CCR1992257e COMMON COUNCIL - CITY OF MUSKEG0
RESOLUTION #257-92
APPROVAL OF AGREEMENT BETWEEN
THE CITY AND CONLEY MCDONALD
FOR AUDIT SERVICE OF GENERAL FUND AND
SEWER AND WATER UTILITIES
FOR YEAR ENDING 12/31/92
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 Sewer and Water Utilities; and
WHEREAS, the firm Conley McDonald 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.
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 to audit the City's General Fund and Sewer and Water
Utilities for the year ending December 31, 1992.
BE IT FURTHER RESOLVED that said agreement is subject to the
approval of the City Attorney.
e
DATED THIS 13TH DAY OF OCTOBER , 1992.
SPONSORED BY:
FINANCE COMMITTEE
Ald. Patrick A. Patterson
Ald. Edwin P. Dumke
Ald. David J. Sanders
This is to certify that this is a true and accurate copy of
Resolution #251-92 which was adopted by the Common Council of
the City of Muskego.
10/92 jmb
September 18, 1992
McDONALD
CERTIRED PUBLIC ACCOUMAKIS&CONSULTANTS
Mr. Wayne G. Salentine, Mayor
City of Muskego
W180 S7132 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
for the year ending December 31, 1992.
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 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.
19601 West Bluemound Road
P.O. Box 0975
BrwkfIeld, WI 53008-0975
Phone (414) 796-0701 FAX (414) 796-8422
City of Muskego
Page Two
September 18, 1992
The objective of our engagement is the completion of the foregoing audit and, upon its comple-
tion and subject to its findings, the rendering of our report. As you know, the financial state-
ments 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 City’s assets). Accordingly, as required by
generally accepted auditing standards, our procedures will include obtaining written confir-
mation from management concerning important representations 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 October 1992. Final field work is tentatively
scheduled to begin in March 1993. The audit report will be submitted prior to May 31, 1993.
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 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, 1993. It will, however, be your respon-
sibility to obtain a filing extension (which is automatic upon request) from the Wisconsin
Department of Revenue from the original due date of May 1 to the extended due date of
May 15. This report requires many allocations 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 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, 1992, and issue a separate report thereon before September 30, 1993.
City of Muskego
Page Four
September 18, 1992
In connection with developing our 1993 fee estimate, we have included an inflationary factor
of 4%. We have also projected that the City will utilize the same level of bookkeeping and
accounting services from our firm during the audit process as was required in the prior year.
Should the time requirements of our staff be reduced because of sienificant imorovements in
the accountin? and recordkeepine functions. we will. of course. bill the lesser amounts.
The 1993 fee estimates summarized above do not include services for budget assistance, sewer
rate consultation, water rate studies, other special studies or accounting and bookkeeping
consultation which occurs outside of the audit process.
Our fees are based on thetime required of the individual’s assigned to the engagement plus
direct expenses for reproducing the year-end audit reports. Individual hourly rates vary
according to the degree of responsibility involved and the skill required. Our hourly rates for
1992 and 1993 are shown below:
Partner
Tax Manager
Audit Manager
Audit Supervisor
In-Charge Accountant
Associate Accountants
Rates for
Audit Sem’ces
$ 104.00
Not Applicable
76.00
62.00
48.00
33.00 to 42.00
Rates for
Management Advisory
Services
$ 130.00
110.00
95.00
78.00
60.00
41.00 to 52.00
Partner
Tax Manager
Audit Manager
Audit Supervisor
In-Charge Accountant
Associate Accountants
Rates for
Audit Services
$ 109.00
Not Applicable
80.00
64.00
50.00
34.00 to 44.00
Rates for
Management Advisory
Services
$ 135.00
115.00
100.00
80.00
62.00
43.00 to 54.00
City of Muskego
Page Five
September 18, 1992
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
fm 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, and
Ms. Renee Messing, 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. 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 & CO.
Donald N. Vilione, CPA
Partner
DNV/klp:dlw:me
The foregoing letter fully describes the services required and is accepted by us.
CITY OF MUSKEG0
Date Wayne G. Salentine, Mayor