Res No 178-96-9932r
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-9932
RESOLUTION NO. 178 -96 .__.,...W
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF SOUTH MIAMI, FLORIDA, RELATING TO FINANCE; AUTHORIZING
THE INTERIM CITY MANAGER TO ENGAGE THE CITY'S ACCOEXTANT ,
SHARPTON , BRUNSON & COMPANY, FOR AN AMOUNT NOT TO EXCEED
$16,000 TO EVALUATE THE EFFECTIVENESS OF THE CITYrS
INTERNAL CONTROL SYSTEM; CMRGING THE COST TO ACCOUNT NO.
01- 21.0 0 � 5 51.0 ; PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Mayor and City Commissi
Tn on of the City of 9013th
Miami desire to engage the City's accountant, �harpton, Brunson &
Company, to evaluate the effectiveness of the City's internal
control system.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI, FLORIDA
Section 1, The
directed to engage the
interim City Manager is authorized. and
City's accountant, Sharpton, r3runson &
Company, to evaluate the effect
control system,
pursuant to the
iven.e s s of
accountant
the City's internal
' s October
proposal, a copy of which is annexed to this Resolution,
and materials basis for an amount not two exceed $16,000.
shall be charged to Account No. 01�2100- 5510.
10, 1996
can a t a. me
The cost
Section 2. The accountant shall perform such tests as will
p
rov We a reasonable bas' tar evaluating the effectiveness of the
city's internal controls. The adt�lin.' s L r dL icari shall provide such
basic information that the accountant requests for the examiiia L ioii .
The administration will assure that the information it provrides is
accuratc and complctc. The accountant shah, render its report to
the City Commission and shall maintain its profc3sional
independence in this engagement, The report stall be rendered
within 30 days, unless additional time is required because of
�.ncompleterYess of the inf ormation requested car other reasons not
attributable to the accountant.
f inpxam • 1: e. s
Page 2
of Res. #I78 -96 -9932
Section 3. 'i,his resolution 8iiall tike *effect immediately
upon
approval.
PASSED AND ADOPTED Gfiis 15th
day of October, _ 1996.
'WTEST :
APPROVED;
CITY
C1,ERK
MAYOR
READ
AND APPROVED AS TO FORM:
COMMISSION VOTE:
5 -0
Cunningham:
Yea
CITY
ATTORNEY
Vice
Vice mayor Robaina;
Yea
Commissioner Price;
Yea
Commissioner Bethel:
Yea
Commissioner Young:
Yea
t it exam . res
AdNIONL
ANEM CITY OF SOUTH MIAMI
INTER-OFFICE MEMORANDUM
To Mayer and City Com' n.
]dates October 11, 1996
lur
From: Earl cam Gallop
Re: Review of internal
control
This
memorandum recommends that the city Commission
authorize
the City
Manger to engage
the city's independent
accountant,
Sharpton,
Brunson & Company,
P.A., try examine, test
and evaluate
the 'pity's
internal control
structure.
CC: L. Dennis Whitt, Interim City Manager
Hakeem oshikoya, Finazic:e Director
enc��urr�
c sm\ memos'\ f inexam . mem
Sharpton,Brunson P.A.
(.'L1�'I'IPIP 1'1 T't�3LIC, t�LCt7L'N''I'ANTS
T TTTT D AVRNT;T . STTTE 2 *100 NTTAMT, +1. 3:ONI4, CTTTTTA ; I1:T1
T14,3.,r,NE ION1�;. jslWi) .' 7-1••1 i7.1 i VAC'MU ►'[I1 E.. (30,ri) :372.8161
October 9, 1996
CITY OF SOUTH MIAMI
c/o Earl Gallop, City Attorney
6130 Sunset Drive
South Miami, Florida 33143
Dear Mr. Gallop:
ONE EAST BF43WARD ROV.1r;iV ' I I io ! v'owr LAUDERDALE, FL 33301
TELEPHONE: (954) 467=54901 FACStML& (954) 467 -6184
EmMAiL: SBCOENETRUNNER NET
We are pleased to confirm our understanding of the services we are to provide for the City
of South Miami, Florida.
We will examine management's assertion regarding the effectiveness of the internal control
structure over financial reporting (internal control structure) of the City of South Mimi,
Florida as of September 30,1996. Our examination will be conducted in accordance with
standards established by the American Institute of Certified Public Accountants and,
accordingly, will include obtaining an understanding of the internal control structure, testing
and evaluating the design and operating effectiveness of the internal control structure, and
such other procedures as we consider necessary to enable us to express an opinion about
whether management's assertion is fairly stated, in all material respects, in conformity with
the specified control criteria. It our opinion is other than unqualified, we will fully discuss
the reasons with you in advance. If, for any reason, we are unable to complete the
examination, we will not issue a report as a result of this engagement.
Because of inherent limitations in any internal control structure, errors or irregularities may
occur and not be detected. Also, projections of any evaluation of the internal control
structure to future periods are subject to the risk that the internal control structure may
became inadequate because of changes in conditions, or that the degree or compuance
with the policies or procedures may deteriorate. However, during the examination, if we
became aware of reportable conditions which are significant deficiencies in the design or
operation of the internal canfir�l structure, we will communicate them to you in a separate
letter.
We understand that you will present your assertion about the effectiveness of the internal
control structure in a written report. You are responsible for establishing and maintaining
an effective internal control structure, as well as evaluating the effectiveness of that
structure. We may advise you about appropriate criteria or assist in the development of
the assertion, but the responsibility for the assertion remains with you. At the conclusion
of our examination, we will request certain written representations from you about the
effectiveness of the internal control structure and related matters.
o 1
Sharpton, Brunson & Company
We understand
examination and
P.A.
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Page Two
that you will provide us with the basic information required for our
that you are responsible for the accuracy and completeness of that
information.
We expect to begin our examination approximately within two weeks following the
appropriate approval of the City. Our fees for these services will be based on the actual
time spent at our standard hourly rates, plus travel and other out -of- pocket costs such as
report production, typing, postage, etc. Our standard hourly rates vary according to the
degree of responsibility involved and the experience level of the personnel assigned to
your examination.
Based on our preliminary estimate
ss
,
tini
$16,000 for the examination. The estimate
personnel and t
I based on an
he fee should approximate
gated cooperation from your
he assumption that unexpected circumstances will not be encountered
during the examination. If significant additional time is necessary, we will
you and arriv
Sincerely,
MU1,11RUCS
ro
AB:sr
4284
e at a new fee estimate before we incur the additional costs.
RUNSON &COMPANY, P.A.
son
discuss it with
c
r
I
9
0
eND
Sh
.I tom Brunson tz
C.ompany, P . A.
.,..�
' '' '� :?! .. . . - •?: !I �1It. FI7FIf :
SO
Independent Auditors' Report on Internal Control Structure
iii Accord .4nee with Government Auditing Standards-
To the Honorable Mayor, City Commission and City Martager
City of South Miami, Florida
We have audited the genera3 purpose financial statements of City of South "ami, Florida, as of and
for the year ended September 30, 1995, and have issued our report thereon dated December 29,
19959
We conducted our audit in accordane wi
c th generally accepted auditing standards and Government:
Auditing Standards, issued by the Comptroller Genera of the Ututed Stares. Those standards require
that we Dian ano per. rm the audit to obtain reasonable assurance about whether the s eneral purpose
financial statements are free of material true sstaternent.
The management of the City of South Miami, Florida is responsible for establisning and maintaining
an internal control structure. In fulfilling this responsibility, estimates and ,judgments by management
are required to assess the expected benefits and related costs of internal control structure policies and
bjeetiwes of an it',terrial control structure are to provide managemcrit with
proccd:ares. The o
reasonable, but not absolute, assurance that assets are safeguarded asainst loss from unauthorized
An
use or disposition, and that transactions ate executed ia accordance with management's authorization
and recorded properly to pcnnit the preparation of general purpose financial statements in accordance
Frith generally accepted accounting principles, Because ofinherent limitations in anv internal control
structure, errors or irregularities may neverthOcss occur and not be detected. Also, projccuon of any
evaluation of the structure to future periods is subject to the risk that procedures may become
inadequate because of changes in conditions of that the effectiveness of the design arid operation of
policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements of City of South
Miami, Flo: da for the ; Gar ended September 3o, 1 995, we obtained an understartditzg of'the internal
control stpicture. With respect to the internal control structure, we obt.alned an understanding of, the
dcSign of relevant }policies and procedures and whether they have been placed in operation, and we
assessed control risk in order to determine our' auditing procedures for the pur ose of expressing oui-
gp p p
opinion on the general purpose financial statements and not to provide an opinion on the internal
control structure. Accordingly, we do not express such an opinion.
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`ompany,
Brunson
M i♦
Our consideration of the internal control structure would not necessarily disclose all mattar$ is the
internal control structure that might bc m$terial weaknesses under standards established by the
American lrist�tute of Certified Pubic Aocovntants, A rn�terisi weakness is a conditlpn in which the
design or operation of one or more of the specific j nternmd control structure elements dies not reduce
to a rclecively low level the risk that errors and irregularities in amounts that would be material in
relation to the Scr,erat purpose Fnancia� statements being audited may occur and not be detected
withit'► a timely period by employees ip the ngrmW course of performing their asstsned fun�etiCsns. We
noted n rn�tters involving tha internal control stricture and its operati no ons that we consider to be
matetial weaknesses as defined above.
Nowever, we noted cenain maters involving the internal control structure and its o oration t1lat we
have reported to the management of City of South Mianu, Florida included in the aces .
•�rr�panying
summary of recommendations to Improve internal accountin Controls.
This report is intended for the inforr atlOh of the Honorable , aria or City Commission and Ci y - t�
Manner. However, this report �s � r�natLer of pub;ie record and hs dIStrihut�on is not Jirnitcd.
December 29, ] g95
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