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Home My Public Portal About1992 Services for the FY ending 1992, 1993 and 1994.tifRACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PAR!, RSHIV aF PHUFF SSIUN AI ASur RTIONS 1320 SOUTH DIXIE HIGHWAY PFNTHOI SF CORAL GABLFS, FLORIDA 33146-2964 TELEPHONE S DADF (305) 667-0412 BROW ARD (305) 764-7717 Fax (305) 665-7456 July 28, 1992 The Honorable Rafael Conte The Mayor of the Village of Key Biscayne 85 W. McIntyre Street Key Biscayne, FL 33149 Dear Mayor Conte: 700 Sot i FHE 1ST THIRD AA LN I F SFITF 400 F r. LAl DERDAI F, FLORIDA 33316-1102 I F Le PHONES: BROW ARD (305) 764-7717 DADF (305) 667-0412 FAx: (305) 764-7835 We are pleased to submit this letter confirming the understanding of our engagement for the performance of the financial and compliance audit of the financial statements of the Village of Key Biscayne, Florida. Our firm will audit the general purpose financial statements of the Village for the three year period ending September 30, 1992, 1993 and 1994. These financial statements will be the responsibility of the Villages's Management. Our responsibility will be to express an opinion on these financial statements based on our audit. Scope of Service The audit will be performed in accordance with generally accepted auditing standards as promulgated by the American Institute of Certified Public Accountants, as well as the applicable rules of the Florida Statutes Chapter 11.45, Chapter 10.550 of the Rules of the Auditor General, as well as in compliance with the Governmental Auditing Standards, issued by the United States General Accounting office, the Single Audit Act of 1984 and the provisions of OMB Circular A-128. The audit as conducted will be a financial audit as defined in the above referenced Florida Statutes. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit will provide a reasonable basis for our opinion. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts; tests of the physical existence of inventories, if any, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected customers, creditors, legal counsel and banks. At the conclusion of our audit, we will request certain written representations from you about the financial statements and matters related thereto. \ILa1BF R OF SF A1A111 IV I F R\ AFIONAL ASSOCIA FI S, IN( RITH Of I R F‘, IN PRINCIPAL CI I IES THROI GHOI F I HF NNORLD AI44rQ4u nl 1 111 AKII in, A\ I,\ 1 1 1 1 1, ill u 111 1Fn PI ul I( Ar r ni \"7 4\r, 1 1( 1 CI r I In\ a\I1 I Ilr Pur\ a 14 I`M 11>aV PC Puer II/ i. QcrTV,\ The Honorable Rafael Conte Page 2 In addition, our auditing procedures will include those standards of any cognizant federal agency which are necessary to test compliance and to disclose noncompliance with specified laws, regulations and contractors. We will assist in the preparation of the required reports for submission to the GFOA in order to obtain a Certificate of Achievement for Excellence in Financial Reporting and, as necessary, assist in responding to comments by reviewers to assure attainment of the Certificate of Achtevemer . We will prepare the Annual Financial Report of Units of Local Government to be submitted to the Comptroller of Florida. On a periodic basis, we will provide advice and comment as to the establishment and proper maintenance of the operating funds of The Village. This should be a part of the ongoing services under contract and provided at the request of The Village Manager. We will present the results of our audit to the Board of Trustees. Our audit is subject to the inherent risk that material errors, irregularities, or illegal acts, including fraud or defalcations, if they exist, will not be detected, However, if a reportable condition should be detected during the audit, such a condition will be communicated in the report on internal control. A reportable condition will be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the Village's ability to record, process, summarize and report financial data consistent with the assertions of management in the Village's financial statements. At the conclusion of our engagement, we will be issuing the following auditor's reports, as applicable: a. A report on the fair presentation of the financial statements in conformity with generally accepted accounting principles. b. A report on the internal control structure based on the auditor's understanding of the control structure and assessment of control risk. c. A report on compliance with applicable law and regulations. We anticipate the commencement of the audit to be in mid -November and anticipate an exit conference with the Village Manager on December 28, 1992. Your accounting department will provide us with various schedules and information at our request. The Honorable Rafael Conte Page 3 As outlined in the Request for Proposal, fifty (50) copies of the audit report and report on internal control structure will be delivered to the Office of the Village Manager. As to workpapers, they will be retained for five years and will be available for examination by authorized representatives of any cognizant Federal agency; copies of all workpapers prepared during the audit will be available to the Village. Our fees for the services we provide will be charged to you in accordance with the various services rendered and the levels of skill and responsibility required for these services. We estimate that our fees will be $9,500 for the year ended September 30, 1992; $11,500 for the year ending September 30,1993 and $12,000 for the year ending September 30, 1994, plus out-of-pocket costs, if any. These estimates are based upon the current level of services provided by the Village today; if the level of municipal services expands over what is expected (i.e. police department), we will mutually agree to an adjustment to the fee estimate. These bills are payable upon their receipt by you. Should services other than those covered by this letter be required or requested, the extended services and the basis for additional fees will not be performed unless they are authorized. Thank you for the confidence you have placed in us by engaging us as your independent certified accountants, and we hope that this proves to be the beginning of a long and mutually beneficial association. If this letter contains a correct understanding or our arrangements, please indicate your acceptance by signing, dating and returning an enclosed copy to us. Sincerely, Chiocca, CPA, P.A. GJC:law Enclosure ACCE E BY: uffii/ NAME VILLAGE MANAGER TITLE JULY 30, 1992 DATE CHIOCCA\KEY