HomeMy WebLinkAboutAGENDA REPORT 2012 0606 CC REG ITEM 10G ITEM 10.G.
City Council Meeting
MOORPARK CITY COUNCILt
AGENDA REPORT ACTION:
TO: Honorable City Council
FROM: Ron Ahlers, Finance Director l
DATE: May 15, 2012 (City Council meeting of June 6, 2012)
SUBJECT: Consider Letter from External Auditors Regarding the Fiscal Year
2011/12 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. We recently contracted with the firm of Rogers,
Anderson, Malody & Scott, LLP Certified Public Accountants (RAMS) for these services
for a five year period. The attached memo 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 memo 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 memo 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 memo is attached for your review.
FISCAL IMPACT
None.
STAFF RECOMMENDATION
Receive and file.
Attachment: RAMS Memo regarding the Fiscal Year 2011/12 Audit
205
®® ROGERS,ANDERSON, MALODY& SCOTT, LLP
®® CERTIFIED PUBLIC ACCOUNTANTS,SINCE 1948
RECEIVED
MAY 0 9 2012
735 E. Carnegie Dr.Suite 100 FINANCE J PAYROLL
San Bernardino,CA 92408
909 889 0871 T
909 889 5361 F May 1, 2012
ramscpa.net
PARTNERS City Council
Brenda L.Odle,CPA,MST City of Moorpark
Terry P. Shea,CPA Moorpark, California
Kirk A. Franks.CPA
Matthew B.Wilson,CPA,MSA
Scott W. Manno,CPA
Leena Shanbhag,CPA.MST We are engaged to audit the financial statements of the governmental
Jay H.Phillip H.Waller,Ile CPA ( (Reseed ) activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City of Moorpark and the Moorpark
MANAGERS/STAFF Redevelopment Agency (collectively the City) for the year ended June 30,
Nancy O'Rafferty,CPA,MBA 2012. Professional standards require that we provide you with the following
Bradferd A.Welebir,CPA,MBA information related to our audit. We would also appreciate the opportunity to
fenny Liu,CPA,MST meet with you to discuss this information further since a two-way dialogue
Katie L. Millsom,CPA y y g
Papa Matar Thiaw,CPA,MBA can provide valuable information for the audit process.
Maya S. Ivanova,CPA,MBA
Danielle E.Odgers,CPA Our Responsibilities under U.S. General/ Accepted Auditing Standards
William C.Clayton,CPA P y P 9
Peter E. Murray,CPA and OMB Circular A-133
Genivive Schwarzkopf,CPA
Megan Hackney,CPA As stated in our engagement letter dated May 1, 2012, our responsibility, as
Charles Lee.CPA,MBA described b professional standards, is to express opinions about whether
Charles De Simoni.CPA Y p p p
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 federal program in order to
determine our auditing procedures for the purpose of expressing our opinion
MEMBERS on compliance and to test and report on internal control over compliance in
American Institute of accordance with OMB Circular A-133.
Certified Public Accountants
PCPS The AICPA Alliance
for CPA Firms
Governmental Audit
Quality Center
California Society of
Certified Public Accountants
STABILITY. ACCURACY. TRUST. 206
City Council May 1, 2012
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.
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City Council May 1, 2012
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 communicate our
significant findings at the conclusion of the audit. 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 July 9, 2012 and issue our report on
approximately December 15, 2012.
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 P. hea, CPA
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