2013-0982013-98
Resolution Appointing Certified Public Accountants to Provide Various Accounting Services and to
Audit the Accounts and Reports of the Town Supervisor, Town Clerk and Town Justices
At a regular meeting of the Town Board of the Town of Wappinger, Dutchess County, New
York, held at Town Hall, 20 Middlebush Road, Wappingers Falls, New York, on March 11, 2013.
The meeting was called to order by Barbara Gutzler, Supervisor, and upon roll being, called, the
following were present:
PRESENT: Supervisor
Councilmembers
ABSENT:
Barbara Gutzler
William H. Beale
Vincent F. Bettina
Ismay Czarniecki
Michael Kuzmicz
The following Resolution was introduced by Councilman Bettina and seconded by
Councilwoman Czarniecki.
BE IT RESOLVED, that Sedore Hudson Valley CPAs, Certified Public Accountants, is hereby
retained for the purposes of furnishing such accounting assistance and consultations as may be needed by
the Town Supervisor, Town Accountant and Town Bookkeeping staff, as such services may be required
from time to time during calendar year 2013; and
BE IT FURTHER RESOLVED, that Sedore Hudson Valley CPAs, Certified Public
Accountants, be and they are hereby retained to audit the accounts, books, records and reports of the
Town Supervisor, Town Clerk and Town Justices for calendar year 2012; and
BE IT FURTHER RESOLVED, that Sedore Hudson Valley CPAs, Certified Public
Accountants, shall be paid in accordance with their fee schedule set forth in their Engagement Letter
addressed to the Town Board dated February 14, 2013.
The foregoing was put to a vote which resulted as follows:
BARBARA GUTZLER, SUPERVISOR Voting: AYE
WILLIAM H. BEALE, COUNCILMAN Voting: AYE
VINCENT F. BETTINA, COUNCILMAN Voting: AYE
ISMAY CZARNIECKI, COUNCILWOMAN Voting: AYE
MICHAEL KUZMICZ, COUNCILMAN Voting: AYE
Dated: Wappingers Falls, New York
3/11/2013
The Resolution is hereby duly declared adopted.
STINE F ,TOWN CLERK
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CERT~t"tEl~ PL1BL1~ ACC-tlN~~t~1TS, P.~.
_...._~1c~~~ic~ttt~ ~c~txr~ Succss
Febru~~ry l4, ~Q13
Barbara Gutrler, Supervisor
"~'ow°n of ~'a}~pin~er
20 Mddlehush Read
lk~ appngers Falls:, New York 12590
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Vde are pleased. to confirm our understanding of the services we are io provide the Tcswn of
Wappinger, New= "York for the year ended December 3I, 2g12. We will. audit the financial
statements of` the governmental activities, each major fund, and the aggregate rcniaining fund
information, which collectively comprise the basic financial statements of theTou=n €~f
~v'appinger as caf and for the year ended December 31, 2Qi2. Accounting standards generally
accepted in the United States provide for certain required. supplementary information ~RSI~, such
as management's discussion and analy=sis ~IVIU&A), to supplement the Town af'+~+lappinger's
basic financial statements, Such information, although not a part of the. basic financial
statements, is required by the Governmental ;4ccounting Standards Board who considers it to he
an essential. part of the financial reporting fray placing the basic financial statements in an
appropriate operational, economic, or historical context. ~s part of our engagement,. a=e will
apply certain limited procedures to the'rown of V~ appinger's RBI, in accordance with auditing
standards generally accepted in the United States of America. These limited procedures ~=ill
consist of inquiries of management regarding the methods of preparing the information and
comparing the information for consititeney with management's responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. V4'e u=ill not express an opinion or provide any assurance ~n the infcarcnation
because the limited procedures do not prc3vide us with sufficient evidence to express an opinion
or provide any assurance. The following RS is required by generally accepted accounting
principles and will be 4ubjected to certain limited procedures, but will not be audited.;
1. Management's Discussion. and Analysis
'~, Budgetary ('omparisc~n Schedules -General Fund, Highwa}= Fund., and Sewer Fund
~. Uther Post-employment Benefits -Funding Schedule
Supplementary information other than RSl also accompanies the Town of t~`appinger't financial
statements. We will subject the follow=ing supplementaryr information to the auditing procedures
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al~l~led in out` audit of the financial statetrtents anc~lcei~athe ~nderlyingat'acct tinting and other
cotriparsng aid reconcilitag such inforn-tatican duet. }
recz~rds u4ed to prt-pare the. financial statements or to thestandards steno ally accepted in thend
~c~ther additic~n~~il procedures in at c;ordance with auditing ~
united States of Americ4i and will provide an capinion on it in rclatian to the financial statements
as a whale:
1. C't~ambining Balance Sheet ~- l~lon-:Major Governmental Funds
2. C'omhinit~;g Statement of Revenues,l/xpcnditures
and C'tiangcs in Fund Balances - Ncin-Major Governmental Funds
Audit ~)bjcctives
The t,~bjective of our audit. is the expression of opinions as tea whether }rcntr basic financial
stritentents are fain}• prc~ented, in all mattlrial respects, in conformity= with U.S. generail}j
accepted accounting principles and tea report can. the fairness of tiie suppien~entar}= infartriatican
rcferrcd to in the second paragraph ~~then ccansidered in relation. to the financial statenents as a
whole. Qur audit will ~e conducted in accordance with auditing standards generally accepted in
the CJnitcd States caf ~trterica and tl~e standards far financial audits contained in Gcat°errxttic3t7t
Auriititr~ 5'Jcrrirlrt~•ris, issued by tiie Comptroller General of the United States, and will include
tests of the accounting records of the Tcawn of V+lappinger and other procedures we consider
nece;sar}° to enable us to express such opinions. if oitr opinions can the financial statements are
other then unqualified, we will fully discuss the reasons with you in. advance. if, for any reason,
ti~<e arc unable tt? cc~mplcte the audit or e3re unable tc~ fc~rrn ar ha~re nest formed opinions, we rrt~y
dcciine tc} express opinions ar to issue a report as a result of this engagement.
We will also provid~c a report (that does not include an opinion} on internal control related to the
financial statements and compliance v+(°ith la~fs, regulations, anti the prc~~tisions of contrae:ts ar
grant agreements, nonce}rnpliancc ~~ith which could have a n~t~tcrial effect can the financi~dl
statements as rewired to}~ Gc~i-~rxtr~~rrrzt Arulitirt~ Stcxririrrrrls. The report. on internal control and
compliance will include a statement that the report. is intended solel}= fear the inf«rtnation and use..
of rt~anagement, the btad}° gar individuals charged with governance, ethers within the entity, and
specific legislative or regulatory toadies and is not intended to be and should not be used by
anyone other than these specified. parties. if during our audit we becotzae aware that. the Town caf
~'~'appinger is subject tea an audit. requiren~tent that is not encompassed in the terms of this
engagement, we will canzmunicate to management and those charged with governance that an
audit in accordance w°ith L?.S. generally accepted auditing. 4tandard4 and the standards fc~r
financial. audits contained in Civi-c~~'rttnr~ltt ~culitirtg Strrnrlrzrris ma}' neat. satisfy the relevant legal,
regulatcary, ar ccsntractual requirements.
1~7anagement Responsibilities
"viaztagement is responsible fc-ar the basic financial statements and all accompanying nforniatian
as welt a~ all rcpresentatirans contained therein. As part of the. audit, we will assist with
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preparation caf }~raur finaazc;a~tt 4tatetzzeazts and related eai fun bans relatzn~ to the fin an alp 1
azzana~.'emeazt deci:sians aazcl perfarazzng all managG~m
statements and related Hates and foa• acre-ptin~ fu11 rest t an letterfour nss ~ance ~vath pr p~ rat~itan
required to acknowledge an the ananageanent representa
cif the financial stateazzent~, sand that you have rc1~iewedTe dG~an~ibilitafozr tlzenz.cFu ~fseri you aced
related notes praar tcs their asstaaazce sand hd4e accepted p }
required to designate an individual wittz suitable skill, knowledge car expeaienre to oversee- any
azan-~atadit ser~~ices we provide anci far evaluatiazg the adequacy and results of thcase services rand
accepting reslsonsihility far them...
l~~anagenzent is responsible far establishing :and maintaining internal. controls, including
~azzarz~itoring congaing activities, tea help ensure that appropriate goals and ahjec:tive~ are met; for
the selectican and application of accounting painciples; and fc~r the.fair presentatican in the
I'inane ial statements of the respective fnancia! position caf the gcaverntzzental activities, each
2zzajar fund, and the tggregate a•emaining fund information of the Town of VVappinger and the
respective changer in finanazal position., in conformity with U.S. generally accepted. accounting.
principles.
It~lanagenzent is also responsible for making all #'inancial recoa•ds and related infGZrmation
available tea us rand far ensuring. that txaanagement and financial infaarmatian is reliahlc and
praperl}~ recorded... Youa• responsibilities include. adjusting the financial statements tcz ccarrect
material. misstatements and frar confirming to us in the representation letter that. the effects of an};
tanccarrected aztisstatements aggregated hy° us during the current engagement and pertaining to the
latest. period presented are iaazmaterial, both. indviduatly° rand in the aggregate, tea the financial
staterraents taken as a whole,
YaGS are responsible far the design and implementation of programs and controls to prevent and
detect fraud, and. far infortzzing us about all known car suspected fraud affecting the government.
involving { 1) rn~tn~tgement, (2) employ°ees r~vhca have significant. roles in internal control, and (:~)
others where the fraud ar illegal acts could. have a material effect can the financial statements.
Yczur responsibilities include informing tar of your knowledge of any allegations of fraud or
suspected fraud affecting the gavern3zzent received in cornmunicaticans from employees, farmer
ernplayees, grantcars, regulators, ar Gathers. In addition, you are responsible far identifying. and
ensuing that the entit}~ complies with applicable laws, regulations, ecantracts, agreements, and.
grants far taking tirraely and appropriate steps to reatzc.dy any fraud, illegal arts,. viczlations of
contracts or ~~rant agreements, car abusaY that we azzay report.
~'ou are responsible :frar tlae preparation. af~ the supplementary 'snforanatican in conforn~aity with
U.S. generall}= accepted accaaanting princi~ies. ~'au agree to inltade our report can the
supplementary information in any document that contains and indicates that we have reported can
the suppletnentar}~ information. ~r'au alsra agree to present. the stpplementary infarmatian with
the audited financial statements. ~r'czua• respcansilailities nt;lude acknowledging to us in the written
representation letter that (1) you are responsible far presentation of the supplementary
infarmatian in accc7rdance with ~AAF'; t~) that you believe the supplearaentary infarmatian, ,
inctudin~. its farm and ctantettt, is fairly t~resented in ~zcccardanc~e with ttii~r~P, ~~}that the
zaaethc~cis cif tzaeasuz~ement or presentatian have not chance •an~ t~~l t.t~u hate ~i clause rtt~tu~~anyd
{ar, if they 1°zave chazxged, the. reasons far such changes}, O ~
significant assutttptions or inte;rpretrztions tznderl~•~tg the nae.asurement ear presentztican c:~f the
supplementary izlformatian
Management is respe>nsil~le fczr estalahshing and maintaining a prc~hte lar idLntifyintgeforttz:,s cai'
audit findings azid recczttiz~~zendaticans. Management zs also respan
previous financial audits, attcstati<>n engagements, perforzaaance audits car rather studies z•elated tc~
the otajectives discussed in the Audit CJbjectzves section of this tatter.. ~~ ~~~ aT1dsih'zlity
inctudcs relaying to us cc~rrectivc~ actions taken tc~~ addre.s szgnzfzcant f ~.
recomn~endatican+ re5utting franl ttxose aczdits, attestation engagementfi, perfearttaanc.e audits, ar
other studies. ~'au are also responsible for providing management's views on ocn• current
findins, cc>z~clusicans, and. reccaztamendatiotas, as vc°ell as year plamnect carrec;tive ttt~tians, €ar the
report, and fear the timing and format for pravidittg that informatozl.
Audit preacedur+es -General
A:n audit includes examining, on a test basis, evidence supporting the an~aunts and disclosures in
the financial statements; therefore,, our audit will involve ~udgnaent abaut tl~e number of
transactions to he examined and the areas to be tested. ~e will plan and perform the audit to
t~bt.an reasonable rather than atasaltzte assurance abcaut whether the financial statements are free
caf material. misstatement., ~vl~ether tram (l } errcn•s, {2}fraudulent. financial repczrtin;, {3}
zxtisapprapriatictn of assets, or (~) violations of tau°s ar governmental regulati«ns that are
attributable to the Town ar to acts ~y management car employees acting can behalf of the Tcawn.
$ecause the determination of abuse is subjective, (;tati~c~rrzrrz~~rtt ~artlitirz~; Star7rlczr-ct~' dca teat expect
auditers to provide rcasonahte assurance caf detecting abuse,
Because of the inherent limitations of an audit., combined with the; inherent limitatians of internal
cantrcal, and because we utill neat perform a detailed examination of all transactions, there is a risk
that materi~~zl misstatecticnts may exist. and not.. be detected. t,y us even though the audit. i5 properl}~
planned and perftarzned in accordance. with ir7.~. generally accepted auditing 5zandaz•ds and.
~e,z,~r~t~,t~>r~t Atut'rtr,a~ ,Stcrrtc~~rrr~.c. Ln addition, an audit is nett de5ignecl to .detect immztterial
mis5tatezt:zents ar violations of tacos ar governmentat regulations that do net trove a direct incl.
material. effect cm the financial statements. However, we will inforztz the appropriate level of`
management of tiny material errors and any fraudulent financial .reporting or rnisappreapriatican of
assets that ccamt to our attention. We will also infartn the appropriate level of management cat
any violations caf louts ar gavez°nmentat regulations that come to our attention, untess clean}'
inc:onseyuentiaL Uur responsibility as auditors is limited to the period covered. by our audit and
dczcs not extend to later periods fear which cue are not engaged as auditors.
C)ur procedures will include tests of documentary evidence supporting the transactions race-ardecl
in then accounts, and may include tests caf the physical existence of inventories, and direct
c;anfirmation of receivables anal certain other assets and liabilities by correspondezice wittz
a
selected individuals, funding ~,c~urces, crectitczrs~a tcaft he engagementttand hTey znay ~ 11 ycau far
written representations frcztn your atte~rneys a~, ~
re:~l~cznding tc} this inquiry. At tl~te ccznclusian of ottr at ~aud ~ latecl rn~ttc~~ ire c:ertatn w°ritten
reprrsetatatic}ns Franz yc~u atzaut the financial statcizze
audit.. Prc-redures - IntErnstit ~'ontral
Ut-r audit will include nt~taining tin. under~;tatadit~°~ erial rt~iylstat rnent cif the~fi n ~nei~t statements
internal control, sullicie.t~t to assess the. risks of n
and to design the nature, tinting, and extent czf further audit prc~cedttres. Tests of controls nay he
performed to test the effectirJeness ttf certain controls that we consider relevant. icy preventing and
dett~c-ling errors and fraud that are material to the financial statements and to preventing and
detecting misstatements resulting (rain illegal trots and other nancc3mplianc.e mattc,rs that tlavye a
clireet tend txtttterittl effect on tlac financial st.atenaents. Our tests, if performed, cvil.l lie. les:~ in
scope than. would be necessary to render tin opinion on internal ct~ntrol and, accordingly, no
apiniczn will be expzessed in czar report an internal cantrc~l issued pursuant to (icrrJc~r~rzrrzc>rtt
tltrrtitirr~ ,Stcrrrrlar°~~:c.
An audit. is not designed to provide assurance an internal. contrcil or to identify significant
deficiencies. However, during the audit, eve will communicate to management: and those charged
with governance internal cantrctl related matters that are required to be ctrn~municated under
AIC'P,~ professional standards and t;rjvctrrrrrrerrt tlrrclitirt~ ~Slcrrrclcrrctzs.
Audit ~Yrcrcedures - Cc-m~iiance
~'~s part czf cthtaitsng reasanakzle assurance at~out whether the financial statements are •free c}f'
rrYaterial misstatement, ~~ge will perform tuts of the Town of Wappinger's compliance with the
provisions czf applicat~le laws, rcgulatczns, contracts, agreements, and grant4. Ha~;ever, the
alx~ective of our audit will not be to gray=isle an apiniczn czn ovcral cc~mplzance and we ~~ill not
express such an opinion 'in our report c7n compliance issued pursuant tcz Grxut~rrrrrr~rzr .Arrtlitirr~
S1~rrz~lcrrris.
~;ngagernent A,drninisiraticrn, Fees and fJther
We understand elzat yaurr employees will prepare all cash ar other canfrmatit:~ns uje request and
will locate any documents selected by us for testing.
~e will provide copies ct~f our reports to the Town; however management is respnnsihle far
distritzuticzn of the refsi~rts and the financial statet~nents. Unless restricted la} law or regulation, or
containing privileged atzd confidential information, cczpies of our reports are to Fzc made a~°ailal~le
fc~r pul•rlic inspection.
The audit documentation. far this engagen'ent is the prapert}° of` Sedore ~: Company, CPr~s and
constitutes confidential infarmatian. However, pursuant to authority given bylaw or regulation,
we nlay lae requested to zaa~zke certain audit. docur indire t~fundin~,,lozt the L~.~ rGvvertnrzzcntatcrz- cza-
it~ designcc, a fedea-al agency provzdzng clzrec,t o
Accc~czzatability C)fficc f'or purpt>ses of a quality z-eviev~~ of tlae audit., to resolve audit fznd.ings, oz`
to carr • cut oversight. re~+pc3nsibilities. w'e wzll notify you of any 5ucl~ z~~ 7r~ftS ~ir~rel& sted,
access to such. atulit docuz~zentatzon r~rill be pz•c~vaded under the supc~r~zsz
ccanapany, ~C'13As perscznnel l urtlzernaore, upon r`eg5e saz•tieszzna °lintend~ or de dc, o dist~budit
documentaztac>n t~ tlae al'c~rcnaezationcd partzes. The ~ }
the copies car irzfc~rzazaton contained therein to rsthers, including other governznentttl agetlcaes.
The audit docuzazentatioza fc>r dais engagezzaent will be retained for a minimum n t ~ ~zlac r~rlf ester
the repoa`t release date or for any additional period requested by the ~;overnrt ~,
are. z}«rare that a federal autzrdin~ agency or tz7rdite~ zd nac~e~~r~acrr t~ de~ztc~~ and the audit 11
ccmtact the parties cczntcstzng the audit fandzn~; for ~z l
docuzrzentation.
'e lalan to begin our azzdit fieldwork on at a zzautualiy agreed-upan tithat z-naterialscre~gcrestecl at
reports within sixt}r days. Thas timetable is faased on the assuzazptzon
the planning meeting are ready and available czn or hefcare the first da}t of fieldwczz-k.
C7ur fee fear these services is calculated according to our pr~pcrsal dated L)ecemher 1 1, ~()t~l ~ezzt
to yozz under separate cover, amounting to ~U,5~0, representing a ] .fi~Ie estimated cost of living
increase from. the prioa° }year. Uzzr nvczces far ttaese fees will be rezadered on a monthly' basis,
representing cane twelfth czf the atznual l~ec and are payable can presentation. C}ur fee is based on
aaaticipated cocaperation from }Faux per5c>nnel and the. assumpticm that unexpected circumstances
will nrzt be. encountered dx:ring the audit. If significant additional time i5 necessary, we will.
discuss it with you and bill these services as "additional services" according to our standard
hczczrly rates c>r at a rnutczall}°wagreed upcan fee,
l~~'e apprerr~zte tlae oppczrtunty to be of service to the Town of 'Wappingr"r, New '~'czrk, and
believe this letter accurately sumzaaari~es the significant terrzas of our engagement. If yc}u have
any questions, please let us know. if ycrct agree with the terms of rrur engagement as described in
this letter, please sign the enclosed. copy and return it to us.
Veryr~,truly yours,
~ ,
y { S
Linda M. 1.lannigan, L',l'.~..
Paz~tner
SEL't()RE ~ C(J11~1PAN~a',C~:.P.A~.s, P.C',
RL~YQ-~~E:
This lettca• c~:~z-rcc;tly sets fc~rtty the uncierstanctn cif the Tc~~~rn c~(' V4'a;7~in~:.r, t~7ew 1£c~i°l~.
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