Loading...
HomeMy WebLinkAbout2014 RFP Financial Audit: Amatics CPA Group PROPOSAL FOR ANNUAL INDEPENDENT FINANCIAL AUDIT CITY OF BOZEMAN, MONTANA For fiscal years ending June 30, 2014 and 2015 Submitted by: Amatics CPA Group 220 West Lamme, Suite 3A Bozeman, MT 59715 Please Contact: Terry 1, Alborn, CPA Audit Shareholder (406) 404-1925 — CITY OFI} AUDIT PROPOSAL TABLE OF CONTENTS Page LetterofTransmittal......... ............ ......................................................... ....................................................1 Profileofthe Proposer................................ ........................................................................_-._.. .........3 Summary ofthe Prnnoocr'u Qualifications........... ......................................... ..................................... —2 Scope......................... ... ........................................................... ............... ........................ .................. —..4 PeerReview Report............. .............. ----............................................................................................0 _ AdditionalData................. ......................................... ........ .......... ....---....................................... .........6 Compensation...... ...... .......................................... ............. .........................................................................6 Appendix A—Resumeo Terry/\]6o#n............................................................. ................. .............--...................... ...............7 Morgan8cuzr........ _.................--..... ........... .............. ...................................—........................8 Heidi Glem --_------------'---'-------------------_-----9 Austin -------_—. ................. --------- ................... .... ....... .................1U Appendix D —PeezIleview Report........................................................................................ ..................11 Appendix C —HnnvlyROlingl{utesbv Staff Classification....................................................... ...... ....12 �� ffi 220 Wc�[ t,anunc Sr Stc 31 P. 0. 3,1 X 1 2 0 7 11 406.404�` 925 13ozeman, ,MT 5971 B o z c ma n, N41 597'i"1 1'° 4W404.1926 April 22, 2014 Honorable Mayor, City Commissioners, and City Manager City of Bozeman, Montana 121 N Rouse PO Box 1230 Bozernan, Montana 59771-1230 Dear Honorable 'Mayor, City Commissioners, and City Manager: Thank you for the opportunity to submit this proposal for independent financial audit services for the City of Bozeman, Montana for the fiscal. years ending June 30, 2014 and 2015. We are confident that our years of experience in auditing have prepared us to serve you with the highest level of efficiency and excellence. In addition, we are committed to superior client service throughout the year. We would be very pleased to have the City as a client and personally commit to you the most effective use of our resources at a reasonable cost. We perform quality work conducted in a professional, efficient and timely manner. Weare comillitted to completing the City's audit within the specified time frame and to meeting interim dcadhries based on Clic pre-audit planning rncetings. We are confident that you will be pleased with our dedication to you as a client. The following individuals will be authorized to make representations for .Arnatics CP.A Group: 'Ferry Alborn, Audit Shareholder Morgan Scarr, Audit Manager Both can be reached at our office: 220 West Larnme, Ste 3A, Bozeman, NIT59715, (406) 404-1925. Should you have any questions or would like us to rneet with you for-.in interview, we would be happy to do so. We look forward to discussing the possibility of serving your organization, Sincerely, I A-matics CPA Groip T-e%Td--g-4V-- 'ferry I., Alborn, CPA Shareholder Enclosures INAraaticsCPA,com CITY OF BOZEMAN, MONTANA AUDIT PROPOSAL PROFILE OF THE PROPOSER Amatics CPA Group was formed as a spiry off from Junkern-iier,Clark,Campanella,Stevens,PC UCCS). Amatics personnel worked for many years for JCCS having built a respectable reputation based on a solid determination to be a leader in the accounting industry in Montana. We strive to understand your organization's changing needs and to provide a support system of highly trained professionals and staff. The Amatics office is located in Bozeman and consists of 24 employees (including 13 CPAs). We have three shareholders, seven managers, three senior accountants, two staff accountants, five bookkeeping staff and four administrative support staff. We offer a wide range of services,including audits,reviews,compilations,tam planning and preparation,business valuations, bookkeeping and payroll. SUMMARY OF THE PROPOSERS QUALIFICATIONS Amatics CPA Group is independent with respect to the City of Bozeman, Montana, as defined by the American Institute of Certified Public Accountants (AICPA). The CPAs who will be involved in the audit hold current certificates as Certified Public Accountants in the State of Montana. We are registered on the Roster of Independent Auditors Authorized to Conduct.audits of Montana Local Government Entities. We are members of the AICPA and adhere to the AICPA's professional standards of audit practices and conduct. Amatics CPA Group has no record of substandard work. This can be verified with the Montana State Board of Certified Public Accountants. In order to maintain the highest professional standards,Amatics CPA Group emphasizes continuing professional education to keep all professionals up-to-date on recent accounting and auditing developments. Our auditing staff attends an annual governmental accounting and auditing update each year, and continues to keep informed of recent accounting updates and issues. We emphasize governmental accounting and auditing in our staff education and training,and continue to exceed continuing professional education (CPI) requirements. We are enrolled in the AICPA Peer Review program administered by the Montana Society of Certified Public Accountants. JCCS received an unqualified report on the quality control of their accounting and auditing practice for the year ended June 30, 2011 (a copy of which is enclosed, as listed in the Table of Contents), of which the employees of Arnatics were part of the sample engagements received. Our firm maintains high standards of duality control to ensure that our performance is of the utmost professional quality. Staff accountants are closely supervised and their work is reviewed in detail by management. In addition, the engagement shareholder reviews the audit workpapers as well as the audit reports. We also utilize quality control checklists to ensure that all aspects of the engagement conform to professional standards. Our firm is a member of the AICPA Governmental Audit Quality Center. Our firm maintains high standards of quality control to ensure that our performance is of the utmost professional quality. Staff accountants are closely supervised and their work is reviewed in detail by management. In addition, the engagement shareholder reviews the audit workpapers as well as the audit reports. 2 CITY OF BOZEMAN, MONTANA AUDIT PROPOSAL Engagement Audit Team Terry Alborn will be assigned as the engagement shareholder for the audit. Terry has over 30 years of experience in governmental accounting including performing the independent review of the Cities of Bozeman, Belgrade, Three Forks, Big Timber, Livingston, West Yellowstone and Dillon audits. He is also the shareholder for the Montana Municipal Interlocal Authority's (MMIA) audits. He will be responsible for directing the day-to-day activities of the audit staff and ensuring that the audit plan is executed as scheduled. joining him on this engagement will be audit managers Morgan Scarr and Heidi Giem, senior accountant Austin Schuerg, and staff accountants. We believe our engagement service team will provide highly professional service in a timely way. Their combined experience is an invaluable resource for our team and the City of Bozeman. Resumes of our professional staff*involved in this engagement are included in Appendix A. As a firm,we are committed to providing our personnel with the continuing professional education opportunities necessary for them to not only fulfill responsibilities assigned them during an engagement, but also to succeed within the firm. Our policies and procedures for professional development provide assurance that our staff is taking advantage of these opportunities. Governmental Auditing Experience Our firm has a wealth of experience in governmental auditing including audits performed for the following municipalities: City of Belgrade, Montana City of Livingston, Montana City of Three Forks, Montana Town of West Yellowstone, Montana Town of Sheridan, Montanari Montana Municipal Interlocal Authority (MMIA) City of Dillon, Montana City of Big"Timber, Montana References you may contact include: Client Name Title Phone City of Livingston Jessie Hogg Finance Director (406) 823-6003 City of Belgrade Phyllis Wernikowski Finance Director (406) 388-3762 City of Big Timber Gayle McPherson Clerk (406) 932-5610 Town of West Yellowstone Lanie Gospodarek Finance Director (406) 646-7795 City of"Three Forks Darcy Perenoud Clerk (406) 285-3431 MMIA Prudence Wigen 070 (406) 443-0907 3 CITY OF BOZEMAN, MONTANA AUDIT PROPOSAL SCOPE Based on your request for submission of a proposal for annual independent financial audit services, we understand your needs to be as follows: 1. An audit conducted in accordance with Generally Accepted .Auditing Standards for the years ending June 3[}, 2014 and 2015, and in accordance with Goverraaneaat Auditz7zg Stai7dards issued by the Cornptroller General. The audit will be performed following the requirements of the Department of Administration Standard Audit Contract for audits of local governments, the Single Audit Act of 1984; 01\/TB Circular A-133, G.ASB''s Statement 34,the AICPA Audit aaadAceouratingGuidefrrrAudits©fStute andLocal Goivrrament Uztits (ASI,GU), and rules established by the State Department of Commerce and Local Government Services Audit Bureau. 2. The auditors will prepare reports on the following: the fair presentation of the basic financial statements in conformity with generally accepted accounting principles, the internal control structure based on the auditors' understanding of the control structure and assessment of control risk, compliance with applicable laws and regulations, supplernental information schedule of federal financial assistance, the internal control structure used in administering federal financial assistance programs, compliance with specific requirements applicable to nonmajor federal financial assistance programs, compliance on general requirements applicable to federal financial assistance programs, and any and all other reports required by nexv standards. 3. The auditors will prepare the entire CAFR, including the government-wide and fund level statements, the combining and combined financial statements, notes to the financial statements, and Schedule of Federal Financial Assistance. The auditors will submit a draft copy of the financial statements to the City at least two weeks prior to the final report date for review. 4. In addition to the normal internal control review procedures, the auditors will perform an in-depth review of the City's internal control procedures of one area each year, as selected by the City. S, The auditors will familiarize themselves with and comply with the provisions of any and all federal, state and city orders, statutes, ordinances, charter, bond covenants, and adrninistrative rules and regulations which may pertain to the work required in the engagement. G. We Nvill conduct an entrance conference with the audit committee prior to the beginning of field work targeted to begin in September. 7. We will meet with the Director and Controller for the purpose of reviewing the City's audit findings and recommendations prior to the issuance of management letters, certifications or reports. 8. We will present the final reports to the audit committee and the City Commission. 9. Our workpapers will be retained for at least four years and will be made available to representatives of the appropriate Federal agencies, the General Accounting Office, the City,and the State of Montana. 4 CITY OF BOZEMAN, MONTANA AUDIT PROPOSAL 10. Our engagement is subject to the inherent risk that material errors,irregularities,or illegal acts,including fraud or defalcations, if they exist, will not be detected. However, if any such matters come to our attention,we will contact the City and discuss appropriate procedures which may be necessary.. 11. Your offer of assistance to the auditors by the City's staff members would be a positive experience for both parties. Increased knowledge and understanding of audit requirements and improved communications between the auditor and client are some of the benefits that would be achieved through this process. We expect to involve staff members in implementing audit theory, achieving audit goals and assisting in fieldwork. Audit Approach The audit of the City of Bozeman, Montana,will be performed in accordance with Generally Accepted Auditing Standards and Government Auditing Standards. Once the audit contract is secure, we will begin the audit planning phase. The planning phase includes updating our knowledge of the City's accounting system, policies and procedures; evaluating internal controls; determining the nature, timing and extent of the audit testing procedures; preliminary judgment of materiality; and coordinating the work to be accomplished throughout the audit to achieve the end goals. Internal control evaluation will be based on the results of testing samples of revenues and disbursements. We will also consider the adequacy of policies and procedures to effectively mitigate the risk of errors, irregularities, or misstatements. We then use our evaluation to determine the nature, timing and extent of audit testing and to design our audit procedures. Preliminary judgment of materiality is based on the assessed risk of material misstatement, the amount and types of assets and revenues and the nature and frequency of prior proposed audit adjustments. An initial determination of major funds for GASB 34 reporting will also be an integral part of assessing materiality. Subject to the results of the planning process, our testing approach will be risk-based. Testing in certain areas will be primarily substantive in nature while testing in others may consist more of analytical procedures. Substantive testing may include confirming material balances with third parties and vouching significant additions to asset balances. We will also use analytical procedures to identify and investigate large and unusual variances from predicted or budgeted account balances or totals. Our testing will concentrate on individually significant items. For areas of lower risk, we will rely on analytical procedures such as inquiry and observation and comparison of amounts to previous years and to budget. Resources will be used to ensure that the financial statements and footnotes are properly presented,in all material respects, and that all required disclosures are included and all relevant pronouncements are adopted. We utilize the Practitioners Publishing Company's Audits of'.Lowl Goavernments as our primary reference source and audit planning tool. This guide is an excellent reference., providing up-to-date information and authoritative requirements as they relate to municipal audits. We also refer to the AICPA.Audit eandAccounting Guideftr.Audits Y'. 'tate and Loeal Gowni;97ents. We utilize Caseware audit software for our auditing documentation and testing, We use the state compliance checklists for familiarizing our audit team with the Montana laws and regulations for which the City must comply. 5 CITY OF BOZEMAN, MONTANA AUDIT PROPOSAL PEER REVIEW REPORT The most recent peer review report in which Amatics employees were *included is submitted in Appendix B. ADDITIONAL DATA Discrimination In the performance of the audit, 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. We recognize that an eventual audit contract will contain a provision prohibiting discrimination and that this prohibition on discrimination shall apply to the hiring and treatment of our employees and to all subcontracts. COMPENSATION Our hourly rates are comparable to the rates of other independent accounting firms. We also strive to provide our services in .L more efficient manner. To do so, we make an effort to be informed about your financial activities throughout the year, in order to provide assistance as needed during the year, rather than waiting until year-end to make all financial decisions. Although we furnish services to a large number of clients,we recognize our responsibility to provide personalized service. Over the term of the engagement, the same professionals will be involved to maximize efficiency and provide continuity. Our staff will also be available throughout the year should our services be needed in a management advisory service capacity. The following are the estimated total hours and all-inclusive maximum fees for the requested work for fiscal years 2014 and 2015: Total Maximum Hours Fee Fiscal Year 2014 400 $ 36,750 Fiscal Year 2015 375 $ 36,750 Appendix C presents hourly rates to be charged for each staff classification, 6 APPENDIX A TERRY L ALBORN, CPA Shareholder Experience • Over 30 years in public accounting • .audit—governmental, non-profit and for profit organizations o Financial reporting and internal controls a Tax planning and preparation—individuals,business and non-profit • Peer Reviewer under AICPA Peer Review program Education O Bachelor of Science in Accounting—Drake University Memberships and Community Involvement • Bozeman Chamber Board of Director ® Bozeman Chamber Lead Group member • AICPA Governmental Audit Quality Control Center 7 MORGAN SCARR, CPA Manager Experience • 7 years in public accounting « Audit—governmental, non--profit, and for profit organizations o Financial reporting and internal controls • Tax planning and preparation—individual, business, non-profit o Chair of Amaties CPA Group's Audit Committee Education • Bachelor of Science in Accounting—Montana State University o Masters of Professional Accountancy—Montana State University Memberships and Community.Involvement o Montana State University College of Business Accounting Advisory Council • Montana Society of Certified Public Accountants o AICPA Governmental Audit Quality Control Center o Bridgercare Treasurer m Event volunteer with HAVEN, Big Brothers Big Sisters, Museum of the Rockies ® Leadership Bozeman 23 �r 8 HEIDI GI:E , CPA Manager Experience O 6 years in public accounting 0 Audit—governmental, non-profit anti for profit organizations m Financial reporting and internal controls O Tax planning and preparation—individuals, business and non-profit Education • Bachelor of Science in Accounting--Montana State University • Master of Professional Accountancy—Montana State University Memberships and Community Involvement • Montana Socieq, of Certified Public Accountants a AICPA Governmental Audit Quality Control Center o Greater Gallatin Watershed Council"Treasurer • Event volunteer with Big Brothers Big Sisters, Bozeman rotary, Museum of the Rockies ,rw r' a, i 9 AUSTIN SCHUERG, CPA Senior Accountant Experience a 3 years in public accounting a Audit—governmental, non-profit, and for profit organizations a Financial reporting and internal controls a Tax preparation—individual and non-profit a Trustee--Amatics Pension Committee Education a Bachelor of Science in accounting—DePaul University, Chicago Memberships and Community Involvement a Montana Society of Certified Public Accountants (MSCPA) a MSCPA Governmental Accounting,Auditing, and Financial Reporting (GA.A FR) Committee Board Member a American Institute of Certified Public accountants (AICA) a AICPA Governmental Audit Quality Control Center a Bozeman Chamber of Commerce 10 APPENDIX HE INO LD - BAN WART , LTD Certifk-.d Public Accountants Rivcrfront Of(ke Center 2,400 N. Main StreeEast Peorlo, IL 6d W-1795 Tei 309,694.42 51 rax 309 694,4202 System Review Report November 9, 2011 To the Shareholders of Junkermier, Clark, Campanella,& Stevens,P.C. and the Peer Review Committee of the Montana CPA Society We have reviewed the system of quality control for the accounting and auditing practice of Junkennier, Clark, Campanella,&Stevens, P.C. (the firm} in effect .for the year ended June 30, 2011, 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, The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.org1prsumma[y. As required by the standards, engagements selected for review included engagements performed under Government AuditingStandards and audits of employee benefit plans. In our opinion,the system of quality control for the accounting and auditing practice of Junkermier, Clark,Campanella, & Stevens,, P.C. in effect for the year ended June 30,2011, 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. Firrns can receivei, rating of pass,pass with deficieniy(ies) or/ail. Junkermier, Clark, Campanella, & Stevens,P.C. has received a peer review rating of pass. 19 wv,-w�/ APPENDIX HOURLY BILLING RATES BY STAFF CLASSIFICATION Shareholder 5200 per hour Manager $130 per hour Senior '$100 per hour Staff Accountant $80 per hour 12