HomeMy WebLinkAboutAGENDA REPORT 2013 0515 CCSA REG ITEM 10H ITEM 10.1-1.
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MOORPARK CITY COUNCIL
AGENDA REPORT �`�� �
TO: Honorable City Council
FROM: Ron Ahlers, Finance Director OU-11
DATE: May 1, 2013 (City Council meeting of May 15, 2013)
SUBJECT: Consider Information Letter from External Auditors Regarding the
Fiscal Year 2012/13 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 2012/13 Audit
305
ffimROGERS, ANDERSON, MALODY& SCOTT, LLP
MRCERTIFIED PUBLIC ACCOUNTANTS,SINCE 1948
735 E. Carnegie Dr. Suite 100
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
April 23, 2013
PARTNERS
Brenda L. Odle,CPA,MST
Terry P. Shea.CPA The Honorable City Council
Kirk A.Franks,CPA City of Moorpark
Matthew B.Wilson,CPA,MSA Moorpark, California
Scott W. Marne,CPA
Leena Shanbhag,CPA.MST
Jay H.Zercher,CPA(Retired)
Phillip H.Waller.CPA(Retired) We are engaged to audit the financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information of
MANAGERS/STAFF
Nancy O'RaNerty,CPA,MBA the City of Moorpark (the City) for the year ended June 30, 2013.
Bradferd A.Welebir,CPA,MBA Professional standards require that we provide you with the following
Jenny Liu,CPA,MST information related to our audit. We would also appreciate the opportunity to
Katie L Millsom,CPA meet with you to discuss this information further since a two-way dialogue
Papa Matar Thiaw,CPA,MBA
Maya S. Ivanova,CPA.MBA can provide valuable information for the audit process.
William C Clayton,CPA
Peter E.Murray,CPA Our Responsibilities under U.S. Generally Accepted Auditing Standards
Genivive Schwarzkopf,CPA and OMB Circular A-133
Seong-Hyea Lee,CPA,MBA
Charles De Simoni,CPA
As stated in our engagement letter dated April 23, 2013, 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.
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 federate program in order to
MEMBERS determine our auditing procedures for the purpose of expressing our opinion
American Institute of on compliance and to test and report on internal control over compliance in
Certified Public Accountants accordance with OMB Circular A-133.
PCPS The AICPA Alliance
for CPA Firms
Governmental Audit
Quality Center
California Society of
Certified Public Accountants
STABILITY. ACCURACY. TRUST. 306
The Honorable City Council April 23, 2013
City of Moorpark Page 2
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 determination of financial statement amounts. However, providing an
opinion on compliance with those provisions is not an objective of our audit. Also in accordance
with OMB Circular A-133, we will examine, on a test basis, evidence about the City's
compliance with the types of compliance requirements described in the U.S. Office of
Management and Budget (OMB) Circular A-133 Compliance Supplement applicable to each of
its major federal programs for the purpose of expressing an opinion on the City's compliance
with those requirements. While our audit will provide a reasonable basis for our opinion, it will
not provide a legal determination on the City's compliance with those requirements.
1. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute,
assurance that the financial statements are free of material misstatement.
2. We are responsible for communicating significant matters related to the audit that are, in
our professional judgment, relevant to your responsibilities in overseeing the financial
reporting process. However, we are not required to design procedures specifically to
identify such matters.
Other Information in Documents Containing Audited Financial Statements
The City currently issues a Comprehensive Annual Financial Report (CAFR) which contains
certain required supplementary information such as Management's Discussion and Analysis,
the PERS schedule of funding progress and budget vs. actual comparisons for the general fund
and each major special revenue fund. Our responsibility for the supplementary information
accompanying the financial statements, 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. The CAFR will also include various
budget vs. actual comparison schedules. This information will be subjected to the auditing
procedures applied in the audit of the basic financial statements.
Also included in the CAFR, will be a statistical section containing certain statistical data as
required by the Government Finance Officers Association. The above mentioned statistical
information will not be subjected to the auditing procedures applied in our audit of the financial
statements and our audit report will disclaim our opinion on the data.
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.
307
The Honorable City Council April 23, 2013
City of Moorpark Page 3
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 24, 2013.
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
Terry a, CPA
308