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HomeMy WebLinkAbout2008 Deferred Compensation Audit Engagement Letter a f (ilf-- DOCUMENT TRANSMITTAL FORM (V , TO: RECORDS MANAGEMENT FROM: AL CARVILL TRANSMITTING DEPT: ACCOUNTING/FINANCE DATE DOCUMENT FILED WITH RECORDS MGM'T: MONDAY—September 8,2008 ' DOCUMENT DESCRIPTION: 2008— INDEPENDENT AUDITORS ENGAGEMENT LETTER , ' DEFERRED COMPENSATION AUDIT COMPLIANCY WITH GASB 45 DEPT CONTACT: AL CARVILL RETENTION PERIOD`: PERMANENT RENEWABLE DATE: N/A SCHEDULED DESTRUCTION: NONE - One (1) copy for archives • • SCIARABBA WALKER'° CERTIFIED PUBLIC ACCOUNTANTS BUSINESS CONSULTANTS September 2, 2008 Deferred Compensation Plan for Employees of Town of Ithaca 215 N. Tioga St. Ithaca,NY 14850 We are pleased to confirm our understanding of the services we are to provide for the Deferred Compensation Plan for Employees of Town of Ithaca for the year ended December 31, 2008. We will audit the statement of net assets available for benefits of the Deferred Compensation Plan for Employees of Town of Ithaca as of December 31,2008, and the-related statement of changes in net assets available for benefits for the year then ended. The objective of our audit is the expression of an opinion about whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit will be conducted in accordance with U.S. generally accepted auditing standards and will include tests of your accounting records and other procedures we consider necessary to enable us to express such an opinion. If our opinion is other than unqualified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to-express an opinion or to issue a report as a result of this engagement. Our procedures will include tests of documentary evidence supporting the-transactions recorded by the Plan. We will also request written representations from your attorneys as part of the engagement, and they may bill you for responding to this-inquiry. At the conclusion of our-audit, we will require certain written representations from you 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, our_audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and-perform the audit to-obtain,reasonable assurance about whether the financial statements are free of material misstatement, whether from error, -fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. Because an audit is designed to provide reasonable, but not absolute, assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform you of any material errors that come to our attention, and we will inform you of any fraudulent financial reporting or misappropriation of assets that comes to our attention. We will also inform you of any other violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. 200 East Buffalo Street,Suite 402 28 North Main Street Ithaca,New York 14850 Cortland,New York 13045 607-272-5550/607-273-6357(Fax) 607-756-0073/607-756-0052(Fax) www.sciarabbawalker.com Our audit will include obtaining an understanding of internal control sufficient to plan the audit and to determine the nature, timing, and extent of audit procedures to be performed. An audit is not designed to provide assurance on internal control or to identify reportable conditions, that is, significant deficiencies in the design or operation of internal control. However, during the audit, if we become aware of such reportable conditions,we will communicate them to you. You are responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsibility includes the establishment and maintenance of adequate records and effective internal controls over financial reporting,the selection and application of accounting principles, and the safeguarding-of assets. You are responsible for adjusting the financial statements to correct material misstatements and for confirming to - us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the company involving (a) management, (b) employees who have significant roles in internal control, and (c) others where the fraud could have a material effect on the financial statements. You are also responsible for informing us of your knowledge of any allegations of fraud or suspected fraud affecting the company received in communications from employees, former employees, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws and regulations. We will schedule the audit at mutually agreeable dates, which will include fieldwork prior to and after December 31, 2008. Our engagement fee for these services will be $6,000. The fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will keep you informed of any problems we encounter and our fees will be adjusted accordingly. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. We 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, -- - 4/... A/ CQ. X xP Certified Public Accountants `Mt 30 -r . A � RESPONSE: - This letter correctly sets forth the understanding of the Deferred Compensation Plan for Employees of Town of Ithaca Print Name Ai. C 4L 1,L, Signature. Uoget 0f1 Title: 1C9r Date: 2,0Deffl