Loading...
R-86-893 - 7/10/1986WHEREAS, the City of Round Rock is required to have an annual audit of all City funds; and WHEREAS, Pena Swayze and Company submitted an audit letter agreement to provide such services; and WHEREAS, the Council of the City of Round Rock is desirous of entering into an agreement with Pena Swayze and Company; Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS That the Mayor is hereby authorized to execute said audit letter agreement with Pena Swayze and Company, a copy is attached hereto for all intents and purposes. RESOLVED this 10th day of July, 1986. ATTEST: • NE LAND, City Secretary RESOLUTION NO. f9S/e MIKE ROBINSON, Mayor City of Round Rock, Texas Hon. Nike Robinson, Mayor Mr. Jack L. Harzke, City Manager Mr. Sam Huey, Assistant City Manager City of Round Rock Round Rock, Texas Gentlemen: PENA SWAYZE & CO. CERTIFIED PUBLIC ACCOUNTANTS July 10, 1986 We are pleased to have the opportunity to serve the City of Round Rock as independent auditors for the year ending September 30, 1986. The purpose of this letter is to confirm our understanding of the scope of our examination. We will perform an examination for the purpose of expressing an opinion on the fairness of the presentation of the City's general purpose financial statements for the year ending September 30, 1986. If our opinion is other than unqualified, we will fully discuss the reasons with you in advance. In addition to the general purpose financial statements, we will: - Assist in the preparation of the City's Comprehensive Annual Financial Report for the Certificate of Excellence program. - Report on compliance with laws and regulations. - Report on internal control. Our audit will be a Single Audit made in accordance with generally accepted auditing standards; the standards for financial and compliance audits contained in Standards for Audit of Governmental Organizations, Programs, Activities, and Flnctions, issued by the U.S General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A -128, Audits of State and Local Governments, and will include tests of the accounting records of the City and other procedures we consider necessary to enable us to express an unqualified opinion that the financial state- ments are fairly presented in conformity with generally accepted accounting principles consistently applied and to report on the City's compliance with laws and regulations and its internal accounting controls as required for a Single Audit. MEMBER AMERICAN INSTITUTE AND TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 250 ROUND ROCK, TEXAS 78680 512/255-2165 Page 2 July 10, 1986 Although defalcations and similar irregularities ma occasionally be disclosed by this type of examination, it is not designed for this purpose and should not be relied on to disclose fraud, should any exist. We will, of course, report to you anything that appears to us dur our examination to be unusual or abnormal. As you know, City administrators have primary responsibility for properly recording transactions in the records, for safeguarding assets and for preparing accurate financial statements. Our basic audit function is to add reliability to those financial statements. Additionally, we will study the City's operations in order to make recommendations regarding the economy and efficiency with which you conduct your affairs. In conjunction with all phases of our examination, we will review the City's system of internal accounting controls. If we observe any material weaknesses, we will report them to you with recommendations for correcting those weaknesses. We will try to initiate ideas or observations that we believe will help achieve the objectives of the City. We will also be pleased to respond to inquiries you might have about financial or other business matters. Our fees are based on the time our personnel require to complete the engagement plus direct expenses. Individual hourly rates vary in accord- ance with the degree of responsibility and skill of those assigned to the audit. Our estimated fee for this examination is $27,000 - $30,000. If unforeseen complications arise during the audit making it likely that the fee will exceed this amount, we will discuss the increase before proceeding. The City is to furnish the necessary and customary clerical staff to assist us in preparing detail trial balances and supporting schedules. We also understand that City staff will assist us by locating and submitting to us invoices, cancelled checks and other docuvents and records which we request. If you intend to publish or otherwise reproduce the financial state- ments and make reference to our firm name, you agree to provide us with printers' proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. PENA SWAYZE & CO. CEBIThYED PUBLIC ACCOUNTANTS Page 3 July 10, 1986 If this letter defines the arrangements as you understand them, please sign and date the enclosed copy and return it to us. If not, please let us know what changes are needed. CONFIRMED BY: Mike Robinson, Mayor Sam Huey, Assistant City Date 7-/D-1 PHI■A SWAYZE & co. CERTIFlEO PUBLIC ACCOUNTANTS Sincerely, P L�ti 4.4)-e, 7 c rCO . PENA SWAYZE & CO. DATE: July 8, 1986 SUBJECT: Council Agenda, July 10, 1986 ITEM: 9F - Consider a resolution authorizing the Mayor to sign an audit agreement letter with Pena Swayze and Co. This is the formal engagement letter retaining Pena Swayze to conduct the examination of City financial records for this current fiscal year. The range of the audit fee is between $27,000 and $30,000.