87-R-14RESOLUTION NO, 87-R-14
WHEREAS, at a special meeting of the City Council
held February 4, 1987, Brent Millikan & Co., P.A., was appointed
by motion to perform services as the City auditors to prepare
the 1986-87 audit for the City of Edgewater.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF EDGEWATER, FLORIDA:
SECTION 1: That the City Council of the City of
Edgewater, Florida, authorizes the appropriate officials of the
City of Edgewater to execute an agreement for professional
services with Brent Millikan & Co., P.A., for the preparation of
the 1986-87 audit for the City of Edgewater.
SECTION 2: That said agreement will terminate upon
the presentation of the audit to the City Council, unless
extended for an additional year by both parties.
SECTION 3: A copy of said agreement is attached to
this Resolution and by reference incorporated therein.
SECTION 4: That all resolutions or parts of reso-
lutions in conflict herewith be and the same are hereby
repealed,
SECTION 5: That this Resolution shall take effect
immediately upon its adoption by the City Council of the City
of Edgewater, Florida, at are gular meeting of said Council
held on the lltb day of February 198 7 , and approved as
provided by law,
This Resolution was introduced and sponsored by
Councilman Acting
and was
read and passed by
a
vote
of
the City Council at a
regular
meeting held
on
the
11tb
day of February 198 7 , and authenticated as provided
by law.
ROLL CALL VOTE ON RESOLUTION NO, 87-R-14 AS FOLLOWS:
Approu d for legality a
form:
-2- Res. No. 87-R-14
Brent Millikan & Company, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
P.0 BOX 1226 205 MAGNOLIA STREET
TELEPHONE 16041 ET-U]S•2513621
NEW SMYRNA BEACH, FLORIDA 32070-1226
MEMBERS OF
MEMBER OF
AME BICAFLORIDA
AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTAN1S
INSTITUTES OF
CERTIFIED PUBLIC ACCOUNTANTS
PRIVATE COMPANIES
PRACTICE SECTION
February 3, 1987
The Honorable Mayor Baugh, Members
of the City Council and City Clerk
City of Edgewater
Edgewater, Florida
Deer Mayor Baugh and Members of the City Council:
Our Firm would certainly like to take this time to thank you for the
opportunity of being able to be of service to you and the City of Edgewater.
The objective of this letter is to confirm the arrangements with you
regarding the nature and extent of accounting services we will provide to the
City of Edgewater for its fiscal year ending September 30, 1987.
Our Firm will make an examination of the balance sheets as of September 30,
1987, and the related statements of operations for the year then ended of
the following funds of the City of Edgewater; General Fund; Federal Revenue
Sharing Fund; Water and Sewer Fund; Refuse Collection Fund; General Employees
Pension Trust Fund; Police Officers' Retirement Trust Fund; General Long -Term
Debt Account Group and the General Fixed Assets Account Group. Our engagement
will be made in accordance with generally accepted auditing standards as
promulgated by the American Institute of Certified Public Accountants, the
Rules of the State of Florida Auditor General, and other applicable
governmental agencies and accordingly will include such tests of the
accounting records and such other auditing procedures as our Firm considers
necessary in the circumstances.
The examination will be directed to an expression of an opinion on the above
mentioned financial statements taken as a whole. Our work will be based
primarily upon selected sampling and tests of the accounting records and
related data, and therefore will not include a detailed fraud type audit of
the transactions for the period. Thus, the examination is not primarily or
specifically designed, and cannot be relied upon, to disclose defalcations
and other similar irregularities should any exist. However, should any such
irregularities come to our attention, we will report them to you promptly and
discuss with you the feasibility of performing a restricted fraud type audit.
At the conclusion of our examination, we will submit an audit report
containing our opinion on the financial statements. If during the course of
our work, it appears that we will not be in a position to render an
unqualified opinion on the financial statements, this matter will be
discussed with you promptly.
To'the Honorable Mayor P-sigh, Members
of the City Council . . City Clerk
City of Edgewater, Florida
February 3, 1987
Page Two
We will also submit to you a report on the existing system of internal
accounting and administrative controls in accordance with AU Section 642.47,
AICPA Professional Standards, containing any suggestions for improvement of
existing systems of internal control, accounting policies and procedures and
other related matters which come to our attention during the course of our
work.
In an effort to hold down the cost of the audit, we will ask that your
personnel promptly prepare various schedules and analyses, and make various
invoices and other documents available for our examination. This assistance
by your people, to the extent given, will serve to facilitate the progress of
our work and minimize costs to you of our services. The following data must
be compiled and/or furnished by you to our Firm's staff:
A. All financial records, books of original entry, supporting documents,
and other related records, as requested;
B. Copies of your Council minutes, grant agreements (if any), contracts,
leases, budgets, and other documents or data pertinent to the audit,
and such other information as may be required in the conduct of this
examination;
C. Adequate working space and other facilities for the conduct of this
examination; and
D. Assistance by your staff - which is considered desirable and necessary
- including, but not limited to, the preparation of account analyses,
simmaries, and other working papers which may reduce the time required
for the examination and, consequently, audit costs.
We will meet with you and/or other executives at various times throughout the
year to discuss current accounting, potential grants and auditing matters
affecting you.
We will consult with your legal counsel on any matter where a legal
interpretation is needed in the performance of the audit.
As you are aware, accountants' charges are based upon the amount of time
required to perform the work. An important element in determining the amount
of time required is the integrity and the accuracy of the accounting records
presented us to audit. Due to the fact that our Firm is engaged to audit
your records which have not as yet been prepared by your accounting staff, we
have no control and should have none over the quality of the records
presented us to audit. Another important element is the amount of
cooperation we receive from your accounting staff. Many schedules and
analyses can and should be prepared by your staff. Our Firm will request
that you perform this work.
Based on the above, we cannot project a fixed fee due to the nature and
extent of procedures which can and will be performed by your staff.
Accountants' time will be billed at actual.
T_o'tbe Honorable Mayor F•ugb, Members
of the City Council City Clerk
City of Edgewater, Florida
February 3, 1987
Page Three
The following is a list of our hourly rates by employee classification:
Partners .......................... $85.00 - 100.00
Supervisors ....................... 58.00
Seniors ........................... 50.00
Staff Accountant .................. 40.00
Paraprofessionals ................. 25.00
Invoices for fees are due upon presentation. Normally, progress billings will
be made monthly.
If during the course of our engagement, we are requested by City personnel to
render additional services unrelated to our above described examination of
your financial statements, charges for such services shall be exclusively
itemized and rendered to the City based on actual time at our normal billing
rates.
For a period of three years after final payment under this Agreement, our
Firm shall make its vorkpapers, records, and other evidence of audit
available to the Auditor General of the State of Florida and to the Secretary
and to the Comptroller General of the United States or his duly authorized
representatives. They will be entitled to reproduce any or all of such
documents at their expense for which provision shall be made at the time the
need for reproduction arises.
All of the reports, information, data, etc., prepared or assembled by our
Firm under this Agreement are confidential. We agree that they shall not be
made available to any individual or organization without the prior written
approval of the City of Edgewater.
Please acknowledge your agreement to this understanding by executing and
returning to our Firm the copy enclosed.
We have sincerely enjoyed working with you and all of your staff in the past.
It is a real pleasure for us to be of service to you again, and we look
forward to many more years of pleasant association with you.
Sincerely,
ACKNOWLEDGMENT:
/> Mayor February 12,1987
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