1989-21
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Clermont, Florida
June 19, 19B9
We aye pleased to confirm our understanding of the services ve
are to provide for the City of Clermont for the years ended
September 30, 19B9, 1990 and 1991. We viII audit the general
purpose financial statements of the City of Clermont as of and
for the years ended September 30, 19B9, 1990 and 1991.
GREENLEE
KURRAS
RICE &
BROWN, PA
CERTIFIED PUBLIC
ACCOUNTANTS
B '3 - 02 I
Honorable City Council
City of Clermont, Florida
P. O. BOK 120219
Clermont, Florida 34712-0219
Our audit viII be a Single Audit made in accordance vith
generally accepted auditing standards; the standards for
financial and compliance audits contained in Q~!~~~~~~~--~~~!~!~g
ê~~~~~~~~ issued by the Comptroller General of the United States;
Single Audit Act of 1984; O"B Circular A-128, ~~~!~~-~!_§~~~~-~~~
~Q~~!_QQ~~~~!~~~~; and Chapter 10.550, Rules of the Auditor
General of the State of Florida, ~Q~~!_gQ~~!~~~~~~!_~~~~!ï_~~Q~~~; and,
accordingly, viII include tests of the accounting records of the City of Clermont
and other procedures ve consider necessary to enable us to e~pTess an unqualified
opinion that the financial statements are fairly presented, in all material
respects, in conformity vith generally accepted accounting principles and to report
an the City of Clermont's compliance vith lavs and regulations and its internal
accounting controls as required for a Single Audit. If our opinion is other than
unqualified, ve viII fully discuss the reasons vith you in advance.
Herbert John Green/ee, Jr, CPA
Dorothy A Kurras, CPA
John S RIce, CPA
Jerry D Brown, CPA
PatricIa A Sykes, CPA
LIse C MorT/son, CPA
C L (ChIp) Gamer, CPA
Terry C Drew, CPA
Our procedures viII include tests of documentary evidence supporting the
transactions recctrded in the accmlnts, and may include tests of the physicsl
e~istence of inventories, and direct confirmation of receivables and certain other
assets and liabilities by correspondence vith selected individuals, creditors, and
banks. We will request vritten representations from your attorneys as part of the
engagement, and they may bill you for responding to this inquiry. At the
conclusion of aur audit, ve viII also request certain written representations from
you about the financial statements and related matters.
An audit is based primarily an the selective testing of accounting records and
related data; therefore, our audit viII involve judgment about the number of
transactions to be e~amined and the areas to be tested. As required by the Single
Audit Act of 1984, our audit viII include tests of transactions related to Federal
assistance programs for compliance vith applicable lavs and regulations. Hovever,
because ve viII not perform a detailed examination of all transactions, there is a
risk that material errars, irregularities, or illegal acts, including fraud or
defalcations, may exist and not be detected by us. We viII advise you, hovever, of
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
June 19. 19B9
Page Tvo
8
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any matters of that nature that come to our attention. and viII include such
matters in the reports required for a Single Audit. 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 vhich we are not engaged as auditors.
We understand that you viII provide us with the basic information required 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 viII assist in the preparation of your financial statements, but
the responsibility for the financial statements remains with you. This
responsibility includes the maintenance of adequate records ánd related controls,
the selection and application of accounting principles, and the safeguarding of
assets.
We understand that assistance in the preparation of schedules, analysis of accounts
and trial balances viII be supplied by the Finance Department personnel as in
previous years.
We viII provide a c.opy of our audit repo:rt, for the City to have pr inted 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 ended September 30. 1989. viII be $20,000.
Our fee for the years ended September 30, 1990 and 1991 will be negotiated prior to
starting our field work for those years based upon the services requested by the
City. Our fee does not include any additional testing or reporting requirements
required by new bond issues or grants received after September 30, 198B. These
services viII be billed separately. based on our hourly rates plus our-of-pocket
e~penses. We viII render interim billings as work progresses with the first
billing being submitted in October of 19B9, and the final billing being submitted
after the delivery of the above mentioned reports.
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 questictTts, please let us know. If you agree with the tl?rms of our
engagement as described in this letter, please sign the enclosed copy and return it
to us.
Sine.erely.
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Kurras. Rice & Brown, P.A.
RESPONSE:
This letter corree.tly sets fcfdh the understanding of the City of ClermctTtt.
By ~ m!2¿? Ä---- -------
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