HomeMy WebLinkAboutReso 2001-401
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RESOLUTION NO. 2001-Jjo'
A RESOLUTION OF THE CITY OF SUNNY ISLES BEACH,
FLORIDA, APPROVING AN AGREEMENT WITH RACHLIN
COHEN & HOL TZ FOR PROFESSIONAL AUDITING
SERVICES, ATTACHED HERETO AS EXHIBIT" A", IN THE
AMOUNTS OF $24,500.00 FOR FISCAL YEAR 2001;
$26,000.00 FOR FISCAL YEAR 2002; AND $27,500.00 FOR
FISCAL YEAR 2003; AUTHORIZING THE CITY MANAGER
TO NEGOTIATE AND EXECUTE THE AGREEMENT
ATTACHED AS EXHIBIT "A"; PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, Section 4.10 of the Sunny Isles Beach Charter ("Charter") requires an
independent audit of the City accounts on at least an annual basis; and
WHEREAS, via Resolution No. 98-81, the City Commission accepted staffs ranking and
contracted Rachlin Cohen & Holtz (RCH) to provide professional auditing services for the City; and
WHEREAS, RCH has provided auditing services to the City for a period of three
consecutive years; and
WHEREAS, Section 4.10 of the Charter requires that if a designated auditor has conducted
the annual independent audit ofthe City for a period of three consecutive years, the City Commission
shall review, through appointment, the adequacy oftheir performance; and
WHEREAS, the City Commission directed the City Manager's Financial Advisory
Committee to review RCH's performance; and
WHEREAS, the City Manager's Financial Advisory Committee has reviewed RCH's
performance and found it to be satisfactory; and
WHEREAS, RCH has submitted a Letter Agreement to provide auditing services for the
City, attached hereto as Exhibit "A".
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Approval of Agreement. The Agreement from Rachlin Cohen and Holtz, LLP, for
professional auditing services in the amount of$24,500.00 for fiscal year 2001; $26,000.00 for fiscal
year 2002; and $27,500.00 for fiscal year 2003, attached hereto as Exhibit "A," be, and the same, is
hereby approved.
Section 2 Authorization of City Manager. The City Manager is hereby authorized to execute the
Letter Agreement attached hereto as Exhibit "A", and to do all other things necessary to effectuate
the intent of this Resolution.
Auditor's Resolution - Rch 2001
Section 3.
Effective Date. This Resolution is effective upon p ssage.
PASSED AND ADOPTED this 13th day of December, 0
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APPROVED AS TO FORM
AND LEGAL SUFFICIENCY:
Moved by: L-OIYI "'" S S; '0 AJ~~ f'l-t.t FF /l14U
Seconded by: Ct\h\W\lc( \) Df\) bE-.l.C-U.P
VOTE: 5-0
Mayor David Samson
Vice Mayor Iglesias
Commissioner Edelcup
Commissioner Goodman
Commissioner Kauffman
yes V
yes V
yes a/
yes v
yes '7
no
no
no
no
no
Auditor's Resolution - Rch 2001
2
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Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
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November 21,2001
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Mr. Christopher Russo, City Manager
City of Sunny Isles Beach
17070 Collins Avenue, Suite 250
Sunny Isles Beach, Florida 33160
Dear Mr. Russo:
We are pleased to confirm our understanding of the services we are to provide City of Sunny Isles Beach
(the City). We will audit the general purpose financial statement~; of the City as of and for the fiscal years
ending September 30,2001,2002 and 2003.
Audit Objectives
The objective of our audit is the expression of an opinion as to whether your general purpose financial
statements are fairly presented, in all material respects, in conformity with generally accepted accounting
principles and to report on the fairness of the additional information referred to in the first paragraph
when considered in relation to the general purpose financial statements taken as a whole. Our audit will
be conducted in accordance with generally accepted auditing standards and the standards for financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States, and will include tests of the accounting records of the City and other procedures we consider
necessary to enable us to express such an opinion. If our opinion on the general purpose financial
statements is other than unqualified, we will fully discuss the reasons with you in advance. If, for any
reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may
decline to express an opinion or to issue a report as a result of this engagement.
We will also provide reports (that do not include opinions) on internal control related to the financial
statements and compliance with laws, regulations, and the provisions or grant agreements, noncompliance
with, which could have a material effect on the financial statements as required by Government Auditing
Standards.
Management Responsibilities
Management is responsible for establishing and maintaining internal control and for compliance with
laws, regulations, contracts, and agreements. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of the controls. The objectives
of internal control are to provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, that transactions are executed in
accordance with management's authorizations and recorded properly to permit the preparation of general
purpose financial statements in accordance with generally accepted accounting principles.
Management is responsible for making all financial records and related information available to us. We
understand that you will provide us with such 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. That responsibility includes the
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 · Tel 305-377-4228 · Fax 305-377-8331
Offices in: Miami' Ft. Lauderdale · Boca Raton · West Palm Beach · Stuart
----~~---------- www.rchcpa.com --~---~-~------
Member of Summit International Associates, lne. with offices in principal cities throughout the world
Member of the American Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Accountants
a
Mr. Christopher Russo, City Manager
City of Sunny Isles Beach
November 21,2001
Page 2
establishment and maintenance of adequate records and effective internal control over financial reporting,
the selection and application of accounting principles, and the safeguarding of assets. Management is
responsible for adjusting the financial statements to correct material misstatements and for confirming to
us in the representation letter that the effects of any uncorrected misstatements aggregated by us during
the current engagement and pertaining to the latest period presented are immaterial, both individually and
in aggregate, to the general purpose financial statements taken as a ",,-hole.
Audit Procedures-General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to be
examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than
absolute assurance about whether the financial statements are free of material misstatement, whether
caused by error or fraud. Because an audit is designed to provide reasonable, but not absolute assurance
and because we will not perform a detailed examination of all transactions, there is a risk that a material
misstatement may exist and not be detected by us. In addition, an audit is not designed to detect
immaterial errors, fraud, or other illegal acts or illegal acts that do not have a direct effect on the general
purpose financial statements. However, we will inform you of any material errors and any fraud that
comes to our attention. We will also inform you of any other illegal acts that come to our attention,
unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit
and does not extend to matters that might arise during any later periods for which we are not engaged as
auditors.
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, creditors,
and financial institutions. We will request written representations from your attorneys as part of the
engagement, and they may bill you for responding to this inquiry. At the conciusion of our audit, we will
also require certain written representations from you about the financial statements and related matters.
Identifying and ensuring that the City complies with laws, regulations, contracts, and agreements is the
responsibility of management. As part of obtaining reasonable assurance about whether the general purpose
financial statements are free of material misstatement, we will perform tests of the City's compliance with
applicable laws and regulations and the provisions of contracts and agreements. However, the objective of
our audit will not be to provide an opinion on overall compliance and we will not express such an opinion.
Audit Procedures-Internal Controls
In planning and performing our audit, we will consider the internal control sufficient to plan the audit in
order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing
our opinion on the City's general purpose financial statements.
a
Mr. Christopher Russo, City Manager
City of Sunny Isles Beach
November 21,2001
Page 3
We will obtain an understanding of the design of the relevant controls and whether they have been placed
in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness
of certain controls that we consider relevant to preventing and detecting errors and fraud that are material
to the general purpose financial statements and to preventing and detecting misstatements resulting from
illegal acts and other noncompliance matters that have a direct and material effect on the general purpose
financial statements. (Tests of controls are required only if control risk is assessed below the maximum
level.) Our tests, if performed, will be less in scope than would be necessary to render an opinion on
internal control and, accordingly, no opinion will be expressed.
An audit is not designed to provide assurance on internal control or to identify reportable conditions.
However, we will inform the governing body or audit committee of any matters involving internal control
and its operation that we consider to be reportable conditions under standards established by the
American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our
attention relating to significant deficiencies in the design or operation of the internal control that, in our
judgment, could adversely affect the entity's ability to record, process, summarize, and report financial
data consistent with the assertions of management in the general purpose financial statements.
Audit Administration, Fees, and Other
We understand that your employees will prepare all cash or other confirmations we request and will
locate any invoices selected by us for testing.
The workpapers for this engagement are the property of Rachlin Cohen & Holtz LLP 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. If requested, access to such
workpapers will be provided under the supervision of Rachlin Cohen & Holtz LLP personnel.
Furthermore, upon request, we may provide photocopies of selected workpapers to the regulatory agency.
The regulatory agency may intend, or decide, to distribute the photocopies or information contained
therein to others, including other governmental agencies.
Our estimated fees for these services will be at our standard hourly rates plus out-of-pocket costs, if any.
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 each month as the
progresses and. are 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.
a
Mr. Christopher Russo, City Manager
City of Sunny Isles Beach
November 21, 200 I
Page 4
We estimate the fees to be as follows:
. Year Ending September 30, 200 I
. Year Ending September 30, 2002
. Year Ending September 30, 2003
$24,500
$26,000
$27,500
The City will be required to implement Governmental Accounting Standards Board Statement No. 34,
Basic Financial Statements - and Management's Discussion and Analysis - For State and Local
Governments, for the fiscal year ending September 30, 2004. Your auditors need to be involved in the
implementation process. As a result, there will be consultation and communication between the City and
Rachlin Cohen & Holtz LLP regarding implementation efforts. We estimate that fees for these services
will range from $4,000 to $65,M"(J" d~~ding on the degree and nature of the consultation requested by
the City. Our fees for this~n~hggr;en~wili be based on the number of hours at our standard billing rates
required to perform these services.
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-B3, 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
and fees necessary to complete the engagement. If additional services are required or requested as a result
of the City receiving grant funds under the new Florida Single Audit Act, we will prepare an addendum to
this letter indicating the additional services and fees necessary to complete the engagement.
We appreciate the opportunity to be of continued service to you and believe this letter accurately
summarizes the significant terms of our engagement. If you have any questions, please let us know. If
you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and
return it to us.
Sincerely,
~occa, CPA
Director-Miami
Enclosure
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a
Mr. Christopher Russo, City Manager
City of Sunny Isles Beach
November 21, 2001
Page 5
APPROVED:
This letter correctly sets forth the understanding of City of Sunny Isles Beach.
Signed:W/~
Title: Co I T~ m CltJ\a. (f"
Date: ~ ~ /<4 l~ol
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