2000-067 Agreement for Audit of FP&L Fees & TaxesC~
RESOLUTION 67-2000
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH,
FLORIDA, AUTHORIZING AND DIRECTING THE MAYOR AND VILLAGE CLERK TO
ENTER INTO A LETTER AGREEMENT WITH HARRIS, COTHERMAN, O'KEEFE &
ASSOCIATES, CERTIFIED PUBLIC ACCOUNTANTS, ATTACHED AS EXHIBIT "A", WH[CH
AGREEMENT IS FOR THE PURPOSE OF SECURING AUDIT SERVICES ON FRANCHISE
FEES AND UTILITY TAXES REMITTED BY FLORIDA POWER AND LIGHT TO THE
VILLAGE OF NORTH PALM BEACH, FLORIDA, FOR THE CALENDAR YEARS 1997, 1998
AND 1999; AND, PROVIDING FOR AN EFFECTIVE DATE.
BE IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA:
Section 1. The Village Council of the Village of North Palm Beach, Florida, does hereby
approve the letter agreement with Harris, Cotherman, O'Keefe & Associates, certified public
accountants, attached as Exhibit "A", which agreement is for the purpose of securing audit services
on franchise fees and utility taxes remitted by Florida Power and Light to the Village of North Palm
Beach, Florida, for the calendar years 1997, 1998, and 1999.
Section 2. The Mayor and Village Clerk are hereby authorized and directed to execute the
letter agreement with Harris, Cotherman, O'Keefe & Associates, certified public accountants, set
forth in Exhibit "A" for an on behalf of the Village of North Palm Beach, Florida.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED THIS 26th DAY OF OCTOBER, 2000.
(Village Seal) '
AY R
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ATTEST:
VILLAGE CLERK
EXHIBIT "A"
Harris Cothertnan,
O'Kee~e & Associates
Certified Public Accounanu
• 1870 Aloma Avenue,
Suite 120
Winter Park, Florida 32789
Tel 407.599.7055
FAX 407.599.7054
3150 Caedinal Drive,
Suite 200, Commonwealth Bldg.
Vero Beach, Florida 32963
Tel 561.2348484
FAX 561.2348488
Mr. Shaukat Khan
Finance Director
Village of North Palm Beach
501 US Highway 1
North Palm Beach, FL 33408
Deaz Mr. Khan:
10 Dogwood Trall,
Suite D
DeBary, Florida 32713
Tel 407b!>$3328
FAX 407.6683327
This agreement sets forth our understanding of the terms and conditions for providing
compliance audit services on franchise fees and utility taxes remitted by Florida Power
and Light to the Village of North Palm Beach, Florida for the three years ended
December 31, 1999, 1998 and 1997.
Time Line for Completing Work
Our time line assumes we will receive adequate cooperation from Florida Power and
Light. The following schedule sets forth the anticipated time period in which each task
you requested will be performed.
Task 1
Task 2
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October 31, 2000 -December 31, 2000
Make on-site visit to FPL offices. Work closely with FPL to obtain
information and accounting data necessary to complete the audits,
including on-site visits to the FPL facilities where records pertinent to
the operations are maintained. In addition, work closely with the
Village's Finance Department for internal data available.
January 1, 2001- January 31, 2001
Analyze Village revenues from franchise fees/utility taxes and revenues
reported by FPL. Review revenue accounts for all revenues earned by
FPL within the Village's jurisdiction. Determine if all revenue accounts
required by FPL meet the revenue base definition in the franchise
agreement utility tax ordinance and have been included in the
compilation. Provide a summary listing of revenue accounts wrongfully
excluded, along with justification for their inclusion in the Village's
fee/tax revenue base and the resulting underpayment of franchise fees
and/or utility taxes to the Village.
"Providing Vision and D$ection to our Clients"
Membrr AICPA liember AICPA DlvWao Far CPA Foemr NembunCPA
Peiwu ComgNU Practice Sec6oe
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®Hartl~ Cotherman,
O'Kee~'e & Associates
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Task 3 February 1, 2001- February 28, 2001
Review and evaluate methods and procedures used in the jurisdictional
coding of franchise fees/utility tax customers and test the accuracy of
customer coding in the customer database. The methods and procedures
used to maintain and update,the customer database will be reviewed for
adequacy and responsiveness.
Task 4 March 1, 2001- March 31, 2001
Report findings. Prepare and provide the Village aself-explanatory,
cross-referenced report supported by detailed work papers describing all
aspects of the audit, including any underpayment of franchise
fces/utility taxes, noncompliance with the requirements of the
agreements/ordinance, suggestions for improvement in existing or
future agreements.
Task 5 October 31, 2000 -March 31, 2001
Any other areas of analysis or study that we deem appropriate.
Fee and Billing
Our all-inclusive fee for performing these services is $15,1100. you will be billed in three
equal installments of $5,000 with the last invoice payable upon delivery of the final
report.
Your contact on this engagement will be Daniel J. O'Keefe, CPA. His phone number is
407-599-7055. If this meets with your approval, please sign below and return one copy of
this contract to us. Thank you for the opportunity to be of service to you.
Harris, Cotherman, O'Keefe & Associates
(Signature /Title)
C`~4n~;~"'t~
(Date)
D .fie eta
(Date)
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