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HomeMy WebLinkAboutMoss LevyCITY OF SAN LUIS OBISPO AUDIT PROPOSAL For Fiscal Years Ending June 30, 2019 -June 30, 2023 With Optional Fiscal Year Ending June 30, 2024 -June 30, 2026 Submitted By: Moss, Levy & Hartzheim LLP 2400 Professional Parkway, Suite 205 Santa Maria, CA 93455 Phone: 805.925.2579 Fax: 805.925.2147 Submitted On: April 9, 2019 Contact Person: Ronald A. Levy, CPA rlevy@mlhcpas.com CITY OF SAN LUIS OBISPO AUDIT PROPOSAL TABLE OF CONTENTS Letterof Transmittal .............................................................................................................................................................................. I Detailed Proposal: Licenseto Practice in Califomia ......................................................................................................................................................3 Independence...................................................................................................................................................................................3 Firm Qualifications and Experience ................................................................................................................................................3 Partner, Supervisory, and Staff Qualifications and Experience ......................................................................... ....3 ........................ Similar Engagements with Other Government Entities ....................................................................................................................4 SpecificAudit Approach .................................................................................................................................................................4 Total Maximum All-inclusive Price ................................................................................................................................................6 HourlyRates ...................................................................................................................................................................................6 Appendices: AppendixA —Peer Review ..............................................................................................................................................................7 AppendixB —Resumes ....................................................................................................................................................................9 Appendix C —Insurance Certificates .............................................................................................................................................13 Appendixll — lteferences ..............................................................................................................................................................15 AppendixE —Hours by Segment ..................................................................................................................................................16 Appendix F —Schedule of Professional Fees and Expenses .........................................................................................................17 Appendix G —Statement of Past Contract Disqualifications ........................................................................................................ l S Moss, Levy & Hartzheim LLP Certified Public Accountants Attention: Rico Pardo, Accounting Manager City of San Luis Obispo 990 Palm Street. San Luis Obispo, CA 93401 We are pleased to respond to the City of San Luis Obispo's (the City) Request for Proposal for independent auditing services. We have prepared our proposal to address each specification included in the City's Request for Proposal. After 61 years in public accounting and more than 41 years of performing nonprofit and local governmental audits, it is extremely gratifying to witness the continued growth of Moss, Levy & Hartzheim LLP. The firm has evolved from aone-person operation to a regional public accounting firm with offices in Beverly Hills, Santa Maria, and Culver City with clients throughout the State of California, as well as thirty-one other states. The audit will be conducted by staff out of the Santa Maria office. We and the entire staff are pleased with not only the continuing development of the firm, but also the progress and economic health of our clients. We understand that governmental accounting is a specialized industry with its own accounting standards and requirements and that is why we strive to constantly improve the quality of our professional services. This degree of dedication coupled with our ability to inform our clients of any new accounting and auditing issues is paramount to our success. We fee] that our size is such that we are large enough to provide a broad spectrum of services and experience backed by an in-house training program, professional development courses, and an extensive professional library, yet not so large as to become impersonal and rigid. Our informal style allows us to be flexible enough to complete our audits in a timely manner that is the most convenient for each client. Also, this style allows us to be more accessible to our clients when our clients have questions or concerns. It is our understanding that we will be responsible for expressing an opinion on the City's financial statements in conformity with accounting principles generally accepted in the United States of America. It is also our understanding that we will be responsible for issuing the following: 1. An auditor's opinion letter on the fair presentation of the financial statements of the City in accordance with auditing standards generally accepted in the United States of America. 2. A report on internal controls over financial reporting and on compliance and other matters based on an audit of the financial statements performed in accordance with government auditing standards. 3. An auditor's opinion letter on the fair presentation of the financial statements of the City's Whale Rock Commission joint venture in accordance with auditing standards generally accepted in the United States of America. 4. An in-relation-to report on the combining and individual fund financial statements and supporting schedules based on the auditing procedures applied during the audit of the general-purpose financial statements. 5. We will complete the City's Single Audit on the federal expenditures of grants in accordance with the U.S. Office of Management and Budget Grant Guidance/Super Circular. 6. We will communicate in a letter to the City Manager and Director of Finance any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure or accounting system, which could affect the City's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. 7. We will make immediate, written notification to the City Council, City Manager, City Attorney, and Accounting Manager of all irregularities and illegal acts or indications of illegal acts of which we become aware. ~. A report on compliance with the requirements of laws, regulations, contracts and grants applicable to major federal programs. ~. A report on internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs. 1 2400 Professional Parkway, Suite 205 Santa Maria, CA 93455 Tel 805.925.2579 Fax 805.925.2147 mlhcpas.com BEVERLY HILLS • CULVER CITY •SANTA MARIA 10. An opinion on compliance with the California Transportation Development Act, the California Code of Regulations and the San Luis Obispo Council of Governments for the Transit Fund and the TDA Fund. 11. We will perform agreed-upon procedures pertaining to the City's Appropriations Limit and render a letter annually. We will make all communications to the City as required by the audit standards under which the engagement is performed. Those communications include, but are not limited to: 1. The auditors' responsibility under auditing standards generally accepted in the United States of America. 2. Significant accounting policies. 3. Management judgment and accounting estimates. 4. Significant audit adjustments. 5. Other information in documents containing audited financial statements. 6. Disagreements with management. 7. Management consultation with other accountants. 8. Major issues discussed with management prior to retention. 9. Difficulties encountered in performing the audit. 10. Errors, irregularities, and illegal acts. All work papers and reports will be retained, at our expense, for a minimum of seven years (or the retention timeframe established by the professional standards, whichever is longer) unless the firm is notified in writing by the City of the need to extend the retention period. The work papers are subject to review by state and county agencies and other individuals designated by the City. Accordingly, the work papers will be made available upon request. In addition, we will respond to the reasonable inquiries of successor auditors and allow successor auditors to review work papers. All adjusting journal entries made by us will be discussed and explained to the designated personnel prior to recording. We will be available the month after the end of each quarter for quarterly meetings with Finance staff. If convenient for the City's staff, the approximate target dates for an audit would be as follows: 1. Preliminary audit entrance conference with staff —June 10 2. Detailed audit plan —June 17 3. Interim audit fieldwork —July 15- July 18 4. Year-end audit fieldwork —November 4-8 5. Exit conference with staff —November 8 6. Provide a draft of the Comprehensive Annual Financial Report, other reports and recommendations —December 15 7. Issue final audit report and management latter —within three days of the City's final approval of the financial statements 8. Present and discuss annual financial statements with City Council —Date of City's Choice Minimal assistance of the City's staff is required during the course of the audit, however, we ask that the City provide the following: cooperation in answering questions, requested audit confirmations, bank reconciliations, trial balance at June 30, 2019, detailed general ledger for the fiscal year, and other original documentation supporting amounts and disclosures in the financial statements. This proposal is a firm and irrevocable offer until June 12, 2019 Thank you for your consideration and please do not hesitate to contact the authorized representative listed below with any questions, problems, or concerns. Ronald A. Levy, CPA, Partner 2400 Professional Parkway, Ste. 205 Santa Maria CA 93455 (805)925-2579 Sincerely, Ronald A:`Levy, CPA CITY OF SAN LUIS OBISPO AUDIT PROPOSAL LICENSE TO PRACTICE IN CALIFORNIA Moss, Levy &Hartzheim LLP is a properly licensed certified public accounting firm in the State of California, license # 5863. All certified public accountants engaged in the audit of the City are licensed to practice in the State of California and have received at least the minimum number of continuing professional education hours required by the State Board of Accountancy to perform audits under professional standards. INDEPENDENCE Moss, Lery &Hartzheim LLP is independent of the City of San Luis Obispo, and its component units, as defined by auditing standards generally accepted in the United States of America and the U.S. General Accountability Office's Government Auditing Standards. FIRM QUALIFICATIONS AND EXPERIENCE Moss, Lery &Hartzheim LLP is a minority owned regional firm that performs audits of entities throughout the State of California. The firm cun•ently employs 31 professionals and has annual gross revenues between 5.0 and 5.5 million dollars. Eighty-four percent of the 31 total employees are women or belong to an ethnic minority. The firm has three offices in California: Beverly Hills, Santa Maria, and Culver City. The firm is in good standing with both the America Institute of Certified Public Accounts and the California Society of Certified Public Accountants. The audit work will be completed by staff from our Santa Maria office. The Santa Maria office is currently staffed by seven certified public accountants (five partners, two managers). In addition, the office employs three senior accountants, five staff accountants, and two administrators. The City will have one partner and one alternate partner assigned to the audit at all times. In addition, two other partners, one in a managerial role and one in a supervisory role, and one or two staff accountants will beassigned on afull-time basis to the audit from the Santa Maria office. The City of San Luis Obispo will also have a computer specialist assigned to the audit on a full-time basis. This individual assists the audit team in documenting the computer system internal control structure. Please see Appendix A -Peer Quality Review Report for a copy of our firm's most recent quality review report. Please see Appendix C —Insurance Certificate for a copy of our firm's most recent quality review report. PARTNER, SUPERVISORY, AND STAFF QUALIFICATIONS AND EXPERIENCE It is the firm's policy to have our partners involved in the management function of our audits. Having multiple partners involved in the engagement allows the City to receive immediate responses to questions about accounting and audit topics, concerns, and recommendations. Mr. Ronald Levy will be the partner in charge of the City's audit. Mr. Levy will have primary responsibility for the audit. Mr. Levy will be responsible for fmal review of the City's audit report and financial statements. Mr. Levy will also be responsible for addressing any questions or concerns that arise during the fiscal year. Mr. Craig Hartzheim will be the alternate partner assigned to the audit. As alternate partner, it is his responsibility to be familiar with the City, its staff, the audit, and any special problem areas of the City in the event that Mr. Levy is unavailable. Mr. Adam Guise will be the manager assigned to the audit. As the manager, Mr. Guise will oversee the day to day operations of the audit and will review all audit areas. Mr. Guise will be at the City for 100% of the fieldwork. He is a partner of the firm and performs in-house training for governmental auditing staff members and is in charge of keeping the firm updated on aspects of governmental accounting and auditing issues. CITY OF SAN LUIS OBISPO AUDIT PROPOSAL PARTNER, SUPERVISORY, AND STAFF QUALIFICATIONS AND EXPERIENCE- continued Mr. Alexander Hom will be the supervisor assigned to the audit. As the supervisor, it will be Mr. Hom's responsibility to help oversee the senior accountant and staff accountants, do reviews of the audit sections and to perform more difficult audit sections. Mr. David Ortiz will be the Information Technology Director assigned to the audit. Mr. Ortiz has extensive knowledge in auditing EDP functions. Mr. Ortiz will also perform the statistical sampling procedures for the audit and will document and test the internal control structure of the computer systems. In addition to the supervisory staff listed above, two staff accountants will be assigned to the audit. All staff accountants have degrees from accredited colleges or universities, have received in-house audit training, and at present have at least one year of auditing experience. All staff accountants will be directly supervised by the fieldwork supervising partner assigned to the audit at all times. All partners and staff members have worked on numerous engagements together. Consistently working together will provide the City with a knowledgeable and efficient audit team. The firm will maintain staff continuity on the engagement throughout the term of the contract, barring any terminations, illnesses, or other unforeseen circumstances. At the request of the City, any Moss, Levy &Hartzheim LLP employee assigned to the audit can be removed and replaced by another qualified employee. Moss, Levy &Hartzheim LLP has an advantage in that there is relatively low turnover in employees, as can be seen on individual resumes, and therefore the firm will not use the City as a training ground for its employees. Please see Appendix B -Resumes for each individual's resume. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES Please see Appendix D -References SPECIFIC AUDIT APPROACH The extent of our work will be what is required to enable us to express an opinion on the financial statements in accordance with: 1. AICPA Indz~stry Audit Guide for Local Governments, 2. AICPA Audit Standards, 3. Laws of the State of California, 4. Generally Accepted Accounting Principles, and 5. Our firm's own additional standards and procedures. The audit will be conducted in accordance with auditing standards generally accepted in the United States of America. The primary purpose of the audit is to express an opinion on the financial statements, and such an audit is subject to the inherent risk that material errors or fraud may exist and not be detected by us. If conditions are discovered which lead to the belief that material en•ors, defalcations, or fraud may exist, or if any other circumstances are encountered that require extended services, we will promptly advise the City. Our audit will begin when it is convenient for the City's staff. We estimate this date to be in July to perform audit planning and interim fieldwork. Upon acceptance of the audit proposal, the engagement partner or audit manager will contact your Accounting Manager to discuss the scope and timing of the annual audit, to review any accounting issues known at that time, to prepare audit confirmations, and to address any concerns or questions you may have about the impending audit. We will schedule approximately four days of interim work each fiscal year. We will put together narrative flow charts and other documentation of the internal control structure and of the major systems, such as revenue and cash receipts, purchasing and cash disbursements, payroll and personnel, inventory, properly and equipment, grant compliance, investment activities and the budget process. 4 CITY OF SAN LUIS OBISPO AUDIT PROPOSAL SPECIFIC AUDIT APPROACH —continued We will utilize the prior fiscal year's financial statements and our learned knowledge of your systems to determine materiality for the different audit sections. Each fiscal year, we will select a sample of transactions to determine to what extent the systems are functioning as described to us. The extent of our sample size will depend upon our assessment of the internal control structure. The selection of transactions for testing will be made using a combination ofrandom, systematic, and haphazard sampling techniques. We will identify the strength of the systems upon which we can rely in planning our substantive tests. Our internal control review will meet all the requirements of the AICPA Statement on Auditing Standards (SAS) No. 55, Consideration of the Internal Control Sb•ucture in a Financial StatementAz~dit, as amended by SAS Nos. 78 and 99, Consideration of Fraud in a Financial Statement Audit. We will also perform preliminary analytical review procedures using the prior fiscal year's audited financial statements. We will also review the following documents in order to determine compliance with laws and regulations: (a) Minutes of the City Council with special attention to: indications of new income sources, including state and local grants; expenditure authorizations and related disbursements, including any special or restrictive provisions; authorization for bank or other debt incurred; awards to successful bidders; authorization for new leases entered into; changes in licenses, fines or fees; and authorization for significant new employees hired, (b) New agreements and amendments to new agreements including but not limited to: grant agreements; debt and lease agreements; labor agreements; joint venture agreements; and other miscellaneous agreements, (c) Administrative Code, and (d) Investment and/or Endowment Policies. The objective in testing transactions for compliance with laws, regulations, and the provisions of contracts and grant agreements is to express an opinion on whether the City has complied, in all material respects, with applicable compliance requirements, noncompliance with which could have a material effect on each major program. In selecting audit samples for purposes of tests of compliance, we will plan our tests to support a low assessed level of control risk. We will select transactions from each program or area that requires testing. The selection of transactions to test is based on the auditors' professional judgment. Our year-end audit fieldwork will begin after the City has closed its books which we anticipate will be in November. The fiscal year-end audit work will begin with an analytical review of all significant balance sheet and revenue and expense accounts, which includes a comparison of prior fiscal year financial statements and current fiscal year budget, to the fiscal year-end trial balance. The primary objective of the year-end audit work is to audit the final numbers that will appear in the City's financial statements. Our fieldwork includes procedures required under SAS No. 99, Consideration of Fraard in a Financial Statement Audit. We will also maintaïn compliance with SAS Nos. 103-112 during the fiscal year ended June 30, 2019. These procedures significantly changed the way auditors approach audits and are required for audits with a fiscal year ended beginning after December 31, 2006. This will entail a risk-based audit approach that will increase the time spent on audit planning. Standards also require interviews with audit committee members (if applicable), and/or members of the board of directors and management. We will also perform audit procedures such as: (a) Confirmations, by positive and negative circularization including but not limited to all cash and investment accounts; selected receivable and income balances; all bonds, loans, notes payable, and capital leases; all notes receivable; all insurance carriers; all legal fines contracted by the City; and other miscellaneous confirmations as deemed necessary, (b) Physical verifications and observations of assets, (c) Analysis and review of evidential material, (d) Interviews and investigative efforts, (e) Electronic data processing testing for computer and software reliability, and (f) Numerous other procedures as deemed necessary for audit completion. CITY OF SAN LUIS OBISPO AUDIT PROPOSAL SPECIFIC AUDIT APPROACH —continued SAS No. 99, Consideration of Fraud in a Financial Statement Azzdit, impacts both the planning and the performance of the audit. In planning, the audit team will discuss how and where the financial statements might be susceptible to material misstatement due to fraud. To determine this, we will inquire of management, consider results of analytical procedures, and consider other fraud risk factors. We will review the results of our inquiries and identification of potential fraud areas on a daily basis to ensure compliance with SAS No. 99. We have extensive knowledge in auditing computer systems. We have assisted numerous clients with the implementation ofaccounting software and database systems. This assistance has provided our firm with a thorough background in computer systems in both software applications, and auditing such systems. It is our policy to have a computer specialist as part of the audit team. This individual assists the audit team in documenting the computer system's internal control structure and highlighting strengths and weaknesses relating to the computer structure of the City. Moss, Levy & Hartzheim LLP uses networked laptop computers for audit fieldwork that connect to our office computer network via the Internet. Software used by our staff includes Word, Excel, PPC Engagement Manager, and AuditWare for financial statements preparation. The film employs a paperless audit approach. We will request the majority of the audit schedules and information electronically. As part of the audit, we will compose a management letter, informing you of required audit disclosures, and noting certain observations or recommendations that we feel will assist you in strengthening internal control, and/or gaining efficiency in conducting your daily operations. The management letter is intended to be a helpful tool for management based on our experience, and never a critique of operations or management. The management letter is provided to management in draft form, and is subject to revision and approval, prior to issuance. We will retain working papers and reports at our expense for a period of seven years. In addition, we will make our working papers available, upon your request, to any oversight City or successor auditor, if any. Please see Appendix E — Hozzrs by Segment TOTAL MAXIMUM ALL —INCLUSIVE PRICE Please see Appendix F—Schedule of Professional Fees and Expenses HOURLY RATES Audit Partner $135 Audit Manager $120 Audit Supervisor $105 Senior Auditor $95 Staff Auditor $85 Computer Specialist $60 Clerical $45 Respectfully submitted, Ronald .Levy, CPA Moss, Levy & Hartzheim LLP is an Equal Opportunity )Cmployer APPENDICES CITY OF SAN LUIS OBISPO APPENDIX A —PEER REVIEW ~_l~ssic (: . ( ~t.",~.II, C ~('; \ ll~::a.) ~ ~('~\1'!' ~ !. ;~ ~1-}~~1=:I:r ~_:l ~~...~:.I',C~' ~,....d..........»~ (••'nlríc(, t~..~pctlli.;ri(, (..~~~~. CI:1-11111.L: G~lif,l IC:M.\C('t.(~;,~~1'\NTS i:.:,.,,.rr,:,n:..r.a,i,, .,r.~ ~a:,r ,~:,.,,::~,:::~, ~.r.~~:r, ~: -~:,,.:, ::, r,:.~ t:,~, .:i c ~,a,r;..i ~i>:,~ i;, ,~,,,,::~t,.,t. System Review Report To the Partners of Moss, Levy & Hartzheim: LLP and the Peer Review Committee of the California Society of CPAs We have reviewed the system of quality control for the accounting and auditing practice of Moss, Levy & Hartzheim, LLP (the firm) in effect for the year ended .December 31, 2011. Our review was conducted in accordance with standards for Performing and Reporting on Peer .Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The Finn is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm 's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at ~int~}~,^aid rz.or~,/ rsurnrttarv. 1------~—p-----_— As required by the standards, engagements selected for review included. engagements performed under Covernrnent Au~litifig Slarrdardr and audits of employee benefit plans. We noted the following deficiencies during our review: Deficiency —The firm does not have quality control policies and procedures to address the form and content of workpaper documentation or a related file review process by the engagement partner for its audit engagements, includïng audits of employee benefit plans and audits subject to Govermnwat Auditing Standards. As a result, we noted documentation deficiencies on the engagements reviewed is the following areas: 1) compliance payroll testing for an ERISA audit engagement; 2) proper testing of certain major program compliance requirements, low risk determination and fraud considerations; 3) the 80 hour requirement for engagements perfa•med under Uover~rnren[ iludiling Slanclards was not met for certain engagement team members; and 4} lock down of audit files. The firm also did not pen`orn~ annual monitorúig that properly covered ali areas of quality control. There were dvcumentation issues noted in the firm 's previous peer review. The firm will perform the required procedures when subsequent engagements are performed, which is imminent. Recomme►rdcrtio~r — We recommend that the firm modify its current policies and procedures to include a mechanism for assuring the firni's documentation is properly prepared, reviewed and included in the work files. The firm should also expand on its monitoring procedures to cover these areas. -1~1'ï i,~Jisscur•i ~.uurl a I ;r.~llnih7i. (.~ ~ ~).?37~1 ® ~~.,~'. C1os 85-1'Ï ° far.ti~an,ls. ~,r~ ~-).:237~) I~;I,;ra~.;~u.• :i(: `)-ï ~a._18:i > ° I -~,~ ~JO~-TX~_2(?I.~ CITY OF SAN LUIS OBISPO APPENDIX A —PEER REVIEW Itt our opinion, except for the de[iciency described above, the system of quality control for the accounting and auditing practice of Moss. Levy ~Q: F(artzheim, LLt' in effect I'or the year ended December 3l, 2014, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Finns can receive a rating oPpass, pers,~ wil/r deficiency (ie,~j or .fnil. Moss, Levy & Hartr_heim, L(.:P has received a peer rc;view rating of puss irilh deficiencies. / ~ ~~~', ,~ J nnly zz, zo 1 s CITY OF SAN LUIS OBISPO APPENDIX B -RESUMES RONALD A. LEVY, CPA —PARTNER • California licensed CPA with 41 years of audit experience with governmental entities. • Partner in charge of all governmental audits, currently including 30 municipal audits, 29 school district audits, and 62 special district audits. • Has assisted governmental clients with year-end closings, key position interviews, preparation of award winning CAFRs, TDA audits, and preparation of State Controller's Reports. • Honored as CPA of the year (2006) by the Santa Barbara Chapter of the California Special Districts Association. • Has met or exceeded all continuing education requirements, including recent courses in: 2018, 2017, and 2016 Governmental Accounting Conferences 2018, 2017, and 2016 School Disb•ict Conferences GASB Statement No.34 Training Conference Compliance Auditing, Audit Sampling and Concluding the Audit Audits of State and Local Governments Governmental Accounting Update The Single Audit Act Auditor's Reports on Audits of Local Governments Planning a Governmental Audit Engagement • Member of the following: California Society of Municipal Finance Officers American Institute of Certified Public Accountants California Society of Certified Public Accountants California Association of School Business Officials Kíwanis Club • A Bachelor of Science degree from Oregon State University conferred in 1977. • Taught accounting courses at a branch of Laverne College and Chapman College. • Knowledgeable about all areas of tax law. CITY OF SAN LUIS OBISPO APPENDIX B -RESUMES CRAIG HARTZHEIM, CPA —PARTNER (ALTERNATE) • California licensed CPA with 30 years of audit experience with governmental, non-profit, and commercial entities. • Engagement partner for governmental and non-profit audits (Beverly Hills office), currently including 40 special district audits (including 'Los Angeles County Flood Control District and the County Sanitation District of Los Angeles County), 12 school districts and related audits, and 17 municipal audits. • Has assisted governmental clients with year-end closings, key position interviews, preparation of award winning CAFRs, and preparation of State Controller's Reports. • Has met or exceeded all continuing education requirements, including recent courses in the following: 2018, 2017, and 2016 Governmental Accounting Conferences 2018, 2017, and 2016 School District Conferences Audits of States and Local Governments Preparing Governmental Financial Statements GAAS Guide Other Comprehensive Basis ofAccozznting (OCBOA) Statements Azzdit Standards Update Implementing SAS No. 112 Implementing SAS No. 114 Auditing Update Grants Management • A Bachelor of Science degree in Accounting from Marquette University conferred in 1982. • Member of the following: American Institute of Certified Public Accountants California Society of Certified Public Accountants • Knowledgeable about all areas of tax law including non-profit and payroll tax issues. 10 CITY OF SAN LUIS OBISPO APPENDIX B -RESUMES ADAM GUISE, CPA —PARTNER (MANAGER) • California Licensed CPA with 12 years of audit experience with governmental, non-profit, and commercial entities. • A Bachelor of Science degree in Business Administration with concentrations in Public Accounting and Financial Management from California Polytechnic State University, San Luis Obispo. • Cun-ent audit manager for 7 cities, 4 school district audits, and 9 special districts. The city audits managed are: City of Goleta City of Paso Robles City of Arroyo Grande City of Buellton City of Grover Beach City of Ojai City of Greenfteld Has assisted governmental clients with year-end closings, preparation of award winning CAFRs, TDA audits, and preparation of State Controller's Reports. • Has met or exceeded all continuing education requirements, including recent courses in the following: 2018, 2017, and 2016 School Distrïct Conferences 2018, 2017, and 2016 Governmental Accounting Conferences Audits of State and Local Governments Single Audits of Governmental Entities Internal Control Over Governmental Financial Reporting Advanced Fraud Techniques California Ethics: Making Ethical Decisions in the Practice of Public Accounting • Previous work experience includes 2 years auditing publicly traded corporations with an international public accounting firm. 11 CITY OF SAN LUIS OBISPO APPENDIX B -RESUMES ALEXANDER HOM, CPA -PARTNER (SUPERVISOR) • California licensed CPA with 9 years of audit experience with governmental, non-profit, and commercial entities. • A Bachelor of Science degree in Business Administration with a concentration in Public Accounting from California Polytechnic State University, San Luis Obispo. • Audit manager for 9 school districts, 7 special districts, and 1 city, including the following audits: Santa Cruz Regional Transportation Commission Five Cities Fire Authority Vandenberg Community Services District Mosquito and Vector Management District Goleta Cemetery District • Supervisor for various cities managed by Adam Guise. • Has met or exceeded all continuing education requirements, including recent courses in the following: 2018, 2017, and 2016 Governmental Accounting Conferences 2018, 2017, and 2016 School District Conferences Audits of States and Local Governments Single Audits of Governmental Entities Internal Control and Fraud in Governmental and Nonprofit Entities California Ethics: Making Ethical Decisions in the Practice of Pz~blic Accounting • Member of the following: American Institute of Certified Public Accountants Calífornia Society of Certified Public Accountants • Has assisted governmental clients with year-end closings preparation of award winning CAFRs, and preparation of State Controller's Reports. DAVID ORTIZ -INFORMATION TECHNOLOGY DIRECTOR • Nineteen years of audit and computer experience with governmental entities. • A Bachelor of Science degree in Business Administratíon with a concentration in Public Accounting from California Polytechnic State University, San Luis Obispo. • Extensive knowledge of: Network design and implementation Network maintenance and troubleshooting Network security Microsoft, Mac, and Linux operating systems Database systems Various accounting programs 12 acoRO~ CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) ~i- 03/26!2019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. 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PRODUCER CONTACT NAME: RIC INSURANCE GENERAL AGENCY PO BOX 12279 SANTA ROSA, CA 95406 PHONE Fax A/C, No, Ext : 888 661-3936 AlC, No : 877 872-7604 E-MAIL ADDRESS: servlco.cantor Iravolars.com INSURERS) AFFORDING COVERAGE NAIC # (888) 661-3938 INSURER A :TRAVELERS PROPERTY CASUALTY COMPANY OF AM1tERICA INSURED MOSS,LEVY & HARTZHEIM,LLP INSURER B :TRAVELERS CASUALTY INSURANCE COMPANY OF AMERICA INSURERC: 5800 HANNUM AVE STE E INSURER D CULVER CITY, CA 90230 INSURER E INSURER F COVERAGES CERTIFICATE NUMBER: 490227155591180 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADD INSD SUER WVD POLICY NUMBER POLICY EFF MM/DD/YYYY POLICY EXP MM/DD/YYYY LIMITS g X COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR 03/05/2019 03/05/2020 $500 $1,000,000 DESCRIPTION OF OPERATIONS /LOCATIONS /VEHICLES (ACORD 101, Additional Romarks Schedule, may be attached If more space is required) CERTIFICATE HOLDER CANCELLATION MOSS,LEVY & HARTZHEIM,LLP SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE 5800 HANNUM AVE STE E THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN CULVER CITY, CA 90230 ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ~ //~ hl,q~ L ,~ -~~,~~ I~E[' i~l © 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD DECLARATIONS ACCOUNTANTS PROFESSIONAL LIABILITY POLICY POLICY NUMBER 275441996 PRODUCER BRANCH PREFIX 003613 970 ~tPL 1. Named Insured and Mailing Address Moss, Levy & Hartzheim, LLP 5800 Hannum Avenue #E Culver City, CA 90230-6680 INSURANCE IS PROVIDED BY CONTINENTAL CASUALTY COMPANY CNA PLA7J1, CHICAGO, IL 60685 A STOCK INSURANCE COMPANY REFERRED TO IN THIS POLICY AS WE, US, OR OUR. * `NOTICE * * ` THIS IS A CLAIMS-MADE AND REPORTED POLICY AND COVERS ONLY CLAIMS FIRST MADE AGAINST AN INSURED AND REPORTED IN WRITING TO THE COMPANY DURING THE POLICY PERIOD. PLEASE READ THIS POLICY CAREFULLY AND DISCUSS THE COVERAGE WITH YOUR INSURANCE AGENT. 2. POLICY PERIOD: FROM: 10/O1/18 TO 1 ~/~ 1 / 19 at 12:01 A.M. Standard time at your address shown above. 3. PRIOR ACTS DATE: NO PRIOR ACTS DATE LIMITATION APPLIES at 12:01 A.M. 4. DEDUCTIBLE: Per Claim Deductible or Aggregate Deductible $75, 000 5. LIMITS OF LIABILITY: (INCLUDES CLAIM EXPENSES UNLESS AMENDED BY ENDORSEMENT) $1, 000, 000 PER CLAIM $3,000,000 AGGREGATE 6. FOR NON-RENEWAL : days notice will be given you in accordance wifh policy conditions. 7. PRINTED ENDORSEMENTS ATTACHED AT POLICY ISSUANCE INCLUDE: G-127136-A{1/16) Policy G-127137-A(7/12) Declarations Page G-127157-A(ó/97) Nuclear Energy &Pollution Excl. G-127164-A04(ó/97) Amend, Termination Provisions - CA G-141584-A(ó/03) Policyholder Notice CNA90673XX-(11/17) Amend Limits of Liability Endorsement G-127152-AC(5/06) Claim Expenses Outside Limits - CA CNA69245XX Named Entity Exclusion CNA74066XX (07/13) Employee Theft Coverage CNA87510XX CPA NetProtect Endorsement G-127137-A{Ed.7/12) Page 1 CITY OF SAN LUIS OBISPO APPENDIX D -REFERENCES CITY OF SANTA MARIA Contact: Mary Harvey, (805) 925-0951 , mharvey a cityofsantamaria.org Administrative Services Director 110 E. Cook Street Santa Maria, CA 93454 Audited Years: 2005 -Present Engagement Partners: Ronald Levy Scope of Work: CAFR preparation, Single Audit, State Controller's Report, Street Report, and TDA Audit Audit Hours: 650 CITY Or GOLETA Contact: Luke Rioux, (805) 562-5508, Irioux a cityofgoleta.org Finance Director 130 Cremona Drive, Suite B Goleta, CA 93117 Audited Years: 2018 -Present Engagement Partners: Ronald Levy and Adam Guise Scope of Work: Financial statement preparation, State Controller's Report Audit Hours: 500 CITY OT PASO ROBLES Contact: Ryan Cornell, (805) 237-3999, rcornell@prcity.com Finance Manager 1000 Spring Street Paso Robles, CA 934446 _ Audited Years: 2007 -Present Engagement Partners: Ronald Levy and Adam Guise Scope of Work: CAFR preparation, Single Audit, State Controller's Report and TDA Audit, GPOA Award Audit Hours: 500 CITY Or ATASCADERO Contact: Jeri Rangel, (805) 461-5000, jrangel n atascadero.org Administrative Services Director 6500 Palma Ave Atascadero, CA 93422 Audited Years: 2009 -Present Engagement Partners: Ronald Levy and Travis Hole Scope of Work: Financial statement preparation, Single Audit, and TDA Audit Audit Hours: 450 CITY Or ARROYO GRANDE Contact: Shannon Esenwein, (805) 473-5400, sesenwein~arroyogrande.org Director of Administrative Services 300 E. Branch Street Arroyo Grande, CA 93420 Audited Years: 2004 -Present Engagement Partners: Ronald Levy and Adam Guise Scope of Work: CAFR preparation, Single Audit, State Controller's Report and TDA Audit Audit Hours: 400 15 CITY OF SAN LUIS OBISPO APPENDIX D-HOURS BY SEGMENT AUDIT SEGMENTS Planning Risk Assessment Quarterly Meeetings Audit Conferences Correspondence Review/Documentation of Internal Controls: Documentation of systems Testing of systems Year End Balances Testing Revenue and Expense/Expenditures Analysis (Analytical Procedures) Appropriation Limit Agreed Upon Procedures Single Audit Procedures TDA Procedures Whale Rock Procedures CAFR Review, and Findings GRAND TOTAL Estimated Hours (Per Year) Admin Staff Senior Supervisor Manager Partner Total l0 5 15 10 5 15 10 2 12 6 6 12 5 6 4 15 2 2 2 2 8 40 40 40 30 I50 50 45 50 45 2 192 7 4 3 4 18 2 2 I 1 6 3 21 23 13 12 4 76 3 10 15 IS 7 5 55 2 15 15 9 3 3 47 6 3 3 5 20 10 47 19 148 149 139 166 47 668 16 CITY OF SAN LUIS OBISPO APPENDIX F- SCHEDULE OF PROFESSIONAL FEES AND EXPENSES The undersigned declares that she or he has carefully examined this RFP, is thoroughly familiar with its content; is authorized to reprsent the proposing firm; and agrees to perform the specified work for the following cost quoted in full: Description FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 General purpose financial statements $ 50,350 $ 52,115 $ 53,940 $ 55,830 $ 57,785 TDA financial audit and compliance report 5,500 5,695 5,895 6,100 6,315 Single Audit Act report 7,450 7,715 7,985 8,265 8,555 Whale Rock Commission report 4,500 4,660 4,825 4,995 5,170 Gann Limit report 650 675 700 725 750 Total Costs $ 68,450 $ 70,860 $ 73,345 $ 75,915 $ 78,575 Firm Name and Address: Moss, Levy & Hartzheim LLP 2400 Professional Parkway Ste. 205 Contact: Ronald A, Levy CPA Phone: (805) 925-2579 Signature of Authorized Representative Date ~'~ ~' ~ i 17 STATEMENT OF PAST CONTRACT DISQUALIFICATIONS The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances. • Do you have any dísqua/ification as described in the above paragraph to dec/are? Yes No 3 If yes, exp/ain the circumstances. Executed on Agril 9, 2019 at Santa Maria, California under penalty of perjury of the laws of the State of California, that the foregoing is true and correct. Signature of Authorized Proposer Representative ~ ~' 18