Loading...
2007-011 Agrmt re Internal Audit Caler, Donten etc.RESOLUTION 2007-11 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, APPROVING A CONSULTING AGREEMENT WITH CALER, DONTEN, LEVINE, DRUKER, PORTER & VEIL, P.A. FOR EVALUATION OF THE VILLAGE'S PURCHASING AND CASH DISBURSEMENT POLICIES AND AUTHORIZING THE MAYOR AND VILLAGE CLERK TO EXECUTE SAME; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Village wishes to contract with the firm of Caler, Donten, Levine, Druker, Porter & Veil, to provide consulting services to the Village Audit Committee and Village Council with respect to the Village purchasing and cash disbursement policies. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA as follows: Section 1. The Village Council hereby approves the Consulting Agreement with Caler, Donten, Levine, Druker, Porter & Veil, a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference. Section 2. The Village Council authorizes the Mayor and Village Clerk to execute such agreement on behalf of the Village. "r..• Section 3. This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED THIS 25TH DAY OF JANUARY, 2007. (Village ~..alj ATTEST: `~ ~ `~~ VILLAGE CLERK =III CALEB, DONTEN, LEVINE, DRUKER, PORTER 8z VEIL, P.A. WILLIAM K. CALEB, JR., CPA LOUIS M. COHEN, CPA 7UHN C. COURTNEY, CPA, JD llAVID S. DONTEN, CPA SCOTT D. DRUKER, CPA, JD JAMES B. HUTCHISON, CPA• JOEL H. LEV[NE, CPA JAMES F. MULLEN, IV, CPA THOMAS A. PENCE, JR., CPA SCOTT L. PORTER, CPA MARK D. VEIL, CPA December 4, 2006 CERTIFIED PUBLIC ACCOUNTANTS 505 SOUTH FLAGLER DRIVE, SUITE 900 WEST PALM BEACH, FL 33401-5948 TELEPHONE (561) 832-9292 FAX (561) 832-9455 MEMBERS AMERICAN INSTITUTE OF CERTff'IED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS info@cdlcpa.com Honorable Mayor and Village Council Village of North Palm Beach 501 U.S. Highway One North Palm Beach, FL 33408 Thank you for the opportunity to meet with the Audit Committee on November 20, 2006 to discuss the consulting project regarding the purchasing and cash disbursements systems of the Village of North Palm Beach. This letter outlines our understanding of the terms and objectives of our engagement as discussed at that meeting. We will review and evaluate the Village's existing purchasing and cash disbursements policies, document our understanding of these systems as they currently function, and make recommendations to the Audit Committee and Village Council for ways to strengthen internal control and make these systems more effective and efficient, if possible. We would propose the following workplan: 1. Data Gathering a. Review existing purchasing and cash disbursements policies b. Interview Village staff -Manager, Finance staff, Department heads, and Department staff responsible for procurement (including Country Club staff) c. Review internal control questionnaire completed by Village staff 2. Document our understanding of policies, procedures and controls relating to purchasing and cash disbursements. Perform a walkthrough of the various types of purchasing transactions to determine if existing policies are functioning as explained to us. 3. Evaluate opportunities to gain efficiencies and strengthen internal controls over the purchasing and disbursements systems. 4. Prepare a draft report of recommendations a. Review with management b. Review with audit committee 5. Finalize our report and recommendations In performing these services, we will require time for your staff to meet with us, complete certain questionnaires, and provide copies of certain documents. The ultimate outcome of this project will be dependent upon the cooperation that we receive and the accuracy of the information the Village staff provides to us. Please note that our engagement cannot be relied on to disclose errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations that may exist. Furthermore, this consulting project is not designed to provide assurance on internal control. We will document the results of this engagement in a written report. You agree that this report will be used solely for the internal use of management, the Audit Committee, and the Village Council, and will not be distributed to outside parties. We do, however, recognize that any written report prepared by us is a public record, subject to inspection by members of the public upon request pursuant to Chapter 119, Florida Statutes (Florida Public Records Law). The goals, objectives, and recommendations presented in this report will be based on the Village's operations as they exist at the time of our engagement. If the Village's operations change in the future, the recommendations in our report might also need to be modified. However, we do not assume the responsibility for updating our report for such future events or circumstances that may occur subsequent to the date the report is issued. Please note that this engagement does not contemplate testing samples of historical transactions to determine compliance with existing internal controls, policies and procedures. Performing such procedures would be a separate agreed-upon procedures engagement with the scope of testing (number of items to test, attributes/controls to test, etc.) clearly defined by the Audit Committee and approved by the Village Council. We plan to start the engagement on or about April 1, 2007 and (unless unforeseeable problems are encountered) be completed by May 15, 2007. We estimate that our fee for this project will be between $7,500 and $9,000. Should we encounter unusual circumstances that would require us to expand the scope of the engagement, we will discuss this with you before doing the additional work. If, for any reason determined by us, we are unable to complete the services described above, we will not issue a report as a result of this engagement. Parties to this engagement agree that any dispute that may arise regarding the meaning, performance or enforcement of this engagement will be submitted to mediation upon written request of either party to the engagement. The party requesting mediation shall select the mediation provider from the list of mediation training providers approved by the Florida Supreme Court. The mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Association or such other rules as may be agreed upon by the parties. The results of this mediation shall not be binding upon either party. Costs of any mediation proceeding shall be shared equally by both parties. In order to induce us to accept this engagement, you therefore agree that our liability for any negligent errors or omissions in the performance of the engagement will be limited to the amount of our fees for this engagement. The workpapers for this engagement are the property of Caler, Donten, Levine, Druker, Porter & Veil, P.A. and constitute confidential information. However, we may be requested to make certain workpapers available to government agencies pursuant to authority given to it by law or regulation. If requested, access to such workpapers will be provided under the supervision of Caler, Donten, Levine, Druker, Porter & Veil, P.A. personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to government agencies. The government agencies may intend, or decide, to distribute the photocopies of information contained therein to others, including other agencies. In the event we are requested or authorized by you or required by government regulation, subpoena, or other legal process to produce our working papers or our personnel as witnesses with respect to our engagement for you, you agree, so long as we are not a party to the proceeding in which the information is sought, to reimburse us for our professional time and expenses, as well as the fees and expenses of our counsel, incurred in responding to such a request. This engagement letter reflects the entire agreement between us relating to the services covered by this letter. It replaces and supersedes any previous proposals, correspondence and understandings, whether written or oral. If any portion of this agreement is held to be void, invalid, or otherwise unenforceable, in whole or in part, the remaining portions of this agreement shall remain in effect. The agreements of the Village and Caler, Donten, Levine, Druker, Porter & Veil, P.A. contained in this engagement letter shall survive the completion or termination of this engagement. We sincerely appreciate the opportunity to be of service to you 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, ~~'~` ~ ~~ Mark D. Veil, CPA For the Firm RESPONSE: The services and terms set forth in this letter are agreed to by the Village of North Palm Beach. Officer signature: Title: //lIN ~~ ~..