HomeMy WebLinkAbout18- RFP Submission - Annual Independent Financial Audit - Denning, Downey & Associates A PROPOSAL FOR PROFESSIONAL
AUDITING SERVICES
OF THE
CITY OF BOZEMAN
Submitted by:
Denning,Downey&Associates,P.C.
Certified Public Accountants
P.O. Box 1957
Kalispell,MT 59903-1957
(406) 756-6879
dda@ddaudit.com
March 13,2018
Contact:
Robert K. Denning, CPA, CGFM, CFF, CITP
bdenning@ddaudit.com
Denning, Downey & Associates, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
P.O. Box 1957 Kalispell, HT 59903-1957
(106) 756-6879•FAX(406)257-7879•E-Mail ddn a,ddaudil.com
Robert K Denning, CPA, CGFM, CFF, CITP
TABLE OF CONTENTS
CoverLetter.................................................................................... 1-2
License to Practice in State of Montana................................................ 3
Company Profile, Staff Qualifications and Experience
FirmProfile......................................................................... 3
Experience........................................................................... 3
References........................................................................... 4-5
Professional Certifications....................................................... 6
Key Personnel: Years of Relevant Experience......................................... 6
Methodology:
Independence........................................................................ 7
Conflictof Interest................................................................. 7
Strengths............................................................................. 7
Audit Philosophy................................................................... 7
Relateand Interact................................................................. 7
Communication..................................................................... 7
Strategyfor the Future............................................................ 8
Staff Training and CPE........................................................... 8
GASB934 to #85.................................................................... 8
Results of Peer Review............................................................. 8
ContactInformation................................................................ 8
PeerReview Opinion......................................................................... 9
Denning, Downey & Associates, P.C.
CERTIFIED PUBLIC A CCO UNTANTS
P.D. Box 1957 Kalispell, MT 59903-1957
(406) 756-6879•FAX(406)257-7879•E-Mail dda c,ddaudit.com
Robert K Denning, CPA, CGFM, CFF, CITP
March 13, 2018
City of Bozeman
Brian LaMeres, Controller
121 N Rouse Ave.
Bozeman, MT 59715
Dear Mr. LaMeres:
We are pleased to present our proposal for an audit of the financial statements of the City of
Bozeman. Our proposal for fiscal year ending June 30, 2018 and June 30, 2019 is as follows:
Cost of Hours for
Fiscal Year Federal Federal
Audit Audit
June 30, 2018 $38,000 304
June 30, 2019 $38,000 304
We will perform a financial audit in accordance with generally accepted auditing standards; the
standards for financial audit contained in Government Auditing Standards, issued by the U.S. General
Accounting Office. If we are contracted to perform a federal audit, we will perform a financial audit
in accordance with accounting standards generally accepted in the United States of America; the
standard for financial audit contained in Government Auditing Standards, issued by the U.S. General
Accounting Office and the Single Audit Act of 1996 and the provisions of the Uniform Guidance."
Our proposal assumes that the financial statements are complete and in balance, and that unusual
problems will not be encountered during the audit. If, during the course of the audit, material errors
or theft is encountered, we will consult with you and mutually agree as to the extent and cost of any
additional work required.
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The following services are not included in the audit of the financial statement but can be provided at
an additional fee:
• Audit of a component unit
• Year-end closing assistance including adjustments
• Calculation of the OPEB liability and related disclosures/adjustments
We appreciate the opportunity to present this proposal. Should you have any questions regarding this
proposal, or any other financial matter, please do not hesitate to call. Upon acceptance of this
proposal,please contact our office and we will promptly send an engagement letter or a standard audit
contract.
Sincerely,
Robert K. Denning, CPA, CGFM, CFF, CITP
Denning, Downey&Associates, CPA's, P.C.
RD/cc
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- - State of Montana This certificate verifies licensure as:
13u1ipess Standards Division FIRM
Boatd of Public Accountants
'License 4: PAC-FIRM-LIC-840
Sta t,_ Active
Expl : 12131/2018
DENNING DOWNEY AND ASSOCIATES CPAS
PC
PO BOX 1957
KALISPELL,MT 59903
M.niam Dep ma-1 (
LABOR&INDUSTRY
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Company Profile, Staff Qualifications and Experience
Firm Profile:
Denning, Downey and Associates, CPA's PC started business in January 1994 with a
focus on servicing Montana local governments and school districts complex and
continually changing accounting and auditing needs. 20 years later, Montana local
government's accounting needs account for 100% of our business.
We have offices located in Kalispell and Helena Montana.
A summary of the staff positions are detailed below:
Audit Division (100% of total firm revenues)
Shareholders 1
Audit Managers 1
Audit Seniors 3
Paraprofessional staff 4
Support staff 4
Total audit division 13
Experience:
In the past year we audited
• 13 of the 56 Counties,
• 8 of the 91 Cities and Towns, and
• 45 of the 218 School Districts
of the State of Montana governments that are required to have audits per the Montana
Department of Administration audit status report. Those numbers represent
approximately 16% of the audited local governments in Montana. Our audit staff of
13 is responsible for auditing more Montana local governments than any other firm in
the State.
Reference: The following is a partial list of our clients; please feel free to contact
any of them for a reference.
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Counties
Beaverhead County Lincoln County
Broadwater County Madison County
Garfield County Ponders County
Judith Basin County Richland County
Lake County Sanders County
Liberty County Sheridan County
Toole County
Cities and Towns
City of Boulder Town of Philipsburg
City of Sidney Town of Stanford
City of Whitefish Town of Twin Bridges
Town of Eureka Town of Virginia City
School Districts
Townsend School District Swan Lake-Salmon School District
Anaconda School District Augusta School District
West Valley School District Troy School District
Deer Park School District Libby School District
Fair-Mont-Egan School District Eureka School District
Swan River School District Fortine School District
Kalispell School District McCormick School District
Cayuse Prairie School District Sunset School District
Helena Flats School District Swan Valley School District
Kila School District Seeley Lake School District
Somers School District Whitewater School District
Bigfork School District Stevensville School District
Whitefish School District Victor School District
Evergreen School District Darby School District
Philipsburg School District Lone Rock School District
Havre School District Florence-Carlton School District
Rocky Boy School District Thompson Falls School District
Browning School District Trout Creek School District
Belgrade School District Hot Springs School District
Ronan School District Smith Valley School District
Upper West Shore School District Trego School District
Pleasant Valley School District Laurel School District
Wolf Point School District Dodson School District
Arlee School District West Yellowstone School District
Valley View School District Yaak School District
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Key Personnel: Years of Relevant Experience
Robert K. Denning, CPA, CGFM, CFF, CITP
Bob is a 1987 graduate of Pacific Lutheran University in Tacoma, Washington. Prior
to becoming a partner with Denning, Downey & Associates, CPA's, P.C., Bob spent
four years with Hughes, Woodring, and Associates of Tacoma, Washington and over
two years with Local Government Services Bureau of the Montana State Department
of Commerce. While employed with Hughes, Woodring, and Associates, his duties
included auditing for-profit, not-for-profit, and government subsidized entities,
compilations, reviews, management advisory services, and tax preparation. During his
years with Local Government Services, Bob was a senior auditor and served as in-
charge auditor of many local government audits. He has performed seminars on
GASB 14, 18, 31, and 34. Bob is a member of the Montana Society of CPA's, the
Washington society of CPA's, the AICPA, and the Association of Government
Accountants (AGA), is a Certified Government Financial Manager, (CGFM), is a
Certified in Financial Forensics (CFF) and is a Certified Information Technology
Professional (CITP).
Governmental Accounting Experience:
Bob has amassed in excess of 50,000 hours of governmental audit experience over the
past 30 years.
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Methodology
Independence:
We require that all professional staff members be familiar with, and adhere to, the
independence rules, regulations, interpretations, and rulings of the AICPA, the State of
Montana Board of Public Accountants, and the U.S. General Accounting Office. Each
member of our staff is independent of your entity, and each individual assigned to the
audit will sign an independence representation for the engagement.
Conflict of interest:
Denning, Downey & Associates CPA's PC is aware of and complies with the
independence rules of the AICPA, State Board of Accountancy and the U.S. General
Accounting Office regarding possible conflicts of interest.
Strengths:
The strength of our firm lies in our overall auditing expertise. Individually and
collectively we have a strong understanding of internal control, both conceptually and
the practical aspects; of audit procedures and techniques; of federal program audit
requirements; and of state legal compliance requirements. We have a thorough audit
review process starting with the assignment of an owner as "In-Charge" of every
client. The "In-Charge" ensures that all appropriate audit procedures are performed,
the work is complete, and all conclusions are proper. Upon completion of the field
work, an overall audit review and technical review of the audit report is performed by
our in-house "audit reviewer." The audit reviewer is responsible for informing all
audit staff of potential deficiencies in the work performed.
Audit Philosophy:
Our firm is committed to conducting audits of the highest quality in the most efficient
and effective manner possible. Efficiency and effectiveness is gained through
extensive experience with similar entities and an organized planning process
specifically designed to each individual audit. We are committed to providing
technical assistance on an on-going basis. Although we define and utilize the concept
of materiality in conducting our audits, we also firmly believe that the internal control
work should include all cash collection areas, regardless of the amount collected and
some testing should be performed in these areas. Denning, Downey & Associates,
CPAs P.C.'s philosophy that audits should be conducted in a friendly, helpful, but
completely objective and professional manner has helped us to establish an excellent
reputation in our field of expertise. Each audit requires a different approach dependent
on our risk assessment and planning process including our assessment of internal
controls and compliance requirements relevant to the entity being audited.
Relate and Interact:
We will establish a professional, friendly, and courteous relationship with your
administration and employees. Because of our many years of experience and
individual personalities, we will conduct the audit with the least disruption possible to
your employees. You will be kept informed on the audit progress and timely informed
on any problem or potential problem areas of the audit. All audit findings will be
reviewed and explained to the appropriate individuals.
Communication:
It is our philosophy to communicate fully with appropriate client personnel at the
proper time as the audit progresses. We encourage full discussion of sensitive and
complex issues in order to resolve all audit issues. The findings and recommendations,
if any, that may be included in the various auditors' reports, including the management
letter, will be constructive in nature, intended to be helpful, and informative.
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Strategy for the Future:
The base of our practice is, and will continue to be, in auditing and consulting of
Montana local governments. We keep on top of emerging local government and
auditing issues by subscribing to the appropriate reference material and by maintaining
a complete library. In the past three years we have kept our clients current by
providing annual update seminars.
Staff training and Continuing Professional Education (CPE):
Denning, Downey & Associates CPA's PC is committed to providing training for all
staff in order to maintain the highest quality of audit possible.
Governmental Auditing Standards requires all staff to have at least 24 hours of CPE
related to government accounting every two years.
Our firm requires that all professional staff have at least 80 hours of governmental
CPE every two years. In addition we require that all non-professional staff have at
least 24 hours of governmental CPE annually.
A complete listing of courses taken by the shareholders of the firm is available upon
request.
GASB #34 to#85:
Since 1999, the GASB has been quite busy issuing 48 additional statements. We keep
current on all the new requirements and will provide technical advice on topics that
affect you. We present a GASB update which is available to all of our clients.
Results of Peer Review:
Our most recent peer review was completed in August 2016, and received an
unqualified opinion. A copy of the opinion is provided in this proposal. The Firm has
never been the object of any disciplinary action.
Contact information:
Robert K Denning, CPA CGFM, CFF, CITP is the shareholder assigned to your
engagement. He will be your main contact, feel free to contact him at any time.
Bob's Phone Numbers:
Office 756-6879 Ext. 101
Cell 253-6208
Home 756-8095
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Anderson
.
it t 0 0
1810 E Schneidmiller Ave.Ste.310
Post Falls,Idaho 83854
208-777-1099(phone)208-773-5108(fax)
System Review Report
August 31, 2016
To Denning, Downey&Associates CPAs, PC
and the Peer Review Committee of the Montana Society of Certified Public Accountants
We have reviewed the system of quality control for the accounting and auditing practice of Denning,
Downey& Associates, CPAs, PC (the firm) in effect for the year ended May 31, 2016. Our peer review
was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews
established by the Peer Review Board of the American Institute of Certified Public Accountants.As a part
of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature
and extent of our procedures. The firm is responsible for designing a system of quality control and
complying with it to provide the firm with reasonable assurance of performing and reporting in conformity
with applicable professional standards in all material respects. Our responsibility is to express an opinion
on the design of the system of quality control and the firm's compliance therewith based on our review.
The nature, objectives, scope, limitations of, and the procedures performed in a System Review are
described in the standards at www.aicpa.org/prsutnmary.
As required by the standards, engagements selected for review included engagements performed under
Government Auditing Standards.
In our opinion,the system of quality control for the accounting and auditing practice of Denning. Downey
&Associates CPAs, PC in effect for the year ended May 31,2016, has been suitably designed and
complied with to provide the firm with reasonable assurance of performing and reporting in conformity
with applicable professional standards in all material respects. Firms can receive a rating of pass,pass
with deficiency(ies)or fail. Denning, Downey&Associates CPAs, PC has received a peer review rating of
pass.
Anderson Bros. CPA's, P.A
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