HomeMy WebLinkAboutAGENDA REPORT 2017 0621 CCSA REG ITEM 10F ITEM 10.F.
cl TY OF MOORPARK,CALIFORNitt.
City Cww.MCP Meting
MOORPARK CITY COUNCIL at_ o Ai -�0/7
AGENDA REPORT ACTON: , .
TO: Honorable City Council !' •
FROM: Ron Ahlers, Finance Director ,�
DATE: June 6, 2017 (City Council meeting of June 21, 2017)
SUBJECT: Consider Information Letter from External Auditors Regarding the
Fiscal Year 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 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 2016/17 Audit
112
' ` A- ROGERS, ANDERSON, MALODY& SCOTT, LLP
MS CERTIFIED',f=1j1BLiC Sl
735 E. Carnegie Dr.Suite 100
San Bernardino,CA 92408
909 889 087 1 T
909 889 5361 F June 5, 2017
ramscpa.net
PARTNERS To the Honorable City Council
Brenda L.Odle,CPA.MST City of Moorpark
Terry P. Shea,CPA
Kirk A. Franks,CPA 799 Moorpark Avenue
Scott W. Manno,CPA.CGMA Moorpark, California 93021
Leena Shanbhag,CPA. MST,CGMA
Bradferd A.Welebir,CPA,MBA,CGMA
Jay H. Zercher,CPA(Partner Emeritus) This letter is provided in connection with our engagement to audit the financial
Phillip H.Waller,CPA(Partner Emeritus) statements of the City of Moorpark(the City) as of and for the year ended June
MANAGERS/STAFF 30,2017: Professional standards require that we communicate with you certain
Jenny Liu,CPA.MST items including our responsibilities with regard to the financial statement audit
Seong-Hyea Lee,CPA,MBA and the planned scope and timing of our audits.
Charles De Simoni,CPA
Nathan Statham,CPA,MBA
Gardenya Duran,CPA Our Responsibilities
Brianna Schultz,CPA
Lisa Dongxue Guo,CPA,MSA As stated in our engagement letter dated June 5, 2017, we are responsible for
conducting our audits in accordance with auditing standards generally
accepted in the United States of America (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
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 audits do not relieve you or management of your respective
responsibilities
Our responsibility as it relates to the schedule of expenditures of federal
awards is to evaluate its presentation for the purpose of forming and
expressing opinions as to whether it is presented fairly in all material respects
MEMBERS in relation to the financial statements as a whole.
American Institute of
Certified Public Accountants
Our responsibility as it relates to the supplementary information, is to evaluate
PCPS The AICPA Alliance its presentation for the purpose of forming and expressing an opinion as to
for CPA Firms whether the information is fairly stated in all material respects in relation to the
Governmental Audit financial statements as a whole.
Quality Center
California Society of
Certified Public Accountants
113
STABILITY. ACCURACY. TRUST.
'b W
Our responsibility for the required supplementary 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 required supplementary information 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 City'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 City 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 June 5, 2017. 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.
Respectfully,
ROGERS, ANDERSON, MALODY & SCOTT, LLP
Terry Si , CPA, Partner
114