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
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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
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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.
BY:
TITLE:
DATE: