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Home My WebLink About4.i. Approve 1990 Audit Proposal CITY OF ROSEMOUNT - EXBCUTIVE SUMMARY FOR ACTI4N CITY COUNCIL MEETING DATE: October 2 , 1990 AGENDA ITEM: 199Q Audit AGENDA SECTION: CONSENT ' PREPARED BY: AGENDA Don F . Darling, Finance Director � � # �„ � ATTACHMENTS: 1990 Audit Proposal APPROV Attached find the 1990 Audit Proposal from our Audit Fi m To facilitate a timely audit completion it is xequested that the decision be made now to approve the audit firm fox the ' 90 audit . As indicated in the Audit Letter, the audit cost will not exceed $12 , 900 . This compares to $11 ,200 for the ' 89 audit . RECOMMENDED ACTION: Motion to approve the Audit Proposal and authorize the necessary signature of acceptance on the audit proposal . COUNCIL ACTI4N: Approved. ^. � M�R"�`�.. y.r.�w`4r a �.s.r, t r +.�.r w+ i. .r�r r+-ss; W un ; . . . .... ... � an. •�r�rtw t- '"� .w�n ww .w w �i. � : � .: :w ,._.x `� 7'^ .e ;; x "�, s. : + > � } t :� _ . ! 1 .v.�: e.: . .:..:. ..-:.'r. ..:.....:»«. «.-...:_... ._..� ' �� Y . .��1'., � T u ..�..... � .4 +M.iw•lnwa � .� ..u.� � �-. .. . .: . "". �.: . vNi. *nhWleh 4i4+•{M�:WVHni��. i]W�4vhvMY.- �^ •• �. . ._: :... ' .� � � . ..; ...t AW+� th�.4V. 1+n �N b... ': 1 :.,# '3.� 1 .�h W" ... `''., eM` A�� 'Y^ — T'1�`.�'"� . _. .....�... .. ._+ '�� ..... �.�.... .. . � .. .. �. .....��r . ..:: _ _ a .�. ..... ...... � � ` . ...-. .....� . .�e. .�'... . �..,. ..'� 4 ��` ...� . ..��.. �, � t � -�. . ..�.. .�.:.. ..1...._.. .��. ..�.w...-�..'... -.. . � :_ .. .«...:..�.+, . ::�.��... � � , � � . . . ....w.... ....: ....i.. ...._�..�_.� .: -...._.... . ._.. . ...... ._ . .. . .. � .. _ .:1 r^ .C�A "� F hY�q ��' � BO�C� VN :�� . ,i.�9 -�.,1, T�:y��1N I � 7 � ... _.. _.. __.. . ...._. .N :;, .,. �INFN& . . _._.. :�: . _ _.. .._. . ... ._, _ ___ ..._.. .. . �I[�1�I�I��....�' SC'�' ?'f -' ' � �.... '�.:::_.. _:'.. - _.. . :.. ... .. ....:�.� .. .. . ..... . . .. : . ...: .. �. .. ... ..� .. . ... ... . . ..`. ,.C.,,E� R. T;,I . F...�:.E.;, p.: � ...P::. ._ A U.. g � C C.:� V: N .T .. „�....�. �.,.�.w. .....,.:.. ....,.r _L � 'C; p. , -.�...... . ......_ ...._... ... ,.. .... . .,_, ,...:_. ..., A N T' . ...... ........ . .. ... ., • _. ��. ... _'..� .,....,.�... - . �. ........ �:...�...... .�......_. r ............,.. _ _ � � _ ,. . ..�.1..� .. . . .., »......�. . .....,,...� .._...... .' . .. -.. ...'.�_._�_ ._ �.-... . . � ,...... . . . ��...:_�... _ . ...r._... �. �,. ........ ...__.�,_.. . -+...� . .. ... . .. .. . . - ,: ` September :'4, 1990 : ' •: _ . . �-.�.n..:�,K.� ... , . - : z ; ,, r .:.. � �.� r Stephen Jilk ..: .._ . ... . . ... . .... .. . ... _. . . ': � ,. _ _... .. . .. _.._.: � . , .. . ' . . _ . . .,, , .,; . , : .:. .. : ,..: . -: _. �City�;'Administrator . ..., , ... _ � . � , . . _ _. ., � C:ity�.�of -Rosemount,' Minnesota • .:. _.. , , . _ . � " �.'vJe �ar:e �pleased ta �-confirm our understanding, of ,_the �,services we :;... . , . . : .. '-are��':to provide for the City, � of Rosemount-- for the year ended � . December. .31 , :.;1990 . :.We will audit the general purpose financial � statements of the City of Rosemount as of and for tne year ended December 31 , 1990 . � . _ . , . ,.. ,._. .. . _ , .... , _ ::: ' `Our asdit. will :.be done in� accordance with. enerall � 9 y. accepted , _ I auditing standards and will include :tests-- of � the _ accounting records of the City of Rosemount and _otner. procedures we.: consider _._, "� necessary to enable us to express an unqualified opinion t.nat tne financial statemen,ts are fairiy presented in conformity with generally accepted accounting principles consistently applied . If our opinion is other than unqualified, we will fully dis�uss the reaso�s with you in advance . - Our p:ocedures will include tests of documentary evider,�n ��up- p�rting the . transactions - recorded � in the ac;.ountsr�,: ,ar,d �ray include tests of the physical existence of inventaries, and direct confirmation of receivables and cert��r, other assets and liabilities �y c;orrespondence with selected individua'ls�; credi- tors, and raanks. We will request written representations from your attorneys as part of the engagement, and they may bill you for respondiny to this inguiry. At the conclusion of our ` exami- r.ation, we wi�3. a?so request certain written representati�ns frc_� you about the fin��cial statem�:�ts ar.d related ,.�atteYs . An audit is bas2d priniarily �n the selective testing of account- in� records and related data; therefore, our aud:t will involv� jiadgment about tne number of transactions to b� examined and the Greas to be teste� . Because w� will not perform a detailed exari�- ination of all transactions, there is a risk that materiu� MINNEAPOLIS.MN �. 7500 Flying Cloud Drive se740 Eden Prairie.MN 55344 16121944-5999 .r,�. : ..:�.ur. _ ..�_.. ..:..�, � . . � . .. . - . . �.,.:,.. . ... .... .,. .. . .. ..,.. .. .... -. .. - .. . .. . . .. � :.. ......... . ....... .. .. . _. .. � -� 5tephen Jilk ._ --� ._ --.�:__ _ _ . _. . . _ �City of Rosemount _.. , .. __:.Septembe r--4�:_.. 19 9 0 -.: : . . . .. _ . ,. . . _ _. : . _ . ___ __ ... .. ._. .._ . _. ..__ . . _ _ - Page Two : . .-.,... . _ , _ - _ _ . - errors, . irregularities, or illegal acts, including :fraud or defa].cations, may exist and not be detected by us. We will advise you, however , of any matters of that nature tnat come to our attention. _ We understand that you will provide us witn the basic information , reguired for our audit and that: you.. are responsible for the accu- racy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in tne preparatian of your financial statements, but - the responsibility for the financial statements remains with you. This responsibility includes tlze maintenance of adequate recoxds and related controls, the selection and application af accounting principles, and the safeguarding of assets. We understand that your employees will locate any invoices selected by us for testing . Our audit is not specifically designed and cannot be relied on to disclose reportable conditions, that is, significant deficiencies in the design or operation of the internal control structure . However , during the audit, if we become aware of such reportable conditions or ways that we believe management practices can be improved , we will communicate them to you in a separate lett�r. Our fees for these services will be based on tne actual time spent at our standard nourly rates, plus travel and other out-af- pocket costs such as report praduction, typing , postage, etc . Our standard hourly rates vary according to the degree of respon- sibility involved and the experience level of the personnel assigned to your audit. Our invoic�s for these fees will be rendered each month as work progresses and are payable on presen- tation . Based on our preliminary estimates, the fee will not exceed $ 12, 900 . This estimate is based on anticipated coopera- tion from your personnel and the assumption tnat unex�ected circumstances will not be encountered during the audit. If significant additional time is necessary or if an extension of our services is required by another qovernmental entity, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. �was,`,� � Stephen �Jilk= _ � ... _ City of:.Rosemount . �n _ _ . ,� . __ . , � 'Septeml�er 4,:.�_1990 ..�.. . . - ._ _ . . - _ _ ... - - _. ` � page :.Three ,._.`' , � __ _ � 1 ..i h�'r t ..l.i:. .i. .., 4 ' ... .`. ... . . .k•.� . . � . � ..: . . - . ... . . '� A '1 . .. � �...-.M � _ ... .. . ... . . . . . . ...,.} ' ; ,. .. ... . .. .. ... .. . ' . ... - � . .- . . �. ... : �_.i.�. . . . . .. ._ ..:. _ ....n .� .'.�S . .�.c. . .. .. ' ' .:.. , .�. ' ♦ „�', y ' . . . . . . . _...�. .. ..... . . ... ._. . ..._ . . .... . .. .... r . . .... :. •'.x � . ... -. . . . . ..__. . . . -�.t �. . �- . -' . . -. � • . :.� '.... '. . ... . .:. .. "., rr. ... .• .. We_,_..aPPreciate� the o . y _ . �' � ` � _ pportunit to be . of . service to the City of. :_.- ,Rosemount and beliebe this letter accurately summarizes ,�the sig- _nificant terms of our engagement. If. you have any. questions, � � � please let us know. � If you agree with the terms of our engage-� � �� ament as described in this letter , please sign the enclosed copy nd return _it to us. _ _.... . _ . . . :�- .. ..: ,,. , ._ . : . Sincerely, . . ' Roger A. Schanus, C.P.A, . �.�'�e� �. ��,l�+�r�...�: _ v _ _ _ - BOECKERMANN, HEINEN & MAYER Minnea olis Certified Public Accountants P , Minnesota RESPONSE: . _ This letter correctly sets forth the understanding of..the City of Rosemount. BY: TITLE: DATE: ,