The URL can be used to link to this page

Home My WebLink AboutAGENDA REPORT 2015 0701 CCSA REG ITEM 10O ITEM 10.0. CITY OF MOORPARK,CALIFORNIA City Council Meeting of 7-/-.t0i5 ACTION: MOORPARK CITY COUNCIL t,4d AGENDA REPORT BY: ide aa TO: Honorable City Council FROM: Ron Ahlers, Finance Director DATE: June 24, 2015 (City Council meeting of July 1, 2015) SUBJECT: Consider Information Letter from External Auditors Regarding the Fiscal Year 2014/15 Audit BACKGROUND 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 2014/15 Audit 613 IR_ AROGERS,ANDERSON, MALODY&SCOTT, LLP M CERTIFIED PUBLIC ACCOUNTANTS,SINCE 1948 735 E.Carnegie Dr. Suite 100 San Bernardino,CA 92408 909 889 0871 T June 22, 2015 909 889 5361 F ramscpa.net To the Honorable City Council City of Moorpark PARTNERS Moorpark, California Brenda L. Odle,CPA.MST Terry P. Shea.CPA We are engaged to audit the financial statements of the governmental activities, Kirk A Franks.CPA each major fund, and the aggregate remaining fund information of the City of Scott W. Manna,CPA,CGMA Moorpark (the City) for the year ended June 30, 2015. Professional standards Leena Shanbhag,CPA,MST.CGMA require that we provide you with the following information related to our audit. Jay H. Zercher,CPA(Partner Emeritus) Phillip H.Waller,CPA(Partner Emeritus) We would also appreciate the opportunity to meet with you to discuss this information further since a two-way dialogue can provide valuable information MANAGERS/STAFF for the audit process. Bradferd A.Welebir.CPA.MBA Jenny Liu,CPA,MST Our Responsibilities under U.S. Generally Accepted Auditing Standards and Seong-Hyea Lee.CPA.MBA OMB Circular A-133 Charles De Simoni,CPA Yiann Fang,CPA As stated in our engagement letter dated June 22, 2015, our responsibility, as Nathan Statham.CPA.MBA described by professionalexpress standards, is to ex opinions about whether the Brigitta Bartha.CPAP Gardenya Duran,CPA financial statements prepared by management with your oversight are fairly Juan Romero,CPA presented, in all material respects, in conformity with U.S. generally accepted Ivan Gonzales.CPA,MSA accounting principles. Our audit of the financial statements does not relieve Brianna Pascoe,CPA you or management of your responsibilities. In planning and performing our audit, we will consider the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting. We will also consider internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, if applicable. As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we will perform tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the MEMBERS determination of financial statement amounts. However, providing an opinion American Institute of on compliance with those provisions is not an objective of our audit. Also in Certified Public Accountants accordance with OMB Circular A-133, we will examine, on a test basis, PCPS The AICPA Alliance evidence about the City's compliance with the types of compliance for CPA Firms requirements described in the U.S. Office of Management and Budget (OMB) Governmental Audit Circular A-1.33 Compliance Supplement applicable to each of its major federal Quality Center programs for the purpose of expressing an opinion on the City's compliance California Society of with those requirements. While our audit Will provide a reasonable basis for our Certified Public Accountants opinion, it will not provide a legal determination on the City's compliance with those requirements. 614 STABILITY. ACCURACY. TRUST. To the Honorable City Council June 22, 2015 City of Moorpark Page 2 We have not been engaged to report on statistical data or the introductory 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 Generally accepted accounting principles provide for certain required supplementary information (RSI) to supplement the basic financial statements. Our responsibility with respect to management's discussion and analysis, the schedule of proportionate share of the net pension liability, the schedule of contributions and general fund and major fund budgetary comparison schedules, which supplement the basic financial statements, is to apply certain limited procedures in accordance with generally accepted auditing standards. 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 the schedule of expenditures of federal awards (if applicable), combining fund schedules and budgetary comparison schedules, 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. 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 intemal control related matters that are required to be communicated under professional standards. We expect to begin our audit on approximately June 22, 2015 and issue our report on approximately December 15, 2015. Terry Shea, CPA is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. This information is intended solely for the use of the City Council and management of the City 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 o Terry �'C PA Partner!/ 615