Loading...
HomeMy WebLinkAboutDeferred Comp Plan AuditRESOLUTION 2010-105 ADOPTED DOC ID: 5656 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2010-105 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON JANUARY 19, 2010: RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs Supervisor Scott A. Russell to execute the engagement letter between the Town of Southoid and AIbrecht, Viggiano~ Zureck & Compan¥~ P.C. to perform an audit of the Town's Deferred Compensation Plan for the year ending December 31, 2009, in connection with the Town's annual reporting obligations under the New York State Deferred Compensation Board, at a cost of $12,500.00, subject to the approval of the Town Attorney. Elizabeth A. Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: William Ruland, Councilman SECONDER: Vincent Orlando, Councilman AYES: Ruland, Orlando, Talbot, Krupski Jr., Evans ABSENT: Scott Russell ORIGINAL C Eft ,'qFIED PUBLIC ACCOUNTANTS January 8, 2010 To Honorable Supervisor and Town Board Town of Southold Southold, New York 11791 We are pleased to confirm our understanding of the services we are to provide for the Town of Southold Deferred Compensation Plan for the year ending December 31, 2009 in connection with its annual reporting obiigafion under the New York State Deferred Compensation Board. Except as described below, we will audit the statement of net assets available for benefits of Town of Southold Deferred Compensation Plan as of December 31, 2009 and the re{ated statement of changes in net assets available for benefits for the year then ending. Also, the following supplemental schedules accompanying the basic financial statements, as applicable, will be subjected to the auditing procedures applied in our audit of the financial statements: 1) Assets (Held at End of Year) and Assets (Acquired and Disposed of Within Year). 2) Loans or Fixed Income Obligations in Default or Classified as Uncollectible. 3) Leases in Default or Classified as Uncollectible. 4) Reportable Transactions. 5) Nonexempt Transactions. These financial statements and supplemental schedules are required by the New York State Deferred Compensation Board and will be reported in conformity with the Department of Labor's (DOL) Rules and Regulations for Reporting and Disclosure under Employee Retirement Income Security Act of 1974 (ERISA). Our audit will be conducted in accordance with generally accepted auditing standards established by the Auditing Standards Board (United States) except that, as permitted by Regulation 2520.103-8 of the DOL's Rules and Regulations for Reporting and Disclosure under ERISA and as instructed by you, we will not perform any auditing procedures with respect to information prepared and certified to by Hadford, the trustee, in accordance with DOL Regulation 2520.103-5, other than comparing the information with the related information included in the financial statements and supplemental schedules. Because of the significance of the information that we will not audit, we will not express an opinion on the financial statements and schedules taken as a whole. The form and content of the information included in the financial stalements and schedules, other than that derived from the information certified to by the trustee, will be audited by us in accordance with auditing standards generally accepted in the United States of Amedca, and will be subjected to tests of your accounting records and other procedures we consider necessary to enable us to express an opinion that they are presented in compliance with the DOL's Rules and Regulations for Reporting and Disctosure under ERISA. if for any reason we are unable to complete the engagement, we will not issue a report on this engagement 245 f%RK AVENUE,,241'It FLOOR 25 ~UFFO~K,~UR1 NEWYORK, NY 10167 HA~PPAU~, N~ 117~1,5 , 'E 232.192,~75 T: 63i ;~3~,95~ To Honorable Supervisor and Town Board January 8, 2010 Page 2 Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts and direct confirmation of certain other assets and liabilities by correspondence with financial institutions and other third parties. We will also 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 require certain written representations from you about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested, except that assets and related transactions certified to by the trustee will not be tested. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations, including prohibited transactions with parties in interest or other violations of ERISA rules and regulations, that are attributable to the plan or to acts by management or employees acting on behalf of the plan. Because an audit is designed to provide reasonable, but not absolute, assurance 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. 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 financial statements. However, we will inform you of any material errors that come to our attention, and we will inform you of any fraudulent financial repoding or misappropriation of assets that comes to our attention.We will also inform you of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential and will include prohibited transactions in the supplemental schedule of nonexempt transactions as required by the instructions to Form 5500. 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. Except as described in the second paragraph, our audit will include obtaining an understanding of the plan and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements 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. However, during the audit, we will communicate to you and those charged with governance internal control related matters that are required to be communicated under professional standards. In addition, we will perform certain procedures directed at considering the Plan's compliance with applicable Internal Revenue Service (IRS) requirements for tax exempt status and ERISA plan qualification requirements. However, you should understand that our audit is not specifically designed for and should not be relied upon to disclose matters affecting plan qualifications or compliance with the ERISA and IRS requirements. If during the audit we become aware of any instances of any such matters or ways in which management practices can be improved, we will communicate them to you. You are responsible for making all management decisions and performing all management functions; for designating an individual with suitable skill, knowledge, or experience to oversee any bookkeeping or any other nonattest service we provide; and for evaluating the adequacy and results of those services and accepting responsibility for them. To Honorable Supervisor and Town Board January 8, 2010 Page 3 You are responsible for establishing and maintaining internal controls, including monitoring ongoing activities; for the selection and application of accounting principles; for establishing an accounting and financial reporting process for determining fair value measurements; and for the fair presentation in the financial statements of the net assets available for benefits and changes in net assets available for benefits of the plan in conformity with U.S. generally accepted accounting principles. You are responsible for making all financial records and related information available to us and for the accuracy and completeness of that information, including the completeness and accuracy of the certification by the trustee. Your responsibilities include adjusting the financial statements 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 financial statements 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 affecting the plan involving (1) plan management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the plan received in communications from employees, former employees, regulators, or others. In addition, you are also responsible for identifying and ensuring that the plan complies with applicable laws and regulations. We understand that your personnel will prepare schedules and analyses and type all confirmations we request and will locate any invoices or other documents selected by us for testing. The audit documentation for this engagement is the properly of Albrecht, Viggiano, Zureck & Company, P.C. and constitutes confidential information. However, we may be requested to make certain audit documentation available to the U.S. Depadment of Labor pursuant to authority given to it by law. if requested, access to such audit documentation will be provided under the supervision of Albrecht, Viggiano, Zureck & Company, P.C. personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the U.S. Department of Labor. The U.S. Department of Labor may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. Jeffrey Davoli is the engagement partner and is responsible for supervising the engagement and signing the repod. We expect to begin our audit in May 2010 and to issue our repod no later than September 30, 2010. We estimate that our fees for this service will be $12,500 for the audit of the plan enumerated above. The fee estimate is 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 thirty days or more overdue and will 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 expenditures through the date of termination. You may request that we perform additional services not addressed in this engagement letter, tf this occurs, we will communicate with you regarding the scope of the additional services and the estimated fees, We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the terms of this engagement letter. To Honorable Supervisor and Town Board January 8, 2010 Page 4 We appreciate the opportunity to be of service to Town of Southold and believe this better 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, Albrecht, Viggiano, Zureck & Company, P.C. RESPONSE: This letter correctly sets fodh the understanding of: Name: ~f~--~ Title: Date: ,,x?.¢~ ¢ ( 0