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HomeMy WebLinkAboutAgreement_General_04/10/2008 (4)r~4/ ~w~ ~e~Ga 1C1: 1.3 7~~V4.3~b'~ I L JtkkYC:HlU(_:LA HAGS 02 ©4/0:312p08 6:55 3053778331 RACHLIN PAGE 01/07 ^ ~~ ~~ ijCCCUflt9fl64 ^ 7dV180~8 March 26, 2008 Hanorablc Mayor. Village Council and Vi11Age Manager ~%illage of Tequcsta 345 Teyueeta Drive. 'Tcqucsta,p'L 3369 We. era pleased to confirm our understanding of the continued services we arc to provide w the Vil~age of Trqu.esta (the Village) for the year ending Scptl*_naber 30, 2008. Wo will audit tl~c frnxntiltil statements of tht governmcr+tal itctivities, each. major fund, artd the aggregate t~eraainitag fund information, wltich collecttve,ly comprise the entity's basic rnarxcial statements of the Ville$c, as of and for the year ceding September 30, 2006. The document we submit to you wi]! include Chc f'ollowieg additional information rtquired by generally accepted accounting principles that will be subjeCtnd tcy the :<uditing procediues applied in our audit of the financial statements upon which we will provide an opinion i» relation to the basic financial siatcmenis: ! , lvlataaQcmcnt'a biscussion end Aslaly8it: 2 Cornl~ining and individual fund financial statctncnts 3. Required supplementary infortraatiom 4. Schmdulc ofcxpcnditures of federal awards alnd state financial assistance, as applicable. Audit pb jeetives The objective of our audit i9 the expression off' an opinion as to whether your financial statements arc fu~,r.ly preseet¢d> itt all tttateria] rot3pccts, in conformity with U.S. genarslly accepted accounting principles and to report on the fairness of, the additional information referred to its the first paragraph whom considered in relation to the financial staterruents taken as a whole. Tne objective also tneludfis frporting onw- • Internal control related to the financial. statements and eotxtpliance with laws, regulations, and the provisions of contteets or grant agreements, noncompliance with which could have a material effect ort the financial statements in accordance with Government ~lt~diling Starjdards. Internal control related to major programs and an opinion (or disclaimer of apitaion) on complianta with laws, regulations, and the provisions of contracts ar grant agrecmGr-ta that could leave a direct and rtaaterial effect on each major progt-am in aacordat',cC with the Single Audit Act Amendments v> 1996 and OMB Circular A-133, Audits of states, Local Gnv~rnr~entP, GUtd ,Non-Profit Organiratio+ts arid. the Florida Single Audit Act and Chapter 1.0.530, Rules of the Auditor General of t17ie State of Florida. ~~~ Recldin ur . one Soutne•at Thsro Avenue ~ Tenth 1=1oor . Miami, 6loride 33131 . t~•n~ 3+Oti,3~7.•22d . ti~w 3otS,3T7,8331 ^ wrrl~rll~clltlin.COln Art lndepQnO~q+ MerirOer o! RAN9r filly /ntarnitlana! M I A NI i - O R t l A U•[ R• A l[ • w[ t Y - A 1 M •[ A C M Y/ V,/ [.. iV. 1J JJYYJJVJ(L JGRfCTI~I-ll Ul~~.:H THUG CJ .3 J~^4in'3/200~ 09:55 305377331 RACHI.IN F~At;E X2/07 Honorable Mayor, Village Council and Village Mattager Village of Tequesta March 26, 2008 r~g~ The reports on intertanl control and compliance will each include a statcrracnt that the report is intendCd for the informatior and use of the Village, martagernent, specific legislative or regulatory bodtts, fcdexal and state awarding agertoice, and if applicable, pass-through entiti¢s and is not intcndtd to be and should not be used. by anyone otllor than these specified patties. As applicable, our audit will lx ccmdueted in accords»eC with U,S, generally accepted auditing standards; the standards for financial auditA contained in Cover•nment.l,udi~ing Standards, issued by the Comptrvlier General of the United Stotts; the Single Audit Act Amcrtdrttents of 199b; and the provisions of OMH Circular A-1 ~3, +he Florida Single Audit Act and Gha.ptar l0.SS0, Rules of the Auditor General of th.C State of Florida, and will includr tests of accounting records, a dettarmination of major program(s) in aacordaztec with Circular A• 133 and the l; lorida Single Audit Act, and other procedures we consider rtcccssary to enable us to express such tut opinion and to render the required rtparib. If our opinion on the finaneiai statatnents or the Single Audit compliance opinion. is other than unqualified, wt will fully discuss the rcaset,a with you itt advance. if, far any reason, wa are unable tin complete the audit or arc unable to farm or have not formed an opinion, we may decline to txproes an opinion or to issue a report as a result of this engagcmcxit. MAnagcment l~,esponaibilhies Management is responsible far establishing and maintaining internal control and for eompliau~ce v~•it'r, the provisions of applicable laws, regutabons, contracts, agreements, and grants. lh fulfilling this regpansibility, estimatt5 end judgments by management art required to assess ttllC expected benefits and related costs of the controls. The objcetivts of internal control arc tv provide manegamcttt witlY reasonable, but not ®bsolute, assurance that assets ace safeguarded against }oss &rom unauthorised use ox disposition, that transactions arc executed it1 accordance with tnanagctxtent's authorizations and recorded properly to pccmit the preparation of financial statcntente in accordance with, gCncrally accepted accounting principles, and t}iat federal and state award programs arc rtianaged in compliance with applicable laws and regulations and the provisions of cvrtctaats er,d grant agreements. ~!tanagem~crat is responsible for making all financial records and related information available to ua, including arty significant vendor relationships ih which tlic vrsrtdor has the re;mponsibi)ity for program compliance. VJe uradtratand that you will provide us with such information required for our audit and that you arc responsible far the accuracy and comp-ctcne~s of that information. We will advive you about appropriate accounting pxinciplea and their application and wilt assist in the preparation of your financial stutcrrxants, including the achodule of expcxtdituza3 of federal awards and start financial assistance, but the responsibility for the finanoial statEmtnte remt-ins with you. Aa part of our engagerr-ent, we may propose standard, adjusting, or correcting journal entries to your financial statements. You arc rrraponsible for reviewing the entries and understanding the nature of any prapOSCd entries ar+d the impact they have on the Fnancial StatC171Cnts. That 1'ESpOt191b11.11'y tncludCS the cstttblishment and ,maintetunce of adequate rCCrlydS and cficchve internal Contto! ovar finanoial roparting ar+d oocnplianoc, the selccl:ion sy,d application of accounting principles, and the safc~uarding of agaeM. Management is re*sponeibie for adjusting the financial etatemonts to corrcck material misstatements and far cotiflxnting to u9 iii the ~achlin duCbunt9nflt ~ NMIlIQPg b4/b4/Lbb~i 1b: 1.3 y~44,~5bylL 9$; i;3i ~©F~8 t~5: 55 305377R~~1 Honorable Mayor, Village Ceuncil and Village Manage? Village of Tequesta March 2G, 2008 Page 3 JtkkYUH1000A Rc1CHt_ IN rr~US= e4 R'~1GE 03/ 07 representation totter that dte affects of any uncorrected misstatcrnents a~tgrettated by ua during the current engagement and p¢xtaining to the latest pet7ad presented art immaterial, both individually attd in tI~e aggregates, to the financial statements taken as a where, Yau art responsible for the dcsigrt and implementation of programs and controls to prevent and detect fraud, and for ittferming us about all known or suspected gaud or illogal acts af~'ceting the government involving (a) managctt~tnt, (b) tmp3oyets who have significant roles in lntemal contral, and (e) others where the fraud could have a material affect on the fittatteisl statements. You ere also tesponsiUlt for informing us of your knowledge of any allegatyons of fraud or suspected fraud or illegal acts affecting the government received in con~n,,u»ications fiom ctnployees, former. errtployeea, grantors. regulators, err others. In addition., you arc responsiblt for identifying and cnsu.r-irrg tl~t kha enhty complieR with applicable laws And regulations and for t®kin,g titnoly and appropriate steps to remedy any fraud, illegal acts, violations of rvntracts or grant agreements, or abuse that we may rEpott. Additionally, as required b:v ~MF3 circular A•t33 and Chapter l0.SS0 Rules of the Auditor Crerreral, tt s tnarraga~mcnt's respansibility t0 .follow up and take corrective action on repented audit findings attd to prepare a sutnrrtary schedule of prior audit fndings attd a contctive Action plan. As port of our audit, we will assist ira the pxtparatien of a draft of your financial statements, schedule of expenditures of federal awards and state financial assistance and related notes. In accordance ~iovcrnment Auditing Standards, you will be required to review and approve those financial statements prior to their ~asuanae anal have a resportsibility to be in a positron in fact and appearance to ntakc an Informed judgment on those financial statements. Further, you arc rcqui,rGd to designate a qualified rnanagemettt-level individual to be respansiblc for ovtraceing our services. Audit Procednrea~-~-General Alt audit includre Cxaminirtg, oa a test basis, cv3dence supporting the atnount4 and disolosures in the financial statements; thCre~fore, our audit will involve judgment about the numbci- of transactions to be ezargincd sad the areas to be tested. We will plant and perform the audit m obtain reasoxtablc rxtlter than absolute assurance about whether the financial statements art free ofmatcrial misstatetrient, whether from (t) errors, (2) fraudulent financial reporting., (3) misappropriation of assets, or (4) violatiene of laws or governmental. regulations that arc atttibutablt to the entity or to acts by management ar etnployse3 actittg on behalf of the entity. Because the detertninution of abuse is subjective, Gover-tnterit Auditing Standards do not expect auditors to provided reasonable assurance of detecting abuao. As required by the Single Audit Act Amcndmerits of ] 996, OMB Crrcular A-133, the Florida Single Audit Aot, and Chapter 10.550 Rules of nc~ .Auditor Cenaral, our audit will include tests of transactions related to major federal and state award programs for compliance with applicable laws and regulations and the provisions of aontraeh and grant agreements. Because an audit is designed tv provide rtasor>,able, Uut nat absolute assurance and because we will not perform; a detailed exatninatian of all transactions, there ie a risk that material m~sstaterrtents or noncompliance may exist attd not he defeated by u._ to addition, an audit is not designed to detect immaterial rnisgtatcsnenta or rriolatiotls of laws or govcrr-mcri.tAl regulations that do not have a dirtct and mntenal effect on the financial statements or majar pregratrte. However, we will inform you of ~~hlin ~~CUUnLpnLq ~ nduUmnA 04/04/2008 10:13 9544356972 JERRYCHIOCCQ F'F~UE= b5 r^x103/2006' 09:55 305?778331 RACHLIN PI~GE 0a/!~7 Honorable lVl:ayor, Village Council and Vi11Rgc Manager V~ilage of Tequcsti wiarch 26,1008 Page 4 any material errors and any fraudulent finaracis] reporting ar rttisappropriati,ozf of snsets that nomts to our attention. We will also inform you of any violations of laws or govarnmetrtal regulations that come to our attention, unlcrs clearly inconsequtntlal. We wilt include such matters in the sports required. for a Single Audit, Our reaponsibifity as rrwditors is limited to the period cavcred by our atuli~ and dote not extend to matters that might aria during any later pcr'iods for which we are not engaged a$ auditors. C?ur liabilities far this crtga$ement acre ltr»itcd to tits fees paid #'or the work performed. Our procedures will include teats of doourttentary evidtnce suppat-ting tht transactions reeordtd in the accounts, and may ine]ude bests of the physical cxiStenCt bf irtverrtorie3r and direst confirmation of recervables anal certain otlttr gssats and Iiabilitits by correspondence with sclcctcci individuals, creditors, and financial institutions. We will request written representations frond your attorneys ag part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, wt will aieo require ~crtain wYitten re~presentabpns fmm you about the financial statements and rtiatcd matters. Audit Pruccdurea-internal Controls In plasu~ing and performing oux audit, wt will consider the intcmal control. sufficient to plan t)tt audit in order to determine the nature, timing, ar+d extent of our auditing procedures for the purport of expressing our opinions on the Village of Tcqutsta': basic financial statements and on its complraz,cE with rcquircrncnts applicable w major programs. We wr)1 obtain an undcret2,r*dit~g of the dcsigtt of the relevant controls and whether they have been placed irx rrparation, anal we will assess control risk. Tests of controls may be perforxntd to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors a»d fraud that arc material to the financial statements and to preventing and detecting niisstatcmcnts resulting from iIleae] acts acrd other noncompliance rnsttexs that have a diract and matet'ial effect on the ftnanaial statcrratnts. Tests of corttrgls relative to the financial statements are required only if control risk is assessed below the maximum lave]. Uux tests, it' performed, wit] be less in scope than ~wauld be ncecssary to render an opinion on irrernal control ®r,d, accordingly, nv opinion will be expressed in our rCport an internal control issued pursuant to Gavernnienl Audiling Slarrdards• :~s applicable, as required by OMB Circular A-133 and Ghaptex 10.S50 Rules of the Auditor GenCral, we will perform tests of controls over compliance to cvaluau the effectiveness of the design al~d operation ot~ controls chat we cotlaidat relevant w preventing or detecting msterisl noncompliance wish, compliance requirements applicable to each major federal and staff swprd program. However, our teats will be less m scope than would be neeeassry to render an opinion on those controls xnd, accordingly, no opitniort Will ba expressed in our report ore internal control issued pursuant to OM$ Circular A-133 artd Chapter 10.55D Rules of the Auditor C3eneral. 11n audit i5 not designed to provide assurtnee on internal control or to identify deficiencies. Ho~vevcr, during the audit, we will cornnounicate to you and those charged with governance #nternal control related matters that are required to be communicAted under standards tstahlished by the. American Rachli~n A~cnuntanf,R • Mlmsora 'b4/b4/Lbbti lU':1.~ 7~443~b7/L .JCtCf[71.n1uL.l.H ~ ~~-+~. ~~! i~4/i~3/^L~Ots [~9: ~5 3053776331 RACHLIM PAGE e5/07 I•iono;rable Mayor., Village Council anal Villagc Manager Villagc ofTequesca iVfarch 26, X008 Page 5 Institute of Certified Public Accountants. Sigaitfeant deficiencies lrtvolve mattore coming to our attccttion relating to deficiencies in the design or opet'ation of the internal conhol that, in our judgnntnt, could adversely affect the entity's ability to record, process, summarize, and report francial data cotcsiatcnt with the assertions of management in the financial statetaenta. We will. also inform. you of any deficiencies or ether matters involving inttmal control, if any, as regwred by Government Auditing Standards, OMB Circular A-133, And Chapter 14.SS0 Rulos of the Auditor 4enerai. Audit Proredgres`-~Coaapliance par audit wil] be conducted in accordance wits. the standards ret'erted to itt the section title8 Audit Objectives. As pact of obtaining reasonable assurance about whether the financial statements arc free of material misstaterraent, we will pCrform tests of the Village's compliance with applicable laws and regulations end the provisions of contracts and agzcements, including grant agreements. llowevcr, the objective of those procedures wil! trot br to provide an opinion on o~~crall compliance and we will not cxpross such an opirnota in our report nn compliance issued pursuant to C,ovsrn,na-tt Auditing Standards. bM8 Circular A-133 acrd Claaptct 10.550 Rules of t}te Auditor General require that we also plan and perform the audit to obtairl reasonable assurance about whither the auditee leas complied wish applicable laws at)d xeatllations and the prov~siotts of cvntraata and grant agreusrraents applicable to major pxograrns. As applicable, our procedures will consist of the applicable procedures described in tltc FMB Circadar A- 1.~3 Compliance .Supplement for the types of compliance requireaxaetats that could lases a direct and material effect on each of the Vlllage's majox programs. The purpose of those proccdurta will be to exptt•sa art opinion on the Village's compliance with rtgwretncnts applicable to each of its major programs in out report on compliance issued pursuant to OMB Circular A-133 and. the Florida Single Audit Act. Audit ,~dtxiinistration, Fees, send Qther We undcxstand that your employees will prepare all cash, accounts r¢ccivable, or ocher confrmatinns we request and w-11 locate stay invoices selected by us for testitaQ. Ai the conclusion of the eggagctracnt, we will cornplete the af+propriatc s~tions of and sign rho Tlata Collection Form. (required under Federal Single Audit Act only) that sumrzaarizvs our audit findings. Vl%e wall provide our reports to the Village; however, it is management's responsibility to submit the reporting package llneludinlt fnancial statements, schedule of expenditure9 o:f federal awards and state financial assistance, summsuy schedule of prior audit findings, auditors' reports, and a corrective action plan) along with the Data Collection dorm to the desigrta!ed federal clearinghouse and, if appropriate, to pass-through entities. 'The Data Collection Form atad the reporting package must be submitted within the earlier of 30 days after receipt of the auditor'' reports or nirct months after the end of the audit period, unless a longer period is agreed to In advanCC by ills Cb$nlzant or pVCralght agCrlCy for audits. At the CVnC1us1Vr1 Of the engagemcrlt, we ti~vill provide in,forz~natian to mEUCagcment as to where the reporting pacltagce should be submitted and the number to submit. Rachlin eCCOUntents -eAvlam'S d4/84/1bbt~ lb: lb y544.~5byrL JtKKYI.;I-ilUl:l~(-~ I-'flat nr ~+~~'0i;00? 09:55 305:~77g331 hACWLIr~ ~'ArE ~t~`~l7 honorable Mayor, Village Council and Village ,Manager Village ofTequasta March ?6, 2p08 ~'xee d 'I'ha audit documentation for this cngag¢mcnt is the prpperiy of Itachlin LLP and constitutes confidential infomnation. However, pursuant to authority given by law or regufsrtion, wo may be requeseed to make certain audit documentation availablf to a rvgutatary or grantor agency for purposes of a quality review of the audit, to resolve andit findings, or to carry out oversight responsibilities. We will notify you of any such request, If requested, access to such audit documentation wi)1 bt provided under the supervision of Rachlin personnel. Furthtrmore, upon request, we may provide copive of arlreted audit documentation to the aforarnentioned parties. These parties may intend, or decide, to distribute the cbpias or inforn+ation contained ti,crcin to others, including ether governmental agencies. The audit documentation for this engagement will bt roamed for a minimum of three years aRtt the Batt the auditors' t~ef+ott is issued or for an_y additional pe1'iod roQueeted by the regulatory oz grantor agency. If we are aware that a federal awarding agency, pegs-through ettt{ty, or auditee is contesting at+ audit finding, we will contact the party (ies) contesting rise audit finding for guidance prior to destroying the audit documentation. We estimate that our fees for this cttgagctncttt will bt $70,500 for the audit of the Village's basic financial statements (excluditt~ Federal or Florida Single Audit Act requiremcnt9 ,sec bCIOW). These fees are combined to include the audit, ongoing (3ASB asaiatance and ccmtinued work relgtive to the new standards- Owr hourly rates vary accardin,g to the degree of responsibility involved. and the expCrience lrcel of the persctutcl asaigntd to the audit. 7"he above fee is based on anticipated cooperation firom your personnel and the ussurnptior- that unexpected circumstances will trot be tneouhttrtd during the audit. If additional lima is taquircd because of unexpected circutatstanccs or for changes in the requirements of the Governmental Accounting Standards Village of our professional auditing standards or ahangas in the :funds structur¢ of the Village, we will discuss these ciroumata»ccA with you slid smut at a new fee estimate before we recur the additional costs. In addition, if the Village is required to undergo an audit in accordance vwth tbt Fcdcxal Single Audit .A.ct and C7MA Circular A-133, Audits of Slates, Local Governnrent.4, and Mot for-Pmf t Organizations R.pceiving Federal Award', the additional fee wrll be S8,000. 'T'his foe is dependent on tlxo dumber of federal programs that have tb be tested as R major program in accordance with the requirements of the Federal Single Audit Act and OM.F3 Circular A-133. If, the ~`illagc zs subject to the 1"Iorida Single ,Audit Act aztd Chapter 14.50 Rules of the Auditot General, the additional fee will be $8,000. Thiv fcC is dependent on the number of state prvRzatns that have to be tested as a trrajor prog)rttrrt its accordance with the requirements of the Florida 3ittglc Audit Act anal the Rules of the Auditor C3entral, Chapter 14,550. Our invoices for these face will be rendered as the work progressua, and are payable on presentation. In accordance with our frrm policies, should any invoices remain unpaid for more than thixt_y days, we rescr've rite right to defer provid{ttg any additionrrI services until all outstarxding invoices era paid. A loll payment char6c of 1% per month will be added to all tmpatd balancc$ after thit~y days. You agrx that we ate not responsible for the irrrpnct on the Village of spy delay that rtssulta from tiuch nee-payment by }'ou. Ra~hlin arrountenCB ~ edv~eara 04/04/2008 10:13 9544356972 JERRYCHIOCCA PAGE 08 li4!~~;3i'iOC~$ ~~^: ,5 3053778331 RACHLIN FkGE. 07/07 I-IonorablK Meyor, Village Council and Village Manager Village of Tequcsta March 26, 2008 Aage 7 We aelrnawledge yout' right. to terminate our services at eny time, and you acldao~.vledgc our r~lght to resign at any tit»c (including instances where in our judgrnttyt, our independence has barn impaired or we can no longer rtly on the integrity of management), subject in either case to our right to payment for charges incurred to the date of krnaination or rcyigttittian. It is our goal to maintain a constructive and positive relationship with you. If for any reason you are dissatisfied with rhC quality or costs of our services, please let us know so ive can discuss and, hopefully rectify the problem. Should we be ty~ablc to a.ttticably resolve any such dispute, we believe a pxornpt and fair resolution, w,thout the time and expenPC of formal total proceedings, would Ue in our mutual int~:sts. 7o this end, we both agree that any eontrovtrsy (includmg fee disputes and rttl~lpractice claims) y~c may have shall be submitted to binding arbitrildon to be conducted in k'lorid~ btfore the American ~`a-btttatiorz .Association (AAA) in accordance with the Commercial Arbitration Rules of the AAA. We both waive any right to bring a court action, or to have a jury trial, and agree that the party prevailing in; any arbitrat{an steal: be entailed to recover from the non-prevailing party its reatonablc attorney's Eels and costs, including fees and costs wl»ch migktt be incurred in litigation related to the arbitration. In accordance with our firm's politics, the terr»s of this engagement fetter are subjeat to approval by ou: internal Cheat Acceptance Committee. Crovernm~nr Audilirtg Standards require thai w•t provide you with a copy of our most recent quality control review report. Our nraost recent (dated 2407) peer review report lass been pror7ded to you. We appreciate the opportunity to be of continued scrv~ce to the Village: and beliCvc this letter accurately summarizes the significant terms of our engag~tnt. )i(you have any questions, please let us lmow. If you agree with the terms of our cragagcrtient ms described an this letter, please sign the rnclosed copy and return it to us. Si+~cerely, C: rry Chaocca, CPA Pat~tner RES,POIVS);: R~~chlin srrnnnasntP • edvianrn ATTEST: dirn.~ -~lcu.~ee~~- Lori McWilliams, CMC VILLAGE OF TEQUESTA ----~--~ Michael Couzzo TO FORM AND LEGAL ~%w~