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HomeMy WebLinkAbout18- RFP Submission - Annual Independent Financial Audit - JCCSCity of Bozeman Proposal for Audit Services Fiscal Years Ending June 30, 2018 and 2019 JCCS, P.C. Tyler Bryant, Shareholder 3060 Cabernet Drive, Suite 2 Helena, MT 59601 tyler.bryant@jccscpa.com (406) 442-6901 Submitted: March 13, 2018 Page 2 Table of Contents Letter of Transmittal 3 Firm Profile and Qualifications 4-5 Experience and Professional References 6 Scope and Audit Approach 7 Review Letter 8 Additional Data 9-10 Compensation 11 Appendixes A. Resumes of the Audit Team:12-16 Tyler Bryant, CPA, CFE Tony Vanorny, CPA Amanda Manuel, CPA Sam Fallang, CPA Crystal Reichhoff, CPA B. Non-Discrimination Affirmation Form 17 March 13, 2018 City of Bozeman Audit Committee 121 N Rouse Ave Bozeman, MT 59715 LETTER OF TRANSMITTAL We appreciate the opportunity to submit this proposal to serve as the independent certified public accountants for the City of Bozeman, Montana. This proposal addresses the audit services outlined in your request for proposal for the fiscal years ending June 30, 2018 and 2019. The City of Bozeman has an outstanding reputation for excellence in financial reporting and we congratulate you on your accomplishments. We fully understand the work to be performed and we wish emphasize our commitment to meeting all of the City of Bozeman’s requirements. At Junkermier, Clark, Campanella, Stevens, P.C. (JCCS), offering personalized service that is tailored to the specific needs of our clients is our top priority. That is why we view an audit as a way to understand your organization. This understanding allows us to be able to offer value-added analysis and recommendations to improve your operations, internal controls and accounting processes. Our audit approach focuses on the significant elements of the financial statements, which facilitates an efficient audit that demands less of your time. For over 70 years, JCCS has been in the business of helping our clients make better decisions today for a better tomorrow. Many individuals and businesses turn to JCCS due to our heritage of honesty, integrity, accuracy and attention to detail and become long-standing clients because of the personal attention and remarkable service they receive. At JCCS, we look beyond the numbers to help our clients make smarter, better-informed decisions. I,Tyler Bryant, am authorized to make representations for JCCS, and can be reached at tyler.bryant@jccscpa.com or 406-442-6901. We welcome the opportunity to meet with you to discuss this proposal and answer any further questions you might have. Again, we appreciate the opportunity to submit this proposal. Respectfully submitted, Tyler Bryant, CPA, CFEShareholder JUNKERMIER, CLARK, CAMPANELLA, STEVENS, P.C.Certified Public Accountants and Business Advisors 3060 Cabernet Dr. Suite 2 / Helena, MT 59601 Office: (406) 442-6901 / Fax: (406) 442-9690 / jccscpa.com Page 4 Firm Profile and Qualifications About Junkermier, Clark, Campanella, Stevens, P.C. Our firm is one of the oldest and largest local firms in Montana. Founded in 1946, we celebrate over 70 years of extending excellent service to our clients and providing them with industry expertise. We have six offices across the state of Montana located in Great Falls, Hamilton, Helena, Missoula, Kalispell, and Whitefish. In total, our offices employ over one hundred individuals. Our statewide audit division staff is currently comprised of thirty highly qualified professionals, eleven of which comprise our governmental audit staff. We have audit professionals located throughout Montana and as such our firm structure allows us access to statewide expertise from all of our branch offices. Please see the following section outlining the audit team that has been selected for this engagement. Our firm offers a wide variety of professional services from auditing and tax services to management advisory. Our expertise includes working with for-profit, not-for-profit, and governmental entities in accounting, auditing, financial reporting, and taxation. Audit Team Employees of JCCS will perform all of the work on this engagement. In every case possible the same staff will be provided in subsequent years in order to facilitate continuity and efficiency in your audit engagement. The selected audit team will be comprised of the following professionals: Shareholder: Tyler Bryant, CPA, CFE Concurring Shareholder: Tony Vanorny, CPA Manager: Amanda Manuel, CPA Senior: Sam Fallang, CPA Senior: Crystal Reichhoff, CPA Resumes for the above individuals are included in Appendix (A) to this proposal. The firm and individuals listed above are licensed to practice as certified public accountants in Montana. Page 5 Firm Profile and Qualifications Firm Qualifications and Quality Assurance Our firm has been authorized by the Montana State Board of Accountants and the Montana Department of Administration, Government Services Bureau, to conduct governmental audits. We are committed to providing high-quality professional personnel at all levels. Our shareholders, supervisory personnel, and staff- level team members are fully qualified to render the required examination procedures. We will ensure that our staff members are closely supervised, technically qualified, independent, and use due professional care in the performance of their duties. As a member of the Governmental Audit Quality Center of the American Institute of Certified Public Accountants Division for CPA Firms, our clients can be assured that our personnel are committed to professional development and comply with the continuing professional education requirements in accordance with Government Auditing Standards. It is because of this devotion to excellence that we have successfully completed ten consecutive Peer Reviews with unqualified reports, the highest level of report available. For your consideration, a copy of our most recent Peer Review report is presented as Appendix (A) to this proposal. A quality control review is not applicable to our firm at this time. There have been no complaints issued against the personnel assigned to this engagement levied by the Montana Board of Public Accountants or any other regulatory agency. We have not been subject to any federal or state desk reviews of our audits during the last three years. Additionally, there have been no instances of disciplinary action taken or pending against JCCS during the past three years with state regulatory bodies or professional organizations. Page 6 Experience and Professional References Our firm has experience conducting audits of governmental organizations. Services to those clients include financial statement audit services, Uniform Guidance compliance audits, and agreed upon procedures on local building code enforcement programs, car rental concession fees and customer facility charges, and bond certification. The following is a list of clients we have recently with services similar to the audit you are requesting. Please feel free to contact the individuals listed to discuss our services and personnel. Entity Contact Name Telephone # City of Billings, Montana Andy Zoeller (406) 237-6264 City of Great Falls, Montana Melissa Kinzler (406) 455-8476 City of Shelby, Montana Jade Goroski (406) 434-5222 In addition to the entities listed above, we have performed audits of local special districts. These entities and their contact information are available upon request. Page 7 Scope and Audit Approach As our experience indicates, we clearly understand the scope of services to be provided. You can be assured that we will design your audits specific to the City of Bozeman to ensure compliance with all applicable standards and ensure you receive high- quality, efficient, and effective audit services. Scope of Services The audits will be performed in accordance with: · Generally Accepted Auditing Standards as prescribed by the American Institute of Certified Public Accountants · Government Auditing Standards, issued by the Comptroller General of the United States · AICPA Audit & Accounting Guide - Audits of State and Local Governmental Units · OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) Audit Purpose The primary purpose of our audit will be to express our opinion that the general purpose financial statements, as a whole, present fairly, in all material respects, the financial position, results of operations and cash flows of the City of Bozeman in conformity with GAAP for local governments and all applicable GASB statements. The audit is subject to the inherent risk that errors or irregularities may occur and not be detected. If, for any reason, we feel it necessary to give other than an unmodified opinion, we would clearly state the reason for the qualification and discuss it with you prior to issuing the report. Risk Based Audit Approach Our audit procedures are based upon our risk assessment of the significant elements of the financial statements as identified by the needs and expectations of the users of the financial statements. In addition, we will assess what assertions are relevant over the identified significant elements, what type of controls should be in place, document the controls in place, test the controls, and then develop audit procedures to be used during our preliminary review of the financial statements. Based upon the results of the preliminary procedures, we will determine the nature, timing, and extent of audit procedures that will enable us to gather sufficient audit evidence to issue an opinion. Our approach allows us to demand less of your time by focusing our work on the significant elements. Supervision Our audit procedures will ensure that our staff members are closely supervised, technically qualified, independent, and use due professional care in the performance of their duties. A shareholder of JCCS will be directly involved in every stage of the audit, including planning, fieldwork and reporting. Page 9 Additional Data The JCCS Difference Excellence is demanded from everything we do and from all of our employees. We pride ourselves on providing value-added services to our clients. We look at the audit as a way to learn your organization’s business, not just your accounting processes. Our audit approach facilitates an efficient and unobtrusive engagement to help you get back to your everyday business. Our professionals are also available year-round to help with any accounting related issues that may come up before, during, and after the audit. We take communication with our clients seriously and respond to all inquiries in a timely manner. It is through this continued and effective communication that we serve as close business advisors to our clients, not just accountants. As people who live and work in Montana, we support and appreciate the City of Bozeman for how it impacts the state economy, and the consumer and entertainment opportunities it attracts. Value-Added Services At JCCS, we pride ourselves on providing value- added services for our clients. We provide analysis and recommendations for issues that come to our attention relating to efficiencies in your operations, internal controls, and accounting processes. In addition, when you are a client of JCCS you have access to our personnel all year to assist with issues that may arise. Furthermore, we conduct no -cost personalized presentations to help educate our clients on various topics including business practices, recent accounting pronouncements, compliance, and other technical accounting topics. Equal Employment Opportunity Policy JCCS affirms that we will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and recognizes the eventual contract will contain a provision prohibiting discrimination as described above and that this prohibition on discrimination will apply to the hiring and treatment of the submitting entity’s employees. JCCS has in place an equal opportunity employment policy that applies to all Firm activities. This policy is in the current policies and procedures manual, which is required to be read and followed by all employees of JCCS. Required Communications Letter At the conclusion of our engagement, we will issue a required communications letter which is addressed to the audit committee and City Commission. This letter discusses our observations during the audit and our recommendations for improving operations, internal controls, the accounting system, and other aspects we may notice. Before publishing our required communications letter, we will review it with appropriate City personnel so that we can solicit their comments and cooperation in making any needed changes. In the event any of our services were to disclose fraud or other irregularities, we will promptly advise the audit committee and City Commission. Page 10 Additional Data Confidentiality At JCCS, we take the confidentiality of our clients seriously. We will not publish, reproduce, or otherwise divulge information obtained in any manner. Only JCCS employees on the audit engagement team will have access to the information obtained during the audit. Furthermore, we utilize and promote the transmission of documents in an electronic format to the extent possible. With this, we use a secure file sharing program to facilitate secure transmission of all electronic documents. We will establish a secure link for these transmissions to promote efficiency and ensure confidentiality of the information. Continuing Professional Education We believe that CPE is more than just a requirement and we strive to attend continuing education classes that will enhance our skills and allow us to provide more value to our clients. All members of the firm who are certified public accountants are in compliance with the Montana Board of Public Accountants’ CPE requirements. A list of continuing education courses for the engagement personnel is available upon request. Independence JCCS is independent of the City of Bozeman and any of its component units, as defined by Government Auditing Standards.We continually monitor our independence with our clients and have each firm employee affirm their independence in writing on an annual basis. Audit Timeframe The timing of the audit schedule is dependent upon the preparedness of your year-end accounting records. Provided the accounting records are ready and available, the expected timeline for the audit would be as follows: · July - Entrance conference with City of Bozeman officials to discuss audit timeline · August - JCCS submits a request for documents and confirmations · September/October - Fieldwork performed including review of internal control procedures · November - Meeting with Finance Director and Controller; draft audit reports and CAFR provided to City of Bozeman · Prior to first Monday in December - Issue final audit reports Work Papers We will retain the audit work papers for this engagement for a minimum of five years from the date of our report. These work papers are the property of JCCS and constitute confidential information. Page 11 Compensation JCCS is very familiar with the nature of funding, operations and reporting requirements of the City of Bozeman. Our prices are based upon the time expended on an engagement at appropriate hourly rates for the individuals involved, which are based on our understanding of your operations, assistance from your personnel, and the condition of your records. The following summarizes the JCCS proposed hours and staff rates for services described in your request for proposal. Our estimated hours to complete the June 30, 2018 and 2019 audits by classification of employee are as follows: The following summarizes our proposed price for the audit and non-attest services described in the request for proposal. Out-of-pocket costs have been included in the audit price and will not be billed separately. The pricing schedule listed herein includes the following other services: · Drafting the Comprehensive Annual Financial Report (CAFR), including full note disclosures · Building permits fund agreed-upon procedures · Reviewing the City of Bozeman’s internal control procedures and internal audits of one area each year as selected by the City of Bozeman · Providing 20 copies of the audit report and management letter including electronic PDF copies · Providing an electronic version of the information and format used to prepare the CAFR · Presentation of the final reports to the audit committee and City Commission June 30, 2018 $48,000 June 30, 2019 $49,250 Hours Rate Shareholder 55 $250 Manager 145 $190 Senior 95 $150 Staff 105 $100 Page 12 Appendix A - Resumes of the Audit Team TYLER S. BRYANT Certified Public Accountant, Certified Fraud Examiner Present Position Shareholder, Helena Experience Mr. Bryant has experience in auditing and accounting with an emphasis in the governmental, non-profit, private businesses, and credit union industries. He also prepares financial statements, including analysis, adjustment, and related comments. His tax experience includes preparation of individual, non-profit, corporation, and partnership federal and state tax returns. Education Master of Professional Accountancy Montana State University, Bozeman, MT B.S. Business Administration, Major in Accounting Montana State University, Bozeman, MT Continuing education courses through Montana Society of Certified Public Accountants (MSCPA), American Institute of Certified Public Accountants (AICPA) sponsored courses. Mr. Bryant has met all educational requirements required by the Montana Board of Public Accountants and the AICPA. Community Mr. Bryant is the past President of the Great Falls Society of CPAs, former Treasurer for the Confero Sports Foundation, and formerly a member of the Financial Literacy Committee for the Montana Society of CPAs. Page 13 Appendix A - Resumes of the Audit Team TONY D. VANORNY Certified Public Accountant Present Position Shareholder/Director of Audit/Board of Directors, Flathead Valley Experience In practice since 1996, Mr. Vanorny is the current firm-wide Director of Audit Practice and a member of the Board of Directors and audit and accounting committee. He has experience in audits of commercial, non-profit and governmental entities, preparation of audited, reviewed and compiled financial statements, including related notes to financial statements. His specific industries of focus are HUD, Rural Development, tax credit low-income housing projects, insurance companies, Uniform Guidance audits, non-profit organizations, credit unions, and HUD regulated lenders. His tax experience includes preparation of individual, nonprofit partnership and corporate federal and state tax returns. Education B.S. degree in Business Administration, Major in Accounting Montana State University, Bozeman, Montana Continuing education courses through Montana Society of Certified Public Accountants (MSCPA), American Institute of Certified Public Accountants (AICPA), Junkermier, Clark, Campanella, Stevens, P.C. sponsored courses and other industry specific courses. Community Past President of Lions International – Sun Riser Chapter, Past Chair of the Administrative Committee of Leadership Flathead, member of the MSCPA, member of the MSCPA Peer Review Committee, and member of the AICPA. Page 14 Appendix A - Resumes of the Audit Team AMANDA L. MANUEL Certified Public Accountant Present Position Manager, Great Falls Experience Ms. Manuel has experience in auditing and accounting with an emphasis in the credit union, construction, private business, governmental, and non-profit industries. She also prepares financial statements, including analysis, adjustments, and related comments. Her tax experience includes preparation of individual and corporation federal and state tax returns. Her bookkeeping experience includes various construction entities. Education Master of Professional Accountancy Montana State University, Bozeman, MT B.S. Business Administration, Major in Accounting Montana State University, Bozeman, MT Continuing education courses through Montana Society of Certified Public Accountants (MSCPA) and American Institute of Certified Public Accountants (AICPA) sponsored courses. Ms. Manuel has met all educational requirements required by the Montana Board of Public Accountants and the AICPA. Community Ms. Manuel is a member of the AICPA,the Vice President of the Great Falls Society of CPAs and works in the Great Falls community as a volunteer in various capacities. Page 15 Appendix A - Resumes of the Audit Team PAUL SAM FALLANG Certified Public Accountant Present Position Senior, Great Falls Experience Mr. Fallang has experience in auditing and accounting with an emphasis in the governmental and non-profit industries. He also prepares financial statements, including analysis, adjustments, and related comments. His tax experience includes preparation of individual, corporation, and partnership federal and state tax returns. Education Bachelor of Business Administration, Concentration in Accounting Walla Walla University, College Place, WA Continuing education courses through Montana Society of Certified Public Accountants (MSCPA), American Institute of Certified Public Accountants (AICPA) sponsored courses. Mr. Fallang has met all educational requirements required by the Montana Board of Public Accountants and the AICPA. Community Mr. Fallang is a member of the AICPA, member of the MSCPA, and member of the Great Falls Chapter of CPAs, and volunteers as the Treasurer for the Great Falls Seventh-day Adventist Church. Page 16 Appendix A - Resumes of the Audit Team CRYSTAL REICHHOFF Certified Public Accountant Present Position Senior, Bozeman Experience Ms. Reichhoff has experience in auditing and accounting with an emphasis in the governmental, non-profit, and private businesses industries. She also prepares financial statements, including analysis, adjustments, and related comments. Her tax experience includes preparation of non-profit, individual, and corporation federal and state tax returns. Her bookkeeping experience includes various agricultural and construction entities. Education B.S. Business Administration, Major in Accounting Montana State University, Bozeman, MT Continuing education courses through Montana Society of Certified Public Accountants (MSCPA), American Institute of Certified Public Accountants (AICPA) sponsored courses. Ms. Reichhoff has met all educational requirements required by the Montana Board of Public Accountants and the AICPA. Community Ms. Reichhoff is a member of the AICPA, a member of the MSCPA, and a member of the Bozeman Chapter of CPAs, and works in the Bozeman community as a volunteer in various capacities.