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HomeMy WebLinkAboutDocumentation_Miscellaneous_Tab 4_11/5/1997 '20 NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS EVERETT B.NOWLEN(1930+994).CPA EDWARD T.HOLT,CPA WEST PALM BEACH OFFICE WILLIAM B.MINER,CPA 215 FIFTH STREET,SUITE 200 ROBERT W.HENDRIX,JR.,CPA POST OFFICE BOX 347 JANET R.BARICEVICH, CPA WEST PALM BEACH,FLORIDA 33402-0347 KATHLEEN A.MINER,CPA TELEPHONE(561)659-3060 R.GREGORY SMITH,CPA FAX(561)835-0628 ROBERT W.HELMREICH,CPA TERRY L.MORTON,JR.,CPA N.RONALD BENNETT,CPA J.MICHAEL STEVENS,CPA MARK B.ELHILOW,PFS,CPA DANIELA'E.RUSSELL,CPA BELLE GLADE OFFICE April 30, 1997 333 S.E.2nd STREET POST OFFICE BOX 338 BELLE GLADE,FLORIDA 33430-0338 TELEPHONE(561)996-5612 FAX(561)996-6248 The Honorable Mayor and Members of the Village Council Village of Tequesta 357 Tequesta Drive Tequesta, FL 33469 Ladies and Gentlemen: We are pleased to confirm our understanding of the services we are to provide for the Village of Tequesta for the years ended September 30, 1997, 1998, 1999, 2000 and 2001. We will audit the general purpose financial statements of the Village of Tequesta as of and for the years ended September 30, 1997, 1998, 1999, 2000 and 2001. • Our audits will be conducted in accordance with generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the Village of Tequesta 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 generally accepted accounting principles. If our opinion 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, we will not issue a report as a result of this engagement. The management of the Village of Tequesta is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute assurance that assets are safeguarded against loss from unauthorized use or disposition and 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. AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS•FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS•ACCOUNTING FIRMS ASSOCIATED INC. , Village of Tequesta April 30, 1997 Page 2 In planning and performing our audits for the years ended September 30, 1997, 1998, 1999, 2000 and 2001, we will consider the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Village of Tequesta's financial statements and not to provide assurance on the internal control structure. We will obtain an understanding of the design of the relevant policies and procedures 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 policies and procedures that we consider relevant to preventing and detecting errors and irregularities 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 the internal control structure policies and procedures and accordingly, no opinion will be expressed. We will inform you of any matters involving the internal control structure 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 structure 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 fmancial statements. Compliance with laws, regulations, contracts and grant agreements applicable to the Village of Tequesta is the responsibility of the Village of Tequesta's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatements, we will perform tests of the Village of Tequesta's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance with such provisions, and we will not express such an opinion. 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 con- firmation of receivables and certain other assets and liabilities by correspondence with selected funding sources, 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 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 will plan and perform the audit Village of Tequesta April 30, 1997 Page 3 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 inform you, however, of any matters of that nature that come to our attention. An audit is not designed to detect immaterial instances of fraud. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. We understand that you will provide us with the basic information required for our audits 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 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. Management is also responsible for identifying and ensuring the organization complies with applicable laws and regulations. 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 in a separate letter. Our fees for these services will be based on the actual time spent at our standard hourly rates, including travel and other out-of-pocket costs. Our fees will not exceed $35,000, $35,000, $36,100, $37,200 and $38,300 for the years ended September 30, 1997, 1998, 1999, 2000 and 2001, respectively. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Interest will be charged at the rate of 1'4% per month, for an annual percentage rate of 15%, on all past due accounts. This 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. Special audits (for example, a Single Audit made in accordance with OMB Circular A-133), assistance to the Village to meet the requirements of the GFOA's Certificate of Achievement for Excellence in Financial Reporting Program, assistance in connection with the issuance of debt securities, accounting and consulting services, preparation of state reports, or any other special services as may be required or requested from time to time will be billed separately at our standard hourly rates. Village of Tequesta April 30, 1997 Page 4 The 1994 revision of Government Auditing Standards, requires that we provide you with a copy of our most recent external quality control review report. The most recent quality control review was conducted in September 1994. A copy of the unqualified report is attached. These reviews are required every three years. The agreement may be terminated by the Village, with or without cause, upon 90 days written notice given to Nowlen, Holt.&.Miner, P.A. Nowlen, Holt & Miner, P.A. may resign as the Village's auditor and terminate this agreement upon 90 days notice in accordance with the laws, regulations and professional standards applicable to the types of services provided hereunder. In the event of termination, Nowlen, Holt & Miner, P.A. -shall be paid for services performed through the date of termination. We appreciate the opportunity to be of 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 know. 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, Nowlen, Holt & Miner, P.A. RESPONSE This letter correctly sets forth the understanding of the Village of Tequesta. By: Title: Date: AFAI, Accounting Firms Associated, inc. September 14, 1994 To the Partners Nowlen, Holt & Miner, P.A. We have reviewed the system of quality control for the accounting and auditing practice of Nowlen, Holt & Miner, P.A. (the firm) in effect for the year ended June 30, 1994. Our review was conducted in conformity with standards for peer reviews promulgated by the peer review committee of the private companies practice section of the AICPA Division for CPA Firms(the section). We tested compliance with the firm's quality control policies and procedures and with the membership requirements of the section to the extent we considered appropriate. These tests included the application of the firm's policies and procedures on selected accounting and auditing engagements. In performing our review,we have given consideration to the general characteristics of a system of quality control as described in quality control standards issued by the AICPA. Such a system should be appropriately comprehensive and suitably designed in relation to the firm's organizational structure, its policies, and the nature of its practice. Variance in individual performance can affect the degree of compliance with a firm's prescribed quality control policies and procedures. Therefore,adherence to all policies and procedures in every case may not be possible. In our opinion, the system of quality control for the accounting and auditing practice of Nowlen, Holt & Miner, P.A. in effect for the year ended June 30, 1994, met the objectives of quality control standards established by the AICPA, and was being complied with during the year then ended to provide the firm with reasonable assurance of conforming with professional standards. Also, in our opinion,the firm was in conformity with the membership requirements of the section in all material respects. Or:4m r. John C. Lechleiter Team Captain 2811 NW 41ST STREET, BUILDING C PHONE (904) 375-2324 GAINESVILLE, FLORIDA 32606 FAX (904) 375-4187 NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS EVERETT B.NOWLEN(999.19a4),CPA EDWARD T.HOLT,CPA WEST PALM BEACH OFFICE WILLIAM B.MINER,CPA . 215 FIFTH STREET,SUITE 200 ROBERT W.HENDRIX,JR.,CPA POST OFFICE BOX 347 JANET R.BARICEVICH, CPA WEST PALM BEACH,FLORIDA 33402-0347 KATHLEEN A.MINER,CPA TELEPHONE(561)659-3060 R.GREGORY SMITH,CPA FAX(561)835-0628 ROBERT W.HELMREICH,CPA TERRY L MORTON,JR.,CPA N.RONALD BENNETT,CPA J.MICHAEL STEVENS,CPA MARK B.ELHILOW,PFS,CPA DANIELA'E.RUSSELL,CPA BELLE GLADE OFFICE April 30, 1997 333 S.E.2nd STREET POST OFFICE BOX 338 BELLE GLADE,FLORIDA 33430-0338 TELEPHONE(561)996-5612 FAX(561)996-6248 Bill Kascavelis Village of Tequesta 357 Tequesta Drive Tequesta, FL 33469 Dear Bill: We are pleased to respond to your request to outline our services and qualifications we will provide to the Village of Tequesta when performing your independent audit. This letter highlights our qualifications that make us uniquely qualified to serve you. We believe the quality of service that the Village receives from an independent auditing firm depends primarily on the experience and talent of the personnel assigned to the engagement. This letter is designed to emphasize the expertise which is available to the Village from Nowlen, Holt & Miner, P.A. YOUR EXPECTATIONS AND REQUIREMENTS We believe we understand what you expect and require from your independent auditors. Key among these are that your independent auditors should: ° Express an opinion on the fair presentation of the Village's general purpose financial statements in conformity with generally accepted accounting principles and conduct their examinations in accordance with generally accepted auditing standards of the AICPA, the standards for financial and compliance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the provisions of the Single Audit Act of 1984, the provisions of U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments, Florida Statutes 11.45, the Rules of the Auditor General and other rules as applicable. AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS•FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS•ACCOUNTING FIRMS ASSOCIATED INC. Village of Tequesta April 30, 1997 Page 2 o Demonstrate in-depth knowledge and experience in serving governmental entities so that the Village may rely on them for timely information on all financial reporting and auditing issues. o Have the resources to demonstrate that they can meet your needs and deadlines for timely reporting. o Maintain effective communications with key officials and respond to requests for assistance and information on accounting and other reporting matters in a timely manner. o Have a commitment to perform the work within the anticipated time period. As your independent auditors, we will make a positive commitment to meet these expectations and requirements. CLIENT SERVICE Our engagement team consists of experienced professionals headed by Edward T. Holt, Managing Principal. Nowlen, Holt & Miner, P.A. (a Florida corporation) has performed audits and management consulting engagements in Palm Beach County for over 30 years. In addition, we are a member of Accounting Firms Associated, Inc., an association of CPA firms throughout the United States. Thus, if necessary, we can draw from the technical skills and manpower of a number of other firms within Accounting Firms Associated, Inc. As you are aware, we have acquired an in-depth knowledge of the Village's: o Environment ° Operating characteristics ° Organizational structure ° Management philosophy and operating style o Internal control structure o Personnel policies and practices o Data processing systems o Compliance requirements Village of Tequesta April 30, 1997 Page 3 This knowledge base is a significant resource to your staff members. Using this knowledge we have developed efficient and effective audit strategies. Our team of highly skilled professionals utilizes this approach to provide the Village the highest quality auditing services available in a cost effective and timely manner. We believe our unique combination of prior experience with the Village, governmental auditing experience and expertise, highly qualified personnel, dedication to quality, commitment to meet all time requirements, and personalized attention make Nowlen, Holt & Miner, P.A. the best qualified firm to perform your audits. We have enclosed our standard audit engagement letter for the fiscal years ended September 30, 1997, 1998, 1999, 2000 and 2001. If you are in agreement with the terms, please sign one copy and return to us at your earliest convenience. Sincerely, 4„,zzz,,41 Nowlen, Holt & Miner, P.A. ETH:jd Enc.