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ACCOUNTANTS ,& ADVISORS
March 29, 2018
To the Honorable Mayor, Village Council and Village Manager
Village of Tequesta
345 Tequesta Drive
Tequesta, Florida 33469
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of Village of Tequesta
(the Village)for the fiscal year ended September 30,2017. Professional standards require that we
provide you with information about our responsibilities under generally accepted auditing
standards and Government Auditing Standards as well as certain information related to the planned
scope and timing of our audit. We have communicated such information in our letter to you dated
November 30,2017.Professional standards also require that we communicate to you the following
information related to our audit.
Silanificant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The
significant accounting policies used by the Village are described in Note I to the financial
statements.No new accounting policies were adopted and the application of existing policies was
not changed during the year. We noted no transactions 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 the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and
are based on management's knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive because of
their significance to the financial statements and because of the possibility that future events affecting
them may differ significantly from those expected. The most sensitive estimate affecting the
Village's financial statements was:
Management's estimate of the net pension liability (asset) in accordance with GASB
Statement No. 68 and GASB Statement No. 67 is based on actuarial methods and
assumptions used by the actuaries for the development of the funding valuations as well as
the accounting valuations. The key factors impacting the assumptions, such as change in
market conditions, are subject to change on an annual basis and therefore can have a
significant impact on this estimate. We evaluated the key factors and assumptions used to
develop the estimate described above, in determining that it is reasonable in relation to the
financial statements taken as a whole.
6M
MARCIAIGROUP
MEMBER
Marcell LLP • 525 Okeechobee Boulevard a Suite 750 a West Palm Beach,Florida 33401 - Phone 561.653.7300 * Fax 561.653,7301 - maraimllp.com
Village of Tequesta
March 29,2018
Page 2
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. The most sensitive disclosures affecting the financial statements were:
The net pension liability (asset) footnotes to the financial statements required under
GASB Statement No. 68, Accounting and Financial Reporting for Pensions—an
amendment of GASB Statement No. 27,which requires the Village to recognize a net
pension liability(asset) in their financial statements as described above.
GASB Statement No. 72, Fair Value Measurement and Application disclosures for certain
assets and liabilities.
The financial statement disclosures are neutral, consistent,and clear.
Difficulties Encountered in Performing the Audit
We encountered no difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are clearly trivial,and communicate them to the appropriate
level of management. We noted no such misstatements to be communicated.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting,
or auditing matter, whether or not resolved to our satisfaction, that could be significant to the
financial statements or the auditors' report. We are pleased to report that no such disagreements
arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated March 29,2018.
Management Consultations with Other Independent Accountants
In some 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
involves application of an accounting principle to the Village's financial statements or a
determination of the type of auditors' opinion that may be expressed on those statements, our
professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts.To our knowledge,there were no such consultations with other
accountants.
Village of Tequesta
March 29,2018
Page 3
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the Village's auditors.
However,these discussions occurred in the normal course of our professional relationship and our
responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to management's discussion and analysis, budgetary
comparison information, and schedules of funding progress, changes in the Village's net pension
liability and related ratios, Village's proportionate share of the net pension liability for FRS,
Village contributions and investment returns which are required supplementary information(RSI)
that supplements the basic financial statements. Our procedures consisted 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 did not audit
the RS1 and do not express an opinion or provide any assurance on the RSL
We were engaged to report on the combining and individual fund financial statements and
schedules, which accompany the financial statements but are not RS1. With respect to this
supplementary information, 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 principles generally accepted in the United States of America,the method of preparing
it has not changed from the prior period,and the information is appropriate and complete in relation
to our audit of the financial statements. We compared and reconciled the supplementary
information to the underlying accounting records used to prepare the financial statements or to the
financial statements themselves.
We were not engaged to report on the introductory and statistical sections, which accompany the
financial statements but are not RSL We did not audit or perform other procedures on this other
information and we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the use of the Honorable Mayor and Village Council 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,
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Marcum LLP