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CCR1991218COMMON COUNCIL - CITY OF MUSKEGO RESOLUTION #218-91 APPROVAL OF AGREEMENT BETWEEN THE CITY AND CONLEY, MCDONALD, SPRAGUE & COMPANY FOR AUDIT SERVICE OF SEWER AND WATER UTILITY FOR YEAR ENDING 12/31/91 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 Sewer and Water Utility, and WHEREAS, the firm Conley, McDonald, Sprague & Company 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, Sprague & Company to audit the City's Sewer and Water utility for the year ending December 31, 1991. BE IT FURTHER RESOLVED that said agreement is subject to the approval of the City Attorney. DATED THIS lOTH DAY OF SEPTEMBER , 1991. SPONSORED BY: FINANCE COMMITTEE Ald. Daniel J. Hilt Ald. Edwin P. Dumke Ald. Harold L. Sanders This is to certify that this is a true and accurate copy of Resolution #218-91 which was adopted by the Common Council of the City of Muskego. 8/91cac Deferred 8/27/91 CONLEI: McDONALD, SPRAGUE & CO. Certified Public Accounmrs &I Consultants Frederick L LIWU. C.PA. Nlchalar D. Qumaro, C.PA. Victor N Wetler. C PA. Wdlism B. Volkmann. C.PA, Roben L Gundrum.C.PA. David L. Damhue. C FA. Donald N. Vilmc. C.PA. Paul A Nowmrkl.C.PA. I9601 W Bluemound Rand PO. Box0975 Brookhcld. Wiscanm 51008.0975 (414)796-0701 FAX(414) 796-8422 Krnorha. Wircanrm jIl40 2106 6lrd Strccc (414)657.6156 (414) 552-7909 FAX(+L4)657"lll.( August 20, 1991 Mr. Wayne G. Salentine, Mayor City of Muskego Sewer and Water Utility W180 S7732 Racine Avenue 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 arrangemenrs for our audit of the financial statements for the year ending December 31, 1991. The purpose of our audit 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 ending December 31, 1991, and their conformity with generally accepted accounting principles. If our opinion will be other than unqualified, the reasons will be discussed with you. 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 how, 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 Utilities' assets). Accordingly, as required by generally accepted auditing standards, our procedures will include obtaining written confirmation 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 state- ments 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. City of Muskego Sewer and Water Utility Page Two August 20, 1991 Field work is tentatively scheduled to begin in September or October 1991. Final Geld work is tentatively scheduled for March 1992. The audit reports will be submitted prior to May 31, 1992. 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 of time. We will prepare the financial portion of the Water Utility's Public Service Commission Annual Report for 1990. We understand that this report is due April 1, 1992. This report is a special report and therefore it is not to 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 be my responsibility to insure that the management receives good service. 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 Cicy 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, McDONW,,SPRAGUE & CO. Donald N. Vilione, CPA Partner DNV/klp:me The foregoing letter fully describes the services required and is accepted by us. CITY OF MUSKEG0 Date Wayne G. Salentine, Mayor