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CCR1989271COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION il271-89 APPROVAL OF AGREEMENT BETWEEN THE CITY AND CONLEY, McDONALD, SPRAGUE AND COMPANY FOR AUDIT SERVICE (GENERAL FUND) (Year Ending 12/31/89) 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 h Company has audited the City's books for over twenty years, and WHEREAS, the Finance Committee has recommended approval of an Sprague h Company. agreement between the City and the firm of Conley, McDonald, NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of Muskego, upon the recommendation of the Finance an agreement between the City of Muskego and the firm of Conley, Committee, does hereby authorize the Mayor and Clerk to execute McDonald, Sprague h Company to audit the City's General Fund for the year ending December 31, 1989. BE IT FURTHER RESOLVED that said agreement is subject to the approval of the City Attorney. 0 DATED THIS DAY OF October , 1989. Ald. Edwin P. Dumke Ald. Daniel J. Hilt Ald. Harold L. Sanders ATTEST : City Clerk 10/89 jZ CONLW McDONALD, SPRAGUE & CO. Certified Public Accountam '@ 0 0 NicholarD. Quarraro.C.PA. Vimr N. Wetier, C.PA Frederick L. Licau, C.PA. Damel A. Schulz.C.PA. William B. Volhann. C.PA Robert L. Gundrum.C PA. David L. Donthue. C.PA. Donald N. Vilione. C PA. Paul A. Nowinski. C PA. bchardJ. HammeLC.PA. RobenJ. Harnmcl.C.PA. October 13, 1989 19601 W Bluemound Road PO. Box 0975 Brookfield. W15comm 53008-0975 (414) 796-0701 FAX(414)196-8422 Kenorha. WlXomin 53140 2106 63rd Srrcec (414)552.7909 (414)657-6156 FAX(414)657-1314 Cudahy. Wiwomm 53110 5011 5. Packad Ave. (414)461-3520 Mr. Wayne G. Salentine. Mayor W180 S7732 Racine Avenue City of Muskego Muskego. WI 53150 ., 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 audit of the general purpose financial statements for the year ending December 31, 1989. Our basic engagement is to audit and report on the general purpose financial statements of the following funds and account groups: Governmental Fund Types: General Fund Debt Service Fund Special Revenue Fund Capital Projects Fund Proprietary Funds: Water Utility - Sewer Utility Fiduciary Funds - Trust and Agency Account Groups: General Long-Term Debt General Fixed Assets Our audit will be conducted in accordance with generally accepted auditing stan- dards and will include our examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. assessing the accounting principles used and significant estimates made by management, as well as evalu- ating the overall financial statement presentation. The objective of our engagement is the completion of the foregoing audit and. As you know, the financial statements are the responsibility of the management upon its completion and subject to its findings, the rendering of OUT report. and the Common Council of the City of Muskego who are primarily responsible for the data and information set forth therein, as well as for the maintenance of an appropriate internal control structure (which includes adequate accounting records and procedures to safeguard the City's assets). Accordingly, as required by generally accepted auditing standards, our procedures will include obtaining written confirmation from management concerning important represen- tations which we will rely upon. As also required by generally accepted auditing standards, we will plan and per- form our audit to obtain reasonable, but not absolute, assurance about whether the financial statements are free of material misstatement. Accordingly any such audit is not a guarantee of the accuracy of the financial statements and is subject to the inherent risk that errors, irregularities (or illegal acts), if they exist, might not be detected. If we become aware of any such matters during the course of our audit, we will bring them to your attention. Should you then wish Us to expand our normal auditing procedures, we would be pleased ~. to work with you to develop a separate engagement for that purpose. Preliminary field work is tentatively scheduled for October, 1989. Final field work is tentatively scheduled to begin in March, 1990. The audit report will be submitted prior to May 31. 1990. Assistance to be supplied by your personnel, ~- cussed and coordinated with the City Clerk. Timely completion of this work will including the preparation of schedules and analysis of accounts will be dis" facilitate achieving the best audit performance with the minimum time. We will assist in the preparation of the Financial Report Form for Wisconsin Cities and Villages to be filed with the Wisconsin Department of Revenue. This audited by us. The report will be completed prior to the due date of May 1, report is considered a special report and therefore, is not to be considered as recorded on the City's records. It will be necessary that these allocations be 1990. This report requires many allocations of expenses beyond which is 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 make available to the public updated annual reports describing the status of each existing tax increment financing district. We will examine the financial statements of the City's Tax Increment District Funds for the year ended December 31, 1989. and issue a separate report thereon before December 31, 1990. Our fees are based on the time required by the individuals assigned to the engagement plus direct expenses. Individual hourly rates vary according to the degree of responsibility involved and the skill required. <. I will be the partner in charge of all work we will perform for you. It will be my responsibility to insure that your management receives good services. I will call upon other partners in the firm for a second point of view or a specialized knowledge as necessary. The audit this year will be supervised by Mr. Paul Batchelor, CPA. Audit '0 Manager, assisted by other members of the staff as necessary. : ." 2- City of Muskego Page Three We look forward to our association with you and your staff and appreciate the opportunity to-serve the City of~Muskego. Please call if you have any questions about any aspect of our engagement. If this letter correctly expresses your understanding of the agreement. please sign the enclosed copy where indicated and return it to us. Very truly yours, CONLEY. McDONALD, SPRAGUE h CO. c3" Donald N. Vilione, CPA Partner DNV/dlw:me The foregoing letter fully describes the^ services required and is accepted by us. Date CITY OF MUSKEGO Wayne G. Salentine, Mayor r