Alberni Caballero & Fierman, LLP

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I I City of Sunny Isles Beach I1 lel II - IMI 11 i = L 1 111111111111111111111 III IIIII 11111111111 111111111111111111111 III lIl11111111111111111111111111111111111111111111I I • Review of Federal legislation for the enacted laws A-133 .215 (c) to be audited as major; audit such and regulations additional programs as may be necessary to comply I • Instruction to staff as to the requirements of the with the percentage of coverage rule Single Audit • Supervision of staff in the performance of the procedures Schedule of Expenditure of Federal and State Awards • Perform procedures to determine the Schedule of • Consideration of the effect of computer processing on Federal Awards are presented fairly in all material the nature, timing and extent of auditing procedures respects in relation to the City's financial statements taken as a whole I Assessment of Risks Determine that the City was able to reconcile the • • Perform an assessment of engagement risk by considering amounts presented in the schedule to amounts in the the level of Federal financial assistance and the nature of financial statements the various programs; corresponding consideration of I external environments, internal factors, irregularities, Assess the appropriateness and completeness of the illegal acts,fraud and other noncompliance matters. • City's identification of Federal programs included in the schedule • The single audit is subject to the same risk assessment at • I the account balance or transaction level made in the Determine that the City properly disclosed the basis financial audit of the entity. The single audit is designed of accounting and the significant accounting policies used to obtain assurance as to compliance with the grant in preparing the schedule agreements and the single audit requirements of OMB I A-133, while the financial audit is designed to obtain Materiality assurance that the financial statements are free of • Determine materiality based on the major program material misstatement. Consequently,the single audit I constitutes only a piece of the financial audit. Internal Control over Major Programs • For each of the 14 types of compliance requirements Determination of Major Programs (listed in the Compliance Supplement) which are • Determine if the City is a low or high risk auditee applicable and material to each major program, I • Identify the larger Federal programs based on the dollar document an understanding of the 5 components of threshold Identify in A-133 520(6)and label them as internal control (Control Environment/Risk Type A programs,with the remaining programs labeled Assessment/Control Activities/Information and t as Type B Communication/Monitoring)sufficient to plan the audit to support a low level of control risk • Perform and document risk assessment procedures on each Type A program to identify those that are ' Plan the testing of internal control 1low risk • Make a sample selection to test internal control • Consider the criteria in A-133 when performing the risk following the sample selection techniques under Sample assessment on Type B programs Sizes and Statistical Sampling •II . Audit at least all Type A programs not identified as low Reach a conclusion as to the effectiveness of the internal risk;audit Option 1 -At least half of the high-risk Type B control elements and all significant deficiencies or programs over the Type B threshold (if risk was assessed material weaknesses(if any). for all Type B programs subject to risk assessment)or • If no internal control is found on any of the 14 types of I Option 2-At least one high-risk Type B program for compliance requirements, disclose as a significant each low-risk Type A program;plus programs that are deficiency or material weakness(if any). requested in accordance with the requirements in I1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 Proposal for Professional Auditing Services I Alberni Caballero&Herman,LLP page 23 I