84-R-11RESOLUTION NO. 84-R-11
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
EDGEWATER, FLORIDA, AUTHORIZING THE APPROPRIATE
OFFICIALS OF THE CITY OF EDGEWATER, FLORIDA TO
EXECUTE AN AGREEMENT FOR PROFESSIONAL SERVICES
WITH BRENT MILLIKAN & CO.,P.A. TO PERFORM SER-
VICES AS CITY AUDITORS TO PREPARE THE 1983-1984
AUDIT FOR THE CITY OF EDGEWATER, FLORIDA;
REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH
AND PROVIDING AN EFFECTIVE DATE.
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 proper officials of the City of Edgewater to execute an
agreement for professional services with Brent Millikan & Co.,P.A., for
the preparation of the 1983-1984 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 herein.
SECTION 4. That all resolutions or parts of resolutions 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herewith be and the same are hereby repealed.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 a
I10 (iA/QC✓1 meeting of said Council held on the aQtday of "i,
-1984, and approved as provided by law.
The first reading of the Resolution was read in full and passed by a
vote of the City Council of the City of Edgewater, Florida at a (gyp
meeting of said Council held on the;� day of 19`84, and
approved as provided by law.
ROLL CALL VOTE AS FOLLOWS:
this aO�day of Approved for, g ity and form:
Res. 84-R-11
URI f01lLIA C CO., PR
MMAGNOUMST1EET POSTOFFICESOYI326 NEW SMVRNA BEACH, FLORIDA 3XO0. I M TELEPHONE ISMH274303
February 8, 1984
The Honorable Mayor Ledbetter and
Members of the City Council
City of Edgewater
Edgewater, Florida
Dear Members of the City Council:
MEMBERS OF
PRIVATE COMPANIES PRACTICE SECTION
AMERICAN INSTITUTE OF CPAS
FLORIDA INSTITUTE OF CPA'S
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, 1984.
Our Firm will make an examination of the balance sheets as of September 30.
1984, 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; 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.
Feburuary 8, 1984
City of Edgewater, Florida
Page Two
We will also submit to you a report on the existing system of internal
accounting and administrative controls in accordance with AD 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, summaries, 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.
J
February 8, 1984
City of Edgewater, Florida
Page Three
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 workpapers, 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 fox us to be of service to you again, and we
look forward to many more years of pleasant association with you.
Sincerely,
ACKNOWLEDGEMENT:
Name and
Title
Date