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HomeMy WebLinkAboutAGENDA REPORT 2017 0621 CCSA REG ITEM 10D ITEM 10.D. CITY OFMOORPARK,CALIFORNIA MOORPARK CITY COUNCIL City Council Meeting AGENDA REPORT ACTION: A. . TO: Honorable City Council Ear FROM: Ron Ahlers, Finance Director( DATE: June 6, 2017 (City Council meeting of June 21, 2017) SUBJECT: Consider Engagement Letter for City's Housing Assets Fund and Addendum to Annual Progress Report, Senate Bill 341 (SB341) from External Auditors for Fiscal Year (FY) 2016/17 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. Council recently extended the contract with RAMS to six years, which includes FY 2016-17. The attached letter specifies the performance of the audit in regards to: the audited financial statements for the City's Housing Assets Fund and Addendum to Annual Progress Report required by Senate Bill 341 (SB341). DISCUSSION Auditing standards (SAS 114) require that communications from the audit firm be sent to the governing board of the corporation. The attached engagement letter requires the signature of a City official. Staff recommends that the City Council authorize the City Manager to sign the engagement letter. FISCAL IMPACT The FY 2016/17 cost is a maximum of $7,000 for the audited financial statements for the City's Housing Assets Fund and Addendum to Annual Progress Report. This amount is included in the proposed budget for FY 2017/18. STAFF RECOMMENDATION Authorize the City Manager to sign the engagement letter, subject to the final language approval by the City Manager. Attachment: RAMS Engagement Letter for City's Housing Assets Fund and Addendum to Annual Progress Report required by Senate Bill 341 (SB341). 99 RA ROGERS, ANDERSON, MALODY&SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS•, SINCE 101 M S . June 5, 2017 735 E. Carnegie Dr.Suite 100 San Bernardino,CA 92408 To the Honorable City Council 909 889 0871 T City of Moorpark 909 889 5361 F 799 Moorpark Avenue ramscpa.net Moorpark, California 93021 PARTNERS We are pleased to confirm our understanding of the following audit and non-audit Brenda L.Odle,CPA,MST services we are to provide the City of Moorpark (the City), in addition to those agreed to Terry P.Shea,CPA in our engagement letter dated June 5, 2017: Kirk A. Franks,CPA Scott W.Manno,CPA.CGMA 1) Preparation of the City's Housing Assets Fund audited financial statements (an Leena Shanbhag,CPA. MST,CGMA audit service). Bradferd A.Welebir,CPA,MBA,CGMA Jay N.Letcher,CPA(Partner Emeritus) 2) Addendum to Annual Progress Report required by Senate Bill 341 (SB 341) (a Phillip H.Waller,CPA(Partner Emeritus) non-audit service). MANAGERS/STAFF Jenny Liu,CPA,MST We expect to begin these additional services on approximately June 5, 2017.Terry Shea, Seong-Hyea Lee,CPA,MBA CPA is the engagement partner and is responsible for supervising the engagement and Charles De Simoni,CPA signing the reports or authorizing another individual to sign them. Nathan Statham,CPA,MBA Gardenya Duran,CPA We estimate our fee for these additional services will be$4,000 for Addendum to Annual Brianna Schultz,CPA Progress Report and $3,000 for Preparation of the City's Housing Assets Fund Audited Lisa Dongxue Guo,CPA.MSA Financial Statements. All other provisions included in the original engagement letter dated June 5, 2017 also apply to these additional services. We appreciate the opportunity continue to be of service to the City and believe this letter accurately summarizes the additional services to be added to our original engagement. If you have any questions, please let us know. If you agree with the terms of the additional services as described in this letter, please sign the enclosed original and return it to us. Keep the copy for your records. In the event there is a conflict between the provisions of this Engagement Letter and the Professional Services Agreement between the City of Moorpark and the firm of Rogers, Anderson, Malody & Scott, LLP, dated April 19, 2012, the language contained in the Professional Services Agreement shall take precedence. Very truly yours, ROGERS,ANDERSON, MALODY& SCOTT, LLP MEMBERS American Institute of Certified Public Accountants PCPS The AICPA Alliance Terry She , CPA for CPA Firms Governmental Audit RESPONSE: Quality Center California Society of This letter correctly sets forth the understanding of the City of Moorpark. Certified Public Accountants By: Title: 100 Date: STABILITY. ACCURACY. TRUST.