LTC 208-2006 External Auditor's (KPMG) Annual Audit Report on the CMB (the City) for the period ended 9/30/05
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MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 208-2006
LETTER TO COMMISSION
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TO:
Mayor David Dermer and Members of the City Commission
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FROM:
Jorge M. Gonzalez, City Manager d ____~
August 23, 2006
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DATE:
SUBJECT: External Auditor's (KPMG) Annual Audit Report on the City of Miami Beach (the
City) for the period ended September 30, 2005
Attached for your information is the external auditor's report on the City for the fiscal year ended
September 30, 2005. This report includes the following:
. A transmittal letter to the mayor and members of the City Commission, noting the auditor's
responsibility under professional standards, the City's accounting policies and alternative
accounting treatment, management's judgment and use of accounting estimates, consultation
with other accountants and confirmation of their independence. The letter also states that the
auditors had no disagreements with the City's management, no corrections to the amounts
recorded by the City that were considered significant, no difficulties encountered in performing
the audit and 'passed audit differences' were considered by management to be immaterial.both
individually and in the aggregate, to the financial statements;
. KPMG's management letter, in accordance with the Rules of the auditor general of the State of
Florida, to the mayor and members of the City Commission. There were no observations forthe
current year. Prior year's observations were 1. Accounting and Financial Reporting by
Employers for Postemployment Benefits other than Pensions, 2. Self-Insurance deficit and 3.
The City's Disaster Recovery Plan. Management's response to each observation is included in
the management letter.
. The City's representation letter to KPMG. This letter confirms that the City's management is
responsible for the fair presentation in the basic financial statements of financial position,
changes in financial position, and cash flows in conformity with U.S. generally accepted
accounting principles. Management is also responsible for establishing and maintaining effective
internal controls over financial reporting. Several other representations were made, including
but not limited to the City's compliance in all material respects, with the requirements of laws,
regulations, contracts, and grants that could have a direct and material effect on each of our
federal and state programs;
. Resolution 2002-24982, which renews the Agreement for Auditing Services with KPMG for
Fiscal Year ending September 30, 2002 and establish audit fees for the fiscal years ending
September 30, 2002 through 2005 and, the audit engagement letter between the City and
KPMG dated November 4, 2002;
. KPMG's report on its system of quality controls and;
. The City's Annual Comprehensive Financial Report (CAFR) for the fiscal year ended September
30, 2005, which was audited by KPMG and was previously sent to you under LTC 092-2006.