HomeMy Public PortalAbout1994 Services for the FY ending 1994, 1995 and 1996.tifRESOLUTION NO. 94-27
A RESOLUTION OF THE VILLAGE OF KEY BISCAYNE,
FLORIDA; AUTHORIZING THE VILLAGE MANAGER TO
EXECUTE AN AGREEMENT WITH RACHLIN & COHEN
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS,
CORAL GABLES, FLORIDA, FOR THE PERFORMANCE OF
FINANCIAL AND COMPLIANCE AUDITS OF VILLAGE
FINANCIAL STATEMENTS; PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, on August 11, 1992, the Village Council authorized an
agreement with Rachlin & Cohen Certified Public Accountants and
Consultants for the audit of financial statements for the three year
period ending September 30, 1992, 1993 and 1994; and
WHEREAS, the Village wishes to extend its agreement with
Rachlin & Cohen Certified Public Accountants and Consultants to
include the audit of financial statements for the three year period
ending September 30, 1994, 1995 and 1996;
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF KEY
BISCAYNE AS FOLLOWS:
Section 1. That the Village Manager is hereby authorized to
execute the attached agreement on behalf of the Village with Rachlin
& Cohen Certified Public Accountants and Consultants, Coral Gables,
Florida, for the performance of financial and compliance audits of
Village financial statements for the three year period ending
September 30, 1994, 1995 and 1996.
Section 2. This resolution shall take effect immediately upon
adoption.
PASSED AND ADOPTED this 1st day of /August , 1994
VICE MAYOR J
ATTE
GUIDO . INGUANZO, JR., VILLAGE CLERK
APPROVED AS TO..FORM ND LEGAL SUFFICIENCY:
STEPH: HELFMAI , ' VIL ' GE A ORNEY
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RACHLIN & COHEN
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June 28, 1994
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Dade (305) 667-0412
13roward (305) 764-7717
Mr. Sam Kissinger, Village Manager
Village of Key Biscayne
85 W. McIntyre Street
Key Biscayne, FL 33149
Dear Sam:
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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, 1994, 1995 and 1996. 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.
\lernher of Summit International 1ssrxiates, Inc with office, in principal cities rhroughour the it„rld
\Iemher of the \mcne-in Institute tit ('crntici Public A‘counrants lhvivnn for',E.(: Practice Section Ind the Pris ate ( nmpanies Practice Secnnn
Mr. Sam Kissinger, Village Manager
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 Achievement.
We will review the State of Florida Annual Local Government Report 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 Village Council.
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.
Your accounting department will provide us with various schedules and information
at our request.
As outlined in the original 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.
Mr. Sam Kissinger, Village Manager
Page 3
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 range from $18,000 - $20,000
for the year ended September 30, 1994; $19,000 - $21,000 for the year ended September
30,1995 and $20,000 - $22,000 for the year ended September 30, 1996, 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 known and expected, we will mutually agree to an adjustment to the fee
estimate. These bills are payable upon their receipt by you. We reserve the right
to stop work on clients where an amount is past due. All bills that remain unpaid
for more than 30 days will be subject to an annual interest charge calculated from
the date of the statement.
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 continues to be 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,
,,.t
(J;• Jerry Chiocca, CPA, P.A.
GJC:law
Enclosure
cc: Michael Futterman, CPA
TITLE
tin
DATE
Authorized through Resolution 94-27 adopted on August 1, 1994.
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