11-23-2005 Council Agenda - Laserfiche WebLink

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Mr. Joel Hanson, City Administrator City of Little Canada October 13, 2005 Page 4 of 6 involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coning to our attention relating to significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Nonaudit Services As part of the audit, we will provide the following nonaudit services: • Financial statement preparation assistance — includes preparing, proofing, copying and binding the audited financial statement document; and journal entry preparation as needed. You will be required to review and approve those financial statements and any journal entries prior to their issuance and have a responsibility to be in a position in fact and appearance to make an informed judgment on those services. Further you are required to designate a qualified management -level individual to be responsible and accountable for overseeing their services, or any other nonaudit services that may be requested. If you request additional nonaudit services at anytime during the engagement, the following provisions would apply: • Management is responsible for the substantive outcomes of the work and, therefore, has a responsibility to be in a position in fact and appearance to make an infot,ued judgment on the results of the nonaudit service. • Management is responsible for establishing and monitoring the performance of the nonaudit service to ensure that it meets managements' objectives. • Management is responsible for making any decisions that involve management functions related to the nonaudit service and accepts full responsibility for such decisions. • Management is responsible for evaluating the adequacy of the services performed and any findings that result. Audit Administration, Fees and Other We understand that your employees will prepare all cash or other confirmations we request and will locate any invoices selected by us for testing. Our fee for these services will be at our standard government audit hourly rates plus out - of- pocket costs (such as report reproduction, typing, postage. travel. copies, telephone, etc.) except that we agree that our gross fee, including expenses, will not exceed 522,500. Our 7 521542.1