HomeMy WebLinkAbout Auditors-Coopers and Lybrand 1990C(� QQ certified public accountants 501 North Orange Avenue i in principal areas of the world
oo G r5 Orlando, Florida 32801.1397
&Ly rand � �
telephone (407) 843.1190 t ► �, i
MAR 23 1590
CITY of WIN I LN SPRINGS
D47
�=.. MANAGER
March 23, 1990 D47
rIA)
Mr. Richard Rozansky
City Manager
City of Winter Springs, Florida
1126 East State Road 434
Winter Springs, Florida 32708
Dear Mr. Rozansky:
Enclosed is our standard engagement letter relating to the audit
of the City of Winter Springs for the year ended September 30,
1990. As we discussed in our meeting with you and Mr. Martin, we
are proposing a fee cap of $26,000. We realize that this
represents an increase over your previous fee of $20,000.
However., we believe that this increase is justified based on the
following:
The City is undergoing growth, as indicated in your 1990
budget compared to your 1989 budget. We estimate that this
will account for. approximately $1,500 of our proposed
increase.
The City is in the process of acquiring a utility system.
The auditing procedures required to ensure that the
acquisition of this system and any related debt are properly
accounted for and the impact of auditing its operating
results we estimate will cost approximately $2,500.
The Governmental Accounting Standards Board has imposed a new
requirement relating to the presentation of a cash flow
statement. This will require additional analysis of
financial data not necessary in previous years. We have
already implemented this on some of our existing clients, and
we estimate that the cost to comply with this requirement for
the City of Winter Springs will be approximately $1,000.
Like the City, we deal with ongoing inflationary pressures
due to the nature of our business. A 5% provision for
effects 'of inflation accounts for $1,000 of our proposed
increase.
` r',_.
Mr. Richard Rozansky
March 23' 1990
Page 2
These additional costs that we propose do not reflect a
significant additional cost that we plan to absorb. That cost is
the time associated with auditing an organization for the first
time. We estimate that initial year start -up costs often run as
high as 20 %. The City of Winter springs will be an important
client to us and therefore worth this investment.
we appreciate the opportunity to present our qualifications to
serve the City and are proud to have been selected on that basis.
we look forward to a long -term relationship, and would welcome
entering into a three -year contract renewable at the City"s
option, with fees for the second and third years to be negotiated
at the conclusion of our first year.
If you have any questions regarding our proposal, please do not
hesitate to call us.
PJK:mah
Enclosure
Very truly yours,
Patrick J. Knipe
Managing Partner
&Ly�rand
codified public accountants
I
Mr. Richard Rozansky
City Manager
City of Winter Springs, Florida
1126 East State Road 434
Winter Springs, Florida 32708
Dear Mr. Rozansky:
501 North Orange Avenue
Orlando, Florida 32801 -1397
telephone (407) 843 -1190
March 23, 1990
In principal areas of the world
This letter confirms the nature and scope of our engagement to
audit the financial statements of the City of Winter Springs for
the year ended September 30, 1990.
Our audit of your financial statements will be made in accordance
with Government Auditing Standards and the Rules of the Auditor
General of the State of Florida and will include such tests of the
accounting records and such other auditing procedures as we con-
sider necessary in the circumstances. The objective of such an
audit is the expression of our opinion concerning whether the
general purpose financial statements present fairly, in all
material respects, the financial position, results of operations,
and cash flows in conformity with generally accepted accounting
principles.
As a part of our audit, we will consider the City's internal con-
trol structure, as required by generally accepted auditing stan-
dards, for the purposes of establishing a basis for determining the
nature, timing, and extent of auditing procedures necessary for
expressing our opinion on the financial statements.
Our audit will include procedures designed to detect errors and
irregularities that would have a material effect on the financial
statements. However, as you are aware, there are inherent limita-
tions in the auditing process; for example, such audits are based
on the concept,of selective testing of the data being examined and
-area; therefore, subject *to the inherent limitation that such
matters, if they exist, may not be detected. Also, because of the
characteristics of irregularities, including attempts at conceal-
ment through collusion and forgery, a properly designed and exe-
cuted audit may not detect a material irregularity.
Mr. Richard Rozansky
City Manager
City of Winter Springs, Florida
March 23, 1990
Page Two
Similarly, in performing our audit we will be aware of the possi-
bility that illegal acts may have occurred. However, it should be
recognized that our audit provides no assurance that illegal acts
generally will be detected, and only reasonable assurance that
illegal acts having a direct and material effect on the determina-
tion of financial statement amounts will be detected. We will
inform you with respect to illegal acts or material errors and
irregularities that come to our attention during the course of our
audit.
You recognize that the financial statements and the establishment
and maintenance of an internal control structure are the responsi-
bility of the City's management. Appropriate supervisory review
procedures are necessary to provide reasonable assurance that
adopted policies and prescribed procedures are adhered to and to
identify errors and irregularities or illegal acts. As part of our
aforementioned consideration of the City's internal control struc-
ture, we will inform the appropriate levels of the City's manage-
ment and the City Commission of matters that come to our attention
that represent significant deficiencies in the design or operation
of the internal control structure.
At the conclusion of the engagement, the City's management will
provide to us a representation letter that, among other things,
will confirm management's responsibility for the preparation of the
financial statements in conformity with generally accepted
accounting principles, the availability of financial records and
related data, the completeness and availability of all minutes of
City Commission meetings, and the absence of irregularities
involving management or those employees who have significant roles
in the control structure.
Our fees for this engagement will not
that no unusual or unknown circumstance
the agreed -upon assistance from City
render progress billings on a monthly
performed, with a final billing at th e
ment. Invoices are due upon receipt.
exceed $26,000 and assumes
s arise, and that we receive
staff. Our policy is to
basis as the work is being
completion of the engage-
Mr. Richard Rozansky
City Manager
City of Winter Springs, Florida
March 23, 1990
Page Three
We appreciate the opportunity to be of service to you. If the
foregoing is acceptable to your please acknowledge by signing this
letter in the space provided.
C ��y,►�/za��oG
Ack owledged:
CI OF WIN SPRINGS, FLORIDA
4
Richard Rozans
City Manager
t
CITY OF WINTER SPRINGS, FLORIDA
1126 EAST STATE ROAD 434
WINTER SPRINGS, FLORIDA 32708
Telephone (407) 327 -1800
CERTIFIED P 480 326 224 August 31, 1990
Mr. Patrick J. Knipe
Coopers & Lybrand
501 N. Orange Ave.
Orlando, FL 32801
Re: Annual Audit of the City of Winter Springs
Dear Mr. Knipe:
Over three weeks ago I have had numerous conversations with Dana
Lenox and Christine Hill concerning certain questions I had about the
City's recent purchase of Seminole Utilities. Both of them were very
cooperative and more than willing to look into my concerns during the
course of our annual audit. Both agreed that my concerns were reason-
able and could be addressed as part of the annual audit.
Then, in my opinion, when I found out that an associate with your
firm is married to an associate of our City Attorney and Bond Counsel,
attitudes changed and Mr. Scott Packert was the only person I could talk
to. The spirit of cooperation that existed, disappeared.
On August 30th and again today I had a conversation with Mr. Packert
who seemed to be defending the acquisition and not objectively answering
all my questions. Mr. Packert refused to answer all my questions because
he said it was not in your scope of work and I would have to obtain the
permission of the City Manager to pay your firm for additional time.
Mr. Knipe, when the City spends in excess of $13,000,000 of the tax-
payers money I take it seriously. I do not think I should have to knock
down "brick walls', "sift through smoke screens" and renegotiate our contract
to get answers from a professional hired by the City.
I would appreciate if you can objectively and without prejudice,
answer my concerns about full and complete compliance of F.S. 218.385,
F.S. 218.386, F.S. 180.301, F.S. 286.23 and F.S. 166.045 in regards to
the acquisition of Seminole Utilities.
I trust you will approach my request with complete independence, and
the issue can be resolved at this level.
r
Mr. Patrick J. Knipe
Aug. 31, 1990
Page 2
The citizens of the City of Winter Springs have every right to know
why we spent $13,050,000, who received the money, why we didn't know about
the parks and if we were in complete compliance of the law.
Sincerely,
CITY OF W]
/ i�
W liam A.
Commissior
P.S. Under F.S. 119 please provide me with all copies of your work papers
addressing the acquisition.
cc: Scott Packert
WAJ /mn
i.
FAX LETTER:
DATE 9/4/90
CITY OF WINTER SPRINGS, FLORIDA
1126 EAST STATE ROAD 434
WINTER SPRINGS, FLORIDA 32708
Telephone (407) 327 -1800
TO: Attorney Frank Kruppenbacher FAX NO.: 1- 407 - 648 -1155
FROM: City Manager Richard Rozansky
NUMBER OF PAGES (INCLUDING COVER SHEET): 3
REGARDING: Letter to Auditor
COMMENTS:
PLEASE NOTIFY US IMMEDIATELY IF NOT RECEIVED PROPERLY: (407) 327 -1800
TRANSMITTING FROM: dex450
Kf�llE & f�SSOCIATES
CERTIFIED PUBLIC ACCOUNTANTS
6AHY D. KANE
CHHISI -INE T. FiENN5
BARBARA V.HENNAHD
DALLY A.SCALA
MALIM LN BAN5l-
JOAN ;JCIILO'I I MAN
June 18, 1990
City Commissioners, Mayor and City Manager
City of Winter Springs
1126 E. State Road 434
Winter Springs, FL 32708
Dear Commissioners, Mayor and City Manager:
We are pleased to confirm our understanding of the services we
are to provide for the City of Winter Springs for the period of
August 22, 1985, through September 30, 1989. We will audit the
financial statements of the Florida Department of Environmental
Regulation Grant No. 767040 as of and for the period ending
September 30, 1989.
Our audit will be made in accordance with generally accepted
auditing standards and will include tests of the accounting
records of the Florida Department of Environmental Regulation
Grant No. 767040 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.
Our procedures will include tests of documentary evidence
supporting the transactions recorded in the accounts, and may
include tests of the physical existence of assets. At the
conclusion of our audit, we will also request certain written
representations from you about the financial statements and
related matters.
An audit is based primarily on the selective testing of
accounting records and related data; therefore, our audit will
involve judgment about the number of transactions to be examined
and the areas to be tested. Because we will not perform a
detailed examination of all transactions, there is a risk that
material errors, irregularities, or illegal acts, including fraud
AIEJVIBCI? ANC rNCAN LNSTITUTc.- OF ('LRTIfIED ACCOUNTANTS •FLORIDA INSTITUTL_UF CERTIFIED PUBLIC ACCOUNTANTS
_' WL.ST GONISIOGK IWI =NUL - SUIVE 200 • WINTER PAliK, FLORDA 3278}) • 1=1071 644 60 ) FAX (4071 X44-6825
City Commissioners, Mayor and City Manager
City of Winter Springs
June 18, 1990
Page Two
or defalcations, may exist and not be detected by us. We will
advise your, however, of any matters of that nature that come to
our attention. Our responsibility as auditors is limited to the
period covered by our audit and does not extend to matters that
might arise during 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 audit 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 controls, the selection and application of
accounting principles, and the safeguarding of assets.
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.
We expect to begin our audit on approximately June 27, 1990, and
to issue our report no later than July 2, 1990.
Our fees for these services will be based on the actual time
spent at our standard hourly rates, plus travel and other out -of-
pocket costs such as report production, typing, postage, etc.
Our standard hourly rates vary according to the degree of
responsibility involved and the experience level of the personnel
assigned to your audit. Based on our preliminary estimates, the
fee should approximate $1,000. This estimate is based on 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.
KAnE & ASSOCIATES
r
T.
x
�r
City Commissioners, Mayor and City Manager
City of Winter Springs
June 18, 1990
Page Three
We appreciate the opportunity to be
Winter Springs and believe this letti
significant terms of our engagement.
please let us know. If you agee with
as described in this letter, please
return it to us.
Very truly yours,
Ka e & Associates
of service to the City of
:r accurately summarizes the
If you have any questions,
the terms of our engagement
sign the enclosed copy and
RESPON E
This l4iPer correc y set forth the understanding of the City of
Winter :riAgs. fl
BY:
TITLE:
DATE:
KAnE&ASSOCIATES
CERTIFIED PUBLIC ACCOUNTANTS
Coopers
&Lybrand
certified public accountants 501 North Orange Avenue
Orlando, Florida 32801 -1397
Mr. Richard Rozansky
City Manager
City of Winter Springs, Florida
1126 East State Road 434
Winter Springs, Florida 32708
Dear Mr. Rozansky:
telephone (407) 843 -1190
May 31, 1991
in principal areas of the world
M- i A
vile vi dIitri *R SPR1NGj
CITY M MAGER
Enclosed please find the engagement letter for the audit of the
City of Winter Springs for the years ending September 30, 1991
and 1992. This engagement letter reflects a proposed fee of
$32,500 and $36,800 for 1991 and 1992, respectively, plus out -of-
pocket expenses. While this fee proposal represents an increase
over the September 30, 1990 audit fee of $26,000, we believe that
there are valid reasons to justify such an increase. The follow-
ing matters were considered by Coopers & Lybrand while developing
the current year fee proposal. All the items listed were previ-
ously discussed with you and with Mr. Harry Martin, Finance
Director of the City.
Last year was Coopers & Lybrand "s first year audit of the
City of Winter Springs. We had previously estimated that
performing the audit would require approximately 600 hours
to complete on an on -going basis. However, having
completed the audit, we have determined that, due to the
size of the City, the complexity of the financial transac-
tions, and the level to which we must opine (i.e., the
auditors report must be addressed to the individual fund
or account group level), 700 hours is closer to the amount
of time that is required to perform a proper and complete
audit of the City.
Last year Coopers & Lybrand made a decision to absorb the
excess time required to audit the City for the first time.
Our investment in the City was expected to be approxi-
mately a 209 increase over a recurring budget of 600
hours. However, due to a variety of circumstances, actual
time incurred to perform the audit exceeded 1,000 hours.
This represents a start -up investment of over 70 %.
eo
Mr. Richard Rozansky
May 31, 1991
Page Two
The City is continuing to grow as compared to previous
year's budget. As the City grows, so will the need to
increase our audit scopes and procedures to properly audit
the City.
The City completed
in the prior year.
first full year of
require additional
for the testing pei
of the utility.
the acquisition of a new utility system
This current fiscal year will be the
operations of the utility which will
auditing procedures and expanded scopes
^formed to properly audit the operations
As with any other business or governmental agency, costs
of doing business are increasing. We are facing the same
inflationary pressures as the City and need to increase
our fees to cover our increasing costs of providing
services.
The City recently refinanced its out
Utility system. We will need to
agreements and perform additional
specific covenants within the bond's
as well as ensure that the bonds are
the financial statements of the City.
standing bonds on the
review the new bond
procedures to test
official statements,
properly recorded on
I believe you can see from this letter that Coopers & Lybrand has
already made a significant investment in the City of Winter
Springs. This investment reflects the importance of the City as
a client to Coopers & Lybrand, and our desire to continue and to
expand our good relationship with the City. Therefore, please
find a draft of the proposed engagement letter for audit services
for the City of Winter Springs. We wish to continue our profes-
sional services to the City for an additional two years at the
fee levels indicated in the letter. The increases requested
reflect the actual time incurred to audit the City with increases
for anticipated City growth, inflation, new requirements of our
profession dictated by the Federal Government, the State of
Florida and the accounting profession, and new transactions which
the City is entering into. We have been proud to serve the City
over the last year and are pleased to be able to continue to
serve you this year with a team of individuals already familiar
with your operation. We believe as you do that this is very
important in order to minimize disruption of the day -to -day
activities and perform an efficient and effective audit of the
City.
06 � it
Mr. Richard Rozansky
May 31, 1991
Page Three
We look forward to continuing our relationship, and are committed
to providing the City with the highest level of professional
service.
Very truly yours,
Christine E. Hill
CEH /klc
Enclosure
CITY OF WINTER SPRINGS, FLORIDA
1126 EAST STATE ROAD 434
WINTER SPRINGS, FLORIDA 32708
Telephone (407) 327 -1800
November 5, 1990
CERTIFIED CEP 858 930 588
Mr. Stephen W. McKessy
Deputy Chairman of Regional Operations
Coopers & Lybrand
1251 Avenue of the Americas
New York, New York 10020
Re: Refusal to.answer letter of August 31, 1990 and Oct. 9, 1990
Dear Mr. McKessy:
This is my third request for a written answer to my letter dated
August 31, 1990.
I'm sure you are aware that my term of office will expire on 12/3/90.
However, rest assured I will not go away or stop my investigation until I
get answers to my questions. The public and taxpayers have a right to know
the truth.
I am enclosing a copy of a page out of the "AICPA Professional Standards"
Volume I as of 6/1/90 backing up my repeated attempt to your firm for a response.
May I please have the courtesy of a reply.
Sincerely,
CITY OF W PR
William A. J ob ,
Commissioner
Enc.
cc: Mr. Knipe
LAW OFFICES
HONIGMAN MILLER SCHWARTZ AND COHN
A PARTNERSHIP INCLUDING PROFESSIONAL ASSOCIATIONS
390 NORTH ORANGE AVENUE
SUITE 1300
FRANK KRUPPENBACHER, P.A. ORLANDO, FLORIDA 32801 -1677
DIRECT DIAL NUMBER TELEPHONE(407)648-0300
(407) 649 -7405 TELECOPIER (407) 648 -1155
M E M O R A N D U M
TO: John Govoruhk
FROM: Frank Kruppenbacher
RE: Auditors Letter of March 25, 1993
DATE: April 6, 1993
ER, 5 _ ,
APR 12 1993
CITY of WINTER SPRINGS
CITY MANAGER
WEST PALM BEACH, FLORIDA
TAMPA, FLORIDA
DETROIT, MICHIGAN
LANSING, MICHIGAN
HOUSTON, TEXAS
LOS ANGELES, CALIFORNIA
I have reviewed the attached letter from Coopers &
Lybrand. It is approved for your execution with the
handwritten amendment I made to page three. Please sign the
agreement, initial the change and request the auditors to
forward back to you an initialed change.
02856d
R '°
Coopers
&Lybrand
certified public accountants 501 North Orange Avenue
Orlando, Florida 32801 -1397
Mr. John Govoruhk
Acting City Manager
City of Winter Springs, Florida
1126 East State Road 434
Winter Springs, Florida 32708
Dear Mr. Govoruhk:
telephone (407) 843 -1190
March 25, 1993
in principal areas of the world
�i�j�6gIIC�7j ��
1�1
MAR 31 ly93
CITY of WINTER SPRINGS
CITY MANAGER
This letter confirms the nature and scope of our engagement to
audit the financial statements of the City of Winter Springs for
the years ending September 30, 1993, 1994 and 1995.
Our audit of your financial statements will be made in accordance
with Government Auditing Standards and the Rules of the Auditor
General of the State of Florida and will include such tests of the
accounting records and such other auditing procedures as we con-
sider necessary in the circumstances. The objective of such an
audit is the expression of our opinion concerning whether the
general purpose financial statements present fairly, in all
material respects, the financial position, results of operations,
and cash flows in conformity with generally accepted accounting
principles.
As a part of our audit, we will consider the City's internal con-
trol structure, as required by generally accepted auditing stan-
dards, for the purposes of establishing a basis for determining the
nature, timing, and extent of auditing procedures-necessary for
expressing our opinion on the financial statements.
Our audit will include procedures designed to detect errors and
irregularities that would have a material effect on the financial
statements. However, as you are aware, there are inherent limita-
tions in the auditing process; for example, such audits are based
on the concept of selective testing of the data being examined and
are, therefore, subject to the inherent limitation that such
matters, if they exist, may not be detected. Also, because of the
characteristics of irregularities, including attempts at conceal-
ment through collusion and forgery, a properly designed and exe-
cuted audit may not detect a material irregularity.
i
i 4
Mr. John Govoruhk
Acting City Manager
City of Winter Springs, Florida
March 25, 1993
Page Two
Similarly, in performing our audit we will be aware of the possi-
bility that illegal acts may have occurred. However, it should be
recognized that our audit provides no assurance that illegal acts
generally will be detected, and only reasonable assurance that
illegal acts having a direct and material effect on the determina-
tion of financial statement amounts will be detected. We will
inform you with respect to illegal acts or material errors and
irregularities that come to our attention during the course of our
audit.
You recognize that the financial statements and the establishment
and maintenance of an internal control structure are the responsi-
bility of the City's management. Appropriate supervisory review
procedures are necessary to provide reasonable assurance that
adopted policies and prescribed procedures are adhered to and to
identify errors and irregularities or illegal acts. As part of our
aforementioned consideration of the City's internal control struc-
ture, we will inform the appropriate levels of the City's manage-
ment and the City Commission of matters that come to our attention
that represent significant deficiencies in the design or operation
of the internal control structure.
Our Firm, as well as all other major accounting firms, participates
in a "peer review" program, covering our audit and accounting prac-
tices. This program requires that once every three years we
subject our quality assurance practices to an ,,examination by
another accounting firm. As part of the process, -the other firm
will review a sample of our work. It is possible that the work we
perform for you may be selected by the other firm for their
review. If it is, they are bound by professional standards to keep
all information confidential. If you object to having the work we
do for you reviewed by our peer reviewer, please notify us in
writing.
At the conclusion of the engagement, the City's management will
provide to us a representation letter that, among other things,
will confirm management's responsibility for the preparation of the
financial statements in conformity with generally accepted account-
ing principles, the availability of financial records and related
data, the completeness and availability of all minutes of City
Commission meetings, and the absence of irregularities involving
management or those employees who have significant roles in the
control structure.
`s
Mr. John Govoruhk
Acting City Manager
City of Winter Springs, Florida
March 25, 1993
Page Three
Our fees for the 1993 engagement will be based on actual hours
incurred, not to exceed $36,000, plus actual out -of- pocket expenses
not to exceed $1,500. This fee assumes that no unusual or unknown
circumstances arise, and that we receive the agreed -upon assistance
from City staff. Our policy is to render progress billings on a
monthly basis as the work is being performed, with a final billing
at the completion of the engagement. Invoices are due upon
receipt. The composite hourly rate of $60 for 1994 and 1995 will
be adjusted by the consumer price index.
Either the City or the auditors may cancel this agreement by
written notice to the other party not later than March 31 of each
year. The City agreep that such cancellation on its part shall be
only after appr priate discussions with
lot fhe 4adthrs ef�ch oe_
We appreciate the opportunity to be of service to you. If the
foregoing is acceptable to you, please acknowledge by signing this
letter in the space provided.
OR
Acknowledged:
CITY OF WINTER SPRINGS, FLORIDA
Coo ers Coopers & Lybrand L.L.P. 200 South Orange Avenue telephone (407) 843 -1190
20th Floor
&LyErand Orlando, Florida 32801 facsimile (407) 244 -7601
a professional services firm
MTq
Nov 2 2 1994
October 31, 1994 CITY OF WINTER SPRINGS
City Manager
Mr. John Govoruhk
City Manager
City of Winter Springs, Florida
1126 East State Road 434
Winter Springs, Florida 32708
Dear Mr. Govoruhk:
This letter of arrangement between the City of Winter Springs (the "City") and Coopers & Lybrand L.L.P.
sets forth the nature and scope of the services we will provide, the City's required involvement and
assistance in support of our services, the related fee arrangements and other terms and conditions designed
to ensure that our professional services are performed to achieve the mutually agreed upon objectives of the
City.
We will audit the financial statements of the City as of and for the period ending September 30, 1994, 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. The objective of
an audit is the expression of our opinion concerning whether the financial statements present fairly, in all
material respects, the financial position, results of operations, and cash flows of the City in conformity with
generally accepted accounting principles. In addition, we will issue a separate report to the City
Commission and City Manager regarding any matters which come to our attention in connection with our
audit that caused us to believe that the City failed to comply with requirements for maintenance of the
Sewerage System Capital Improvement account in accordance with Section 17- 501.610(2)(b) of the
Florida Administrative Code insofar as they relate to accounting matters. We expect to deliver our report
on or about January 31, 1995.
The engagement will be led by:
■ Pat Knipe, partner, who will be responsible for assuring the overall quality, value, and timeliness of
our services to you.
■ Tim Baker, manager, who will be responsible for managing the delivery of our services to you.
Jim Lane will serve as the concurring partner and will be available in the absence of the engagement
partner. This team will have access to a full range of specialists to assist as necessary.
Coopers & Lybrand is a member firm of Coopers & Lybrand (International)
a
City of Winter Springs, Florida
October 31, 1994
Page 2
Our audit will include procedures designed to provide reasonable assurance of detecting errors and
irregularities that are material to the financial statements. As you are aware, however, there are inherent
limitations in the auditing process. For example, audits are based on the concept of selective testing of the
data being examined and are, therefore, subject to the limitation that errors and irregularities, if they exist,
may not be detected. Also, because of the characteristics of irregularities, including attempts at concealment
through collusion and forgery, a properly designed and executed audit may not detect a material irregularity.
Similarly, in performing our audit we will be aware of the possibility that illegal acts may have occurred.
However, it should be recognized that our audit provides no assurance that illegal acts generally will be
detected, and only reasonable assurance that illegal acts having a direct and material effect on the
determination of financial statement amounts will be detected. We will inform you with respect to material
errors and irregularities, or illegal acts that come to our attention during the course of our audit. You
recognize your responsibility for reporting illegal acts in accordance with Government Auditing Standards,
Compliance with laws, regulations, contracts, and grants applicable to the City is the responsibility of the
City's management. As part of obtaining reasonable assurance about whether the financial statements are
free of material misstatement, we will perform tests of the City's compliance with certain provisions of laws,
regulations, contracts, and grants. However, our objective is not to provide an opinion on overall compliance
with such provisions.
As required by Government Auditing Standards, we will prepare a separate written report on our tests of
compliance with applicable laws and regulations. This report will contain a statement of positive assurance
on those items which were tested for compliance, negative assurance on those items not tested, and a
description of all material instances of noncompliance.
As a part of our audit, we will consider the City's internal control structure, as required by generally
accepted auditing standards and Government Auditing Standards. These standards require us to obtain an
understanding of the control structure and assess risk as a basis for determining the nature, timing, and
extent of auditing procedures necessary for expressing our opinion on the financial statements. You
recognize that the financial statements and the establishment and maintenance of an internal control structure
are the responsibility of management. Appropriate supervisory review procedures are necessary to provide
reasonable assurance that adopted policies and prescribed procedures are adhered to and to identify errors
and irregularities or illegal acts. As part of our consideration of City's internal control structure, we will
inform you of matters that come to our attention that represent significant deficiencies in the design or
operation of the internal control structure.
City of Winter Springs, Florida
October 31, 1994
Page 3
As required by Government Auditing Standards, we will prepare a separate written report on our
understanding of the City's internal control structure and the assessment of control risk made as part of the
financial statement audit. Our report will include (1) the scope of our work in obtaining an understanding of
the internal control structure and in assessing control risk; (2) the City's significant internal control structure
policies and procedures, including the controls established to ensure compliance with laws and regulations
that have a material impact on the general purpose financial statements, and; (3) the reportable conditions,
including the identification of material weaknesses, identified as a result of our work in understanding and
assessing control risk.
We are prepared at your request to perform a more in -depth assessment of the City's internal control
structure, and report our findings and recommendations, or to conduct an examination engagement on the
effectiveness of your internal control structure. We would be pleased to discuss fees for these services,
which depend on their scope.
At the conclusion of the engagement, the City's management will provide to us a representation letter that,
among other things, will confirm management's responsibility for the preparation of the financial statements
in conformity with generally accepted accounting principles, the availability of financial records and related
data, the completeness and availability of all minutes of the City Commission and committee meetings,
management's responsibility for the entity's compliance with laws and regulations, the identification and
disclosure to the auditor of all laws and regulations that have a direct and material effect on the
determination of financial statement amounts and, to the best of their knowledge and belief, the absence of
irregularities involving management or those employees who have significant roles in the control structure.
Additionally, representations will be requested as to the financial reporting entity's financial statements to be
audited; the inclusion of all component units, and the disclosure of all joint ventures and other related
organizations; the proper classification of funds and account groups; the proper approval of reserves or
designations of fund equities; compliance with laws and regulations, including budget laws or ordinances;
compliance with any tax or debt limits, including any related debt covenants; representations relative to
GASB - required supplementary information; and identification of all federal assistance programs and
compliance with all related grant requirements.
As part of this engagement we will ensure that certain additional matters are communicated to the
appropriate members of management. Such matters include (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) audit adjustments that could, in our judgment, either individually or in the aggregate,
have a significant effect on your financial reporting process; (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; and (7) serious
difficulties that we encountered in dealing with management related to the performance of the audit.
i
City of Winter Springs, Florida
October 31, 1994
Page 4
As part of our ongoing process of assessing the quality of our services, you may receive questionnaires from
us and/or visits from senior partners not directly involved in providing services to you. We appreciate the
attention that you give to these and value your commentary. Additionally, if you have questions or concerns
about our services, you may contact Jim Maxwell, the Business Assurance Partner -In- Charge responsible for
the engagement team serving you.
TERMS AND CONDITIONS SUPPORTING FEE
As a result of our planning process, the City and Coopers & Lybrand L.L.P. have agreed to an approach
aimed at achieving objectives for an agreed upon fee, subject to the following conditions.
To facilitate meeting our mutual objectives, the City will provide in a timely manner audit schedules and
supporting information, including timely communication of all significant accounting and financial reporting
matters, as well as working space and clerical assistance as mutually agreed upon and as is normal and
reasonable in the circumstances. When and if for any reason the City is unable to provide such schedules,
information and assistance, Coopers & Lybrand L.L.P. and the City will mutually revise the fee to reflect
additional services, if any, required of us to achieve these objectives. Such revisions will be set forth in the
form of the attached "Amendment to Letter of Arrangement."
In providing our services, we will consult with the City with respect to matters of accounting, financial
reporting or other significant business issues. Accordingly, time necessary to effect a reasonable amount of
such consultation is reflected in our fee. However, should a matter require research, consultation or audit
work beyond that amount, Coopers & Lybrand L.L.P. and the City will agree to an appropriate revision in
services and fee. Such revisions will also be set forth in the form of the attached "Amendment to Letter of
Arrangement."
Except for any changes in fees which may result from the circumstances described above, our fees will be
limited to those set forth below.
EU
Our fees for the audit services described above as they pertain to the 1994 engagement will be based on
actual hours incurred, not to exceed $37,000 plus out -of- pocket expenses not to exceed $1,550 subject to the
terms and conditions above. Such expenses will include all travel and an allocation of office charges in
support of our services including computer usage, telephone, facsimile transmission, postage,
photoreproduction and similar expenses. The fees for the special report regarding the Sewerage System
Capital Improvement account will be based on actual hours incurred, not to exceed $2,600. Our policy is to
render billings on a monthly basis as the work is being performed, with a final billing at the completion of the
engagement. Invoices rendered are due and payable upon receipt. The composite hourly rate of $62 has
been adjusted by the increase in the consumer price index from September 30, 1993 to September 30, 1994.
1.
City of Winter Springs, Florida
October 31, 1994
Page 5
ACCESS TO WORKING PAPERS
The working papers for this engagement are the property of Coopers & Lybrand L.L.P. and constitute
confidential information. Except as discussed below, any requests for access to our working papers will be
discussed with you prior to making them available to requesting parties.
Our Firm, as well as all other major accounting firms, participates in a "peer review" program, covering our
audit and accounting practices. This program requires that once every three years we subject our quality
assurance practices to an examination by another accounting firm. As part of the process, the other firm will
review a sample of our work. It is possible that the work we perform for you may be selected by the other
firm for their review. If it is, they are bound by professional standards to keep all information confidential.
If you object to having the work we do for you reviewed by our peer reviewer, please notify us in writing.
However, as required by applicable provisions of laws and regulations, we are required to make certain
working papers available certain agencies upon request for their regulatory oversight purposes. Access to
the requested working papers will be provided to federal and state regulatory agencies under the supervision
of Coopers & Lybrand L.L.P. audit personnel and at a location designated by our firm. In addition, the
workpapers shall be maintained for a period of time to satisfy legal and administrative requirements.
If the foregoing is in accordance with your understanding, please sign the copy of this letter in the space
provided and return it to us. If you have any questions, please call Pat Knipe at (407) 843 -1190.
Very truly yours,
Attachment
cc: Mr. Harry Martin, Finance Director
TITLE
//- ,23 -9�
DATE
AMENDMENT #_ TO LETTER OF ARRANGEMENT
[Date]
Mr. John Govoruhk
City Manager
City of Winter Springs, Florida
1126 East State Road 434
Winter Springs, Florida 32708
The letter of arrangement dated October 31, 1994 between Coopers & Lybrand L.L.P. and the City of
Winter Springs is hereby amended to reflect the following:
Estimated
Description of /Causes for Amendment Fees Impact
Total this amendment
Previous fee estimate
Revised fee estimate
Please sign the copy of this letter in the space provided and return it to us. If you should have any questions,
please call Pat Knipe at (407) 843 -1190.
Very truly yours,
cc: Mr. Harry Martin, Finance Director
SUBMITTED BY
ACCEPTED BY
TITLE
DATE
Cooers
MyErand
certified public accountants I 200 South Orange Avenue
Orlando, Florida 32801
May 18, 1994
Mr. Harry Martin
City of Winter Springs, Florida
1126 East State Road 434
Winter Springs, FL 32708
Dear Mr. Martin:
telephone (407) 843 -1190
facsimile (407) 244 -7601
This letter of arrangement sets forth the nature and scope of the services we will provide, the
required involvement and assistance in support of our services, the related fee arrangements and
other terms and conditions designed to assure that our professional services are performed to
achieve our mutually agreed upon objectives.
SUMMARY OF SERVICES
As you have requested, we will perform the following services:
• Compute the aggregate amount of rebate required on the $9,000,000 Improvement
Refunding Revenue Bonds for the City of Winter Springs, Florida, Series 1989
(the Bonds) for the period May 25, 1989 through May 25, 1994
• Prepare the Arbitrage Rebate and Penalty in Lieu of Arbitrage Rebate Form
(Form 8038 -T)
We expect to complete this work on or before June 20, 1994.
To facilitate our work, you will need to provide us for the above bond:
• Detail cash and asset balance at the beginning of the bond year
• Monthly bank statements
0 Computer disk containing detail of interest income and expenditures
Coopers & Lybrand is a member firm of Coopers & Lybrand (International)
Mr. Harry Martin
City of Winter Springs, Florida
May 18, 1994
Page 2
TERM AND CONDITIONS SUPPORTING FEE ESTIMATE
Our fee is based on the time of partners and staff assigned. Such factors as the condition of
your records, the timely compilation by your staff of any information you have agreed to provide
us by June 7, 1994 as noted above, the continuity of your personnel, and their availability may
have a bearing on the amount of time required to complete the engagement.
Should any unanticipated issues arise during the engagement wherein additional professional time
may have to be expended and /or if you are unable to provide the information requested, we will
mutually revise the estimated fee to reflect additional services, if any, required of us to meet our
deadline. Such revisions will be set forth in the form of the attached "Amendment to Letter of
Arrangement".
FEE ESTIMATE
Our fees for the services listed above will bee-bbetween $3,750 and Q 4,2.50, subject to the terms
and conditions above. You will be billed upon completion of the calculation.
REPRESENTATIONS FROM TAXPAYER
It is the taxpayer's responsibility to make available the financial records and related data needed
to prepare the arbitrage rebate calculation. The taxpayer represents that the information
provided is complete and, to the best of their knowledge and belief, absent of irregularities
involving management or those employees who have significant roles in the control structure.
The arbitrage rebate calculation will be prepared from data and other information submitted by
you, without audit verification by us.
ACCESS TO WORKPAPERS
Except as discussed below, any requests for access to our work papers will be discussed with
you prior to making them available to requesting parties.
Mr. Harry Martin
City of Winter Springs, Florida
May 18, 1994
Page 3
Our Firm, as well as all other major accounting firms, participates in a "peer review" program,
covering our audit and accounting practices. This program requires that once every three years
we subject our quality assurance practices to an examination by another accounting firm. As
part of the process, the other firm will review a sample of our work. It is possible that the work
we perform for you may be selected by the other firm for their review. If it is, they are bound
by professional standards to keep all information confidential. If you object to having the work
we do for you reviewed by our peer reviewer, please notify us in writing.
If you have any questions regarding the contemplated scope of our services or our estimated
fees, please call Andrew J. Copa at (407) 244 -7556.
Please indicate your acceptance of the arrangements described herein by signing and returning
the enclosed acknowledgment copy of this letter. We appreciate your continued confidence in
the services provided by Coopers & Lybrand.
Accepted for City of Winter Springs, Florida
By:
i
Very truly yours,
Coopers & Lybrand
4 L
4k-�,
Date:
r
r."
AMENDMENT ##
Mr. Harry Martin
City of Winter Springs, Florida
1126 East State Road 434
Winter Springs, FL 32708
Dear Mr. Martin:
TO LETTER OF ARRANGEMENT
Date
Our letter of arrangement dated May 18, 1994 ended to reflect the following:
Description of /Causes for Amendment
Total this Amendment
Previous fee estimate
Revised fee estimate
Estimated Fee Impact
Please sign the copy of this letter in the space provided and return it to us. If you should have
any questions, please call Andrew J. Copa at (407) 244 -7556.
SUBMITTED BY
ACCEPTED BY
TITLE
Very truly yours,
/s/ Coopers & Lybrand
(Partner's signature)