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CM-10-02-033BROCKWAY GERSBACH LaFRANKLIN & NIEMEIER,P.C. CERTIFIED PUBLIC ACCOUNTANTS January 29, 2010 City of Round Rock Round Rock, Texas We are pleased to confirm our understanding of the nature and limitations of the services we are to provide for City of Round Rock. We will apply the agreed-upon procedures which management has specified, listed in the attached schedule, to management agreement with CCA Silband/GolfCorp/Round Rock, Inc. for the year ended September 30, 2009. This engagement is solely to assist management in evaluating the compliance with management agreement. Our engagement to apply agreed-upon procedures will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described in the attached schedule either for the purpose for which this report has been requested or for any other purpose. If, for any reason, we are unable to complete the procedures, we will describe any restrictions on the performance of the procedures in our report, or will not issue a report as a result of this engagement. Because the agreed-upon procedures listed in the attached schedule do not constitute an examination, we will not express an opinion on compliance with the contract. In addition, we have no obligation to perform any procedures beyond those listed in the attached schedule. We will submit a report listing the procedures performed and our findings. This report is intended solely for the use of management, and should not be used by anyone other than these specified parties. Our report will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to ydu. You are responsible for the presentation of management agreement with CCA Silband/GolfCorp/Round Rock, Inc. in accordance with evaluating the compliance with management agreement; and for selecting the criteria and determining that such criteria are appropriate for your purposes. Steve Niemeier is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. We plan to begin our procedures on approximately February 1, 2010 and, unless unforeseeable problems are encountered, the engagement should be completed by February 28, 2010. At the conclusion of our engagement, we will require a representation letter from management that, among other things, will confirm management's responsibility for the presentation of the management agreement with CCA Silband/GolfCorp/Round Rock, Inc. in accordance with evaluating the compliance with management agreement. Posr OFFICE aox 4083 ■ TEMPLE, Tem 76505.4083 • 254.773.9907 • fax 254.773.1570 WWW.TEMPLECPA.COM We estimate that our fees for these services will be $ 5,500 — $ 6,500. You will also be billed for travel and other out-of-pocket costs such as report production, typing, postage, etc. The fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the work performed. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes overdue and will not be resumed until your account is paid in full. We appreciate the opportunity to assist you 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. If the need for additional procedures arises, our agreement with you will need to be revised. 1t is customary for us to enumerate these revisions in an addendum to this letter. If additional specified parties of the report are added, we will require that they acknowledge in writing their responsibility for the sufficiency of procedures. Sincerely, Stephei H. Nicmcier, PA President Acknowledged: CITY OF ROUND ROCK 4.; Name dames R.Kabg. , Title 2.1v2 f)i0 Date Schedule of Agreed -Upon Procedures We will apply the following procedures, which you have specified: 1. We will review the management agreement with CCASilband/GolfCorp/Round Rock, Inc., summarize financially significant items, and test on compliance with these items. 2. We will review current internal control procedures over revenues at the golf course for the purpose of assessing risk, but not to issue a report on internal control. 3. We will test, on a judgmental basis, documents supporting revenues and expenses and provide a statement regarding results of our tests. We will track financials to ensure that financial results appear fair based on the observed data. 4. We will apply analytical analysis of major revenue and expense accounts and report significant variances. We will test golf course revenues by comparing actual amounts with amounts predicted by taking rounds played times average green fee. 5. We will examine on a test basis fixed asset additions, testing that the additions are at Forest Creek. DATE: SUBJECT: ITEM: Department: Staff Person: Justification: February 8, 2010 City Council Agenda — February 12, 2010 Consider executing Letter Agreement dated January 29, 2010 with Brockway Gersbach Franklin & Niemeier, P.C. for limited purpose audit of Forest Creek Golf Club. Finance Department Cheryl Delaney— Finance Director This audit is a part of the City's overall review of the current management company running the Forest Creek Golf Club. This audit will help clarify the City's future management plans for the Forest Creek Golf Club. Strategic Plan Relevance: 8.0 Maintain and enhance public confidence, satisfaction and trust in City government. Funding: Cost: Not to exceed $6,500.00 plus travel expenses. Outside Resources (if applicable): Public Comment (if applicable): N/A UPDATED APRIL 2008 10 19 Request for City Council/City Manager Action IED City Council fID City Manager Submit completed form for all City Manager and City Council approvals. Department Name: Finance Department Contact Person: Cheryl Delaney / Misty Gray Project Mgr/Resource: Jerry Galloway Project Coordinator: Assigned Attorney: J. Kay Gayle City Council or City Manager Approval Date: Agenda Wording For Admiliis ration Use ONLY F . Tag #: j . Et, -02. -O ,sio Original Documents Received: Received: 2— Project Project Name: Limited Purpose Audit of Forest Creek Golf Club ContractorNendor: Brockway Gersbach Franklin & Niemeier, P.C. Funding Source: Additional funding Source: Amount: Not to exceed $6,500.00 plus travel Account Number: 2/12/2010 Consider executing Letter Agreement dated January 29, 2010 with Brockway Gersbach Franklin & Niemeier, P.C. for limited purpose audit of Forest Creek Golf Club. Finance Information Is Funding Required? Q Initial Construction Contract Construction Contract Amendment Change Order Change in Quantity ED Initial Professional Services Agreement Supplemental Professional Service Agreement Q Purchasing/Service Agreement Purchase Order Item(s) to be purchased Yes O; No Unforeseen Circumstances Other (Please clearly identify action below) Audit Letter of Agreement FIN N/A E'E PROVALS related ONE YbyFinance} Fina! Flnatrce Approval Required Amount 6500 plus travel Required for Submission of ALL City Council and City Manager Items Project Mgr. Signature; Dept. Director Signatur *City Attorney Signature: City Manager Signature: RFA}, blue sheaf, stack up info AGENDA WITHOUT FINANCE AND LEGAL Date: Dat Date: Date: .y ...w...o.To .., PRIOR TO SUBI *city Attorney signature is required for all items. REVISED 2/10/2010 LEGAL DEPARTMENT APPROVAL FOR CITY COUNCIL/CITY MANAGER ACTION Required for Submission of ALL City Council and City Manager Items Department Name: Finance Protect Mgr/Resource: Jerry Galloway ECouncil Action: ORDINANCE Agenda Wording Letter Agreement for audit of Forest Creek Golf Project Name: Club Contractor/Vendor: Brockway Gersbach Franklin & Niemeier, P.C. 0 RESOLUTION City Manager Approval CMA Wording Consider executing Letter Agreement dated January 29, 2010 with Brockway Gersbach Franklin & Niemeier, P.C. for limited - purpose audit of Forest Creek Golf Club Attorney Approval ©Attorney Notes/Comments Date 2. g. /0 O:1wdox\SCCInts\0117\1003\M ISC\00182646.XLS Updated 6/3/08