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RESOLUTION 2016-124
`4. ADOPTED DOC ID: 11558
THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2016-124 WAS
ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON
JANUARY 19, 2016:
RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs
Supervisor Scott Russell to execute engagement letters with Albrecht, Viggiano, Zureck
and Company, P.C. in connection with the Justice Court audit for the year ended December 31,
2015 and the audit of the Town of Southold Deferred Compensation Plan as of December 31,
2014 and 2015, at a fee not to exceed $7,500 for the Justice Court audit, and a fee not to exceed
$12,750 for the Deferred Compensation Plan audit, 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 letters are subject to review and approval by the Town Attorney.
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Elizabeth A. Neville
Southold Town Clerk
RESULT: ADOPTED [UNANIMOUS]
MOVER: Jill Doherty, Councilwoman
SECONDER:William P. Ruland, Councilman
AYES: Ghosio, Dinizio Jr, Ruland, Doherty, Evans, Russell
, RECEIVED
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Southold Town Clerb
CERTIFIED PUBLIC ACCOUNTANTS
•
January 7, 2016
To Honorable Supervisor and Town Board
Town of Southold
Southold, NY 11791
We are pleased to confirm our understanding of the services we are to provide for the Town of
Southold Deferred Compensation Plan ("the Plan") for the years ended December 31, 2015 and
2014 in connection with its annual reporting obligation under the New York State Deferred
Compensation Board.
Except as described below, we will audit the statements of net assets available for benefits of
the Town of Southold Deferred Compensation Plan as of December 31, 2015 and 2014 and the
related statements of changes in net assets available for benefits for the year ended December
31, 2015 then ended, and the related notes to the financial statements. Also, the following
supplementary schedules accompanying the basic financial statements, as applicable, will be
subject 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).
PERSONAL SERVICE.TRUSTED ADVICE. --�--"
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
Town of Southold •
January 7, 2016
Page 2
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
Mass Mutual Retirement Services, 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 supplemental
schedules taken as a whole. The form and content of the information included in the financial
statements and supplemental 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.
Audit Procedures
Our procedures will include tests of documentary evidence supporting the transactions recorded
in the accounts and direct confirmation of investments except those certified to by the trustee,
and certain other assets and liabilities by correspondence with financial institutions and other
third parties. We may 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 the appropriate level of
management of any material errors or 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. 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.
•
Town of Southold
January 7, 2016
Page 3
Audit Procedures (continued) •
Except as described in the "Audit Objective" section, 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.
Non Attest Services
We will provide the following nonattest services to the Plan as of and for the year ended
December 31, 2015:
• Assist in the drafting and/or preparation of the financial statements;
• Assist in the drafting-and/or preparation of footnotes related to the financial statements;
• Assistance in adjusting the financial statements as necessary.
Management Responsibilities
You agree to assume all management responsibilities for the nonattest services noted above;
.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.
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 also 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.
•
Town of Southold
January 7, 2016
Page 4
Management Responsibilities (continued)
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 responsible for identifying and ensuring that the plan
complies with applicable laws and regulations.
With regard to the electronic dissemination of audited financial statements, including financial
statements published electronically on your Internet website, you understand that electronic
sites are a means to distribute information and, therefore, we are not required to read the
information contained in these sites or to consider the consistency of other information -in the
electronic site with the original document.
You are required to disclose the date through which subsequent events have been evaluated
and whether that date is the date the financial statements were issued or were available to be
issued. You agree that you will not date the subsequent event note earlier than the date of your
management representation letter.
Engagement Administration, Fees, and Other
We understand that your personnel will prepare schedules, analyses, and 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 will begin our audit on a
mutually agreed upon date.
We estimate our fees for this service will be $12,750 for the audit of the plan enumerated above.
Our fee will be 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.
Please note that the fee does not include any accounting services, preparation of reconciliations,
and similar services. The fee assumes that the reports from the third party providers are
accurate, and there are no significant plan noncompliance issues.
1•
Town of Southold
January 7, 2016
Page 5 •
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.
In the event we are required pursuant to subpoena or other legal process to produce documents
or give testimony relating to this engagement in anyjudicial, administrative or investigative
proceedings to which we are not a party, or, requested to do so, with your consent, in
connection with an informal inquiry or investigation, you shall reimburse us at standard billing
rates for our professional time and expenses, including reasonable attorney's fees, incurred in
responding to such subpoenas or requests. We shall, to the extent legally permissible, notify
you as soon as practicable of any such subpoena or request so that you may move to quash, or
otherwise oppose the subpoena or request.
You agree that our liability to you on account of any damages, liabilities or losses, (including
your related costs and expenses), in any way arising out of or relating to the services performed
under this agreement shall be limited to the amount of fees paid to us for such services. In no
event shall we be liable to you for consequential, special, indirect, incidental, punitive or
exemplary damages (including, without limitation, lost profits and opportunity costs) even if we
are aware or have been advised of the possibility of such damages. The provisions of this
Paragraph shall apply regardless of the form or theory of the action, damage, claim, or liability
asserted, whether in contract, statute, tort (including but not limited to negligence) or otherwise.
All disputesarisingout of or relating to services provided pursuant to this agreement (regardless
of the theory, nature or amount of the claim asserted or the forum in which any action or
proceeding is commenced) shall be governed by the laws of the State of New York, including
without limitation, its statutes of limitations, without regard to the conflict of law provisions of
New York or any other state or jurisdiction.
No action, regardless of form, arising out of the services under this agreement may be brought
by either of us more than three years after the date of the last'services for the year in dispute
provided under this agreement.
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,
aUked/O, V ,2 Com,P. 0
Albrecht, Viggiano, Zureck & Company, P.C.
Town of Southold
January 7, 2016
Page 6
RESPONSE:
This letter correctly sets forth the understanding of:
Tow of Southold
•
Name: Cadas4w"
Title: �cec.,1 Sec
Date: /2.57/(C-
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CERTIFIED PUBLIC ACCOUNTANTS
January 9, 2016
Honorable Supervisor and Town Board
_ Town of Southold
Southold, NY 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, 2015. We will audit the Statement of Cash Receipts and
Cash Disbursements (the"Statement")for the year ended December 31, 2015.
Audit Objective
The objective of our audit is the expression of an opinion as to whether the Statement 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 Statement of Cash Receipts 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 Statement 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
Statement; therefore, our audit will involve judgment about the number of transactions to be examined and
the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute
assurance about whether the Statement 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 _
PERSONAL SERVICE.TRUSTED ADVICE. ---4--
• 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
INDCPFNDCNT MEMBER OF DKR INTCRNn1KNNA1
Honorable-Supervisor and Town Board
Town of Southold
January 9, 2016
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 Statement, or violations of laws or governmental regulations that do
not have a direct and material effect on the Statement. However, we will inform you of any material errors
and any fraudulent financial reporting or misappropriation of assets that come to our attention. We will also
inform you 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, 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 Statement 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 Statement 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
management and those charged with governance internal control related matters that are required to be
communicated under professional standards.
Audit Procedures-Compliance
As part of obtaining reasonable assurance about whether the Statement is free of material misstatement,we
will perform tests of the Town of Southold's Justice Court's compliance with applicable laws and regulations
and the provisions of 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 -
As part of the audit, we will assist in the preparation of a draft of your Statement of Cash Receipts and Cash
Disbursements and related notes based on information provided by you.
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.
Management Responsibilities
Management is responsible for establishing and maintaining effective internal controls, including monitoring
ongoing activities; for the selection and application of accounting principles; and for the preparation and fair
presentation in the Statement.
Honorable Supervisor and Town Board
Town of Southold
January 9, 2016.
Page 3
Management Responsibilities (continued)
Management is 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 Statement, (2) additional information that we may request for the purpose of the audit, (3) unrestricted
access to persons within the entity from whom we determine it necessary to obtain audit evidence.
Your responsibilities include adjusting the Statement 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 or illegal acts affecting the government
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 Statement. 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, contracts,
agreements, and grants.
You agree to assume all management responsibilities for the statement 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 Statement. 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 Statement. 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 oof the Town of Southold's Justice Court's Statement of Cash Receipts and Cash
Disbursements will be $7,500 for the year ended December 31, 2015.
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.
Honorable Supervisor and Town Board
Town of Southold
January 9, 2016
Page 4
Engagement Administration, Fees, and Other(continued)
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.
Government Auditing Standards require that we provide you with a copy of our most recent quality control
review report. Our 2014 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,
atbittflAt Vo `3wi 4' C ,Q. C..
ALBRECHT,VIGGIANO,ZURECK AND COMPANY, P.C.
RESPONSE:
This letter correctly sets forth the understanding of the
TO N OF SOUTHOLD
By: G.4Yd
Title: c7 V f/LUt So e
Date: - / �a S -/6