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City of Sunny Isles Beach
<br /> March 30, 2016
<br /> Page 6
<br /> As required by OMB Circular A-133, or the Uniform Guidance, as applicable, and Chapter 10.550,
<br /> Rules of the Auditor General, we will perform tests of controls over compliance to evaluate the
<br /> effectiveness of the design and operation of controls that we consider relevant to preventing or
<br /> detecting material noncompliance with compliance requirements applicable to each major federal
<br /> award program. However, our tests will be less in scope than would be necessary to render an opinion
<br /> on those controls and,accordingly,no opinion will be expressed in our report on internal control issued
<br /> pursuant to OMB Circular A-133, or the Uniform Guidance, as applicable, and Chapter 10.550, Rules
<br /> of the Auditor General.
<br /> An audit is not designed to provide assurance on internal control or to identify significant deficiencies
<br /> or material weaknesses. However, during the audit, we will communicate to management and those
<br /> charged with governance internal control related matters that are required to be communicated under
<br /> AICPA Professional Standards and Government Auditing Standards, OMB Circular A-133, or the
<br /> Uniform Guidance, as applicable, and Chapter 10.550, Rules of the Auditor General.
<br /> AUDIT PROCEDURES-COMPLIANCE
<br /> As part of obtaining reasonable assurance about whether the financial statements are free of material
<br /> misstatement, we will perform tests of the City's compliance with the provisions of applicable laws,
<br /> regulations, contracts, agreements, and grants. However, the objective of our audit will not be to
<br /> provide an opinion on overall compliance and we will not express such an opinion in our report on
<br /> compliance issued pursuant to Government Auditing Standards.
<br /> OMB Circular A-133 requires that we also plan and perform the audit to obtain reasonable assurance
<br /> about whether the auditee has complied with applicable laws and regulations and the provisions of
<br /> contracts and grant agreements applicable to major programs. Our procedures will consist of tests of
<br /> transactions and other applicable procedures described in the OMB Circular A-133 Compliance
<br /> Supplement for the types of compliance requirements that could have a direct and material effect on
<br /> each of the City's major programs. The purpose of these procedures will be to express an opinion on
<br /> the City's compliance with requirements applicable to each of its major programs in our report on
<br /> compliance issued pursuant to OMB Circular A-133, or the Uniform Guidance, as applicable, and
<br /> Chapter 10.550, Rules of the Auditor General.
<br /> ENGAGEMENT ADMINISTRATION,FEES,AND OTHER
<br /> With regard to electronic dissemination of audited financial statements. including financial statements
<br /> published electronically on your Internet website, you understand that electronic sites are a means of
<br /> distributing information and, therefore, we are not required to read the information contained in those
<br /> sites or to consider the consistency of other information in the electronic site with the original document.
<br /> You acknowledge that as a condition of our agreement to perform an audit, you and the City's
<br /> management agree to the best of your knowledge and belief to be truthful, accurate, and complete in
<br /> the representations you make to us during the course of the audit and in the written representations
<br /> provided to us at the completion of the audit.
<br /> Because of the importance of management's representations, contained in your representation letter to
<br /> us, to the effective performance of our services, the City will release Moore Stephens Lovelace, P.A.
<br /> and its personnel from any claims, liabilities, costs and expenses relating to our services under this
<br /> letter attributable to any misrepresentations in the representation letter referred to above or made to us
<br /> by any member of management. In addition, the City further agrees to indemnify and hold us harmless
<br /> for any liability and all reasonable costs, including legal fees, that we may incur as a result of the
<br /> services performed under this engagement in the event there are known misrepresentations made to us
<br /> by any member of the City's management.
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