02/03/1987 Agreement PARKS & NILES, P.A., CERTIFIED PUBLIC ACCOUNTANTS
January 25, 1987
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, 1986 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
publicly 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 publicly 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. Therefore, an audit of
Florida Disposal is not included within the scope of this
engagement. Based on our discussions, with the owners and /or key
personnel and our experience in performing the audits for the year
ended December 31, 1985, 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.
John G. Parks, Jr., C.P.A. /Jack D. Niles, Jr., C.P.A.
Guy A. Willis, C.P.A. /Sharon A. Moore, C.P.A. /Sharon L. Kerns, C.P.A.
Members: American Institute of Certified Public Accountants & Florida Institute of Certified Public Accountants
2432 Flagler Avenue, Key mast, FM rids ?x040 / 1305) 294 -660 6
Board of County Commissioners
Monroe County Municipal Service District
Key West, Florida
Page Two
Our audit for the year ended December 31, 1986 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 of this division.
We estimate our fee to be approximately $59,000 to $68,000 plus
out of pocket expenses, i.e., postage, telephone, travel and
special printing, which should not exceed $1,775.00. Our estimate
depends upon the assistance we can obtain from the franchisees'
personnel and their CPA's in making available all pertinent
accounting records for the year under audit, including copies of
complete adjusted trial balances, using the accrual method of
accounting and implementing the standard chart of accounts
required by Appendix A of the franchise agreements, and schedules
supporting the adjusted balances as of December 31, 1986, along
with additional schedules and documents as needed. 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 $ 85.00 per hour
Audit Manager $ 65.00 per hour
Senior Accountant $ 55.00 per hour
Staff Accountant $ 40.00 per hour
Administrative Staff $ 30.00 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 is necessary, you will be notified by letter and the
estimated fee will be adjusted accordingly after we have fully
discussed the change with ydu.
R
Board of County Commissioners
Monroe County Municipal Service District
Key West, Florida
Page Three
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.
e rn... -sQ,
o hn G. Parks, Jr. CPA
For the Firm
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Acknowledgement:
Monroe County Municipal Service District
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