HomeMy WebLinkAbout1990-34 Auditing Services
RESOLUTION NO. 90 - 34
A RBSOLUTION OF THE CITY CCIIII88ION 0' '1U CITY 0'
PARKLAND. PLORIDA, AUTHORIZING nm CIT'l OPl'ICIALS TO
BNGAGE THE SERVICES OF THE FIRM, GIWn' 11IORMTON, TO
PROVIDE FOR AN INDEPENDENT AUDIT OF THE CIT'l'S
FINANCIAL RECORDS.
WHEREAS, the City Commission of the City of
Parkland finds and dete~ines that it is in the best interest of
the citizens of the City to engage the services of the fi~,
Grant Thornton, to provide for an independent audit of the City's
financial records as outlined in Exhibit A attached hereto and
made a part hereof;
NOW, 1HEREFORE, BE IT RESOLVED BY THE CIT'l
COMMISSION OF THE CIT'l OF PARKLAND. FLORIDA, that:
Section 1: That the appropriate City officials are
hereby authorized to execute the attached Engagement Letter
between the City of Parkland, Florida and the ti~, Grant
Thornton.
Section 2: That this Resolution shall be in full force
and effect immediately upon its passage and adoption.
NOVEMBER
PASSED AND ADOPTED nlls ~ DAY OF
, 1990.
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SA PAGLI - -. yor
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SUSAN ARMSTRONG, City Cl k
.
Suite UOO
Browarll Financial CI!I'ltre
500 East Broward Boulenn:,
Ft. Lauderdale. FL 33394.30 ' '
305 764.1235
FAX 305 764.1293
TLX 755973 ALEX GRAN'r UO
November 12, 1990
Mr. Harry J. Mertz, City Manager
City of Parkland
6500 Parkside Drive
Parkland, Florida 33067
GrmtThomton.
Accountants and
Management Consultants
The U.S. Member Firm of
Grant Thornton International
Dear Mr. Mertz:
Thank you for meeting with us to discuss the requirements of
our forthcoming engagement.
We will audit the combined financial statements of the City of
Parkland, Florida, as of September 30, 1990. Our audit will be
made in accordance with generally accepted auditing standards
and will include our examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. Our objective
will be the completion of the foregoing audit and, upon its
completion and subject to its findings, the rendering of our,
report.
As you know, the financial statements are the responsibility of
the management of your City who are primarily responsible for
the data and information set forth therein, as well as for the
evaluation of the capability and integrity of the City's
personnel and the maintenance of an appropriate internal
control structure, which includes adequate accounting records
and procedures to safeguard the City's assets. Accordingly,
our completion of the audit will require management's
cooperation. In addition, as required by generally accepted
auditing standards, our procedures will include obtaining
written representation from management concerning such matters
which we will rely upon, and the City will indemnify and hold
us harmless from any liability, damages and legal or other cost
we might sustain in the event such representations are
knowingly untrue.
Generally accepted auditing standards also require the auditor
to obtain reasonable, but not absolute, assurance that the
financial statements are free of material misstatement, and
provide for the audit to be performed on a test basis, as
described in the second paragraph of this letter. Accordingly,
an audit is not a special examination designed to detect fraud,
nor a guarantee of the accuracy of the financial statements and
is subject to the inherent risk that errors, irregularities, or
,
Mr. Harry J. Mertz, ;ity Manager
City of Parkland
November 12, 1990
Page Two
illegal acts, if they exist, might not be detected. However,
if we become aware of material errors or any irregularities or
illegal acts during the course of our audit, we will bring them
to your attention. Should you then wish us to direct special
auditing procedures to such matters, we would be pleased to
work with you to develop a separate engagement for that purpose.
In addition, the supplemental financial statements and
information, although not considered necessary for a fair
presentation of financial position, results of operations, or
changes in financial position, will be subjected to the audit
procedures applied in the audit of the combined financial
statements.
Our agreement with you is based upon the facts and circumstances
you have described, and calls for a fee of $18,300 for the
engagement described in the preceding paragraphs. Of course,
circumstances may arise that will require us to do more work
and we are enclosing an explanation of some of these
circumstances that arise most frequently. If it appears that
the estimated fee will be exceeded, we will bring this to your
attention in writing. Our billings will be rendered at the
beginning of each month and are payable upon receipt. It is
understood that our responsibility for such services will
extend only to periods covered by our audit and will not
include any claims pertaining to later periods for which we are
not engaged as auditors.
The services set forth in this letter will be renewed for the
years ending September 30, 1991, 1992, 1993 and 1994 without
further action by either party. Should either party wish to
discontinue the services set forth in this paragraph, written
notification must be given to the other party prior to June 1
of any fiscal year to be audited. Annually, we will arrive at
an understanding with you concerning our billings for the
engagements discussed above, which we will render as our work
progresses.
This engagement includes only those services specifically
described in this letter and appearances before judicial
proceedings, government organizations, or regulatory bodies
arising out of this engagement will be billed to you separately.
As a supplement to this letter, we are enclosing an explanation
of certain of our Firm's Client Service Concepts. We have
found that such explanation helps to clarify our services and
enhances our ability to work more closely with our clients.
Mr. Harry J. Mertz, City Manager
City of Parkland
November 12, 1990
Page Three
In the unlikely event that differences concerning our services
or fees should arise that are not resolved by mutual agreement,
we both recognize that the matter will probably involve complex
business or accounting issues that would be decided most
equitably to us both by a judge hearing the evidence without a
jury. Accordingly, you and we agree to waive any right to a
trial by jury in any action, proceeding or counterclaim arising
out of or relating to our services and fees for this engagement.
If any portion of this letter is held invalid, it is agreed
that such invalidity shall not affect any of the remaining
portions.
If you are in agreement with the terms of this letter, please
sign one copy and return it for our files. We appreciate the
opportunity to work with you.
Very truly yours,
Cvd. /~
BEmlOer/WRPreece
db
Enclosure
The foregoing letter fully describes our understanding and is
accepted by us.
CITY OF PARKLAND
Date
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