CCR1994223COMMON COUNCIL - CITY OF MUSKEG0
RESOLUTION #223-94
APPROVAL OF AGREEMENT BETWEEN
THE CITY AND CONLEY MCDONALD
FOR AUDIT SERVICE OF GENERAL FUND AND
SEWER AND WATER UTILITIES
FOR YEAR ENDING 12/31/94
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, 1994.
BE IT FURTHER RESOLVED that said agreement is subject to the
approval of the City Attorney.
DATED THIS llTH DAY OF OCTOBER , 1994.
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
City of Muskego.
Resolution #223-94 which was adopted by the Common Council of the
10/94 jmb
McDONALD
CERTIFIED PLBLIC ACCOUNTANTS&CONSULTANTS
September 27, 1994
Mr David L. DeAngelis, Mayor
City of Muskego
W182 S8200 Racine Avenue
Muskego, WI 53150
Dear Mr DeAngelis:
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
rhe year ending December 31, 1994.
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-Tern 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 amounr and disclosures in the
financial statements, assessing the accounting principles used and significanr estimates made by
management, as well as evaluating the overall financial statement presenrarion.
19601 \\?SI Bluemound Road
P.O. Box 0975
BrwMield. \\l 53008-0975
Phon? (414) i96-0701 FAX (414) 796-8422
City of Muskego
Page Two
September 1, 1993
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 auditin:
standards, our procedures will include obtaining written confirmation from management concernins
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 finan-
cial statements and is subject to the inherent risk that errors, irregularities (or illegal acts), if the!
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 auditin:
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 1994. Final field work is tentatively
scheduled to begin in March 1995. The audit report will be submitted prior to May 31, 1995,
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 repon
and therefore, is not to be considered as audited by us. The report will be completed prior to thc
extended due date of May 15, 1995. It will, however, be your responsibility to obtain a filins
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 man!
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 Cip
will facilitate the report preparation in minimum time.
The City is required by Wisconsin statutes to make available to the public updated annual repons
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 3 1
1994, and issue a separate report thereon before September 30, 1995
City of Muskego
Page Three
September 1, 1993
Below we have provided you with our estimated fees for auditing, bookkeeping and the preparation
of the financial report filed with the Wisconsin Depanment of Revenue for 1995 with a comparison
to the actual fees charged in 1992, 1993 and 1994.
- AUDIT and BOOKKEEPING FEES
Citv 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
TIF Funds
TOTAL
Percentage Increase (Decrease)
Actual
1992
$ 22,575
6,500
6,500
2.600
38,175
22.833
$ 61.008
Actual
1993
22,523
6,760
6,760
2,700
38,743
23.925
62,668
2.7%
Note: 1994 fees for the TIF Fund audit are
estimated as work is not yet complete.
Actual
1994
23,300
7,000
7,000
2.800
40,100
24.775
(Note)
64.875
3.5%
Estimated
1995
24,100
7,250
7,250
2.900
41,500
25,650
67.150
3.5% -
In connection with developing our 1995 fee estimate, we have included an inflationary factor
of 3.5% We have also projected that the Cin; will utilize the same level of bookkeeping and
accounting services from our firm during the audit process as was required in the prior year,
City of hluskezo
Page Four
September 1 1993
Should the rime requirements of our staff be reduced because of significant improvements in the
accountin. and recordkeeping functions, WK will. of course, bill the lesser amounts as we have done
in prior wars.
The 1995 fee estimates summarized above do not include services for budget assistance, sewer rate
consulration. water rate studies, other special studies 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 the
degree of responsibility involved and the skill required. Our hourly rates for 1994 and 1995 are
shown below
1994
Rates for Management Advisory
Rates for
Audit Services Services
Partner s 112.00 s 140.00
Tax Manager Not Applicable 120.00
Audit Manager 83.00 104.00
Audit Supervisor 66.00 82.00
In-Charge Accountant 52.00 65.00
Associate Accountants 35.00 to 45.00 44.00 to 55.00
1995
Rates for
Audit Services
Partner $ 116.00
Tau Manager Not Applicable
Audit Manager 86.00
Audit Supervisor 68.00
In-Charge Accountant 54.00
Associate Accountants 36.00 to 45.00
Rates for
Management Advisory
Services
$ 145.00
125.00
108.00
85.00
67.00
45.00 to 57.00
0
0
e
City of Muskego
Page Five
September 1, 1993
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.
The audit this year will be supervised by Mr. Callen Strunk, 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/dlw:me
The foregoing letter fully describes the services required and is accepted by US,
CITY OF MUSKEGO
Date David L. DeAngelis, Mayor