HomeMy WebLinkAboutAGENDA REPORT 2010 0707 CC REG ITEM 10C ITEM 10.C.
CITY OF MOORPARK,CALIFORNIA
City Council Meeting
MOORPARK CITY COUNCIL of x'1'020/0
AGENDA REPORT ACTION: ���, �•,-�
BY:
TO: Honorable City Council
FROM: Ron Ahlers, Finance Director "
DATE: June 11, 2010 (City Council meeting of July 7, 2010)
SUBJECT: Consider Letter from External Auditors Regarding the FY 2009/10
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 currently contract with the firm of Teaman,
Ramirez & Smith, Inc. Certified Public Accountants {TRS} for these services. 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: TRS Memo regarding the Fiscal Year 2009/10 Audit
232
TE
•' RS AMAN RAMIREZ 8 SMITH.INC
CEBt 0 PUBLIC A000JXIA4TS
June 3, 2010
City Council
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
We are engaged to audit the financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of City of Moorpark and the Moorpark
Redevelopment Agency for the year ending June 30, 2010. Professional standards require that we
provide you with the following information related to our audit. We would also encourage further
discussion regarding this information since a two-way dialogue can provide valuable information
for the audit process.
Our Responsibilities under U.S. Generally Accepted Auditing Standards and OMB Circular
A-133
As stated in our engagement letter dated March 3, 2010, 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 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.
As part of obtaining reasonable assurance about whether 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.
Other information included in documents containing audited financial statements such as
management's discussion and analysis and other required supplementary information is not a
required part of the basic financial statements but is supplementary information required by
accounting principles generally accepted in the United States of America. We will apply certain
Richard A. Teaman, CPA• Greg W Fankhanel, CPA• David M Ramirez, CFA• Javier H Carrillo. CPA
4201 Brockton Ave Suite 100. Riverside CA 92501 • 951.274.9500• 951.274.7828 x 9 www.trscpas.corn 233
limited procedures, which consist principally of inquiries of management regarding the methods of
measurement and presentation of the required supplementary information. However, we will not
audit the information and we will express no opinion on it.
Our audit will be conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory section and statistical
tables will be presented for purposes of additional analysis and are not a required part of the basic
financial statements. The introductory section and statistical tables will not be subjected to the
auditing procedures applied in the audit of the basic financial statements and we will express no
opinion on them.
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 communicate our significant
findings at the conclusion of the audit.
We expect to begin our preliminary audit on June 14, 2010 and issue our report in December 2010.
This information is intended solely for the use of the 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,
234