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HomeMy WebLinkAboutCC RES 00-018 A RESOLUTION APPROVING AN AUDITOR FOR THE CITY AND H. R.A. 1999 AUDITS Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIII IIIIIIII 104781 Box: 31 Folder: RES 2000 Document: CC RES 00-018 A RESOLUTION APPROVING AN AUDITOR FOR THE CIN AND H. R.A. 1999 AUDITS • CITY OF ST. ANTHONY RESOLUTION 00-018 A RESOLUTION APPROVING AN AUDITOR FOR THE CITY AND H.R.A. 1999 AUDITS BE IT RESOLVED that the City Council of the City of St. Anthony hereby approves Stuart J. Bonniwell, Certified Public Accountant, to perform the audits for the general purpose financial statements of the City of St. Anthony and the St. Anthony Housing and Redevelopment Authority for the year ended December 31, 1999. Adopted this day of , 2000. • a ATTEST: City Clerk Reviewed by Administration: Aity gandger • STUART J. BONNIWELL • Certified Public Accountant 7101 York Avenue South - Suite 50 Office: (612)921-3325 Minneapolis,MN 55435Fax: (612)921-3331 The CPA.Ne�o ,Unate The VW January 17, 2000 Honorable Mayor and City Council City of St. Anthony 3301 Silver Lake Road St. Anthony, Minnesota 55418 I am pleased to confirm our understanding of the services to be provided the City of St. Anthony, Minnesota for the year ended December 31 , 1999. I will audit the general purpose financial statements of the City of St. Anthony, Minnesota as of and for the year ended December 31 , 1999. Also, the financial report submitted to you will include combining statements by fund type, individual fund and account group statements that will be subjected to the auditing procedures applied in the audit of the general purpose financial statements. AUDIT OBJECTIVES The objective of the audit is the expression of an opinion as to whether the general purpose financial statements are fairly presented, in all material respects, in con- formity with generally accepted accounting principles and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the general purpose financial statements taken as a whole. The audit will be conducted in accordance with generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the City of St. Anthony, Minnesota and other procedures con- sidered necessary to enable me to express such an opinion. If the opinion on the general purpose financial statements is other than unqualified, I will fully discuss the reasons with you before submitting a different kind of report. If, for any rea- son, I am unable to complete the audit or am unable to form or have not formed an opinion, I may decline to express an opinion or to issue a report as a result of this engagement. MANAGEMENT RESPONSIBILITIES The management of the City of St. Anthony, Minnesota is responsible for establishing and maintaining internal control and for compliance with laws, regulations, con- tracts, and agreements. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance • with management's authorization and recorded properly to permit the preparation of the general purpose financial statements in accordance with generally accepted accounting principles. Honorable Mayor and City Council • City of St. Anthony Management is responsible for making all financial records and related information available. I understand that you will provide the basic information required for the audit and that you are responsible for the accuracy and completeness of that information. I will advise you about appropriate accounting principles and their application and will assist in the' preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsi- bility includes the establishment and maintenance of adequate records and effective internal control over financial reporting, the selection and application of account- ing principles, and the safeguarding of assets. AUDIT PROCEDURES - GENERAL An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, the audit will involve judgment about the number of transactions to be examined and the areas to be tested. I will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. Because of the concept of reasonable assurance and because I will not perform a detailed examination of all transactions, there is a risk that a material misstatement may exist and not be detected. In addition, an audit is not designed to detect errors, fraud, or other illegal acts that are immaterial to the general purpose financial statements. However, I will inform you of any mate- rial errors and any fraud that comes to my attention. I will also inform you of any other illegal acts that come to my attention, unless clearly inconsequential. My responsiblity is auditor is limited to the period covered by the audit and does not extend to matters that might arise during any later periods for which I am not engaged as auditor. Audit procedures will include tests of documentary evidence supporting the trans- actions recorded in the accounts, direct confirmation of cash, receivables and certain other assets and liabilities by correspondence with selected financial institutions, creditors and others, and may include tests of the physical exis- tence of inventories. I will request written representations from your attorney(s) as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of the audit, I will also request certain written representa- tions from you about the financial statements and related matters. Identifying and ensuring that the City of St. Anthony, Minnesota complies with laws, regulations, contracts, and agreements is the responsibility of management. As part of obtaining reasonable assurance about whether the general purpose finan- cial statements are free of material misstatement, I will perform tests of the City's compliance with applicable laws and regulations and the provisions of con- tracts and agreements. However, the objective of the audit will not be to provide an opinion on overall comnpliance and I will not express such an opinion. AUDIT PROCEDURES - INTERNAL CONTROL • In planning and performing the audit, I will consider the internal control suffi- cient to plan the audit in order to determine the nature, timing, and extent of the auditing procedures for the purpose of expressing my opinion on the City of St. Anthony, Minnesota's general purpose financial statements. Honorable Mayor and City Council • City of St. Anthony I will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and I will assess control risk. Tests of controls may be performed to test the effectiveness of certain controls that I consider relevant to preventing and detecting errors and fraud that are material to the general purpose financial statements and to preventing and detecting mis- statements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the general purpose financial statements. Tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed. An audit is not specially designed to provide assurance on internal control or to identify reportable conditions. However, I will inform the governing body of any matters involving internal control and its operation that I consider to be report- able conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to my attention relating to significant deficiencies in the design or operation of the internal con- trol that, in my judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. AUDIT ADMINISTRATION AND OTHER • I understand that your personnel will prepare all cash and other confirmations I request and will locate any invoices selected for testing. Workpapers for this engagement are the property of Stuart J. Bonniwell , C.P.A. , and constitute confidential information. However, I may be requested to make cer- tain workpapers available to various cognizant or grantor agencies pursuant to authority given to them by law or regulation. If requested, access to such work- papers will be provided under my supervision. Furthermore, upon request, I may provide photocopies of selected workpapers to these agencies. These agencies may intend, or decide to distribute the photocopies or information contained therein to others, including other governmental agencies. Fees for services are based on the time required to complete the engagement, plus out-of-pocket expenses such as report production, typing, etc. Professional rates vary according to the degree of responsibility involved and the level of expertise and experience of personnel assigned to the audit. In addition, fees are based on anticipated cooperation from your personnel and the assumption that unexpected cir- cumstances will not be encountered during the audit which would cause a material extension of time required to complete the audit. If significant additional time is necessary, you will be consulted with before commencing such additional work. I appreciate the opportunity to be of service to the City of St. Anthony, Minnesota and believe this letter accurately summarizes the significant terms of our engage- ment. If you have any questions, please contact me. If the agree with the terms of our engagement as described in this letter, please sign the original letter in • the space provided and return it to me. The enclosed copy is for your records. Sincerely, Stuart J. onniwell , C.P.A. Honorable Mayor and City Council • City of St. Anthony Accepts T is letter rectly set forth the understanding the City S Anthony, nnesota. By: ��T Title: • STUART J. BONNIWELL • Certified Public Accountant 7101 York Avenue South-Suite 50 do Office: (612)921-3325 Minneapolis,MN 55435 The CPA Thevalue- Fax: (612)921-3331 January 17, 2000 Chairman and Commissioners Housing and Redevelopment Authority of St. Anthony City of St. Anthony 3301 Silver Lake Road St. Anthony, Minnesota 55418 I am pleased to confirm our understanding of the services to be provided the Housing and Redevelopment Authority of St. Anthony, Minnesota, a component unit of the City of St. Anthony, Minnesota, for the year ended December 31 , 1999. I will audit the- general purpose financial statements of the Housing and Redevelopment of St. Anthony as of and for the year ended December 31 , 1999. Also, the financial report submitted to you will include combining statements by fund type, individual fund and account group statements that will be subjected to the auditing procedures applied in the audit of the general purpose financial statements. • AUDIT OBJECTIVES The objective of the audit is the expression of an opinion as to whether the general purpose financial statements are fairly presented, in all material respects, in con- formity with generally accepted accounting principles and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the general purpose financial statements taken as a whole. The audit will be conducted in accordance with generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the Housing and Redevelopment Authority of St. Anthony, Minne- sota and other procedures considered necessary to enable me to express such an opinion. If the opinion on the general purpose financial statements is other than unqualified, I will fully discuss the reasons with you before submitting a different kind of report. If, for any reason, I am unable to complete the audit or am unable to form or have not formed an opinion, I may decline to express an opinion or to issue a report as a result of this engagement. MANAGEMENT RESPONSIBILITIES The management of the Housing and Redevelopment Authority of St. Anthony, Minnesota is responsible for establishing and maintaining internal control and for compliance with laws, regulations, contracts, and agreements. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to pro- vide management with reasonable, but not absolute, assurance that assets are safe- guarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of the general purpose financial statements in accordance with generally accepted accounting principles. Chairman and Commissioners • Housing and Redevelopment Authority of St. Anthony Management is responsible for making all financial records and related information available. I understand that you will provide the basic information required for the audit and that you are responsible for the accuracy and completeness of that information. I will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsi- bility includes the establishment and maintenance of adequate records and effective internal control over financial reporting, the selection and application of account- ing principles, and the safeguarding of assets. AUDIT PROCEDURES - GENERAL An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, the audit will involve judgment about the number of transactions to be examined and the areas to be tested. I will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by. error or fraud. Because of the concept of reasonable assurance and because I will not perform a detailed examination of all transactions, there is a risk that a material misstatement may exist and not be detected. In addition, an audit is not designed to detect errors, fraud, or other illegal acts that are immaterial to the general purpose financial statements. However, I will inform you of any mate- rial errors and any fraud that comes to my attention. I will also inform you of any other illegal acts that come to my attention, unless clearly inconsequential . My responsiblity as auditor is limited to the period covered by the audit and does not extend to matters that might arise during any later periods for which I am not engaged as auditor. Audit procedures will include tests of documentary evidence supporting the trans- actions recorded In the accounts and direct confirmation of cash, receivables and certain other assets and liabilities by correspondence with selected financial institutions, creditors and others. I will request written representations from your attorney(s) as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of the audit, I will also request certain writ- ten representations from you about the financial statements and related matters. Identifying and ensuring that the Housing and Redevelopment Authority of St. Anthony, Minnesota complies with laws, regulations, contracts, and agreements is the respon- sibility of management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, I will per- form tests of the Authority's compliance with applicable laws and regulations and the provisions of contracts and agreements. However, the objective of the audit will not be to provide an opinion on overall comnpliance and I will not express such an opinion. AUDIT PROCEDURES - INTERNAL CONTROL • In planning and performing the audit, I will consider the internal control suffi- cient to plan the audit in order to determine the nature, timing, and extent of the auditing procedures for the purpose of expressing my opinion on the Housing and Redevelopment Authority of St. Anthony, Minnesota's general purpose financial statements. Chairman and Commissioners • Housing and Redevelopment Authority of St. Anthony I will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and I will assess control risk. Tests of controls may be performed to test the effectiveness of certain controls that I consider relevant to preventing and detecting errors and fraud that are material to the general purpose financial statements and to preventing and detecting mis- statements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the general purpose financial statements. Tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed. An audit is not specially designed to provide assurance on internal control or to identify reportable conditions. However, I will inform the governing body of any matters involving internal control and its operation that I consider to be report- able conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to my attention relating to significant deficiencies in the design or operation of the internal con- trol that, in my judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. AUDIT ADMINISTRATION AND OTHER • I understand that your personnel will prepare all cash and other confirmations I request and will locate any invoices selected for testing. Workpapers for this engagement are the property of Stuart J. Bonniwell, C.P.A. , and constitute confidential information. However, I may be requested to make cer- tain workpapers available to various cognizant or grantor agencies pursuant to authority given to them by law or regulation. If requested, access to such work- papers will be provided under my supervision. Furthermore, upon request, I may provide photocopies of selected workpapers to these agencies. These agencies may intend, or decide to distribute the photocopies or information contained therein to others, including other governmental agencies. Fees for services are based on the time required to complete the engagement, plus out-of-pocket expenses such as report production, typing, etc. Professional rates vary according to the degree of responsibility involved and the level of expertise and experience of personnel assigned to the audit. In addition, fees are based on anticipated cooperation from your personnel and the assumption that unexpected cir- cumstances will not be encountered during the audit which would cause a material extension of time required to complete the audit. If significant additional time is necessary, you will be consulted with before commencing such additional work. I appreciate the opportunity to be of service to the Housing and Redevelopment Authority of St. Anthony, Minnesota and believe this letter accurately summarizes the significant terms of our enggaement. If you have any questions, please contact me. If you agree with the terms of our engagement as described in this letter, • please sign the original letter in the space provided and return it to me. The enclosed copy is for your records. Sinc rely, . �1J Stuart J. W niwell , C.P.A. Chairman and Commissioners • Housing and Redevelopment Authority of St. Anthony Accepted: This letter correctly sets forth the understanding ousing an velopmen Authority of St. Anthony, nn4sota. By= Title: •