Hoyman Dobson FY '01-'05 .'11A p... HO.
O.YMAN, DOBSON COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
i 11111 I.Ilikatl
215 Baytree Drive, Melbourne, Florida 32940, 321-255-0088, Fax 321-259-8648, www.hoyman.com
Charles W Hayman, Jr.
Barbara J. Oswalt
Thomas L. Kirk
Karen E. Kirkland
Deborah A. Bradley
DIRECTOR EMERITUS
Roger W Dobson
Eugene K. Blerning
August 22, 2001
Mayor and Commissioners
City of Okeechobee, Florida
55 S.E. Third Avenue
Okeechobee, Florida 34974
Dear Mayor and Commissioners:
We are pleased to confirm our understanding of the services we are to provide the City of Okeechobee,
Florida for the years ending September 30, 2001, 2002, 2003, 2004, and 2005. We will audit the financial
statements of the City of Okeechobee, Florida as of and for the years ending September 30, 2001, 2002,
and 2003, with the option to audit the City's financial statements for each of the two subsequent fiscal
years. We understand that the financial statements for the years ending September 30, 2001, 2002, and
2003 will be presented in accordance with the financial reporting model in effect prior to that described in
GASB Statement No. 34 and that the financial statements for the years ending September 30, 2004 and
2005 will be presented in accordance with the financial reporting model described in GASB Statement
No. 34. Also, the document we submit to you will include the following additional information that will
be subjected to the auditing procedures applied in our audit of the financial statements
1. General Fund Schedule of Revenue Budget and Actual
2. General Fund Schedule of Expenditures Budget and Actual
3. Combining Statements of Plan Net Assets and Change in Plan Net Assets
The document will also include the following additional information that will not be subject to the
auditing procedures applied in our audit of the financial statements, and for which our accountant's report
will disclaim an opinion.
1. Pension Trust Funds Required Supplementary Information
2. Summary of Insurance Coverage
3. Selected Statistical Information Schedule of Assessed Values, Tax Levies, and Rates;
Schedule of Certain Revenue
..p r Y. 4 1E lY lRidr11111' 11'11 111 111 i
American Institute of Certified Public Accountants Florida Institute of Certified Public Accountants SEC Practice Section of the A CPAmerica International
Mayor and Commissioners
City of Okeechobee, Florida
Page Two
Audit Objectives
The objective of our audit is the expression of an opinion as to whether your financial statements are
fairly presented, in all material respects, in conformity with accounting principles generally accepted in
the United States of America and to report on the fairness of the additional information referred to in the
first paragraph when considered in relation to the financial statements taken as a whole. Our audit will be
conducted in accordance with auditing standards generally accepted in the United States of America, the
standards for financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States, and the Rules of the Auditor General of the State of Florida, and will
include tests of the accounting records of the City of Okeechobee, Florida and other procedures we
consider necessary to enable us to express such an opinion. If our opinion on the financial statements is
other than unqualified, we will fully 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.
We will also provide reports (that do not include opinions) on internal control related to the financial
statements and compliance with laws, regulations, and the provisions of grant agreements, noncompliance
with which could have a material effect on the financial statements as required by Government Auditing
Standards.
Management Responsibilities
Management is responsible for establishing and maintaining internal control and for compliance with
laws, regulations, contracts, and agreements. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of the controls. The objectives
of internal control are to provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, that transactions are executed in
accordance with management's authorizations and recorded properly to permit the preparation of
financial statements in accordance with generally accepted accounting principles.
Management is responsible for making all financial records and related information available to us. We
understand that you will provide us with such information required for our audit and that you are
responsible 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. That responsibility includes the
establishment and maintenance of adequate records and effective internal control over financial reporting,
the selection and application of accounting principles, and the safeguarding of assets. Management is
responsible for adjusting the financial statements to correct material misstatements and for confirming to
us in the 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.
Mayor and Commissioners
City of Okeechobee, Florida
Page Three
Audit Procedures General
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. We will plan and perform the audit to obtain reasonable rather than
absolute assurance about whether the financial statements are free of material misstatement, whether
caused by error or fraud. 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 (whether caused by errors or fraud) or illegal acts may exist and not be detected by us. In
addition, an audit is not designed to detect immaterial misstatements, immaterial illegal acts, or illegal
acts that do not have a direct effect on the financial statements. However, we will inform you of any
material errors that come to our attention and any fraud that comes to our attention. We will also inform
you of any illegal acts 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 matters that might arise
during any later periods for which we are not engaged as auditors.
Our 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. We will 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
also require certain written representations from you about the financial statements and related matters.
Identifying and ensuring that the City of Okeechobee, Florida complies with laws, regulations, contracts,
and agreements is the responsibility of management. As part of obtaining reasonable assurance about
whether the financial statements are free of material misstatement, we will perform tests of the City of
Okeechobee, Florida's compliance with applicable laws and regulations and the provisions of contracts
and agreements. However, the objective of our audit will not be to provide an opinion on overall
compliance and we will not express such an opinion.
Audit Procedures Internal Controls
In planning and performing our audit, we will consider the internal control sufficient to plan the audit in
order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing
our opinion on the City of Okeechobee, Florida's financial statements.
We will obtain an understanding of the design of the relevant controls and whether they have been placed
in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness
of certain controls that we consider relevant to preventing and detecting errors and fraud that are material
to the financial statements and to preventing and detecting misstatements resulting from illegal acts and
other noncompliance matters that have a direct and material effect on the financial statements. Tests of
controls are required only if control risk is assessed below the maximum level. Our tests, if performed,
will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no
opinion will be expressed.
Mayor and Commissioners
City of Okeechobee, Florida
Page Four
An audit is not designed to provide assurance on internal control or to identify reportable conditions.
However, we will inform the governing body or audit committee of any matters involving internal control
and its operation that we consider to be reportable conditions under standards established by the
American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our
attention relating to significant deficiencies in the design or operation of the internal control that, in our
judgment, could adversely affect the entity's ability to record, process, summarize, and report financial
data consistent with the assertions of management in the financial statements.
Audit Administration, Fees, and Other
We understand that your employees will prepare all cash or other confirmations we request and will
locate any invoices selected by us for testing.
The workpapers for this engagement are the property of Hoyman, Dobson Company, P.A. and
constitute confidential information. However, we may be requested to make certain workpapers available
to regulatory agencies pursuant to authority given to them by law or regulation. If requested, access to
such workpapers will be provided under the supervision of Hoyman, Dobson Company, P.A.
personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to regulatory
agencies. The regulatory agency may intend, or decide, to distribute the photocopies or information
contained therein to others, including other governmental agencies.
Our fees for these services will be $48,000 ($18,000 per year) for the three -year contract, including travel
and other out -of- pocket costs such as report production, typing, postage, etc. The estimated cost for the
two -year option period will be $36,000 ($18,000 per year). 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 discuss it with you and
arrive at a new fee estimate before we incur the additional costs. Our invoices for these services will be
rendered each month as work progresses and are due upon presentation. 4 P.,2
e
30 dayc will bo considered delinquent and will be subject to an interest charge of 1% per month (annual
percentage rate of 1 _20!). Should it appear we would be required to perform any services your personnel Sk a I
have been assigned, to allow for an efficient and timely engagement, or if we see areas where the task a
undertaken is not as anticipated, we will consult with you to determine if our firm or your staff will take
the action necessary to complete the assignment. We will provide a supplemental service agreement
(Appendix A) for your signature and authorization if we are requested to complete any supplementary
services.
The fee quoted above does not include any additional costs associated with performing an audit in accordance
with the Federal Single Audit Act of 1996 and/or the Florida Single Audit Act. Should the City of
Okeechobee, Florida become subject to the audit requirements of the Federal or State Single Audit Acts in
any year, we would request a supplemental services agreement to cover the costs associated with performing
an audit in accordance with these Acts.
It is our understanding that the financial statements of the City of Okeechobee, Florida include employee
pension trust funds which are audited by other auditors and that their report will be provided to us in a
timely manner in order for us to issue our report prior to March 29 each year. Our opinion on the
financial statements will be based upon our audit and the report of the other auditors.
Mayor and Commissioners
City of Okeechobee, Florida
Page Four
An audit is not designed to provide assurance on internal control or to identify reportable conditions.
However, we will inform the governing body or audit committee of any matters involving internal control
and its operation that we consider to be reportable conditions under standards established by the
American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our
attention relating to significant deficiencies in the design or operation of the internal control that, in our
judgment, could adversely affect the entity's ability to record, process, summarize, and report financial
data consistent with the assertions of management in the financial statements.
Audit Administration, Fees, and Other
We understand that your employees will prepare all cash or other confirmations we request and will
locate any invoices selected by us for testing.
The workpapers for this engagement are the property of Hoyman, Dobson Company, P.A. and
constitute confidential information. However, we may be requested to make certain workpapers available
to regulatory agencies pursuant to authority given to them by law or regulation. If requested, access to
such workpapers will be provided under the supervision of Hoyman, Dobson Company, P.A.
personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to regulatory
agencies. The regulatory agency may intend, or decide, to distribute the photocopies or information
contained therein to others, including other governmental agencies.
Our fees for these services will be $48,000 ($18,000 per year) for the three -year contract, including travel
and other out -of- pocket costs such as report production, typing, postage, etc. The estimated cost for the
two -year option period will be $36,000 ($18,000 per year). 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 discuss it with you and
arrive at a new fee estimate before we incur the additional costs. Our invoices for these services will be
rendered each month as work progresses and are due upon presentation. O
ei
Should it appear we would be required to perform any services your personnel
have been assigned, to allow for an efficient and timely engagement, or if we see areas where the task
undertaken is not as anticipated, we will consult with you to determine if our firm or your staff will take
the action necessary to complete the assignment. We will provide a supplemental service agreement
(Appendix A) for your signature and authorization if we are requested to complete any supplementary
services.
The fee quoted above does not include any additional costs associated with performing an audit in accordance
with the Federal Single Audit Act of 1996 and/or the Florida Single Audit Act. Should the City of
Okeechobee, Florida become subject to the audit requirements of the Federal or State Single Audit Acts in
any year, we would request a supplemental services agreement to cover the costs associated with performing
an audit in accordance with these Acts.
It is our understanding that the financial statements of the City of Okeechobee, Florida include employee
pension trust funds which are audited by other auditors and that their report will be provided to us in a
timely manner in order for us to issue our report prior to March 29 each year. Our opinion on the
financial statements will be based upon our audit and the report of the other auditors.
Mayor and Commissioners
City of Okeechobee, Florida
Page Five
Additional Single Audit Requirements (if applicable)
The document we submit to you will include the following additional information that will be subject to the
auditing procedures applied in our audit of the general purpose financial statements:
Schedule of Expenditures of Federal Awards and State Financial Assistance
Single Audit Additional Audit Objectives
The objective of our audit will also include reporting on internal control related to major programs and an
opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts
or grant agreements that could have a direct and material effect on each major program in accordance
with the Single Audit Act Amendments of 1996, OMB Circular A -133, Audits of States, Local
Governments, and Non Profit Organizations, and the Florida Single Audit Act.
The reports on internal control and compliance will each include a statement that the report is intended for
the information and use of the audit committee, management, specific legislative or regulatory bodies,
federal awarding agencies, and if applicable, pass through entities.
Our audit will also be conducted in accordance with the Single Audit Act Amendments of 1996; the
provisions of OMB Circular A -133; and the Florida Single Audit Act and will include a determination of
major program(s) in accordance with Circular A -133 and the Florida Single Audit Act and other
procedures we consider necessary to enable us to express such an opinion and to render the required
reports. If our Single Audit compliance 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 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.
Single Audit Additional Management Responsibilities
In addition, management is responsible for establishing and maintaining internal control and for
compliance with the provisions of grants. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of the controls. The objectives
of internal control related to federal and state awards are to provide management with reasonable, but not
absolute, assurance that federal and state award programs are managed in compliance with applicable
laws and regulations and the provisions of contracts and grant agreements.
We will assist in the preparation of the schedule of expenditures of federal awards and state financial
assistance, but the responsibility for the schedule remains with you. That responsibility includes the
establishment and maintenance of adequate records and effective internal control over compliance.
Additionally, as required by OMB Circular A -133 and the Florida Single Audit Act, it is management's
responsibility to follow up and take corrective action on reported audit findings and to prepare a summary
schedule of prior audit findings and a corrective action plan.
Mayor and Commissioners
City of Okeechobee, Florida
Page Six
Single Audit Additional Audit Procedures General
As required by the Single Audit Act Amendments of 1996, OMB Circular A -133, and the Florida Single
Audit Act, our audit will include test of transactions related to major federal and state awards programs
for compliance with applicable laws and regulations and the provisions of contracts and grant agreements.
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 noncompliance may exist and not be
detected by us. In addition, an audit is not designed to detect immaterial misstatements, immaterial illegal
acts, or illegal acts that do not have a direct effect on major programs. However, we will inform you of
any material errors that come to our attention and any fraud that comes to our attention. We will also
inform you of any illegal acts that come to our attention, unless clearly inconsequential. We will include
such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the
period covered by our audit and does not extend to matters that might arise during any later periods for
which we are not engaged as auditors.
Single Audit Additional Audit Procedures Internal Control
In planning and performing our audit, we will also consider the internal control sufficient to plan the audit
in order to determine the nature, timing, and extent of our auditing procedures for the purpose of
expressing our opinion on the City of Okeechobee, Florida's compliance with requirements applicable to
major programs.
As required by OMB Circular A -133 and the Florida Single Audit Act, we will perform tests of controls
to evaluate the effectiveness of the design and operation of controls that we consider relevant to
preventing or detecting material noncompliance with compliance requirements applicable to each major
federal and state award program. However, our tests will be less in scope than would be necessary to
render an opinion on those controls and, accordingly, no opinion will be expressed in our report on
internal control issued pursuant to OMB Circular A -133 and the Florida Single Audit Act.
An audit is not designed to provide assurance on internal control or to identify reportable conditions. In
addition to informing the governing body or audit committee of any matters involving internal control and
its operation that we consider to be reportable conditions under standards established by the American
Institute of Certified Public Accountants, we will also inform you of any nonreportable conditions or
other matters involving internal control, if any, as required by OMB Circular A -133.
Single Audit Additional Audit Procedures— Compliance
Our audit will be conducted in accordance with the additional standards referred to in the section titled
Audit Objectives. As part of obtaining reasonable assurance about whether the financial statements are
free of material misstatement, we will perform tests of the City of Okeechobee, Florida's compliance with
applicable laws and regulations and the provisions of contracts and agreements, including grant
agreements. However, the objective of those procedures will not be to provide an opinion on overall
compliance and we will not express such an opinion in our report on compliance issued pursuant to
Government Auditing Standards.
Mayor and Commissioners
City of Okeechobee, Florida
Page Seven
OMB Circular A -133 and the Florida Single Audit Act require that we also 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. Our procedures will
consist of the applicable procedures described in the OMB Circular A -133 Compliance Supplement and
the Florida Single Audit Act for the types of compliance requirements that could have a direct and
material effect on each of the City of Okeechobee, Florida's major programs. The purpose of those
procedures will be to express an opinion on the City of Okeechobee, Florida's compliance with
requirements applicable to major programs in our report on compliance issued pursuant to OMB Circular
A -133 and the Florida Single Audit Act.
Single Audit Additional Audit Administration and Other
At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data
Collection Form that summarizes our audit findings. It is management's responsibility to submit the
reporting package (including financial statements, schedule of expenditures of federal awards and state
financial assistance, summary schedule of prior audit findings, auditors' reports, and a corrective action
plan) along with the Data Collection Form to the designated federal clearinghouse and, if appropriate, to
pass through entities. The Data Collection Form and the reporting package must be submitted within the
earlier of 30 days after receipt of the auditors' reports or nine months after the end of the audit period,
unless a longer period is agreed to in advance by the cognizant or oversight agency for audits. At the
conclusion of the engagement, we will provide information to management as to where the reporting
packages should be submitted and the number to submit.
The workpapers for this engagement will be retained for a minimum of three years after the date the
auditors' report is issued or for any additional period requested by the oversight agency for the audit. If
we are aware that a federal awarding agency, pass through entity, or auditee is contesting an audit
finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the
workpapers.
Other Information
Parties to this engagement agree that any dispute that may arise regarding the meaning, performance, or
enforcement of this engagement will, prior to resorting to litigation, be submitted to mediation upon the
written request of any party to the engagement. All mediations initiated as a result of this engagement
shall be administered by the American Arbitration Association (AAA) and in accordance with the
`Mediation Rules for Professional Accounting and Related Disputes' as then adopted by the AAA. The
results of this mediation shall be binding only upon agreement of each party to be bound. Costs of any
mediation proceeding shall be shared equally by both parties.
Government Auditing Standards require that we provide you with a copy of our most recent quality
control review report. Our 1999 peer review report accompanies this letter.
Mayor and Commissioners
City of Okeechobee, Florida
Page Eight
Our team members who work on this engagement represent an inventory of skilled professionals who are
an asset to our firm. In the event that a Hoyman, Dobson Company, PA team member becomes an
employee of City of Okeechobee, Florida, you agree to pay us a fee. This fee will be thirty five percent
(35 of the team member's annual salary and is due and payable immediately upon our loss of the team
member. This fee is payable if you hire our team member, on either a permanent, temporary or consulting
basis within six months after the last day of this engagement.
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, and
this letter will continue in effect until canceled by either party.
Very truly yours,
.o,;G a,
Deborah A. Bradley
Hoyman, Dobson Company, PA
RESPONSE:
This letter correctly sets forth the understandi the City of Okeechobee, Florida.
By: w
1
Title: City Administrator
Date: September 20, 2001
APPENDIX A
HOYMAN, DOBSON COMPANY, P.A.
SUPPLEMENTAL SERVICE AGREEMENT
Client Proposed by
Year Ended Date Prepared
At this time we anticipate having to perform the following services in order to complete your year end
and financial statements:
Reason for requiring the change order
Nature of work to be performed
Discussion with client
Estimated Estimated
Accountant Rate Hours Totals
Estimated cost of change/
additional work
You will be billed for the actual time expended on the services at our normal hourly rates.
The terms and conditions of payment will be the same as in our engagement letter.
Any revision of timetable
Approved: Accepted:
Manager Client
Director Date
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APPENDIX A
SUPPLEMENTAL SERVICE AGREEMENT
PAGE 2
Rejected:
Manager
Director Date:
Reason:
Rejected:
Client: Date:
I do not want Hoyman, Dobson Company, P.A. to do the additional services required. I will be
responsible for getting our personnel to perform the services. I realize that this will cause a delay in
delivery of our financial statements and tax returns.
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a a
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APPENDIX A
SUPPLEMENTAL SERVICE AGREEMENT
PAGE 2
Rejected:
Manager
Director Date:
Reason:
Rejected:
Client: Date:
I do not want Hoyman, Dobson Company, P.A. to do the additional services required. I will
be responsible for getting our personnel to perform the services. I realize that this will cause a
delay in delivery of our financial statements and tax returns.
G`
City of Okeechobee
*1915
Bill L. Veach Office of the City Administrator
February 13, 2002
Deborah A. Bradley
Hoyman, Dobson Company, P.A.
215 Baytree Drive
Melbourne, FL 32940
Dear Ms. Bradley:
Enclosed you will find the executed supplemental service agreement, which you
requested.
If you have any questions, please do not hesitate to contact me.
Sincerely,
/5/ 6_0_ laziek
Bill L. Veach
City Administrator
BLV /rb
55 S.E. Third Avenue Okeechobee, Florida 34974 -2932 (863) 763 -3372 Fax: (863) 763 -1686
*Iiig
HO
O'YMAN, DOBSON COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
1 a LIlsrM ilr mnum ow EWStiMZP;
215 Baytree Drive, Melbourne, Florida 32940, 321- 255 -0088, Fax 321 -259 -8648, www.hoyman.com
Charles W Hoyman, Jr
Barbara J. Oswalt
Thomas L. Kirk
Karen E. Kirkland
Deborah A. Bradley
DIRECTOR EMERITUS
Roger W Dobson
Eugene K. Blerning
February 1, 2002
Mr. Bill Veach, City Administrator
City of Okeechobee
55 S.E. Third Avenue
Okeechobee, FL 34974
Dear Mr. Veach:
Attached is a supplemental service agreement requesting additional funds for the September 30, 2001
audit. As you can see on the attached form, the majority of the additional work necessary is to get the
City's financial statements and accounting records adjusted for items that were not properly presented in
prior years. Correcting these issues during this audit will allow us to go into future audits without similar
issues.
Please call me if you have any questions or need additional information.
Very truly yours,
CZ ,49:414*.0,_
Deborah A Bradley
Hoyman, Dobson Company, PA
enclosure
w LmoJ110 n,,, Boi, ,,dlu 1 1,1, I ill,. oa I
American Institute of Certified Public Accountants Florida Institute of Certified Public Accountants SEC Practice Section of the A CPAmerica International
FEB. 17. 2(006 1':33PM HOYMAN DOBSON NO. 642 P. 2
APPEND LX B
HOYMAN, DOBSON COMPANY, P.A.
SUPPLEMENTAL SERVICE AGREEMENT
Client C y of Okeechobee Proposed by
Year Ended 9/30/05 Date Prepared 2/15/06
At this time we anticipate having to perform the following services in order to complete your year end
and financial statements:
Reason for requiring the change order
The City met the 5500,000 expenditure thresholds for both federal and state grants requiring the City to
have both Federal and State Single Audits
Nature of work to be performed
The additional procedures are described in our engagement letter dated August 22, 2001, pages 5 -7 in
the paragraphs title "Additional Single Audit Requirements"
Discussion with client
Estimated Estimated
Accountant Rate Hours Totals
Estimated cost of change/
additional work Marguerite Kuntz 70 8750
Debbie Bradley 2 520
You will be billed for the actual time expended on the services at our normal hourly rates. The terms
and conditions of payment will be the same as in our engagement letter.
Any revision of timetable
Approved; Accepted:
Hoyman Dobson Company, P.A. City Qkeechobee
Director t,�`1.•L���
Date
L
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MAR. 13. 2006 5:22PM HOYMAN DOBSON NO. 280 9. 2
APPENDIX B
HOYMAN, DOBSON COMPANY, P.A..
SUPPLEMENTAL SERVICE AGREEMENT
Client Okeechobee Proposed by MIK
Year Ended 9/30/05 Date Prepared 3/6/06
At this time we anticipate having to perform the following services in order to complete your year end
and financial statements:
Reason for requiring the change order
2005 beginning account balances do not agree to prior year audited ending account balances
Fixed Asset summary roll forward is not complete and does not agree to detail support schedules
Nature of work to be performed
Reconcile beginning 2005 balances to 2004 audited ending balances
Complete fixed asset summary schedule and reconcile to detail schedules
Discussion with client
The City has contacted their software tech support to address the beginning balance issue_ If they are
able to roll forward the audited the it will reduce te amount of work needed on the beginning
balances but not eliminate all time involved with that project. Concur with need to complete FA schd.
Estimated Estimated
A ccountant Rate Hours Totals
Estimated cost of change/
additional work Marguerite Kuntz $125 4-8 $500- $1000
You will be billed for the actual time expended on the services at our normal hourly rates. The teens
and conditions of payment will be the same as in our engagement letter.
Any revision of timetable
Approved: Accepted:
w Client
Director ,Id.... e1,- .✓7 /..a1. 6o--- Date p 7!
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APPENDIX A
HOYMAN, DOBSON COMPANY, P.A.
SUPPLEMENTAL SERVICE AGREEMENT
Client City of Okeechobee Proposed by Kathryn Vetter
Year Ended 9/30/01 Date Prepared 1/14/01
At this time we anticipate having to perform the following services in order to complete your
year end and financial statements:
Reason for requiring the change order
Additional work related to (1) capital leases not properly recorded in prior year and current year;
(2) unrecorded and incorrect prior year adjusting entries; (3) component unit not properly
presented in financial statements; (4) incomplete footnote disclosures; (5) year -end general
ledger balances not adjusted to supporting schedules; and (5) fixed asset additions not
reconciled to capital outlay, adjustments to prior year audited equipment costs, and
misclassifications between capital outlay and operating expenditures.
Nature of work to be performed
Through discussions with City personnel and additional reviews of details of transactions and
other supporting documentation, identify differences, determine proper categorization and
presentation, reverse incorrect entries, record proper entries, identify source of differences
adjust general ledger balances to supporting schedules, restate prior year balances, and adjust
financial statements presentation to be in accordance with GAAP, and revise footnotes for
additional required disclosures.
Discussion with client
Estimated Estimated
Accountant Rate Hours Totals
Estimated cost of K. Vetter $140 28 $3,920
change/ additional work
You will be billed for the actual time expended on the services at our normal hourly rates.
The terms and conditions of payment will be the same as in our engagement letter.
Any revision of timetable
Approved: Accepted:
Manager Client��
Director `7 tey r 4 Date 1. L o L