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HomeMy WebLinkAbout9.e. 1987 Audit Proposal ApprovalTO: Mayor Knutson Councilmembers Napper Tucker Walsh / Willard %JJ FROM: Stephanj /f Jilk, Administrator/Clerk-'1�. DATE: October 1, 1987 RF_ 1987 Audit Proposal Gentlemen: Attached find a proposal for the completion of the audit of city Financial records and the preparation of the 1987 fiscal operating year financial statement. This proposal is from the same firm as retained in several previous years. The proposal outlines all required services to complete this process at a fee as same a 1986. I recommend its acceptance. smj Attachment HHNBV&ffi4YEJ? C E R T i; F 1 E D P U 8 L I C A C C O U�I N T A _N T S , Steve Jilk&, City Administrator City of Rosemount 2875 145th Street West Rosemount, MN 55068 Dear Steve: Enclosed is an engagement Setter for 1487. Please review it and call me with any questions. We are proposing the fee stay approximately the same as last year. We intend to rely on -Jeff and Don a lot in preparation of workpapers and account analysis. We enjoyed working with you last year and look forward to the future. Sincerely, Allen A. Heinen, C.P.A. BOECKERMANN, HEINEN & MAYER Certified Public Accountants Minneapolis, Minnesota September 24, 1987 MINNEAPOLIS. MN Suik 345/1090/ Red Circle Drive MintWoka, MN 55343 16121433-9965 s HBNBV&M4YB? C E R T i f I E D P U B L I C A C C O U N T A N T S September 22, 1987 Steven JilkA City Administrator City of Rosemount We are pleased to confirm our understanding of the services we are to provide for the City of Rosemount for the year ended December 311 1987. We will audit the general purpose financial statements of the City of Rosemount ' as of and for the year ended December 31i 1987. Our audit will be made in accordance with generally accepted auditing standards and will include tests of the accounting records of the City of.Rosemount and other procedures we consider necessary to enable us to express an unqualified opinion that the financial statements are fairly presented, in conformity with generally accepted accounting principles consistently applied. If our opinion is other than unqualified, we will fully discuss the reasons with you in advance. We will also perform the neces- sary testing to prepare the Legal Compliance Audit Guide required by the State Auditor. Our procedures will 'include tests of documentary evidence sup- porting the transactions recorded in the accounts, and may include tests of the physicalexistence of inventories, and direct confirmation of receivables and certain other assets and liabilities by. correspondence with selected individuals#' credi- tors, and banks. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our exami- nation, we will also request certain written representations from you about the financial statements and related matters. MINNEAPOLIS. MN Suite 345/10401 Rad Circle Drive Minnetmka, MN 55343 (6121933-9965 Steven Jilks City of Rosemount September 22p 1987 Page Two An auditis based primarily on the selective testing of account- ing records and related data; therefore, out, audit will involve judgment about the number of I transactions to' be examined and the areas to be tested. Because we will not perform a detailed exam- ination of all transactions, there is -a `risk that material errors, irregularities, or -illegal acts, including 'fraud or defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention. We understand that you will provide us with the basic information required 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 the preparation of your financial statements, but the responsibility for the -financial statements remains with you. This responsibility 'includes the maintenance of adequate records and related controls,, the selection and application of accounting principles, and the safeguarding of assets. We understand that your employees will locate any invoices selected by us'for testing. Our examination is not specifically designed and cannot be relied on to disclose material weaknesses in accounting controls How- ever, during the audit, if we become aware of such material weak- nesses in internal accounting control or ways that we believe management practices can be improved,*we will communicate them to you in a separate letter. Our fees for these services will be based on the actual time spent at our standard hourly rates, plus travel and other out-of- pocket costs such as report production, 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 invoices 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 $8,500. This estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circum- stances will not be encountered during the audit. If significant additional time is necessary or if an extension of our services is required by another governmental entity, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. 1 Steven Jilks City of Rosemount September 22, 1987 Page Three We appreciate the opportunity to be of service to the City of Rosemount and believe this letteraccurately.` 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- ment as described in this letter, please sign the enclosed copy and return it to us. Sincerely, Allen A. Heinenj,C.P.A. BOECKERMANN, HEINEN & MAYER Certified Public Accountants Minneapolis, Minnesota RESPONSE: This letter correctly sets forth the -understanding of the City of Rosemount. 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