HomeMy WebLinkAbout2014 RFP Financial Audit: Anderson Zurmuehlen, proposal onderson
ZURMUEHLEN
Proposal for
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N;,.•i0
l� CO.
for Annual Independent Financial Audit
Services for the City of Bozeman,
Montana
April 22, 2014
Anderson ZurMuehlen &Co., P.C. • 1019 Main Street, Ste 201 ■ Bozeman, MT 59715
Contact: Kyla Q. Stafford, Shareholder Phone: 406.556.6160 Fax: 406.586.8719 E-Mail: kstafford@azworld.com
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ZURMUEHLEN
Section 1
Table of contents
1. Title Page
Tableof Contents......................................................................................................................... 1
2. Letter of Transmittal..................................................................................................................... 2
3. Profile of the Proposer..................................................................................................................3
4. Summary of Proposer's Qualifications.........................................................................................6
a. Engagement Team.....................................................................................................6
b. References.................................................................................................................7
5. Scope Section................................................................................................................................8
a. Audit Approach and Methodology.............................................................................8
b. Segmentation and Scheduling............................................................................... 10
6. Review Letter.............................................................................................................................. 11
7. Additional Data.......................................................................................................................... 12
Section 2
Compensation .................................................................................................................................. 14
Appendix
Resumes............................................................................................................................................ 15
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 1
ondeisonANDERSON ZURMUEHLEN & CO., P.C. • CERTIFIED PUBLIC ACCOUNTANTS&BUSINESS ADVISORS
ZURMUEHLEN MEMBER:AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MSI GLOBAL ALLIANCE INDEPENDENT MEMBER FIRM
LQ 8 Section 1.2 Letter of Transmittal
to m �
Q o April 22, 2014
Z City of Bozeman
0 Attention: Member of the Audit Committee
Z InP.O. Box 1230
2 Ui
Bozeman, MT 59771-1230
W
N '
mDear Audit Committee Members:
N co Anderson ZurMuehlen & Co., P.C.is pleased to present our proposal for annual independent
financial audit services for the City of Bozeman, Montana. Based on your request for proposal, we
U) understand your needs to be:
Financial Statement Audit and A-133 Audit for the fiscal years ending June 30, 2014, and
2015, conducted in accordance with auditing standards generally accepted in the United
U, Lq States of America (GAAS)as set forth by the American Institute of Certified Public Accountants,
o In Government Auditing Standards issued by the Comptroller General of the United States,the
o Single Audit Act Amendment of 1996 as prescribed in OMB Circular A-133, and AICPA
w professional standards.The audits will include an overall review of the City of Bozeman's
financial and accounting systems and procedures.
■ Expression of an Opinion and Preparation of the Comprehensive Annual Financial Report,
prepared in conformity with accounting principles generally accepted in the United States.
This will include all certifications and reports required by the Federal government for Federal
monies the City of Bozeman and BID have received and certifications and reports required by
the State for compliance with State laws regardingthe financial reporting of municipalities and
the preparation and submittal of the Data Collection Form to the Federal Audit Clearinghouse.
Your benefits in selecting Anderson ZurMuehlen to perform audit services include:
■ Our experience serving local governments. Local government audits are an area of
specialization for our firm and we have devoted significant resources to enhancing our skills in
this unique sector of our practice. We have many years of experience providing services to a
variety of local governments. Our ongoing professional education program focuses on
continually building the technical and industry-related knowledge base of our professionals,
enabling them to develop an in-depth understanding of the specific issues our local
government clients face.
■ Best qualities of large and small firms. Our size gives us access to a depth of experience not
available in smaller firms and the resources required to enhance staff's knowledge and tools.
At the same time, we have not grown to the size that personalized attention to your needs is
lost.
We look forward to servingthe City of Bozeman and believe this proposal accurately summarizes
your expectations and our understanding of the engagement.
Sincerely,
Anderson ZurMuehlen &Co., P.C.
William G. Mills, CPA Kyla Q.Stafford, CPA, CFE
Shareholder Shareholder
section 1.3 profile of the proposer
Firm Overview
■ Established 1957, Anderson ZurMuehlen is Bozeman Office Range of Services
a regional Certified Public Accounting and Anderson ZurMuehlen provides clients in all
Business Advisory firm. industries with assistance in traditional
■ Headquartered in Helena, Montana; offices service areas (accounting, audit and tax) as
in Billings, Bozeman, Butte, Great Falls, well as other, more specialized areas. These
Helena, and Missoula, Montana areas include technology services, employee
■ Over 240 employees, 45 of which are benefit services, business valuation, litigation
shareholders support, succession planning, and enterprise
• Named as one of the top 200 accounting risk management services.
firms in the U.S. by Inside Public Accounting
(ranked 115t1,) Attest Services
■ Member,American Institute of Certified Our attest services include audits, reviews,
Public Accountants (AICPA);A1CPA Private compilations, and examinations of specific
Companies Practice Section;AICPA Large accounts, items, and transaction elements.
Firm Network; Eide Bailly Practicewise We also assist organizations in designing and
Network; MSI Legal and Accounting Network implementing internal control systems and
Worldwide provide monthly, quarterly, and annual
• Shareholders serve in a wide variety of local, accounting services. Our engagement teams
state, and national professional routinely look beyond compliance and present
associations; many employees heavily practical and constructive recommendations
involved in community service organizations to help our clients achieve their business
■ Most recent peer review opinion (year ended objectives.
May 31, 2011) was "passed"
■ Our mission, vision, and core values (view at Our attest services are governed by a quality
www.azworld.com) are more than control document(QCD)to ensure
impressive words;they're who we are consistency, provide the necessary checks
and balances, and ensure quality service to
Independent audit services will be staffed out our clients. Our extensive use of technology
of our Bozeman, Montana office located at: maximizes efficiency and communication,
while minimizing our footprint in the client's
Anderson ZurMuehlen &Co., P.C. business. This technology includes a
1019 E Main St, Ste. 201 paperless work environment, data extraction
Bozeman, Montana 59715 software, and benchmarking software.
Contact: Kyla Stafford, CPA
Phone: 406.556.6160
Fax: 406.586.8719
E-mail: kttafford@azworld.com u
Bozeman Office Demographics "
Professional Level
Partners 3
Managers 4
Supervisors 3
Senior Consultants 2
Staff Consultants 3
Administrative Professionals 3
Total 18
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 3
section 1.3 profile of the proposer continued
Controller Services
We provide the following controller services: plans to meet employer goals. Qualified plans
■ Temporary and full-service contract are the largest tax shelters available. We
bookkeeping and accounting provide administration services and staff
■ Financial statement preparation orientation for qualified plans, including
401(k), profit sharing, money purchase
■ Budgeting pension, and ESOPs. Our staff has the
■ Controller services technical knowledge and experience required
to ensure compliance with the complex
■ Development of procedures manuals regulations governing these plans. We also
■ Accounting system design and controls review and design nonqualified deferred
compensation arrangements.
■ Customized management reports
Advisory and Risk Management Services
■ Monthly, quarterly and annual payroll As businesses plan for the future,valuation
reports services are essential to certain key decisions.
Our Controller Services department provides Our specialists have many years of
specialized support for clients, using experience, enabling them to provide
QuickBooks®. The support offered by our valuation reports that make sense and will
Certified ProAdvisors includes new stand up against the toughest of challenges.
installations,setting up new databases and Our consultants are also uniquely qualified to
advising on existing ones,general consulting, help owners understand how value can be
and training classes at the beginning, created and maximized in their businesses.
intermediate, and advanced levels.
Our litigation specialists know that every case
Technology Services is unique and understand both currently
Our Technology Services department provides accepted and emerging methods of
hardware analysis and selection,software calculating damages, as well as the relevant
evaluation, information systems development, economic factors. The key issues and facts of
implementation and project management, and each case are thoroughly analyzed,
custom report generation to a wide variety of computations are carefully y prepared, and
clients.
exhibits that juries and judges can easily
Clients across the nation look to us for understand are created. Our consultants
implementation and ongoing support for their have decades of experience in litigation,
specialized software packages. These including testimony at nearly 200 trials.
packages include Microsoft Dynamics GP
(formerly Microsoft Business Solutions Great
Plains)and Microsoft Dynamics SL(formerly
Microsoft Business Solutions Solomon). To
ensure our knowledge of each system is F
comprehensive and to provide the highest
level of support for our clients, we consciously
limit the number of software solutions we �
support.
Employee Benefit Services rr
Benefits are a major expense for most ► '
organizations. Through our sister company,
Employee Benefit Resources, Inc. (EBR),we
review and design retirement/profit sharing
Proposal for Annual Independent Financial Audit Services to
City or Bozeman Page 4
section 1.3 profile of the proposer continued
Continuing Professional Education License to Practice in Montana
Resumes for the engagement team members Our firm and all our Montana CPAs hold
accompany this proposal. All of the current licenses to practice in the State of
engagement team members have obtained Montana. We are also registered with the
the required continuing education under Montana Department of Administration and
Government Auditing Standards and are are included on the "Roster of Independent
licensed to practice in the State of Montana. Auditors Authorized to Conduct Audits of
Montana Local Government Entities."
We have dedicated professionals in each of
the services we offer. Anderson ZurMuehlen's What Sets Anderson ZurMuehlen Apart?
Continuing Professional Education program In differentiating Anderson ZurMuehlen from
focuses on continually building the technical other firms we ask you to consider the
and industry-related knowledge base of our following:
professionals so they can develop an adept ■ Our extensive history with local
understanding of the specific issues our governments has given us unique insight
clients face. By developing an understanding into your processes, enabling us to
of the nuances of an industry, our provide value-added services.
professionals are able to deliver tailored ■ Our partner-level concurring review
solutions to meet your needs. process provides an added measure of
quality assurance to your audit.
Quality Control Matters ■ Our team approach makes it possible to
Anderson ZurMuehlen is confident ofn the draw upon the firm's extensive
quality of our work, as evidenced by our professional staff for consultation and
enrollment in the AICPA's Peer Review technical expertise.
Program and participation in the AICPA's ■ Our technology provides you with instant
Government Audit Quality Control Center. access to any of our staff members
Anderson ZurMuehlen adheres to the AICPA wherever they may be, as well as
professional standards of audit practices and providing them access to each other and
conduct. None of the engagement team the work product.
members or the firm have been the subject of Our desire to maintain relationships at all
any complaint or disciplinary action by any levels between our firm and your
oversight body. organization helps ensure that we can
respond in a timely manner to your needs
Independence and provide you with the best possible
Our firm is independent with respect to the service.
City of Bozeman under the AICPA Code of
Professional Conduct and Government
Auditing Standards. We know of no past or
present relationships between our firm or its
employees and the City of Bozeman, its
affiliates or its employees,which would
represent a conflict of interest or a violation of
applicable independence rules. Should we be
appointed as your auditors, we will continue to
take affirmative steps to ensure that
independence is maintained throughout the
term of our engagement.
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 5
section 1.4 summary of proposer's qualifications
A. Engagement Team
Bill Mills,Shareholder, will be the lead
partner to the City of Bozeman. Bill will
provide concurring review for the audit prior
to issuance and will direct the team on key
technical areas. Bill has over 20 years of
governmental experience.
�r
Kyla Stafford,Shareholder, will serve as the ='
primary liaison to the City of Bozeman. Kyla ;
will be responsible for approval of the overall —
audit plan and final review of the audit report
and financial statements. She has over 15
years of governmental experience.
Jessica Van Voast, Manager, will serve as the
engagement manager responsible for the
detailed planning, performance of the audit,
supervision of fieldwork, preparation of audit
reports, and providing overall administration of the audit.
Stefeni Freese, Shareholder,will serve as concurring reviewer. Stefeni will be responsible for the pre-
issuance review of all reports and for concurring on technical matters related to the audit and
reports. The concurring review is an integral part of our firm's quality control program. Stefeni has
over 25 years of governmental experience.
Additional staff level personnel will assist the team with detailed auditing procedures.
Dedicated, Experienced Resources
Anderson ZurMuehlen has assembled an engagement team comprised of individuals who have
extensive experience performing audit services for governmental entities. Each of these individuals
will devote significant time to the engagement and ensure that all aspects of the work are executed
in conformity with the firm's quality standards. Resumes are included in the appendix on beginning
on page 15.
Your business is important to us, and we understand the importance of providing experienced
resources to you. We are dedicated to making you successful and providing clear communication
throughout the process. We believe the key ingredient to effective professional services is the
strength of the personnel involved. We trust that you will find our staff to be professional,technically
qualified and personally enjoyable to work with. It is our goal to provide you with an engagement
team that is capable, congenial and efficient.
Affirmative Action
Anderson ZurMuehlen does not discriminate against employees, students, or applicants on the basis
of age,color, disability,gender, national origin, political affiliation, race, religion, sexual orientation,
genetic information,veteran status, or any other basis protected by law.
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 6
section 1.4 summary of proposer's qualifications
B. References
The past performance of a firm is critical to evaluating and selecting an auditor. A keyfactor to
consider in evaluating an audit team is the ability to deliver quality services in an independent and
objective manner while maintaining a cooperative working relationship and advisory attitude that
fosters tangible benefits.
Our firm has acted as the auditors for numerous governmental entities, including the City of
Bozeman. Presently, Anderson ZurMuehlen serves as the independent auditors for over 20 local
governments and 400 non-profit organizations. Our governmental clients include counties, cities,
school districts and other government entities. The majority of these clients require single audits.
The individuals listed below may be contacted regarding audit services as independent auditors.
Bozeman School District Lewis and Clark County
Mr.Steve Johnson,Assistant Superintendent Ms. Nancy Everson
PO Box 520 316 N. Park Ave
Bozeman, Montana 59771-0520 Helena, Montana 59601
406.522.6050 406.447.8331
*Single Audit, GFOA Certificate *Single Audit, GFOA Certificate
Client since 2002 Client since 2000
Gallatin County Yellowstone County
Jennifer Blossom, Internal Auditor Mr. Scott Turner, Finance Director
311 West Main, Room 202A Courthouse 4th Floor, 217 N 27th St
Bozeman, Montana59715 Billings, Montana 59101
406.582.3079 406.256.2718
*Single Audit *Single Audit
Client since 2004 Client since 2002
City of Choteau Other Local Government Entity Experience:
Ms.Jodi Rodgers, Finance Officer City of Missoula
PO Box 619 City of Helena
Choteau, Montana 59422-0619 City of Conrad
406.466.2510 Manhattan School District
*Audit Big Sky Economic Development Authority
Client since 2006 Flathead Airport Authority
Great Falls School District
Flathead County Missoula County Airport Authority
Mr. Mike Pence, County Administrator Public Housing Authority of Butte Yellowstone
800 South Main City-County Health Department(RiverStone
Kalispell, Montana 59901 Health)
406,758.5503 Fort Smith Water and Sewer District
*Single Audit Flathead Municipal Airport Authority
Client since 2008 Bert Mooney Airport,Authority
Missoula Redevelopment Agency
Missoula Parking Commission
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 7
section 1.5 scope section
Analytical Review Procedures During our planning phase, we will discuss
Generally accepted auditing standards require potential risk areas, including fraud risks, with
that we perform analytical procedures in management and other key leaders, in
three ways: developing our audit program.
■ as a part of the audit planning process
■ as a part of substantive auditing Audit Manuals and Programs
procedures Our firm uses internal controls checklists and
■ in the final review process programs tailored for audits of governmental
entities developed by Practitioners Publishing
The following is a summary of our anticipated Company(PPC). We will tailor the
analytical review procedures: methodologies and concepts suggested by
PPC to the City of Bozeman, and customize
Planning An, h,,tic-a! standard programs to be uniquely geared to
■ Comparison of actual revenues and specific areas. We also utilize paperless audit
expenses to budget software provided by CCH. The paperless
■ Comparison of operating system,coupled with our wireless
performance data to prior year and communications,gives all our engagement
budgeted amounts team on-line access to working papers, audit
■ Comparison of preliminaryfinancial
manuals and research tools from any location,
at anytime.
statement data to the prior year
Slihsl Audit Sampling Methodology
■ Predictive tests of certain revenue and We plan to use audit sampling for selected
expense items tests of controls and transactions. Our
■ Comparison of detailed balance sheet determination of whether to sample, and
and revenues/expense line items to prior sample sizes in each of these areas, is based
year and budget where applicable on our overall audit strategy and our
Final , assessment of risk, as described above. We
■ Comparison of financial statement line may utilize statistical attributes-type sampling
items and disclosure items to prior year for tests of controls,statistical dollar-unit type
and identification of any unexpected sampling for certain substantive sampling and
change non-statistical sampling for other substantive
tests and certain compliance testing. Our
A. Audit approach and methodology attributes sample sizes are typically based on
Our approach to the audit of the City of a moderate planned assessed level of control
risk, a 10% risk of assessing control risk too
Bozeman will be a risk-based approach low, and no anticipated errors.
whereby we identify areas of greatest audit
risk through our preliminary planning process, Non-statistical sampling for substantive tests
and focus our audit efforts in these areas. is based on our assessment of materiality and
detection risk.
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 8
section 1.5 scope section continued
Detailed Audit Approach
The following describes our overall approach to the engagement:
E�l E>
1 W•With the assistance •Perform tests of •Perform final
of management, controls,evaluate analytical review
develop an overall results,and consider procedures.
audit approach. whether modification •Draft audit reports,
•With the assistance of substantive tests management letters,
of management, is necessary. or certifications.
determine a timeline •Evaluate the City of •Review drafts with
to ensure that all Bozeman's Controller.
areas in the schedule compliance with laws -Submit final reports
are appropriately and regulations and present the
tested. through testing of the results to the Audit
•Obtain and State Compliance Committee.
document Supplement.
understanding of •Evaluate
internal controls achievement of
relative to overall objectives and
audit strategy. identified
•Assess risk of misstatements
material mis- and/or
statement at the noncompliance.
financial statement •Consider the need to
level,risk of material apply additional
fraud,and risk of procedures.
noncompliance on •Evaluate financial
major federal statement
programs. presentations,
•Perform preliminary including disclosures.
analytical review •Conduct an exit
procedures. meeting with
•Make preliminary management prior to
materiality exiting the field.
This approach is designed to provide efficient coverage by(1) emphasizing risk and materiality
assessment in the audit planning phase, (2) utilizing tests of controls where appropriate to support a
reduced level of control risk and thereby minimize substantive procedures, and (3) maximizing
analytical review procedures in areas where they yield effective audit results.
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 9
section 1.5 scope section continued
B. Segmentation and Scheduling
We are confident we can meet the City of Bozeman's timeline set forth in the RFP. Below is our plan
for completingthe audit within the specified deadlines. Our work schedule consists of four major
segments. We will finalize dates after discussion and consultation with the Audit Committee.
We will perform this phase during the period from when we are appointed as your
auditors through the fieldwork phase of the engagement each year. This phase
Planning consists of a planning meeting with management, an entrance conference with the
Audit Committee,finalization of the audit risk matrix and preliminary scheduling of
fieldwork dates. The schedule and procedures will be developed in conjunction
with and approved by management and the Audit Committee.
40
This phase consists of tests of controls and year-end cutoff work. We will provide a
Interim/ comprehensive list of all documents and schedules required for the audit. We
Pre-Field Work expect all requested schedules and documents to be completed upon our arrival to
perform fieldwork,or in the time frame identified.
4
As requested in your RFP, general audit fieldwork other than interim audit work and
confirmations will take place after the second week of September each year and
Fieldwork will include a progress reportto management as field work progresses. This will be
scheduled to begin as soon as your books are closed and management has
provided the information we will request. This phase consists of completion of
tests of controls, and performance of substantive tests.
4
We will prepare and present the audit report and management letter drafts to
management at least two weeks prior to issuing a final report. We will provide 25
Reporting copies of the final audit reports and 20 copies of the building inspection report and
the management letter. We will present the final audit report to the Audit
Committee, as requested, and will give an oral presentation to the City Commission
after the final audit is delivered to the City of Bozeman.
We will plan to meet the delivery schedule agreed to by us and the Audit Committee. Should
circumstances beyond our control arise which would affect our schedule,we will notify you
immediately. Anderson ZurMuehlen has over 30 consultants who are "Yellow Book" qualified and
have governmental audit experience; we can also draw on others within the firm to meet client
deadlines and expectations.
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 10
section 1.6 review letter
Peer Review Letter
BMDY
MXRTZ
CERTIFIED PUBLIC ACCOUNTANTS
AND CONSULTANTS
System Review Report
June 30, 2011
To the Partners of
Anderson ZurMuehlen&Co., P.C.
and the Peer Review Committee of the Montana Society
of Certified Public Accountants
I
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, 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,limitabons of, and the procedures
performed in a System Review are described In the standards at www.aicna.org/prsummarv.
As required by the standards, engagements selected for review included audits performed
under Government Audit Standards,OMB Circular A-133 and audits of employee benefit plans.
In our opinion, the system of quality control for the accounting and auditing practice of Anderson
ZurMuehlen&Co., P.C. in effect for the year ended May 31,2011, has been suitabty 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(les)or tall. Anderson ZurMuehlen&Co., P.C.has received
a peer review rating of pass.
Brady Martz=Iiates,P.C.
HRAOY,MARTZ&A55CCIATES,PC
dui Censers Avenue Suite 300 PO.FQ%142%
Grand Forks,Nn S8206-4196(701)775-4685 fax u0n 795.741,18
v.%Y%Ybr,3tmxtt corn McGunaar*JiiL—e ) MCGladrey
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 11
0
section 1.7 additional data
Maintaining Effective Communications In all our communications we strive to keep an
A positive working relationship with you is vital independent and objective perspective while
to a successful engagement. Our approach to offering useful and constructive
maintaining this relationship includes: recommendations. Our intention is to focus
■ Utilizing personnel who are technically on matters that are significant and avoid,to
qualified, possess good interpersonal the extent possible,trivial matters.
skills, and maintain a positive client
service attitude We believe that our methodology provides you
■ Maintaining flexibility in our engagement with an audit that is efficient and effective.
schedule and in our requests for Our risk-based approach ensures that
assistance from your staff significant areas receive the greatest audit
resources. Our balanced combination of risk
■ Recognizing established lines of authority assessment,tests of controls and tests of
at the City of Bozeman and ensuring that transactions provides comprehensive audit
communications are directed to the coverage with an appropriate level of effort
proper levels and cost. Our emphasis on client service will
■ Providing explanations and instructions provide the City of Bozeman with the highest
when requesting assistance quality audit services aimed at positive,
■ Avoiding insignificant audit comments constructive benefits.
and explaining the relative significance of
matters that are required to be reported
■ Discussing sensitive issues at the earliest
possible time and maintaining open
� „ •
communication so that such issues can i
be resolved well in advance of issuing the ,:
audit report
We believe the best way to maintain a positive t
working relationship with you is to consider
your staff as much a part of the engagement
team as our own staff. Working together in a
cooperative and supportive way will ensure
that the objectives of the engagement are
achieved by all of us, and we can thus share
in the satisfaction of a job well done. -
1
Philosophy Regarding Audit Findings and _
Report tl
Like our approach to maintaining a positive
client relationship, our philosophy regarding
the content and communication of audit
reports reflects our primary goal of providing
constructive client service.
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 12
section 1.7 additional data continued
Approach to Consideration of Internal Controls Work paper retention
Our approach to consideration of the City of All working papers will be retained for a
Bozeman's internal controls is based on an minimum of five years from the date of the
integrated risk assessment philosophy and audit report. We will make the working papers
includes the following: available upon request for no additional fee.
■ Evaluate control environment factors In addition,we will respond to requests from
■ Evaluate accounting systems factors successor auditors and allow them to review
(transaction initiation, recording, working papers related to the audit report.
valuation and classification, including
information systems) Independence Standards
■ Evaluate control procedures Independence is something we take very
• Identify potential for fraud, misstatements seriously at Anderson ZurMuehlen. Each new
and noncompliance attest client must be subjected to a rigorous
■ Document understanding of internal independence investigation before they are
controls accepted. In addition, a questionnaire is sent
■ Prepare and document risk assessment out annuallyto all Anderson ZurMuehlen staff
Our procedures to obtain this understanding regarding any relationships they may have
will be based on our current assessment of with attest clients. The responses to these
general environmental and risk factors, questionnaires are summarized by our Attest
inquiries and walk-throughs with City of Quality Control shareholder. It is his
Bozeman personnel, and review of records responsibility to determine if we have any
and documents. conflicts of interestthat may call our
independence into question. His report is
Use of Technology submitted to the CEO of our firm,and any
Our firm has championed the use of issues are resolved either through resignation
information technology in all areas of practice. from the engagement or other appropriate
We utilize automated workpaper software and means.
Microsoft Office products for various audit
memoranda and analysis. We also employ
data-mining techniques using IDEA®data
extraction software. Our auditors have remote
access to our network-based research
libraries, e-mail, client files, and the Internet.
It is our practice to maximize the use of IT in
the audit function because of the significant
efficiencies gained.
Because our paperless audit system is web-
based, our engagement team can collaborate
on the assignment from any location in the
world. Manager and partner reviews can be
performed without the need for on-site
presence
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 13
section 2 compensation
Anderson ZurMuehlen understands your need The fee proposal assumes the scope of the
to balance cost considerations with the audit will require testing of up to three of the
highest professional standards for quality City's federal grant awards as major
work. Our philosophy is to provide programs, as required for audits performed
comprehensive services to meet your needs under OMB Circular A-133. The receipt and
and exceed your expectations at the lowest expenditure of these awards would require
possible cost to you. additional audit effort, particularly for awards
that are determined to be major programs. If
Our fees are based on the time incurred by the scope of the audit requires testing more
our personnel in providing professional than three major programs, we will meet with
services at their standard hourly rates. the Audit Committee to discuss the estimated
Standard hourly billing rates are established impact on fees. A separate fee estimate is
for each professional based on level of skill provided in the event that no single audit is
and experience. Invoices will be billed required in a given year.
monthly as work progresses. Invoices are
payable upon presentation. With Single Audit
This fee includes attendance and presentation Anticipated
Professional Level Hours Total
to the City Commission, and responses to
routine accounting assistance questions Fiscal Year 2014 420 $ 39,500
throughout the year at no additional cost.
Fiscal Year 2015 420 $ 39,500
Our fee estimate is based on the presumption
that all accounts will be reconciled by the City
of Bozeman staff prior to the beginning of the Without Single Audit
audit and that bookkeeping services will not
be necessary. If accounts are not reconciled Professional Level Anticipated Total
or requested schedules are not received in a Hours
timely manner,the fee may be subject to a Fiscal Year 2014 400 $ 36,500
change order to reflect additional time Fiscal Year 2015 400 $ 36,500
required by us. Our fee for additional
assistance in closing year-end and adjusting
entries will be negotiated prior to completing
the work but will be at our standard hourly Hourly Rates Per Staff Classification
rates quoted below.
Professional Level Rate/Hour
If significant additional services are
requested, we will meet with you to discuss Partner $160
the nature,timing and extent of these services Manager $120
and the estimated fees associated with these
services. We do not anticipate incurring any Senior $90
costs related to travel,supplies and materials, Staff Consultants $70
preparation costs or any other costs that will
be passed on to the City of Bozeman.
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 14
appendix
Engagement Team Resume
Kyla Q.Stafford, CPA,CFE
■ Shareholder since 2007
■ Joined Anderson ZurMuehlen in 2001
Education
■ Master of Accountancy, Montana State University, Bozeman - 1998
■ Bachelor of Science in Business -Accounting Option - 1997
■ Bachelor of Arts in Modern Languages - Spanish Option - 1997
■ Continuing education through the Montana Society of CPAs,American Institute of
CPAs,Association of Certified Fraud Examiners, and Anderson ZurMuehlen
sponsored courses.
Experience
■ Accounting and auditing work includes design and implementation, audit examinations,valuation of
internal accounting control systems, and financial statement preparation and analysis for corporate,
governmental and nonprofit entities.
■ Internal control design and analysis, including systems review in accordance with standards
established by the Sarbanes-Oxley Act through the Public Company Accounting Oversight Board.
• Fraud examination experience includes assistance with detection and calculation of losses, insurance
reporting, and litigation support.
■ Tax experience includes income tax planning and preparation of returns for individuals, corporations,
partnerships, and nonprofit organizations.
• Client groups served include governmental organizations, small businesses, nonprofit, wholesalers,
retailers and manufacturing.
Awards,Activities, and Affiliations
■ Member,American Institute of CPAs
■ Past American Institute of CPAs Council Member
■ Member and Past President, Montana Society of CPAs
■ Member and Past President, Bozeman Chapter of Montana Society of CPAs
■ Past member of the Montana Society of CPAs Nonprofit Committee and Governmental Committee
• Member, Montana Society of CPAs Business, Industry, and Governmental Committee
■ Past Treasurer and Current Finance Committee Member, Family Promise of Gallatin Valley
■ Member, Greater Gallatin United Way Finance Committee
■ Treasurer, Greater Gallatin United Way
■ Member, Bozeman Sunrise Rotary
PHONE:406.556.6160 FAX: 406.586.8719 E-MAIL,kstafford@azworld.com
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 15
appendix continued
Engagement Team Resume T
William G. (Bill) Mills, CPA
■ Board of Directors, Anderson ZurMuehlen
■ Shareholder since 2002
■ Joined Anderson ZurMuehlen in 2001
Education
■ Bachelor of Science in Agricultural and Managerial Economics,
University of California, Davis - 1991
• Continuing education through Montana Society of CPAs,American Institute of CPAs,the SEC Institute,
and Anderson ZurMuehlen sponsored courses.
Experience
Bill has practiced in public accountingfor 22 years, providing attest services to small and large
businesses and their owners. A highly accomplished accounting professional with a passion for success,
Bill excels in advising clients on strategies to improve the efficiency and effectiveness of their accounting
operations and beyond.
Specialized Areas of Practice
• Assessment of internal controls over financial reporting
■ Evaluation of information technology controls
■ Internal audits of regulated entities
■ Compliance with section 404 of the Sarbanes-Oxley Act
■ ERISA compliance and audits of employee benefit plans
■ Comprehensive knowledge of governance, nonprofit industry accounting,taxation, and legal
compliance.
Awards,Activities,and Affiliations
■ Member,American Institute of CPAs
• Member, Montana Society of CPAs
• 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
PHONE: 406.556.6160 FAX: 406.586.8719 E-MAIL:bmills@azworld.com
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 16
appendix continued
Engagement Team Resume
Stefeni S. Freese, CPA
• Shareholder since 2002
■ Joined Anderson ZurMuehlen in 2001
Education
■ Bachelor of Science in Accounting, Montana State University-1989
■ Continuing education through the Montana Society of CPAs,American Institute of CPAs,Government
Finance Officers Association,Audit Watch and Anderson ZurMuehlen sponsored courses.
Selected Government Courses over the last three years include the following:
• Yellow Book Update
■ Governmental Audit Accounting and Financial Reporting
• Quality Control Document Review
■ AICPA Government Accounting and Auditing Conference
• GAAFR Conference
Experience
■ Twenty-five years of audit and accounting experience related to performance and supervision of
audits, evaluation of internal controls, preparation and analysis of financial statements and
developing and implementing accounting system solutions.
• Local government and nonprofit auditing experience, including Single Audits.
■ Preparing and auditing government financial statements that have been awarded the Certificate of
Excellence in Financial Reporting by the Government Finance Officers Association (GFOA). Served as
reviewer of Comprehensive Annual Financial Reports for this award program of the GFOA.
■ Teaches annual Anderson ZurMuehlen Yellow Book Government update classes.
■ Client groups served include governmental entities, nonprofit organizations, individuals and small
businesses.
Relevant Government Audits
■ Yellowstone County
• Flathead County
■ Gallatin County
■ Missoula Public Schools
• Lewis and Clark County
Awards,Activities,and Affiliations
■ Member,American Institute of CPAs
■ Member, Montana Society of CPAs
■ Member, Montana Association of School Business Officials
■ Member, Peer Review Committee of the Montana Society of CPAs
• Report Reviewer, State of Montana Board of Public Accountants Professional Monitoring Program
• Treasurer, Cody Dieruf Benefit Foundation
• Board Member, Boys and Girls Clubs of Yellowstone County
PHONE: 406.245-5136 FAX: 406.245-6056 E-MAIL:sfreese@azworld.com
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 17
0
appendix continued
Engagement Team Resume
Jessica A.Van Voast, CPA '
■ Manager
■ Joined Anderson ZurMuehlen in 2005 '
Education
■ Master of Science in Professional Accountancy,
Montana State University-2005
■ Bachelor of Science in Business—Accounting Option, Minor in Agricultural
Business, Montana State University-2004
■ Continuing education through the Montana Society of CPAs,American Institute of CPAs and Anderson
ZurMuehlen sponsored courses.
Experience
■ Accounting and auditing work including audit examinations, valuation of internal accounting control
systems, and financial statement preparation and analysis.
■ Internal audit experience including evaluation of risk management, control activities, and corporate
governance.
■ Tax experience includes income tax planning and preparation of returns for individuals, corporations,
partnerships and nonprofits.
■ Client groups served include governmental organizations, manufacturing, retail, nonprofit, and
employee benefit plans.
Awards,Activities,and Affiliations
• Member,American Institute of CPAs
■ Member, Montana Society of CPAs
• Committee Member, Montana State University College of Business Women's Circle of Excellence
PHONE: 406.556.6160 FAX: 406.586.8719 E-MAIL:jvanvoast@azworld.com
Proposal for Annual Independent Financial Audit Services to
City of Bozeman Page 18