Reso 98- 81 - Laserfiche WebLink

Home Browse Search

RCH Mr. James DiPietro. City Manager July 21). (1)98 Pagc 3 - Our audit is not specifically designed and cannot be relied on to disclose reportable conditions. that is, significant dcficicncies in the dcsign or operation of the internal control structurc. However, during the audit, if we become awarc of such reportable conditions or ways that we believe management practices can be improved, we will communicatc thcm to you in a separate letter. Becausc many computerized systems use only two digits to rccord the year in date fields (for example, the year 1998 is recorded as 98), such systems may not be able to process dates accurately in the year 2000 and after. The effects of this problem will vary from system to systcm and may adversely affect an entity's operations as well as its ability to prepare financial statements. An audit of financial statements conducted in accordance with generally accepted auditing standards is not designed to detect whether a company's systems are year 2000 complaint. Further, we have no responsibility with regard to the City's efforts to make its systems, or any other systems, such as those of the City's vendors, service providers. or any other third parties, year 2000 complaint or provide assurance on whether the City has addressed or will be able to address all of the affected systems on a timely basis. These are responsibilities of the City's management. However, for the benefit of management, we may choose to communicate matters that come to our attention relating to the year 2000 issue. We understand the workpapers for this engagement are the property of Rachlin Cohen & Holtz and constitute confidential information. However, we may be requested to make certain workpapers available to regulatory agencies pursuant to authority given to it by law or regulation or for successor auditors. If requested, access to such workpapers will be provided under the supervision of Rachlin Cohen & Holtz personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to regulatory agencies. The regulatory agency may intend, or decide, to distribute the photocopies of information contained herein to others, including other governmental agencies. Our fees for these services will be at our standard hourly rates, but not more than $7,000 for' September 30, 1998, $14,000 for September 30, 1999, and $20,000 for September 30,2000. 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 will be rendered as work progresses am! arc payable on presentation. The above fee 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. If additional time is necessary due to growth of the City and their fund structure (i.e. level of services provided by the City), significant changes in Governmental Accounting Standards Board Pronouncements and other similar matters that are not contemplated by this letter, we will discuss these matters with you prior to commencement of the work. If the City is required to have a Single Audit performed in accordance with generally accepted auditing standards; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of OMB Circular A-l33, Audits of States, Local Governments, and Non-Profit Organizations, during the periods covered by this letter, we will prepare an addendum to this letter indicating the additional services necessary to complete the engagement and the additional fees. These fees will not be more than $4,000.