HomeMy WebLinkAboutAGENDA REPORT 2014 0702 CCSA REG ITEM 10KITEM 10.K.
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MOORPARK, CALIFORNIA
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MOORPARK CITY COUNCIL
AGENDA REPORT
Honorable City Council
Ron Ahlers, Finance Director
June 24, 2014 (City Council meeting of July 2, 2014)
SUBJECT: Consider Information Letter from External Auditors Regarding the
Fiscal Year 2013/14 Audit
Annually the City of Moorpark engages the services of a CPA firm to perform an audit of
the financial statements of the City. The City contracts with the firm of Rogers,
Anderson, Malody & Scott, LLP Certified Public Accountants (RAMS) for these services
for a five year period. The attached letter is a communication tool by the auditors to the
City Council of the City of Moorpark.
DISCUSSION
At the beginning of each audit cycle the external auditors send out a letter to the City
Council which states their responsibilities with regard to the audit along with the scope
and timing of the audit. Auditing standards (SAS 114) require that this information be
sent to the governing board of the corporation. This is one of the communication tools
between the external auditor and the City Council.
The letter is attached for your review.
FISCAL IMPACT
None.
STAFF RECOMMENDATION
Receive and file.
Attachment: RAMS letter regarding the Fiscal Year 2013/14 Audit
255
73S E. Carnegie Dr. Suite 100
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Brenda L Odle, CPA, MST
Terry P. Shea, CPA
Kirk A Franks. CPA
Matthew B. Wilson, CPA, MSA, CGMA
Scott W. Manno, CPA, CGMA
Leena Shanbhag, CPA, MST, CGMA
Jay H. Zercher, CPA (Partner Emeritus)
Phillip H. Waller, CPA (Partner Emeritus)
MANAGERS / STAFF
Bradferd A. Welebir, CPA, MBA
Jenny Liu. CPA, MST
Papa Matar Thiaw, CPA, MBA
Maya S. Ivanova, CPA, MBA
Seong-Hyea Lee, CPA, MBA
Charles De Simoni, CPA
Yiann Fang, CPA
Daniel T Turner, CPA, MSA
David D. Henwood, CPA
Nathan Statham. CPA, MBA
Brigitta Bartha. CPA
Gardenya Duran, CPA
Juan Romero. CPA
Ivan Gonzales, CPA, MSA
ROGERS. ANDERSON, MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
June 23, 2014
To the Honorable City Council
City of Moorpark
Moorpark, California
We are engaged to audit the financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information
of the City of Moorpark (City) for the year ended June 30, 2014.
Professional standards require that we provide you with the following
information related to our audit. We would also appreciate the opportunity
to meet with you to discuss this information further since a two-way
dialogue can provide valuable information for the audit process.
Our Responsibilities under U.S. Generally Accepted Auditing Standards
and Government Auditing Standards
As stated in our engagement letter dated June 23, 2014, our
responsibility, as described by professional standards, is to express
opinions about whether the financial statements prepared by
management with your oversight are fairly presented, in all material
respects, in conformity with U.S. generally accepted accounting principles.
Our audit of the financial statements does not relieve you or management
of your responsibilities.
As part of our audit, we will consider the internal control of the City of
Moorpark. Such considerations are solely for the purpose of determining
our audit procedures and not to provide any assurance concerning such
internal control.
As part of obtaining reasonable assurance about whether the financial
statements are free of material misstatement, we will also perform tests of
City of Moorpark's compliance with certain provisions of laws, regulations,
MEMBERS contracts, and rants. However, providing an opinion on compliance with
American Institute of 9 P 9 p P
Certified Public Accountants those provisions is not an objective of our audit.
PCPS The AICPA Alliance
Generally accepted accounting principles provide for certain Required
for CPA Firms
Supplementary Information (RSI) to
supplement
the basic financial
Governmental Audit
statements. Our responsibility with
respect to
the management's
Quality Center
discussion and analysis, budgetary
comparison information and the
California Society of
Certified Public Accountants
schedule of funding progress, which
supplements
the basic financial
statements, is to apply certain limited procedures
in accordance with
generally accepted auditing standards
STABILITY. ACCURACY. TRUST.
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The Honorable City Council June, 23, 2014
City of Moorpark Page 2
However, the RSI will not be audited and, because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance, we will not express an
opinion or provide any assurance on the RSI.
We have been engaged to report on Supplementary Information, which accompany the financial
statements but are not RSI. Our responsibility for this Supplementary Information, as described
by professional standards, is to evaluate the presentation of the Supplementary Information in
relation to the financial statements as a whole and to report on whether the Supplementary
Information is fairly stated, in all material respects, in relation to the financial statements as a
whole.
We have not been engaged to report on Introductory Section and Statistical Section, which
accompany the financial statements but are not RSI. Our responsibility with respect to this other
information in documents containing the audited financial statements and auditor's report does
not extend beyond the financial information identified in the report. We have no responsibility for
determining whether this other information is properly stated. This other information will not be
audited and we will not express an opinion or provide any assurance on it.
Planned Scope and Timing of the Audit
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements; therefore, our audit will involve judgment about the number of
transactions to be examined and the areas to be tested.
Our audit will include obtaining an understanding of the entity and its environment, including
internal control, sufficient to assess the risks of material misstatement of the financial
statements and to design the nature, timing, and extent of further audit procedures. Material
misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation
of assets, or (4) violations of laws or governmental regulations that are attributable to the entity
or to acts by management or employees acting on behalf of the entity. We will generally
communicate our significant findings at the conclusion of the audit. However, some matters
could be communicated sooner, particularly if significant difficulties are encountered during the
audit where assistance is needed to overcome the difficulties or if the difficulties may lead to a
modified opinion. We will also communicate any internal control related matters that are
required to be communicated under professional standards.
We expect to begin our audit on approximately June 23, 2014 and issue our report on
approximately December 15, 2014.
This information is intended solely for the use of Honorable City Council and management of the
City of Moorpark and is not intended to be, and should not be, used by anyone other than these
specified parties.
Very truly yours,
ROGERS, ANDERSON, MALODY & SCOTT, LLP
JL,
Terry Sh PA
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