1986-19
86-019
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GREENLEE
KURRAS
RICE &
BROWN
Clermcnt, Florida
July 11, 1986
Honorable City Council
City of Clermont, Florida
32711
This letter will confirm our understanding of the arrangements for our
examination of the financial statements of the City of Clermont for the
fiscal year ended September 30, 1986.
CERTIFIED PUBLIC
ACCOUNTANTS
We wi~l examine all the various funds and account groups of the City
for thp fiscal year ended September 30, 1986, for the purpose of ex-
pressing an opinion on them. Our examination will be made in accordance
with generally accepted auditing standards, and will include such tests
of the accounting records and such other auditing procedures as we con-
sider necessary to enable us to express an opinion as to fairness of the
City's financial statements.
Herbert John Greenlee, Jr. CPA
Dorothy A Kurres, CPA
John S RIce, CPA
Jerry D Br( Nn, CPA
PetricllJ A Sykes, CPA
A part of the examination will include a revjew and evaluation of the City'~
syste~ of internal accounting control to the extent we consider necessdry to evdluaLe
the system as required by generally accepted auditing scandards. Under these standards,
the purposes of such evaluat~on are to establish a basis of reliance on the system of
internal accounting control in determining the nature, timing, and extent ot otl,er
auditing procedures that are neccssJry for expressing an opinion on the fiTiancir>l
~[dtelTlents rind to assist the auditor in planning and performing the exc1lllinatioll of
the financial statements. The review and evaluation of the City's SYSLem of interlldl
accounting ~ontrcl, :hat is m~dc for the purposes set forth in the p1èceùing sentence,
will not necessarily disclose all weaknesses in the system because it is b~sed on selecL-
ive tesLs of the accounting records and related data. However, d descriptjoTI of copditions
believed to be material weaknesses will be report~d to the City.
Our exam~n.Jcicn is not intended to be sufficiently conclusive tLÒ dSSllre the discovery
of errors, detalcati.1T1s or similar irregu~aritics) altl,ough their discovery rr.ay reslI]L.
However, the Auditor believes the examin3tion offer~ an acceptable balance between con-
clusive reliability and rêasonable audit costs. It provides-for tests of documentary
evidence supporting the trans~ctions recorded in the dccount~;-~le~ts of the physical
existence of assets, direct confirmation of receivables, certain other assets and
liabilities by correspondence with selected customers, creditors, legal counsel and banKs.
It gives reasonable assurance that the overall financial position and result~ of operations
of the various funds are fairly presented on the basis indicated. However, it gives less
assurance as to ac~uracy of individual items appearing in the financial statements since
the tests are directed toward forming an opinion on the financial ~tatements 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 Clermont, Florida
July 11, 1986
Page Two
Our examination will be conducted in compliance with the Rules of the Auditor General,
State of Florida, and accordingly our required comments and recommendations will be
included in the audit report.
Should circumstances disclose any evidence of fraud, misappropriation, misfeasance,
embezzlement or other illegal acts, we will immediately inform the appropriate City
official and the City Council.
Assistance to be supplied by personnel of the
of schedules, analysis of accounts, and trial
with the Finance Director. Timely completion
the best audit performance with minimum time.
Finance Department including preparation
balances will be discussed and coordinated
of this work will facilitate achieving
Legal opinions will be provided by the City attorney.
shall be the City's responsibility.
The cost of such legal opioions
Our fee for the preparation of the City's audit report, state annual report and Federal
Revenue Sharing report for the year ending September 30, 1986 will be $14,000.00. In
accordance with our usual practice, we will render interim billings as work progresses
with the first billing being submitted in October of 1986 and the final billing being
submitted after the delivery of the above mentioned reports.
If this letter correctly expresses your understanding, please sign the enclosed
where indicated and return it to us. We look forward to working with you again
appreciate the opportunity to serve you. Please call if you have any questions
any aspect of the engagement.
copy
and
about
GREENLEE, KURRAS, RICE & BROWN
Certified Public Accountants
BY¥~
t/art r
APPROVED BY:
:~tY;ç;~~
Date
August 26,
1986