CCR1996272COMMON COUNCIL - CITY OF MUSKEG0
RESOLUTION #272-96
APPROVAL OF AGREEMENT BETWEEN
THE CITY AND CONLEY MCDONALD
FOR AUDIT SERVICE OF GENERAL FUND AND
SEWER AND WATER UTILITIES
FOR YEAR ENDING 12/31/96
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-Treasurer 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, 1996.
BE IT FURTHER RESOLVED that said agreement is subject to the
approval of the City Attorney.
DATED THIS 26th DAY OF NOVEMBER , 1996.
SPONSORED BY:
FINANCE COMMITTEE
Ald. Domonic D'Acquisto
Ald. David J. Sanders
Ald. Mark Suhr
This is to certify that this is a true and accurate copy of
Resolution #272-96 which was adopted by the Common Council of the
City of Muskego.
11/96imb
October 8, 1996
CERTlnED PtiBLlC ACCOLMA\TS & COYSULTANTS
Mr, David L. Dehgelis, Mayor
City of Muskego
W182 S8200 Racine Avenue
Muskego, WI 53150
Dear Mr DeAngelis:
We are pleased IO serve as independent accountants for the City of Muskego. This will
confirm our understanding of the arrangemenrs for our audit of the general purpose financial
statements for the year ending December 31, 1996.
Our basic engagement is to audit and repon on the general purpose financial statements of the
followin,o funds and account groups:
Governmental Fund Types:
General Fund
Debt Service Fund
Special Revenue Fund
Capital Projects Fund
Proprietary Funds:
Warer Utility
Sewer Urility
Fiduciary Funds - Trust and Agency
Account Groups:
General Long-Term Obligations
General Fixed Assets
Our audit will be conducted in accordance wirh generally accepted auditing standards and will
include our examining, on a test basis, evidence supponing the amount and disclosures in the
financial statements, assessing the accounting principles used and significant estimates made
by management, as well as evaluaring the overall financial statement presenration.
Code! bIcDonald LLP
19601 \Vesesr Bluemound Road. Suire 3
Broobield. WI 53045-597-1
Phons 1111) 796-0701 F-\X (414) 796-8421
City of Muskego
Page 2
0 October 8, 1996
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 City's assets). Accordingly, as required
by generally accepted auditing standards, our procedures will include obtaining written
confirmation 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 statemenrs are
free of material misstatement. Accordingly any such audit is not a uarantee of the accuracy
of the financial statements and is subject to the inherent risk that errors. irregularities (or
illegal acts), ifthey 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 December 1996. Final field work is
tentatively scheduled to begin in April 1997 The audit reporr will be submitted prior to May
jl. 1997 Assistance to be supplied by your personnel, including the preparation of schedules
and analysis of accounts will be discussed and coordinated ivith the City Clerk. Timely
completion of this work will facilitate achieving the best audit performance with the minimum
rime.
We will assist in the preparation of the Financial Report Form for iVisconsin 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, 1997 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 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
Ciry Determination of these allocations by the Ciry 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
e,xamine the financial statements of the City's Tax Increment District Funds for the year ended * December 31, 1996, and issue a separate repon thereon before September 30, 1997
City of IMuskego
Page 3
0 October 8, 1996
Below we have provided you with our estimated fees for auditing, bookkeeping and the
preparation of the financial repon filed with the Wisconsin Depanment of Revenue for 1997
with a comparison to the actual fees charged in 1994, 1995 and 1996.
AUDIT and BOOKKFFPING FFES
City and Uttlmes
MAcrual Actual Esrimated
19941995 _L49h1997 ...
General Fund and all other funds
exclusive of funds detailed below S 23,300 24,100 24,900 25,775
Water Utility
Sewer Utility
7,000 7,250 7,500 7,750
7,000 7,250 7,500 7,750
Additional audit procedures related to
Sewer Mortgage Revenue Bonds "_ ." "_ 500
Preparation of Financial Report filed
wirh the Wisconsin Dspanment of
Revenue
Subtotal
TIF Funds
m 19" m iLbnn
40,100 41,500 42.900 44,875
24.715 25.6jO 26.55Q 27.475
(1)
TOTAL S 64.875 67.150 69.450 72.350
Percentaze Increase (Decrease) 3.5% - - 3.5% - 3% - 3.46 %
(2)
-
Notes:
(1) 1996 fees for the TIF Fund audit are estimated as work is
nor yet complere.
(2) Psrcent increase of 3.46% represents chanze exclusive of
additional fees related to Sewer Mongaze Revenue
Bonds
In connection with developing our 1997 fee estimate. we have included an inflationary facror
of 3.46% We have also projecred hat the Ciry will utilize the same level of bookkeepin! and
accounting services from our firm during the audit process as was required in the prior year
City of Muskego
Page 4 a October 8, 1996
Should the time reauiwnents of our staff be reduced because of s lLrnlficanfrovements in
rhe accounu and recordkeeping functions. we will. of course, bill [he lesser amounts as we
have done lnprlor veau.
The 1997 fee estimates summarized above do not include services for budget assistance, sewer
rate consultation, water rate srudies, other special srudies or accounting and bookkeeping
consultation which occurs outside of the audit process.
..
Our fees are based on the time 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 he degree of responsibility involved and the skill required. Our hourly rates for
1996 and 1997 are shown below:
Partner
Tax Manager
Audit Manager
Audit Supervisor
In-Charge Accountant
Associate Accountants
1996
Rates for
Audit Services Services
S 120.00 s 150.00
Nor Applicable 129.00
90.00 112.00
70.00 88.00
56.00 69.00
37.00 to 47.00 46.00 to 59.00
Rates for Management Advisory
Rates for
Audit Services
Panner s 125.00
Tax Manager Not Applicable
Audit Manager 93.00
Audit Supervisor 72.00
In-Charge Accountant 58.00
Associate Accountants 38.00 to 49.00
Rates for
Management Advisory
Services
s 155.00
130.00
115.00
90.00
71.00
47.00 to 61.00
I will be the panner 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 m partners in the firm for a second point of view or a specialized knowledge as necessary
< City of Muskego
Page 5
0 October 8, 1996
The audit this year w ill be supervise
1 other members of the staff as necessary
Mr Callen Srmnk, CPA. Au dir Manager. assisted
We look forward to our association wirh 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 letrer correctly expresses your understanding of rhe agreement, please sign rhe enclosed
copy where indicated and return it to us.
Very truly yours,
CONLEY McDONALD LLP
Donald N Vilione, CPA
Panner
The foregoing letter hlly describes the services required and is accepred by us
CITY OF MUSKEG0
Date David L. DeAngelis, Mayor