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HomeMy WebLinkAboutAlbrecht, Viggiano, Zureck & Co PC - Justice Court Audit RESOLUTION 2019-235 a� ADOPTED DOC ID: 15006 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2019-235 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON MARCH 12,2019: RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs Supervisor Scott Russell to execute an engagement letter with Albrecht,Viggiano, Zureck and Company, P.C. in connection with the Justice Court audit for the year ended December 31, 2018, at a fee not to exceed $7,500, that said fee shall be a legal charge to the General Fund Whole Town Independent Auditing and Accounting budget (A.1320.4.500.300), and that said engagement letter is subject to review and approval by the Town Attorney. l/a/Ailtp! Elizabeth A.Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Louisa P. Evans, Justice SECONDER:William P. Ruland, Councilman AYES: Dinizio Jr, Ruland, Doherty, Ghosio, Evans, Russell 4 StifF1 RECEIVED CZ� N APR 1 5 2019 o Southold Town Clerk Office of the Town Attorney Town of Southold Town Hall Annex, 54375 Route 25 P.O. Box 1179 Southold, New York 11971-0959 Telephone : 631-765-1939 Facsimile: 631-765-6639 MEMORANDUM To: Ms. Elizabeth A. Neville, Town Clerk From: Mary Silleck Secretary to the Town Attorney Date: April 11, 2019 Subject: Engagement letter between Town of Southold and Albrecht, Viggiano, Zureck & Company, P.C. JJustice Court Audit) With respect to the above-referenced matter, I am enclosing the original Agreement together with the Resolution. If you have any questions regarding the enclosed, please do not hesitate to call me. Thank you. /ms Enclosures cc: Accounting D 0 CERTIFIED PUBLIC ACCOUNTANTS January 30, 2019 Honorable Supervisor and Town Board Town of Southold Southold, New York 11971 We are pleased to confirm our understanding of the services we are to provide the Town of Southold's Justice Court for the year ended December 31, 2018. We will audit the Combining Schedule of Cash Collections and Disbursements (the"Schedule")for the year ended December 31, 2018. Audit Objective The objective of our audit is the expression of an opinion as to whether the Schedule is fairly presented, in all material respects, in conformity with generally accepted accounting principles. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and will include tests of the accounting records and other procedures we consider necessary to enable us to express such an opinion. We will issue a written report upon completion of our audit of the Town of Southold's Justice Court Combining Schedule of Cash Collections and Disbursements. Our report will be addressed to the Town Board. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add an emphasis-of-matter paragraph or other-matter paragraph. If our opinion on the Schedule is other than unmodified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to withdraw from this engagement. Audit Procedures -General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Schedule; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will plan and perform the audit to obtain reasonable about whether the Schedule is free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. BEYOND THE NUMBERS... �— ALBRECHT,VIGGIANO,ZURECK&COMPANY, PC 245 PARK AVENUE,39TH FLOOR 25 SUFFOLK COURT NEW YORK, NY 10167 HAUPPAUGE, NY 11788-3715 T.212.792.4075 T.631 434 9500 F:631.434.9518 www.avz.com INDEPENDENT MEMBER OF BKR INTERNATIONAL Honorable Supervisor and Town Board Town of Southold January 30, 2019 Page 2 Audit Procedures -General (continued) Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards, In addition, an audit is not designed to detect immaterial misstatements, or violations of laws or governmental regulations that do not have a direct and material effect on the Schedule. However, we will inform the appropriate level of management of any material errors, fraudulent financial reporting or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violation of laws or governmental regulation that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to 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 and direct confirmation of certain assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. 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 conclusion of our audit, we will also require certain written representations from you about the Schedule and related matters. Audit Procedures -Internal Control Our audit will include obtaining and understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the Schedule and to design the nature, timing, and extent of further audit procedures. An audit is not designed to provide assurance on internal control or to identify deficiencies in internal control. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards. Audit Procedures -Compliance As part of obtaining reasonable assurance about whether the Schedule is free of material misstatement, we will perform tests of the Town of Southold's Justice Court's compliance with the provisions of applicable laws, regulations, contracts and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Other Services We will also assist in the preparation of a draft of your Combining Schedule of Cash Collections and Disbursements in comformity with U.S. general accepted accounting principles based on information provided by you. We will perform the services in accordance with applicable professional standards. The other services are limited to the schedule services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. In addition, we will test two months from the bail accounts for each judge to ensure all bail receipts are being deposited into the appropriate bank accounts. Honorable Supervisor and Town Board Town of Southold January,30, 2019 Page 3 Management Responsibilities Management is responsible for designing, implementing and maintaining effective internal controls relevant to the preparation and fair presentation of the Schedule that are free from material misstatement, whether due to fraud or error, including monitoring ongoing activities; for the selection and application of accounting principles; and for the preparation and fair presentation of the Schedule in conformity with U.S. generally accepted accounting principles. Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the Schedule, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the Schedule to correct material misstatements and confirming to us in the management 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 Schedule taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud or illegal acts affecting the entity involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the Schedule. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws and regulations. You agree to assume all management responsibilities for the schedule preparation services and any other nonattest services we provide; oversee the services by designating an individual, preferably from senior management with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. Engagement Administration, Fees, and Other We understand that your employees will provide us with the basic information required for our audit, including locating documents selected by us for testing, various account analysis, and schedules needed to prepare the Schedule. You are responsible for the accuracy and completeness of all information provided. We expect to begin our audit at a mutually agreeable date and to issue our report in a timely fashion after receipt of all information needed to prepare the Schedule. Robert S. Posner is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. Our fees for services are based on the number of hours required to complete our engagement and our standard hourly rates in effect at the time the services are rendered. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. The fee for the audit of the Town of Southold's Justice Court's Combining Schedule of Cash Collections and Disbursements will be $7,500 for the year ended December 31, 2018. Honorable Supervisor and Town Board Town of Southold January 30, 2019 Page 4 Engagement Administration, Fees, and Other(continued) These fee estimates are based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. 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 30 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. Should additional time be incurred, or additional assistance be requested, we will invoice you separately based upon the amount of time expended at the regular hourly rates in effect at the time the services are rendered. Govemment Auditing Standards require that we provide you with a copy of our most recent quality control review report. Our 2017 peer review report accompanies this letter. We appreciate the opportunity to be of service to the Town of Southold's Justice Court 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. Very truly yours, 0&du v- 610 Albrecht, Viggiano, Zureck& Company, P.C. RESPONSE: This letter correctly sets forth the understanding of the: TOWN OF SOUTHOLD By: Title: Date: 2