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A®, RESOLUTION 2013-757
ADOPTED DOC ID: 9158
THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2013-757 WAS
ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON
OCTOBER 22,2013:
RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs
Supervisor Scott Russell to execute an engagement letter with Albrecht. Vi¢¢iano. Zureck
and Company. P.C. in connection with the Town of Southold's Deferred Compensation Plan
2013 annual reporting obligation as required by the New York State Deferred Compensation
Board, at a fee not to exceed $12,750, that said fees 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.
Elizabeth A. Neville
Southold Town Clerk
RESULT: ADOPTED [UNANIMOUS]
MOVER: James Dinizio Jr, Councilman
SECONDER: Louisa P. Evans, Justice
AYES: Dinizio Jr, Ruland, Doherty, Talbot, Evans, Russell
ORIGINAL
•
CERTIFIED PUBLIC ACCOUNTANTS
October 1, 2013
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 years ending December 31, 2013 and 2012 in connection with its annual reporting
obligation 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, 2013 and 2012 and the related statement of changes in net
assets available for benefits for the year ended December 31, 2013 then ended, and the related notes to the
financial statements. 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.
6) Delinquent Participant Contributions.
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).
Audit Objective
Our audit will be conducted in accordance with auditing standards generally accepted in the United States of
America 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 Hartford, 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 statements 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
America, 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 Disclosure under ERISA. If for any reason we are unable to complete the engagement, we will -
not issue a report on this engagement.
PERSONAL SERVICE. TRUSTED ADVICE.
ALBRECHT, VIGGIANO, ZURECK & COMPANY, P.C.
245 PARK AVENUE, 24TH FLOOR 25 SUFFOLK COURT
NEW YORK, NY 10167 HAUPPAUGE, NY 11788-3715
T: 212.792.4075 T. 631.434.9500 F 631434.9518 - -
www.avz.com
INDEPENDENT MEMBER OF BKH INTENPTIONIL
To Honorable Supervisor and Town Board
October 1, 2013
Page 2
Audit Procedures
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. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements. 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 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, except as previously noted. 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 reporting or misappropriation of assets that comes to
our attention.We will also inform the appropriate level of management 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. 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 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.
Management Responsibilities
You agree to assume all management responsibilities for any nonattest services we provide; oversee the services
by designating an individual, preferably from senior management, with suitable skill, knowledge, and/or
experience; evaluate the adequacy and results of the services; and accept responsibility for them.
To Honorable Supervisor and Town Board
October 1, 2013
Page 3
Management Responsibilities (continued)
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 of the plan 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. 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 financial statements, (2) additional information that we may request for the purpose of the
audit, and (3) unrestricted access to persons within the plan from whom we determine it necessary to obtain audit
evidence.
Your responsibilities include adjusting the financial statements to correct material misstatements and confirming
to us in the written 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.
Engagement Administration, Fees and Other
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 property 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. Department 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.
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. We expect to begin our audit on a mutually agreeable date.
We estimate that our fees for this service will be $12,750 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.
To Honorable Supervisor and Town Board
October 1, 2013
Page 4
Engagement Administration, Fees and Other (continued)
You may request that we perform additional services not addressed in this engagement letter. If 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.
We appreciate the opportunity to be of service to Town of Southold 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,
OIAA/J~ Y,
Albrecht, Viggiano, Zureck & Company, P.C.
RESPONSE:
This letter correctly sets forth the understanding of:
Tow of Southold
Name:
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Title: 5- L&4 O~L v('S
Date: tJ(aZglL3