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HomeMy WebLinkAbout10/29/2025 Engagement Letter October 13, 2025 ENGAGEMENT LETTERAPPLYING AGREED-UPON PROCEDURES Monroe County Board of County Commissioners Monroe County, Florida 500 Whitehead Street Key West, Florida 33040 We are pleased to confirm our understanding of the terms of our engagement and the nature and limitations of the services we are to provide for (BOCC) Tourist Development Council (TDC). We will apply the procedures described in the attachment to this letter Report for the year ended September 30, 2025,and the related internal control activities of Visit Florida Keys (VFK), which provides staffing and operational support to the TDC under contract with the BOCC.By signing this engagement letter, you agree to those procedures and acknowledge that the procedures to be performed are appropriate for the intended purpose of the engagement, which is: 1.Annual Comprehensive Financial Report (ACFR)to determine whether the Annual Report is consistent with ACFR. 2.Reviewing specified internal controls at such controls were properly designed and implemented to ensure the Annual Report is accurate and reliable. We understand this engagement is not required pursuant to law, regulation, or contract.Our engagement to apply agreed-upon procedures will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we obtain your written agreement to the procedures to be applied and your acknowledgment that those procedures are appropriate for the intended purpose of the engagement, as described in this letter. A refusal to provide such agreement and acknowledgment will result in our withdrawal from the engagement.No other parties will be requested to agree to the procedures and acknowledge that the procedures performed are appropriate for their purposes.We make no representation that the procedures we will perform are appropriate for the intended purpose of the engagement or for any other purpose. Because the agreed-upon procedures do not constitute an examination or review, we will not express an opinion or conclusion onthe internal controls at VFK. In addition, we have no obligation to perform any procedures beyond those to which you agree. Monroe County Board of County Commissioners Monroe County, Florida Key West, Florida -2- October 13, 2025 We plan to begin our procedures in November 2025 and, unless unforeseeable problems are encountered, the engagement should be completed by March 2026. We will issue a written report upon completion of our engagement that lists the procedures performed and our findings. Our report will be addressed to the Monroe County Board of County Commissioners. If we encounter restrictions in performing our procedures, we will discuss the matter with you. If we determine the restrictions are appropriate, we will disclose the restrictions in our report. Our report will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to you. Our report is not expected to be restricted to the use of specified parties. There may exist circumstances that, in our professional judgment, will require we withdraw from the engagement. Such circumstances include the following: You refuse to provide written agreement to the procedures and acknowledge that they are appropriate for the intended purpose of the engagement. You fail to provide requested written representations, or we conclude that there is sufficient doubt about the competence, integrity, ethical values, or diligence of those providing the written representations, or we conclude that the written representations provided are otherwise not reliable. We determine that the description of the procedures performed or the corresponding findings are misleading in the circumstances of the engagement. We determine that restrictions on the performance of procedures are not appropriate. An agreed-upon procedures engagement is not designed to detect instances of fraud or non-compliance with laws or regulations; however, should any such matters come to our attention, we will communicate them in accordance with professional standards and applicable law. You are responsible for providing us with: (1) access to all information of which you or the appropriate party are aware that is relevant to the performance of the agreed-upon procedures on the subject matter, (2) additional information that we may request from the appropriate party for the purpose of performing the agreed-upon procedures, and (3) unrestricted access to persons within TDC from whom we determine it necessary to obtain evidence relating to performing those procedures. At the conclusion of our engagement, we will require certain written representations in the form of a responsibility. I am the engagement partner and am responsible for supervising the engagement and signing the report or authorizing another individual to sign it. We estimate that our fees for these services will range from $5,000 to $10,000. The fee estimate is based on anticipated cooperation from your personnel, the assumption that unexpected circumstances will not be encountered during the engagement, and anticipated efficiencies in performing procedures in EXHIBIT A AGREED-UPON PROCEDURES The following procedures will be performed with respect to the Monroe County Tourist Development Council (TDC) Annual Report for the fiscal year ended September 30, 2025, and the internal controls of Visit Florida Keys (VFK). A. Comparison of the TDC Annual Report to the Monroe County B (BOCC) Annual Comprehensive Financial Report (ACFR): 1. Reconciliation to Audited Statements: Trace total revenue, expenditure, and fund balance amounts in the TDC Annual Report to the ACFR. Ensure that totals agree and document any reconciling items. 2. Revenues: Agree each revenue line reported in the Annual Report to the working trial balance provided by the BOCC during their financial statement audit. 3. Expenditures by Category: Trace reported expenditures in the Annual Report to the working trial balance obtained from the BOCC during their financial statement audit. B. Review of VFK Internal Controls: 1. Understanding of Controls: and payroll. 2. Walkthroughs: For each receipt, disbursements, and payroll select an individual transaction from a listing provided by the BOCC to walk-through. Trace the transaction through the accounting system from inception to conclusion. Ensure compliance with the policies and procedures obtained in Step B.1 above. 3. Receipts Testing: Confirm Tourist Development Tax revenue reported during the year with the Monroe County Tax Collector. 4. Disbursements Testing: Obtain a listing from the BOCC of all disbursements recorded during the period. Randomly select a sample of 20 expenditures charged to TDC-funded operations. EXHIBIT A AGREED-UPON PROCEDURES Obtain and inspect supporting documentation (invoices, approvals, contracts) to determine whether there is appropriate evidence of authorization in accordance with established policies, appropriate classification within the general ledger given the nature of the disbursement, and whether the disbursement was in compliance with applicable funding requirements. 5. Payroll Testing: Obtain a listing from the BOCC of all payroll transactions occurring during the period. Randomly select a sample of 10 payroll transactions for employees assigned to TDC activities. Verify amounts reported on the corresponding payroll register agree to the respective timesheets and pay rates. Perform a recalculation of charges allocated to the TDC based on the respective hours C. Reporting: We will provide a schedule of our findings for each procedure performed. Findings will be factual in nature, without interpretation, assurance, or opinion. Any discrepancies or exceptions identified will be described in detail in our final report.