Resolution 82-17102 a
RESOLUTION NO. 82-17102
A RESOLUTION OF THE CITY COIF•1ISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE EXECUTION OF
LETTER AGREEMENT COMMISSIONING TOUCHE ROSS AND CO.
TO CONDUCT AN EXTERNAL AUDIT OF CITY FUNDS AND
ACCOUNTS.
WHEREAS, an external audit is necessary and required by the
Rules of the Auditor General, Section 10-500, and
WHEREAS, the City of Miami Beach External Auditor Selection
Committee has recommended the reappointment of Touche Ross and Co.
to be the City's External Auditor for another year at a fee not to
exceed $60,400.
WHEREAS, the City Commission of the City of Miami Beach deems
it in the best interest of the citizens of Miami Beach to enter into an
agreement with Touche Ross and Co. , the terms of which are familiar to
the City Commission and which letter agreement is attached to this
Resolution, and
WHEREAS, the City Manager recommends the City enter into
said agreement and the City Attorney has approved same as to form and
legal sufficiency,
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk be here-
by authorized and directed to approve said letter agreement for and on
behalf of the City of Miami Beach.
PASSED AND ADOPTED this lst day of September, 1982.
Mayor -----
ATTEST:
City lerk
RiA APPROVED
LEGAL DEPT.
By:I ......._' 21 A •�
Date
Touche Ross & �.o.
CERTIFIED PUBLIC ACCOUNTANTS
August 2, 1982
The Mayor and Members of the City Commission
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida
Dear Mayor and Commission Members:
We are pleased to again serve as independent accountants for the City of
Miami Beach.
The management portion of the engagement team will continue as follows:
Stephen E. Cohen - General Services Partner
Michael J. Brown - Audit Partner
, Gerald C. Sims - Audit Manager
Hussein Haniff - Audit Supervisor
Stephen Burnett - Consulting Partner
Although the primary purpose of this letter is to set forth our engage-
ment understanding for the examination and reporting on the City's finan-
cial statements for the year ended September 30, 1982, we would like also
to be helpful to you on current problems as they arise throughout the
year. Hence, we hope you will call upon our management team whenever you
feel they may be of assistance.
We will perform an examination in accordance with generally accepted au-
diting standards, federal statutes regarding grants and contracts between
the City and the Federal government, and the rules of the Auditor Gener-
al, State of Florida, for the following account groups/funds as of
September 30, 1982.
General Fund Enterprise Funds
Special Revenue Funds Trust and Agency Funds
Debt Service Funds General Fixed Assets
Capital Projects Funds Account Groups
Special Assessment Funds General Long-term Debt
CDBG Fund Account Groups
Touche Ross will assist in the preparation of the financial statements
and render a report on the combined and supplementary financial state-
ments included in the annual report. We will also assist in the prepara-
tion of separate financial statements for the Parking Authority Fund and
the Retirement System for General Employees and Elected Officials of the
City. Concomitant with our examination, we will identify areas in the
accounting, internal control, and financial management functions which
THIRD FLOOR - RIVERGATE PLAZA-444 BRICKELL AVENUE - MIAMI, FLORIDA 33131-(305) 377-4000
Touche Rays E1Ca
City Commission -2- August 2, 1982
City of Miami Beach
1
may be strengthened, City Commission along with our recommendations for
such improvement. We will also identify areas in administrative effi-
ciency which can also be strengthened, along with our recommendations.
All such recommendations will be fully discussed with management offi-
cials prior to being finalized for inclusion in the Management Letter
which must be submitted to the Auditor General, State of Florida.
Our fees for this engagement shall be based upon our standard billing
rates for those professionals participating in the engagement; however,
such fees will not exceed $60,400 based on the following allocation:
All funds except Parking Revenue, Retirement
System, and CDBG $31,400
Parking Revenue System Fund 15,000
Retirement System 10,000
CDBG Fund 4,000
$60,400
The maximum fee represents a 6% increase over that of the prior year.
Out-of-pocket expenses will be billed separately, subject to prior
approval.
We direct your attention to the fact that management has the responsi-
bility for the proper recording of transactions and the books of account,
for the safeguarding of assets, and for the substantial accuracy of the
financial statements. Such statements are the representations of manage-
ment.
The objective of our examination is the expression of an opinion on the
Company's financial statements. Our ability to express that opinion, and
the working of our opinion will, of course, be dependent on the facts and
circumstances at the date of our report. If our opinion will be other
than unqualified, the reasons therefore will be fully disclosed.
We expect to begin interim work during the last week of August and will
continue intermittently up to the time the City's books and records are
closed. Our year-end audit procedures will begin approximately one week
ToucheRous&Ca
City Commission -3- August 2, 1982
City of Miami Beach
after the City's books and records are closed for the year ended Sep-
tember 30, 1982 with substantially all necessary journal entries being
made to the books by the finance department. Our year-end procedures
will take approximately six to eight weeks. We will then expect to have
a draft within two weeks thereafter.
If the foregoing is in accordance with your understanding, please sign
and return to us a duplicate copy of this letter.
We appreciate the opportunity to continue to serve you and trust that our
association will be pleasant.
Very truly yours,
L a" •
Certified Public Accountants
Accepted: 'ty of Miami Beach, Florida
By Mayor
Date 9/1/82 -
i
ATTEST:
City Clerk *
Should the City segregate the accounts of Water, Sewer, Golf, and Tennis
operations into Enterprise Funds, the increased audit and reporting pro-
cedures would require an additional $7.000 ($3,500 of this would be a
"one-time" charge) .
FORM APPROVED
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