03/07/1986 Agreement PARKS & NILES, P.A., C.P.A.'S_.
AND
DENNIS M. BISHOP, C.P.A., P.A.
A JOINT VENTURE
2432 FLAGLER AVENUE
KEY WEST, FLORIDA 33040
March 4, 1986
Board of County Commissioners
Monroe County Municipal Service District
Key West, Florida
Dear Board Members:
This will confirm our understanding of the arrangements for our
examination of the financial statements for the year ended
December 31, 1985 for the Keys Sanitary Service (Ted Carter
Enterprises, Inc.), Island Disposal Co., Inc., Marathon Garbage
Service, Inc., Baltuff Disposal Service, Inc. and Bland Disposal
Service, Inc. Ocean Reef Club is a sub - entity of a large
publically owned corporation, but does maintain separate records
on its disposal operations. A special report statement can be
issued on this entity. Florida Disposal is a subsidiary of Waste
Management, Inc., a large publically held corporation. Its County
related operations are a small sub -part of its total Key West
operations. Separate expense records are not maintained on the
County portions of operating expenses. It does not appear that it
is practical to develop and audit separate statements on this
entity. Based on our discussions, with the owners and /or key
personnel, we hereby submit a guideline of our performance and an
estimate of our fee.
As auditors, our examination will be made in accordance with
generally accepted auditing standards and accordingly, will
include confirmations of cash and receivables, a verification of
property and equipment and such other auditing procedures as we
consider necessary in the circumstances. The primary purpose of
the examination is to enable us to form an opinion as to the
fairness of the information presented in the financial statements,
and as a detail check of the day -to -day transactions is not
contemplated, you will appreciate that you must rely on adequate
methods of internal check and control as your principal safeguard
against irregularities which a test examination may not disclose.
Our audit for the year ended December 31, 1985 will cover the
normal operations of the aforementioned five entities. The
special report for the disposal operations of Ocean Reef Club will
cover the normal operations on this division.
Board of County Commissioners
Monroe County Municipal Service District
Key West, Florida
Page Two
We estimate our fee to be approximately $ 44,000 to $ 48,000 plus
out of pocket expenses, i.e., postage, telephone, travel and
special printing, which should not exceed $ 975.00. Our estimate
depends upon the assistance we can obtain from the franchisees'
personnel and their CPAs' in preparing needed schedules, making
readily available invoices for verification of expenditures and
providing a trial balance for the year ended December 31, 1985 on
the accrual basis of accounting. We would also require some
assistance from the personnel of the Municipal Service District in
providing us some documentation and accounting schedules.
Our fees are based upon the following rate structure:
Partner $ 80.00 per hour
Audit Manager $ 60.00 per hour
Senior Accountant $ 50.00 per hour
Staff Accountant $ 35.00 per hour
Administrative Staff $ 25.00 per hour
The actual fee will be based on the above rate schedule times the
actual hours. It is our firm's policy to bill monthly, based upon
the number of hours we have spent that month on the audit. Bills
for services will be due when rendered.
In the event that there has to be a change in the scope of our
examination, you will be notified by letter and the estimated fee
adjusted accordingly after we have fully discussed the change with
you.
If you have any questions regarding the audit and the scope of our
examination, please contact me. If the foregoing is in accordance
with your understanding, please sign the copy of this letter in
the space provided and return it to us.
Yours truly,
PARKS & NILES, P.A.
DENNIS M. BISHOP, C.P.A., P.A.
John G. Parks, Jr., CPA
For the Firms
JGP:dt
Acknowledgement:
Monroe County Municipal Service District
By:
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