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Home My WebLink AboutAGENDA REPORT 2016 0601 CC REG ITEM 10E ITEM 10.E. CITY OF MOORPARK,CALIFORNIA City Council Meting of _ 4-/-a04, Act10N: -_ Qee ti! n,,./ aC . MOORPARK CITY COUNCIL AGENDA REPORT BY: 9/1 Sober.-- TO: Honorable City Council ,-, FROM: Ron Ahlers, Finance Director I� DATE: May 25, 2016 (City Council meeting of June 1, 2016) SUBJECT: Consider Information Letter from External Auditors Regarding the Fiscal Year 2015116 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, Melody & 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 2015/16 Audit 84 RROGERS,ANDERSON, MALODY& SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS,SINCE 1948 735 E.Carnegie Dr.Suite 100 May 25, 2016 San Bernardino,CA 92408 909 889 0871 T 909 889 5361 F ramscpa.net To the Honorable City Council City of Moorpark Moorpark, California 93021 PARTNERS • Brenda L.Odle,CPA,MST Terry P. Shea,CPA Kirk A Franks,CPA This letter is provided in connection with our engagement to audit the Scott W. Manno,CPA,CGMA financial statements of the City of Moorpark (City) as of and for the year Leena Shanbhag,CPA.MST.CGMA ended June 30, 2016. Professional standards require that we Bradferd A.Welebir,CPA,MBA.CGMA Jay H. Zercher,CPA(ParmerEmeritus) communicate with you certain items including our responsibilities with Phillip H. Waller,CPA(Partner Emeritus) regard to the financial statement audit and the planned scope and timing of our audit. MANAGERS/STAFF Jenny Liu,CPA,MST Seong-Hyea Lee,CPA MBA Our Responsibilities Charles De Simoni,CPA Nathan Statham,CPA.MBA As stated in our engagement letter dated May 25, 2016, we are Bngrtta sartha,CPA responsible for conductingour audit in accordance with auditing Gardenya Dunn,CPA p Juan Romero,CPA standards generally accepted in the United States of America (U.S. Ivan Gonzales,CPA MSA GAAS), Government Auditing Standards of the Comptroller General of Pascoe,CPA Daniel Hernandez,CPA MBA the United States of America, the requirements q g uits of the Single Audit Act, as Daniel Ryan Smith,CPA amended; and the provisions of the audit requirements of Title 2 U.S. • Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost. Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and any state or regulatory audit requirements for the purpose of forming and expressing an opinion about whether the financial statements that have been prepared by . management, with your oversight, are prepared, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility as it relates to the schedule of expenditures of federal awards, if applicable, is to evaluate its presentation for the purpose of forming and expressing an opinion as to whether it is presented fairly in all material respects in relation to the financial statements as a whole. MEMBERS American Institute of Certified Public Accountants Our responsibility as it relates to supplementary information, is to PCPS The AICPA Alliance evaluate its presentation for the purpose of forming and expressing an for CPA Firms opinion as to whether the information is fairly stated in all material Governmental Audit respects in relation to the financial statements as a whole. Quality Center California Society of Our responsibility for other information included in the document Certified Public Accountants containing the audited financial statements and our report thereon includes only the information identified in our report. We have no responsibility for determining whether the required supplementary information is properly stated. 85 STABILITY. ACCURACY. TRUST. Honorable City Council May 25, 2016 City of Moorpark Page 2 Our responsibility for other information included in the document containing the audited financial statements and our report thereon includes only the information identified in our report. We have no responsibility for determining whether the statistical section and the introductory section is properly stated. Planned Scope of the Audit Our audit will include 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 procedures will also include determining major federal programs and performing the applicable procedures described in the U.S. Office of Management and Budget OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the entity's major programs, if applicable. Our audit is designed to provide reasonable, but not absolute, assurance about whether the financial statements as a whole are free of material misstatement, whether due to error, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations. Because of this concept of reasonable assurance and because we will not examine all transactions, there is a risk that material misstatements may exist and not be detected by us. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements or material noncompliance may not be detected exists, even though the audit is properly planned and performed in accordance with U.S. GAAS, Government Auditing Standards of the Comptroller General of the United States of America, the requirements of the Single Audit Act, as amended; and the provisions of the Uniform Guidance. Our audit will include obtaining an understanding of the entity and its environment, including its internal control, sufficient to assess the risks of material misstatement of the financial statements and as a basis for designing the nature, timing, and extent of further audit procedures. Our audit is not designed to express an opinion or provide assurance on internal control over financial reporting. However, we will communicate to you at the conclusion of our audit, significant matters that are relevant to your responsibilities in overseeing the financial reporting process, including any material weaknesses, significant deficiencies, and violation of laws or regulations that come to our attention. We expect to begin our audit on approximately May 25, 2016. 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 information and 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 Sh , PA Partner 86