HomeMy WebLinkAboutHandouts_Regular_Tab 03_04/12/2012 �UM
ADVISORY GROUP
March 27, 2012
To the Village Council, Village Manager and Finance Director
Village of Tequesta, Florida
We have audited the fmancial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund infarmation of the Village of Tequesta (the V�llage) for the yeaz ended
September 30, 2011, and have issued our report thereon dated March 27, 2012. Professional standards also reqaire
that we communicate to you die following information retated to our sudit.
Our Resaonsnbilities under U.S. Generaliv Acceated Auditin� St�nda� a�td Government
Auditin� Sta�dards
As stated in our engagement letter dated June 18, 2009, our responsibitity, as described by professional standards,
is to express opinions about whether the financial statements prepated by management with your oversight are
fairly presented, in al! material respects, in conformity with U.S. generally accepted accounting principles. Our
audit of the finaricial statements does not relieve you or management o£your responsibilities.
As part of our audit, wc considered the internal control of the Village. Such considerations were solely for the
purpose of determining o�r audit procedures and not to provide any assurance concerning such internal control.
As part of obtaining reasonable assurance about whether the financial sta�ments are free of material misstatement,
we performed tesis of the Village's compliartce with certain provisious of laws, regulatians, contracts, and grar►ts.
However, the objective of our tests was not to provide an opinion on compliance with such provisions.
We are responsible for communicating significant matters �lated #o the audit that are, in our professional
judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not
required to design procedures specificalty to identify such matters.
P�anned Scooe a�d T�min� of the Andit
We performed the audit according to the planned scope and timing previously communicated to the Finance
Directar in our initial meeting about planning matters on October 3, 2011.
S" ' �tnt A.�dit F'i�di��s
Qua!'atative Aspects of Accounting Practfces
Management is responsible for the selection and use of appmpriate accounting golicies. The significant
accounting policies used by the Village are descril�d in Note 1 to the fmanci�l statements. The Village adopted
GASB Statement No. 54, Fund Balance Reporting cmd Governmental Fund Type Definitions, during fiscal year
2011. No other new accounting policies were adopted. T7�►e application of exisfing policies was not changed
during 2011. We noted no iransactians entered into by the Village during the year for which there is a lack of
authoritative guidance or consensus. All significant transactions have been recognized in the financial statements
in �e proper period.
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MEMBER
Marcum ur � 525 Okeechobee Boulevard x Suite 750 � West Palm Beach, Florida 33407 a Ne�ae 561.653.7300 x Fu 561.653.7301 m marqlmN�.cAm
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Village of Tequesta
March 27, 2012
Page 2
Accounting estimates are an integral part of the financia! s�tatements pr�pared by management aaid are based on
managemenYs knowledge and experience about past and current events and assumptions abou# future events.
Certain accounting estimates are particularly sensitive b�ause of their significance to the financial statements and
because of the possibiiity that future events affecting them may differ significantly from those expected. The most
sensitive estimates affecting the financial statements were:
Management's estimate of t�e allowance for doubtful accounts is based on historical trend informatian.
We evaluated the key factors and assumptions used to develop the allowance in determining that it is
reasonable in relation to the financial statements taken as a whole.
Management's estimate of the OPEB liability is based on an actuarial vatuat�on performed by an
independent actuary. We reviewed the valuation and determined that the liability recorded by the Viltage
�ppears appropriate.
Managemen#'s estimate of the net pension asset is based on an actuarial valuation perfarmed by an
independeut actuary. We reviewed the valuation and determined that the asset recorded by the Village
appears appropriate.
The disclosures in the financia{ statements are neutral, consistent, and clear. Certain financial staternent
discloswes are particulazly sensitive because of their significance to finaneial statement users. The most sensitive
disclosure affecting the financial statements was:
Investment disclosures, s�cifically investment type, interest rate risk, credit risk and concentration of credit
risk.
Difficrilties Enrountered in Performing the Audit
We encountered no difficulties in dealing with management in performing and completing our audit.
Corrected and Uncnrrected Misstatements
Professional standards require us to �cumulate a.tl l�wn and likely misstatements identified during the audit,
other than those that are trivial, and communicate them to the appropriate level of management. The attachect
schedule summarizes uncorrected misstatements of the financial staxements. Management has determined that
their effects are immaterial, both individually and in the ag�egate, to the ftnancial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional s#andards define a disagreement with management as a financiai
ac�ounting, reporting, or auditing matter, whether or not resolved to ow satisfaction, that could be significant to
the financial statements or the auditor's report. We are pleased to report that no such disa.greernents arose during
the course of our audit.
Management Representatioirs
We have requested certain representations from management that aze included in the management representation
letter dated March 27, 2012.
�lillage of Tequesta
March 27, 2012
Page 3
Management Coirsultations with Other Independent Accountants
In sorne cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a"second opinion" on certain situations. If a consultation invoives application of an
accounting principle to the Vil}�ge's financial statements or a determination of the type of auditor's opinion that
may be expressed on those statements, our professional standards require the consulting aecountant to check with
us to determine that the consnitant has ail the relevant facts. To our knowledge, there were no such consultations
wiifi other accountan#s.
Other Audit Findings or Issues
We generally discuss a variety of matters, inc�uding the applicaxion of accounting principles and audiring
standards, with raanagement each year prior to retention as the Viltage's auditurs. However, these discussions
occurred ia the normal course of our professional relationship and our responses were not a candition to our
retention.
Other information in Documents Containing Audited Financial Statements
With respect to the supplementary iafor�ation accompanying the financial statements, we made certain
inquiries of management and evaluated the form, content and methods of preparing the information to
determine that the information complies with accounting pri.nciples generally accepted in the United
States of America, the method of preparing it has not changed from the prior period, and the informa#ion
is appropriate and complete in relation to our audit of the financial statements. We compared and
reconciled the supplem�ntaay information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
This infarmation is intended sotely for the use of the Village Council, Village Manager and Finance Director and
management of the Village of Tequesta and is not intended to be and should not be used by anyone other than
these specified parties.
Very truly yours,
'�ah,G,l�C, LG�
Marcum LLP
West Palm Beach, FL