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Item M6 M.6 G* BOARD OF COUNTY COMMISSIONERS County of Monroe Mayor Sylvia Murphy,District 5 The Florida Keys l'U � � Mayor Pro Tern Danny Kolhage,District 1 �pw° Michelle Coldiron,District 2 Heather Carruthers,District 3 David Rice,District 4 County Commission Meeting June 19, 2019 Agenda Item Number: M.6 Agenda Item Summary #5666 BULK ITEM: Yes DEPARTMENT: County Clerk of Court TIME APPROXIMATE: STAFF CONTACT: Aneta Jodkowska(305) 292-3411 N/A AGENDA ITEM WORDING: Presentation of communication on auditor's engagement to audit the County's FY 2019 financial statements. ITEM BACKGROUND: The attached letter is a formal communication to the Board from the County's independent auditor, Cherry Bekaert, about their audit responsibilities and the timing for the FY 2019 audit of the County's financial statements. PREVIOUS RELEVANT BOCC ACTION: N/A CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Receipt as submitted. DOCUMENTATION: Jun AIS - Auditor Communication on FY 2019 Financial Audit FINANCIAL IMPACT: Effective Date: Expiration Date: Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: Source of Funds: CPI: Indirect Costs: Packet Pg. 1231 M.6 Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Insurance Required: Additional Details: REVIEWED BY: Kevin Madok Skipped 06/04/2019 9:36 AM Cynthia Hall Completed 06/04/2019 1:52 PM Kathy Peters Completed 06/04/2019 1:54 PM Board of County Commissioners Pending 06/19/2019 9:00 AM Packet Pg. 1232 M.6.a er"t.�� To the Honorable Mayor and Board of County Commissioners of _ Monroe County, Florida: 5 r_ We are engaged to audit the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Monroe County, Florida (the "County") for the year ended September 30, 2019. Professional standards require that we provide you with the following information related to our audit. We would also appreciate the opportunity to meet with you to discuss this information further since a two-way dialogue can provide valuable information for the audit process. Our Responsibilities under U.S. Generally Accepted Auditing Standards, Government Auditing Standards,the Uniform Guidance and Chapter 10.550, Rules of the Auditor General Our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in 0 conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. In planning and performing our audit, we will consider Monroe County Board of County Commissioners internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting. We will also consider internal control over compliance with requirements that could have a direct and material effect on a major federal program or major state financial assistance project in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the Uniform Guidance and Chapter 10.550, Rules of the Auditor General. As part of obtaining reasonable assurance about whether Monroe County Board of County Commissioners financial statements are free of material misstatement, we will perform tests of its compliance with certain cv provisions of laws, regulations, contracts and grants. However, providing an opinion on compliance with those provisions is not an objective of our audit. Also in accordance with the Uniform Guidance and Chapter 10.550, Rules of the Auditor General, we will examine, on a test basis, evidence about Monroe County Board of County Commissioners compliance with the types of compliance requirements described in the U.S. Office of g Management and Budget (OMB) Compliance Supplement applicable to each of its major federal programs and Rules of the Auditor General applicable to each of its major state financial assistance projects for the purpose of expressing an opinion on Monroe County Board of County Commissioners compliance with those requirements. While our audit will provide a reasonable basis for our opinion, it will not provide a legal determination on Monroe County Board of County Commissioners compliance with those requirements. Planned Scope, Timing of the Audit, and Other 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 cis areas to be tested. Our audit will include obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) 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. We will generally communicate our significant findings at the conclusion of the audit. However, some matters could be communicated sooner, particularly if significant difficulties are encountered during the audit where assistance is needed to overcome the difficulties or if the difficulties may lead to a modified opinion. We will also communicate any internal control related matters that are required to be communicated under professional standards. Packet Pg. 1233 M.6.a To the Honorable Mayor and Board of County Commissioners of Monroe County, Florida Page 2 i5 We expect to begin our audit in November 2019 and issue our report prior to March 31, 2020. Eddie Burke is the @ engagement partner and is responsible for supervising the engagement and signing the report or authorizing .5 another individual to sign it. This information is intended solely for the use of and management of the Board of County Commissioners of the Ir- County and is not intended to be, and should not be, used by anyone other than these specified parties. CD N �- Orlando, Florida May 13, 2019 aE 0 a� cv 0 aE 0 Packet Pg. 1234