Loading...
HomeMy WebLinkAboutResolution_65-03/04_09/16/2004• RESOLUTION NO. 65-03/04 A RESOLUTION OF THE VILLAGE COUNCIL, OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, APPROPRIATING $200,000.00 IN THE GENERAL FUND, ACCOUNT # 001-990-599.902, RESERVES-CONTINGENCY AND $50,000.00 IN THE WATER FUND, ACCOUNT # 401-990-599.902, RESERVES-CONTINGENCY, FROM DESIGNATED FUND BALANCE TO FUND EMERGENCY EXPENDITURES. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1. The appropriation of $200,000.00 in the General Fund, Account #001- 990-599.902, Reserves-Contingency and $50,000.00 in the Water Fund, Account # 401-990-599.902, Reserves-Contingency, from Designated Fund Balance to fund emergency expenditures, is hereby approved. ~~ ~ THE FOREGOING RESOLUTION WAS OFFERED by Councilmember Humpage, who moved its adoption. The motion was seconded by Councilmember 'Resnik, and upon being put to a vote, the vote was as follows: FOR ADOPTION AGAINST ADOPTION Pat Watkins Geraldine A. Genco Edward D. Resnik Russell J. von Frank Jim Humpage The Mayor thereupon declared the Resolution duly passed and adopted this 16~' day of September, A.D., 2004. MAYOR OF TEQUESTA Q,~ ~cL~~=L~ Pat Watkins • ATTEST: Village Clerk Gwen Carlisle ~~~1~,::~Cohen j ~~ ~ A ,r k ! 'A + 1 . " ~ ~ ~c~HOltz Accountants ~ Advisors • August 3, 2004 Honorable Mayor, Village Council and Village Manager Village of Tequesta 250 Tequesta Drive., Ste 300 Tequesta, FL 33469-0273 As part of our continuing engagement with the Village of Tequesta, Florida (the Village), we are pleased to confirm our understanding of the services we are to provide to the Village for the fiscal years ended September 30, 2004 and 2005 with an option to renew for two subsequent years (2006 and 2007) at the mutual agreement of both the Village and RCH. We will audit the governmental activities, the business type activities, each major fund and the aggregate remaining fund information, which collectively comprise the entity's basic financial statements of the Village as of and for the fiscal years ending September 30, 2004 and 2005. Also, the document we submit to you will include the following additional information that will be subjected to the auditing procedures applied in our audit of the financial statements: 1. Management's discussion and analysis • 2. Combining and fund financial statements 3. Required Supplementary Information The document will also include the following additional information that will not be subject to the auditing procedures applied in our audit of the financial statements, and for which our accountant's report will disclaim an opinion. 1. Statistical section 2. Introductory section Audit Objectives The objective of our audit is the expression of an opinion as to whether your financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the financial statements taken as a whole. The objective also includes reporting on - • Internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. The reports on internal control and compliance will each include a statement that the report is intended solely for the information and use of the Village Council, management, and specific legislative or • regulatory bodies, is not intended to be and should not be used by anyone other than these specified parties. Rachlin Cohen & Holtz ur One Southeast Third Avenue ^ Tenth Floor ^ Miami, Florida 33131 ^ Phone 305.377.4228 ^ Fax 305.377.8331 ^ WWW.raChlin.COm An Independent Member of Baker Tilly International M I A M I ^ F O R T L A U D E R D A L E ^ W E S T P A L M B E A C H ^ S T U A R T Honorable Mayor, Village Council and Village Manager Village of Tequesta August 3, 2004 Page 2 Our audit will be conducted in accordance with auditing standards generally accepted in the United States and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, will include tests of the accounting records of the Village and other procedures we consider necessary to enable us to express such an opinion and to render the required reports. If our opinion on the financial statements is other than unqualified, we will fully 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 an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. Management Responsibilities Management is responsible for establishing and maintaining internal control and for compliance with laws, regulations, contracts, agreements and grants. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that federal and state award programs are managed in compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such 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 advise you in the preparation of your financial statements, but the responsibility for the financial statements remains with you. As part of our engagement, we may propose standard, adjusting, or correcting journal entries to your financial statements. You are responsible for reviewing the entries and understanding the nature of any proposed entries and the impact they have on the financial statements. That responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting, the selection and application of accounting principles, and the safeguarding of assets. Management is responsible for adjusting the financial statements to correct material misstatements and for confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period 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 (a) management, (b) employees who have significant roles in internal control, and (c) others where the fraud could have a material effect on the financial statements. You are also responsible for informing us of your Cohen ~Ioltz Accountants Advisors • Honorable Mayor, Village Council and Village Manager Village of Tequesta August 3, 2004 Page 3 knowledge of any allegations of fraud or suspected fraud affecting the Village 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 and regulations. As part of our audit we will prepare a draft of your financial statements and related notes. In accordance with professional standards, you will be required to review and approve those financial statements prior to their issuance and have a responsibility to be in a position in fact and appearance to make an informed judgment on those financial statements. Further, you are required to designate a qualified management level individual to be responsible and accountable for overseeing our services. 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. 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 errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. Because an audit is designed to provide reasonable, but not absolute assurance 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. 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 you of any material errors that come to our attention, and we will inform you of any fraudulent financial reporting or misappropriation of assets that comes to our attention. We will also inform you of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. 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. 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 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 require certain written representations from you about the financial statements and related matters. Identifying and ensuring that the Village complies with laws, regulations, contracts, agreements, and grants is the responsibility of management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the Village's compliance with applicable laws and regulations and the provisions of contracts, agreements and grants. However, the Cohen Holtz Accountants Advisors • Honorable Mayor, Village Council and Village Manager Village of Tequesta August 3, 2004 Page 4 objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Audit Procedures-Internal Controls In planning and performing our audit, we will consider the internal control sufficient to plan the audit in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinion on the Village's financial statements and on its compliance with requirements applicable to major programs. We will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. Tests of controls may be 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. Tests of controls are required only if control risk is assessed below the maximum level. 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 reportable conditions. However, we will inform the Village Council and management 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 judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. We will also inform you of any nonreportable conditions or other matters involving internal control, if any, as required by Government Auditing Standards. Audit Administration, Fees, and Other We understand that your employees will prepare all cash or other confirmations we request and will locate any invoices selected by us for testing. The audit documentation for this engagement is the property of Rachlin Cohen & Holtz LLP and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to regulatory agencies pursuant to authority given to it by law or regulation. If requested, access to such audit documentation will be provided under • the supervision of Rachlin Cohen & Holtz LLP personnel. Furthermore, upon request, we may provide Cohen alHoltz Accountants Advisors Honorable Mayor, Village Council and Village Manager Village of Tequesta August 3, 2004 Page 5 copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. Our fees for these services will not exceed $43,500 for the year ending September 30, 2004 and $45,750 for 2005. Our hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. In addition, if the Village is required to undergo an audit in accordance with the Federal Single Audit Act and OMB Circular A-133, Audits of States, Local Governments, and Not for-Profit Organizations Receiving Federal Awards, the additional fee will be $6,000. If the Village is subject to the Florida Single Audit Act and Chapter 10.550 Rules of the Auditor General for the fiscal year ended September 30, 2004, the additional fee will be $6,000. • Our invoices for these fees will be rendered as the work progresses, and are payable on presentation. In accordance with our firm policies, should any invoices remain unpaid for more than thirty days, we reserve the right to defer providing any additional services until all outstanding invoices are paid. A late payment charge of 1% per month will be added to all unpaid balances after thirty (30) days. You agree that we are not responsible for the impact on the Village of any delay that results from such non-payment by you. 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 charges incurred to the date of termination or resignation. In the event that we determine to resign, and you seek damages allegedly resulting from such resignation, our maximum liability to you in the event we are held liable because of such resignation shall be limited to the fees actually paid to us to the date of resignation. The Village has the option of extending this contract at mutually acceptable terms. • Cohen Holtz Accountants Advisors • Honorable Mayor, Village Council and Village Manager Village of Tequesta August 3, 2004 Page 6 We appreciate the opportunity to be of continued service to the Village of Tequesta and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us lrnow. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Sincerely, . Jerry C iocca, CPA Partner • RESPONSE: This letter correctly sets forth the understanding of the Village of Tequesta, Florida. By: ~ - r~ Title: ~ ~ ~ ~ ~ ~ 41~c- Date: _ ~ ~'~- 5 - Z~~ ~ , F:\04\76553\Engagement better • CoI'JeYI alHoltz Accountants Advisors • • Village of Tequesta Schedule of Audit Fees Current and Proposed at August 31, 2004 Year Fee Current 2001 $ 36,000 2002 $ 38,000 $ 2003 $ 41,000 $ Proposed 2004 $ 43,500 $ 2005 $ 45,750 $ Increase in Dollars $ Increase by Chan e 2,000 3,000 2,500 2,250 9,750 27.1 Change 5.6% 7.9% 6.1 5.2% •