05-1604 Audit Services Renewal - Laserfiche WebLink

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City of Casselberry June 13,2005 Page 3 Identifying and ensuring that the City complies with laws, regulations, contracts, and agreements (including grant agreements), is the responsibility of management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatements, the Auditor will perform tests of the City's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of their audit will not be to provide an opinion on overall compliance and they will not express such an opinion. The audit will be conducted in accordance with the standards referred to in the second paragraph. OMB Circular A-133 and the Florida Single Audit Act requires that the Auditor plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. Their procedures will consist of the applicable procedures described in the OMB's and Florida's compliance supplements. The purpose of these procedures will be to express an opinion on the City's compliance with requirements applicable to major federal programs and state projects. The Auditor's procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. They will request written representations from attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of their audit, they will also require certain written representations from management 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, these audits will involve judgement about the number of transactions to be examined and the areas to be tested. The Auditor will plan and perform the audits to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. As required by the Single Audit Act Amendments of 1996 and OMB Circular A-133 and the Florida Single Audit Act, the audits will include tests of transactions related to federal award programs and state financial assistance projects for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Because of the concept of reasonable assurance and because the Auditor will not perform a detailed examination of all transactions, there is a risk that a material misstatement may exist and not be detected by them. In addition, an audit is not designed to detect errors, fraud, or other illegal acts that are immaterial to the financial statements or to major programs or state projects. However, the Auditor will inform the governing body or audit committee of any material errors and any fraud that comes to their attention. The Auditor will also inform the governing body or audit committee of any other illegal acts that come to their attention, unless clearly inconsequential. The Auditor will include such matters in the reports required for a Single Audit. Their responsibility, as auditors, is limited to the period covered by