1988-28
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Clermont, Florida
Apr'i 1 27, 1 '388
Honorable City Council
City of Clermont, Florida
ThlS letter wlil confirm our understandlng of the arrangements
for o~r examinatlon of the flnancial statements of the Clty of
Clermont for the fiscal year ended September 30, 1'388.
We will examlne all the varlOUS funds and account groups of the
Clty for the flscal year ended September 30, 1'368, for the
purpose of expresslng an oplnlon on them. Our examlnation wlil
be made in accordance wlth generally accepted auditing standards,
and will include such tests of the accounting records and such
other aud1ting procedures as we consider necessary to enable us
to express an opin1on as to the falrness of the C1ty's financial
statemeY"lts.
GREENLEE
KURRAS
RICE &
BROWN, PA
CERTIFIED PUBLIC
ACCOUNTANTS
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Herbert John Greenlee, J" CPA
Dorothy A Kurras, CPA
John S RICe, CPA
Jerry D Brown, CPA
Pattlcla A Sykes, CPA
Lisa C Momson, CPA
C L (Chip) Gamer. CPA
A part of the exam1nation will 1nclude a reV1ew and evaluation of
the Clty'S system of internal account1ng control to the extent we
cons1der necessary to evaluate the system as requlred by generally accepted
aud1t1ng standards. Under these standards, the purposes of such evaluat10n are to
establ1sh a basis of rellance on the system of 1nternal account1ng control in
determln1ng the nature, timing, and extent of other audit1ng procedures that are
necessary for expresslng an opinion on the f1nanc1al statements and to ass1st the
aud1tor in plann1ng and performing the examination of the f1nancial statements.
The reVlew and evaluation of the C1ty'S system of interY"lal accountlng control, that
is made for the purposes set forth 1Y"1 the preced1ng sentence, w1II not necessar1ly
d1sclose all weaknesses in the system because 1t 1S based on selective tests of the
account1ng records and related data. However, a descript1on of cond1t1ons believed
to be mater1al weaknesses w111 be repcrted to ~he Clty.
Our examinat1on 1S not 1ntended to be sufficlently conclusive to assure the
discovery of errors, defalcatlons or slm1lar irregularities, although the1r
discovery may result. However, the Aud1tor belleves the examlnation offers an
acceptable balance between concluslve rellablilty and reasonable audlt costs. It
provldes for tests of documentary evidence supporting the transact1ons recorded 1n
the accounts, tests of the physical ex1stence of assets, d1rect conflrmatlon of
receivables, certain other assets and llab1l1t1es by correspondence wlth selected
customers, credltors, legal counsel and banks. It glves reasonable assurance that
the overall financ1al pos1tlon and results of operat1ons of the various funds are
fa1rly presented on the baS1S lnd1cated. However, 1t glves less assurance as to
accuracy of indiv1dual items appearing in the f1nancial statements Slnce the tests
are d1rected toward form1ng an op1nlon on the financ1al statements taken as a
whole.
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752 Montrose Street
Post OffIce Box 400 . Clermont. FL 32711
Telephone (904) 394.3256
627 N Donnelly Street
Post Office Box 8 . Mount Dora. FL 32757
Telephone (904) 383-6300
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City of Clermo~t, FlorIda
Apri 1 27, 1'388
Page Two
Our examination will be conducted in compl1ance with the Rules of the Auditor
Ge~eral, State of Florida, and accordingly our required comments a~d
recomme~dations will be i~cluded ln the audit report.
Should circumstances disclose any ev1dence of fraud, misappropriatio~s,
misfeasance, embezzleme~t or other illegal acts, we will immediately inform the
appropriate C1ty official and the City Council.
Assistance to be supplled by persclr'Y"lel of the Finance Departme~t irlcludirlg
preparation of schedules, analysis of accounts, and trial balances WIll be
discussed and coordinated with the Finance Director. Timely completion of this
work will fac1litate achiev1ng the best aud1t performance with minimum time.
If the C1ty dec1des to prepare a comprehens1ve annual financial report for
subm1ssion to the Certificate of Achievement program, the City will be r'espons1ble
fclr the preparatio~ ¿md prclductlcln clf the statistical secticlrl, trarlsfluttal letter's.
and div1der pages.
Legal opinio~s will be provided by the C1ty attorney.
opinions shall be the City's responsibility.
Tre cost
of
slJch
legal
Our fee for these services will be $18,000. Our fee does not cover additional
services requested during the year, the cost of printing and binding the audit
reports, assistance requested by the Flnance Department in preparing their portio~
of the comprehensive annual financ1al report, and any additional testing required
by new bond issues or grants received after September 30, 1'387. These services
will be billed separately, based on our hourly rates plus out-of-pocket expenses.
In accordance with our usual practice, we will render interim billings as work
progresses with the first billing being submitted in October of 1988 and the final
bliling bei~g submitted after the delivery of the above mentioned reports.
If this letter correctly expresses your understa~ding, please sIgn the
copy where 1ndicated and return it to us. We look forward to worklng
again and appreciate the opportun1ty to serve you. Please call if you
questio~s about a~y aspect of the engagement.
eY"lc 1 clsed
wi th yclu
have any
GREENLEE, KURRAS, RICE & BROWN, P.A.
CertifIed Public Accountants
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Flclrida
Date
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