/or. me t~omugns m ~ar2agement. As part of obtaining reasonable assurance
Bomu~h'.q cnm~,,o~o~,~}l~ _st_a__t,e. me.n, ts .are free,oI m,ate, nal rm~ta.tement, we will perform tests of the
----o- .......~-. ..... wtu~ appneaole laws anti recreations and ~he nmulelane r~f o ..... ~ +
agreements. However the ob[ective ofnnr m~dit xx,.il¥ nnt ~t~2z--~-;; r'~''o~'o~' .... Olltl~d~? ana.~ant
with such "rovisions ~t~d w ~ .,, . - ....... ;. ....... ......... to promise an opmaon on overan compnance
F ~ e v~rlll nm express SUCh an optmon.
OMB c2cUrulaaru~t ,wi,'~ll be, c~gndu.cted in~a. cco. rda~co with tl?.e standards referred to in the third ~amgraph.
reasonabl~ ~o~.2~-l~-~-a--~--~-,oerseff ~cmar. 9.8-07 req ,mr. e.that we plan and perform the andii to obtain
,.,o,m,~,,.~ at,out wnemer meDorouon llascom,,liecl wi,h~a~.ll~.kl~ I ...... a --- ~ .- J .t
a~o~.~.~a :- ,~ ,,: , , ,. agree , · .Er dures will consist of the applicable procedures
on the g .....~' ....." .., . ~-r -,. r,-v,- ,~ um ,uu,[ wm trc to express an optruon
,,,,,,gn ~ cumpuance mm reqmrements appncable to major programs.
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Our procedures will include tests of documentary evidence supporting the transactions recorded in
the accounts, and may include direct confmnafion of receivables and certain other assets and liabilities by
correspondence with selected individuals, creditors, and financial institutions. We will request written
~.- representation fi.om 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 fi.om 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 t~ansactions 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 fi.ce 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, fi.aud 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 ns with the basic 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 fmancial
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.
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Fees
Our fee for the above described services rendered on behalf of the Borou is based
experience in flor ears' audi .... on our
P y ,~ of the Borough. Our invoices for this fee will be rendered
w.o. rk, pr~o~g2-?~es and are payame upon presentation. Our fee for the fiscal year ended Dece ema~ehr ~m~°ngthana~
Will De ~3U~UU{). " ~' ~ ~ ....
Should any additional matters come to our attention which will require us to enlarge the scope of the
~e~ng~a~ge~m~e~n~__w.e_~w~]J disc_uss ~,e matter as. well as~the cost estimate with the governing body prior to
· .~Ja,n~x~xxvc~cllt Ol .l~l.e worK. -,aklSO~ any mfluers Denormea on ~ehalt~ af ~h~ n~w, oh n~ ~,,,~--~ ~ .t.
engagement letter Will be billed out based on our standard billing r~s~ .......... e~ ....... tea oy tins
Our standard billing rates for 2000 are as follows:
Parmers $115 - $140 per hour
Managers $ 95 - $110 per hour
Seniors $ 80 - $ 95 per hour
StaffAccountants $ 65 - $ 80 per hour
Other Personnel $ 45 per hour
m .... _G_o?rnm,.e. nt Au. diti, ng Standard{.- ~1994 R~?ision requires that we provide you with a copy of our
~t ~cent quamy conu:o~ rexqew report, taur 199/peer review report accompanies this letter.
· ,We appreciate the oppo_r_txmity to be of service to the Borough of Carteret and believe this letter
,a_cc___u_r_a_ te~Y summanzes..,th~, si .gnil~cant~terms of our engagement. I.f you have any questions, please let us
~o~V~m~x~oo u~.m me terms oi our engagement as described m this letter, please sign the enclosed
Veryflruly ygurs, / ~ /
LERCH, VINCI & HIGGIN~
Certified Public Accountants
This letter correctly sets forth the understanding of the Borough of Carteret.
Title:
Date: J/LIqUARY 14~ 2000