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HomeMy WebLinkAboutAgenda Fire Pension 101217 Special Meeting PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND Special Meeting of Thursday October 12, 2017 Location: City Hall, Council Chambers Palm Beach Gardens City Hall 10500 North Military Trail Palm Beach Gardens, FL 33410 Time: 9 AM AGENDA 1. Call Meeting to Order 2. Public Comments 3. 9/30/2017 Audit Engagement Letter (KSDT) 4. New Business 5. Next Meeting Previously Scheduled Wednesday November 1, 2017 at 1PM 6. Adjourn PLEASE NOTE: Should any interested party seek to appeal any decision made by the Board with respect to any matter considered at such meeting or hearing, he will need a record of the proceedings, and for such purpose he may need to insure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation to participate in this meeting should contact The Resource Centers, LLC no later than four days prior to the meeting. THE RESOURCE CENTERS , LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Phone (561) 624-3277 Fax (561) 624-3278 WWW.RESOURCECENTERS.COM 1625 N. COMMERCE PARKWAY, SUITE 315, WESTON, FL 33326 TEL (954) 485-5788· FAX (954) 485-8988 · WWW.KSDT-CPA.COM August 24, 2017 Board of Trustees City of Palm Beach Gardens Firefighters’ Pension Fund Palm Beach Gardens, Florida Kabat, Schertzer, De La Torre, Taraboulos & Co. (the Auditor) is pleased to confirm our understanding of the services we are to provide for the City of Palm Beach Gardens Firefighters’ Pension Fund (the Plan) for the year ended September 30, 2017, as set forth in this Agreement. We will audit the statement of fiduciary net position of the City of Palm Beach Gardens Firefighters’ Pension Fund and the related statement of changes in fiduciary net position for the year ended September 30, 2017. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the City of Palm Beach Gardens Firefighters’ Pension Fund’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economical, or historical context. As part of our engagement, we will apply certain limited procedures to City of Palm Beach Gardens Firefighters’ Pension Fund’s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquires of management regarding the method of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during the audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1. Management’s Discussion and Analysis 2. Schedules of Contributions from Employer and Other Contributors 3. Schedule of Investment Returns, and the 4. Schedules of Changes in the Employer’s Net Pension Liability and Related Ratios We have also been engaged to report on supplementary information other than RSI that accompanies the City of Palm Beach Gardens Firefighters’ Pension Fund’s basic financial statements. We will subject the Schedule of Administrative Expenses to certain limited procedures, but it will not be audited. 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 generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and will include tests of the accounting records of the City of Palm Beach Gardens Firefighters’ Pension Fund and other procedures we consider necessary to enable us to express such an opinion. . 1625 N. COMMERCE PARKWAY, SUITE 315, WESTON, FL 33326 TEL (954) 485-5788· FAX (954) 485-8988 · WWW.KSDT-CPA.COM Audit Objectives (Continued) We will issue a written report upon completion of our audit of the City of Palm Beach Gardens Firefighters’ Pension Fund’s financial statements. Our report will be addressed to the Board of Trustees of the City of Palm Beach Gardens Firefighters’ Pension Fund. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add emphasis-of-matter or other-matter paragraphs. If our opinion is other than unmodified, we will 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 issue report, or may withdraw from this engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will include a paragraph that states (1) that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the Plan’s internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Plan’s internal control and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that the City of Palm Beach Gardens Firefighters’ Pension Fund is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 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 from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or regulations that are attributable to the Plan or to acts by management or employees acting on behalf of the Plan. Because the determination of abuse is subjective, Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal controls, and because we will not perform a detailed examination of all transactions, there is a risk that a material misstatement may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards. In addition, an audit is not designed to detect immaterial misstatements, or violations of laws or regulations that do not have a direct and material effect on the financial statements. However, we will inform you of any material errors and any fraudulent financial reporting or misappropriation of assets that comes to our attention. We will also inform you of any violations of laws or regulations that come to our attention unless clearly inconsequential. 1625 N. COMMERCE PARKWAY, SUITE 315, WESTON, FL 33326 TEL (954) 485-5788· FAX (954) 485-8988 · WWW.KSDT-CPA.COM Audit Procedures-General (Continued) Our responsibility as auditor 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 were not engaged as auditor. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of 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 require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing standards. Audit Procedures-Internal Controls Our audit will include obtaining an understanding of the City of Palm Beach Gardens Firefighters’ Pension Fund, including internal controls, sufficient to access the risks of material misstatements of the financial statements and to design the nature, timing, and extent of further audit procedures. An audit is not designed to provide assurance on internal control or to identify deficiencies in internal controls. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards. Audit Procedures—Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City of Palm Beach Gardens Firefighters’ Pension Fund’s compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit 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. Other Services We will also assist in preparing the financial statements and related notes of the City of Palm Beach Gardens Firefighters’ Pension Fund in conformity with U.S. generally accepted accounting principles based on information provided by you. These non-audit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform these services in accordance with applicable professional standards. The other services are limited to the financial statement services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. Management Responsibilities Management is responsible for establishing and maintaining effective internal controls, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and financial information is reliable and 1625 N. COMMERCE PARKWAY, SUITE 315, WESTON, FL 33326 TEL (954) 485-5788· FAX (954) 485-8988 · WWW.KSDT-CPA.COM Management Responsibilities (Continued) properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements and all accompanying information in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written 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. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts or grant agreements, or abuse that we report. You are responsible for the preparation of the supplementary information, which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to 1625 N. COMMERCE PARKWAY, SUITE 315, WESTON, FL 33326 TEL (954) 485-5788· FAX (954) 485-8988 · WWW.KSDT-CPA.COM Management Responsibilities (Continued) the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information. You agree to assume all management responsibilities relating to the financial statements and related notes and any other non-audit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the non-audit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. Audit Administration, Fees and Other We will provide copies of our reports to the City of Palm Beach Gardens as part of the City of Palm Beach Gardens ’ preparation of Comprehensive Annual Financial Report; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of Kabat, Schertzer, De La Torre, Taraboulos & Company and constitutes confidential information. However, we may be requested to make certain audit documentation available to certain governmental agencies pursuant to authority given to it by law. If requested, access to such audit documentation will be provided under the supervision of Kabat, Schertzer, De La Torre, Taraboulos & Company personnel. Furthermore, upon request, we may provide copies of selected audit documentation to those governmental agencies Our fee for these services will be $7,645 plus out-of-pocket expenses where applicable. The above fee 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. 1625 N. COMMERCE PARKWAY, SUITE 315, WESTON, FL 33326 TEL (954) 485-5788· FAX (954) 485-8988 · WWW.KSDT-CPA.COM Public Records Requests/Retention. IF THE AUDITOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE AUDITOR’S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS, AUDREY ROSS, AT (561) 459-3007, AUDREY@RESOURCECENTERS.COM, CITY OF PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND, 4360 NORTH LAKE BOULEVARD, SUITE 206, PALM BEACH GARDENS, FL 33410. Auditor agrees to comply with the Florida public records laws and specifically to: a. Keep and maintain public records required by the Plan to perform the service. b. Upon request from the Plan’s custodian of public records, provide the Plan with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law. c. Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and following completion of the contract if the Advisor does not transfer the records to the public agency. d. Upon completion of the contract, transfer, at no cost, to the Plan all public records in possession of the Auditor or keep and maintain public records required by the Auditor to perform the service. If the Auditor transfers all public records to the Plan upon completion of the contract, the Auditor shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the Auditor keeps and maintains public records upon completion of the contract, the Auditor shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the Plan, upon request from the Plan’s custodian of public records, in a format that is compatible with the information technology systems of the public agency. This Agreement will remain in full force and effect until terminated. This Agreement may be terminated at any time by the City of Palm Beach Gardens Firefighters’ Pension Fund and may be terminated by Kabat, Schertzer, De La Torre, Taraboulos & Company, upon thirty (30) days’ prior written notice to the Board of Trustees for the City of Palm Beach Gardens Firefighters’ Pension Fund. 1625 N. COMMERCE PARKWAY, SUITE 315, WESTON, FL 33326 TEL (954) 485-5788· FAX (954) 485-8988 · WWW.KSDT-CPA.COM Public Records Requests/Retention (Continued) During the term of this Agreement, Kabat, Schertzer, De La Torre, Taraboulos & Company shall maintain a professional liability insurance policy minimum of $1,000,000. The Board of Trustees for the City of Palm Beach Gardens Firefighters’ Pension Fund will be notified if this policy is changed, amended or cancelled within fifteen (15) days of such an occurrence. Kabat, Schertzer, De La Torre, Taraboulos & Company will provide the Declaration Page as proof of maintaining Professional Liability Insurance of at least $1,000,000, to the Board of Trustees for the City of Palm Beach Gardens Firefighters’ Pension Fund in the month of October for each year the Agreement is in effect. Steven Gordon is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. We appreciate the opportunity to be of continued 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. Sincerely, Kabat, Schertzer, De La Torre, Taraboulos & Co. APPROVED: This letter correctly sets forth the understanding of City of Palm Beach Gardens Firefighters’ Pension Fund. By: _______________________________________Date:_________________________