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HomeMy WebLinkAboutRevenue Sharing Special Audit Letter DE L.AM U N.T VOTO & CO LTD., C ERTIFIED PUBLIC ACCOUNTANTS WHITE BEAR LAKE. MINNESOTA 58110 PHONE 426 -3263 i P. O. BOX 8678 January 30, 1974 Mr. Ken Heuer, Clerk City of Oak Park Heights Route #1 Stillwater, Minnesota 55082 Re: Revenue Sharing Special Audit Dear Mr. Heuer: _ In October or November of 1973, you received a booklet ( "Audit Guide and Statement for Revenue Sharing Recipient "). In that booklet, the Office of Revenue Sharing explains the special requirements of a Revenue Sharing Special Audit. They also indicate that they would prefer that you have an audit performed by your regular auditors rather than use Federal Auditors. The following are exerpts from that booklet and the letter of transmital: "It is the intention of the Secretary to rely to the maximum extent possible on audit of recipient governments by State` and local government auditors and independent public accoun- tants." "We think there are two reasons you may want to have your auditors follow the Audit Guide when they make an audit. First, it shouldn't cost much to add (have) a revenue sharing audit made when your normal auditing is being done, and this would let you know If your government is doing a good job in handling its revenue sharing responsibilities.. Second, if you have your auditors follow the Audit Guide we expect to accept their audit and not send our own auditors to go through your records again." We have reviewed the "Audit Guide and Standards for Revenue Sharing Recipients" and we are able to perform a Revenue Sharing Special Audit that should be accepted by the Office of Revenue Sharing in leiu of an audit by Federal Auditors. This audit will be made in accordance with the special requirements of the "Audit'Guide and Standards for Revenue Sharing Recipients ". This Revenue Sharing Special Audit will be in addition to your regular annual audit and we will issue a separate audit report and a separate set of financial statements which you may send to the Office of Revenue Sharing in compliance.,with the Revenue Sharing regulations.:. We will be able to perform th`f `Revenue Sharing Special Audit at the same time we perform your regular audit and there- by minimize the additional time and cost. a MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS .i�il January 30, 1974 Page 2 We recommend that you have performed at the time of your annual audit a Revenue Sharing Special Audit for the following reasons: (1) Compliance with the suggestions of the Office of Revenue Sharing. ? (2) Minimize audit costs by having this audit performed in conjunction with your regular annual audit. (3) Verification that your City has complied fully (in all material respects) with the requirements of the Revenue Sharing Law and Regulations. (4) Have the audit performed by -your auditors rather than by Federal Auditors. Because the Revenue Sharing Program is new and we have not had an opportunity to fully investigate your Revenue Sharing records, we are not in a position to know exactly what the cost of this audit will be. However, we estimate that the cost of this audit will be approximately $100.00 to $300.00. Our fee for this special audit will be billed in accordance with the same fee schedule as your annual audit. This cost is an allowable expenditure for Revenue Sharing purposes subject to the normal Revenue Sharing Rules and Regulations. If you should decide to have a Revenue Sharing Special Audit, please obtain an appropriate resolution from your Council and return a copy of this letter signed by your Mayor and other appropriate City Official. If you have any questions or would like to review this matter further, please do not hesitate to call. Kindest personal regards, DE LA HUNT VOTO s CO., LTD. Robert J. Voto, CPA DE LA HUNT VOTO & CO., LTD. You are hereby requested and authorized to perform a Revenue Sharing Special Audit in accordance with the "Audit Guide and Standards for Revenue Sharing Recipients" and under the terms described above. BY Z OIC (May Clerk Dater