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Q and A for 2018-12 RFP for Audit ServicesCity of Rosemead response to Audit RFP questions Page 1 Q&A for 2018-12 Request for Proposals for Audit Services City of Rosemead response to questions April 18, 2018 1) How many years has the prior year audit firm been performing the audit? The previous auditor has been performing the audit for the City of Rosemead for 7 years. 2) Are they invited to bid again? The previous auditor is eligible to submit a proposal. 3) What was the prior year audit fee? 2016/17 City of Rosemead (includes GASB 68 audit adjustments prepared by auditor) $ 25,660 Successor Agency 5,625 Housing Corp 4,385 Single Audit Report 6,840 State Controller's Report 3,000 Grand Total $ 45,510 4) How many auditors did they have on-site for interim and year-end fieldwork, and for how many days/weeks? The audit team generally consisted of 3-4 staff members during interim fieldwork for 3 days and consisted of 4-5 staff members during the year-end fieldwork for one week. 5) Does the City prepare its CAFR or is the auditor responsible for preparation? The auditor prepares the CAFR. 6) If auditor prepares CAFR, please expand on how the City provides the auditor the information for preparation of CAFR? City of Rosemead response to Audit RFP questions Page 2 The City provides the trial balance to the auditor. The auditor develops the fund from scratch. 7) How many major programs are usually tested each year for the Single Audit? Typically one major program is tested each year. For 2017, CDBG was identified as a major program For 2016, Highway Safety and Improvement program was identified as a major program For 2015, CDBG and Highway Planning and Construction were identified as major programs For 2014, CDBG and Highway Planning and Construction were identified as major programs For 2013, CDBG was identified as a major program 8) Are there any new audit services requested in this RFP that were not included in the prior year fees? No 9) How many journal entries were proposed by the prior auditor and how many findings did they issue? The City provided 5 client proposed adjusting entries after the trial balance was provided to the auditor. The auditor proposed the GASB 68 entries. There were no findings issued. 10) Were there any significant deficiencies or material weaknesses identified by the prior auditors in the previous year? There were no deficiencies or material weaknesses identified. 11) Is the auditor or the City responsible for the GASB 68 journal entries? Yes, the previous audit firm included this service in the City fees. 12) Does the City have a finance or audit committee with which the audit firm met before or after fieldwork? No, the City does not currently have a finance or audit committee. 13) When will the City have the records available for the audit to meet the December 6 requirement? In the prior year, the year-end field work was scheduled the week of October 23, 2017. The City provided the trial balance to the auditor one week prior to field work. City of Rosemead response to Audit RFP questions Page 3 The City would like to start no later than the first week of October and receive a draft CAFR in mid-November, and a final CAFR by December 6 but this can be extended to mid- December. The City will provide the trial balance one week prior to field work and major audit schedules prior to the first day of field work. 14) Has there been turnover in City management during the past year? Yes, there has been turnover in City management. The City has a new City Manager, Assistant City Manager, Parks and Recreation Director, and City Clerk in the last year. 15) Has there been turnover in the accounting staff during the past year? No, there is no turnover in accounting staff. 16) What accounting software does the City use? Any plans for change? The City uses the Tyler Incode 10 accounting software and does not plan to change. 17) Were there any management letter comments from prior year? The City did not receive any management letter comments in the prior year. 18) Any known or suspected fraud? The City is not aware of any known or suspected fraud. 19) Does the City have any disagreement with the current firm? No, the City has worked well with the prior audit firm. 20) Does the City have the groupings for the financial statements? Yes, the City has the groupings for the financial statements. 21) What is the desired timeline for: a. Interim – 1st week of July b. Year end – no later than 1st week of October c. Draft Report – mid November d. Final Report – December 6 but this can be extended to mid-December 22) Who prepares the State Controller’s Report and submission? Auditor City of Rosemead response to Audit RFP questions Page 4 23) Has the City entered into major contracts, studies and/or started any projects in the current year that would not be reflected in the prior year financial statements? The City entered into maintenance contracts during the current year with different vendors; however, the majority of the costs were reflected in the prior year financial statements. 24) Is the City involved in any litigation not included in the prior year financial statements? The City entered into litigation with the Los Angeles County Metropolitan Transportation Authority relating to the 710 freeway.