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HomeMy WebLinkAbout18- RFP Submission - Annual Independent Financial Audit - Anderson ZurmuehlenMarch 16, 2018 A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO: City of Bozeman Firm Name & Contact Information: Anderson ZurMuehlen & Co. P.C. William (Bill) Mills, Shareholder 1019 East Main Street, Suite 201 Bozeman, MT 59715 406.556.6160 bmills@azworld.com SECTION 1: Page 2A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN PAGE NUMBER SECTION 1: Letter of Transmittal Letter of Transmittal 4 -5 Profile of the Proposer Firm Profile 7 Certification of Qualifications 8 Summary of the Proposer’s Qualifications Service Team Qualifications 10 Relevant Client Experience 11 Scope Engagement Approach 13 –14 Timeline,Communication & Reporting 15 Review Letter Peer Review 17 -18 Additional Data Local Government Experience & Impact 20 Quality Assurance Practices 21 Client Service Commitment 22 SECTION 2: Compensation Proposed Professional Fees 24 Appendix Anderson ZurMuehlen Services Overview 26 Engagement Team Detailed Bios 27 –30 Table of Contents Letter of Transmittal Page 4A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN March 16, 2018 City of Bozeman Attn: Mr. Brian LaMeres, Controller 121 North Rouse Avenue Bozeman, MT 59715 Dear Mr.LaMeres and members of the audit committee: We thank you for the opportunity to present our proposal to continue provide professional services totheCityofBozeman(“the City”)and specify our qualifications.We understand your needs are for an annual independent audit of the City’s financial records for the years ended June 30,2018 and June 30,2019. Distinctly Qualified•Local governments,including cities,are an area of specialization for our firm and we have devotedresourcestoenhancingourskillsinthisuniquesector.We offer a comprehensive suite ofintegratedaudit,compliance and consulting services to a full range of public sector clients fromcities,counties,school districts,airport authorities,and more.Currently,our firm conducts approximately 20 local government entity audits annually and serves numerous other local government entities in various capacities. •Our team is widely recognized across Montana for its deep understanding of governmental financialreportingandauditingandourexperienceillustratesourdedicationtothepublicsector.AndersonZurMuehlenisactiveinourlocalgovernmentcommunitiesprovidingspeakersandtrainingforconferencesforgroupsacrossthestateofMontanaaswellasacrossthecountry.In addition,weprovideourprofessionalswithcontinuingeducationspecifictothegovernmentsectorthroughnationalcoursesandspecializedresources. •We pride ourselves on retaining an excellent reputation.Anderson ZurMuehlen is registered and in good standing with the Montana Department of Administration Local Government Services Bureau to perform government audits.We are also registered with the AICPA’s Government Audit QualityCenter,which promotes the importance of quality governmental audits. Commitment to TimelineWewillholdanannualentrance conference with key personnel to discuss engagement planning andscheduling.The time schedule and procedures to be observed during the audit will be discussed andapprovedwithmanagementatthismeeting.We commit to meeting the reporting deadline of the first Monday in December following the close of the fiscal year as well as drafts to management at a minimum two weeks prior. Service CommitmentOurcultureisrooted in our vision of improving the lives of those we work with:our clients,our co-workers,and our communities.Our clients experience our culture through a service approachcharacterizedbyextensiveinvolvementofseniorprofessionals,direct access to technical expertiseandproactivecommunicationdeliveredthroughadedicatedclientserviceteam. 1019 East Main StreetSuite 201 Bozeman, MT 59715 Tel:406.556.6160 Fax:406.586.8719 www.azworld.com Page 5A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN We Want to Continue to Work with You The following statement of our capabilities outlines our understanding of the areas of specific interesttoyouandhowAndersonZurMuehlenwillmeetyourserviceneeds.We are pleased to furnish anyadditionalinformationuponrequest.Should further information be desired,please contact Bill Mills,Shareholder and Office Vice President of the Bozeman location who will be the engagementshareholderandisauthorizedtomakerepresentationsforAndersonZurMuehlen.Bill can be reachedat406-556-6160 or bmills@azworld.com. We sincerely thank you for the opportunity to present our proposal to provide professional services, and we look forward to a continued partnership with the City of Bozeman. Sincerely, ANDERSON ZURMUEHLEN & CO., P.C. William G. Mills, CPA Shareholder Office Vice President –Bozeman, MT Profile of the Proposer Page 7A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Best Qualities of Large and Small Firms.For 60 years,Anderson ZurMuehlen has been recognized as a premier accounting,tax and consulting firm known for our exceptional client service;experienced,accessible service teams;and our focus on quality and efficiency.Our firm has grown to be the largest Montana-based CPA and business advisory firm servicing clients through seven offices across the state,with approximately 250 employees,50 of which are shareholders.Additionally,Anderson ZurMuehlen is an independent member of the BDO Alliance USA,a nationwide association of independently owned local and regional accounting,consulting and service firms with similar client service goals.The Alliance brings us the necessary tools to help us better serve our clients with greater flexibility,efficiency and cost effectiveness. Our regional firm structure,combined with experience and depth in government audits,truly allows us to serve you with the best of both worlds –access to national level resources with a local,customized and cost-effective approach. Dedicated to Continuing Education and Unwavering Quality.We pride ourselves on providing quality service to our clients as well as excellent and relevant continuing education to our professionals.All engagement team members have obtained the required continuing education requirements to perform governments audits. Furthermore,in addition to national conferences specific to government accounting and audits that our staff attend,our internal courses are taught by the senior leaders of our firm, who also serve as instructors for national and statewide CPA conferences.Refer to the individual bios in the appendix of this document for details on specific training. FIRM PROFILE Bozeman Office Demographics Partners 4 Managers 4 Seniors 1 Staff 3 Administrative Professionals 3 Total 15 Local Office Profile Independent audit services for the City of Bozeman will be performed out of our Bozeman,Montana office.The demographics of the office are shown to the right.The Bozeman office location of Anderson ZurMuehlen offers a full-suite of accounting services including independent audit,other attestation procedures,tax preparation and planning,accounting and payroll services,as well as financial and management advisory services and technology consulting.A full listing of the firm’s services can be found in the appendix of this document. Page 8A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Certification of Qualifications As detailed in your request for proposal,we certify that Anderson ZurMuehlen meets the following qualifications: We are a firm of certified public accountants,widely recognized in the region for providing high quality services to local governments.Our firm is in good standing and licensed to practice in Montana. We are a member of the American Institute of Certified Public Accountants.We adhere to AICPA professional standards of audit practices and conduct. We have audited the City of Bozeman,as well as other similar governmental entities.We have successfully assisted the City in receiving the Certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association. We have extensive experience in performing audits for local governments.We understand the complexities and nuances of preparing financial statements in accordance with standards set forth by the Governmental Accounting Standards Board. Each member of our team has met the continuing education requirement of the U.S. Government Accountability Office. In addition,we submit to you the following: We are registered and in good standing to perform governmental audits with the Montana Department of Administration Local Government Services Bureau. We are registered with the AICPA’s Government Audit Quality Center. We are subject to periodic independent reviews under the AICPA’s Peer Review program. Our most recent peer review resulted in an unmodified opinion.The report is included in the appendix to this proposal. CERTIFICATION OF QUALIFICATIONS Summary of the Proposer’s Qualifications Page 10A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Service TeamAsistruefor all of our engagements,our performance will be led by experiencedshareholderswhowillbeheavilyinvolvedintheengagementandstaffedbyprofessionalswiththeappropriateskilllevelsandindustryknowledgetoperformtherequirementsinanexemplarymanner.We are pleased to present continuity in the team that serves you.Shouldyoupreferrotationofstaff,we are happy to fulfill that request. Bill Mills,Shareholder,will serve as the primary liaison between the City and AndersonZurMuehlen.He will be responsible for the overall supervision of services provided and willreviewtheworkpapersandreportbeforethefinalreportisissued.Bill has over 25 years ofexperienceprovidingavarietyofprofessionalaccountingservicestolocalgovernmententities and has had heavy involvement with the City of Bozeman audit in the past. Stefeni Freese,Shareholder,will serve as the independent quality control reviewer.Stefeni, with over 29 years of experience,serves as the lead engagement shareholder or quality reviewer on several government audits throughout the state including the City of Missoula and the City of Great Falls and has previously been involved with the City of Bozeman’s audit. Additionally,Stefeni has been highly active in the Peer Review process performing peer reviews for other firms including evaluating their governmental audits for the past 16 years as well as serving as Chairman of the MSCPAs Peer Review Committee. Jessica Van Voast,Shareholder,will be responsible for the detailed planning and performance of the audit,bringing over 12 years of experience to the team with a strong background and emphasis on public sector work.In addition to a background of serving the City of Bozeman, Jessica has served as the lead engagement contact on several other governmental audits. Jordan Wilson,Senior,will assist in the completion of the audit testing.Jordan brings over 3yearsofexperiencetotheteamwithbothexternalandinternalaccountingexperienceinthegovernmentsector. Additional team members with appropriate experience and skills may be assigned asnecessary.Refer to the appendix for detailed bios of all key team members. Certifications and Authorization The CPAs involved in auditing hold current Montana certificates as Certified Public Accountants and hold current permits to practice public accounting in accordance with MCA 37-50-314. Anderson ZurMuehlen staff are members of the State of Montana’s Society of CPAs and the American Institute of CPAs and adhere to the State and AICPA professional standardsofauditpracticesandconduct.The firm has no record of substandard work.This can beverifiedwiththeMontanaStateBoardofPublicAccountants. Anderson ZurMuehlen emphasizes continuing professional education to keep allprofessionalsup-to-date on recent accounting and auditing developments.Our firmexceedstheGovernmentAuditingStandards’educational requirements issued by the GAO. SERVICE TEAM QUALIFICATIONS Page 11A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN The past performance of a firm is critical to evaluating and selecting a service provider.We are pleased to provide the following list of relevant experience for your consideration as well as contact information for references whom we invite you to contact regarding our technical abilities and quality of service. RELEVANT EXPERIENCE Bozeman School District # 7 *Single Audit, GFOA Certificate Client since 2002 RJ Tvedt, Controller 406.522.6039 Gallatin County *Single Audit Client since 2001 Jennifer Blossom, Internal Auditor 406.582.3079 City of Missoula *Single Audit, GFOA Certificate Client since 2005 Leigh Griffing, Finance Director 406.552.6122 City of Great Falls *Single Audit, GFOA Certificate Client since 2016 Melissa Kinzler, Fiscal Services Director 406.455.8476 Flathead County *Single Audit, GFOA Certificate Client since 2007 Amy Dexter, Finance Director 406.758.5538 Bert Mooney Airport Authority *Single Audit Client since 1995 Big Sky Economic Development Authority *Single Audit Client since 1996 Cascade School District *Audit Client since 1990 City of Glasgow *Single Audit Client since 2016 Conrad School District *Audit Client since 1990 Flathead Airport Authority *Audit Client since 2006 Great Falls International Airport Authority *Audit Client since 1996 Great Falls School District *Single Audit Client since 1979 Helena Regional Airport Authority *Single Audit Client since 2015 Hill County *Single Audit Client since 2014 Lewis & Clark County *Single Audit, GFOA Certificate Client since 2000 Missoula County Airport Authority *Audit Client since 2012 Missoula Redevelopment Agency *Audit Client since 2005 Yellowstone City-County Health Department (RiverStone Health) *Single Audit Client since 2002 Yellowstone County *Single Audit Client since 2003 Scope Section Page 13A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN ENGAGEMENT APPROACH Tailored ApproachOurteambringsdecades of experience in understanding the relevant applicable rules andregulationsthatgovernCityaudits.We will perform audit services in accordance with: •Generally accepted auditing standards (GAAS),as set forth by the AICPA. •Generally accepted government auditing standards (GAGAS),as set forth by the GAO. •Single audit standards,if applicable,as set forth by the Office of Management and Budget. The standards above will guide a comprehensive audit of the City’s financial statements,as well as an assessment of the City’s internal control structure and environment,and its compliance with laws and regulations applicable to Montana cities.This includes applying a broad knowledge of internal control best practices,as well as an understanding of key applicable compliance requirements and related risks.We will utilize the Department of Administration's resources as guides in assessing compliance with Montana Code and Administrative rules. Deliverables and Responsibilities We confirm that we will assist the City in meeting its financial reporting objectives by preparing a Comprehensive Annual Financial Report. We will prepare this report from system-generated fund financial statements provided by the City. The report will include government-wide,fund,and combining statements,and otherrequiredsupplementalinformation. We will include the letter of transmittal,the management discussion and analysis,and thestatisticalsectionprovidedbyCitystaff. We will aggregate footnote information from schedules and narratives provided by the City. The CAFR will include the sections and required elements to qualify the City for theCertificateofAchievementforExcellenceinFinancialReporting. We will submit key schedules to city staff for review as the work progresses,to ensureindependencestandardsarestrictlyadheredto. We will submit a final draft of the CAFR to the City at least two weeks prior to finalpresentationtotheCityCommission,to ensure adequate time for review and approval. The CAFR will include an audit opinion on the fair presentation of the financial statements, as well as a report on compliance and internal control,in accordance with government auditing standards. We will present the results of the audit to the Audit Committee and the City Commission. We will prepare 20 printed copies as well as an electronic copy of the final report Technology Driven Our firm has championed the use of technology in all areas of practice to more efficiently serve our clients.We will utilize a secure,web-based Client Portal for transfer of client information and documents throughout the engagement.Furthermore,all of our team members utilize a Virtual Desktop Infrastructure,providing them with secure and reliable access to necessary documents and programs from any location. Page 14A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN High Quality, Customized, Risk-Focused Audit Every audit is customized to ensure an efficient, risk-based methodology,specific to the client beginning by developing a deep understanding of the operating environment,entity structure, internal control environment and governance structure as well as the applicable reporting requirements applicable to the entity.Based on these factors expectations are developed and risks identified to aid in developing the audit methodology and selection of specific audit procedures.This approach yields a high quality audit,reducing risk of undetected material misstatements and maximizing the results of the audit. Audit Manuals and Programs &Sampling Our firm uses internal control checklists and programs tailored for audits of government entities developed by Practitioners Publishing Company (PPC).PPC is widely recognized as an authoritative source of audit manuals and methodologies. We plan to use audit sampling for selected tests of controls and transactions and will base sample sizes on the overall audit strategy and our assessment of risk,as described above.We may utilize statistical attributes-type sampling for tests of controls,statistical dollar-unit type sampling for certain substantive sampling and non-statistical sampling for other substantive tests and certain compliance testing. Compliance We will obtain an understanding of the City’s controls over required compliance and develop and perform detailed test to evaluate the effectiveness of those controls and the level of compliance.We will evaluate the results of these procedures and communicate findings and recommendations in accordance with applicable auditing standards. Internal Controls and Compliance We will obtain a deep understanding of your internal control activities,and test that the internal controls,as designed,are placed in operation and operating effectively to address the risks for which they were designed. Additionally we will perform an in-depth review of a specific area as defined by City’s management and provide a detailed report of the findings and any recommendations of these procedures. ENGAGEMENT APPROACH Page 15A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Proposed Timeline The proposed timetable is based upon our preliminary understanding of your needs. Upon selection as your service provider,we will work with your team to develop a detailed schedule with key milestones that will allow you to monitor our progress and quality throughout the process.Our goal is to adapt our processes to meet your team’s needs. FeedbackQuality,accurate,and open client feedbackallowsustoenhanceourperformanceandgaugehowwellwearemeetingourclients’expectations.We take client service andsatisfactionseriouslyandcontinuouslyassessourclients’expectations and perceptions. Reporting to Management We will communicate with management and those charged with governance on a regular basis and in a number of ways: Introductory meeting prior to the start of audit work to identify forthcoming issues and discuss planned timing. We will conduct audit fieldwork meetings with management as appropriate,to address any issues identified during the course of the audit.We will contact the Audit Committee Chair regarding issues,if warranted. Audit exit meetings to discuss draft reports and any findings with management. Formal exit to present the final audit report to the Audit Committee and City Commissioners. As needed meetings throughout the year to discuss financial and strategic challenges as they arise,as well as new or changing service needs. TIMELINE, COMMUNICATION & REPORTING Sept Audit planning procedures including: •Developing an overall audit approach with the assistance of management. •Meeting with management to establish timelines, expectations, and required information and schedules, to ensure that all areas in the schedule are appropriately tested throughout the year. •Gaining an understanding of internal controls relative to our overall audit strategy. •Preparing and sending confirmations. •All requested planning documents are provided by the City before fieldwork. Audit fieldwork procedures including: •Performing tests of controls, evaluating results, and considering the extent of substantive tests.•Performing substantive procedures over detailed balances. •Providing progress reports to management as requested and at conclusion of fieldwork. Dec Oct/ Nov Audit Reporting•Reviewing audit reports, collaborating with management to ensure completeness and accuracy of financial reports and footnotes. •Submitting final reports and presenting deliverables to management by November 15th. •Formal exit conference with Audit Committee. Formal Presentation by the audit team to the City Commissioners for approval. Final issuance of the audit report Review Letter Page 17A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Peer Review Page 18A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Peer Review (cont.) Additional Data Local Government Experience & Impact Quality Assurance Procedures Client Service Commitment Page 20A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Local Government Industry Leadership Recognized as key thought leaders within the industry,our professionals believe in the power of industry participation.Anderson ZurMuehlen has provided services to government organizations since the founding of our firm in 1957,including significant experience with airport audits.Through years of working in this sector we have developed an in-depth knowledge of the unique factors and issues facing your industry. Our local government service team members regularly attend the AICPA Government Accounting and Auditing Conference as well as the Government Finance Officers Association annual Governmental Accounting,Auditing and Financial Reporting conference.In addition our teams’ongoing technical development includes distribution of technical updates,relevant classes,and best practice sharing throughout the year to maintain an effective and technically proficient network of senior professionals. In addition,members of our team serve the government sector and the profession as instructors of continuing professional education courses specific to governmental accounting and related issues that are offered to CPAs as well as those working for state and local governments. Breadth of Services Anderson ZurMuehlen delivers a wide range of services tailored to meet the needs of our governmental clients: •Financial statement preparation of Single audits •Audit of government entities •Internal control evaluations and audits •Regulatory, program and contract compliance review •Audit readiness support •Accounting procedures and reporting process design and implementation •Compliance audits under Uniform Guidance •CAFR preparation and review •Program contract and financial compliance reviews and reporting •Financial statement compilations •Forensic accounting and fraud examinations •Litigation support services •Cyber security, risk management and information technology assessments •Information system assurance •Cloud based technology solutions LOCAL GOVERNMENT EXPERIENCE & IMPACT Page 21A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Quality Assurance Procedures We have a number of processes in place to ensure that our professional services are performed to a high level of quality in accordance with Anderson ZurMuehlen’s policies and applicable professional and regulatory standards.These processes include: Internal reviews −all technical work is reviewed by a partner and/or a senior technical manager to ensure work is performed and delivered to standards consistent with all relevant professional standards,and complies fully with appropriate regulatory and legislative requirements.All government audits are subject to an independent engagement quality controlreview(EQCR)of the high risk areas of theauditaswellasthefinancialstatements.TheshareholderassignedtoconductthisreviewisassignedbytheFirm’s Quality Control Director. Internal quality reviews −conducted annuallyoncertainassignmentsbyexperiencedindependentpartnerstoassesswhethertheserviceswereperformedtoahighlevelofqualityinaccordancewithAndersonZurMuehlen’s policies and applicableprofessionalandregulatorystandards. External reviews −Anderson ZurMuehlen is subject to periodic AICPA Independent Peer Reviews,all of which include a sample of our governmental audits.Our most recent inspection results are included in this proposal. Regulatory Action None of the engagement team members or the firm have been the subject of any complaint or disciplinary action by any oversight body.We have not experienced any legal challenges related to our audit or tax practice.We do not have a record of substandard work and havenotbeensubjecttoanydisciplinaryactionduringthelastthreeyears. GFOA’s Certificate of Achievement of Excellence in Financial ReportingOurfirmhasauditedandpreparedseveralgovernmentfinancialstatements that have beenawardedtheCertificateofExcellencefromtheGFOA,including the City of Bozeman,BozemanSchoolDistrict,City of Missoula,Flathead County,Lewis &Clark County,and the City of GreatFalls.Stefeni Freese has served as a past member of the committee that reviews CAFRsacrossthenationtodetermineiftheymeettherequirements. QUALITY ASSURANCE Page 22A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN CLIENT SERVICE COMMITMENT Along with the personalized service ourprofessionalsarecommittedtodelivering,we’ve defined five of our clear client servicetraits.We are confident that AndersonZurMuehlenisyourdistinctivechoiceinmeetingtheseneeds. For 60 years,Anderson ZurMuehlen hasbeenrecognizedasapremieraccounting,tax and consulting firm known for our exceptional client service;experienced, accessible service teams;and our focus on quality and efficiency.Additionally, Anderson ZurMuehlen is an independent member of the BDO Alliance,a nationwide association of independently owned local and regional accounting,consulting,and service firms with similar client service goals.The Alliance brings us the necessary tools to help us better serve our clients with greater flexibility,efficiency and cost effectiveness. Above all else,your main team will becomprisedoflocalAndersonZurMuehlenprofessionalsbringingpersonalattentionandcommunityfocuswhichyoudeserve. Our commitment is to serve the City of Bozeman through a long-term responsive relationship matching your needs with our experience. Value for fees through efficient, quality service.4 Direct access to top technical resources.2 Early and continuous partner involvement.1 Dedicated project management to help you meet reporting deadlines.3 Proactive, continuous communications to help you meet your needs, challenges, and business goals.5 We are confident Anderson ZurMuehlen is your distinctive choice in meeting your needs. If you have any questions on the information included in this proposal or additional services you may require,please do not hesitate to contact us. Key Contact: Bill Mills, CPA |Shareholder -Office Vice President, Bozeman MT bmills@azworld.com 406.556.6160 SECTION 2: Compensation Page 24A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN PROPOSED PROFESSIONAL FEES Anderson ZurMuehlen understands your need to balance cost considerations with the highest professional standards for quality work.Below are our proposed fees for a two-year period ended June 30,2019.This is an all-inclusive fee that includes all out-of-pocket costs as well as attendance at committee meetings and general consultations throughout the year at no extra charge.We see ourselves as a resource to our clients and believe they should feel comfortable in contacting us throughout the year. Our fee estimate is based on the following assumptions: Key documents are provided on the dates agreed,and there are no significant delaysoutsideofourcontrol. As described above,no significant changes occur in the internal accounting controls,accounting systems,key personnel,or structure of the organization. Although not expected,should we encounter unforeseen issues which warrant additionaltimeorexpense,we will notify you of the situation and,if necessary,any added costs,which would always be subject to your approval. Bills will be rendered on a monthly basis as the work commences.Full payment is expectedatthetimethereportsareallissued. It is not our practice to bill for routine telephone or email consultations or questions,unless additional research is required.If you request special services outside the scope of services outlined in this proposal,we will discuss those services and provide management with a fee estimate related to such assistance.Our standard hourly billing rates are listed below. Requested Services and Deliverables Hours 2018 2019 Audit of the Financial Statements 370 $33,000 $34,000 Comprehensive Annual Financial Report Preparation 80 $10,000 $10,000 Agreed Upon Procedures –Building Codes -Included Included High-level IT Assessment by Credentialed Systems Security Professional -Complimentary Complimentary Total 450 $43,000 $44,000 Staff Category Standard Rate/Hour Staff $100 Senior $125 Manager $160 Shareholder $200 We will not allow concerns about fees to jeopardize a relationship based on mutual trust and respect,and we welcome the opportunity to negotiate fees based on the value you place on our services. Appendix Page 26A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Comprehensive,Tailored Capabilities Anderson ZurMuehlen’s Bozeman office delivers a breadth of services tailored to meet our clients’needs.Our core services include: Anderson ZurMuehlen is an independent member of the BDO Alliance USA, a nationwide association of owned local and regional accounting, consulting and service firms with similar client service goals. The Alliance provides us the ability to offer national level resource and services to our clients while maintain our autonomy. Assurance Business Advisory and Risk Management Tax Technology Services BDO Alliance USA Financial Statement Audits, Reviews & Compilations Employee Benefit Plan Audits Information Security Assurance Outsourced Accounting Services Outsourced Internal Audit Services Service Organization Control Reports Specialized Reports Accounting System Design and Review Business Plans and Projections Business Valuation Fraud Examinations and Forensic Accounting Litigation Support Peer Review Management Consulting Prospective Financial Statements Succession Planning IT Consulting Desktop-as-a-Service Cyber Security Testing and Consulting Business Software Training Business Intelligence Analysis and Reporting Information Systems and Infrastructure Tax Return Preparation Tax Planning Compensation and Benefits Analysis Cost Segregation Entity Selection Fixed Asset Advisory Individual Income and Estate Tax Planning, Preparation and Projections International Tax Planning Retirement Planning and Distribution Analysis State and Local Taxation Transaction Analysis ANDERSON ZURMUEHLEN SERVICES OVERVIEW Page 27A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN William G. (Bill) Mills, CPA Office Vice President –Bozeman, MT Shareholder Joined Anderson ZurMuehlen in 2001 Relevant Experience Bill has practiced in public accounting for over 25 years providing tax,advisory and attest services to small and large businesses and their owners.Bill is a highly accomplished accounting professional and an advocate for his clients ensuring they are abreast of the changing business and accounting regulation landscape and continually delivering comprehensive services to best serve them. Bill’s practice area spanned a wealth of sectors including local government,nonprofit organizations and privately held for-profit companies across various industries.Bill is a true strategic advisor for his clients with a wealth of experience providing efficient and accurate services to his clients.Throughout his career Bill has honed his understanding and experience in assessing internal controls over financial reporting as well as information technology controls allowing him to be a tremendous resource to his clients when evaluating the design and effectiveness of their internal control structures and providing recommendations for improvements. Bill has a long history of involvement with the City of Bozeman audit having served as the lead shareholder as well as technical engagement reviewer for several years. Professional Affiliations Member, American Institute of CPAs Member, Montana Society of CPAs Board of Directors, Bozeman Schools Foundation Member, Finance Committee & Past President, Cancer Support Community of Montana Member, Finance Committee, Bozeman Deaconess Foundation Member, Revolving Loan Fund Committee, City of Belgrade Treasurer, Gallatin County CASA/Guardian ad Litem Program Education Bachelor of Science in Agricultural and Managerial Economics, University of California, Davis Continuing education through the Montana Society of CPAs, American Institute of CPAs, BDO and Anderson ZurMuehlen sponsored courses. Specific relevant continuing education courses: Yellow Book Update –Annually Audit and Accounting Update –Annually BDO Alliance Conference –2015,2016 Fraud related classes:Red Flag Reporting –2015 PHONE:406.556.6160 E-MAIL:bmills@azworld.com Page 28A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Stefeni S.Freese,CPA Office Vice President –Billings,MT Shareholder since 2002 Joined Anderson ZurMuehlen in 2001 Relevant Experience Stefeni has over 29 years of experience providing quality audit and tax services to entities across many sectors with much of her career focused heavily in the public sector serving local governments.Her experience includes all phases of accounting,auditing,and consulting, including performance and supervision of audits,evaluation of internal controls,preparation and analysis of financial statements,and developing and implementing accounting system solutions. Stefeni is the Chairman of the Peer Review Committee of the Montana Society of CPAs and frequently performs peer reviews of other public accounting firms.Stefeni is also a member of the Anderson ZurMuehelen's Board of Directors. Specific engagement experience serving as the lead shareholder or quality control reviewer include the following:City of Bozeman,Missoula,Great Falls,Choteau and Havre;Flathead, Gallatin,Yellowstone and Lewis &Clark Counties;Bozeman and Missoula Public Schools; Rocky Mountain and Carroll College. Professional Affiliations •Member,American Institute of CPAs •Member,Montana Society of CPA’s •Member,Montana Association of School Business Officials,Montana League of Cities and Towns,and Montana Association of Counties •Chairman,Peer Review Committee of the Montana Society of CPAs •Chairman,Boys and Girls Club of Yellowstone County Education •Bachelor of Science in Accounting,Montana State University •Content contributor and instructor for the annual Anderson ZurMuehlen Advanced Accounting Issued for Nonprofit Conference •Continuing education through the Montana Society of CPAs,American Institute of CPAs, BDO Alliance USA,Government Finance Officers Association,Audit Watch and Anderson ZurMuehlen sponsored courses •Qualified to perform audits under Government Auditing Standards •Specific relevant continuing education courses: •Yellow Book Update –Annually •Audit &Accounting Update –Annually •Advanced Accounting Issues for Nonprofits –2015,2016,2017 •BDO Leader’s Conference –2015,2016 •Revenue Recognition Implementation Training -2017 PHONE:406.245.5136 E-MAIL:sfreese@azworld.com Page 29A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Jessica Van Voast, CPA Shareholder Joined Anderson ZurMuehlen in 2005 Relevant Experience Jessica has over 12 years of experience in providing auditing and consulting services to her clients.Jessica’s practice area has been comprised primarily of governmental entities, nonprofit organizations,as well as clients in the manufacturing and retail industries.Jessica has a wealth of experience providing audit examinations,evaluation of internal controls systems,compliance reporting and providing guidance over many other accounting related issues. Relevant client experience includes Jessica’s role as engagement lead on the City of Bozeman audit since 2014,Flathead County audit since 2007 and formerly the City of Havre and the City of Choteau. Specific Experience Includes: Advisory and consulting experience includes evaluation of risk management,control activities,and corporate governance. Extensive experience serving the nonprofit and government industries including financial statement audits,internal control assessment,and compliance audits. Proficient in reporting under Governmental Auditing Standards and in compliance with Uniform Guidance. Professional Affiliations Member,American Institute of CPAs Member,Montana Society of CPAs Treasurer,HAVEN Board of Directors Former Committee Member,Montana Society of CPAs Financial Reporting and Technical Standards Committee Member,Montana State University College of Business Golf Tournament Education Bachelor of Science in Business –Accounting Option, Montana State University Masters of Professional Accountancy, Montana State University Continuing education through the Montana Society of CPAs,American Institute of CPAs,BDO and Anderson ZurMuehlen sponsored courses Specific relevant continuing education courses: Yellow Book Update –Annually Advanced Accounting Issues for Nonprofits –2015,2016,2017 Audit and Accounting Update –Annually BDO Alliance Conference –2017 Fraud related classes:Red Flag Reporting –2015 PHONE:406.556.6160 E-MAIL:jvanvoast@azworld.com Page 30A PROPOSAL TO PROVIDE PROFESSIONAL SERVICES TO THE CITY OF BOZEMAN Jordon Wilson Senior Joined Anderson ZurMuehlen in 2017 Relevant Experience Jordon brings nearly 3 years of experience having both worked with public entities as an external auditor as well as having spent time working as a member of the finance department in a local government.Her experience understanding the financial reporting and compliance requirements for a local government from both an internal and external perspective brings a wealth of value to the team.Additionally in addition to her experience in this sector she attends specialized government accounting continuing education each year. Specific Experience Includes: Advisory and consulting experience includes evaluation of risk management,control activities,and corporate governance. Proficient in reporting under Governmental Auditing Standards and in compliance with Uniform Guidance. Professional Affiliations Member,American Institute of CPAs Member,Montana Society of CPAs Education Bachelor of Science in Business –Accounting Option, Montana State University Masters of Professional Accountancy, University of South Dakota, expected completion December 2018 Continuing education through the Montana Society of CPAs,American Institute of CPAs,BDO and Anderson ZurMuehlen sponsored courses Specific relevant continuing education courses: Yellow Book Update –Annually Audit and Accounting Update –Annually PHONE:406.556.6160 E-MAIL:jwilson@azworld.com