406.94
RESOLUTION AUTHORIZING RETENTION OF SERVICES OF AN AUDITOR
RESOLUTION NO.: 406, 94
INTRODUCED BY: Mr. Nick Caimano
WHO MOVED FOR ITS ADOPTION
SECONDED BY: Mrs. Carol Pulver
WHEREAS, the Town Board of the Town of Queensbury is currently
reviewing financial statements for all companies providing fire or
rescue emergency service to the Town of Queensbury, and
WHEREAS, the contracts between the companies providing fire
and/or rescue emergency service to the Town and the Town of
Queensbury provide for audits of the companies' accounts, and
WHEREAS, prudent management of the Town's financial affairs
also indicate that audits of the Fire and Rescue Companies'
accounts are appropriate and required, and
WHEREAS, the Town Board of the Town of Queensbury has
conducted interviews, and desires to retain the accounting firm of
Urbach, Kahn and Werlin, P.C., to assist in the auditing process,
NOW, THEREFORE, BE IT
RESOLVED, that the Town Board of the Town of Queensbury hereby
authorizes the retention of the services of Urbach, Kahn and
Werlin, P.C., to perform auditing services in accordance with the
terms and provisions of a contract to be executed by the Town
Supervisor and to be in a form to be approved by the Town Attorney
at a cost not to exceed $10,000 and to be paid for from the Fire
Protection Fund, and
BE IT FURTHER,
RESOLVED, that the contract to be executed by the Town
Supervisor shall contain at minimum, a scope of services that
includes the following:
The attached proposal letter.
August 19, 1994
Mr. Nick Caimano
Town of Queensbury
Bay at Haviland Road
Queensbury, NY 12804
Dear Mr. Caimano:
We are pleased to submit this proposal to provide various auditing,
accounting and consulting services to the Town of Queensbury in
regards to the various volunteer fire companies and rescue squads
with which the Town contracts for services.
It is our understanding that the Town is looking for a uniform
financial reporting format for all of the entities. Further, it is
our understanding that each fire company and squad employs a fee
accountant to prepare annual financial reports. With this in mind,
we suggest that we develop a standardized chart of accounts and a
reporting format which includes financial statements, related
disclosures, and detailed instructions for the completion of the
report. The financial statements and instructions can then be
provided to the fee accountants to utilize in preparing the annual
reports. This will relieve the various fire company and squad
treasurers, who serve in a voluntary capacity, of the
responsibility for completing the reports and becoming familiar
with technical accounting issues.
As part of the uniform reporting process, it will be necessary to
establish the basis upon which the financial statements are to be
prepared. Since the Town is required to follow accrual basis
accounting, which provides the most complete financial disclosure,
we suggest that this basis be utilized in preparing the reports.
Utilizing the accrual basis of accounting will require each entity
to prepare a balance sheet which will include items such as
inventory, fixed assets and accumulated depreciation, and accounts
payable. Our review of the existing reports revealed that most of
the fire companies and squads are currently not including a balance
sheet. In order for the December 31, 1994 reports to be
meaningful, it will be necessary to reconstruct a December 31, 1993
balance sheet. Accordingly, our proposal includes the compilation
of an accrual-basis balance sheet for all of the entities as of
December 31, 1993.
We will also review the internal accounting system being utilized
by each entity to ensure that it will provide adequate information
to prepare the year-end reports. Since the burden of the report
preparation will be on the fee accountants, it is not essential
that every entity utilize the same accounting system. As long as
the system provides the proper detail to facilitate the year-end
reporting, the companies and squads could continue using it. The
standardized chart of accounts will allow for consistent
classification of revenues and expenditures, which will facilitate
the preparation of the annual reports.
Finally, after the compilation of the balance sheets and review of
accounting systems, we will issue a management report to the Town
outlining any significant issues or findings as a result of our
work. This could include recommendations as to changes, if any,
that are necessary to the accounting systems. In addition, we
could provide assistance and guidance in the development of annual
operating budgets. Because the accounting and reporting will be in
a prescribed format, the budget should mirror that format.
The services outlined in this letter are rather complex and it is
difficult to estimate the amount of time, and fee, needed to
complete this engagement. Accordingly, we propose to bill the Town
for services at a rate equal to 50% of our standard billing rates,
with a not-to-exceed ceiling of $20,000. If, for example, our fee
using standard rates at the end of the engagement is $30,000, we
would bill the Town $15,000. If on the other hand, our fee using
standard rates at the end of the engagement is $60,000, we would be
limited to the $20,000 ceiling. To a great extent, the time it
will take to complete this engagement will depend on the level of
accounting detail and cooperation received from the individual
entities. Any assistance which the Town can provide will also
serve to help minimize our fees.
We look forward to working with your committee and the Town on this
assignment. Please feel free to contact us if you any questions.
Very truly yours,
Urbach Kahn & Werlin, PC
Lloyd F. Jones, CPA
Shareholder
Duly adopted this 22nd day of August, 1994, by the following
vote:
AYES: Dr. Wiswall, Mr. Caimano, Mrs. Pulver, Mr. Champagne
NOES: None
ABSENT:Mrs. Monahan