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CCR1985270RESOLUTION (1270-85 APPROVAL OF AGREEMENT BETWEEN THE CITY AND CONLEY. McDONALD. SPRAGUE AND COMPANY FOR AUDIT SERV'ICE (GENERAL FUND) (Year Ending 12/31/85) WHEREAS, it is necessary for the City of Muskego to enter into an agreement to cover procedures to be used in the auditing of the City's General Fund, and WHEREAS, the firm of Conley, McDonald, Sprague & Company has audited the City's books for over twenty years, and WHEREAS, the Finance Committee has recommended approval of an agreement between the City and the firm of Conley, McDonald, Sprague & Company. NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of Muskego, upon the recommendation of the Finance Committee, does hereby authorize the Mayor and Clerk to execute an agreement between the City of Muskego and the firm of Conley, McDonald, Sprague Et Company to audit the City's General Fund for the year ending December 31, 1985. BE IT FURTHER RESOLVED that said agreement is subject to the approval of the City Attorney. Ald. Edwin P. Dumke Ald. Mitchel Penovich /& %A% Ald. Ralph Tomczyk ATTEST : City Clerk 10185 jm a CONLEY. McOONALO. SPRAGUE 6 CO. CERTIFIED PUBLIC ACCOUNTANTS DANIEL A. SCHULZ. C.P.A. NICHOLAS 0. OUARTARO. C.P.A. FREDERICK L. LICAU. C.PA. WILLIAM e. VOLKMANN. c P.A. VICTOR N. WEILER. C.PA. ROBERT L. GUNORUM. C.PA. OAVlO L. OONIHUE. C.P.A. OONALO N. VILIONE. C.P.A September 30, 1985 Mr. Wayne G. Falentine, Mayor City of Muskqo W180 57732 Rar.ine Avenue Muskego, WI 53150 MILWAUKEE, WISCONSIN 532224478 2826 NORTH MAYFAIR ROAD AREA CODE 414 771.1820 Dear Mr. Salentine: We are pleased to serve as independent accountants for the City of Muskego. This will confirm our understanding of the arrangements for our examination of the combined financial statements for the year ending December 31, 1985. Our basic engagement is to examine and report on the combined financial statements of the following funds and account groups: Govermental Funds: General Fund Special Revenue Fund Debt Service Fund Capital Project Fund Special Assessment Fund Proprietary Fund - Sewer Utility Fiduciary Fund - Trust and Agency Account Groups: General Long-Term Debt General Fixed Assets The purpose of our examination is to express an unqualified opinion on the fairness of presentation of the City's combined financial statements for the year ended December 31, 1985, and their conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. If our opinion will be other than unqualified, the reasons will be discussed with you. The examination will be in accordance with generally accepted auditing standards and rill include such auditing procedures as we consider necessary in the circumstances. These procedures will include a review of the system of internal control, a test of docunentary evidence of transactions recorded in the accounts and other tests of assets, liabilities, fund balances, revenues and expenditures through analysls, physical observations, and/or direct confirmation by correspondence with entities outside the City. Accordingly, the examination will not include an audit of transactions to the extent required if intended to disclose defalcations or similar irregularities, although their discovery may result. City of Muskego Page Two We direct your attention to the fact that management has the responsibility for of assets, and for substantial accuracy of the financial statements. Such proper recording of transactions in the books of account, for the safeguarding statements are representations of management. Preliminary field work is tentatively scheduled for October, 1985. Final field work is tentatively scheduled to begin in March, 1986. The audit report will be submitted prior to May 31, 1986. Assistance to be sllpplied by your personnel discussed and coordinated with the City Clerk. Timel:/ completion of this work including the preparation of schedules and analysis of accounts will be will facilitate achieving the best audit performance with the minimum time. We will assist in the preparation of the Financial :3eport Form for Wisconsin Cities and Villages to be filed with the Wisconsin Department of Revenue. This report is considered a special report and therefore, is not to be considered as audited by us. The report will be completed prior to the due date of May 1, 1986. This report requires many allocatlons of expenses beyond which is recorded on the City's records. It will be necessary that these allocations be reviewed annually by the City. Determination of these allocations by the City will facilitate the report preparation in minimum time. The City is required by Wisconsin statutes to have an audit performed of each existing tax increment financing district within twelve (12) months after the conclusion of the construction period. A separate engagement letter will be submitted at a later date for this audit. The 1983 amendments to the Federal Revenue Sharing Act, which are effective for government receiving over $100,000 during its fiscal year, an annual audit will the fiscal years beginning on or after October 1, 1983, provide that a be required. The amendments also provide for the audit to be conducted in accordance with generally accepted government auditing standards as issued by the Comptroller General of the United States. The report requirements will be threefold under the 1983 amendments, i.e. a financial audit of all funds, a compliance audit of Federal Revenue Sharing funds, and an auditor's report on the study and evaluation of the recipient's internal accounting controls. Since City will be required to have an audit pursuant to the requirements of the the City of Muskego Federal Revenue Sharing funds exceed $100,000 annually, the Federal Revenue Sharing Act listed above and will be responsible for submitting months after the close of the City's fiscal year. We wlll prepare the above the audit reports directly to the Office of Revenue Sharing within eight (8) mentioned reports for the year ended December 31, 1985. Our fees are based on the time required by the individuals assigned to the engagement plus direct expenses. Indlvidual hourly rates vary according to the degree of responsibility involved and the skill required. my responslbllity to insure that the management receives good service. I will I will be the partner in charge of all work we will perform for you. It will be call upon other partners in the firm for a second polnt of view or specialized knowledge as necessary. The audit thls year wlll be supervised by Charles 0. Miller, CPA, Audit Manager, assisted by other members of the staff as necessary. City of Muskego Page Three We look forward to our association with you and your staff and appreciate the questions about any aspect of our engagement. If this letter correctly opportunity to serve the City of Muskego. Please call, if you have any where indicated and return it to us. expresses your understanding of the engagement, please sign the enclosed copy Very truly yours, CONLEY, McDONALD, SPRACUE & Ut, n Donald N. Vilione, CPA Partner DNV/bjm:AF:me Approved: Name: Title: Date: