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1990-34 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. ~'A- SA PAGLI - -. yor ... ~.-c--- - a..]~* 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 ~