CCR1997279COMMON COUNCIL - CITY OF MUSKEG0
RESOLUTION #279-97
APPROVAL OF AGREEMENT BETWEEN
THE CITY AND CONLEY MCDONALD
FOR AUDIT SERVICE OF GENERAL FUND AND
SEWER AND WATER UTILITIES
FOR YEAR ENDING 12/31/97
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 Finance Director 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, 1997.
BE IT FURTHER RESOLVED that said agreement is subject to the
approval of the City Attorney.
DATED THIS 25th DAY OF NOVEMBER , 1997.
SPONSORED BY:
FINANCE COMMITTEE
Ald. Domonic D'Acquisto
Ald. David J. Sanders
Ald. Nancy C. Salentine
This is to certify that this is a true and accurate copy of
Resolution #279-97 which was adopted by the Common Council of
the City of Muskego.
11/97 jmb
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CERTlFlED PUBLIC ACCOUKIANTS&CONSULTANTS
November 5, 1997
Ms. Dawn R. Gunderson, Finance Director
City of Muskego
W182 S8200 Racine Avenue
Muskego, WI 53150
Dear Ms. Gunderson:
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, 1997
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.
Conky McDonald LLP
19601 West Bluemound Road, Suite 3
Brookfield, WI 53045-5974
Phone (414) 796-0701 FAX (414) 796-8422
City of Muskego
Page 2
0 November 5,1997
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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 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 November 1997. Final field work is
tentatively scheduled to begin in April 1998. The audit report will be submitted prior to May
31, 1998. 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, 1998. 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
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, 1997, and issue a sepaiate report thereon before September 30, 1998: a
City of Muskego
Paee 3
0 November 5, 1997
Below we have provided you with our estimated fees for auditing, bookkeeping and the
preparation of the financial report filed with the Wisconsin Department of Revenue for 1998
with a comparison to the actual fees charged in 1997.
AUDIT and BOOKKEEPING FEES
City and Utilities
General Fund and all other funds
exclusive of funds detailed below
Water Utility
Sewer Utility
Preparation of Financial Report filed
with the Wisconsin Department of
Revenue
Subtotal
0 TIF Funds
TOTAL
Actual 1997
25,775
7,750
8,250
3.100
44,875
27.475
(1)
22tm
Estimated
1998
25,775
7,750
8,250
3.100
44,875
27.475
22JZ
Notes:
(1) 1997 fees for the TIF Fund audit are estimated as work is
not yet complete.
The fees quoted for 1998 are the same as the prior year. Any inflationary increase in
charges should be offset by efficiencies of having a Finance Director.
rn
the accountine and recordkeeDim functions. we will. of course. bill the lesser amounts as we
have done in Drior years.
The 1998 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. Also, the fees quoted are based on the
premise that the books and records will be in a condition at least equal to that of the prior year.
L.
City of Muskego
Page 4 a November 5, 1997
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 the degree of responsibility involved and the skill required. Our hourly rates for
1997 and 1998 are shown below:
1997
Rates for
Rates for Management Advisory
Audit Services Services
Partner $ 125.00 $ 155.00
Tax Manager Not Applicable 130.00
Audit Manager 93.00 1 15.00
Audit Supervisor 72.00 90.00
In-Charge Accountant 58.00 71 .OO
Associate Accountants 38.00 to 49.00 47.00 to 61.00
0 1998
Rates for
Rates for Management Advisory
Audit Services Services
Partner $ 130.00 $ 160.00
Tax Manager Not Applicable 130.00
Audit Manager 98.00 115.00
Audit Supervisor 75.00 93.00
In-Charge Accountant 60.00 73.00
Associate Accountants 40.00 to 51.00 49.00 to 63.00
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.
City of Muskego
Page 5
November 5, 1997
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 LLP r)
Donald N. Vilione, CPA
Partner
The foregoing letter fully describes the services required and is accepted by us.
CITY OF MUSKEG0
Date Dawn R. Gunderson, Finance Director