Fort Walton Beach Council agenda — 03-19-12--special--audit — reading text

financial statements. We have applied certain limited procedures to the information to include inquiries of management and comparing the information for consistency to the basic financial statements. We do not express an opinion or provide any assurances on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide assurance. The Introductory and Statistical sections have not been subjected to auditing procedures and we do not express an opinion or provide 1 any assurances on them. Consultation with Other Accountants 1 In some cases, management may decide To our knowledge, there were no such to consult with other accountants about consultations with other accountants. auditing and accounting matters, similar to obtaining a " second opinion' on certain situations. If a consultation 1 involves principle application to the of an City' s accounting financial statements or a determination of the 1 type of auditors opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. 1 Page 15  Fraud and Illegal Acts We are required to communicate any fraud No such matters came to our attention or illegal acts that we became aware of during our audit. during the audit. Significant Difficulties Encountered During the Audit We encountered no difficulties in dealing The auditor should inform those charged with with management in performing and governance of any difficulties encountered in completing our audit. Management of the dealing with management related to the City did a commendable job in preparing for performance and completion of the audit. the audit. They prepared the requested schedules and documents in a timely manner and were available for questions at all times. Representations Requested From Management The auditor is required to inform those The letter was signed by the City Manager charged with governance that certain and Finance Director follows this summary. representations are being requested from management in connection with the audit. Independence We communicate, at least annually, to the We are not aware of any relationships audit committee any independence between Warren Averett, LLC and the City concerns or issues. that may be reasonably thought to bear on our independence. Page 16 i  Client Representation Letter City of Fort Walton Beach Awerdce' r Moae Beaw!/ LI Bew'hes =- - InlMirmde Srnp Prulos "S% - Fart Wahon 9each. rl i2in a5011133- 9s00• F. JIM1a33. 9M0• y www.fall.on, March 5. 1013 Warren Avaetl. LLC. 45 Eglin Parkway NE. Suite 301 Fort Walton Beach. Florida 32M7 We are providing this letter in camteclion with your audins) of 1M financial statements of City of Fan Walton Beach. Florida ( the City) as of September 30. 2012 am far the year than erNed for the purpose of expressing opinions as m whether the Financial statements present fairly, in all material rapists, the rnpective finattcill position . 1" s, gnvemmental activities, the business -type activities, each major Potts, and the uggtettAW remaining fund information of the City and the respxltve changes in Inimical position and. when, applicable. oath t3ows thereof in mulonnity, with IJ. S. gencrally acceptad accotmOng principles- We mutant that we are respo r thle In the fair pesmtmion of the previomly mentioned financial statement in confo rnity with U. S. generally acrepad accumting principles. We are also responsible for adopting sound xcuuming policies, establishing am maintaining effective unman comml aver Fliounced repaving, and preventing am detecting fromud. we courim, to the hest of Our knowledge am het ivf. as of March 4. 2013, the following repesenmtinns made m you during your audit(.). L The fou.. l smtcmcnts referred to above are fairly presented in conformity with U. S. generally accepd uernating principles and include all properly classified fiords and ants Financial infaroolion of the proton) government end all nmpatent units required by generally accepted atemonting principles In be included in the financial repsviltg emity. 2. Wehavemadeavailabletoywall- a. Fimnclal records and related dam am all audit or relevant monlnaing reports. if any, received fi an fuming swnes, In. Minuses of the meetings of sM City of Fora Walton Much Louncil or wi la Of aetlam of regent meetinps for whkh minutes have not yet been prepared. 3. There have been no communications form regulatory agencies mrserning roncampllame with. or deficiencies in. t3mndnl reporting practices. 4. There are an material transactions that have not Men properly recorded in the accutmttng records underlying IM financial smtements. 5. Weare in agreement with the adjustingjoumal mines you have proposed. and they loocbsxn posted. 6. We acknowledge out responsibility for the design and implememalion of programs am conhols 10 prevent and detect fraud. Page 17 1  Warren AvemR, LLC March 5. 2013 Page 2 7, We base nokam ledW of mo Imndasm , st Bad aRedinglM emit) involving: a, Management. I, Employees who have significant rates in internal control, in c. others where the Baud could have a material effect on the financial sminnents . g. We have aO kmnwedge of cry ollegaliars of fraud or uyxcied fraud alfrelkig the Bulk) received in unmmunica1i9m from employees. former emPlo) ees, muolyns regulmas, av dhet. 9. We have. peaces Wl. ko, nwasmsudnfndiuugsund revnmwndalinm. t0. We have id craifred 10 you any prcvio c audits. attestation engagements, and Other studies releled M the audit olijimlives and ob lbe, related mnrttmendaiat have been implemented. IL We have provided our views on reported findings, cdslusimu, will recommendations. as well as our planned cmtective remain, for the report. 12. The City has no plans a intentions that may materially affect the rem me value or ctassifica( lon of meets, liabiliti, a equity. 13. The hollowing. if any, have sco, pn,perly meorded or disclosed in the fro neW slatemems: a. Reload pan, Imnmctions, including revenues. nspembol s'espe^ ses, loam, hanofms, leasing arrangements, and gstaantees. and amount mcivable fran or parable to " head Dies. b. Guarantees, whether walllenor oral. undo which the Cb) , amlingcnlly liable. c. All accounting esimates that could be material 10 the ILtancal slaements, including IM key fntors and significant assumptions underlying those estimates and measurements. We believe the estimates and mrasurcn¢mis are reasmnblc in IM circumstances. Ia. We am responsible for compliance with the laws, regulations and Provisions of contract' and gran agreements applicable to as. including tax or debe limits and debt contracts; and we have identified and diwloxvt m you all laws. regulations and provislam of commds and grant agreement that we believe have a direct and material cffcet at it. demann1nafion of finaMtil Smammlll atlaalts Of most flnarlelal dam significant to the audit objectives including legal and contractual provisions for ceptning specifte+cticams in separate funds. 15. There are no-- a Violas ions or possible violations of budget adinmwes, laws and regulations ( including these pertaining tO adopting. approving. and amending budgets) provisions of contract and grant agrmormar, , tar a debt limit. and any related debt oncounts %lase efecb should he mm tiered for disclosure in the limaial smtement, or as a buis fm receding a loss euotmanowl. - 1 11 reporting on noncompliance w K Unasserted claims a assessments than w1 la %yet has advb d as art probable of . eversion and 111" he disclosed in accurdace with gerwmlly acccged acumntiae primiples. r c. Other liabilities or gain or loss contingencies that arc required In be accmtd or disclosed by generally acctpted aecamting principles. wa Page 18  Warren Avetcu. LI March S. 2011 Page 3 16. As pan of your audit, you assisted with preparation of the financial statements and related noes. We base deslgnmed an individual with suitable skill. kacnvledge, or experience to oversee your services and have made all memgement decisions and performed all management furetioner. We have reviewed. approved. and accepted responsibility for those Rmireid statements and related notes. 17. The City has svishacher, title to all owned assets, and there arc no liras or rnc. o banes on such assets nor has any assn been pledged m collateral, that would have a material effect on the 19. The Ciry has