CCR1990193COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #193-90
APPROVAL OF AGREEMENT BETWEEN THE CITY AND
CONLEY, McDONALD, SPRAGUE AND COMPANY
FOR AUDIT SERVICE (GENERAL FUND)
(Year Ending 12/31 /90)
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
WHEKEAS, the firm of Conley, McDonald, Sprague 6 Company has
audited the City's books for over twenty years, and
WHEKEAS, the Finance Committee has recommended approval of an
agreement between the City and the firm of Conley, McDonald,
Sprague 6 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
McDonald, Sprague & Company to audit the City's General Fund for
an agreement between the City of Muskego and the firm of Conley,
the year ending December 31, 1990.
BE IT FURTHER KESOLVED that said agreement is subject to the
approval of the City Attorney.
DATED THIS 28th DAY OF Auqust , 1990.
FINANCE COMMITTEE
Ald. Daniel J. Hilt
Ald. Edwin P. Dumke
Ald. Harold L. Sanders
ATTEST:
City Clerk, ,
CONLEY McDONALD, SPRAGUE & CO.
Certified Public Accountants & Consultants
Nicholas D Quanara. C PA.
Frederick L. Lcau.C PA. 1
Vic~or N Weiler, C.PA.
WilliamB.Volkmann.C.PA
Roberr L Gundrum,C.PA.
Dawd L Donihue. C.PA
Donald N V8lmnc.C.PA.
Paul A. Nowmskl. C PA
RlchardJ. Hamme1.C PA.
August 15, 1990
19601 W Bluemound Road
Brookfield. Wmonsin 53008-0975
PO. Box 0975
FAX(qI4)796-8422
(414) 796-0701
Kenorha, W~SCO~S~ 53140
2106 63rd Soce1
(414)657-6156
FAX(414)657.-1314
(414) 552-7909
50115 PaclwrdAve
Cudahy, Wwonsm 53110
(414)481-3520
Mr. Wayne G. Salentine, Mayor
City of Muskego
W180 S7732 Racine Avenue
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 €or the year ending December 31, 1990.
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
Water Utility
Sewer Utility
Proprietary Funds:
Fiduciary Funds - Trust and Agency
Account Groups:
General Long-Term Obligations
General Fixed Assets
Our audit will be conducted in accordance with generally accepted auditing standards 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 evaluating 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
City of Muskego
Page Two
August 15, 1990
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 confkmation from management concerning important represen-
tations which we' will rely upon.
As also required by generally accepted auditing standards, we will plan and perform 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 September or October 1990. Final field
work is tentatively scheduled to begin in March 1991. The audit report will be submitted
prior to May 31, ,1991. Assistance to be supplied by your personnel, including the prepara-
tion of schedules, and analysis of accounts will be discussed and coordinated with the City
Clerk. Timely completion of this work wi!l 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 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 extended due date of May 15, 1991. It will, however, be your
responsibility to obtain a filing extension (which is automatic upon request) from the
Wisconsin Department of Revenue from the original due date of May Lto the extended
due date of May, 15. This report requires many allocations of expenses beyond which is
recorded on the1 City's records. It will be necessary that these allocations be reviewed
annually by the pty. 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 Decemberi31, 1990, and issue a separate report thereon before December 31, 1991.
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.
City of Muskeg01
Page Three
August 15, 1990
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 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 CiG 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 & CO.
Donald N. Vilione, CPA
Partner
DNV/diw:me
The foregoing letter fully describes the services required and is accepted by us.
CITY OF MUSKEG0
Date Wayne G. Salentine, Mayor