HomeMy WebLinkAboutKane & Associates Agreement -1989 04 27
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April 27, 1989
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 fiscal year
ending September 30, 1989. We will audit the general purpose
financial statements of the city of winter Springs as of and for
the fiscal year 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 City of winter springs 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 conformi ty wi th 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 inventories, and
direct confirmation of receivables and certain other assets and
liabilities by correspondence with selected individuals,
credi tors and banks. We will request written representations
from your attorneys as part of the engagement, and they may bill
you for responding to this inquirey. 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
MII[ I;' /IMf.RICI1N INSTITUTE or CFf.?Tlf/fD ACCOUNTANTS. FLORIDA INSTITUTE or CERTIFIED PUBLIC ACCOUNTANTS
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City commissioners, Mayor and City Manager
April 27, 1989
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.
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.
We understand that your employees will type all cash or other
confirmations we request and will locate any invoices selected by
us for testing.
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 will perform interim field work in July and estimate that we
will have an additional month of field work upon receipt of the
city's final combined financial statements.
Our fees for these services will be based on the actual time
spent at 85% of 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. Our invoices for these fees vlTill be
rendered semi-monthly as work progresses and are payable on
presentation. Based on our preliminary estimates, the fee should
approximate $20,000. This estimate is based on anticipated
cooperation from your personnel and 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.
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city commissioners, Mayor and City Manager
April 27, 1989
Page Three
We appreciate the opportunity to be of service to the city of
winter springs and believe this letter accurately summarizes the
significant terms of our engagement. If you have any questions,
please let us know. If you agee with the terms of our engagement
as described in this letter, please sign the enclosed copy and
return it to us.
Very truly yours,
..../ a..... I J I-- a.. ~'-C.~LI -r -4 --'
~& ASSOCIATES
BY:
RES PONS
This Ie
winter
ets forth the understanding of the city of
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