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Home My Public Portal About1996 Services for the FY ending 1997, 1998 and 1999.tifCLI fIFIFU PL rl 1( VIOL \T\yT & \L,L 11 \tire 1'aitnu �hi�, In,luJinL; Pu�rc��innal 1,�u�i,itt ii May 9, 1996 Honorable Mayor, Village Council and Village Manager Village of Key Biscayne 85 West McIntyre Street Key Biscayne, Florida 33149 As a part of our continuing relationship with the Village of Key Biscayne, it is the purpose of this letter to confirm our understanding of the services we are to provide for the Village of Key Biscayne, Florida for the years ending September 30, 1997, 1998 and 1999. We will audit the general purpose financial statements of the Village of Key Biscayne, Florida for the years ending September 30, 1997, 1998 and 1999. Our audit will be conducted in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the comptroller general of the United States, the Single Audit Act of 1984, and the provisions of OMB Circular A-128, "Audits of State and Local Governments", and will include such tests of the accounting records and other auditing procedures as we consider necessary, for the purpose of rendering an unqualified opinion that the financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles and to report on the Village's compliance with laws and regulations and its internal controls as required. 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 attorney as part of the engagement. At the conclusion of our audit, we will also request certain written representations from 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 transactions to be examined and the areas to be tested. Also, we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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, irregularities, or illegal acts, including fraud or defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention, unless they are clearly inconsequential. Our responsibility as auditors is limited to the period P\ �)>iu `,iuth d,t )-bird \1cnue Imo! AILin "1"11;1 • I)lde I,lht ;77 -F2 • -t0(1 ‘-,eutheci,1 enA rl iid F Ho! I ` I iudedtile 1 loil.ia • [Riovvdid H4) )4i' • ' LH41 '').2')-21))14 Honorable Mayor, Village Council and Village Manager May 9, 1996 Page 2 covered by our audit and does not extend to matters that might arise during later periods for which we are not engaged as auditors. We understand that you will provide us 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 the 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. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application of accounting principles, and the safeguarding of assets. We understand that your employees will type all cash and other confirmations we request and will locate any invoices or supporting documentation selected by us for testing. Our audit is not specifically designed and cannot be relied on to disclose reportable conditions, that is, significant deficiencies in the design or operation of the internal control structure. However, during the audit, if we become aware of such reportable conditions or ways that we believe management practices can be improved, we will communicate them to you. 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 not to exceed $25,000 for the year ending September 30, 1997, $27,000 for the year ending September 30, 1998 and for the year ending September 30, 1999, the fee will be based on the change in the Consumer Price Index for the twelve months ending April 30, 1999, plus out-of-pocket costs, if any. These bills are payable upon their receipt by you. We reserve the right to stop work on clients where is an amount past due. In addition, we will perform an audit of Federal and State financial assistance programs, if required, in accordance with the Single Audit Act of 1984, OMB Circular A-128 and the Rules of the Auditor General of the State of Florida Chapter 10.600. We estimate that our fees will not exceed $4,000 for each year that a single audit is performed. Our fee estimate is based on anticipated continued cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. Changes in governmental accounting standards or increases in the number of funds included in the Village's Comprehensive Annual Financial Report would necessitate additional fees. Should services other than those covered by this letter be required or requested, the extent of such services and the basis for additional fees will be discussed in advance of the performance of the work. Thank you for the continued confidence you have placed in us by engaging us as your independent certified public accountants. Honorable Mayor, Village Council and Village Manager May 9, 1996 Page 3 If this letter contains a correct understanding of our arrangements, please indicate your acceptance by signing, dating and returning an enclosed copy to us. Sincerely, I G. Jerry Chiocca, CPA Enclosures ACCEPTED BY: NAME TITLE DATE F:\ 96149\ 49940AAUDIT97. EL