HomeMy WebLinkAboutAgreement_General_06/08/2017 (4) MARCUM
ACCOUNTANTS-a ADVISORS
February 20,2017
Honorable Mayor,Village Council and Village Manager
Village of Tequesta
345 Tequesta Drive
Tequesta,Florida 33469
Re: Engagement of Marcum LLP
We are pleased to confirm our understanding of the services Marcum LLP("Marcum,"the"Firm,"
"we,""us"or`bur")are to provide the Village of Tequesta(the Village)(the"Organization,""you"
or"your") for the year ending September 30, 2017. We will audit the financial statements of the
governmental activities,the business-type activities,each major fund,and the aggregate remaining
fund information, including the related notes to the financial statements, which collectively
comprise the basic financial statements of the Village as of and for the year ending September
2017. Accounting standards generally accepted in the United States of America provide for certain
required supplementary information (RSI), such as management's discussion and analysis
(MD&A),to supplement the Village's basic financial statements. Such information,although not
part of the basic financial statements, is required by the Governmental Accounting Standards
Board who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. As part of our
engagement, we will apply certain limited procedures to The Village's RSI in accordance with
auditing standards generally accepted in the United States of America. These limited procedures
will consist of inquiries of management regarding the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries,the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We will not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance. The following RSI is required by generally accepted accounting principles and will
be subjected to certain limited procedures,but will not be audited:
1) Management's Discussion and Analysis
2) Schedule of Changes in the Village's Net Pension Liability and Related Ratios
3) Schedule of Village's Contributions—Pensions
4) Schedule of Investment Returns-Pensions
5) Schedule of Funding Progress—OPEB
6) Budgetary Comparison Schedules
MAR(xJMGROUP
MEMBER
Marcum LLP ■ 525 Okeechobee Boulevard ■ Suite 750 ■ West Palm Beach,Florida 33401 ■ Phone 561,653.7300 ■ Fax 561.653.7301 ■ marcumllp-com
Village of Tequesta
February 20,2017
Page 2
We have also been engaged to report on supplementary information other than RSI that
accompanies Village's financial statements. We will subject the following supplementary
information to the auditing procedures applied in our audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to
the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America, and will provide an opinion on it in
relation to the basic financial statements as a whole :
1) Combining and Individual Fund Financial Statements and Schedules
2) Schedule of Expenditures of Federal Awards and State Financial Assistance,as applicable
The following other information accompanying the basic financial statements will not be subjected
to the auditing procedures applied in our audit of the financial statements,and our auditors'report
will not provide an opinion or any assurance on that other information.
1) Introductory Section
2) Statistical Section
Audit Objectives
The objective of our audit is the expression of opinions as to whether your basic financial
statements are fairly presented,in all material respects,in conformity with U.S.generally accepted
accounting principles and to report on the fairness of the supplementary information referred to in
the second paragraph when considered in relation to the financial statements as a whole. The
objective also includes reporting on:
• Internal control over financial reporting and compliance with provisions of laws,
regulations, contracts, and award agreements, noncompliance with which could have a
material effect on the financial statements in accordance with Government Auditing
Standards.
• Internal control over compliance related to major programs and an opinion (or disclaimer
of opinion)on compliance with federal statutes, regulations,and the terms and conditions
of federal awards that could have a direct and material effect on each major program in
accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The
Government Auditing Standards report on internal control over financial reporting and on
compliance and other matters will include a paragraph that states that (1) the purpose of
the report is solely to describe the scope of testing of internal control and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the entity's
internal control or on compliance,and(2)the report is an integral part of an audit performed
Village of Tequesta
February 20, 2017
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in accordance with Government Auditing Standards in considering the entity's internal
control and compliance.The Uniform Guidance report on internal control over compliance
will include a paragraph that states that the purpose of the report on internal control over
compliance is solely to describe the scope of testing of internal control over compliance
and the results of that testing based on the requirements of the Uniform Guidance (and
Rules of the Auditor General of the State of Florida),as applicable. Both reports will state
that the report is not suitable for any other purpose
Our audit will be conducted in accordance with auditing standards generally accepted in the United
States of America;the standards for financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; the Single Audit Act Amendments of
1996; the provisions of the Uniform Guidance,the Florida Single Audit Act and Chapter 10.550,
Rules of the Auditor General of the State of Florida and will include tests of accounting records,a
determination of major programs) in accordance with the Uniform Guidance,the Florida Single
Audit Act, Chapter 10.550, Rules of the Auditor General for the State of Florida Act and other
procedures we consider necessary to enable us to express such opinions. We will issue written
reports upon completion of our Single Audit. Our reports will be addressed to the Mayor,Council
and Village Manager of the Village.
We cannot provide assurance that unmodified opinions will be expressed.Circumstances may arise
in which it is necessary for us to modify our opinions or add emphasis-of-matter or other-matter
paragraphs. If our opinions on the financial statements or the Single Audit compliance opinions
are other than unmodified,we will 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 opinions,we may decline
to express opinions or issue reports,or may withdraw from this engagement.
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. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements. 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(1)errors,
(2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or
governmental regulations that are attributable to the Village or to acts by management or
employees acting on behalf of the Village. Because the determination of abuse is subjective,
Government Auditing Standards do not expect auditors to provide reasonable assurance of
detecting abuse.
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February 20, 2017
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Because of the inherent limitations of an audit, combined with the inherent limitation of internal
control, and because we will not perform a detailed examination of all transactions,there is a risk
that material misstatements or noncompliance may exist and not be detected by us, even though
the audit is properly planned and performed in accordance with U.S. generally accepted auditing
standards and Government Auditing Standards. 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 or major programs. However,we will inform
the appropriate level of management of any material errors,any fraudulent financial reporting,or
misappropriation of assets that come to our attention. We will also inform the appropriate level of
management of any violations of laws or governmental regulations that come to our attention,
unless clearly inconsequential and of any material abuse that comes to our attention. We will
include such matters in the reports required for a Single Audit. 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.
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, funding sources, creditors, and financial institutions. We will request written
representations from the Village's attorneys as part of the engagement, and they may bill the
Village for responding to this inquiry.At the conclusion of our audit,we will require certain written
representations from you about your responsibilities for the financial statements; schedule of
expenditures of federal awards and state financial assistance,if applicable; compliance with laws,
regulations, contracts, and grant agreements; and other responsibilities required by generally
accepted auditing standards.
Audit Procedures-Internal Controls
Our audit will include obtaining an understanding of the entity and its environment, including
internal control, sufficient to assess the risks of material misstatement of the basic financial
statements and to design the nature, timing, and extent of further audit procedures. 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. 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.
As required by the Uniform Guidance,the Florida Single Audit Act,Chapter 10.550,Rules of the
Auditor General for the State of Florida Act we will perform tests of controls over compliance to
evaluate the effectiveness of the design and operation of controls that we consider relevant to
preventing or detecting material noncompliance with compliance requirements applicable to each
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February 20, 2017
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major federal or state award program. However, our tests will be less in scope than would be
necessary to render an opinion on those controls and,accordingly,no opinion will be expressed in
our report on internal control issued pursuant to the Uniform Guidance, the Florida Single Audit
Act,Chapter 10.550,Rules of the Auditor General for the State of Florida Act.
An audit is not designed to provide assurance on internal control or to identify significant
deficiencies or material weaknesses. However, during the audit, we will communicate to
management and those charged with governance internal control related matters that are required
to be communicated under AICPA professional standards, Government Auditing Standards, and
the Uniform Guidance the Florida Single Audit Act,Chapter 10.550,Rules of the Auditor General
of the State of Florida.
Audit Procedures-Compliance
As part of obtaining reasonable assurance about whether the basic financial statements are free of
material misstatement, we will perform tests of the Village's compliance with provision of
applicable laws,regulations,contracts,and agreements,including grant agreements. However,the
objective of those procedures will not be to provide an opinion on overall compliance and we will
not express such an opinion in our report on compliance issued pursuant to Government Auditing
Standards.
Uniform Guidance, and the Florida Single Audit Act requires that we also plan and perform the
audit to obtain reasonable assurance about whether the auditee has complied with applicable laws
and regulations and the provisions of contracts and grant agreements applicable to major programs.
Our procedures will consist of tests of transactions and other applicable procedures described in
the OMB Compliance Supplement and State Compliance Supplement, if applicable for the types
of compliance requirements that could have a direct and material effect on each of the Village's
major programs. The purpose of these procedures will be to express an opinion on the Village's
compliance with requirements applicable to each of its major programs in our report on compliance
issued pursuant to the Uniform Guidance,the Florida Single Audit Act, Chapter 10.550,Rules of
the Auditor General of the State of Florida.
Management Responsibilities
Management is responsible for (1) establishing and maintaining effective internal controls,
including internal controls over compliance,and for evaluating and monitoring ongoing activities;
to help ensure that appropriate goals and objectives are met; (2) following laws and regulations;
(3) ensuring that there is reasonable assurance that government programs are administered in
compliance with compliance requirements; and (4) ensuring that management and financial
information is reliable and properly reported. Management is also responsible for implementing
systems designed to achieve compliance with applicable laws, regulations, contracts, and grant
agreements. You are also responsible for the selection and application of accounting principles;
for the preparation and fair presentation of the financial statements, schedule of expenditures of
federal awards and state financial assistance, if applicable and all accompanying information in
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February 20, 2017
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conformity with U.S.generally accepted accounting principles;and for compliance with applicable
laws and regulations and the provisions of contracts and grant agreements.
Management is also responsible for making all financial records and related information available
to us and for the accuracy and completeness of that information. You are also responsible for
providing us with (1) access to all information of which you are aware that is relevant to the
preparation and fair presentation of the financial statements, (2) additional 'information that we
may request for the purpose of the audit, and (3) unrestricted access to persons within the
government from whom we determine it necessary to obtain audit evidence.
Your responsibilities also include identifying significant vendor relationships in which the vendor
has responsibility for program compliance and for the accuracy and completeness of that
information. Your responsibilities include adjusting the basic financial statements to correct
material misstatements and confirming to us in the management 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 government
involving (1)management, (2) employees who have significant roles in internal control, and(3)
others where the fraud or illegal acts could have a material effect on the financial statements. Your
responsibilities include informing us of your knowledge of any allegations of fraud or suspected
fraud affecting the Village's received in communications from employees, former employees,
grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that
the Village complies with applicable laws, regulations, contracts, agreements, and grants.
Management is also responsible for taking timely and appropriate steps to remedy fraud and
noncompliance with provisions of laws,regulations,contracts,and grant agreements,or abuse that
we report. Additionally, as required by the Uniform Guidance and State Single Audit
Requirements, it is management's responsibility to follow up and take cornective action on
reported audit findings and to prepare a summary schedule of prior audit findings and a corrective
action plan. The summary schedule of prior audit findings should be available for our review
during field work,if applicable.
You are responsible for identifying all federal awards and state financial assistance, if applicable
received and understanding and complying with the compliance requirements and for the
preparation of the schedule of expenditures of federal awards and state financial assistance, if
applicable(including notes and noncash assistance)in conformity with the Uniform Guidance and
The Florida Single Audit Act. You agree to include our report on the schedule of expenditures of
federal awards and state financial assistance, as applicable, in any document that contains and
indicates that we have reported on the schedule of expenditures of federal awards and state
financial;assistance,if applicable.Your responsibilities include acknowledging to us in the written
representation letter that(1) you are responsible for presentation of the schedule of expenditures
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February 20,2017
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of federal awards and state financial assistance in accordance with the Uniform Guidance, the
Florida Single Audit Act, Chapter 10.550, Rules of the Auditor General for the State of Florida
Act. ; (2)you believe the schedule of expenditures of federal awards and state financial assistance,
if applicable, including its form and content, is fairly presented in accordance with Uniform
Guidance,the Florida Single Audit Act,Chapter 10.550,Rules of the Auditor General of the State
of Florida; (3)the methods of measurement or presentation have not changed from those used in
the prior period(or,if they have changed,the reasons for such changes);and(4)you have disclosed
to us any significant assumptions or interpretations underlying the measurement or presentation of
the schedule of expenditures of federal awards and state financial assistance, if applicable.
You are also responsible for the preparation of the other supplementary information which we
have been engaged to report on,in conformity with U.S.generally accepted accounting principles.
You agree to include our report on the supplementary information in any document that contains
and indicates that we have reported on the supplementary information.You also agree to (include
the audited financial statements with any presentation of the supplementary information that
includes our report thereon OR make the audited financial statements readily available to users of
the supplementary information no later than the date the supplementary information is issued with
our report thereon].Your responsibilities include acknowledging to us in the written representation
letter that(1)you are responsible for presentation of the supplementary information in accordance
with GAAP; (2) you believe the supplementary information, including its form and content, is
fairly presented in accordance with GAAP; (3)the methods of measurement or presentation have
not changed from those used in the prior period (or, if they have changed, the reasons for such
changes); and (4) you have disclosed to us any significant assumptions or interpretations
underlying the measurement or presentation of the supplementary information.
At the conclusion of the engagement, we will complete the appropriate sections of the Data
Collection Form that summarizes our audit findings, if applicable. It is management's
responsibility to submit the reporting package (including financial statements, schedule of
expenditures of federal awards, summary schedule of prior audit findings, auditors' reports, and
corrective action plan)along with the Data Collection Form to the federal audit clearinghouse.We
will coordinate with you the electronic submission and certification.If applicable,we will provide
copies of our report for you to include with the reporting package you will submit to pass-through
entities.The Data Collection Form and the reporting package must be submitted within the earlier
of 30 days after receipt of the auditors' reports or nine months after the end of the audit period,
unless a longer period is agreed to in advance by the cognizant or oversight agency for audits.
Management is responsible for establishing and maintaining a process for tracking the status of
audit findings and recommendations. Management is also responsible for identifying and
providing report copies of previous financial audits, attestation engagements,performance audits,
or other studies related to the objectives discussed in the Audit Objectives section of this letter.
This responsibility includes relaying to us corrective actions taken to address significant findings
and recommendations resulting from those audits,attestation engagements,performance audits,or
Village of Tequesta
February 20,2017
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studies. You are also responsible for providing management's views on our current findings,
conclusions, and recommendations, as well as your planned corrective actions,for the report, and
for the timing and format for providing that information.
You agree to assume all management responsibilities relating to the financial statements,schedule
of expenditures of federal awards and state financial assistance, if applicable, related notes, and
any other nonaudit services we provide.You will be required to acknowledge in the management
representation letter our assistance with preparation of the financial statements, schedule of
expenditures of federal awards and state financial assistance, if applicable, and related notes and
that you have reviewed and approved the financial statements,schedule of expenditures of federal
awards and state financial assistance, if applicable, and related notes prior to their issuance and
have accepted responsibility for them. Further, you agree to oversee the nonaudit services by
designating an individual,preferably from senior management,with suitable skill,knowledge, or
experience;evaluate the adequacy and results of those services;and accept responsibility for them.
We will distribute our reports at the conclusion of the audit to the Mayor, Village Council and
Village Manager. Unless restricted by law or regulation,or containing privileged and confidential
information,copies of our reports are to be made available for public inspection.
With regard to the electronic dissemination of audited financial statements, including financial
statements published electronically on your website, you understand that electronic sites are a
means to distribute information and, therefore, we are not required to read the information
contained in these sites or to consider the consistency of other information in the electronic site
with the original document.
Communication with Those Charged with Governance
As part of our engagement, we are responsible for communicating significant matters related to
the audit that are, in our professional judgment,relevant to your responsibilities in overseeing the
financial reporting process as well as other matters we believe should be communicated to those
charged with governance. Generally accepted auditing standards do not require the auditor to
design procedures for the purpose of identifying other matters to communicate with those charged
with governance. Such matters include, but are not limited to, (1) the initial selection of and
changes in significant accounting policies and their application; (2) the process used by
management in formulating particularly sensitive accounting estimates and the basis for our
conclusions regarding the reasonableness of those estimates; (3)all passed audit adjustments; (4)
any disagreements with management, whether or not satisfactorily resolved, about matters that
individually or in the aggregate could be significant to the financial statements or our report; (5)
our views about matters that were the subject of management's consultation with other accountants
about auditing and accounting matters; (6) major issues that were discussed with management in
connection with the retention of our services, including, among other matters, any discussions
regarding the application of accounting principles and auditing standards; (7) serious difficulties
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February 20,2017
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that we encountered in dealing with management related to the performance of the audit; and(8)
matters relating to our independence as your auditors.
Reproduction of Auditors' Report
If you intend to publish or otherwise reproduce the financial statements and make reference to our
Firm, you agree to provide us with printers'proofs or masters for our review and approval before
printing. You also agree to provide us with a copy of final reproduced material for our approval
before it is distributed. In addition,to avoid unnecessary delay or misunderstanding,it is important
that you give us timely notice of your intention to issue any such document.
If the Village elects to issue public debt and not have us associated with the proposed offering.We
agree that our association with the proposed offering is not necessary providing that the Village
agrees to clearly indicate that we are not associated with the contents of any such official statement
or memorandum. The Village agrees that the following disclosure will be prominently displayed
in any such official statement or memorandum.
Marcum LLP has not been engaged to perform,and has not performed,since the date of its report
included herein,any procedures on the financial statements addressed in that report. Marcum LLP,
also has not performed any procedures relating to this official statement.
Assistance By Your Personnel
We will ask that your personnel, to the extent possible,prepare required schedules and analyses,
and make selected invoices and other required documents available to our staff. This assistance
by your personnel will serve to facilitate the progress of our work and minimize our time
requirements.
You acknowledge that your confidential information may be transmitted to us through an
information portal or delivery system established by us or on our behalf. You shall notify us in
writing of your employees,representatives,or other agents to be provided access to such portal or
system; upon the termination of such status, you shall immediately notify us in writing. You
acknowledge that you are responsible for the actions of your current and former employees,
representatives, or other agents in connection with the transmission of your information.
Independence
Professional standards require that a firm and its members maintain independence throughout the
duration of the professional relationship with a client. In order to preserve the integrity of our
relationship, no offer of employment shall be discussed with any Marcum professionals assigned
to the audit,including within the one year period prior to the commencement of the year-end audit.
Should such an offer of employment be made, or employment commences during the indicated
time period,we will consider this an indication that our independence has been compromised. As
such, we may be required to recall our auditors' report due to our lack of independence. In the
event additional work is required to satisfy independence requirements, such work will be billed
Village of Tequesta
February 20,2017
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at our standard hourly rates. Furthermore, we strive to staff your engagement with quality,
superbly trained professionals. In recognition of the extensive investment we have made to recruit
and develop our personnel, we ask that you agree to the following. In the event that any of our
employees accepts a position of employment with your Organization, or any of its related parties
at any time while we are performing services for you or within one year thereafter, you agree to
pay us a placement fee equal to the employee's annual compensation in effect on the date such
employment was contracted. Such fee is payable when the employee accepts such a position.
Access to Working Papers
The working papers prepared in conjunction with our engagement are the property of Marcum and
constitute confidential information subject to the Public Records Laws of the Florida Statutes.
These working papers will be retained by us in accordance with applicable laws and with our
Firm's policies and procedures. However, we may be required, by law or regulation, to make
certain working papers available to regulatory authorities for their review, and upon request, we
may be required to provide such authorities with photocopies of selected working papers.
The Firm is required to undergo a"Peer Review"every three years. During the course of a Peer
Review engagement, selected working papers and financial reports, on a sample basis, will be
inspected by an outside party on a confidential basis. Consequently,the accounting and/or auditing
work we performed for you may be selected. Your signing this letter represents your
acknowledgement and permission to allow such access should your engagement be selected for
review.
As a result of our prior or future services to you, we may be required or requested to provide
information or documents to you or a third-party in connection with a legal or administrative
proceeding (including a grand jury investigation) in which we are not a party. If this occurs, we
shall be entitled to compensation for our time and reimbursement for our reasonable out-of-pocket
expenditures (including legal fees) in complying with such request or demand. This is not
intended, however, to relieve us of our duty to observe the confidentiality requirements of our
profession.
Third-Party Service Providers
The Firm may, from time to time, and depending on the circumstances, use third-party service
providers to assist us with the audit of your financial statements. We may share confidential
information about you with the third-party service providers,but remain committed to maintaining
the confidentiality of your information. Accordingly, we maintain internal policies, procedures
and safeguards to protect the confidentiality of your information. Furthermore, the Firm will
remain responsible for the work performed by such third-party service providers.
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February 20,2017
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Dispute Resolution Procedure, Waiver of Jury Trial and Jurisdiction and Venue for Any
and All Disputes Under This Engagement Letter and Governing Law
AS A MATERIAL INDUCEMENT FOR US TO ACCEPT THIS ENGAGEMENT AND/OR
RENDER THE SERVICES TO THE GOVERNMENT UNIT IN ACCORDANCE WITH
THE PROVISIONS OF THIS ENGAGEMENT LETTER
This Firm and the Village each hereby knowingly, voluntarily and intentionally waive any right
either may have to a trial by jury with respect to any litigation based hereon, or arising out of,
under or in connection with this engagement letter and/or the services provided hereunder, or any
course of conduct, course of dealing, statements (whether verbal or written) or actions of either
party.
This Firm and the Village each expressly agree and acknowledge that the Fifteenth Judicial
Circuit Court, in and for Palm Beach County, Florida and the United States District Court for the
Southern District of Florida, shall have exclusive and sole jurisdiction and venue for any
respective state or federal actions arising from, relating to or in connection with this engagement
letter, or any course of conduct, course of dealing, statement or actions of either party.
The terms and provisions of this engagement letter, any course of conduct, course of dealing and,
or action of this Firm and/or the Village and our relationship with you shall be governed by the
laws of the State of Florida to the extent said laws are not inconsistent with the Federal Securities
Laws and Rules, Regulations and Standards there under. In any litigation brought by either this
Firm or the Village, the prevailing party shall be entitled to an award of its reasonable attorneys'
fees and costs incurred, including through all appeals.
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 all direct and indirect charges incurred through the date of termination or
resignation.
Subject to and without waiver of the provisions of Section 768.28,Florida Statutes and the above
limitation of monetary liability, the Village hereby indemnifies Marcum LLP and its partners,
principals, and employees,and holds them harmless from all claims, liabilities, losses, and costs
arising as a direct result of a known and intentional misrepresentation of fact that is provided by
an employee or officer of the Village to the Firm for a matter applicable to the services which are
the subject of and being provided by the Firm under this engagement letter,regardless of whether
such person was acting in the Village's interest. This indemnification will survive termination of
this letter of engagement.
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February 20, 2017
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Other Services
We will perform,in accordance with Chapter 10.550,Rules of the Auditor General of the State of
Florida,an examination pursuant to AICPA Professional Standards,AT Section 601,promulgated
by the American Institute of Certified Public Accountants regarding the compliance of the
Village's with 218.415, Florida Statutes, Local Government Investment Policies. There is no
additional cost for this service.
We are always available to meet with you and/or other management personnel at various times
throughout the year to discuss current business, operational, accounting and auditing matters
affecting your Organization. Whenever you feel such meetings are desirable please let us know;
we are prepared to provide services to assist you in any of these areas. We will be pleased,at your
request to attend your Council meetings.
Timeline
Our engagement ends on delivery of our audit report. Any follow-up services that might be
required will be a separate,new engagement. The terms and conditions of that new engagement
will be governed by a new,specific engagement letter for that service.
Fees
In accordance with our contract with the Village, our fee for these services will be based on the
actual time spent at our discounted hourly rates. Our discounted hourly rates vary according to
the level of the personnel assigned to your engagement. For the 2017 engagement the fee will be
$60,724(excluding a federal or Florida single audit). The annual increase has been limited to 2%
per year. Our fee is based on certain assumptions, including the required assistance described
above. To the extent that certain circumstances include,but not limited to those listed in Appendix
A, arise during the engagement,our fee estimate may be significantly affected and additional fees
may be necessary. Additional services provided beyond the described scope of services will be
billed separately.
If the Village is required to undergo a single audit in accordance with the Federal Single Audit Act
and the Uniform Guidance during any year of this contract,we will discuss with you the additional
fees which will be dependent on the number of programs determined to be a major program based
on the determination required by Uniform Guidance.
If the Village is required to undergo a single audit in accordance with the Florida Single Audit Act
during any year of this contract, we will discuss with you the additional fees which will be
dependent on the number of programs determined to be a major program based on the
determination required by the Florida Single Audit Act.
Village of Tequesta
February 20, 2017
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Agreement
This letter comprises the complete and exclusive statement of the agreement between the parties,
superseding all proposals oral or written and all other communications between the parties. If any
provision of this letter is determined to be unenforceable,all other provisions shall remain in force.
It is hereby understood and agreed that this engagement is being undertaken solely for the benefit
of the Village of Tequesta and that no other person or entity shall be authorized to enforce the
terms of this engagement.
If you agree with the terms of our engagement, as described in this letter, please sign this PDF
version of the engagement letter and return it to us.
Michael D. Futterman, CPA is the Engagement Partner and is responsible for supervising the
engagement and signing the report or authorizing another individual to sign it.
This agreement is renewable at the option of the Village. We appreciate the opportunity to be of
service to the Village and believe this letter accurately summarizes the significant terms of our
engagement. If you have any questions,please let us know.
Very truly yours,
Marcum LLP
Michael D. Futterman,CPA
Partner
MDF/cmk
ACCEPTED
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APPENDIX A
Village of Tequesta
Circumstances Affecting Timing and Fee Estimate
The estimated fee is based on certain assumptions. Circumstances may arise during the
engagement that may significantly affect the targeted completion dates and our fee estimate. As a
result, additional fees may be necessary. Such circumstances include but are not limited to the
following:
1. Changes to the timing of the engagement at your request. Changes to the timing of the
engagement usually require reassignment of personnel used by Marcum in the performance
of services hereunder. However,because it is often difficult to reassign individuals to other
engagements,Marcum may incur significant unanticipated costs.
2. All requested schedules are not (a) provided by the accounting personnel on the date
requested, (b) completed in a format acceptable to Marcum(c)mathematically correct, or
(d) in agreement with the appropriate underlying records (e.g., general ledger accounts).
Marcum will provide the accounting personnel with a separate listing of required schedules
and deadlines.
3. Weaknesses in the internal control.
4. Significant new issues or unforeseen circumstances as follows:
a. New accounting issues that require an unusual amount of time to resolve.
b. Changes or transactions that occur prior to the issuance of our report.
c. Changes in the Organization's accounting personnel,their responsibilities, or their
availability.
d. Changes in auditing requirements set by regulators.
S. Significant delays in the accounting personnel's assistance in the engagement or delays by
them in reconciling variances as requested by Marcum. All invoices,contracts and other
documents which we will identify for the Organization,are not located by the accounting
personnel or made ready for our easy access.
6. A significant level of proposed audit adjustments are identified during our audit.
7. Changes in audit scope caused by events that are beyond our control.
8. Untimely payment of our invoices as they are rendered.
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