2001-22
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CLERMONT OFRCE
Herbert John Greenlee, Jr., C.P.A.
. Jerry D. Brown, C.P.A
Suzanne M. Wolfe, C.P.A
GREENLEE
KURRAS
RICE &
BROWN, PA
CERIIFIfD PUBlIC
ACCOUNIANTS
MOUNT DORA OFFICE
John S. Rice, C.P.A.
Patricia A Sykes-Amos, C.P.A.
C. L. (Chip) Gamer, C.P.A.
Dorothy A. Kunas, C.P.A.
John A. PowelS, C.P.A
Keire Rice Hosley, C.P.A.
David S. McDonald, C.P.A.
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Clermont, Florida
October 3, 2001
Honorable City Council
City of Clermont, Florida
P. O. Box 120219
Clermont, Florida 34712-0219
..
We are pleased to confirm our understanding of the services we are to provide for
the City of Clermont for the year ended September 30, 2001. We will audit the
general purpose financial statements of the City of Clermont as.of and for the year
ended September 30, 2001. We understand that the financial statements will be
presented in accordance with the financial reporting model in effect prior to that
described in GASB Statement No. 34.
The objectiv~ of our audit is the expression of an opinion as to whether your
financial statements are fairly presented, in all material respects, in conformity
with accounting prï"nciples generally accepted in the United States of America. Our
audit will be conducted in accordance with auditing standards generally accepted in
the United States of America and; the standards for financial and compliance audits
contained in Government Auditing Standards, issued by the Comptroller General of
the United States; and Chapter 10.550, Rules of the Auditor General of the State of
Florida; Local Governmental Entity Audits; and accordingly, will include tests of
the accounting records of the City of Clermont and other procedures we conside~
necessary to enable us to express such an opinion. If our opinion is other than
unqualified, we will fully discuss the reasons with you in advance.
We will also provide reports on internal control related to the financia:
statements and compliance with laws, regulations, and the provisions or gran:
agreements, noncompliance with which could have a material effect on the financia:
statements as required by Government Auditing Standards.
Management is responsible for establishing and maintaining internal control and fo~
compliance with laws, regulations. contracts, and agreements. Management is
responsible for making all financial records and related information available tc
us. We understand that you will provide us with such basic information require~
.
MEMBER: FLORIDA INSTITUTE OF CERTIAED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
605 Montrose Street
P.O. Box 120400 . Clermont. FL 34712-0400
f'lC?1 'lOA "?CC . c~v f'OC?1 'On.. "",on
627 N. Donnelly Street
P.O. Box 8 . MountDora, FL 32756-(X)()8
,.,<'". .,n., n."", - r--.. ..,~". "n., n.,~~
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City of Clermont
October 3, 2001
Page Two
for our audit and that you are responsible for the accuracy and completeness of
that information. We 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. That
responsibility includes the maintenance of adequate records and related controls.
the selection and application of accounting principles, and the safeguarding of
assets. Management is responsible for adjusting the financial statements to
correct material misstatements and for confirming to us in the representation
letter that the effects of any uncorrected misstatements aggregated by us during
the current engagement and pertaining to the latest period presented are
immaterial, both individually and in the aggregate, to the financial statements
taken as a whole. .
An audit is based primarily on the selective testing of accoun~ing records and
related data; therefore, our audit will involve judgment about the number of trans-
actions to be examined and the areas to be tested. Because of the concept of
reasonable assurance, and because we will not perform a detailed examination of all
transactions, .there is a risk that material errors, irregularicies. or illegal
acts, including fraud or defalcations, may exist and not be detected by us. We
will advise you, however, of any matters of that nature that come ~o our attention.
Our responsibility as auditors is limited to the period covered by our audit and
does not extend to matters that might arise during any later periods for which we
are not engaged as auditors.
.
Our procedures will include tests of documentary evidence supporting the
transactions recorded in the accounts, and may include tests of the physical
existence of inventories, and direct confirmation of receivables and certain other
assets and liabilities by correspondence with selected individuals. creditors, and
banks. We will request written representations from your attorneys as part of the
engagement. and they may bill you for responding to this inquiry. At the conclu-
sion of our audit, we will also request certain written represen~ations from you
about the financial statements and related matters.
We understand that assistance in the preparation of schedules, analysis of accounts
and trial balances will be supplied by the Finance Department personnel as in
previous years.
We will provide a master of our report and the financial statements for the City to
have printed and bound and will prepare the financial portion of the state report
for the City to type. Our fee for these services for the year enàed September 30.
2001. will be $24,000. We will render interim billings as work pr~3resses with the
final billing being submitted after the delivery of the above men:::oned report.
Government Auditing Standards require that we provide you with a ~opy of our most
recent quality control review report. Our 2000 peer review repor:: accompanies this
letter.
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Parties to this engagement agree that any dispute that may arise regarding the
meaning, performance, or enforcement of this engagement will, priC':- ::0 resorting to
litigacion, be submitted to mediacion upon the written request 0: =oy parry to the
.
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City of Clermont
October 3,2001
Page Three
engagement. All mediations initiated as a result of this engagement shall be
administered by the American Arbitration Association (AAA). The results of this
mediation shall be binding only upon agreement of each party to be bound. Costs of
any mediation proceeding shall be shared equally by both parties.
We appreciate the opportunity to be of service to the City of Clermont and believe
this letter accurately summarizes the significant terms of our engagement. If you
have any questions, please let us know. If you agree with the terms of our
engagement as described in this letter, please sign the enclosed copy and return it
to us.
Sincerely,
£l
C¡t'~
Rice & Brown, P.A.
RESPONSE:
This letter correctly sets forth the understanding of the City of Clermont.
By, ~~
Title: ~~
Date: Oß70t3é¿ 231 ~"JJ
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4IIÞ ~~
- &. Fo.met ~
.
George W. Bollenback, CPA,* AEP
*
Peter B. FoTTet, CPA, PFS, CFP
Michael D. Bollenback, CPA*
Richard A. CTistini, .CPA~ CGFM
J. Patrick Callan, CPA*
Janet K. Rosenquist, CPA *
Roderick B. Stuart, CPA: CFP
. Regulated by the State of Florida
CERTIFIED PUBLIC ACCOUNTANTS
AND CONSULTANTS
To the Stockholders
Greenlee, Kurras, Rice & Brown, P .A.
We have reviewed the system of quality control for the accounting and auditing practice of Greenlee,
Kurras, Rice & Brown, P .A.(the firm) in effect for the year ended August 31,2000. A system of quality
control encompasses the finn's organizational structure and the policies adopted and procedures
established to provide it with reasonable assurance of conforming with professional standards. The
elements of quality control are described in the Statements on Quality Control Standards issued by the
American Institute of Certified Public Accountants (AICP A). The design of the system and compliance
with it are the responsibility of the firm. Our responsibility is to express an opinion on the design of the
system, and the finn's compliance with the system based on our review.
.
Our review was conducted in accordance with standards established by the Peer Review Board of the
AICPA. In perfonning our review, we obtained an understanding of the system of quality control for
the finn's accounting and auditing practice. In addition, we tested compliance with the firm's quality
control policies and procedures to the extent we considered appropriate. These tests covered the
application of the fInn's policies and procedures on selected engagements. Because our review was
based on selective tests, it would not necessarily disclose all weaknesses in the system of quality control
or all instances of lack of compliance with it.
I
Because there are inherent limitations in the effectiveness of any system of quality control, departures
from the system may occur and not be detected. Also, projection of any evaluation of a system of quality
control to future periods is subject to the risk that the system of quality control may become inadequate
because of changes in conditions, or because the degree of compliance with the policies or procedures
may deteriorate.
In our opinion, the system of quality control for the accounting practice of Greenlee, Kurras, Rice &
Brown, P .A. in effect for the year ended August 31, 2000, has been designed to meet the requirements
of the quality control standards for an accounting and auditing practice established by the AICPA and
was complied with during the year then ended to provide the firm with reasonable assurance of
confonning with professional standards.
t5 ~ íþ j lWeI!; ~ r9-.
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January 5, 2001
F:\W!'IAudil\O8326 REVQC.AUD.wpd
1000 Pinellas Screet. Clearwater. R. 33756-3433
(n7) 446-5858
Fax (n7) 443-3389