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HomeMy WebLinkAboutRehn, George - CPF Audit OFFICE LOCATION: MELISSA A. SPIRO '*QF sorry Town Hall Annex LAND PRESERVATION COORDINATOR ��� �� 54375 State Route 25 melissa.spiro@town.southold.ny.us (corner of Main Road& Youngs Avenue) Southold, New York Telephone(631)765-5711 G Facsimile(631)765-6640 '� A�a� MAILING ADDRESS: olyCOU M�I,� P.O. Box 1179 Southold, NY 11971-0959 DEPARTMENT OF LAND PRESERVATION TOWN OF SOUTHOLD RECEIVED To: Elizabeth A. Neville,Town Clerk FEB - 1 2018 From: Melanie Doroski, Sr. Administrative Assistant Southold Town Clerk Date: January 31', 2018 Re: 2017 CPF Audit Engagement Letter—George R. Rehm, CPA On January 16, 2018, the Southold TowmB,oard,adopted,resolution-no.,2018-97 engaging the professional services of George R Rehn,,CPA for.the completion of the,2017., Community Preservation Fund audit., I have attached a copy of said resolution, along with a fully signed engagement letter, signed on January 19 and January 27, 2018 by both parties. Attachments (2) yUfFO(,�Cpbs RESOLUTION 2018-97 ADOPTED DOC ID: 13715 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2018-97 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON JANUARY 16, 2018: RESOLVED that the Town Board of the Town of Southold hereby accepts the bid of George R. Rehn, Certified Public Accountant, East Setauket,New York, in an amount not to exceed $4,000 for the preparation of an annual audit of the Community Preservation Funds for the year 2017 for purposes of determining whether the fund has been administered consistent with the provision of New York State Law § 64-e and Southold Town Code Chapter 17. Contract period shall be from date of award until completion of the 2017 Community Preservation Fund audit with an option for renewal, under the same terms and conditions, with concurrence of the Town and the contractor for two additional one-year periods in an amount not to exceed $4000 for the CPF audit years 2018 and 2019, all in accordance with the bid proposal; and, be it further RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs Supervisor Scott A. Russell to execute an engagement letter with George R. Rehn, Certified Public Accountant, regarding the preparation of an annual audit of the Peconic Bay Community Preservation Fund for the year ended December 31, 2017, in accordance with the bid proposal submitted to the Town, and subject to the approval of the Town Attorney. Elizabeth A. Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Louisa P. Evans, Justice SECONDER:Robert Ghosio, Councilman AYES: Dinizio Jr, Ruland, Ghosio, Evans, Russell ABSENT: Jill Doherty r, - . 5 �4' George R. RehnCertified Public Accountant YE +_ 286 Main Street • East Setauket • New York 11733 (631) 751-3886 • Fax (631) 751-2740 January 12,2017 Board of Directors Town of Southold 53095 Route 25 PO Box 1179 Southold,NY 11791 I am pleased to confirm my understanding of the services I am to provide for Town of Southold Peconic Bay Community Preservation Fund for the year ended December 31,2018. I will audit the financial statements of Town of Southold Peconic Bay Community Preservation Fund which comprise the statement of financial position as of December 31, 2018 and the related revenues and expenditures for the year then ended, and the related notes to the financial statements. Audit Objective The objective of my audit is the expression of an opinion about whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. My audit will be conducted in accordance with auditing standards generally accepted in the United States of America and will include tests of your accounting records and other procedures I consider necessary to enable me to express such an opinion. I cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for me to modify my opinion or add an emphasis-of-matter or other- matter paragraph. If my opinion is other than unmodified, I will discuss the reasons with you in advance. If, for any reason, I am unable to complete the audit or am unable to form or have not formed an opinion, I may decline to express an opinion or to issue a report as a result of this engagement. Audit Procedures My procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, test of the physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. I will also request written representation from the Organization's attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of my audit, I 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, my 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, as well as evaluating the overall presentation of the financial statements. I 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 that are attributable to the Organization or to acts by management or employees acting on behalf of the Organization. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because I will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by me, 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 financial statements. However, I will inform the appropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to my attention. I will also inform the appropriate level of management of any violations of laws or governmental regulations that come to my attention, unless clearly inconsequential. My responsibility as auditor is limited to the period covered by my audit and does not extend to any later periods for which I am not engaged as auditor. My audit will include obtaining an understanding of the Organization 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, I will communicate to you and those charged with governance internal control related matters that are required to be communicated under professional standards. I may from time to time, and depending on the circumstances,use third party service providers in serving your account. I may share confidential information about you with these service providers, but remain committed to maintaining the confidentiality and security of your information. Accordingly, I maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, I will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and I will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that I am unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third-party service provider. Furthermore, 1 will remain responsible for the work provided by any such third-party service providers. Management Responsibilities You agree to assume all management responsibilities for the tax services and any other nonattest services I provide; oversee the services by designating an individual, preferably from senior management, with suitable skill, knowledge, 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; and for the preparation and fair presentation of the financial statements in conformity with U.S. generally accepted accounting principles. You are also responsible for making all financial records and related information available to me and for the accuracy and completeness of that information. You are also responsible for providing me 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 I may request for the purpose of the audit, and(3) unrestricted access to persons within the organization from whom I determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to me in the management representation letter that the effects of any uncorrected misstatements aggregated by me 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 me about all known or suspected fraud affecting the Organization involving (1) 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 me of your knowledge of any allegations of fraud or suspected fraud affecting the Organization received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring the Organization complies with applicable laws and regulations. You are responsible for the preparation of the supplementary information in conformity with U.S. generally accepted accounting principles. You agree to include my report on the supplementary information in any document that contains, and indicates that I have reported on, the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon. My fee for these services will be at my standard hourly rate and will not exceed $4,000. My standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. The audit will be completed within sixty days of the execution of this agreement. ,Five copies of the report will be submitted to the Town's Land Preservation Department. I appreciate the opportunity to be of service to you and believe this letter accurately summarizes the significant terms of my engagement. If you have any questions, please let me know. If you agree with the terms of my engagement as described in this letter, please sign the enclosed copy and return it to me. Very truly yours, D &0054 !R. RA41, George R. Rehn,CPA Certified Public Accountant RESPONSE: This letter correctly sets forth the understanding of Town of Southold Peconic Bay Community Preservation Fund Officer signature: 404ZJ Title: U (�.Q V'L S�1 Date: l RIDER REGARDING PAYMENT UNDER MUNICIPAL CONTRACTS The Town of Southold (hereinafter the "Town") shall pay George R. Rehn, CPA (hereinafter the "Contractor") upon the submission of a voucher at the appropriate time of billing. Such voucher shall be due and payable within 45 days after receipt of such voucher, but such sum shall not be due and payable by the Town until the Town Board of the Town has received such a voucher and has audited and approved for payment the voucher to be submitted by Contractor in connection therewith. The Town Board shall process any voucher received from Contractor as expeditiously as possible. In the event that the Town disputes or objects to any portion of any voucher submitted by Contractor pursuant to this paragraph, the Town shall, within 30 days of the receipt of such voucher, notify Contractor in writing of such dispute or objection. Contractor acknowledges that Contractor is familiar with the requirements of section 118 of the Town Law which, in effect, prohibit payment of any of Contractor's claims against the Town unless an itemized voucher therefore shall have been presented to the Town Board or Town Comptroller and shall have been audited and allowed by the Town Board or Town Comptroller. The acceptance by the Contractor of the payment shall be, and shall operate as a release to the Town from all claims and all liabilities to the Contractor for all the things done or furnished in connection with this work and for every act and neglect of the Town and others relating to or arising out of, this Contract, except Contractor's claims for interest upon the final payment, if this payment be improperly delayed. No payment, however final or otherwise, shall operate to release the Contractor or its sureties from any obligations under this Contract. REQUIRED PROVISIONS OF LAW Each and every provision of law and clause required by law to be inserted in this Contract shall be deemed to have been inserted herein. If any such provision is not inserted, through mistake or otherwise, then upon the application of either parry, this Contract shall be physically amended forthwith to make such insertion. In particular, the Contractor shall, among other things, fully comply with: (a) Labor Law section 220-e and Executive Law sections 291-299 and the Civil Rights Law relating to prohibition against discrimination and providing equal opportunity. (b) Affirmative action as required by the Labor Law. (c) Prevention of dust hazard required by Labor Law section 222-a. (d) Preference in employment of persons required by Labor Law section 222. (e) Eight-hour workday as required by Labor Law section 220(2). PREVAILING WAGE RATES REQUIRED BY LAW (a) The parties hereto, in accordance with the provisions of section 220(3) of the Labor Law, hereby agree that there shall be paid each employee engaged in work under this Contract not less than the wage rate and supplements set opposite the trade or occupation in which r he/she is engaged, which are the wage rates and supplements established as the prevailing rate of wages for the work covered by this Contract. (b) Labor classifications not appearing on the schedule of wages can be used only with the consent of the Owner and then the rate to be paid will be given by the Owner after being advised by the Department of Labor. (c) The Contractor shall post in a prominent and accessible place on the site of the work a legible statement of all wage rates and supplements, as specified in the Contract, for the various classes of mechanics,workingmen/women, or laborers employed on the work. I Dated: 'CONTRACTOR TOWN OF SOUMOLD By: � � By: G�1 George R.aRehn, CPA, Name:SCc+ A jR ,-&s ev— , Officer or Authorized Agent Title: SJ��fR.yl Sc��