HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 04/25/2017FIN A N C E A N D HUMA N RESO URC ES C O MMIT T EE
April 25, 2017 - 3:30 P M
31111 Greenspot Road, Highland C A 92346
AG E N D A
C A LL TO O RD ER
P LED G E O F A LLEG IA N C E
P UBLIC C O MMEN T S
N E W B U SI N E SS
1.Approve the March 28, 2017 Finance and Human Resources Standing Committee
Meeting Minutes
2.Discuss C ontract Award for Professional Auditing Services
3.Human Resources Update
AD J O U RN
P LEAS E NO T E:
P urs uant to G o vernment C ode S ectio n 54954.2(a), any reques t fo r a d is ability-related modific ation or
ac commod ation, inc luding auxiliary aid s o r s ervices , that is s o ught in ord er to participate in the ab o ve-
agendized pub lic meeting s hould be d irected to the District C lerk at (909) 885-4900 at leas t 72 ho urs prior
to said meeting.
Page 1 of 2
Minutes 2/28/17 etb
Subject to Approval
EAST VALLEY WATER DISTRICT February 28, 2017
FINANCE AND POLICY STANDING COMMITTEE MEETING
MINUTES
Ms. Bateman called the meeting to order at 3:30 p.m. and Director Smith led the flag
salute.
PRESENT: Directors: Morales, Smith
ABSENT: None
STAFF: John Mura, General Manager/CEO; Brian Tompkins, Chief Financial
Officer; Kerrie Bryan, Human Resources/Risk & Safety Manager;
Eileen Bateman, Sr. Administrative Assistant
GUEST(s): None
PUBLIC COMMENTS
Ms. Bateman declared the public participation section of the meeting open at 3:32 p.m.
There being no written or verbal comments, the public participation section was closed.
APPROVE THE JANUARY 24, 2017 FINANCE AND POLICY STANDING COMMITTEE
MEETING MINUTES
M/S/C (Morales-Smith) to approve the January 24, 2017 Finance and Policy
Standing Committee meeting minutes as submitted.
REVIEW DEBT MANAGEMENT POLICY UPDATE
The Chief Financial Officer provided detailed information regarding the updates for the
Debt Management Policy and reporting requirements set by the California Debt and
Investment Advisory Council, including the following: the purpose for which debt
proceeds may be used, the types of debt tha t may be issued, the integration of the new
debt with the issuers capital improvement program or budget, policy goals related to
the issuers planning goals and objectives and the internal controls that will ensure the
debt proceeds will be directed to the intended use.
The Chief Financial Officer addressed the concerns from the Committee regarding the
scope of work for District auditors and the standard rotation to review and update the
policy every 3-5 years.
Page 2 of 2
Minutes 2/28/17 etb
HUMAN RESOURCES UPDATE - CUSTOMER SERVICE RECRUITMENT UPDATE
The Human Resource/Risk and Safety Manager provided an overview of the District’s
recruitment process and provided an update for the current Water Production Operator
I Internal/Promotional position.
ADJOURN
The meeting adjourned at 4:26 p.m.
James Morales, Jr., David E. Smith,
Governing Board Member Governing Board Member
S TAF F R E P O RT
Agend a Item #2.
Meeting Date: Ap ril 25, 2017
Dis cus s ion Item
To: F I NANC E A ND HUMAN R ES O UR C ES C O MMI T T E E
F rom: C hief F inanc ial O fficer
Subject: Dis c us s C o ntract Award fo r P ro fes s io nal Aud iting S ervic es
R E C O MME N D AT IO N:
T his agenda item is p res ented for d is cus s ion.
B AC KG R OUN D / AN ALYS IS :
Attached for review b y the members o f the F inanc e and Human R es o urc es S tanding C ommittee (C o mmittee)
is a P ro p o s al fro m Vic enti, Lloyd & S tutzman, C PAs to provid e auditing s ervic es for the Dis tric t fo r the years
ended June 30, 2017, 2018, and 2019.
F o llo wing the January C ommittee meeting, s taff mo ved fo rward in solic iting p ro pos als from s ix area C PA
firms with s ignific ant experience in pro viding aud it and as s urance services fo r loc al governmental agenc ies .
S taff is p leas ed to rep o rt that all s ix provided proposals, includ ing the District’s most rec ent audit firm Van
Lant & F ankhanel, LLP.
After reviewing the tec hnical qualificatio ns, audit ap p roac h, and fee proposals of all six firms , staff is confident
in putting fo rward the firm of Vicenti, Llo yd & S tutzman C PAs (VL S ) to provid e audit s ervic es to the Dis tric t
fo r the next three years . A summary o f all the p ro p o s als rec eived is also inc lud ed in the agend a pac ket.
S taff wo uld like to commend the wo rk of Van Lant & F ankhanel over the las t s ix years , and to recognize their
contributions to ward the Dis tric t obtaining the G F O A C ertific ate o f Ac hievement for Excellenc e in F inanc ial
R ep o rting for the las t four years .
AG E N C Y ID E ALS AN D E N D E AVO R S :
Ideals and End eavor I I - Maintain An Environment C ommitted To Elevated P ublic S ervice
(E) - P ractice trans parent & acc o untable fis c al management
R E VIE W B Y OT HE R S :
T his agenda item has been reviewed b y the Adminis tratio n and F inance Departments .
F IS C AL IMPAC T :
T here is no fis c al impac t as s o ciated with this agenda item.
ATTAC H M EN TS:
Description Type
VL S P roposal Backup Material
Summary of P ro posals Backup Material
EAST VALLEY WATER DISTRICT
PROPOSAL TO PROVIDE
INDEPENDENT AUDIT SERVICES
for fiscal year ending June 30, 2017, 2018 and 2019
with an option to extend through 2021
Submitted: April 12, 2017
Presented by:
Renée S. Graves, CPA, CGFM
Partner
RGraves@vicenticpas.com
Extension 260
Leslie Ward, CPA
Senior Manager
LWard@vicenticpas.com
Extension 293
Vicenti, Lloyd & Stutzman LLP
2210 E. Route 66
Glendora, CA 91740
Tel: 626.857.7300
Fax: 626.857.7302
East Valley Water District i
EAST VALLEY WATER DISTRICT
PROPOSAL TO PROVIDE
INDEPENDENT AUDIT SERVICES
TABLE OF CONTENTS
Page
Letter of Transmittal .................................................................................................... 1-2
Audit Services .............................................................................................................. 3-6
Audit Approach & Philosophy ................................................................................ 3
Audit Work Plan .................................................................................................... 4-6
Auditor’s Staffing and Qualifications ......................................................................... 7-13
Statement of Independence .................................................................................. 7
Client Service Partner ........................................................................................... 7
Client Service Managers and Additional Staff Auditors .......................................... 8
Engagement Team Resumes ................................................................................ 9-13
Training in Key Issues Facing Government and Special Districts .......................... 14
Quality and Continuity of Staff ............................................................................... 14
Use of Technology by the Audit Team ................................................................... 14
License to Practice ................................................................................................ 14
Profile of Auditor .......................................................................................................... 15
Size and Structure of the Firm ............................................................................... 15
Firm Qualifications and Experience ....................................................................... 15
Range of Activities ................................................................................................. 15
Client References ......................................................................................................... 16
Assurances .................................................................................................................. 17-18
Insurance .............................................................................................................. 17
Warranties ............................................................................................................ 17
Indemnities ........................................................................................................... 17
Affirmative Action Policy ........................................................................................ 17
Release of Information .......................................................................................... 17
Peer Review ......................................................................................................... 17
Peer Review Documentation ................................................................................. 18
Audit Scope and Opinion ............................................................................................ 19
Understanding Your Needs ................................................................................... 19
Financial Audit .............................................................................................. 19
Uniform Guidance (formerly Single Audit) ..................................................... 19
Identification of Anticipated Potential Audit Issues ................................................ 19
Cost Bid ........................................................................................................................ 20-22
Estimate of Fees ................................................................................................... 20-21
Schedule of Professional Fees & Expenses – Audit Services ............................... 22
Sample Listing of Anticipated Schedules .................................................................. 23
Attachments
Affirmation and Authorization
April 12, 2017
Board of Directors
East Valley Water District
31111 Greenspot Road
Highland, CA 92346
RE: Request for Proposal to Provide Professional Auditing Services
Dear Board of Directors,
Thank you for considering Vicenti, Lloyd & Stutzman LLP (Vicenti) as your independent auditor. We
are delighted to respond to the East Valley Water District (District) Request for Proposal for Audit
Services for the fiscal years ending June 30, 2017, 2018 and 2019 with option to extend through June
30, 2021.
Vicenti has been serving governmental entities for over 30 years. Since we are independent of our
clients, our primary goal is to provide objective observations regarding their financial statements,
accounting controls, and financial reporting processes. We will work with the District in your efforts
to earn and maintain the trust of the communities that you service, special district and other partners,
and the public in a responsible and transparent manner.
We have read and understand the requirements listed in the Request for Proposal for Independent
Audit Services. This statement certifies that we acknowledge the various requirements listed and that
our professional licensing and standing meets all relevant standards. Please review our proposal as an
opportunity to learn more about the depth and breadth of our expertise.
We are committed to meeting your required timelines. Our goal is to properly plan the audit to
provide Management and the Board of Directors with the most current information.
We are qualified to meet the requirements of and to perform the scope of this engagement because of
our knowledge and expertise that we have developed in the special district and governmental arenas.
We are an established and financially solid firm with a strong presence in the San Gabriel Valley and
Inland Empire areas for more than 60 years. We work closely with our clients to help them understand
and adjust to the evolving accounting and regulatory changes in the industry.
East Valley Water District
Page 2
YOUR PRIMARY CONTACTS
The following personnel are authorized to make representations for Vicenti, and they are based out of
our office at 2210 E. Route 66, Glendora, CA 91740:
Renée S. Graves, CPA, CGFM 626-857-7300 Ext. 260 RGraves@vicenticpas.com
Leslie Ward, CPA 626-857-7300 Ext. 293 LWard@vicenticpas.com
While our technical expertise and depth of knowledge are extensive, our greatest strength lies in our
people. As the Client Service Partner of the Vicenti Audit Team, it is my promise to conduct a
comprehensive audit for the District with the utmost integrity and diligence. My active participation
during the audit ensures that issues are quickly communicated to the General Manager and disclosed
properly to the Board of Directors.
This proposal is a firm and irrevocable offer for at least one hundred eighty days from April 12, 2017.
If you have any questions or need further information, please feel free to call me anytime at the
telephone number above. I will be happy to discuss this proposal and our firm's qualifications with
you in a more personal manner.
Thank you very much for your consideration.
Sincerely,
Renée S. Graves, CPA, CGFM
Partner
East Valley Water District 3
AUDIT SERVICES
AUDIT APPROACH & PHILOSOPHY
We feel it is imperative that you have consistent contact with the appropriate experts from our firm.
Therefore, we assigned your engagement team based upon their experience and expertise. While
some CPA firms offer limited access to the partner assigned to a given client, we encourage regular
contact with the partner and senior associate assigned to serve you.
Our "strategic partner" concept includes the belief that our clients are best served when they have
developed relationships with more than just one person. We ensure that a partner and a manager are
assigned to each key client. This results in better planning and advising for you and also better
service since a back-up resource is available if the partner is on vacation or otherwise unable to
respond to your needs.
Similarly, we also assign top staff members to the job. Again, this provides co ntinuity of service
should one person be unavailable. It also means jobs can get done more quickly.
It is advantageous to maintain continuity in staff assigned to the audit from year to year from both
your standpoint and ours. The audit will go smoother as we will be familiar with your people and
accounting records. It is also cost effective as time on the job can be utilized for actually doing the
audit as opposed to learning your systems. This is advantageous to us, as well, as it helps us stay
within our time budget.
Staff turnover is to be expected in any business environment – both ours and yours. Our experience
in this area varies from year to year. While we cannot promise there will be no turnover on your
audit, we can assure you that every effort will be made to assign some of the same people from
year to year and, if necessary, to replace manager or supervisor level staff with individuals who
have already worked on your organization’s audit. We have never had an occasion where the entire
audit staff on an audit such as yours turned over between one year and the next. We understand
that some of our new clients experienced that with their prior auditors. An advantage of normal
staff turnover is it can bring a fresh look to your operations without the need to change audit firms.
While we stress consistency in personnel, we also will realize the n eed for periodic rotation of
personnel to ensure objective viewpoints. We discuss this with your management, Finance
Committee and/or Audit Committee to determine the appropriateness of rotation. Over the years
we will have several different top people assigned to your work. We believe this will result in a
fresh look at the audit and issues facing the East Valley Water District.
East Valley Water District 4
AUDIT SERVICES
AUDIT WORK PLAN
Estimated Hours
Time Partner/
Frame Engagement Activity Manager Supervisor Staff
June Entrance Conference 2 2
Initial briefing and meeting with management designed to
develop a reasonably comprehensive understanding of the
District and its operating environment. We will discuss year end
and interim work to be performed. We will also consider any
prior audit issues experienced by the District. A preliminary
listing of items to be prepared by management will be delivered,
based upon this activity.
July Internal Control Consideration, Documentation, and Assessment 3 5 8
We are required to consider the District’s internal control in
planning and performing the audit in accordance with generally
accepted audit standards. We will inquire of the District
personnel regarding the overall internal control structure;
specifically, controls over cash receipts, cash disbursements,
maintenance and operations, segregation of duties, and physical
safeguards to determine the extent of internal control reliance in
planning the audit.
We will use a variety of methods to gain and document our
understanding of your internal structure. These methods will
include a review of your internal policy and procedure manuals,
questionnaires, and development of narratives based on
interview with various staff members and/or walk-throughs of
transactions. In addition, to gain an understanding of the
District’s computer based information system, we employ
powerful audit software to prepare, organize, review, and share
working papers during the engagement.
Through the use of integrated trial balance database, we will
download data from your financial applications. We may utilize
data extraction software such as ACL, to perform data analytics
that are more meticulous than traditional auditing methods. We
will make every effort to take advantage of your systems to
make the audit as efficient and effective as possible.
July Preliminary Analytical Review 3 5
Analytical review procedures are applied to help the audit team
plan the nature, timing, and extent of other auditing procedures.
These procedures also enhance our understanding of the
transactions and events that occurred since the last audit date and
identify areas that may represent specific risk relevant to the
audit.
East Valley Water District 5
AUDIT SERVICES
AUDIT WORK PLAN (continued)
Estimated Hours
Time Partner/
Frame Engagement Activity Manager Supervisor Staff
Preliminary Analytical Review (continued)
Exact analytical procedures to be performed depend on the
volatility of account balances and the ability to develop
meaningful expectations. Some analytical procedures we expect
to perform are revenue potential calculations, ratio and analysis,
expenses per FTE, comparison to budget, etc.
July Audit Risk Assessment and Planning, UG Risk Analysis, 2 6 8
including Uniform Administrative Requirements
The audit team will consider audit risk, together with materiality,
to determine the nature, timing, and extent of audit procedures
and the evaluation of those procedures. We will prepare an
updated listing of items to be prepared by management as a
result of this activity.
We will also design the audit to provide reasonable assurance
that the financial statements are free of material misstatements
resulting from violations of laws and regulations that have a
direct and material effect on the financial statements.
We will review board minutes, agreements, contracts and other
correspondence to determine the laws and regulations subject to
audit testing. We will also interview management regarding laws
and regulations as management is ultimately responsible for
identifying government programs and understanding and
complying with the compliance requirements. If deemed
necessary, we will communicate with legal counsel or
government officials to gain an understanding of the laws and
regulations that have a direct and material effect on the financial
statements.
Throughout Consideration of Fraud 2 4 4
Auditing Standards require procedures that the audit team will use
to plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatements,
whether caused by error or fraud.
October Account Balance & Compliance Testing 16 16 42
The audit team will test specific accounts and compliance
requirements as they relate to the financial statements. We will use
appropriate methods of sample selections in our audit work. We
will also download the District’s final trial balances and integrate
evidential matter into our workpapers.
East Valley Water District 6
AUDIT SERVICES
AUDIT WORK PLAN (continued)
Estimated Hours
Time Partner/
Frame Engagement Activity Manager Supervisor Staff
Account Balance & Compliance Testing (continued)
Audit sampling technics for purposes of testing compliance will
depend on the results of our risk assessment and planning
procedures. We utilize both statistical and non-statistical sampling
based on our judgement, the level of reliability required and our
need to quantify sampling risks.
October Data Analysis & Final Analytical Review 2 6
These procedures are designed to help the audit team assess the
conclusions reached during the course of the audit and to evaluate
the overall financial statement presentation.
November Report Generation & Audit Exit Meeting 4 6 10
We will generate draft financial statements, any supplementary
schedules, and all required reports, including a draft management
letter. We will then initiate a field exit with management to
discuss remaining audit issues and present the draft financial
statements and management letter.
December Report Finalization & Presentation 4 4
We will finalize the audited financial statements and required
reports and present them to management and to the Board of
Directors.
Throughout Quality Control Review & Meetings with Management 8 4 4
Quality control review procedures occur throughout the audit
process and are designed to assure quality control and to identify
audit issues as they arise. We will also schedule various meetings
with management to discuss the audit or related matters.
Total Estimated Time By Level 46 58 76
Total Estimated Engagement Time Requirements 180
East Valley Water District 7
AUDITOR’S STAFFING AND QUALIFICATIONS
STATEMENT OF INDEPENDENCE
Vicenti and its members are independent of the District as defined by generally accepted auditing
standards and the U.S. General Accounting Office’s Government Auditing Standards. The firm has had
no professional relationships involving the District and its members for the past five (5) years and the
staff who will be assigned to do not constitute a conflict of interest relative to performing the proposed
audit.
CLIENT SERVICE PARTNER
Renée S. Graves, CPA, CGFM is a Partner of Vicenti. She has
over thirty years of experience planning, directing and
supervising audits of special districts, auxiliary and nonprofit
organizations, retirement communities, community college
districts, K-12 school districts, and charter schools in Southern
California. Renée provides consulting services as an interim CFO
and for year end closing and internal control reviews and
analyses. She conducts accounting workshops and addresses
organizations such as the California Association of School
Business Officials, the Association of Chief Business Officials,
and the California Society of CPAs, as well as conducting internal
workshops on the requirements of Proposition 39. She currently
serves on the California Board of Accountancy Peer Review
Oversight Committee, is a former member of the California State
Society of CPAs Accounting and Auditing Committee, and is a
former Director of the Cal Poly Accounting Alumni Association.
In addition to being a Certified Public Accountant, Renée is a
Certified Government Financial Manager. Renée leads an internal
committee that researches auditing standards for the purpose of
developing training for our staff and clients on changing
regulations. Through this committee, Vicenti provides early
notification of changing standards and provides training for and
assistance with the implementation of new standards. Renée has
served as Client Service Partner on several water agency and
community college audit engagements.
Client Service Partner - The Client Service Partner has the
responsibility for the overall performance of our personnel. To
ensure that this goal is achieved, she will closely monitor the
progress of the engagement, be available at all times to address any issues that senior staff on the
job might have, and also be available at all times to your organization's personnel to respond to
any questions or concerns.
We understand the need for consistency in staffing, availability and contact. Your needs are top
priority for us in scheduling and assigning staff, responding to requests, and researching special
situations. If a particular Audit In-Charge is desired and, according to availability, we will work to
accommodate your preference.
Partner-Led Teams
With Vicenti as your
auditor, you and your team
will have direct access to
the Client Service Partner,
who will be available at all
times to East Valley
Water District personnel
to respond to any
questions or concerns.
The Client Service Partner
is responsible for the
overall performance of our
personnel. They will
closely monitor the
progress of the
engagement and will be
available at all times to
address any issues that
senior staff on the job
might have. They will
review all sensitive or
material work performed by
Vicenti personnel.
For quick access,
call 626-857-7300:
Renée, Ext. 260
Partner Name, Ext. XXX
East Valley Water District 8
AUDITOR’S STAFFING AND QUALIFICATIONS
CLIENT SERVICE MANAGERS
Leslie Ward, CPA is a Senior Manager at Vicenti with concentration
in special districts and not-for-profit audit areas as well as
commercial enterprises. She has experience in auditing and
supervising audits of governments and non-profit organizations,
including financial and compliance audits of joint powers authorities,
water agencies, and other not-for-profit and commercial organizations.
Leslie will be responsible for the on-site progress of the engagement
and will supervise the staff members assigned. Leslie participates in
an internal committee that researches auditing standards for the
purpose of keeping our staff and clients informed of changing
regulations. Through this committee, Vicenti provides early
notification of changing standards and provides training for and
assistance with the implementation of new standards.
Jessie Wang, CPA, CGMA, CTIP is a Manager at Vicenti and will
participate in the audit procedures related to IT controls and
processes. As you can see from the attached resume, Jessie has the
experience, knowledge and skills to assist the audit team to ensure that
the Agency’s audit is of the highest quality and completed in
accordance with governmental standards.
ADDITIONAL STAFF AUDITORS
Daphne Liu, CPA is a Senior Associate with Vicenti specializing in
special districts, joint power authorities, K-12 and community
college districts. She has a thorough understanding of various
requirements including Federal and State compliance.
Haik Seropian is an Associate with Vicenti, specializing in special districts, joint power
authorities, charter schools and DMV agreed upon procedure engagements. Haik has also worked
for an agency in the water industry and brings both an internal and external experie nce and
knowledge to the engagements to which he is assigned.
Vicenti has invested hundreds of hours to develop effective, research -based direct instruction and
hands-on training for our auditors. Each staff accountant participates in 120 hours of audit -specific
training within the first two years of employment. Staff emerge with a solid knowledge base for
their assigned tasks, which reduces on-the-job training for a more cost-efficient audit. Drawing
from the remaining senior associates and associates wit h special district experience, the Client
Service Partner will assign the best-qualified individuals for the audit. Staff accountants are
responsible for the detailed testing of internal control and transactions under the supervision of the
senior manager.
All key personnel who participate in your engagement are Certified Public Accountants in the State
of California. Whenever you have a question or concern, please feel free to contact the Client
Service Partner, Client Service Manager or any member of the engagement team at any time. We
feel it is imperative that you have consistent contact with the partner and staff assigned to your
engagement. While some CPA firms offer clients limited access to their designated partners and
managers, at Vicenti we encourage regular contact.
Your Audit in
Capable Hands:
Managers and In-
Charge Auditors
The Vicenti Client
Service Manager
plays a key role in
planning the
engagement,
assessing internal
control, and evaluating
the results of many
audit steps.
The Auditor In-Charge
coordinates the audit,
monitors on-site
progress, and
supervises staff.
For quick access,
call 626-857-7300:
Leslie, Ext. 293
Jessie, Ext. 287
Daphne, Ext. 245
Haik, Ext 295
East Valley Water District 9
Renée S. Graves, CPA, CGFM
Partner
PRACTICE AREAS:
Audits
Business and Consulting Services
Internal Control Review and Analysis
Year-end Closing and Accounting-Related Issues
INDUSTRY EXPERTISE:
Governmental Entities
Special Districts
Community Colleges, including Bookstore Operations
Not-for-Profit Organizations
Foundations
Retirement Communities
School Districts
PROFESSIONAL BACKGROUND:
Joined Vicenti, Lloyd & Stutzman LLP in 1986; Named Partner in 1993
Frequent speaker at the California Society of Certified Public Accountants and the
California Association of School Business Officials
PROFESSIONAL AND COMMUNITY ACTIVITIES:
American Institute of Certified Public Accountants
California Society of Certified Public Accountants
California Board of Accountancy Peer Review Oversight Committee
LeadingAge of California
California Association of School Business Officials
Past Chair and Finance Chair, La Verne Chamber of Commerce
Past Chairperson, Community College Research and Development Committee
American Woman’s Society of Certified Public Accountants
2001 Alumni Inductee into the Cal Poly Accounting Hall of Fame
LICENSES:
Licensed to practice as a Certified Public Accountant in the State of California since July
of 1988
Received Certification as a Government Financial Manager in March of 1998
EDUCATION:
Bachelor of Science in Accounting, Cum Laude, California State Polytechnic University,
Pomona
PERSONAL:
Renée enjoys outdoor activities including boating and bike riding and is a raving fan of the UC
Davis Ultimate Club Frisbee and UC Davis Women’s Volleyball teams.
East Valley Water District 10
Leslie Ward, CPA
Senior Manager
PRACTICE AREAS:
Financial and Compliance Audits
Tax Exempt Organization Reporting
Business Service Consulting
INDUSTRY EXPERTISE:
Joint Powers Authorities
Not-for-Profit Organizations
Water Districts and other Special Districts
Charter Schools
PROFESSIONAL BACKGROUND:
Joined Vicenti, Lloyd & Stutzman LLP in 2010 as an Audit Services Manager
Basin Water Company, Financial Reporting and Compliance, 2006-2009
Suburban Water Systems, Financial Reporting and Compliance, 2003 -2006
PROFESSIONAL AND COMMUNITY ACTIVITIES:
American Institute of Certified Public Accountants
California Society of Certified Public Accountants
National Association of Professional Women
Governmental – Not-for-Profit Accounting and Auditing Issues
Vicenti Standards Committee
Volunteer and Supporter, American Cancer Society
LICENSE:
Licensed to practice as a Certified Public Accountant in the State of California since January
1988
EDUCATION:
Bachelor of Science in Business Administration with a major in Accounting, Cum Laude,
California State Polytechnic University, Pomona
PERSONAL:
Leslie enjoys walking, scrapbooking, reading, the theater, and spending time with her family.
East Valley Water District 11
Jessie Wang, CPA, CGMA, CITP
Manager
PRACTICE AREAS:
Financial and Compliance Audits
Governmental Auditing
Single Audits under Uniform Guidance
Proposition 39 Financial and Performance Audits
Attendance Accounting Consulting
Associated Student Body Workshops
Management Consulting
Business and Consulting Services
Internal Control Review and Analysis
Fraud Risk Assessments
INDUSTRY EXPERTISE:
K-12 School Districts
Colleges, Universities, and Community Colleges, including:
Associated Students, Inc. Foundations
Auxiliary Services Student Financial Aid
Bookstore Operations Student Unions
Food Services Grants & Federally Funded Programs
Not-for-Profit Organizations
Joint Power Authorities
Title Companies
Governmental Agencies
PROFESSIONAL BACKGROUND:
Joined Vicenti, Lloyd & Stutzman LLP in 2008; Promoted to Manager in 2014
PROFESSIONAL AND COMMUNITY ACTIVITIES:
American Institute of Certified Public Accountants
California Society of Certified Public Accountants
Vicenti CARE Committee Co-Chair
LICENSES:
Licensed to practice as a Certified Public Accountant in the State of California since
August of 2011
Certified Information Technology Professional
EDUCATION:
Bachelor of Science in Business Administration with an emphasis in Accounting,
California State Polytechnic University, Pomona
LANGUAGES:
Chinese (Mandarin & Cantonese)
PERSONAL:
Jessie enjoys traveling and spending time with family and friends.
East Valley Water District 12
Daphne Liu, CPA
Senior Associate
PRACTICE AREAS:
Financial and Compliance Audits
INDUSTRY EXPERTISE:
Special Districts
K-12 and Community College Districts
Proposition 39 Financial and Performance Audits
Joint Power Authorizes
Retirement Homes
PROFESSIONAL BACKGROUND:
Joined Vicenti, Lloyd & Stutzman in July 2015, Promoted to Senior Associate in 2017
Previously employed by Interhealth Corp. – PIH Health Hospital from June 2013 to July 2015
Previously employed by Lucky Transportation Inc. from September 2004 to March 2012
LICENSE:
Licensed to practice as a Certified Public Accountant in the State of California since 2016
EDUCATION:
Bachelor of Science in Finance and International Business, Simon Fraser University,
Vancouver, Canada – Simon Fraser University Open Scholarship
PERSONAL:
Daphne likes hiking and swimming, she also enjoys travel and spending time with her husband
and two children.
East Valley Water District 13
Haik Seropian
Associate
PRACTICE AREAS:
Financial and Compliance Audits
INDUSTRY EXPERTISE:
Community College Districts
K-12 School Districts
Joint Power Authorities
Community College Districts
Department of Motor Vehicle: International
Registration Plan Bonded Web User Program
PROFESSIONAL BACKGROUND:
Joined Vicenti, Lloyd & Stutzman LLP in January 2015
Victor Valley Wastewater Reclamation Authority June 2011- December 2014
EDUCATION:
Bachelor of Science in Business Administration with an emphasis in Accounting and a Minor
in Finance from California State University, San Bernardino, 2011
PERSONAL:
Haik enjoys weightlifting, hiking and food as well as photography and all types of music.
East Valley Water District 14
AUDITOR’S STAFFING AND QUALIFICATIONS
TRAINING IN KEY ISSUES FACING GOVERNMENT AND SPECIAL DISTRICTS
It is our duty to our clients to be well educated about the issues facing governmental industries. We
achieve this by participating in various organizations, such as the Association of California Water
Agencies (ACWA), California Utility Executive Management Association (CUEMA) and the
California Society of Municipal Finance Officers (CSMFO), and subscribing to several publications.
We are equally committed to keeping our professionals apprised of the latest technical developments in
the areas of audit, accounting, tax, and information systems. Every year, we attend education and
development courses that meet or exceed our profession’s standards. In order to perform quality and
efficient audits, our professionals obtain extensive training sessions in order to keep up to date with the
ever changing compliance requirements to ensure that our professionals possess the highest technical
knowledge. As a service to our clients, we distribute technical information updates as soon as we
become aware that a specific client will be affected by a new accounting pronouncement or tax law
change. We have an extensive reference library and Internet service capacity at our offices, and they are
available to our clients. In brief, we are able to help you deal with the multitude of significant issues
you and other districts face.
QUALITY AND CONTINUITY OF STAFF
Staff turnover is to be expected in any business environment – both ours and yours. Our experience in
this area varies from year to year. While we cannot promise there will be no turnover on your audit, we
can assure you that every effort will be made to assign some of the same people from year to ye ar and,
if necessary, to replace manager or supervisor level staff with individuals who have already worked on
your organization’s audit. Under our new audit team dedicated to the water and special district’s
industry, we have not had an occasion where the entire audit staff has turned over between one year and
the next. An advantage of normal staff turnover is it can bring a fresh look to your operations without
the need to change audit firms. While we stress consistency in personnel, we also will realize the need
for periodic rotation of personnel to ensure objective viewpoints. We will discuss this with your
management and/or Finance Committee to determine the appropriateness of rotation.
USE OF TECHNOLOGY BY THE AUDIT TEAM
At Vicenti, technology is an important component in providing better service to our clients. We
currently employ powerful audit software that helps us prepare, organize, review, and share working
papers during the engagement. Through the use of an integrated trial balance database, we are able to
download data from a client’s financial applications and generate draft financial statements.
We may utilize data extraction software to further
expedite the audit of East Valley Water District’s
systems to make the audit as efficient and effective as
possible. Manager Jessie Wang is a Certified
Information Technology Professional (CITP). This
credential is a specialty designation that identifies
CPAs with the unique ability to bridge between
business and technology while meeting the strict
requirements for a CPA license as well as additional training and experience in Emerging Trends, IT
Assurance and Risk, Business Solutions, Data Analytics and Security and Privacy. Additionally, all
professional staff are proficient in auditing computerized systems.
LICENSE TO PRACTICE
We are properly licensed as a Certified Public Accounting firm in the State of California and all key
professional staff are properly registered/licensed to practice in the State of California.
East Valley Water District 15
PROFILE OF AUDITOR
SIZE & STRUCTURE OF THE FIRM
In 1953, Vicenti, Lloyd & Stutzman (Vicenti) began the journey to build a team of exceptional
accounting professionals with rich experiences and dedication to a wide variety of organizations
throughout California. Since that time, we have helped water and government agencies throughout
Southern California ensure fiscal responsibility and meet regulatory compliance through responsible
and effective services in the areas of audit, accounting and tax.
We are a limited liability partnership
under the laws of the State of California
and have operated under the existing
name of Vicenti, Lloyd & Stutzman LLP
since 1966. We are properly licensed as a
Certified Public Accounting firm in the
State of California. We are a large, local
firm and currently have 63 employees
including one partner emeritus, nine
partners, six senior managers, five
managers, and other professional and
administrative staff. Our professional
staff includes 39 auditors with
governmental auditing experience. All
work is performed at our office
headquarters located at 2210 E. Route
66, Glendora, California 91740.
FIRM QUALIFICATIONS AND EXPERIENCE
Vicenti has earned an excellent reputation as a firm committed to providing top quality audit,
accounting, tax, and consulting services to our special district clients. The following is a partial listing
of water agencies and special districts we have served over the years.
■ Main San Gabriel Basin Watermaster ■ Pico Water District
■ City of Glendora Water Department ■ California Groundwater Coalition
■ Victor Valley Wastewater Reclamation ■ So. California Community College District JPA
■ Central Basin Water Association ■ San Gabriel Valley Protection Association
■ MERGE Risk Management ■ San Gabriel Valley Municipal Water District
■ Valley County Water District ■ California Schools Employee Benefit Assoc. JPA
■ Jurupa Community Service District ■ Metropolitan Employee Benefits Trust
■ Association of Groundwater Agencies ■ San Gabriel Valley Council of Governments
Vicenti continuously strives to help our clients be as successful as possible and make recommendations
to improve efficiencies. Our approach is management oriented and we are committed to complying with
all state and regulatory requirements. Communication is our highest priority, which is why we are
available all year round to address our clients’ needs. Vicenti is also fully qualified to advise you in the
areas of fraud detection, internal auditing, and governmental funding issues.
RANGE OF ACTIVITIES
We are recognized throughout the State of California as a leading special district and governmental
auditing firm. In addition to special districts, we specialize in audits of joint power authorities, school
districts and community colleges. Our auditors are all full-time employees and are staffed out of our
Glendora office. In addition to audits, our firm provides tax preparation and planning services, reviews
and compilations, and a variety of consulting services.
Vicenti Employees &
Governmental Experience
Total
Employees
by Level
Experienced
with
Regulatory
Audits
Partner Emeritus 1 1
Partners 9 8
Directors/Consultants 3 2
Senior Managers 6 5
Managers 5 4
Senior Associates and Associates 25 19
Administrative Staff 14 N/A
Total 63 39
CPAs 29 13
East Valley Water District 16
CLIENT REFERENCES
Vicenti has been serving governmental entities for over 30 years. The following are governmental clients
that we have provided similar services to in recent years. We have conducted audits on various water
districts, special districts and associations over the last five years. At the present time, we audit numerous
governmental entities that apply standards promulgated by GASB, and we have extensive experience
conducting audits that comply with OMB Uniform Administrative Requirements. Please feel free to
contact all references regarding Vicenti.
Audit Engagements:
California Schools Risk Management and
California Schools Employee Benefits Association
Javier Gonzalez, CFO Engagement partner: Renée S. Graves
1950 South Sunwest Lane, Suite 100 Scope of work: Audit of Financial Statements
San Bernardino, CA 92408 Total Hours: 400 – Years of Services: 10
Tel: 909.763.4900
Tel: 626-338-7301
Jurupa Community Services District
Cindy Mouser, Controller Engagement Partner: Renée S. Graves
11201 Harrel Street Scope of work: Audit of Financial Statements
Mira Loma, CA 91752 Total Hours: 300 – Years of Services: 3
Tel: 951-685-7434
San Gabriel Valley Municipal Water District
Darin Kasamoto, General Manager Engagement Partner: Renée S. Graves
1402 N. Vosburg Drive Scope of work: Audit of Financial Statements
Azusa, CA 91702 Total Hours: 130 –Years of Services: 2
Tel: 626-969-7911
Valley County Water District
Jandy Macias, Finance Manager Engagement Partner: Renée S. Graves
14521 Ramona Boulevard. Scope of work: Audit of Financial Statements
Baldwin Park, CA 91706 Total Hours: 115 –Years of Services: 2
MERGE Risk Management
Kristin Olafsson, Deputy Engagement partner: Renée S. Graves
Superintendent-Business Services Scope of work: Audit of Financial Statements
El Monte City School District Total Hours: 100 – Years of Services: 10
3540 N. Lexington Avenue
El Monte, CA 91731
Tel: 626.307-3400
LA County Schools Regionalized Business Services (COPs) Corporation
Gerald Yarbrough, Regionalized Engagement partner: Renée S. Graves
Business Services Coordinator Scope of work: Audit of Financial Statements
Business Advisory Services Total Hours: 80 – Years of Services: 20+
Los Angeles County Office of Education
9300 Imperial Highway
Downey, CA 90242
Tel: 562-922-6122
East Valley Water District 17
ASSURANCES
INSURANCE
We carry workers’ compensation, commercial general liability, commercial automobile liability, and
professional liability insurance. We shall provide a certificate of insurance upon your request.
WARRANTIES
Vicenti has obtained an errors and omissions insurance policy providing a prudent amount of coverage
for the willful or negligent acts of the firm and its officers, employees, and agents. We will not delegate
or subcontract our responsibilities under any agreement with you without your express prior written
consent. All information provided in response to this request for proposal is true and correct. We
acknowledge and agree with all of the terms and conditions stated in this request for proposal.
INDEMNITIES
Vicenti assumes all risk of injury to its employees, agents, and subcontractors, including loss of or
damage to property, and shall defend, indemnify, and hold harmless the District, its Board of Directors,
officers, employees, and agents from and against all claims, suits, or causes of action for injury to any
person or damage to any property arising out of, or connected with, performance of work under the
contract that does not result from the gross negligence or intentional misconduct of District, its Board of
Directors, officers, employees or agents.
AFFIRMATIVE ACTION POLICY
Vicenti does not discriminate against any employee or applicant for employment because of race, sex
(including pregnancy, childbirth, or related medical condition), creed, national origin, color, disability
as defined by law, disabled veteran status, Vietnam veteran status, religion, age, medical condition,
marital status, ancestry, or sexual orientation.
RELEASE OF INFORMATION
Vicenti will not publish or use any advertising, sales promotion, or publicity in matters relating to
services, equipment, products, reports, and material furnished by Vicenti in which the District name is
used, or its identity is implied, without prior written approval by District.
PEER REVIEW
Vicenti is a member of the Private Companies Practice Section
(PCPS) of the American Institute of Certified Public Accountants
(AICPA). Membership with the PCPS requires that an outside firm
conduct a peer review of our quality control procedures every thr ee
years.
Because of the volume of audits we conduct, reviews of Vicenti work always include educational and
governmental engagements. Most importantly, our peer reviews have always returned an unqualified
(“clean”) report and have never included disciplinary action. Our most recent peer inspection was
conducted in May 2016 and is attached for your review. You may also obtain a copy from our website
at www.vicenticpas.com/about/peer-review/. In addition, Partner Renée S. Graves is a member of the
California Board of Accountancy Peer Review Oversight Committee.
East Valley Water District 18
ASSURANCES
PEER REVIEW DOCUMENTATION
East Valley Water District 19
AUDIT SCOPE AND OPINION
UNDERSTANDING YOUR NEEDS
Financial Audit
We will audit the financial statements of the District for the fiscal years ending June 30, 2017, 2018 and
2019 with the option to extend through 2021. In addition, our audit will include the preparation and
filing of the related State Controller’s Report for all funds of the District, if required.
Our audit will be conducted in accordance with generally accepted auditing standards in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and other applicable laws and
regulations. To the extent applicable, our audit will meet the requirements of the Office of Management
and Budget (OMB) Uniform Administrative Requirements and the State Controller’s Minimum Audit
Requirements for California Special Districts.
We will evaluate the adequacy of the internal controls and accounting systems and, where weaknesses
are noted, make appropriate recommendations for improvements. We will submit a management letter
to include findings and recommendations, other instances of non-compliance with laws and regulations,
and significant deficiencies or material weaknesses if identified.
Vicenti will assist the District in providing more meaningful and concise financial statements by
seeking improved methods of reporting. We will be available on a day-to-day basis for consulting and
on-going auditing needs.
We will provide adjusting journal entries to the District to allow sufficient time to prepare the
Management’s Discussion and Analysis. Management is responsible for preparing the financial
statements, including footnotes, required supplementary information, and supplementary information.
We will assist management in preparing the financial statements and creating a print ready cohesive
document, but responsibility for the financial statements remains with management. We will review a
draft of the financial statements with management and will present the financial statements to the
Finance Committee and/or the Board of Directors, if requested.
If required, the annual report of the District’s financial transactions will be filed with the State
Controller within the required timeline and in the electronic format as prescribed by the State
Controller.
Uniform Guidance (formerly Single Audit)
The District will determine annually if Uniform Guidance procedures are required. At the District’s
discretion, we will perform the audit in accordance with the OMB Uniform Guidance. We will issue our
report on compliance with requirements that could have a direct and material effect on each major program
and on internal control over compliance in accordance with OMB Uniform Guidance. We will prepare the
Data Collection form required by OMB. A separate engagement letter and fee estimate will be prepared if
these services are required.
IDENTIFICATION OF ANTICIPATED POTENTIAL AUDIT ISSUES
While it is not our expectation to discover any “audit problems,” there are typically challenges th at we
encounter in connection with special district audits which require us to modify our approach
accordingly. An example of such issues includes ascertaining the extent of management oversight over
the accounting function. Special districts normally have a small accounting staff that precludes ideal
segregation of duties. Proper management oversight mitigates those internal control risks.
East Valley Water District 20
Vicenti Billing Policy
Fees for our professional
audit services are
proposed at a maximum
not-to-exceed figure.
COST BID
ESTIMATED FEES
Our audit fees will include assistance with the preparation of your
Management’s Discussion & Analysis as required by GASB 34 and
implementation of GASB 68, if applicable; telephone consultation
between our auditors and your staff during the normal course of the
audit; presentation of the audit to management and to the Board of
Directors, and availability to you to answer general questions
throughout the year. Following is our not-to-exceed fees for the fiscal
years ending June 30, 2017, 2018 and 2019, with the option to extend through 2021.
Out-of-Pocket expenses, including mileage at the current Internal Revenue Service rate will not exceed
$300.
Fee for Fiscal Year
REQUIRED ITEMS: 2016-2017 2017-2018 2018-2019
1. Financial Audit of THE DISTRICT $ 18,000 $ 18,500 $ 19,000
2. Separate financial review report for the North Fork
Water Company
$ 2,000 $ 2,200 $ 2,400
3. State Controller office Report and Submission $ 700 $ 750 $ 800
4. Travel Expenses $ 300 $ 300 $ 300
SUB-TOTAL REQUIRED ITEMS $ 21,000 $ 21,750 $ 22,500
OPTIONAL ITEMS:
A. Single audit examination of all federal grants $ 1,500 $ 1,500 $ 1,500
B. Compilation of the CAFR Document $ 1,000 $ 1,000 $ 1,000
C. Audit of Internal Controls (see * below) * * *
D. Continuing Disclosure Annual Report $ 1,000 $ 1,000 $ 1,000
SUB-TOTAL OPTIONAL ITEMS $ 3,500 $ 3,500 $ 3,500
GRAND TOTAL $ 24,500 $ 25,250 $ 26,000
*C. Fees to be determined based on agreed upon procedures and depth of internal control audit and
relevant report requirements.
East Valley Water District 21
COST BID
ESTIMATED FEES (continued)
Fee for optional
additional Fiscal Year
REQUIRED ITEMS: 2019-2020 2020-2021
1. Financial Audit of THE DISTRICT $ 19,500 $ 20,000
2. Separate financial review report for the North Fork
Water Company
$ 2,600 $ 2,800
3. State Controller office Report and Submission $ 850 $ 900
4. Travel Expenses $ 300 $ 300
SUB-TOTAL REQUIRED ITEMS $ 23,250 $ 24,000
OPTIONAL ITEMS:
A. Single audit examination of all federal grants $ 1,500 $ 1,500
B. Compilation of the CAFR Document $ 1,000 $ 1,000
C. Audit of Internal Controls (see * below) * *
D. Continuing Disclosure Annual Report $ 1,000 $ 1,000
SUB-TOTAL OPTIONAL ITEMS $ 3,500 $ 3,500
GRAND TOTAL $ 26,750 $ 27,500
*C. Fees to be determined based on agreed upon procedures and depth of internal control audit and
relevant report requirements.
Preparation of the comprehensive financial statements including all financial statements, footnotes,
required supplementary information, supplementary information and statistical information are the
responsibility of management. Management is also responsible for the implementation of new standards
issued by the Governmental Accounting Standards Board. We will provide reasonable assistance in the
preparation of the items noted herein, but any significant time needed to complete the financial
statements will be billed separately.
If the need for additional work comes to our attention, we will immediately bring this to your attention.
If you choose to have us perform the additional work, then such work will be performed at the above
hourly rates and set forth in an addendum to the contract between the District and Vicenti.
East Valley Water District 22
COST BID
SCHEDULE OF PROFESSIONAL FEES & EXPENSES – AUDIT SERVICES
Audit
Hours
Standard
Hourly
Rates
Total
Partner 12 $ 285 $ 3,420
Sr. Manager/Manager 34 210 7,140
Supervisory Staff 58 125 7,250
Staff 72 100 7,200
Clerical 4 45 180
180 $ 25,190
Professional Discount (4,190)
Maximum Audit Fee For Required Items $ 21,000
June 30, 2018 Maximum Audit Fee Required Items $ 21,750
June 30, 2019 Maximum Audit Fee Required Items $ 22,500
CONDITION OF RECORDS
The above not-to-exceed fees for audit services assume that your records are in adequate condition. We
have not estimated any time for additional services such as compiling financial statement balances or
reconciling supporting documentation.
The quoted fee is also dependent on all items requested at the pre-audit meeting being completed in the
format requested or in a mutually agreed upon format and uploaded to the Client Portal hosted by
Vicenti. The Governmental Accounting Standard Board (GASB) has issued various GASB Statements
with effective dates beginning in 2016-17 and thereafter. It is management’s responsibility to
implement the appropriate GASB Statements as they pertain to the District operations. We can provide
assistance with implementation of the new standards under a separate agreement , if the implementation
time is significant. An audit planning document will be provided to the District’s audit coordinator.
East Valley Water District 23
SAMPLE LIST OF ANTICIPATED SCHEDULES
The following is a sample listing of anticipated schedules that the District should already be preparing
and not require additional time. A request for information, schedules and documents for the audit will
be provided to the District audit coordinator at the pre-audit meeting. The proposed fee is based on all
requested items being uploaded to the District client portal hosted by Vicenti five business days prior to
the start of fieldwork and adequate internet access. Below are examples of items to be requested. We
will request that the District personnel gather invoices and documentation for us; we will give as much
notice as possible regarding such requests. In addition, it is imperative that key District personnel are
available during the scheduled fieldwork dates.
GENERAL AUDIT PACKAGE
Bank reconciliations for all bank accounts in all the District funds.
Reconciled schedule of investment activities by investment types, including investme nt income and
realized and unrealized gains and losses.
Detailed capital asset listing that includes equipment, buildings, land, construction in progress and
infrastructure.
Depreciation calculation, additions and deletions for all depreciable capital assets.
Schedule of capital lease payments indicating fund and account charged.
Final Accounts Receivable and Accounts Payable listing for all the District funds.
List of all law firms used by the District, including name and address, and the types of services
provided by each (i.e. negotiations, personnel, etc.).
Schedule of long term debt, including repayment schedules and interest rates
Schedule of accrued vacation liability at fiscal year end, showing detail by employee name,
hours/days accrued, pay rate, salary-related benefits and calculation of current portion of liability, if
applicable.
Schedule of retiree benefits liability. Please include details of plan, such as eligibility requirements,
number of plan participants, levels of coverage, amounts paid in current fiscal year and budgeted
for next year, etc.
Valuation report for CalPERS.
Actuarial report for other post-employment benefits.
Management's Discussion and Analysis.
Copies of relevant board policies, such as investment policies, fund balance commitments and
minimum reserve policies.
AFFIRM ATION AND AUTHORIZ ATION
Please sign and include this page with your proposal.
NAME OF BIDDER: Renée S. Graves
TITLE: Partner
FIRM NAME: Vicenti, Lloyd & Stutzman LLP
STREET ADDRESS: 2210 E. Route 66
CITY, ZIP: Glendora, CA 91740
FEDERAL TAX I.D.: 95-2242818
TELEPHONE NUMBER: (626) 857-7300
FAX NUMBER: (626) 857-7302
E-MAIL ADDRESS: RGraves@vicenticpas.com
The undersigned declares that he/she is authorized to enter into an agreement on behalf
of the above named Company.
Signature:
Professional Auditing Services
2017
Requirements:
Table of contents
Transmittal letter
State understanding of work to be done
Audit approacProposed timeline
Level of staff and # of hours
Sample sizes & techniques
Type & extent of analytical
Approach taken for laws & regs
Approach taken understanding IC
Approach in audit samples
List of people authorized to represent firm
Meet the Independence requirement of GAO
Firm local, national, or international
Location of the office & # of ee's at office
Range of activities performed by office
Five references
Most recent peer review
Scope of required services for Single Audit
Fee: 2016‐2017
2017‐2018
2018‐2019
total 3yr fee
District 24,000 20600 18,000 24,000 24,480 24,970
North Fork 2,200 2800 9,000 2,200 2,244 2,289
State Controller's Report 700 800 3,760 1,200 1,224 1,248
Travel ‐ 1,000 ‐ ‐ ‐
Single Audit (*1 prog) n/a 5,000 1,000 3,500 3,570 3,641
29,200 32,760 30,900 31,518 32,148
% +/‐ Dist, NFWC, State Controller's Report ‐10% 14% 2% 4% 6%
Hours District NFWC S/A District NFWC S/A District NFWC S/A
Partner 17 8 3
Manager 46 19 7
Senior/Supervisor 77 13 10
Staff 93 20 25
Total n/a 233 60 45 n/a
WVWD ‐ Treasurer OCWD ‐ GFOA Las Virgenes MWD ‐ GFOA
Fontana Union Water Co. ‐ Audit Coachella VWD ‐ GFOA Marina Coast WD ‐ GFOA
Riverside/Highland Water Co. ‐ Audit 3VMWD ‐ GFOA Casitas MWD ‐ GFOA
Big Bear MWD ‐ Audit & State Controller's Report IEUA ‐ GFOA Trabuco Canyon WD ‐ Audit
City of Oxnard ‐ CAFR Montery RWPollCtrl ‐ GFOA El Toro WD ‐ Audit
average hourly rate (District/NFWC/State Controller's Report) 108.04$ 104.98$ 114.17$
pg 20
31,760
31,760
31,760
95,280
pg 2
pg 14
pg 12
pg 12
24,200
pg 16
pg 19
24,200
24,200
pg 4
pg 6
pg 2
pg 21
pg 4
pg 4
pg 4
pg 2
pg 16pg 6
pg 14
pg 15
pg 16
pg 16
pg 16
pg 18
pg 6
pg 6
pg 5
pg 3
pg 15
pg 17
pg 16
224
The Pun Group
pg 2
pg 28
pg 29
pg 30
pg 30
pg 31
72,600
30
50
72
72
pg 17
pg 18
Lance, Soll & Lunghard, LLPEadie & Payne, LLP
pg 5
pg 20
pg 6
pg 26
27,400
27,948
pg 31
pg 30
missing
pg 3
pg 4
28,507
pg 4
83,855
*293
24
36
89
91
240
Page 1 of 2
Professional Auditing Services
2017
Requirements:
Table of contents
Transmittal letter
State understanding of work to be done
Audit approacProposed timeline
Level of staff and # of hours
Sample sizes & techniques
Type & extent of analytical
Approach taken for laws & regs
Approach taken understanding IC
Approach in audit samples
List of people authorized to represent firm
Meet the Independence requirement of GAO
Firm local, national, or international
Location of the office & # of ee's at office
Range of activities performed by office
Five references
Most recent peer review
Scope of required services for Single Audit
Fee: 2016‐2017
2017‐2018
2018‐2019
total 3yr fee
District 24,000 28,500 18,000 18,500 19,000 24,500
North Fork 2,200 3,500 2,000 2,200 2,400 2,200
State Controller's Report 700 1,800 700 750 800 800
Travel ‐ 300 300 300 ‐
Single Audit (*1 prog) n/a 3,500 1,500 1,500 1,500 3,000
37,300 22,500 23,250 24,000 30,500
% +/‐ Dist, NFWC, State Controller's Report 26%‐23%‐20%‐17% 2%
Hours District NFWC S/A District NFWC S/A District NFWC S/A
Partner 26 2 2
Manager 24 0 4
Senior/Supervisor 122 16 24
Staff 90 17 0
Total 262 35 30 n/a
Helix WD ‐ GFOA JCSD ‐ Audit / State Controller's Report Tehachapi‐Cummings CWD ‐ GFOA
Glendale W&P ‐ GFOA VCWD ‐ Audit / State Controller's Report Running Springs WD ‐ S/A
Yucaipa VWD ‐ S/A Pico WD ‐ Audit /State Controller's Report Temescal VWD ‐ Audit / State Controller's Report
Beaumont Cherry VWD ‐ Audit SGVMWD ‐ Audit / State Controller's Report City of Tehachapi ‐ S/A
MWD of OC ‐ S/A VVWR ‐ AUP (FEMA) City of San Clemente ‐ S/A
average hourly rate (District/NFWC/State Controller's Report) 113.80$ 115.00$ 144.74$
pg 25 pg 4‐6
pg 20 pg 4‐6
pg 24 pg 4
pg 23 pg 4
pg 15 pg 5
pg 24 pg 4
pg 24 pg 5
pg 35
27,500
65,250
22,500
21,750
21,000
101,400
33,800
33,800
33,800
pg 2
pg 2pg 7
pg 4pg 15
34
58
76
180
*297
82,500
27,500
27,500
pg 4pg 15
pg 4pg 15
pg 16 pg 16
pg 34 pg 18
pg 20 pg 19
Vavrinek, Trine, Day & Co. Vicenti, Lloyd & Stutzman, LLP
pg 21 pg 19
Van Lant & Fankhanel, LLP
pg 9
pg 12
pg 12
pg 10
190
pg 3
pg 5
pg 7
appendix a
pg 12
pg 10
pg 11
pg 9
appendix b
pg 3
pg 3
pg 10
12
Page 2 of 2