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CCR1987188COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION 88-87 APPROVAL OF AGREEMENT BETWEEN THE CITY AND CONLEY, McDONALD, SPRAGUE AND COMPANY FOR AUDIT SERVICE (SEWER AND WATER UTILITY) (Year Ending 12/31 187) WHEREAS, it is necessary for the City of Muskego to enter into an City's Sewer and Water Utilities, and agreement to cover procedures to be used in the auditing of the -audited the City's books for over twenty years, and WHEREAS, the firm of Conley, McDonald, Sprague & Company has 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 & Company to audit the City's Sewer and Water Utilities for the year ending December 31, 1987. BE IT FURTHER RESOLVED that said agreement is subject to the approval of the City Attorney. DATED THIS g-& DAY OF , 1987. W FINANCE COMMITTEE ATTEST : CONLEY, McDONALD. SPRAGUE & CO. CERTIFIED PUBLIC ACCOUNTANTS OANIEL A. SCHULZ. C.PA. NICHOLAS 0 OUARTARO. C.P.A VICTOR N. WEILER. C.P.A. FREDERICK L. LICAU. C.PA. WILLIAM 8. VOLKMANN. C PA ROBERT L. GUNORUM C PA OAVIO L. OOGHUE. C.P.A. OONALO N VILIONE. C.P.A. PAUL A. NOWINSKI. C.PA. RICHARD J. HAMMEL. CPA. ROBERT J. HAMMEL. C.PA. THOMAS J. SCHOENECKER. C.P.A .~ MILWAUKEE. WISCONSIN 53222.4478 2825 NODTH MAYFAIR ROAD AREA COOE 414 771.1620 KENOSHA. WISCONSIN 53140 2106 SJRO STREET AREA COOE 414 857-8158 AREA COOE 414 552-7908 501 1 S. PACKARO AVE. CUDAHY. WI 531 10 AREA COOE 414 461-3520 August 20, 1987 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 ar- rangements for our examination of the financial statements for the year ended December 31, 1987. The purpose of our examination 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 ended December 31, 1987, and their conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. If our opinion will be other than unqualified, the reasons will be discussed with you. The examination will be in accordance with generally accepted auditing stan- dards and will include such auditing procedures as we consider necessary in the circumstances. These procedures will include a review of the system of the accounts and other tests of assets, liabilities, fund balances, revenues internal control, a test of documentary evidence of transactions recorded in mation by correspondence with entities outside the Utility. Accordingly, the and expenditures through analysis, physical observation and/or direct confir- examination will not include an audit of transactions to the extent required if intended to disclose defalcations or similar irregularities, although their discovery may result. We direct your attention to the fact that management has the responsibility guarding of assets and for substantial accuracy of the financial statements. €or proper recording of transactions in the books of account, for the safe- Such statements are representations of management. Field work is tentatively scheduled to begin in October, 1987. Final field submitted prior to May 31, 1988. Assistance to be supplied by your personnel work is tentatively scheduled for March, 1988. The audit reports will be including the preparation of schedules and analysis of accounts will be dis- will facilitate achieving the best audit performance with the minimum of time. cussed and coordinated with the City Clerk. Timely completion of this work MEMBERS OF bMERIC4.N INSTITUTE OF CERTIFIED PUBLIC bCCOUNT&NTS. 'CiISCONSIN INSTITUTE OF CERTIFIED PUBLIC KCOUNT~NTS. NATIONAL cp& GROUP City of Muskego Sewer and Water Utility Page Two We will prepare the financial portion of the Water Utility's Public Service Commission Annual Report for 1987. We understand that this report is due April 1, 1988. This report is a special report and therefore it is not co be considered as audited by us. Our fees are based on the time required by individuals assigned to the engagement plus direct expenses. Individual hourly rates vary according to the degree of responsibility involved and the skill required. I will be the partner in charge of all work we will perform for you. It will will call upon other partners in the firm for a second point of view or a be my responsibility to insure that the management receives good service. I specialized knowledge as necessary. The audit this year will be supervised by Mr. Charles 0. Miller, 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, SPRAGUE & CO. Donald N. Vilione, CPA Partner Dm/ tms :me Approved: Name : Title: Date: