Loading...
HomeMy WebLinkAboutItem 4.08 Auditors Renewal of Understanding6.~ ~ CITY OF DUBLIN AGENDA STATEMENT MEETING DATE: August 12, 1991 SUBJECT :Renewal of understanding with City Auditors. Report prepared by Phillip S. Molina, CPA EXHIBITS ATTACHED :Maze and Associates audit proposal. RECOMMENDATION :Continue with `Maze and Associates an Accountancy Corporation' for independent auditing services for four more years. FINANCIAL STATEMENT:For the audit of fiscal year 1991-92 the costs for providing Dublin with the audit is estimated at $19,063 and includes the following costs: Basic audit $11,065 TDA Audit 1,660 Single audit report 2,142 Prep. for CAFR 3,394 Gann Limit Review 802 $19,063 Sufficient money has been budgeted in the fiscal year 1991-92 budget for the audit. For the other three years the estimated audit costs are: 1992-93 $20,016 1993-94 $21,017 1994-95 $22,068 DESCRIPTION: The Council's Audit Committee met once in June and once in July to review the six audit proposals that were submitted in response to the City'~s request for proposals. At the first meeting in June the C+~mmittee used an initial set of criteria to determine which firm ~hould participate in the final interview process. The criteria included concerns about each firm's staff size, the number of prior audits prepared for California cities of comparable size to Dublin, the firm's staff qualifications, cost of the audit, their ability to assist the Council with special audit task:s, the firm's commitment to complete the audit by the end of N~vembe'r, and the clarity of the proposal submitted. ` -----------=---------------------------------------------------------- COPIES TO: I'~ENd NO . , ~'~-~(xJ ~/ ~ - .20 ~~ ~ ~ The Audit Committee identified three firms that had the attributes the Committee wanted most in an independent auditor. The three firms interviewed were: Bartig, Basler and Ray CG Uhlenberg & Co., and Maze and Associates. On July 9th, the oral interview process took place, and consisted of a presentation by each firm, followed by answers to questions from the Audit Committee members. The Committee interviewed one firm at a time. Each firm was asked to bring the partner-in-charge, the audit manager, and the audit supervisor to the interview to participate in the process. The questions from the Committee attempted to solicit answers that would identify the qualities of the audit firm, which would best assist the Staff in preparing the annual audit report for the Council. Some of the questions included: 1. The overall staff size of the firm, 2. The number of professionals included in the firms' staff, 2. Whether the audit team has the experience needed to perform special tasks, such as a determination of whether the City's insurance coverage is sufficient, 3. The ability to schedule the audit work around the City's timetables, and 4. The methods used to interface with the Staff during the audit work. The Committee was initially concerned that a series of audits that are conducted by the same auditors could, over time result in a less stringent review of the accounting processes used and documents maintained by the City's accounting staff. During the interview the representatives from the firm of Maze and Associates explained that because of both the size of the firm and the need to cross train existing staff, there has always been a rotation of staff each year that audit work was conducted for Dublin. An audit team consists of the Principle-in-charge, the audit manager, the supervisor and the field auditors. The field auditors have changed each year for purposes of rotating auditing staff; likewise the audit supervisor has rotated three times in the four years that Maze and Associates conducted Dublin's audit. For continuity, however, the firm has not rotated the audit manager, although it was suggested that this too could be done if the Committee so directed. After the Committee completed all of the interviews, it was determined that the firm of Maze and Associates, which is currently preparing the City's audits, fits best the expectations of the Committee for an independent auditor. RECOMMENDATION: The Council's Audit Committee recommends that the Council approve the continuation of the use of the auditing firm of Maze and Associates to prepare the City's annual audits for the periods 1991-92, 1992-93, 1993-94 and 1994-95. ' ~ • ~ ..~ _~ ~ I i L~ ,\ ' ~~ ~ _~ ~-~ . .~ ~ ~ PROPOSAL To Become Independent Accountants For The City of Dublin Submitted By NAZE ~ ASSOCIATES 1670 Riviera Avenue, Suite 100 Aalnut Creek, CA. 94596 (415) 930-0902 Contact Person Scott Haze Ju1y 3, 1991 19Tf~L°hl/~?2~T ~ v~ ' ,., _,,' ~ ,~ ~ --~ ~ .' ,~ ~ ~ ~ • CITY OF DUBLIN AUDIT PROPOSAL TABLE OF CONTENTS Page Number PROPOSAL: Transmittal Letter 1 Particular Concerns 4 Auditor Rotation 4 Our Accomplishments 5 Profile of Proposer 5 Our Organization 5 Location and Resources 6 Municipal Audit Clients 6 Comprehensive Annual Financial Report 7 Single Audit Act Experience ~ Transportation Development Act Experience 8 Redevelopment Agency Experience 8 Measure B Compliance Experience $ Authority Experience 8 Fixed Asset Work 9 Other Pertinent Experience 9 Mandatory Criteria 10 Summary of Proposer's Qualifications 10 Audit Team 10 i ~ , _., ~_' ~, ' ~~r ~ .~ ,` ~ ~ ' ~ ~ CITY OF DUBLIN Ai1DIT PROPOSAL TABLE OF COKlENTS (continued) Resumes of Those Individuals Conducting the Audit References Proposer's Approach to the Examination Audit Approach Statements and Reports Gann Limit Review Computer Audit Capabilities Audit Scope Compensation Hourly Rates Additional Data Continuing Education Quality Assurance Personnel Policies EXHIBITS: Color Graphs Gann Limit Compliance Letter Auditor's Report Drafts Municipal Clients Other Available Staff Proposed Audit Fees and Hours ii Page Number 10 13 13 13 14 14 15 15 16 17 17 17 18 18 Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F ~ ~1 ' r ~ ~ ~, , 855 Main Street - Suite 206 P/easanton, California 94566 (415) 462-0518 ' We appreciate this opportunity to submit our proposal to you. We are a relatively new firm but we have already proven we have the capability to provide you with superior service. Ve offer you aore local municipal audit experience than the national accounting firns, conbined with the personal attention, responsiveness and lower costs of a local accounting firm. We want to review the last four years with you and, we hope, build on them in the future. We have been the City's independent accountants since 1987. What have we accomplished in that time? Plenty. We have performed solid, in-depth audits of the City. We have completely redesigned the City's financial statements, making them much more complete and informative. We have added an extensive statistical section and helped the City develop a Comprehensive Annual Financial Report which was submitted for an award by the Government Finance Officers Association. Less than three percent of U.S. cities are able to produce such a Report, which can help a City's credit rating and its efforts to attract new employers. l~Je have tested internal controls and compliance with laws, rules and reguiations under the Single Audit Act. We have developed recommendations which have improved the City's internal controls. We have also tested and reported on internal controls over specific.areas of concern to the Council. We are a year-round accounting resource which you can count on to help.you with your accounting needs. Our ~unicipal clients couprise over tvo-thirds of our total practice, so as you can see, you are a very important client for us. We will continue to make every effort to see that you are more than satisfied with .our work. ile are in business to help our clients succeed. Our people are experienced,. proven individuals who are committed to excellence in client service. We-pride ourselves on our ability to maintain strict standards of independence and'; ~ objectivity while providing you with helpful and productive audit services. ' Our aim is to be a positive factor in your environment and we strive to~~ establish close working relationships with you and your staff. The level of ~ client satisfaction we have achieved indicates the outstanding success we have had in this area. 1 ' a ~ ~ i Q~C~ ~ Q~~Oo C~~Q~C~~ ACCOUiVTAIVCY CORPORATION i670 Riviera Avenue - Suite 100 July 5, 1991 N!/alnut Creek, California 94596 (415) 930-0902 ~ (916) 972-7333 Fi4X (415) 930-0135 Audit Committee, City Council City of Dublin 100 Civic Plaza P.O. Box 2340 Dublin, California 94568 Dear People: A Professional Corporation ( ~. , • • As chief executive officer, I am authorized to bind the firm for contract "' negotiations. My address and telephone number are listed on the title page of our proposal. -:' Yours very truly, Sc~ ' J. Scott Ma e ~ JSM:sg .' ~' .~~ r~ ' ' 3 ' , • • _~ PARTICQIAR CONCERNS AUDITOR ROTATION ' ~ , .~ ~ ~ ~ ' ' ~ The reason most often given by municipal governments in requesting proposals from auditors is that it's time to "rotate". Commercial businesses, on the other hand, do not rotate their accountants any more that they rotate their attorneys or other consultants and advisors. Business people recognize full well the value of a skilled accountant with a well-grounded depth of knowledge of their operation and its history. They also know the hidden costs and staff disruption which can be caused by changing accountants, as well as the risks involved in such a change. Why then, do some municipalities rotate accountants? Many say they want a"new look" by new people. But this new look can be costly, as the new accountant spends time and money learning about the client and the municipality's staff spends extra time answering more questions and preparing schedules in new formats for new auditors. There is also the chance that the people actually assigned to the work will be so new they won't have the proper level of experience or expertise in municipal accounting. Many municipalities end up trying to rotate away from such problems. We have a policy which we believe combines the best elements of rotation and continuity. Our policy is to rotate people at'the staff and supervisor level frequently enough that there is a new look every year, but not so often that there is no continuity. Staff people and supervisors are really the most important people on the audit, particularly when fresh insights and ideas are involved. These people are on the front lines inspecting documents and actual records, talking first-hand to the people involved and gathering the true facts. The audit managers and I are one step removed from this process and it is at our level that continuity becomes more important. Many things which are new or unusual to a staff person may be familiar to us and~we can help staff people understand these things with a minimum of inefficiency and disruption to the City's staff. On the other hand, since the managers and I are not doing the detail audit work, there is no danger that we will gloss over unusual items because we are too familiar with the City. In the years we have performed the City's audit, we have rotated at least one staff person or supervisor, sometimes more, at least annually. With a staff of over twenty people, we are able to follow this policy with all our clients. Then there is cost. Some believe that rotation keeps costs down by forcing the accountant to go through the proposal process periodically - even annually in some cases. If the only measure here is dollars paid to the accountant, rotation can minimize that number, because there is always someone hungry enough to do the work for less than cost. But why isn't below cost a good deal? Because we're dealing with a service and with people, not with a tangible product. A tangible product remains the same regardless of the price paid. Service does not and people do not. The level 4 ' . • =~ AUDITOR ROTATION (Continued) of service very quickly drops and the enthusiasm of the people providing the -,~ service disappears as the discovery is made that the job is a money loser. So while the report may be completed, the work will not be of the same quality and may not even be adequate. Alternatively, you may be forced to renegotiate the price in the middle of the job. ~ In this age of litigation, the Council can ill afford the risks involved in choosing someone as important as their independent accountant solely on the '~ basis of lowest possible cost. OUR ACCOI~IPLISI~IIiII~]'PS -~ While we have been auditors of the City we have provided solid, in depth audits every year. In our first audit we performed a study and evaluation of the City's internal control system, the result of which were nine recommendations. -~ All of them were implemented. During the 1989 audit we expanded our audit scope as requested by the Audit Committee, to include a review procedure performed by the Finance Director and issued a recommendation based on our work. ~ d w v In a dition, e ha e expanded our audit scope to include compliance procedures in accordance with Transportation Development Act laws, rules, and regulations ' and have delivered all reports within six weeks of the close of the books. During 1990 we were requested by CALTRANS to provide the State Controller's ~ office with access to the City's Single Audit Act workpapers. Not only was our work accepted, but due to its completeness and level of detail, the State Controller's Office issued its report based solely on its review of our work and did not visit the City's offices or use up City staff time. The State Controller's office stated they normally expand on auditors work by visiting the City's office prior to issuing their reports. Since we began as auditors, we have expanded the City's financial statements ~ to include disclosures of interfund receivables and payables, interfund transfers, joint ventures, and deficit fund balances. In addition, we expanded existing disclosures of pensions and long term debt. All the changes were made ~ to bring the City's financial statements into compliance with generally accepted accounting principles and to make them more informative and more ' understandable to the reader. PROFILE OF PROPOSER I OUR ORGANIZATION ~ Maze & Associates is a local firm with a surprising depth of experience in municipal audit work. We offer a full range of accounting and auditing services including governmental and commercial work. Our government work ' includes cities, redevelopment agencies, park districts and other special districts, joint powers authorities, and school districts as well as federal and State grantees. We are familiar with the financial and reporting requirements you must meet and we have also dealt extensively with the , requirements of the Single Audit Act of 1984. ' S ' ~ • ' OUR ORGANIZATION (Continued) We are a professional services corporation, with one chief executive officer, , two audit managers, one information systems manager, one tax manager, three supervisors, seven staff accountants and four office staff. Several of our professional staff have national accounting firm experience, which we have blended with the more personal approach of a smaller firm. ' We are structured somewhat differently than most accounting firms. We have a more fluid organization, with teams assembling to accomplish specific tasks `' and recombining for other purposes. All of us are responsible for seeing work through to its completion and all of us do what is necessary - whether it's our responsibility or not - to accomplish this task. ' Our management style borrows heavily from the thinking of Mr. Tom Peters, author of "In Search of Excellence", among others. All our people are involved in making us better, all participate in management decisions and all ' realize we are here to help our client, first and foremost. We are in business to help our clients succeed. , IACATION AND RESOURCES We occupy offices of three thousand square feet in Walnut Creek. We have ' twelve computers, including several laptops, three laser printers, a large Pitney-Bowes copier and a FAX machine. We subscribe to the GAAFR Review, Single Audit Information Service, and various Practitioners Publishing Company ~' municipal audit publications. We receive copies of discussion memoranda, exposure drafts, opinions and interpretations issued by both the Government Accounting Standards Board (GASB) and the Financial Accounting Standards Board ' (FASB). We also subscribe to the Commerce Clearing House and Research Institute of America tax service. Lastly, we use modems to access the Lexus, Nexus and NAARS national electronic libraries, giving us research resources equal to any accounting firm. ' MUNICIPAL AUDIT CLIENTS ~~ We have included a complete list of our municipal clients at Exhibit D. Our '~- experience in managing municipal audits similar to your own includes the following, all of which are current clients: ' General Fund Client Client Expenditures Number of Funds Since ' City of Alameda $28,125,584 66 1990 City of Albany 6,743,000 36 1990 City of Antioch 15,945,903 75 1987 ~ City of Livermore 23,517,748 41 1987 City of Manteca 9,919,739 26 1986 Town of Danville 6,452,953 21 1990 ' Town of Hillsborough 5,254,802 11 1990 City of Pleasant Hill 6,413,746 42 1987 City of Pinole 5,170,627 12 1987 , 6 ' , ' . ~ ; ' MUNICIPAL AUDIT CLIIIITS (Continued) City of Saratoga 6,730,548 20 1990 ' East Bay Regional Park District 32,329,398 26 1988 Petaluma Schools 25,485,285 20 1986 Tamalpais Union High School District 14,956,200 11 1986 ' As you can see, we have considerable experience auditing cities. We have assisted these cities with the accounting for a variety of debt restructurings, 1 including defeasances and advance refundings. As noted below, we have also performed a variety of consulting services for our city clients. 1 COMPREHENSIVE ANNiJAL FINANCIAL REPORT (CAFR) In 1990 we assisted the City in producing its first Comprehensive Annual 1 Financial Report (CAFR). This CAFR includes a transmittal letter prepared by the Finance Director covering the City's operations, events and accomplishments, financial statement analysis, risk management and cash , management. This CAFR also includes statistical information about the City from the date of its incorporation. These schedules include a history of revenues, expenditures, assessed valuation of taxable property, property tax ' rates, demographic statistics, the level of construction and bank deposits and others. This data represents a significant addition to the amount of information provided by the City to its constituents, credit granting agencies and others. ' Less than 900 of the 36,000 cities in the U.S. have the resources to prepare CAFRs. But these cities understand that CAFRs reduce interest costs by ' improving credit ratings. They also understand that CAFRs can help convince prospective employers that their city has a good financial environment and will be a good place to establish a new operation. , As you can see, the mark of excellence in municipal financial reporting is a CAFR which wins an.award from the California Society of Municipal Finance Officers or the Government Finance Officers Association. Half our city clients ' issue CAFRS and all our clients' CAFRS either win CSMFO or GFOA awards. In 1989, three clients won CSMFO awards and three won GFOA awards. In 1990, five clients won CSMFO awards and we expect all to win GFOA awards as well. Many of ' these awards were earned by CAFR's on their initial submission, when they receive special scrutiny. Exhibit D lists our relevant experience with CAFRs. ' SINGLE AUDIT ACT ERPIItIENCE We have extensive Single Audit Act experience as a result of our work on the , following, among others: City of Manteca: ' Environmental Protection Agency Construction Grant Department of Housing and Urban Development Community Development Block Entitlement ' Federal Highway Administration Federal Aid Urban ~ 7 ' . ~ ' ' , , ' , ' , , , , ' SINGLE AUDIT AGT ERPIItIENCE (Continued) City of Livermore: Federal Aviation Administration Airport Improvement Program Department of Education Federal Literacy Grant Department of Housing and Urban Development Community Development Block Entitlement Federal Emergency Management Agency Disaster Assistance Program City of Dublin: Department of Transportation Urban Mass Transportation Capital Improvement Grant Department of Housing and Urban Development Community Development Block Entitlement Town of Danville: Department of Transportation Urban Mass Transportation Capital Improvement Grant Federal Emergency Management Agency Disaster Assistance Program TRANSPORTATION DEVEIAPMII~IT AGT EXPIItIENCE Several of our municipal audit clients receive transportation Development Act grants which require separate audits and reports. We have been involved with this type of audit for several years, have established contacts at the State and regional level and are fully familiar with the required reporting and compliance procedures. REDEVELUPMII~IT AGENCY EXPIIZIENCE Eight of the municipal audit clients listed above have redevelopment or community development agencies. We prepare and issue audit and compliance reports for our clients which have active redevelopment or community development agencies. 1~IFASURE B CONPLIANCE ERPERIENCE ' , ' ' t ' We have previously performed audits for Alameda County Measure B funds, which are received by two of our clients. We have already established a contact with the Alameda County Transportation Authority and are familiar with the reporting, accounting and compliance requix'ements of this program. AUTHORITY EXPERIENCE Several of our municipal audit clients have separate authorities which require separate audits and reports. Our audits include reviewing compliance with debt covenants and trustee a~reement reQUirements. 8 ~ r . • ' ~ ~S~s ~o~ - We have a variet af ex erience dealing with fixed Y P assets, including: '~ Fixed Asset Appraisal Evaluations. As part of our work on the Cities of Manteca, Livermore and Saratoga, we reviewed and evaluated fixed asset studies performed by outside appraisers. In all instances the appr aisal reports were revised before adjusting City records; however, none of the appraisals resulted ' in an exception in our opinion. ' t ~ ~ ~J , ' ~ ' ' ' ' ' ' Fixed Asset Iirventory. We have assisted the Hayward Area Recreation and Park District in planning and taking fixed asset inventories and recording the resulting adjustments . Fixed Asset Systen Selection and Implementation. We have assisted the City of Albany in selecting and implementing a complete fixed assets accounting system which will be integrated with their existing general ledger system. OTHER PERTINENT EXPERIENCE We performed a Cost Allocation Study for the City of Manteca which.identified nearly $2 million in costs which could be recovered through increases in user fees. The Study covered every City department and activity and included the development of Lotus-based cost allocation and user fee measurement system which can be operated by City personnel on personal computers. During the course of this Study we gained considerable experience in determining the internal functions performed by City employees in each department. We interviewed employees, reviewed duties performed by specific departments and evaluated each department's overall contribution to the cost of providing each service rendered by the City. We have projected different municipal revenue growth curves based on planned growth rates and based on lower growth rates proposed by initiative. We have prepared an accounting of costs incurred by a developer who defaulted on a municipally guaranteed loan. We performed a study of the financial effect of higher municipal refuse collection rates. We performed a study of costs incurred by a joint powers authority in a major relocation project funded by CALTRANS; this study resulted in our client being able to reclaim over $30,000 in costs from CALTRANS. We have computed whether or not rebates are required under Section 148(f)(2) of the Internal Revenue Code, which deals with arbitrage relating to municipal bonds. We perform audits and reviews for a number of private corporations. We compile financial statements on a monthly and annual basis using our computers. We prepare income tax returns for corporate, partnership and individual clients as well as providing tax planning and consulting services for these clients. 9 , ' ~ • ' OTHER PERTINENT EXPERIENCE (Continued) We also have experience with litigation support, having worked with attorneys on ' several occasions. IiANDATORY CRITERIA ' Scott Maze and Cory Biggs are Certified Public Accountants and are members of the American Institute of Certified Public Accountants (AICPA) and the California Society of Certified Public Accountants. , Al1 of our staff are subject to the code of ethics established by the AICPA and are required to be independent of our clients and their employees. ' Our firm carries professional liability and workers compensation insurance of $750,000 and $1,000,000 respectively. Proof of insurance has been provided to the City. i SUMl~ARY OF PROPOSER'S QIIALIFICATIONS ' AUDIT TEAM We are very conscious of the need to maintain continuity of personnel; both you ~ and we benefit from of continuity. At least two of aur staff will return each year, barring unexpected resignations by the people on your work. At the same time, we will endeavor to add a new person from time to time to keep our ' perspective fzesh and maintain a flow of new ideas. We are also interested in your reactions to our people and their approach to your work: Any changes in personnel will he reviewed with you in advance. ' Our people assigned to your work will include Scott Maze as engagement partner, Cory Biggs as manager, Fred Marsh as supervisor, Kevin 0'Connell as staff associate and Sandra McLuckie as information systems manager. The qualifications ~ and experience of the individual team members are outlined below. We think you'll agree, after reviewing the resumes of our staff, that even our ~ newest staff have significant amounts of experience in municipal auditing and accounting. This level of experience eliminates common problems cities have with inexperienced auditors, such as lack of training and bad communications. ' RESUI~S OF THOSE INDYVIDUAIS CONDUCTING THE AUDIT J. SCOTT MAZE, Engagement Partner ~ I am a graduate of Lehigh University, Bethlehem, Pennsylvania, and hold CPA certificates in Pennsylvania and California. I joined Price Waterhouse & Co. in ~ 1962 and served in the Pittsburgh, Sacramento and San Francisco offices of that. firm. In 1977, I joined the Walnut Creek firm of Blanding, Boyer & Maze, later returning to Sacramento to become managing partner of Porterfield & Co. On January 1, 1986, I established Maze & Associates. My experience includes a , broad range of municipal, commercial, manufacturing and other audit work. I am a member of the AICPA, California Society of CPA's and NAA. My relevant , municipal audit experience includes: ~ 10 ' 1 • • ~ RESUI~S OF THOSE INDIVIDUAIS CONDUGTING THE AUDIT (Continued) J. SCOTT MAZE, Engagement Partner (Continued) ' City of Alameda City of Albany City of Antioch Town of Danville ' City of Dublin East Bay Regional and Park District Hayward Area Recreation and Park District ~ Town of Hillsborough City of Saratoga Livermore Area Recreation and Park District ~ City of Livermore City of Manteca City of Pinole City of Pleasant Hill ~ Various School Districts ~ ~ ~ ~ ' ~ ' ' ' ~ ~ CORY BIGGS, Manager Cory is a graduate of CSU Hayward with a B.S, in Business, emphasis in Accounting. He is a California CPA with over eight years experience, three with Deloitte, Haskins & Sells, three with Seiler & Company, a large Bay Area local firm and three with us. He is a member of the AICPA and California Society of CPA's. Cory's experience includes cities, school districts, and a variety of high-tech and commercial for-profit organizations. He is a CAFR reviewer for both CSMFO and the GFOA. His relevant governmental audit experience includes: City of Alameda City of Albany City of Danville City of Dublin Town of Hillsborough Livermore Area Recreation and Park District City of Livermore City of Manteca City of Pleasant Hill City of Saratoga South San Joaquin Irrigation District Various School Districts FRED MARSH, Staff Accountant Fred graduated from CSU Hayward in 1989 with a B.S. in Business, emphasis in Accounting. He passed the CPA examination on his first attempt while still a student and joined us on graduation. Fred has gained experience on the following governmental audits: 11 ~ ~ ~ s ~ ~ , ~ 1 1 ' RESUI~S OF THOSE INDIVIDUAIS CONDUGTING THE AUDIT (Continued) FRED MARSH, Staff Accountant (Continued) City of Albany Town of Danville Town of Hillsborough City of Dublin Larkspur Union School District City of Manteca City of Pleasant Hill Petaluma Schools Piedmont Unified School District City of Saratoga KEVIN O'CONNELL, Staff Accountant Kevin is a graduate of Saint Mary's College with a B.S. in Accounting. Kevin's experience includes one year at KPMG Pete Marwick as a staff associate, and bookkeeping experience while in college. Kevin's municipal audit experience includes: City of Antioch ' City of Manteca City of Pinole Alameda Bureau of Electricity ~ SANDRA MCLUCKIE, Information Systems Manager' ~ Sandra is a graduate of the University of Toronto with an honors B.A., emphasis in accounting. She is a Canadian CPA with over ten years experience, two with Deloitte, Haskins & Sells, eight with Hill & Co., a ' large Toronto accounting firm. She is a member of the Ontario Institute of CPA's. , New to our firm, Sandra brings with her extensive audit and accounting experience as well as her expertise in the computer consulting field. As a member of Maze & Associates, Sandra will assist in the EDP review phase of ~ our audits in addition to the computer consulting services that we offer. In addition to Sandra's extensive corporate client experience, her relevant municipal audit, EDP review and consulting experience includes: , i ' 1 ' Region of Durham, Province of Ontario, Canada Town of Pickering, Province of Ontario, Canada City of Whitby, Province of Ontario Canada City of Saratoga, California City of Pinole, California East Bay Regional Park District City of Alameda Town of Hillsborough City of Dublin City of Livermore . City of Manteca 12 r ' • ~ , RESUI~S OF THOSE INDIVIDUAIS CONDUCTING THE AUDIT (Continued) Our other audit staff are listed in Exhibit E along with their pertinent ' experience. As you will see, we have considerable depth of experience in municipal audits. ~ ~ J ~ ' ' REFERENCES We are proud of our references, so we have provided the following: City of Pleasant Hill Contact person: Rich Ricci, Director of Finance (415) 671-3237 City of Antioch Contact person: Ray Vignola, Assistant City Manager (415) 778-4531 City of Pinole Contact Person: Joe Meneghini, Assistant City Manager (415) 724-9000 PROPOSER'S APPROACH TO THE EXAl~IINATION AUDIT APPROACH ' i ' , ~ , ' ~J ' Our audit approach is different in 1991 in several respects. At interim we prepare a type-written Pre-Audit Checklist for the finance department which, details all the schedules and analyses we will need at year end. During our interin work we review any prior year adjusting entries with an eye toward naking these entries part of the closing process by including thea in your Pre-Audit Checklist. We review the Checklist with the Finance Department at interim so that the staff will know well in advance exactly what we need to complete the year end audit and when we need it. We have also developed a new approach to our year end work which we will use for the first time at Dublin this year and which we expect to help us reduce next year's audit costs. At year end we begin our work in our office well in advance of the time we come to your office, using the information you provide us based on the Checklist. We use this information to prepare preliminary financial statement drafts, including notes, and we do a manager and partner-level analysis of the financial statements and the other information you have provided. {ihen our staff and supervisor arrive at your office they are thoroughly briefed, armed with draft financial statements and pertinent questions and they lrnow which areas need the most attention. The obvious questions have already been addressed; partner and manager level questions have already been resolved or reduced to writing for follow-up during the audit. This approach is much more efficient, greatly reduces the impact on the Finance Department's staff and speeds the preparation of the final financial statements. We furnish both the Finance Director and the City Manager with these draft financial statements, so that they have much more time to review the financial statements and raise questions while we are still in the City's offices. 13 ~ ~ . ~ , AUDIT APPROACH (Continued) As you can see, our approach to auditing emphasizes finding practical, workable answers to the questions which arise out of an audit and we work closely with ~ you to minimize the impact of the audit process on your workload. We also rotate our audit emphasis from year-to-year, based in part on our ' planning meetings with you. We have been able to help our clients resolve areas of concern or improve controls through this rotation, simply by knowing their concerns before we begin our work. ' STATEMENTS AND REPORTS ~ ~ , ' ' ' ~ Our approach to financial statement preparation emphasizes readability and communication of useful information. We focus on reducing technical accounting information to essentials which are understandable to the reader. At Exhibit B we have included examples of financial statements, produced by our Lotus-based financial statement program. Some more colorful examples of our approach are included in Exhibit A. Color graphs such as these were used in the statistical information sections of three of our clients' Comprehensive Annual Financial Reports in 1990. As far as we Irnow, these graphs are a first - no one has ever used color graphs or color-keyed statistical information in CAFRs before. We take a similar approach to making recommendations, looking for practical ideas which will improve controls where necessary without unduly increasing costs. We also look for potential cost-savings as we perform our work. {~le will provide you with rough drafts of the financial statements as we begin our year-end work in your offices if you give us your closing trial balances in advance_ The refinement and finalization of the financial statements and reports will take place as we complete our year-end work, so that we'll be able to issue our final reports shortly after we complete our work in your offices. GANN LIKIT REVIEL7 ' ' ' , ' ' We will review the City of Dublin's compliance with the Appropriations Limit restrictions imposed by Propositions 4 and 111; as you know, the law requires only a review, not an audit, of the calculation of the current year increment to the City's Gann Limit. We have attended the League of California Cities' seminar and we have done our own research on the reporting requirements arising out of passage of Proposition 111; Exhibit B is an example of our letter to clients on the matter along with our proposed report format. 14 ' ' • • ' COI~PUTER AUDIT CAPABILITIES We use Lotus 1-2-3 and Allways to produce the financial and statistical reports , required for your reports. We have developed a financial statement format program which uses the computer to perform all the arithmetic functions required after the raw numbers are input. We also use the computer to check its own arithmetic and to cross-reference amounts between financial statements. This , approach saves time and improves accuracy. Our approach is to audit through the computer system. As part of the audit our ' Information Systems Manager will perform a separate review and evaluation of your information system controls and procedures. This evaluation normally results in additional recommendations concerning computer operations and ' security. We use laptop computers in our field-work and, as noted above, we have completely computerized the financial statement preparation process. However, ' our experience has been that computerized auditing systems packages are not cost-effective and can disrupt our client's operations. ' AUDIT SCOPE We will audit the general purpose financial statements of the City of Dublin as of June 30, 1992, 1993, 1994, and 1995 for the years then ended. Our audits ' will be made in accordance with generally accepted auditing standards, the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations Programs, Activities, and Functions, issued ' by the U.S. General Accounting Office, the Single Audit Act of 1984, and the provisions of OMB Circular A-128, Audits of State and Local Governments if a single audit is required. Al1 of these standards are summarized in the , Governmental Accounting Auditing and Financial Reporting publication. As part of our audits, we will study and evaluate the internal accounting and administrative control structure and make such tests of transactions and records ' and perform such other auditing procedures as we consider necessary to enable us to express our opinion as to whether the financial statements present fairly the financial position and results of operations of the City of Dublin in accordance , with generally accepted accounting principles. We will issue the following separate reports: r 1) Audit report on the general purpose financial statements of the City of Dublin. ' 2) Management and internal control report including our findings and recommendations for improvements in internal control structure and procedures, compliance with laws and regulations or other material matters. ' 3) Single Audit Act Opinions. ' 4) Transportation Development Act Opinion 5) Appropriations Limit Compliance Letter (see below). ' 15 ~ I'J ' , ~ I~J ' ' ' ' 1 , • ~ AIIDIT SCOPE (Continued) At Exhibit C we have included drafts of the above reports, with the exception of the Appropriation Limit Compliance Letter, which is at Exhibit B. We will review drafts of all the above reports with you and your staff before they are issued in final form. We will issue all the above reports in November of each year, assuming the City's books are closed six weeks before. The purpose of our audits is to express opinions on the general purpose financial statements or compliance with applicable standards. If we discover material errors, defalcations, or other irregularities or other instances which require extended services, we will consult with the City before proceeding. As part of our Single Audit Act and Transportation Development Act audits, we will select and test transactions for compliance with applicable laws, rules and regulations. As part of complying with these regulations we will disclose instances of noncompliance. COMPENSATION Our fees are based on the time and expenses required to successfully complete the engagement. In determining our fees, we understand the City's records will be in condition to be audited; that is, transactions will be properly recorded in the general ledger and subsidiary records, these accounting records and the original source documents will be readily available to us, we will be furnished copies of bank reconciliations and,other reconciliations and analyses prepared by the City and City personnel will be reasonably available to explain procedures, prepare audit correspondence and obtain files and records. Our fee also assumes the City's size and scope of operations will not change significantly in future years. The hours we plan to expend on the City's audit are presented below, by staff classification: Partner 12 ' Manager 54 Supervisor 121 Associates 143 , Office staff ?8 358 ' ' ' ' 1 , Exhibit F is our preliminary working time budget by staff classification and audit section; we have included it to give you more insight into how we plan to spend the hours above. In comparing our proposal with others, you may notice we plan to spend fewer hours on the work. We have compared our time budget with our actual time based on our history with the City. Gle are quite confident ve will be able to complete the work in the hours budgeted, assuming the City meets its responsibilities, because of our people's depth of training and experience combined with the proven efficiencies of our Pre-Audit Checklist and year-end approach of preparing rough draft financial statements before we begin our field-work. Note that we have included the names and resimes of the supervisor and staff associates we have assigned to your work; even our least experienced associate has been on several city audits. This experience, especially at the staff level, translates into fewer hours spent in your office, less disruption of your staff and a more efficient audit. 16 , ~ • ~ ' 1 ' C_1 HOURLY RATES NAKE/FUNGTION HOURI.Y RATE 1. Scott Maze Partner $160 2. Cory Biggs Audit Manager 95 3. Fred Marsh Audit Supervisor 55 4. Kevin 0'Connell Associate 48 5. Sandra McLuckie Information Systems Manager 100 ADDITIONAL DATA CONTINUING EDUCATION ' , ' ~ ' , ~ We hold continuing education classes for clients as well as staff. This February our Introductory Governmental Accounting, Auditing and Financial Reporting course was attended by fifteen people from eight client cities or districts in addition to the people from our audit staff. We hold these courses in our office in Walnut Creek and informality is the key. The courses are structured to maximize class discussion so that participants can learn from their peers as well as from lectures. Dress is informal, meals are brought in and client reaction is very enthusiastic! Some of the subjects our clients have asked us to cover in the future include Debt Refundings and Defeasances, Single Audit Act, Mello-Roos and Assessment District accounting, Preparing for the Audit, and Joint Powers Authorities. As part of our continuing education program, all professional staff receive at least forty hours of education annually. Our program places heavy emphasis on governmental accounting and auditing classes conducted by the California Society of CPA's, the American Institute of CPA's and the Government Finance Officers Association. Four of our staff attended the recent California Society of Municipal Finance Officers convention and one of our Managers, Cory Biggs, has served as a reviewer of CAFRS for the CSMFO and GFOA. All our auditors receive at least 24 hours annually of education specifically related to municipal auditing and accounting. ' Our Managers are specifically responsible for staying abreast of FASB, GASB and tax developments which can affect our clients and for alerting our staff and our clients to these developments. Cory Biggs and Maria Contreras share the , responsibility for GASB developments, Cory also tracks FASB developments and Tim Krisch is responsible for tax developments. ' We are members of the Government Finance Officers Association and the California Society of Municipal Finance Officers. , ' ' 17 ' ' ' , ' ~ 1 ~ ' ~ ' i • QUALITY ASSURANCE We are a member of the Quality Review Program of the AICPA. As a relatively new firm, our first peer review is scheduled for July, 1991. We have established a formal quality assurance program administered by one of our audit managers which meets or exceeds the standards now in effect. Our firm has never been the object of any disciplinary action by the AICPA or any other professional or governmental body. Our municipal audit reports are subject to annual review by various branches of the Office of the State Controller. City audit reports and school district audit reports receive particular scrutiny. Of course, several of our clients reports are also reviewed by CSMFO and GFOA for award consideration; every report submitted has won an award from one of these organizations. The State Controller's Office performed a review of our Single Audit Act work and reported that our work is in substantial compliance with generally accepted auditing standards and generally accepted governmental auditing standards, and is on the same level as that of the large accounting firms. PERSONNEL POLICIES We are an equal opportunity employer. Our present staff includes five males and fourteen females and both sexes are represented in every staff classification from office staff to manager; there is only one owner. Three of our present staff are of Asian descent, one is part American Indian. As a matter of practice our hiring, management and personnel decisions are based solely on an individual's skills and knowledge. We are registered with the State as a small or minority owned business enterprise. ~~*~*~~~~t*~~** , We firmly believe the skills, experience and dedication of the people we have committed to work on your audit are superior to any combination which may be offered by any other firm compering with us. ' , , ~~ ' 1 ' We are confident we can serve you better. As a relatively new firm, we combine the experience we gained in older firms with an enthusiasm for new approaches to our clients' problems. Most important, we are a client-centered firm; we are in business to help you succeed. We look forward to working with you! ~ 18 , ' ' ~ ' ~ ~ ' , , ' ~ ' ~ ' ' ' t ' • i Exhibit A CITY OF DUBLIN COIAR GRAPHS In 1990 we introduced the use of color graphs in the statistical sections of three of our clients CAFRs. Our purpose was to make the statistical sections more readable, more informative and more interesting to all readers, including readers who are not "numbers-oriented". ' ' 1 ' ' 1 ' ~.. ~ ~ 0 ~ t .., ~ ~ 1 ~ t ' , ' FISCAL YEAR ~ 1981 1982 1983 ' ]yR4 i~R~ 19R6 1987 ' ]y43 198y 1990 1 i • CITY OF EXAMPLE CiENERAL REVENUES BY SC7URCE ALL GOVERNMENTAL FUND TYPES LAST TEN FISCAL YEARS ~ TA.XES ~ LICENSES/PERMITS ~ INTERGOVERNMENTAL - USE OF MONEY/PROP. ~ SPECIAL ASSESSMENTS ~ FINES/FORFEITS/MISC AXES LICENCES PERMITS AND SERVICE CHARGES IN"1'ERGOVERN- MENTAL $9,152,571 $2,070,898 $S,lOb,834 10,242,899 2,062,b05 4,200,440 11,408,336 Z,76b,516 4,747,671 12,869,524 2,253,202 4,308,322 18,333,611 2,866,756 9,344,068 21,573,543 3,010,281 8,878,689 ?3,889,780 4,295,051 6,178,546 20,609,350 5,296,438 6,714,558 22,766,213 4,002,236 8,803,047 24,084,561 4,279,980 14,444,467 USE OF MONEI' AND PROPERTY SPECIAL. ASSESSMENTS FINES FORFEITS AND MISC. REVENUE OTAL $~50,440 $451,583 $17,332,326 1,R0'2,149 537,644 18,847,737 2,613,017 $797,759 999,516 23,337,R15 1,922,?74 825,499 1,005,068 ~,183,889 3,450,829 1,453,553 1,534,380 36,983,197 5,326,419 2,581,184 1,660,504 43,030,620 S,b79,557 6,025,679 3,549,464 49,618,077 4,22y,626 6,168,400 1,678,816 44,6y7,133 2,889,671 6,234,145 1,810,372 46,505,684 6,543,0?2 6,210,706 1,571,759 57,134,555 , 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 , ' ' ' ' , , ' ' ' ' ' 1 1 , ' ' ' , ~ • CITY OF EXAMPLE CALIF~RNIA PUBLIC EMPLOYEES RETIREMFNT SYSTEM FUNDING ANALYSIS LAST THREE FISCAL YEARS $40 $35 $30 ^ $25 ~ ~ ~ '~ $20 ~ ~ ~, $15 $10 $5 $0 1987 1988 ~ 1989 ~ NET ASSETS - PENSION BENEFIT ~ UNFUNDED ~ ANNUAL PAYROLL PERCENT OF UNFUNDED UNFUNDED PENSION NE'T ASSEI'S PENSION PENSION ANNLTAL BENEFIT OBLIGATION FISCAL AVAILABLE BENEFIT PERCENT BENEFIT COVERED TO ANNUAL COVERED YEAR FOR BENEFITS nBLIGATION FtrNDED OBLIGATION PAYROLL PAYROLL 1987 $24,169,200 $32,167,800 75.13% $7,~8,6(~ $9,550,6()0 83.75% 1988 27,079,100 34,643,300 78.17~'0 7,564,2(m 10,796,500 70.UC% 1989 30,656,471 37,669,659 £~1.3£~ro 7,813,188 11,573,600 67.51°,~0 ' ' 1 , ' ~ , 1 ' 1 t ' , , , ' ' ' ~ CIT~' OF EXAMPLE ~ PROPERT~' TAX RATES ALL ~VERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS ,-. ~ ~ ~ b ~ ~ x ~ a .~ ~OUNTY WIDE LEVY ~ _ BONDS STRICT FISCAL YEAR BASIC COUNTY WIDE LEVY CITY ` SCHOOL BONDS SCHOOL DISTRICT BART COLLEGE 1981 $4.0000 $0.0175 $0.0971 N/A $0.0752 $0.0288 1982 1.0000 0.0175 0.0986 N/A 0.0697 0.0226 1983 1.0000 0.0175 0.1~4 N/A 0.062~ 0.0256 19&1 1.0000 0.0175 0.1017 N/A 0.0617 0.0184 1985 1.0000 0.0175 0.0155 $0.0777 0.0572 0.0184 198b 1.0000 0.0175 0.0130 0.0717 0.0508 0.0177 1987 1.0000 0.0175 0.~78 0.0656 0.0421 0.0159 19~8 1.0000 0.0175 0.0069 0.0579 0.0390 0.0163 19g9 1.0000 0.0175 0.4fl58 0.0492 0.0372 0.0131 1990 1.0000 0.0175 0.1595 0.0~18 0.0319 0.0126 ' 1981 1982 1983 1984 19$S 1986 1987 1988 1989 1990 ' ~ '~ CIT~' OF EXAMPLE ' PR~PERTY VALUES, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS F 0 ~ ~ 0 ~ ^ 1981 1982 1983 1984 1985 1956 1987 1988 1989 1990 - COMMERCIAL CONST. ~ BANK DEPOSITS ' COMMERCIAL CONSTRUC'I'ION RESIDENTIAL CONSTRUCTION FISCAL PROPER'TY NtiMBER NUMBER ' YEAR VALUES OF LTNITS VALUE OF UNITS VALUE 1981 $277,356,375 N/A (1) $4,266 156 $12,649,527 , 1982 1,258,550,298 N/A (1j 8,219,000 107 7,756,459 1983 1,367,405,090 N/A (1) 22,711 138 10,5(i5,280 1984 1,421,354,864 'll 30,497,130 420 38,6~,754 ' 1985 1,607,799,274 25 14,861,982 901 49,635,847 19i~h 1,846,010,373 42 33,601,272 1005 47,415,874 1987 2,059,914,491 23 4,423,534 932 36,732,357 1988 2,321,680,112 38 35,445,890 1442 89,530,702 ' 1989 2,559,257,261 13 6,989,400 9?9 26,578,198 1990 2,944,471,191 110 20,828,525 3755 38,470,486 , (1) DATA NOT AVAILARLE , ' BANK DEPOSITS N/A (1) N/A (1) N/A (1) N/A (1) $807,562,000 841,861,000 894,675,000 939,204,000 961,542,000 N/A (1) 1Y81 198Z IYBS 1Y84 lYBJ 1Y86 lY8! lY8!{ lY1~Y lYYU ~ RESIDENTIAL CONST. ~ PROPERTY VALUE ' • ~ Exhibit B ' 1 , , ' L ' Honorable Members of the City Council of the City of Dublin, California We have applied the procedures enumerated below to the accompanying Appropriations Limit worksheet #6 of the City of Dublin for the year ended June 30, 1992. These procedures, which were suggested by the League of California Cities and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report is intended for the information of management and the City Council; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record. At your request, based on the League of California Cities' interpretation of ' Article %IIIB of the California Constitution, the scope of our vork egcluded anp tests or other procedures regarding the accuracy of the 1978-79 or 1986-87 "base year" appropriations limit calculations. , The procedures you requested us to perform and our findings were as follows: A. We obtained the completed worksheets (#1 through #7) presented in the Article ' XIIIB Appropriations Limitation Uniform Guidelines (or other alternative computations), and determined that the limit and annual adjustment factors were adopted by resolution of the City Council. We also determined that the ' population and inflation options were selected by a recorded vote of the City Council. ' B. For the accompanying Appropriations Limit worksheet #6, we added line A, last year's limit, to line E, total adjustments, and agreed the resulting amount to line F, this year's limit. ' C. We agreed the current year information presented in the accompanying Appropriations Limit worksheet #6 to the other worksheets described in #1 above. ' D. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet #6 to the prior year appropriations limit adopted by the City Council during the prior year. ' These agreed-upon procedures are substantially less in scope than an audit, the objective of which is the expression of an opinion on the accompanying Appropriations Limit worksheet #6. Accordingly, we do not express such an opinion. , ' , ' i ~ Exhibit B ' Based on the application of the procedures referred to above, nothing came to our attention which caused us to believe that the accompanying Appropriations Limit worksheet #6 was not computed in accordance with ' Article XIIIB of the California Constitution, as interpreted in the California League of Cities Article XIIIB Appropriations Limit Uniform Guidelines. Had we performed additional procedures or had we made an , audit of the accompanying Appropriations Limit worksheet #6 and the other completed worksheets described in #1 above, matters might have come to our attention which would have been reported to you. , 1 ' ' , ' ' ' ' , ~ ' ~ 1 ' ' ~ ' ' • • Exhibit C AUDITOR'S REPORT ON THE GENERAL PURPOSE FINANCIAL STATEHENTS ~ Honorable Members of the City Council of the City of Dublin, California ' We have audited the general purpose financial statements of the City of Dublin as of and for the years ended June 30, 1992 and 1991 as listed in the table of contents. These financial statements are the responsibility of the City's management. Our ' responsibility is to express an opinion on these financial statements based on our audit. ~ We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis evidence supporting the amounts and ~ disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit ' provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of the , City of Dublin at June 30, 1992 and 1991 the results of its operations and cash flows of its proprietary fund types for the years then ended in conformity with generally accepted accounting principles. ~ Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual account group ~ financial statements listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Dublin. Such information has been subjected to the ' auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. ~ The statistical section listed in the Table of Contents was not audited by us and, accordingly, we do not express an opinion on this information. ' November 30, 1992 ' ' r ~ i • Exhibit C ~ ' , Honorable Members of the ~ City Council of the City of Dublin, California ' We have audited the general purpose financial statements of the City of Dublin for the year erided June 30, 1992, and have issued our report thereon dated November 30, 1992. As part of our audit, we made a study and evaluation of the system of internal accounting control to the extent we considered necessary to ' evaluate the system as required by generally accepted auditing standards. The purpose of our study and evaluation was to determine the nature, timing, and extent of the auditing procedures necessary for expressing an opinion on the ' financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole. ~ ~ ~ ' ~ ' , ~ ~ ' Management is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projections of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of the City of Dublin taken as a whole. Our study and evaluation disclosed no condition that we believe to be a material weakness. However, our study and evaluation disclosed the following areas in which internal controls could be strengthened. ' , ' ' ~ , ' 1 ~ ' , , ' ~ ' i 1 1 1 1 ~ • CZTY OF DUBLIN RECOI~IYENDATIOXS FOR I?IPRODEI'lENTS IN INTERNAL CONTROLS "RECOMMENDATIONS INSERTED HERE" * * * ~ * * ~ * * * * ~ Exhibit C We would be pleased to discuss our recommendations further with you at your convenience. We also wish to express our appreciation for the excellent courtesy and cooperation extended to us by Phil Molina and his staff during our audit. November 30, 1992 ' , , ' ~ ~ Exhibit C AUDITOR'S REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE ' ' ' ' ~ CJ ' ~~ ~I u ' J ' ' , Honorable Members of the City Council of the City of Dublin, California We have audited the general purpose financial statements of the City of Dublin, California, for the year ended June 30, 1992 and have issued our report thereon dated November 30, 1992. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining on a test basis evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. November 30, 1992 L_.J ' ~ • Exhibit C ' I~ ' , ' ~ 1 ' ' ' 1 ' ' ' ' , , REPORT ON IKlERXAL CONTROLS ACCOUIVTING AND ADNI1VISlRATIVE BASED ON A SlUDY AND EVAIUATIOX HADE AS A PART OF AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND ADDITIOAIAL TESlS REQUIRED BY TAE SINGLE AIIDIT ACl Honorable Members of the City Council of the City of Dublin, California We have audited the general purpose financial statements of the City of Dublin for the year ended June 30, 1992, and have issued our report thereon dated November 30, 1992. As part of our audit we made a study and evaluation of the internal control systems including the applicable internal administrative control used in administering federal financial assistance programs of the City of Dublin, to the extent we considered necessary to evaluate the systems as required by generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States, the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments. For the purpose of this report, we have classified the significant internal accounting and administrative controls used in administering federal financial assistance programs in the following categories: ACCOUNTING CONTROLS: Treasury or financing Revenue and receipts Purchases and disbursements External financial reporting ADMINISTRATIVE CONTROLS: General Requirements Political activity Davis-Bacon Act Civil rights Cash management Federal financial reports Specific Requirements Types of services Eligibility Matching level of effort Reporting Cost allocation Special requirements. Monitoring subrecipients , 1 t ' ' ' ' ' ' ' , ' ' ' ' ! ~ AUDITOR'S REPORT ON IINTERNAL CONTIaOIS (Continued) Exhibit C The management of the City of Dublin is responsible for establishing and maintaining internal control systems used in administering federal financial ass:istance programs. In fulfilling that responsibility, estimates and jud~;ements by management are required to assess the expected benefits and rel~3ted cost of control procedures. The objectives of internal control systems useci in administering federal financial assistance programs are to provide man<agement with reasonable, but not absolute, assurance that, with respect to fedE~ral financial assistance programs, resource use is consistent with laws, regixlations, and policies; resources are safeguarded against waste, loss and misixse; and reliable data are obtained and maintained and fairly disclosed in reports. ' Because of inherent limitations in any system of internal accounting and admi:nistrative controls used in administering federal financial assistance pro~;rams, errors or irregularities may nevertheless occur and not be detected. Alsc>, projection of any evaluation of the systems to future periods is subject to t:he risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may dete:riorate . Our study included all of the applicable control categories listed above. Duri.ng the year ended June 30, 1992, the City of Dublin had no major federal fins~ncial assistance programs and expended _~ of its total federal financial assi.stance under the nonmajor federal financial assistance programs. With respect to internal control systems used in administering these nonmajor fede:ral financial assistance programs, our study and evaluation included considering the types of errors and irregularities that could occur, dete.rmining the internal control procedures that should prevent or detect such erro~rs and irregularities, determining whether necessary procedures are prescribed and are being followed satisfactorily, and evaluating any weak.nesses . With respect to the internal control systems used solely in administering the other nonmajor federal financial assistance programs of the City of Dublin, our study and evaluation was limited to a preliminary review of the systems to obtain an understanding of the control environment, and flow of transactions through the accounting system. Our study and evaluation of the internal control systems used solely in administering the other nonmajor federal financial assistance programs of the City of Dublin did not extend beyond this preliminary review phase. ' Our study and evaluations were more limited than would be necessary to express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of Dublin. Accordingly, we do not , express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of Dublin. ' r ~ i ' ' ' ~ ' ~ ~ ' ' i 1 1 1 1 i 1 1 1 ! , ! AUDITOK'S REPORl ON INI'ERAAL C011r1'ROLS (Continued) Exhibit C Also, our audit, made in accordance with the standards mentioned above, would not necessarily disclose material weaknesses in the internal control systems used solely in administering nonmajor federal financial assistance programs. Our study and evaluation and our audit disclosed no condition that we believe to be a material weakness in relation to the federal financial assistance programs of the City of Dublin. This report is intended solely for the use of management and all applicable federal agencies and those other government agencies from which federal financial assistance was received and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City of Dublin, is a matter of public record. November 30, 1992 ' ~ ~ Exhibit C , ' ' ' ' ' ' REPORT ON THE INTERNAL CONTROL STRUGTURE IN ACCORDANCE i~ITH GOVERNI~iENT AiIDITING STANDARDS Honorable Members of the City Council of the City of Dublin, California We have audited the general purpose financial statements of the City of Dublin, California, as of and for the year ended June 30, 1992, and have issued our report thereon dated November 30, 1992. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. ' In planning and performing our audit of the general purpose financial statements of the City of Dublin for the year ended June 30, 1992, we considered its internal control structure to determine our auditing procedures ' for the purpose of expressing.our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. ' The management of the City of Dublin is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected ' benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that ' transactions are executed in accordance with managements'authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. t Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that ' procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. ' For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: ' Treasury or financing Revenue and receipts Purchases and disbursements ' External financial reporting , ' ~~ ~ Exhibit C 1 For all of the internal control structure categories listed above, we obtained ' an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily ' disclose all matters in the internal control structure that might be material weaknesses under stiandards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the , design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general ' purpose financial statements being audited may occur and not be detected within a timely period by employees in normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. ~ ' ' ~ 1 ' ~ ' ' ' ' , However, we noted certain matters involving the internal control structure and its operation that we have reported to management of the Ci~y of Dublin, in a separate communication dated November 30, 1992. This report is intended solely for the use of management and all applicable federal agencies and those other government agencies from which federal financial assistance was received and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City of Dublin, is a matter of public record. November 30, 1992 , ' ~ ~ Exhibit C LJ ' ~ COHPLIANCE REPORT BASED ON ' AN AUDTl OF TAE GENERAL PURPOSE FINANCIAL STATEMENTS PERFORHED IN ACCORDANCE Ti~ITH GOVERNNENT AUDITING STANDARDS ' Honorable Members of the City Council ' of the City of Dublin, California We have audited the general purpose financial statements of the City of Dublin ' for the year ended June 30, 1992, and have issued our report thereon dated November 30, 1992. We conducted our audit in accordance with generally accepted auditing standards; and Government Auditing Standards, issued by ' the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. ' Compliance with laws, regulations, contracts, and grants applicable to City of Dublin, is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are ' free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, our objective was not to provide an opinion on overall compliance with such ' provisions. The results of our tests indicate that, with respect to the items tested, the City of Dublin complied in all material respects with the provisions referred , to in the proceeding paragraph. With respect to items not tested, nothing came to our,attention that caused us to believe that the Town had not complied, in all material respects, with those provisions. , This report is intended solely for the use of management and all applicable federal agencies and those other government agencies from which federal , financial assistance was received and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City of Dublin, is a matter of public record. ' ~ November 30, 1992 ' ' ' , ' ' ' ' ' ' ~ ! . SINGLE AUDIT REPORT ON CO/YPLIANCE (~ITA REQUIRE!lENTS APPLICABLE TO NOX~fATOR FIDERAL FINANCIAL ASSISlANCE PROGRAN TRANSAClIONS Honorable Members of the City Council of the City of Dublin, California Exhibit C In connection with our audit of the general purpose financial statements of City of Dublin, for the year ended June 30, 1992 and with our study and evaluation of the City's internal control systems used to administer federal financial assistance programs, as required by OMB Circular A-128, "Audits of State and Local Governments," we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended November 30, 1992. ' As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed; and eligibility that are applicable to those transactions. Our procedures were substantially less in scope that an audit, the objective of ' which is the expression of an opinion on the City's compliance with these requirements. Accordingly we do not express such an opinion. ' ' ' C~ ' ' ' ' With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances of noncompliance with those requirements, which are described in the accompanying schedule of findings and questioned costs. This report is intended for the information of the management, and all applicable federal agencies and those other government agencies from which federal financial assistance was received and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. November 30, 1992 ' ' ~ , Exhibit C ~ ' ' , ' ~ ~J ' LJ , ' ' , ' REPORT OF CERlIFlID PUBLIC ACCOUNTANT Honorable Members of the City Council of the City of Dublin, California We have audited the financial statements of the City of Dublin Bicycle/Pedestrian Projects, a fund of the City of Dublin, as of and for the year ended June 30, 1992, as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit-provides a reasonable basis for our opinion. As discussed in Note 1 A, the accompanying financial statements include the City of Dublin Bicycle/Pedestrian Projects, and are intended to present the financial position and results of operations for the Transportation Development Act Special Revenue Fund. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Bicycle/Pedestrian Project at June 30, 1992 and the results of its operations for the period then ended in conformity with generally accepted accounting principles. In connection with our examination, we also performed tests of compliance as required by the California Administrative Code, Title 21, Chapter 3, Subchapter 2, Article 5.5. In our opinion, based on the procedures described in the preceding paragraph, ' the City of Dublin has complied with the applicable laws, rules and regulations of the agreement referred to above. ' November 30, 1992 ' ' , ~ • Exhibit D ' ' , , ' , ~ ~ ' ' ' ~ ' ' ' ' ' ' CITY OF DUBLIN MUNICIPAL CLIII~ITS We are proud of our extensive list of governmental, special district and school district audit clients. Our governmental clients are listed below: Cities: City of Alameda Comprehensive Annual Financial Report Redevelopment Agency Audit and Compliance Reports Single Audit Act Report Transportation Development Act Audit Report Mortgage Revenue Bond Fund Retirement System Pension Plan City of Albany General Purpose Financial Statements Redevelopment Agency Audit and Compliance Reports Public Facilities Financing Authority Controller's Report Single Audit Act Report Measure B Compliance Opinion Police and Fire Relief and Retirement System Pension Plan Audit and Controller's Report Transit Operations Controller's Report City of Antioch Comprehensive Annual Financial Report Redevelopment Agency Audit and Compliance Reports Single Audit Act Report City Controller's Report Transportation Development Act Audit Report Town of Danville General Purpose Financial Statements Redevelopment Agency Audit and Compliance Reports Single Audit Act Report Transportation Development Act Audit Report City of Dublin Comprehensive Annual Financial Report Transportation Development Act Audit Report Single Audit Act Report Town of Hillsborough General Purpose Financial Statements Measure A Compliance Opinion City of Livermore Comprehensive Annual Financial Report Redevelopment Agency Audit and Compliance Reports Public Facilities Corporation Audit Report Single Audit Act Report Measure B Compliance Opinion Capital Financing Authority Controller's Report ' ~ . Exhibit D City of Larkspur ~ General Purpose Financial Statements City of Los Banos ~ Software consulting and installation of BRC modules Accounting assistance City of Manteca ~ Comprehensive Annual Financial Report Redevelopment Agency Audit, Compliance and Controller's Reports Recreational Facilities Corporation Audit and Controller's Reports ' Transit Operations Controller's Report Single Audit Act Report ~ City of Pleasant Hill Comprehensive Annual Financial Report Redevelopment Agency Audit and Compliance Reports Residential Mortgage Revenue Bond Fund Audit ~ ~ City Controller's Report Special District Controller's Report Transportation Development Act Audit Report ' City of Pinole General Purpose Financial Statements Redevelopment Agency Audit and Compliance Reports ' City of Saratoga General Purpose Financial Statements , Single Audit Act Report Transportation Development Act Audit Report ~ Special Districts and Authorities: Bureau of Electricity of the City of Alameda General Purpose Financial Statements ' Various Compliance Reports Housing Authority of the City of Alameda ~ Special consulting East Bay Regional Park District , General Purpose Financial Statements Special District Controller's Report Single Audit Act Report ' Hayward Area Recreation and Park District General Purpose Financial Statements Special District Controller's Report ' Livermore Area Recreation and Park District General Purpose Financial Statements ' Special District Controller's Report Financing Authority Audit and Controller's Reports ' i 1 ' ~ 1 ' 1 ' ' ~ ' r ~ ~ ~ ~ ~ ~ ~ t ~ . Exhibit D Livermore Amador Valley Wastewater Management Authority • General Purpose Financial Statements - Special District Controller's Report Ross Valley Paramedic Authority General Purpose Financial Statements Tri-Valley Wastewater Authority General Purpose Financial Statements Special District Controller's Report School Districts: For all of the following school districts we prepared and submitted General Purpose Financial Statements, Single Audit Reports and State Compliance Reports: Larkspur School District Orinda Union School District Petaluma Schools Piedmont Unified School District Ross Valley School District Tamalpais Union High School District ' ' ' In the event to illness, substituted. ~ CITY OF DUBLIN OTHFR AVAIIABLE STAFF ~ Exhibit E one of the people assigned to your audit is unable to continue due accident or other cause, one of the people below will be ' MARIA CONTRERAS, Manager t 1 , ' ' ' ' ~ , ' ' ' 1 ' Maria is a graduate of St. Mary's College with five years experience in private accounting. She is a California CPA, a member of the AICPA, California Society of CPA's and NAA. Since joining our firm in 1986, Maria has participated in the following municipal audits: City of Alameda City of Antioch Hayward Area Park and Recreation District Town of Hillsborough City of Manteca South San Joaquin Irrigation District Larkspur School District Mill Valley School District Orinda Union School District Petaluma Schools Piedmont Unified School District Ross Valley School District , Shoreline Unified School District Tamalpais Union High School District TIMOTHY KRISCX, Manager Tim received a Bachelor of Arts Degree and a Bachelor of Science Degree from Eastern Illinois University and is pursuing his Master of Science in Taxation form Golden Gate University. He is a Certified Public Accountant in the State of California. He is a member of the American Institute of Certified Public Accountants, the California Society of Certified Public Accountants and the American Management Association. He was employed by Peterson & Co., a certified public accounting firm specializing in construction related litigation claims, and Wallace, Mah & Louie, Certified Pubic Accountants, for a total of nine years prior to joining Maze & Associates. His experience has been in a wide variety of industries including manufacturing, retail, real estate construction and development, service oriented industries and not-for-profit organizations. His relevant audit experience includes: Northern California Grantmakers Valley Volunteer Center Junior Achievement of the Bay Area San Francisco Economic Development Center Match-two Prisoner Outreach Bay Area Business Development Corporation San Francisco Convention Facilities San Francisco Convention & Visitors Bureau 1 ~ C ~ , ' ' ' ~ ' ' ' ' i MARY DODGE, Supervisor CITY OF DUBLIN OTHER AVAIIABLE STAFF • Exhibit E Mary has a combination of skill which lends itself particularly to municipal audit work. Her initial public accounting experience was gained at Touche Ross, where her clients included the City of Sacramento, Sacramento Redevelopment Agency, and other governmental clients. Mary was also Controller of the University Foundation at California State University, Chico for over four years and thus has a unique perspective regarding goverrunental accounting problems and needs. She also has extensive federal and State grant experience. Since joining our firm, Mary has concentrated on governmental and fund accounting and auditing, and has experience on the following clients: City of Albany City of Antioch California State University Sacramento, Associated Students, Inc. California State University Sacramento, Associated Students Children's Center California State University Hayward, Associated Students, Inc. City of Livermore City of Rocklin City of Dublin City of Pleasant Hill Livermore Area Recreation and Park District Reed Union School District Petaluma Schools Piedmont Unified School District Ross School District Lagunitas School District , KIM ABELE, Supervisor Kim graduated from CSU Hayward in 1985 with a B.S. in Business, emphasis is Accounting. Kim passed the CPA examination on her first try in May 1988 and is , awaiting her certificate. Kim worked as a bookkeeper while in college and continued in private accounting for Long's Drugs upon graduation. She joined us ' in February 1988 and has added greatly to our pool of assisted in refining our computer financial statement Lotus skills. Kim has preparation programs, including developing a whole new set of macros. She has gained governmental audit experience working on the following clients: ' City of Livermore City of Pleasant Hill City of Antioch ' City of Rocklin City of Manteca ' City of Pinole ' ' ' ' , , ~ ' ' ~ ' , , ' ' ' ' ' ' • . Exhibit E CITY OF DUBLIN OTNIIt AVAIIABLE STAFF KIM ABELE, Supervisor (Continued) City of E1 Cerrito Tamalpais Union High School District JANE CORPUS, Supervisor Jane is a graduate of CSU Hayward with a B.S. in Business, emphasis in accounting. Jane's experience includes three years in Accounting for Safeway Stores while she was a student. She also has experience with computers and excellent knowledge of Lotus 1-2-3. Jane's municipal audit experience includes: City of Antioch City of Livermore City of Alameda California State University Sacramento, Associated Students, Inc. East Bay Regional Park District Hayward Area Recreation and Park District City of Manteca Recreational Facilities, Inc. East Bay Sanitary, Inc. Orinda Union School District City of Saratoga Ross Valley School District Tamalpais Union High School District Petaluma Schools SYLVIA MA, Associate Sylvia graduated from CSU Sacramento in 1990 with a B.S. in Business Administration, emphasis in accounting. She gained valuable accounting experience as an intern at McMullen, McPhee and Co., CPA's and while working at Teichert Construction, Inc, as an accounting assistant while in college. Sylvia's municipal audit experience includes: City of Alameda City of Antioch East Bay Regional Park District Livermore Area Recreation and Park District Petaluma Schools City of Pleasant Hill Tri-Valley Waste Water Authority Ross Valley School District Orinda Union School District ' ' ~ • Exhibit E 1 CITY OF DUBLIN OTHER AVAIIABLE STAFF ' MARY ANN LUKE, Staff Accountant ' Mary Ann graduated from CSU Sacramento in 1990 with a B.S. in Business, emphasis in Accounting. She has gained valuable accounting experience with internships at Chevron USA, Inc., the Sacramento County Department of Public Works, and , Macias & Pierini, Certified Public Accountants in Sacramento. Her relevant governmental audit experience is as follows: ' City of Albany City of Antioch California Housing Council City of Dublin , City of Livermore City of Manteca Recreational Facilities, Inc. Piedmont Unified School District t City of Pinole SABRINA MYER, Staff Associate ' Sabrina is currently attending CSU Hayward and is pursing a B.S. in Business. She currently has an A.A. degree in Business from Butte Junior College. She is working full time in our Small Business Department and has ' significant EDP skills, primarily in general ledger software, LOTUS and DOS. She has been approved as a qualified 'installer for the ACCPAC family of Software. She has experience on the following clients: ' , , ' ~ ' ' ' City of Manteca City of Concord, Castle Construction Air Bearings, Inc. Heuristic Software, Inc. Phillabuck, Inc. Physicians Benefit Trust Preiss & Hammel, Attorneys at Law Albertsons Carpet Cleaning A1's Roofing Supply, Inc. Motion Systems, Inc. Popcorn Enterprises, Inc. HP Distributors Kennett Pizza UFMC Health Systems ANNE MAZE, Staff Associate Anne has her B.S. in Economics from U.C. Santa Cruz. She has experience on the following governmental clients: East Bay Sanitary, Inc. ~ City of Antioch City of Alameda Livermore Public Facilities Corp. City of Pinole ~ ' ~ • EXHIBIT F ~ CITY OF DUBLIN PROPOSED AUDIT FEES AND HOURS ~ 1992 1993 1994 1995 Partner Menager Supervisor Staff Lotus Typing Proposed Proposed Proposed Proposed '991 Proposed Audit Fee: General Purpose Financial Statements ~ $288 $2,394 $2,772 55,144 $300 $167 $11,065 $11,618 $12,199 $12,809 in e Audit 81 288 599 1,188 67 2,142 2,249 2,362 2,480 ~ransportation Development Act Audit 288 342 248 648 67 67 1,660 1,743 1,830 1,922 Total Audit Fees 864 3,335 4,208 5,792 367 301 14,867 15,610 16,391 17,210 ~'re aration of CAFR 864 026 1 1 238 133 133 394 3 3 564 3 742 929 3 p , , , , , , ~rop. 111 Compliance 257 545 802 842 884 928 Total Billable Fees $1,728 $4,618 $5,991 $5,792 5500 $434 $19,063 520,016 $21,017 $22,068 d d ~9 91 Propose Au it Hours: udit of General Purpose ~ Financial Statements 2 28 56 127 9 5 227 227 227 227 ingle Audit 2 7 24 2 35 35 35 35 tansportation Development Act Audit 2 4 5 16 2 2 31 31 31 3l ~rop. 111 Compliance 3 I1 14 14 14 14 Preparation of CAFR 6 12 25 4 4 51 51 51 51 i Total Audit Hours 12 54 121 143 15 13 358 358 358 358 i ~ 1 1 i 1 1