HomeMy WebLinkAbout21- Audit Engagement Letter - Anderson Zurmuehlen - Audit Contract for FY211019E MAIN ST• SUITE 201• BOZEMAN, MONTANA 59715 TEL: 406.556.6160• FAX:406.586.8719• WEB: www.azworld.comANDERSON ZURMUEHLEN & CO., P.C. • CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
MEMBER: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
September 26, 2021
Kristin Donald, Finance Director
Jeff Mihelich, City Manager
City of Bozeman, Montana
PO Box 1230
Bozeman, Montana 59771-1230
Dear Kristin, Jeff and Members of the Audit Committee:
We are pleased to confirm our understanding of the services we are to provide City of
Bozeman, Montana (the City)for the year ended June 30, 2021. We will audit the financial
statements of the governmental activities, the business-type activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information,
including the related notes to the financial statements, which collectively comprise the basic
financial statements, of the City as of and for the year ended June 30, 2021. Accounting
standards generally accepted in the United States of America provide for certain required
supplementary information (RSI), such as management’s discussion and analysis (MD&A),
to supplement the City’s basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic financi al
statements in an appropriate operational, economic, or historical context. As part of our
engagement, we will apply certain limited procedures to the City’s RSI in accordance with
auditing standards generally accepted in the United States of America. Th ese limited
procedures will consist of inquiries of management regarding the methods of preparing the
information and comparing the information for consistency with management’s responses to
our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We will not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance. The following RSI is required by
U.S. generally accepted accounting principles and will be subjected to certain limited
procedures, but will not be audited:
1)Management’s Discussion and Analysis.
2)Schedule of Changes in Total Other Post-Employment Benefits Liability and Related
Ratios.
3)Schedule of Proportionate Share of Net Pension Liability and Schedule of
Contributions.
4)Schedules of Revenue, Expenditures, and Changes in Fund Balances –Budget to
Actual –General and Special Revenue Major funds.
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ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
We have also been engaged to report on supplementary information other than RSI that
accompanies the City’s financial statements. We will subject the following supplementary
information to the auditing procedures applied in our audit of the financial statements and
certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the financial statements or to
the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America, and we will provide an
opinion on it in relation to the financial statements as a whole,in a report combined with our
auditor’s report on the financial statements:
1)Combining and Individual Nonmajor Fund Financial Statements.
2)Budget to Actual Statements –Other Major funds.
3)Budget to Actual Statements –Nonmajor Funds.
4)Nonmajor Proprietary Funds.
5)Internal Service Funds Statements.
6)Agency Funds.
7)Schedule of expenditures of federal awards.
The following other information accompanying the financial statements will not be subjected
to the auditing procedures applied in our audit of the financial statements, and our auditor’s
report will not provide an opinion or any assurance on that other information.
1)Introductory information.
2)Statistical data.
Audit Objectives
The objective of our audit is the expression of opinions as to whether your financial statements
are fairly presented, in all material respects, in conformity with U.S. generally accepted
accounting principles and to report on the fairness of the supplementary information referred
to in the second paragraph when considered in relation to the financial statements as a whole.
The objective also includes reporting on—
Internal control over financial reporting and compliance with provisions of laws,
regulations, contracts, and award agreements, noncompliance with which could have
a material effect on the financial statements in accordance with Government Auditing
Standards.
Internal control over compliance related to major programs and an opinion (or
disclaimer of opinion) on compliance with federal statutes, regulations, and the terms
and conditions of federal awards that could have a direct and material effect on each
major program in accordance with the Single Audit Act Amendments of 1996 and
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance).
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ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
The Government Auditing Standards report on internal control over financial reporting and
on compliance and other matters will include a paragraph that states that (1) the purpose of
the report is solely to describe the scope of testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance, and (2) the report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control
and compliance. The Uniform Guidance report on internal control over compliance will
include a paragraph that states that the purpose of the report on internal control over
compliance is solely to describe the scope of testing of internal control over compliance and
the results of that testing based on the requirements of the Uniform Guidance. Both reports
will state that the report is not suitable for any other purpose.
Our audit will be conducted in accordance with auditing standards generally accepted in the
United States of America; the standards for financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; the Single Audit Act
Amendments of 1996; and the provisions of the Uniform Guidance, and will include tests of
accounting records, a determination of major program(s) in accordance with the Uniform
Guidance, and other procedures we consider necessary to enable us to express such opinions.
We will issue written reports upon completion of our Single Audit. Our reports will be
addressed to the Honorable Mayor, City Commissioners and City Manager of the City of
Bozeman. We cannot provide assurance that unmodified opinions will be expressed.
Circumstances may arise in which it is necessary for us to modify our opinions or add
emphasis-of-matter or other-matter paragraphs. If our opinions are other than unmodified, we
will discuss the reasons with you in advance. If, for any reason, we are unable to complete the
audit or are unable to form or have not formed opinions, we may decline to express opinions
or issue reports, or we may withdraw from this engagement.
Audit Procedures—General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements; therefore, our audit will involve judgment about the number of
transactions to be examined and the areas to be tested. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements. We will plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement, whether from (1) errors, (2)
fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or
governmental regulations that are attributable to the government or to acts by management or
employees acting on behalf of the government. Because the determination of waste and abuse
is subjective, Government Auditing Standards do not expect auditors to perform specific
procedures to detect waste or abuse in financial audits nor do they expect auditors to provide
reasonable assurance of detecting waste or abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of
internal control, and because we will not perform a detailed examination of all transactions,
an unavoidable risk exists that some material misstatements or noncompliance may exist and
not be detected by us, even though the audit is properly planned and performed in accordance
with U.S. generally accepted auditing standards and Government Auditing Standards.
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ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
In addition, an audit is not designed to detect immaterial misstatements or violations of laws
or governmental regulations that do not have a direct and material effect on the financial
statements or on major programs. However, we will inform the appropriate level of
management of any material errors, any fraudulent financial reporting, or misappropriation of
assets that come to our attention. We will also inform the appropriate level of management of
any violations of laws or governmental regulations that come to our attention, unless clearly
inconsequential. We will include such matters in the reports required for a Single Audit. Our
responsibility as auditors is limited to the period covered by our audit and does not extend to
any later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions
recorded in the accounts, and may include tests of the physical existence of inventories, and
direct confirmation of receivables and certain other assets and liabilities by correspondence
with selected individuals, funding sources, creditors, and financial institutions. We will
request written representations from your attorneys as part of the engagement, and they may
bill you for responding to this inquiry. At the conclusion of our audit, we will require certain
written representations from you about your responsibilities for the financial statements;
schedule of expenditures of federal awards; federal award programs; compliance with laws,
regulations, contracts, and grant agreements; and other responsibilities required by generally
accepted auditing standards.
Audit Procedures—Internal Control
Our audit will include obtaining an understanding of the government and its environment,
including internal control, sufficient to assess the risks of material misstatement of the
financial statements and to design the nature, timing, and extent of further audit procedures.
Tests of controls may be performed to test the effectiveness of certain controls that we
consider relevant to preventing and detecting errors and fraud that are material to the financial
statements and to preventing and detecting misstatements resulting from illegal acts and other
noncompliance matters that have a direct and material effect on the financial statements. Our
tests, if performed, will be less in scope than would be necessary to render an opinion on
internal control and, accordingly, no opinion will be expressed in our report on internal control
issued pursuant to Government Auditing Standards.
As required by the Uniform Guidance, we will perform tests of controls over compliance to
evaluate the effectiveness of the design and operation of controls that we consider relevant to
preventing or detecting material noncompliance with compliance requirements applicable to
each major federal award program. However, our tests will be less in scope than would be
necessary to render an opinion on those controls and, accordingly, no opinion will be
expressed in our report on internal control issued pursuant to the Uniform Guidance.
An audit is not designed to provide assurance on internal control or to identify significant
deficiencies or material weaknesses. Accordingly, we will express no such opinion. However,
during the audit, we will communicate to management and those charged with governance
internal control related matters that are required to be communicated under AICPA
professional standards, Government Auditing Standards, and the Uniform Guidance.
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ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of
material misstatement, we will perform tests of the City’s compliance with provisions of
applicable laws, regulations, contracts, and agreements, including grant agreements.However,
the objective of those procedures will not be to provide an opinion on overall compliance and
we will not express such an opinion in our report on compliance issued pursuant to
Government Auditing Standards.
The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable
assurance about whether the auditee has complied with federal statutes, regulations, and the
terms and conditions of federal awards applicable to major programs. Our procedures will
consist of tests of transactions and other applicable procedures described in the OMB
Compliance Supplement for the types of compliance requirements that could have a direct and
material effect on each of the City’s major programs. For federal programs that are included
in the Compliance Supplement, our compliance and internal control procedures will relate to
the compliance requirements that the Compliance Supplement identifies as being subject to
audit. The purpose of these procedures will be to express an opinion on the City’s compliance
with requirements applicable to each of its major programs in our report on compliance issued
pursuant to the Uniform Guidance.
Other Services
We will also assist in preparing the financial statements and related notes,GASB 34 adjusting
entries and reconciliations, schedule of expenditures of federal awards, and the Data
Collection Form of the City in conformity with U.S. generally accepted accounting principles
and Uniform Guidance based on information provided by you. We will perform the services
in accordance with applicable professional standards. These nonaudit services do not
constitute an audit under Government Auditing Standards and such services will not be
conducted in accordance with Government Auditing Standards. We will perform the services
in accordance with applicable professional standards. The other services are limited to the
financial statements, schedule of expenditures of federal awards, and related notes services
previously defined. We, in our sole professional judgment, reserve the right to refuse to
perform any procedure or take any action that could be construed as assuming management
responsibilities.
Management Responsibilities
Management is responsible for (1) designing, implementing, establishing, and maintaining
effective internal controls relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error, including
internal controls over federal awards, and for evaluating and monitoring ongoing activities to
help ensure that appropriate goals and objectives are met; (2) following laws and regulations;
(3) ensuring that there is reasonable assurance that government programs are administered in
compliance with compliance requirements; and (4) ensuring that management and financial
information is reliable and properly reported. Management is also responsible for
implementing systems designed to achieve compliance with applicable laws, regulations,
contracts, and grant agreements. You are also responsible for the selection and application of
accounting principles; for the preparation and fair presentation of the financial statements,
schedule of expenditures of federal awards, and all accompanying information in conformity
with U.S. generally accepted accounting principles; and for compliance with applicable laws
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ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
and regulations (including federal statutes) and the provisions of contracts and grant
agreements (including award agreements). Your responsibilities also include identifying
significant contractor relationships in which the contractor has responsibility for program
compliance and for the accuracy and completeness of that information.
Management is also responsible for making all financial records and related information
available to us and for the accuracy and completeness of that information. You are also
responsible for providing us with (1) access to all information of which you are aware that is
relevant to the preparation and fair presentation of the financial statements, including
identification of all related parties and all related-party relationships and transactions, (2)
access to personnel, accounts, books, records, supporting documentation, and other
information as needed to perform an audit under the Uniform Guidance, (3) additional
information that we may request for the purpose of the audit, and (4) unrestricted access to
persons within the government from whom we determine it necessary to obtain audit evidence.
Your responsibilities include adjusting the financial statements to correct material
misstatements and confirming to us in the management representation letter that the effects of
any uncorrected misstatements aggregated by us during the current engagement and pertaining
to the latest period presented are immaterial, both individually and in the aggregate, to the
financial statements of each opinion unit as a whole.
You are responsible for the design and implementation of programs and controls to prevent
and detect fraud, and for informing us about all known or suspected fraud affecting the
government involving (1) management, (2) employees who have significant roles in internal
control, and (3) others where the fraud could have a material effect on the financial statements.
Your responsibilities include informing us of your knowledge of any allegations of fraud or
suspected fraud affecting the government received in communications from employees,
former employees, grantors, regulators, or others. In addition, you are responsible for
identifying and ensuring that the government complies with applicable laws, regulations,
contracts, agreements, and grants. Management is also responsible for taking timely and
appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations,
contracts, and grant agreements that we report. Additionally, as required by the Uniform
Guidance, it is management’s responsibility to evaluate and monitor noncompliance with
federal statutes, regulations, and the terms and conditions of federal awards; take prompt
action when instances of noncompliance are identified including noncompliance identified in
audit findings; promptly follow up and take corrective action on reported audit findings; and
prepare a summary schedule of prior audit findings and a separate corrective action plan.
You are responsible for identifying all federal awards received and understanding and
complying with the compliance requirements and for the preparation of the schedule of
expenditures of federal awards (including notes and noncash assistance received) in
conformity with the Uniform Guidance. You agree to include our report on the schedule of
expenditures of federal awards in any document that contains and indicates that we have
reported on the schedule of expenditures of federal awards. You also agree to include the
audited financial statements with any presentation of the schedule of expenditures of federal
awards that includes our report thereon. Your responsibilities include acknowledging to us in
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ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
the written representation letter that (1) you are responsible for presentation of the schedule
of expenditures of federal awards in accordance with the Uniform Guidance; (2) you believe
the schedule of expenditures of federal awards, including its form and content, is stated fairly
in accordance with the Uniform Guidance; (3) the methods of measurement or presentation
have not changed from those used in the prior period (or, if they have changed, the reasons
for such changes); and (4) you have disclosed to us any significant assumptions or
interpretations underlying the measurement or presentation of the schedule of expenditures of
federal awards.
You are also responsible for the preparation of the other supplementary information, which
we have been engaged to report on, in conformity with U.S. generally accepted accounting
principles. You agree to include our report on the supplementary information in any document
that contains, and indicates that we have reported on, the supplementary information. You
also agree to include the audited financial statements with any presentation of the
supplementary information that includes our report thereon. Your responsibilities include
acknowledging to us in the written representation letter that (1) you are responsible for
presentation of the supplementary information in accordance with GAAP; (2) you believe the
supplementary information, including its form and content, is fairly presented in accordance
with GAAP; (3) the methods of measurement or presentation have not changed from those
used in the prior period (or, if they have changed, the reasons for such changes); and (4) you
have disclosed to us any significant assumptions or interpretations underlying the
measurement or presentation of the supplementary information.
Management is responsible for establishing and maintaining a process for tracking the status
of audit findings and recommendations. Management is also responsible for identifying and
providing report copies of previous financial audits, attestation engagements, performance
audits, or other studies related to the objectives discussed in the Audit Objectives section of
this letter. This responsibility includes relaying to us corrective actions taken to address
significant findings and recommendations resulting from those audits, attestation
engagements, performance audits, or studies. You are also responsible for providing
management’s views on our current findings, conclusions, and recommendations, as well as
your planned corrective actions, for the report, and for the timing and format for providing
that information.
You agree to assume all management responsibilities relating to the financial statements,
schedule of expenditures of federal awards, and related notes, and any other nonaudit services
we provide. You will be required to acknowledge in the management representation letter our
assistance with preparation of the financial statements, schedule of expenditures of federal
awards, and related notes and that you have reviewed and approved the financial statements,
schedule of expenditures of federal awards, and related notes prior to their issuance and have
accepted responsibility for them. Further, you agree to oversee the nonaudit services by
designating an individual, preferably from senior management, with suitable skill, knowledge,
or experience; evaluate the adequacy and results of those services; and accept responsibility
for them.
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ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
Engagement Administration, Fees, and Other
We may from time to time and depending on the circumstances, use third-party service
providers in serving your account. We may share confidential information about you with
these service providers, but remain committed to maintaining the confidentiality and security
of your information. Accordingly, we maintain internal policies, procedures, and safeguards
to protect the confidentiality of your personal information. In addition, we will secure
confidentiality agreements with all service providers to maintain the confidentiality of your
information and we will take reasonable precautions to determine that they have appropriate
procedures in place to prevent the unauthorized release of your confidential information to
others.In the event that we are unable to secure an appropriate confidentiality agreement, you
will be asked to provide your consent prior to the sharing of your confidential information
with the third-party service provider. Furthermore, we will remain responsible for the work
provided by any such third-party service providers.
We understand that your employees will prepare all cash, accounts receivable, or other
confirmations we request and will locate any documents selected by us for testing.
At the conclusion of the engagement, we will complete the appropriate sections of the Data
Collection Form that summarizes our audit findings. It is management’s responsibility to
electronically submit the reporting package (including financial statements, schedule of
expenditures of federal awards, summary schedule of prior audit findings, auditor’s reports,
and corrective action plan) along with the Data Collection Form to the federal audit
clearinghouse. We will coordinate with you the electronic submission and certification. The
Data Collection Form and the reporting package must be submitted within the earlier of 30
calendar days after receipt of the auditor’s reports or nine months after the end of the audit
period.
We will provide copies of our reports to the City; however, management is responsible for
distribution of the reports and the financial statements. Unless restricted by law or regulation,
or containing privileged and confidential information, copies of our reports are to be made
available for public inspection.
The audit documentation for this engagement is the property of Anderson ZurMuehlen & Co.,
P.C.and constitutes confidential information. However, subject to applicable laws and
regulations, audit documentation and appropriate individuals will be made available upon
request and in a timely manner to a federal agency providing direct or indirect funding, or the
U.S. Government Accountability Office for purposes of a quality review of the audit, to
resolve audit findings, or to carry out oversight responsibilities. We will notify you of any
such request. If requested, access to such audit documentation will be provided under the
supervision of Anderson ZurMuehlen personnel. Furthermore, upon request, we may provide
copies of selected audit documentation to the aforementioned parties. These parties may
intend, or decide, to distribute the copies or information contained therein to others, including
other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of five years
after the report release date or for any additional period requested by the Cognizant or
Oversight Agency. If we are aware that a federal awarding agency, pass-through entity, or
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ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
auditee is contesting an audit finding, we will contact the party(ies) contesting the audit
finding for guidance prior to destroying the audit documentation.
We expect to begin our audit upon your acceptance of this letter and to issue our reports no
later than December 31, 2021. Jessica Van Voast is the engagement partner and is responsible
for supervising the engagement and signing the reports or authorizing another individual to
sign them.
Our fee for these services will be $53,000 plus out-of-pocket costs (such as report reproduction,
word processing, postage,travel, copies, telephone, etc.). Our proposed fees are based on the
following assumptions:
1.Anticipated cooperation from your personnel and the assumption that unexpected
circumstances will not be encountered during the audit. Cooperation includes meeting
timelines on requested schedules and other audit request. Failure to provide this
information accurately and on the date requested will be the basis for additional fees.
2.There are no unanticipated changes in the scope of our work and/or the incomplete or
untimely receipt by us of the information on the client request list.
3.There are no new audit standards that require significant audit resources.
4.The accounting records are maintained in a reasonable manner, with appropriate
supporting documentation provided as requested.
Fees for our services will be billed as our work progresses and are due upon presentation.
Fees are subject to modification as a result of changes in your operations. If significant
additional time is required, we will consult with management prior to expending the time.
Any projects that are outside the scope of this engagement will be discussed prior to beginning
the project, documented separately, and will be billed at our standard hourly rates.
The parties to this engagement agree that any dispute that may arise regarding the meaning,
performance, or enforcement of this engagement (except actions by us to enforce payment of
our professional invoices) will, prior to resorting to litigation, be submitted to mediation once
a written request to mediate has been given by either party. Any mediation initiated as a result
of this engagement shall be administered within the county of Lewis and Clark, Montana.
Any ensuing litigation shall be conducted within said county according to Montana law. The
results of any such mediation shall be binding only upon agreement of each party to be bound.
The costs of any mediation proceeding shall be shared equally by the parties.
In the event our Firm is required to respond to a subpoena, summons, court order, or other
legal process for the production of documents and/or testimony relative to information we
obtained and/or prepared during the course of this engagement, you agree to compensate the
Firm at its hourly rates for the time it expends in connection with such response, and to
reimburse us for all out-of-pocket expenses incurred.
Any claim arising out of this engagement, except actions by our Firm to enforce payment of
its professional invoices, must be asserted within three years from the completion of the
engagement, notwithstanding any statutory provision to the contrary.
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ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
If either party elects to terminate our services for nonpayment, or for any other reason
provided for in this letter, our engagement will be deemed to have been completed upon
written notification of termination, even if we have not completed our engagement. You will
be obligated to compensate us for all time expended, and to reimburse us for all out-of-pocket
costs through the date of termination.
In connection with this engagement, we may communicate with you or others via email
transmission, and by signing this letter you authorize us to do so. As emails can be intercepted
and read, disclosed, or otherwise used or communicated by an unintended third party, or may
not be delivered to each of the parties to whom they are directed and only to such parties, we
cannot guarantee or warrant that emails from us will be properly delivered and read only by
the addressee. You agree that we shall have no liability for any loss or damage resulting from
the use of email transmissions. If requested, we will provide a secure p ortal for the
transmission of confidential information.
Our Firm’s record retention policy follows guidelines provided by the American Institute of
Certified Public Accountants. Original client documents and files are returned to you for
safekeeping. Anderson ZurMuehlen generally retains copies of client files and documents for
seven (7) years in support of the work completed. Beyond the 7-year retention period, files
will be destroyed unless a written request is provided to us by you.
This letter constitutes the terms and mutual understanding of our arrangement, superseding all
proposals oral and written and all other communications.
We appreciate the opportunity to be of service to the City and believe this letter accurately
summarizes the significant terms of our engagement. If you have any questions, please let us
know. If you agree with the terms of our engagement as described in this letter, please sign
the enclosed copy and return it to us.
ANDERSON ZURMUEHLEN & CO., PC.
By: Jessica Van Voast, CPA
Shareholder
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ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
RESPONSE:
This letter correctly sets forth the understanding of
CITY OF BOZEMAN, MONTANA.
Management Signature
Title Date
Governance Signature
Title Date
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10/6/2021Mayor
Finance Director 10/6/2021
Weaver and Tidwell, L.L.P.
9311 San Pedro Avenue, Suite 1400 | San Antonio, Texas 78216
Main: 210.737.1042
CPAs AND ADVISORS | WEAVER.COM
Report on the Firm’s System of Quality Control
December 21, 2020
To the Shareholders of Anderson ZurMuehlen & Co., P.C.
and the Peer Review Committee of the
Nevada Society of Certified Public Accountants
We have reviewed the system of quality control for the accounting and auditing practice of Anderson
ZurMuehlen & Co., P.C. (the Firm) in effect for the year ended May 31, 2020. 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 (Standards).
A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System
Review as described in the Standards may be found at www.aicpa.org/prsummary. The summary also
includes an explanation of how engagements identified as not performed or reported in conformity with
applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review
rating.
Firm’s Responsibility
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. The Firm is also responsible for evaluating actions to promptly remediate
engagements deemed as not performed or reported in conformity with professional standards, when
appropriate, and for remediating weaknesses in its system of quality control, if any.
Peer Reviewer’s Responsibility
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.
Required Selections and Considerations
Engagements selected for review included engagements performed under Government Auditing
Standards, including compliance audits under the Single Audit Act, an audit performed under FIDICIA,
audits of employee benefit plans, and examinations of service organizations (SOC 1 and SOC 2
engagements). As a part of our peer review, we considered reviews by regulatory entities as
communicated by the Firm, if applicable, in determining the nature and extent of our procedures.
Opinion
In our opinion, the system of quality control for the accounting and auditing practice of Anderson
ZurMuehlen, P.C. in effect for the year ended May 31, 2020, 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. Anderson ZurMuehlen & Co., P.C. has received a peer review rating of pass.
WEAVER AND TIDWELL, L.L.P.
San Antonio, Texas
December 21, 2020
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