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HomeMy WebLinkAbout4.i. Approve 1989 Audit Proposal f F 31 y� 1�� . } F1 E{1,� � ��',� 1 '1� �s i� • �� �, ����� f)� • > 1 1 'l I 1 1 L"'' � � kT"``� � ,f�,,. �' .,, �g � � RC?`,FM[,tf i4s? F.1iP�1Nf ..i)i�RV ',�-itr,t, T q ) . . � � ���,�, . � ..._..� � � ,�,,p�,.-��'�A����3�'���� . � . f , .l.-'.t Fttl �� . .. 4)f�,•'�! . . � . �'�� ii'EM # �. � August 25, i989 T0: Mayor Hoke City Council FROM: Stephan 3i1k, Administrator Subject: 1989 Audits Attached find the 1989 Audit Rroposal from our Audit Firm alang with corr�nt from the Finance Departrr�nt. To facilitate a timely audit completion to provide audited figures for the transition to the new cQmputer system it �s requested that the decision b� made now ta approue the audit firm for the '&9 audit. As indicated in the Audit letter, the audit cost wi11 not exceed $11,ZQ0. This compares to �10,500 far the '88 aud�it. This will be on the September 5th Agenda for your aetion. � • � � } r �� • � ( '� " • i !J -. ��.J . . Y i � z � . . , ..� . . � � . i . . }��,S•�'�t� y,� i . . . . . . . ' . � . . . . . � .. # August 21st, 1989 T0: S Jilk, Administratur • , . FROM: D Darling, Finance Director Suhject; 19g9 Audit Letter As we have brief1y discussed the "Computer Instailation and Conversion" the subject of Audit Timing came up and I advised that I would be requesting th� Auditors submit their proposal : as soon as possible to aTlow us to use them early on in the process of closing out the End of the year qaictcly. This � will provide us the n�rmbers to convert to tMe new system on a more timely schedale in 199U. This is a must and hopefully we can enjoy Couneil approval in the very near fiuture on ti�is. Naving reviewed the costs of the 1988 audit their proposal seems to be in line. Each year they are mandated to perform more investigations and comparisons which drives the cc�st up. We have been successful in refining our Computer infarmatiorr ta relieve them of some of the redundant ci�ares that saves them time and the City money. I am after reviewing their proposa] requesting that you a�proach the Council with a request for approval and autharizatian to sign the documents. Thanks. . � • • I���D� I�I�A11►NhfF�NJ:d� �'cI�V�A���:�/� C E (Z T 1 F i E U i' U 8 L 1 C A C C O U N T A N T S Mr . Don Darling Finance Director �ity of Rosemount 28ZS 145th Street West Itosemaunt. MN 55068 Uear pan: • • Th� faZlowir}g is a descriptic�n uf the timing of the services we propos� to provide fo'r the City of Rosemount� far the year �nded Dece�aber 31 , 19$9. We have alsu included an ec�gagement lett=er for Steve to sign, which sets ottt in m4re detail the actual terms of our engagement. Up�n acceptance of our proposal to do the audit �or 1989, w� will i�nmediately get our files established and begin t+� ge� +�ur year- end eonfirmatians ready. �n mid-October we wiTl gerform two days af preii�ninary wark, wl�ic3�� will inclucie firtal planning with you and Jeff and develoging a iist p€ areas tltat ne�d to be addressed early iri order to assure getting the audit eo�npleted ar► a taimely taasis. We wi11 also perEorm several �JCOt`E`.dLtl'E?S that �an be ciQne c�n ari inEerim basis rat}��r than during our final fieldwQ�k. In la�.e January we will begin our audit fieldwork, whieh w� �x- �ec:t ta take two weeks. At the end af fieldwcark we will assist you in elosing yaur general ledger for the year . We wilt t.hen �u�nr�lete the finanezal report ar�d marlagement advice letter fc�r �rese��tat ion to you, Steve anc� t��e C i ty Caunci 1 . We look ��rwar� to workir�g witl� you and tl�e Cit�y of Rose[nourit again t.his year and h�p� that c.he timii�g and ott�er terms of t�ie et�yage�ae���t �►ec�t with y�ur ap�arovdl . Respectfully submitteci, Rayer A. Schanus, C. P.A. �"�,��i. '3�t'G'�t1t't'"`" 13C�ECK�12M1�NN, E�EINEL�3 & h1AYFR Cer t i f ied E�ubl i� l�ccc�iantan�.s Mic�►�ea��olis, Mifan�sota Ruyust 14, 1989 � . ,. _ `� � �. - �• . � �I������i�.���1��►N hfE�Nl�116c IN��N�ER C E R T,.1. F ! � .D , ', :F U � L 1 G_ . A C C O U . N j A N T 5 Au�U$t I�t .�9$;�. id . , �� � � ��;r S •en ��.y�. 3 r .� i , . Lt�... i1� ' r� ! Xf� h"� . . . . . � . h vL y .. �, i �1J�. . . . 1� ' N 1y : r �'. / �:�ty P'4F �7i5` � .. . � . Y � �f;' � V f. "1 e�4 �t� �� i C/'Y: � . : � _'; , ,�, i � w : f.;, . . .. . �,:�;�.�T ': y °ru!�#a a4 �� .� - :-.R�la.�� �t+� . .. . . . � � . � �7���+i,{Dr+♦, M�1� .. f�.:�' � �;�.'�..jLe���..5!� y, i � i'�( �'�p� fy r k i���. � . . .... . . ���Y.Adm�.n���'�ta���f... '����,f , , ,� r� „. ., � ('� �.. y..�.�. ..... t�, ���. �p . :� . � �� � ���A "�f�. �����Q����{ ie.'�"T��'�QF�� � V 11' '� k ��+1 + f�t4�. . . . � r � � � r'. I�����.i Kpsw,,�ba +- � e� .,�7,ea kdL'.�f. � . . �. . . . � . . . ♦ 4' .} '�, � } i 'M�.Ya� fi+ a a4 .'�tv.rA # a �.bt � . . . . . .i �. "y S s r r+rr 4� '� � "�ia . t i�} r a *N�.� +.. . ..� { ,1�+ . t >:� , • -, :e. � }� �C}91� • ; . . . . � � .�: di r ;r w .,.,w ...t�� R �. . . t • � .�� y,�t ar�r-. 1 i �'. y, . , . . � � . �. . .. . .'. . . : f..`.`�' � . _ , . . We �rs .,�ale�&s�d y.�Q, k�������t° pu� ur►der��at�d�.nq�.,�o�..�Mt��,�,�eruices we a�e : to : ,�x4Y�.d� , ���;��h��.���ty , of �.;Ro�e�ounk;���4r,'; the� '.year ended D�Ge�bsr , 3�, 19�9 r ,��,t�.Ws,:,will r�udit� �h� >�gen�ra�: purpo�e �inanc�.al �tats�n�n�� Q� th� ,��,,t�r...oE Ro�e�neunk Y:a� .o�. ac�d ,fQ�� the ye�r ended � Dec�mk���' ,���r: �g�`�,. �`.� . L:, . ,�,�w _ . ,� : ... ,;. . � , Qux' , audlt �W�.�.1�. b� don�� �.n . �ecordance � w�t�h ;9eneral�y accepted audit�.#�� .'��ar�c�arc�S ,,�nd,-' wil.� . include �tests �''Qf the � ac�fluntxn� reco�de o# �h� C�.t�;p�;RosemQunt a�d othe� prci�edu�e$ w� �consider t�eces�ar�► t�a ��ab.�+�;;us . �o expres� �n.:unqua�.i��,ed.,opinion that the f���tr�G�.�l�: �t���n�ep�s..;.�are � f,�irl:y � pre�ent$d .�:��,n �<ca�formi�y with, � gen���X�.y.-:� a��ept�c� �;���Qunting �r�,ne�p],es ;:,co�si�tsntly applied. I� ou�� .o�ini�on i� .othez than unqual 'lf�ed,��,'wez;.wa.li. fully discuas th� x���oc�s w�th yo�t�,,�� a�iVance• < ;. ':;.. :, , . � ,��: , .:. .. .: : `:, -'� ��.:F . = ' : . �u�� rc�cedy�ss . wil�,:���cXude . tests� �af . doeu�nen�a,ry �vidence sup_ �A . ,poxk �9 .• t���.,.. �.�aCtaaA��qns < reaorc�ed �. i�.:,.t�Q.;:'ac�ounts, and may iric�.yd�;�'.k�st� �o�.�.:���,�,,ghysi.Gal � >:sx�StBn��.: .of��; inv+�ntories, and diree� cot3����1c���.A�;,�R�'^receivablee :a�d. .�ex�'��.n.�:ather ..�a$sets and �7.�b��.�ti�$ ..�Y �c�rx!��,pe��der�ce witb � selec�e�l,.;��.�diuiduals, credi- . �t�ra, ` �r�d bank�, .,_;;:rW�'�Y.Will, request.':.wri�ktQn;::rep�re��ntatians fro�► yoyr :at�ort�eys-;as,.�p�;��;:o� jthe. �ngagement,=;',and;-.they._may biil yQu fo� � �'esponding . to ��h,��n�.'.inqUiry....�.;A�. ;khe� cGn��,ut�ion of our exami-- ' nation{ we will. al�q;4zec�uest•:cert�ia�wri�ten�icepresentations fram you abo�t th� finaqai�.�. atatemen�$ a�d zelat�d,:�atters. : f . . �, ., . .. .;i�.na �—ir+-�fi.��'�, +:•.-� a � `.. . � � � . � r : � .�:., raw'�[ � ���i:-. ..... � .•.,. . ?:. �,e .. w eK�..? , ... . . . . . . . . `�' �.v . .- q .. .:•' _ � . . An�. �ud�� °.i$;:,b���d P�:�,�I�a��.ly��-Qn� ths �e�leck��Y� .��sting of '�aecount- �:�.n9 � �'��Q���,�.��d �x��.��e4�.xdataf 'th�er�fo�'���9:..o�r�;:�udit�, wil.� inuo2ve ,� ,��udgm�r��.;�abc�pt; the� �li��lasr Af transa��ior�$�;;h�A. be. exam�ned and the � • � a�eas tQ be:::.�.�s�ed,;:��#s�at��e we will :�tot p$rfQrm` a det.aiZed exam- • � �.natior�, o� .�,al�. . tr�.t��a+��ipr�$, ��'her� . , is . �.� �: r, �.sk . �hat material � , . *� � ut�! � 4 /} `./ � ... � ;; � -��.t tY.��; .. ., rF .. � � . . . , . ''' .r t{a't����.d.� �Ic3 �'♦ . �.. + � •a . n� . . . � � u 5 s � � ` � � !�'.r� �n�Y�' �p �•w ` � ' , �.�•�r �!`dt�, � } � . . . i -w y ��W�,tr���.��a � . '� t r. �a� �A, �'; F 4 „�.' � � . . .. A ..o ; t .�q ay jw+,t�;'�,�yr �, f. � � t d r '+r�a.*�� i.i � . . � ��3 , - V�����sat., y D a �`Y +7r �;t 16 �r�. �Y u t '. , � � � . . � . . . i r t4o 'p � ... �. s � 7�. . _ . � �., lf�F` y j 'y: I � Yt }Mt S'�f.� 'a ' . , . . • � 8 .,t ��y�}tr��� } fi � ��� ;a S ts'.�s : 1� � ' . . � . . . � Y +r 1,��.� ;�°� t, �'..t � '� : � . MINN �~' • �. . � b r� ��. ., . * , , ' . . EAPk1LIS.MN . . .. 7500 F�C.f�4 L�itK M7AQ ,�g Eikn Prai ,MN 55344 ti.,:; I6Ri 99�-5449 'i r,: _ - � 4 . .., . .. .., . . , . � . .� . . . . � � . . . .....:. .. .... ....._.:. ..�,..�,..:::�c....u.......... � � . � � . ' " �. � steph�n Ji lk � - �; � ,:. R City of Rosemount August 14, i989 . Page Two errors, ir��g�la�rit��$, o� illegal aet�, � including fraud or defal�at�.on$� may ;�x}st and not be detected ,. by us. We will adv�se yo�, hQwever� Qf an� �natter� of thak ,:,�►ature that come to aur attet�tion, , . : ; � . . , ��.r. , ' We uad�rstand tha� �yoq �will pxovide u$ with �he ba��:c .ir�formation r�qui�ed �o� ou� audit; and that you are�. responaible. fQr the accu- raGy �t�d :.�4�►Pl�t�t�$a�.', c�f kh�t infor�►at�.on., .;::We .wi�l�. advise you abQu� ap�raRri�te ��rolarltit�g prineiple$ ,and �thsix .�pplication and wall a��ist�"i� th$..Px�p�ratior� of your .#inanciel, statemsn'ts, but ttte �espon�ibi,�.i,ty ;� f4�'; �k►e �inancial �,.state#�en�s xemains with you. This r��spona�bil�ty ineludes the m�in�enartce , of adee�uate recoz'ds �nd. relatee�.�..epr�trois, the aelectiAt�; and application of accour�tinc� pri,nciple�r,;.�nd "�3�e safeg�axding _+�� �.assets, � . ,rr:, s . •,�� . „, ,� . ,. . . . < .,, .. ,, ,,.., : ,. .,: .,. , . . We • unde�����d th�� ;. Yaux employeea wf�.lf :locate any invoices s�l�etec� by u� . fo� t$st��g. - � .:s ` ' . • ,,, ,�'' P' ct • ' 'S�. ' "y : 4.,y..x t+ e,;. ,.�. �.��� � .�n .• �{ � .' :. � . � •t'YY �.I�+,-r 1.�.. i�. .. . 0i}� �ud�,� ��� �ot �p���,,���aliy deai.gn�d �nd: cannQ�.• be�'relied Qn ta di��loae:�sportab�.�,�;;���d�,ta�Qns, that,;�s, ;.s�gn�.#i�$nt�.dafic.ieacies in th� � design a�`.:o�.;;��P�r�tion of �he ir��sa�t�al�;:�;co�►tro1 ,�-structure. However, . dur. ing th��-�4��iit, : if we be�ome .��wars�',o�..�uch `regortab�e condik�Q�� �.Q�..' way��";:���G• we believe ma�ageme�t � gractices can b� i�proved� , w� ,wl.l� �gm�unicate them to .you i�3 $;'sepazate. letter. : .-�'�z ;:,... ..; �,• �� � ;;�� .. . Our fees for. ��hese "se�rvices wi ll. be .• b�.sed . on �.the.`�ctual time spe�tt at our•. st�t��iaxd #�ourly xates, ;pl.us�.txav�l and oth�r out-of- po�ket .:co�t�.. �yct�, �,�s<; �epart productiotl,,,. tYp�t�q. postage, etc. ouar ��a�c�drei hau��.�+;-xa��s v�ry accordinc�.ta, the, degr�e of respan- sibility ir�vQlv�d:���nc�. , khe expeac�ence.: �.Qv�1�: Q� the personnel assig�n�d�. �p you� � �t�e�j.�,.- Qur irlup�ces .for: �these fees wil,i be xende�ed eaeh m����<�,� �:wozk pac++�gress�s� and a�e.y�ayab2e on presen- tation. Based , on � ouz prelimi�ary ,es�imate+s.;,- the fee wi�i nat exceed �11.,200. : . Th�.s �ss�imate �s laased , car�::.�nt�tcipated coop+�ra- tion frc�� . your �pe�son�al; .and the : assu�p�ion �: that unexpeeted cirGumstanc�s :, wi�.�,� .no�� be . encoun�er�d,..:duri�ng '.the . �auciit. If �igr�i�i��n�:� addit�.Ana� : ta.me is n�ce�aary:. or,7;i# � a� �extension of ou� servi.ces �i� r�qy�red by another goYernmer►�al entity, we wili diseuss i.t, with yoy�.:;a�d a�rive at a new �ee , esti�+ate befare we �ncur tha adc��.tiana�.; �osts. , , �;+;�',. . ' . ' �;;: ,.e,�, . - '� � . . .! 4 Al�� !� � � � � . .,. . . ' . ' . . . . . . . .. ' . . .. f�. ,Y. 4a.. . . . �- . � , . . t �T{ � , ��.. . . � . . � . . . .. . •�ai y . . . . � � . , . . � .a . , :f 4 f. � . ,. .. . " . . . � . . . ' . ,• ' . . i. '' . ' . . -vi� � _ . � � ' . . . . . �. . cl?� .. . � �. . . . . . . .,. . . . . . . . . . . . . .. . . . . . . . . „ � . .. � . .... •:f.. .. . �.. � . . . . . � � ♦ . � . . . .. . :' � ' ' , - . . . ,' . > > • Stephen Jilk � . t ei�y of Rosemount � • August 14, 1989 Page Three �' . We appre�iate ths� opportunity to be 4€ service to the City of Rosemount snd b�l�.�v�: �his letter . a�cur�tely;:;au�a�ari�es the sig- n�.�ican#� ;tp��a,� , c��:b��r���� �ng�gemenk. ��� If,:yca���have ; any : questiona, p1�a��: ��tiva, kqc�W,�;�,�.��� ;yQa ..agree. wit�r,t�e�,��xa►s;�of:.our engage- � �� e� ':� '+thi.s . ` . men�...�a: de c b ,�,r �et��r� 'p��a�ee,*��.�n 3�he ,�nclosed copy d��d ����41xn .��i ko ut���,�y �� : , �:, t .r , : " ,� ��.. ..�46 t 1 � Me . t ?�C't�'uA • �;` t�F�a;\t �r� . �ti i( . . . . � � � � � •. tyc,�n� ' Sincez�ly�, e9k�• '� PY�� � . � y � . . �� % . rt , �i _ . . t C3�A�,�'�� ... .+,y.• ,'�.�:�� � ... . . . �.���.� a , Allen A� :�einen,: ��,P�.A. .�... � , , ,° � ..,u:a, ,,• .�; a r•� r,•,���r f ,,,, •`,k,� . ' } iy?R* '�", ✓� ' ,��F`� � . � � . . . . , , . � . �.� � . . . . ti. � - . .., . �, . 5 ' ' � . � ;� {��'r, '' , . $OECKER�NlANN� �"H���EN '&±,MAYER . , n � �:. . ,t_ � .. yf�<.:�t1� r ..'�� . �� �. 1rV1+4�Ik4�V4l���M��A�t ;�A�i�i�}1+��.�i7��� � � . . Mi�t�ea�ii�s,- �i�.nne�4�� , � � � ,a� � � ' � � � �, .� ;; � � �:.. .r, ' t ��L � - � � . � r 6 � ,'; _ RESPONSE i % '`'�:°'r,`, t.• ,,.. x��_ > , ,. ' .�.t,,'. ,. :: z �. . Thi� l�:zte�� 'corr�etl�y. �ets fprth the� yunderstanding .of ''the City of ���eAtOunk. , � . .. � � R,4�*H l{�4 �,! y.� �^�$�� , . . . . �.Y I f �r F 7(f4S`:�y �. ... � f y� � � . . . �i�„ a y"±�3.�o tIPP.+� s> : w f ��f�i�� � . . ' . . . . . �.JF•S" 42 .��,j .M ,�'.' . �:� � 'y����� • . . . . . • � .. ,...;:� . .�. ...�,�x ;. „ .. . ' . .. . . . . DVt 5. . l��Tb" f ��� • .. ., . . � 4 . a4 �4} . .... . . . . . r.a;� t� h . . , , ; ,, , , .- , . .. . ; ... , ;. . ...-� ;: .�, ��::. ' '�� . �. .. . .�. . �,.1',.,'��. � TI�'Lks ' ` . � • � . � ;��� �_. 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M ! :> � i bU' ,f�� � • t �"d ; � . -- . . . � . e� ��,yi � �, .,'� .. � . � ..,v c�g t;c�.�„�� r i� u t�q'�.rx. 7� �� �1. . � � . . ..� � j a 4 ,' �x�� ri . . . . � ,M.' '�a �'���.��ais�d':ti .�; �Y �'�if f .i � . . � . "f� +e �s5 ��;F� � . . .. � R •. ,.. ..� . . . t .'' t�tp,t r. y.. • , .., ' . '..% ��! • . � . . q . .�, y i . y'y.� ., . . . . . . . i . �.+ � , � .. ,�1 i�.�ti � . . • . .. � � . , r � .ti. C� , � . . � , � � ' .' . �� . . � � . � � �. � . + :� � a .... . . '. , . i�: .. � . � - � � � . � � . . . � � , . . � .. � .. .. �� . .. . . . . . . . . � . . . .