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City of Sunny Isles Beach
<br /> December 19,2018
<br /> Page 4
<br /> The Uniform Guidance and the Florida Single Audit Act requires that we also plan and perform the audit
<br /> to obtain reasonable assurance about whether the auditee has complied with federal and state statutes,
<br /> regulations, and the terms and conditions of federal and state awards applicable to major programs. Our
<br /> procedures will consist of tests of transactions and other applicable procedures described in the OMB
<br /> Compliance Supplement and the State Projects Compliance Supplement for the types of compliance require-
<br /> ments that could have a direct and material effect on each of the City's major programs. The purpose of
<br /> these procedures will be to express an opinion on the City's compliance with requirements applicable to
<br /> each of its major programs in our report on compliance issued pursuant to the Uniform Guidance and the
<br /> Florida Single Audit Act.
<br /> Management Responsibilities
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<br /> Management is responsible for (1)designing, implementing, establishing, and maintaining effective
<br /> internal controls relevant to the preparation and fair presentation of financial statements that are free from
<br /> material misstatement, whether due to fraud or error, including internal controls over federal and state
<br /> awards, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and
<br /> objectives are met; (2)following laws and regulations; (3)ensuring that there is reasonable assurance that
<br /> government programs are administered in compliance with compliance requirements;and(4)ensuring that
<br /> management and financial information is reliable and properly reported. Management is also responsible
<br /> for implementing systems designed to achieve compliance with applicable laws,regulations,contracts,and
<br /> grant agreements. You are also responsible for the selection and application of accounting principles; for
<br /> the preparation and fair presentation of the financial statements, schedule of expenditures of federal and
<br /> state awards, and all accompanying information in conformity with U.S. generally accepted accounting
<br /> principles; and for compliance with applicable laws and regulations (including federal and state statutes)
<br /> and the provisions of contracts and grant agreements(including award agreements). Your responsibilities
<br /> also include identifying significant contractor relationships in which the contractor has responsibility for
<br /> program compliance and for the accuracy and completeness of that information.
<br /> Management is also responsible for making all financial records and related information available to us and
<br /> for the accuracy and completeness of that information. You are also responsible for providing us with
<br /> (1)access to all information of which you are aware that is relevant to the preparation and fair presentation
<br /> of the financial statements, (2)access to personnel, accounts, books, records, supporting documentation,
<br /> and other information, as needed,to perform an audit under the Uniform Guidance and the Florida Single
<br /> Audit Act,(3)additional information that we may request for the purpose of the audit,and(4)unrestricted
<br /> access to persons within the government from whom we determine it necessary to obtain audit evidence.
<br /> Your responsibilities include adjusting the financial statements to correct material misstatements and
<br /> confirming to us in the management representation letter that the effects of any uncorrected misstatements
<br /> aggregated by us during the current engagement and pertaining to the latest period presented are immaterial,
<br /> both individually and in the aggregate,to the financial statements as a whole.
<br /> You are responsible for the design and implementation of programs and controls to prevent and detect fraud,
<br /> and for informing us about all known or suspected fraud affecting the government involving(1)manage-
<br /> ment, (2)employees who have significant roles in internal control, and (3)others where the fraud could
<br /> have a material effect on the financial statements. Your responsibilities include informing us of your knowl-
<br /> edge of any allegations of fraud or suspected fraud affecting the government received in communications
<br /> from employees, former employees, grantors, regulators, or others. In addition, you are responsible for
<br /> identifying and ensuring that the government complies with applicable laws, regulations,contracts,agree-
<br /> ments,and grants. Management is also responsible for taking timely and appropriate steps to remedy fraud
<br /> and noncompliance with provisions of laws,regulations,contracts,and grant agreements,or abuse that we
<br /> report. Additionally, as required by the Uniform Guidance and the Florida Single Audit Act, it is
<br /> management's responsibility to evaluate and monitor noncompliance with federal and state statutes,
<br /> regulations,and the terms and conditions of federal and state awards;take prompt action when instances of
<br /> noncompliance are identified, including noncompliance identified in audit findings; promptly follow up
<br /> and take corrective action on reported audit findings; and prepare a summary schedule of prior audit
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