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CCR1989272COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION #272-89 APPROVAL OF AGREEMENT BETWEEN THE CITY AND CONLEY, McDONALD, SPRAGUE AND COMPANY FOR AUDIT SERVICE (SEWER AND WATER UTILITY) (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 Sewer and Water Utility, 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 h Company to audit the City's Sewer and Water Utility for the year ending December 31, 1989. BE IT FURTHER RESOLVED that said agreement is subject to the approval of the City Attorney. DATED THIS 24th DAY OF October , 1989. Ald. Daniel J. Hilt Ald. Harold L. Sanders ATTEST : City Clerk' 10/89 jz CONLEY, McDONALD, SPRAGUE Q CO. Certified Public Accountants .- 'a J 0 Nicholas D. Quarraro.C.PA. Frederick L. Licau, C.PA Victor N. Weiler, C.PA. Daniel A. Schulr.C.PA. Wdllam E. Volkmann. C.PA Roberr L Gundrum.C.PA. Davld L. Donthuc. C PA. Donald N. Vilione. C.PA. , ~ ~~~ Paul A. Nowmrh. C.PA. RichardJ. Hammel.C.PA. RoberKJ Hammcl.C.PA. October 13, 1989 19601 W Bluemound Road FAX(414) 796-8422 ~ ._.,. ~ Kcnorha. Wisconsin 53140 2106 6lrdSrrcer (414)657-6156 FAX(414)657-1314 (414)552-7909 5011 5. Pacltard Aw. Cudahy. Wrrconsin 53110 (414)481-3520 Mr. Wayne G. Salentine. Mayor W180 S7732 Racine Avenue City of Muskego Sewer and Water Utility Muskego, WI 53150 Dear Mr. Salentine: We are pleased to serve as independent accountants for the City of Muskego Sewer and Water Utility. This will confirm our understanding of the arrangements for our audit of the financial statements.for the year ending December 31. 1989. The purpose of our audit is to express an unqualified opinion on the fairness of presentation of the Sewer Utility's and Water Utility's financial statements for the year ending December 31. 1989,'and their conformity with generally accepted accounting principles. If our opinion will be other than unqualified, the reasons will be discussed with you. Our audit will be conducted in accordance with generally accepted auditing stan- dards and will include our examining. on a m test basis, evidence supporting the principles used and significant estimates made by management, as well as evalu- amount and disclosures in the financial statements, assessing the accounting ating .the overall financial statement presentation. The~objective of our engagement is the completion of. the foregoing audit and. upon its completion and subject to its findings: the rendering of our report. As you know, the financial statements are the responsibility of the management 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 Utilities' assets). Accordingly. as obtaining written confirmation from management concerning important represen- required by generally accepted auditing standards, our procedures will include 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 Memberrat Amencan InrciluceofCenikd Public Accaunun~r* Wisconsin Inru1ure ofccrrified Fublic Accoununlr*Nauonal CPA Group .-,City of Muskego Sewer and Water Utility i ' Page 'ho 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. Field work is tentatively scheduled to begin in October, 1989. Final field work is tentatively scheduled for March, 1990. The audit reports will be submitted prior to May 31, 1989. Assistance to be supplied by your personnel including the preparation of schedules and analysis of accounts will be discussed and coordinated with the City Clerk. Timely completion of this work will facilitate .ach,ieving.the best audit performance with the minimum of time. We will prepare the financial portion of the Water Utility's Public Service - -. Commission Annual Report for 1989. We understand that this report is due ~ ~ April 1. 1990.. This report is a special report and therefore it is not to be . considered as audited by us. Our fees are based on the time required by individuals assigned to the engage- ment plus direct expenses. Individual hourly rates vary according to the degree of responsibility invoived 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 the management receives good service. I will knowledge as necessary. call upon other partners in the firm for a second point of view or a specialized 0 The audit this year will be supervised by Mr. Paul Batchelor, CPA, Audit Manager, assisted by other members of the staff as necessary. We look forward to our association with you and your staff and appreciate the opportunity to serve the City of Muskego Sewer Utility and Water Utility. 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, SPjUGUE h CO. Donald N. Vilione, CPA Partner DNV/dlw:me The foregoing letter fully de us. scribes the services required and is accepted by CITY OF MUSKEG0 Date Wayne G. Salentine, Mayor