1987-129 1476L
AN ORDINANCE AUTHORIZING THE MAYOR TO ENTER INTO AN AGREEMENT
BETWEEN THE CITY OF DENTON AND DELOITTE, HASKINS, AND SELLS AS
AUDITORS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1987, AND
DECLARING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the City Council of the City of Denton,
Texas desires to appoint Deloitte, Haskins and Sells as the
auditors for the City of Denton, Texas for the f~scal year ending
September 30, 1987
SECTION II That Deloitte, Haskins and Sells ~s hereby
designated as the auditing f~rm for the C~ty of Denton, Texas for
the fiscal year ending September 30, 1987 in accordance w~th the
terms and provisions of the commitment letter of Deloitte,
Haskins and Sells dated July 7, 1987, and the cond~tlons set
forth ~n the Proposal to Provide Professional Serwces, cop~es of
which are attached hereto and made a part hereof for all purposes
SECTION III That th~s ordinance shall become effective
~mmedlately upon its passage and approval
PASSED AND APPROVED th~s the ~_~_~day of ~, 1987
ATTEST
JE~IFER ~J~LTERS, CITY S~tRETARY
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVlTCH, CITY ATTORNEY
DelL'te
Haskins Sells
InterFirst Tower
801 Cherry Street Sude 2340
Fort Worth Texas 76102 6801
(817) 336 2531
Metro 654 2777
Telex 758612
The Honorable Ray Stephens July 7, 1987
and Members of the City Council
City of Denton
215 E McKlnney Street
Denton, Texas 76201
Dear Mayor Stephens and Council Members
This letter will confirm our understanding of the
arrangements covering our examination of the financial
statements of City of Denton ("City") for the year ending
September 30, 1987
We will examine the City's combined financial statements for
the year ending September 30, 1987 Our examination will
be made in accordance with generally accepted auditing
standards and the provisions of Standards for Audit of
Governmental Organizationsr Programs, Actlvltles and
Functions, promulgated by the U S Comptroller General, as
they pertain to financial audits Accordingly, the
examination will include such tests of the accounting
records and such other auditing procedures as we consider
necessary in the circumstances The objectives of our
examination are to express an opinion on the financial
statements of the C~ty, as well as render a report on
compliance of the City with the terms and requirements of
certain Federal laws
Our procedures will include, among others, tests of
documentary evidence supporting the transactions recorded in
the accounts, tests of tax receipts and related assessment
rolls, and direct confirmation of receIvables, grant
receipts and certain other assets and liabilities by
correspondence with selected taxpayers, creditors, legal
counsel and banks At the conclusion of our examlntlonr we
will request certain written representations from you about
the financial statements and matters related thereto
In addition, we will review the City's ~mplementatzon of our
recommendations presented in our Report to Management for
the year ended September 30, 1987 This review will occur
in mid-fiscal year and be determined by the City's Audit
Committee We will present our findings to the Audit
Committee
The Honorable Ray Stephens
and Members of the City Council July 7, 1987 2
Before commencing our examination we would be pleased to
meet with you to review and d~scuss the scope of our audlt
procedures in more detail
The fair presentation of financial poslt~on and results of
operations in conformity wlth generally accepted accounting
prlnclples is management's responsibility Management is
responsible for the development, implementation and
maintenance of an adequate system of ~nternal accounting
control and for the accuracy of the f~nanclal statements
Although we may advise you about appropriate accounting
princIples and their applications, the select~on and method
of application are responsibilities solely of management
Our engagement is subject to the inherent risk that material
errors, irregularities or Illegal acts, including fraud or
defalcations, ~f they ex~st, will not be detected
However, we w~ll inform you of any such matters that come to
our attention
Fees for our services are based on per diem rates, plus
out-of-pocket expenses, all of which will be billed as our
work progresses Our maximum fee for th~s engagement is
$41,700 Should an ~ncrease ~n the scope of our services
be requlred, we would provide you w~th a change in our fee
prior to commenclng the work
During the course of our engagement, we may observe
opportunltles for economy ~n or ~mproved controls over your
operations We w~ll bring such matters to the attention of
the approprlate level of management ~n writing
If you Intend to publish or otherwise reproduce the
f~nanclal statements and make reference to our firm, you
agree to provide us with printers' proofs or masters for our
review and approval before printing You also agree to
provlde us with a copy of the final reproduced material for
our approval before ~t ~s d~strlbuted
Please ~ndlcate your agreement to these arrangements by
signing the attached copy of thls letter and returning it to
us
The Honorable Ray Stephens
and Members of the City Council July 7, 1987 3
We appreciate your confidence in your appointment of us as
your certified public accountants and look forward to
worklng with you and your staff
Your very truly,
Date