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HomeMy WebLinkAbout2024-4199C O M PAo F ebruary 2.2024 City of Columbia Heights 3989 Central Ave NE Columbia Heights, MN 55421 We are pleased to confirm our understanding ofthe terms ofour engagement and the nature and limitations of the services Redpath and Company, LLC is to provide for the City of Columbia Heights, Minnesota (City). We will apply the procedures listed in the attached schedule to assist the City in determintng compliance with established intemal controls for the Police Property Room. 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 to determine that the Police Property Room controls have been implemented. Our engagement to apply agreed- upon procedures will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA). Those standards require that we obtain your written agreement to the procedures to be applied and your acklowledgment that those procedures are appropriate for the intended purpose ofthe 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 on the Police Property Room controls. In addition, we have no obligation to perform any procedures beyond those to which you agree. We plan to begin our procedures on approximately July 15, 2024 and, unless unforeseeable problems are encountered, the engagement should be completed by September 30,2024. 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 City of columbia Heights. 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 additionat 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 ofspecified parties. HA l.-l Contract #2024-4199 City ol Columbia Heights Thc Police Property Room Contract for Agreed-Upon Procedures Page 2 There may exist circumstances that, in our professional judgment, rvill require we withdraw from the engagement. Such circumstanccs include the follorving: You refuse to provide written agreement to the procedures alld acknowledge that they are appropriate for the intended purpose of the engagement. You fail to provide requested rvritten representations. or we conclude that there is sufficient doubt about the competence, integrity. ethical values. or diligence ofthose providing the written representations, or we co:rclude that the written representations provided are otherwise not reliable. We determine that the description ofthe procedures perfomred. or the corresponding findings are misleading in the circumstances of the engagement. We determine that restrictions on the perfbrmance ofprocedures are not appropriate. An agreed-upon procedures engagement is not designed to detect instances of fraud or noncornpliance with laws or regulations; however, should any such matters come to our attention, we will communicate thern in accordance with professional standards and applicable law. ln addition. if. iu connection with this engagement, matters come to our attention that contradict the City's Police Property Roorn compliance with established controls, we will communicate such matters to you. You are responsible for establishing controls tbr the Police Property Room. In addition, you are responsible for providing us with (l) access to all information of which you or the appropriate party are aware that is relevant to the perfonnance 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 the entity from whom we detemrine it necessary to obtain evidence relating to perlomring those procedures. At tlte conclusion ofour engagement, we will require certain writteu representations in the fomr of a representation letter fiom management that, among other things. will confirm management's responsibility for establishin-e and cornplying with intemal controls for the Police Property Room. Rebecca Petersen is the engagement director and is responsible for supen'ising the engagement and signing the report or authorizing another individual to sign it. City of Columbia Heights The Police Property Room Contract for Agreed-Upon Procedures Page 3 We estimate that our fees for these services will be $8.500. You will also be billed for travel and other out-of-pocket costs such as courier fees. The fee estimate is based on anticipated cooperation from your persontrel and the assumption that unexpected circumstances will not be encottntered during the engagement. 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. In accordance with our firm policies, work may be suspended ifyour account beconres 60 days or more overdue and u,ill not be resumed until your account is paid in futt. If we elect to terminate our services for nonpayment. our engagement will be deemed to have been completed upon wntten notification of terminatiou even if we have not completed our report. You will be obligated to compeusate us for all time expended a:rd to reimburse us for all out-of-pocket expenditures through the date of termination. We appreciate the oppornrnity to assist you and believe this letter accurately summarizes the significant terms ofour engagement. Ifyou have any questions, please let us know. lfyou agree with the terms ofour engagement as described in this letter, please sign this letter and retum it to us. If the need for additional procedures arises, or the procedures need to be modified, our agreement with you will need to be revised. It is customary for us to enumerate these revisions in an addendum to this letter. Sincerely, REDPATH AND COMPANY, LLC Rebecca M, Petersen, CPA RMP/tgs RESPONSE: This letter correctly sets fonh the understanding of The City of Columbia Heights, MN. eh*- Sign c Title: Date: lert Datc Signed: Erhibit A Property Roorn Agreed Upon Proccdures l. Obtain a copy of Property Room Policies and Procedures Manual. 2. Security of Property Room: a. Obtain understanding ofaccess risks and the existing controls relating to access risks (i.e. key or access card controls, access logs documenting entry inlo the property room. after-hours access controls. alarms and surveillance cameras/videos, enhanced security area). b. Select a sample ofdays and perform test to detennine access controls are being adhered to and functioning as designed including, inspecting the access log for compliance with access control procedures and conducting an inventory of keys and a review/audit of the keyiaccess code log. and monitoring that keys/access codes were changed when warranted. 3. Packaging: a. Obtain an understanding ofpackaging requirements for the City's Property Room Policies and Procedures Manual. b. Perfomr tests to determine packaging requirements are adhered to, which may include the following: i. Is currency uniquely packaged and sealed'l Do currency packages have a cash count listed by denomination and total, and specifically noting the presence ofany suspected counterfeit bills or buy funds'l Is there a two- person rule employed when counting. opening, or transferring currency? ii. Are drugs uniquely packaged and sealed? Is there a two-person rule employed when handling drugs? iii. Is evidence that is a potential biohazard plainly marked with a biohazard label? Are specitic protocols tbr handling needles and syringes specified in the procedures? iv. Are fireanns unloaded before they are submitted to the property and evidence room. and tagged as inspected and unloaded? 4. Documentation: a. Obtain an understanding ofthe documentation requirements per the City's Propefiy Room Policies and Procedures Manual. b. Select a sample of case files and determine the following docurnentation is present: i. The case number and incident rype (e.g., felony, gross misdemeanor, misdemeanor, juvenile), and whether the property is evidence, ploperty subject to tbrfeiture, found property, or property held for sat'ekeeping; ii. The date the property was seized, the date ofthe offense, and the date the property was received by the property and evidence room; iii. The investigating and/or booking otficer's name and/or badge number; iv. The victint, the suspect, the owner ofthe property, and the finder ofthe property; v. A unique property and evidence room identification nurnber; and Erhibit A vi. A detailed description ofthe property, including: o The nrake, model, and serial nurnber ofany firearms; and o A cash count ofcurrency listing the denominations ofthe cash. c. Select a sample of items in the property room, trace items back to case files and determine the following documentation is present: i. The case number and incident type (e.g., felony, gross misdemeanor, misdemeauor. juvenile), and whether the property is evidence. property subject to forfeiture, fbund property, or property held tbr safekeeping; ii. The date the properry was seized, the date ofthe ofl'ense, and the date the property was received by the property and evidence room; iii. The investigating and/or booking officer's name and/or badge number; iv. The victim, the suspect. the owner of the property, and the finder of the property; v. A unique property and evidence room identification number: and vi. A detailed description ofthe property, including: o The make, model, and serial number ofany firearms; and r A cash count ofcurrency listing the denominations ofthe cash. 5. Tracking Systerns: a. Does documentation procedures describe how the property and evidence room is tracked? i. The location ofthe property/evidence wi:hin the property and evidence room; ii. The chain of custody of the property/evidence, including documentation about any time the property/evidence is released fiom the property and evidence room; iii. The legal status ofthe property. including the status ofany legal proceedings related to the property or evidence; and iv. The disposition ofall property and evidence, including who authorized the disposition ofthe property. the date the authorization was obtained, and veriflcation that the disposition ofthe property occurred as authorized. 6. Disposition of Property: a. Obtain an understanding ofthe disposition requirements per the City's Property Room Policies and Procedures Manual. b. Selecting a sample ofclosed or inactive files, trace items fronr the file through the tracking system to the location ofthe property, or if final disposition ofthe property has occurred, verifying the documentation about the property's disposition. 7. Inventory Obsewation: a. Obtain a complete inventory of the items in the property room and select a sample of items for physical observation to determine accuracy of inventory list.