HomeMy WebLinkAboutG2_City_of_Bozeman_2023_Engagement_Letter with EideBailly1
June 13, 2023
Honorable Mayor and Members of City Commission
City of Bozeman
121 N. Rouse Ave.
City of Bozeman, MT 59715
You have requested that we audit the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of City of Bozeman, Montana (the
City) as of June 30, 2023, and for the year then ended, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements.
In addition, we will audit the entity’s compliance over major federal award programs for the period ended June
30, 2023. We are pleased to confirm our acceptance and our understanding of this audit engagement by means
of this letter.
Our audits will be conducted with the objectives of our expressing an opinion on each opinion unit and an
opinion on compliance regarding the entity’s major federal award programs. The objectives of our audit of the
financial statements are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United
States of America (GAAS) and in accordance with Government Auditing Standards, and/or any state or
regulatory audit requirements will always detect a material misstatement when it exists. Misstatements,
including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
The objectives of our compliance audit are to obtain sufficient appropriate audit evidence to form an opinion
and report at the level specified in the governmental audit requirement about whether the entity complied in all
material respects with the applicable compliance requirements and identify audit and reporting requirements
specified in the governmental audit requirement that are supplementary to GAAS and Government Auditing
Standards , if any, and perform procedures to address those requirements.
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Accounting principles generally accepted in the United States of America (U.S. GAAP), as promulgated by the
Governmental Accounting Standards Board (GASB), require management’s discussion and analysis and
budgetary comparison information be presented to supplement the 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 financial
statements in an appropriate operational, economic, or historical context. As part of our engagement, we will
apply certain limited procedures to the required supplementary information (RSI) in accordance with auditing
standards generally accepted in the United States of America. These limited procedures will consist primarily of
inquiries of management regarding their methods of measurement and presentation and comparing the
information for consistency with management’s responses to our inquiries. We will not express an opinion or
provide any form of assurance on the RSI. The following RSI is required by accounting principles generally
accepted in the United States of America. This RSI will be subjected to certain limited procedures but will not be
audited:
• Schedule of Changes in Total OPEB Liability & Related Ratios
• Schedule of Proportionate Share of Net Pension Liability and Schedule of Contributions
• Budgetary Comparison Schedules
• Note to RSI
Supplementary information other than RSI will accompany the City’s basic financial statements. We will subject
the following supplementary information to the auditing procedures applied in our audit of the basic financial
statements and certain additional procedures, including comparing and reconciling the supplementary
information to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and additional procedures in accordance with auditing standards generally
accepted in the United States of America. We intend to provide an opinion on the following supplementary
information in relation to the financial statements as a whole:
• Combining and Individual Fund Financial Statements and Schedules - Government Funds
• Combining Nonmajor Proprietary Fund Statements
• Combining Internal Service Funds Statements
• Combining Fiduciary Funds
• Nonmajor Governmental Funds Budgetary Comparison Schedules
Schedule of Expenditures of Federal Awards
We will subject the schedule of expenditures of federal awards to the auditing procedures applied in our audit
of the basic financial statements and certain additional procedures, including comparing and reconciling the
schedule to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and additional procedures in accordance with auditing standards generally
accepted in the United States of America. We intend to provide an opinion on whether the schedule of
expenditures of federal awards is presented fairly in all material respects in relation to the financial statements
as a whole.
Also, the document we submit to you will include the following other additional information that will not be
subjected to the auditing procedures applied in our audit of the financial statements:
• Introductory Section
• Statistical Section
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Data Collection Form
Prior to the completion of our engagement, we will complete the sections of the Data Collection Form that are
our responsibility. The form will summarize our audit findings, amounts and conclusions. It is management’s
responsibility to submit a reporting package including financial statements, schedule of expenditure of federal
awards, summary schedule of prior audit findings and corrective action plan along with the Data Collection Form
to the federal audit clearinghouse. The financial reporting package must be text searchable, unencrypted, and
unlocked. Otherwise, the reporting package will not be accepted by the federal audit clearinghouse. We will
assist you in the electronic submission and certification. You may request from us copies of our report for you to
include with the reporting package submitted to pass-through entities.
The Data Collection Form is required to be submitted within the earlier of 30 days after receipt of our auditors’
reports or nine months after the end of the audit period, unless specifically waived by a federal cognizant or
oversight agency for audits. Data Collection Forms submitted untimely are one of the factors in assessing
programs at a higher risk.
Audit of the Financial Statements
We will conduct our audits in accordance with GAAS, the standards appliable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States of America, the audit
requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As part of an audit of financial
statements in accordance with GAAS and in accordance with Government Auditing Standards, Uniform Guidance
and/or any state or regulatory audit requirements we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. However, we will communicate to you in writing
concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of
the financial statements that we have identified during the audit.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the financial
statements, including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
• Conclude, based on the audit evidence obtained, whether there are conditions or events, considered in
the aggregate, that raise substantial doubt about the City’ss ability to continue as a going concern for a
reasonable period of time.
Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an
unavoidable risk that some material misstatements or noncompliance may not be detected exists, even though
the audit is properly planned and performed in accordance with GAAS and Government Auditing Standards of
the Comptroller General of the United States of America. Please note that the determination of abuse is
subjective, and Government Auditing Standards does not require auditors to detect abuse.
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Our responsibility as auditors is limited to the period covered by our audit and does not extend to any other
periods.
We will issue a written report upon completion of our audit of the City’s basic financial statements. Our report
will be addressed to the governing body of the City. Circumstances may arise in which our report may differ
from its expected form and content based on the results of our audit. Depending on the nature of these
circumstances, it may be necessary for us to modify our opinions, add an emphasis-of-matter or other-matter
paragraph(s) to our auditor’s report, or if necessary, withdraw from the engagement. If our opinions on the
basic financial statements 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 to issue a report as a result of this engagement.
In accordance with the requirements of Government Auditing Standards, we will also issue a written report
describing the scope of our testing over internal control over financial reporting and over compliance with laws,
regulations, and provisions of grants and contracts, including the results of that testing. However, providing an
opinion on internal control and compliance over financial reporting will not be an objective of the audit and,
therefore, no such opinion will be expressed.
Audit of Major Program Compliance
Our audit of the City’s major federal award program(s) compliance will be conducted in accordance with the
requirements of the Single Audit Act, as amended; and the Uniform Guidance and will include tests of
accounting records, a determination of major programs in accordance with the Uniform Guidance, and other
procedures we consider necessary to enable us to express such an opinion on major federal award program
compliance and to render the required reports. We cannot provide assurance that an unmodified opinion on
compliance will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or
withdraw from the engagement.
The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about
whether the material noncompliance with applicable laws and regulations, the provisions of contracts and grant
agreements applicable to major federal award programs, and the applicable compliance requirements occurred,
whether due to fraud or error, and express an opinion on the entity’s compliance based on the audit.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance
will always detect material noncompliance when it exists. The risk of not detecting material noncompliance
resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the
compliance requirements is considered material if there is a substantial likelihood that, individually or in the
aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the
entity’s compliance with the requirements of the federal programs as a whole.
As part of a compliance audit in accordance with GAAS [and, if applicable, in accordance with Government
Auditing Standards, and/or any state or regulatory audit requirements], we exercise professional judgment and
maintain professional skepticism throughout the audit. We also identify and assess the risks of material
noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those
risks.
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Our procedures will consist of determining major federal programs and performing the applicable procedures
described in the U.S. Office of Management and Budget OMB Compliance Supplement for the types of
compliance requirements that could have a direct and material effect on each of the entity’s major programs,
and performing such other procedures as we considers necessary in the circumstances The purpose of those
procedures will be to express an opinion on the entity’s compliance with requirements applicable to each of its
major programs in our report on compliance issued pursuant to the Uniform Guidance.
Also, as required by the Uniform Guidance, we will obtain an understanding of the entity’s internal control over
compliance relevant to the audit in order to design and perform tests of controls 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 of the entity’s major federal award programs.
Our tests will be less in scope than would be necessary to render an opinion on these controls and, accordingly,
no opinion will be expressed in our report. However, we will communicate to you, regarding, among other
matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we have identified during the audit.
We will issue a report on compliance that will include an opinion or disclaimer of opinion regarding the entity’s
major federal award programs, and a report on internal controls over compliance that will report any significant
deficiencies and material weaknesses identified; however, such report will not express an opinion on internal
control.
Management Responsibilities
Our audit will be conducted on the basis that management and, when appropriate, those charged with
governance, acknowledge and understand that they have responsibility:
1. For the preparation and fair presentation of the financial statements in accordance with accounting
principles generally accepted in the United States of America;
2. For the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud
or error;
3. For identifying, in its accounts, all federal awards received and expended during the period and the
federal programs under which they were received;
4. For maintaining records that adequately identify the source and application of funds for federally
funded activities;
5. For preparing the schedule of expenditures of federal awards (including notes and noncash assistance
received) in accordance with the Uniform Guidance;
6. For designing, implementing, and maintaining effective internal control over federal awards that
provides reasonable assurance that the entity is managing federal awards in compliance with federal
statutes, regulations, and the terms and conditions of the federal awards;
7. For identifying and ensuring that the entity complies with federal laws, statutes, regulations, rules,
provisions of contracts or grant agreements, and the terms and conditions of federal award programs
and implementing systems designed to achieve compliance with applicable federal statutes, regulations,
and the terms and conditions of federal award programs;
8. For disclosing accurately, currently, and completely, the financial results of each federal award in
accordance with the requirements of the award;
9. For identifying and providing report copies of previous audits, attestation engagements, or other studies
that directly relate to the objectives of the audit, including whether related recommendations have
been implemented;
10. For taking prompt action when instances of noncompliance are identified;
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11. For addressing the findings and recommendations of auditors, for establishing and maintaining a
process to track the status of such findings and recommendations and taking corrective action on
reported audit findings from prior periods and preparing a summary schedule of prior audit findings;
12. For following up and taking corrective action on current year audit findings and preparing a corrective
action plan for such findings;
13. For submitting the reporting package and data collection form to the appropriate parties;
14. For making the auditor aware of any significant contractor relationships where the contractor is
responsible for program compliance;
15. To provide us with:
a. Access to all information of which management is aware that is relevant to the preparation and
fair presentation of the financial statements including disclosures, and relevant to federal award
programs, such as records, documentation, and other matters;
b. Additional information that we may request from management for the purpose of the audit; and
c. Unrestricted access to persons within the entity and others from whom we determine it
necessary to obtain audit evidence.
16. For 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 current year period(s) under audit are immaterial,
both individually and in the aggregate, to the financial statements as a whole;
17. For acceptance of nonattest services, including identifying the proper party to oversee nonattest work;
18. For maintaining adequate records, selecting and applying accounting principles, and safeguarding
assets;
19. For informing us of any known or suspected fraud affecting the entity involving management,
employees with significant role in internal control and others where fraud could have a material effect
on compliance;
20. For the accuracy and completeness of all information provided;
21. For taking reasonable measures to safeguard protected personally identifiable and other sensitive
information; and
22. For confirming your understanding of your responsibilities as defined in this letter to us in your
management representation letter.
With regard to the schedule of expenditures of federal awards referred to above, you acknowledge and
understand your responsibility (a) for the preparation of the schedule of expenditures of federal awards in
accordance with the Uniform Guidance, (b) to provide us with the appropriate written representations regarding
the schedule of expenditures of federal awards, (c) to include our report on the schedule of expenditures of
federal awards in any document that contains the schedule of expenditures of federal awards and that indicates
that we have reported on such schedule, and (d) to present the schedule of expenditures of federal awards with
the audited financial statements, or if the schedule will not be presented with the audited financial statements,
to make the audited financial statements readily available to the intended users of the schedule of expenditures
of federal awards no later than the date of issuance by you of the schedule and our report thereon.
With regard to the supplementary information referred to above, you acknowledge and understand your
responsibility (a) for the preparation of the supplementary information in accordance with the applicable
criteria, (b) to provide us with the appropriate written representations regarding supplementary information, (c)
to include our report on the supplementary information in any document that contains the supplementary
information and that indicates that we have reported on such supplementary information, and (d) to present
the supplementary information with the audited financial statements, or if the supplementary information will
not be presented with the audited financial statements, to make the audited financial statements readily
available to the intended users of the supplementary information no later than the date of issuance by you of
the supplementary information and our report thereon.
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As part of our audit process, we will request from management and, when appropriate, those charged with
governance, written confirmation concerning representations made to us in connection with the audit.
We understand that your employees will prepare all confirmations we request and will locate any documents or
invoices selected by us for testing.
If you intend to publish or otherwise reproduce the financial statements and make reference to our firm, you
agree to provide us with printers’ proofs or masters for our review and approval before printing. You also agree
to provide us with a copy of the final reproduced material for our approval before it is distributed.
Nonattest Services
With respect to any nonattest services we perform, we agree to perform the following:
• Prepare or assist with preparing financial statements in conformity with U.S. generally accepted
accounting principles based on information provided by you.
We will not assume management responsibilities on behalf of the City. The City’s management understands and
agrees that any advice or recommendation we may provide in connection with our audit engagement are solely
to assist management in performing its responsibilities.
The City’s management is responsible for (a) making all management decisions and performing all management
functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the
services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e)
establishing and maintaining internal controls, including monitoring ongoing activities.
Our responsibilities and limitations of the nonattest services are as follows:
• We will perform the services in accordance with applicable professional standards.
• The nonattest services are limited to the services previously outlined above. Our firm, in its sole
professional judgment, reserves the right to refuse to do any procedure or take any action that
could be construed as making management decisions or assuming management responsibilities.
Fees and Timing
Paul Kane is the engagement partner for the audit services specified in this letter. Responsibilities include
supervising services performed as part of this engagement and signing or authorizing another qualified firm
representative to sign the audit report. We expect to begin our audit on approximately June 1, 2023.
Our fees are based on the amount of time required at various levels of responsibility, plus actual out-of-pocket
expenses, including administrative charges. Invoices are payable upon presentation. We estimate that our fees
for the audit will be as follows:
June 30, 2023 financial statement audit $82,000
June 30, 2023 AUP $7,000
June 30, 2023 ACFR Prep $31,500
Administrative and out-of-pocket (estimated) $ 5,000
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The financial statement audit fee of $82,000 includes the estimate of our single auditing procedures including
testing of one major program. If additional major programs are identified, the charge will be an additional
$9,500 per program. Invoices are payable upon presentation.
We will notify you immediately of any circumstances we encounter that could significantly affect this initial fee
estimate. Whenever possible, we will attempt to use the City’s personnel to assist in the preparation of
schedules and analyses of accounts. This effort could substantially reduce our time requirements and facilitate
the timely conclusion of the audit. Further, we will be available during the year to consult with you on financial
management and accounting matters of a routine nature.
The ability to perform and complete our engagement consistent with the estimated fee included above depends
upon the quality of your underlying accounting records and the timeliness of your personnel in providing
information and responding to our requests. To assist with this process, we will provide you with a Prepared-by-
Client (PBC) request that identifies the information required to perform our engagement, as well as a planned
timeline for the engagement. A failure to provide this information in an accurate and timely manner may result
in an increase in our fees and/or a delay in the completion of our engagement.
We may be requested to make certain audit documentation available to outside parties, including regulators,
pursuant to authority provided by law or regulation or applicable professional standards. If requested, access to
such audit documentation will be provided under the supervision of Eide Bailly LLP’s personnel. Furthermore,
upon request, we may provide copies of selected audit documentation to the outside party, who may intend, or
decide, to distribute the copies of information contained therein to others, including other governmental
agencies. We will be compensated for any time and expenses, including time and expenses of legal counsel, we
may incur in making such audit documentation available or in conducting or responding to discovery requests or
participating as a witness or otherwise in any legal, regulatory, or other proceedings as a result of our Firm’s
performance of these services. You and your attorney will receive, if lawful, a copy of every subpoena we are
asked to respond to on your behalf and will have the ability to control the extent of the discovery process to
control the costs you may incur.
Should our relationship terminate before our audit procedures are completed and a report issued, you will be
billed for services to the date of termination. All bills are payable upon receipt. A service charge of 1% per
month, which is an annual rate of 12%, will be added to all accounts unpaid 30 days after billing date. If
collection action is necessary, expenses and reasonable attorney’s fees will be added to the amount due.
Other Matters
During the course of the engagement, we will only provide confidential engagement documentation to you via
Eide Bailly’s secure portal or other secure methods, and request that you use the same or similar tools in
providing information to us. Should you choose not to utilize secure communication applications, you
acknowledge that such communication contains a risk of the information being made available to unintended
third parties. Similarly, we may communicate with you or your personnel via e-mail or other electronic methods,
and you acknowledge that communication in those mediums contains a risk of misdirected or intercepted
communications.
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Should you provide us with remote access to your information technology environment, including but not
limited to your financial reporting system, you agree to (1) assign unique usernames and passwords for use by
our personnel in accessing the system and to provide this information in a secure manner; (2) limit access to
“read only” to prevent any unintentional deletion or alteration of your data; (3) limit access to the areas of your
technology environment necessary to perform the procedures agreed upon; and (4) disable all usernames and
passwords provided to us upon the completion of procedures for which access was provided. We agree to only
access your technology environment to the extent necessary to perform the identified procedures.
Regarding the electronic dissemination of audited financial statements, including financial statements published
electronically on your website or elsewhere, you understand that electronic sites are a means to distribute
information and, therefore, we are not required to read the information contained in these sites or to consider
the consistency of other information in the electronic site with the original document.
Professional standards prohibit us from being the sole host and/or the sole storage for your financial and non-
financial data. As such, it is your responsibility to maintain your original data and records and we cannot be
responsible to maintain such original information. By signing this engagement letter, you affirm that you have all
the data and records required to make your books and records complete.
We may use third party service providers and/or affiliated entities (including Eide Bailly Shared Services Private
Limited) (collectively, “service providers”) in order to facilitate delivering our services to you. Our use of service
providers may require access to client information by the service provider. We will take reasonable precautions
to determine that they have the appropriate procedures in place to prevent the unauthorized release of
confidential information to others. We will remain responsible for the confidentiality of client information
accessed by such service provider and any work performed by such service provider.
Neither of us may use or disclose the other’s confidential information for any purpose except as permitted
under this engagement letter or as otherwise necessary for Eide Bailly to provide the services. Your confidential
information is defined as any information you provide to us that is not available to the public. Eide Bailly’s
confidential information includes our audit documentation for this engagement. Our audit documentation shall
at all times remain the property of Eide Bailly LLP. The confidentiality obligations described in this paragraph
shall supersede and replace any and all prior confidentiality and/or nondisclosure agreements (NDAs) between
us.
We agree to retain our audit documentation or work papers for a period of at least eight years from the date of
our report.
Further, we will be available during the year to consult with you on financial management and accounting matters of a
routine nature.
You agree to share all facts that may affect your financial statements, even if you first become aware of those
facts after the date of the auditor’s report but before the date your financial statements are issued.
At the conclusion of our audit engagement, we will communicate to management and the City Commission the
following significant findings from the audit:
• Our view about the qualitative aspects of the entity’s significant accounting practices;
• Significant difficulties, if any, encountered during the audit;
• Uncorrected misstatements, other than those we believe are trivial, if any;
• Disagreements with management, if any;
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• Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant
and relevant to those charged with governance regarding their oversight of the financial reporting
process;
• Material, corrected misstatements that were brought to the attention of management as a result of our
audit procedures;
• Representations we requested from management;
• Management’s consultations with other accountants, if any; and
• Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence,
with management.
Government Auditing Standards require that we provide, upon request, a copy of our most recent external peer
review report and any subsequent review reports to the party contracting for the audit. Accordingly, we will
provide a copy of our most recent peer review report at your request.
Eide Bailly LLP is a member of HLB International, a worldwide organization of accounting firms and business
advisors, ("HLB"). Each member firm of HLB, including Eide Bailly LLP is a separate and independent legal entity
and is not owned or controlled by any other member of HLB. Each member firm of HLB is solely responsible for
its own acts and omissions and no other member assumes any liability for such acts or omissions. Neither Eide
Bailly LLP, nor any of its affiliates, are responsible or liable for any acts or omission of HLB or any other member
firm of HLB and hereby specifically disclaim any and all responsibility, even if Eide Bailly LLP, or any of its
affiliates are aware of such acts or omissions of another member of HLB.
Eide Bailly LLP formed The Eide Bailly Alliance Network, a network for small to mid-sized CPA firms across the
nation. Each member firm of The Eide Bailly Alliance, including Eide Bailly LLP, is a separate and independent
legal entity and is not owned or controlled by any other member of The Eide Bailly Alliance. Each member firm
of The Eide Bailly Alliance is solely responsible for its own acts and omissions and no other member assumes any
liability for such acts or omissions. Neither Eide Bailly LLP, nor any of its affiliates, are responsible or liable for
any acts or omission of The Eide Bailly Alliance or any other member firm of The Eide Bailly Alliance and hereby
specifically disclaim any and all responsibility, even if Eide Bailly LLP, or any of its affiliates are aware of such acts
or omissions of another member of The Eide Bailly Alliance.
MEDIATION
Any disagreement, controversy or claim arising out of or related to any aspect of our services or relationship
with you (hereafter a “Dispute”) shall, as a precondition to litigation in court, first be submitted to mediation. In
mediation, the parties attempt to reach an amicable resolution of the Dispute with the aid of an impartial
mediator. Mediation shall begin by service of a written demand. The mediator will be selected by mutual
agreement. If we cannot agree on a mediator, one shall be appointed by the Montana Eighteenth Judicial
District Court, Gallatin County, Montana. Mediation shall be conducted with the parties in person in Bozeman,
Montana. Each party will bear its own costs in the mediation. The fees and expenses of the mediator will be
shared equally by the parties. Neither party may commence a lawsuit until the mediator declares an impasse.
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LIMITATION OF LIABILITY
Eide Bailly LLP and its partners, affiliates, officers and employees (collectively “Eide Bailly”) shall not be
responsible for any misstatements in your financial statements that we may fail to detect as a result of
misrepresentations or concealment of information by any of your owners, directors, officers or employees.
The exclusive remedy available to you for any alleged loss or damages arising from or related to Eide Bailly’s
services or relationship with you shall be the right to pursue claims for actual damages that are directly caused
by Eide Bailly’s breach of this agreement or Eide Bailly’s violation of applicable professional standards. In no
event shall Eide Bailly’s aggregate liability to you exceed ten times fees paid under this agreement, nor shall Eide
Bailly ever be liable to you for incidental, consequential, punitive or exemplary damages.
Please sign and return the attached copy of this letter to indicate your acknowledgment of, and agreement with,
the arrangements for our audit of the financial statements including our respective responsibilities. We
appreciate the opportunity to be your certified public accountants and look forward to working with you and
your staff.
Respectfully,
__________________________
Paul Kane, CPA
Partner
***************************************************************
RESPONSE:
This letter correctly sets forth our understanding.
Acknowledged and agreed on behalf of City of Bozeman, Montana by:
Name: _______________________________________________________________
Title: ________________________________________________________________
Date: ________________________________________________________________
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City Manager
7/12/2023