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HomeMy WebLinkAboutC04-350 Chadwick, Steinkirchner, Davis & Co. ~O~ #'3.}o'-.y / C'hadwick, Steinkirchn~_, ~avis & Co., P.c. ConsuLc....s and Certified Public Accountants .. October 29, 2004 Board of County Commissioners Eagle County, Colorado P.O. Box 850 Eagle, CO 81631 Dear Board: We are pleased to confirm our understanding of the services we are to provide Eagle County, Colorado for the year ended December 31,2004. We will audit the financial statements of Eagle County, Colorado as of and for the year ended December 31, 2004. Also, the document we submit to you will include the following additional information that will be subjected to the auditing procedures applied in our audit of the financial statements: 1. Schedule of expenditures of federal awards. . 2. Schedule of revenues and expenditures for roads, bridges and streets. The objective of our audit is the expression of an opinion as to whether the financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on. the fairness of the additional information referred to in the first paragraph when considered in relation to the financial statements taken as a whole. The objective also includes reporting on Eagle County, Colorado's compliance with laws and regulations and the provisions of contracts and grant agreements and its internal controls as required by the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Our audit will be conducted in accordance with U.S. generally accepted auditing standards; the standards for financial audits contained in Government Auditing StandJuds, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of OMB Circular A-133, and will include tests of the accounting records of Eagle County, Colorado and other procedures we consider necessary to enable us to express such an opinion and to render the required Single Audit reports. If our opinion on the financial statements or the Single Audit compliance opinion is other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to express an opinion, we may decline to express an opinion or may not issue a report as a result of this engagement. 225 North 5th Street, Suite 401 Grand Junction, CO 81501-2645 www.csdcpa.com e-mail info@csdcpa.com 970/245-3000 FAX 970/242-4716 TOLL FREE 877/245-8080 Chadwick, Steinkirchnel, Davis & Co., P.c. Consultants and Certified Public Accountants Eagle County, Colorado October 29, 2004 Page Two The management of Eagle County, Colorado is responsible for establishing and maintaining internal control. In fulfilling this responsibility, ~timates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that federal award programs are managed in compliance with applicable laws and regulations and the provisions of contracts and grant agreements. In planning and performing our audits, we will consider the internal control sufficient to plan the audit in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinions on Eagle County, Colorado's financial statements and on its compliance with requirements applicable to major programs. We will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. (Tests of controls are required only if control risk is assessed below the maximum level.) Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed. We will perform tests of controls, as required by OMB Circular A-133, to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements, applicable to each of Eagle County, Colorado's major federal award programs. Our tests will be less in scope than would be necessary to render an opinion on these controls and, accordingly, no opinion will be expressed. An audit is not d~igned to provide assurance on internal control or to identify reportable conditions. However, we will inform the governing body or audit committee of any matters involving inteinal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design Chadwick, Steinkirchne., Davis & Co., P.c. Consultants and Certified Public Accountants Eagle County, Colorado October 29, 2004 Page Three or operation of the internal control that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements . We will also inform you of any nonreportable conditions or other matters involving internal control, if any, as required by OMB Circular A-133. Identifying and ensuring that Eagle County, Colorado complies with laws, regulations, contracts, and agreements, including grant- agreements, is the responsibility of management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of Eagle County, Colorado's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Our audit will be conducted in accordance with the standards referred to in the second paragraph. OMB Circular A-133 requires that we plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. Our procedures will consist of the applicable procedures described in the OMB's compliance supplement. The purpose of these procedures will be to express an opinion on Eagle County, Colorado's compliance with requirements applicable to major programs. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. As required by Single Audit Act Amendments of 1996 and OMB Circular A-133, our audit will include test of transactions related to federal award programs for compliance with applicable laws and regulations and the provisions Chadwick, Steinkirc'hne.', Davis' ,& Co., P.C. Consultants and Certified Public Accountants Eagle County, Colorado October 29, 2004 Page Four of contracts and grant agreements'. Because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that a material misstatement may exist and not be detected by us. In addition, an audit is not designed to detect errors, fraud, or other illegal acts that are immaterial to the financial statements or to major programs. However, we will inform you of any material errors and any fraud that comes to our attention. We will also inform you of any other illegal acts that come to our attention, unless clearly inconsequential. We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged as auditors. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate ,accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. That responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting, the selection and application of accounting principles, and the safeguarding of assets. We understand that your employees will prepare all cash or other confirmations we request and will locate any invoices selected by us for testing. The workpapers for this engagement are the property of Chadwick, Steinkirchner, Davis & Co., p.e. and constitute confidential information. However, we may be requested to make certain workpapers available to federal and state agencies pursuant to authority giv~n to them by law or regulation. If requested, access to such workpapers will be provided under the supervision of Chadwick, Steinkirchner, Davis & Co., P.C. personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to them. The agency may intend or decide, to distribute the photocopies or information contained therein to others, including other governmental agencies. Chadwick, Steinkirchnl.,., Davis & Co., P. c. Consultants and Certified Public Accountants Eagle County, Colorado October 29, 2004 Page Five The Eagle County "Request For Proposal", dated September 13, 2000, and the "Proposal Form" as submitted by Chadwick, Steinkirchner, Davis & Co. are incorporated into this engagement letter in their entirety as additional terms and conditions of this engagement. Our billing for service rendered shall be based and issued as a result of completion of major activities as shown in the work plan which were developed based on section n. B. Audit Deadlines of the Request for Proposal Document. If you are in agreement with the terms of this letter, please sign one copy and return it for our files. We appreciate the opportunity to work with you. Very truly yours, CHADWICK, STEINKIRCHNER, DAVIS & Co. P.C. ~~~ T. Michael Nelson, CPA TMN:sas The foregoing letter fully describes our understanding and is accepted by us. EAGLE COUNTY, COLORADO ~~ ~'ffl.R.fJIJ~1 0 r ~e:>Aflij . I/'?-il~ Title o,c: [- ~() J1"y f! t' IJ?1l1Y/tS~/1JNL::> Date Eagle County, Colorado List of items to be prepared by client For interim work: 1. Board minutes for the year, through most recent meeting, including a list of resolutions and contracts. 2. We would like the confirmation letters prepared for all outstanding leases, bonds, selected revenues, and other items, which we may identify. 3. We will need the beginning and estimated ending numbers (for January 1, 2004 through November 30, 2(04) for warrants and payroll checks to be able to pull a sample. We will need these numbers by December 6, so that the sample can be selected and you will have sufficient time to gather and prepare the following: cancelled checks, invoices, and the general ledger marked to identify where the disbursement was posted. For payroll, we will need the cancelled checks, personnel files, any timecards, and the general ledger marked for tracing. 4. We will need documentation for all expenditures over $25,000, not related to payroll. 5. A list of capital outlay, which you intend to record as property, plant and equipment. Please provide the supporting documents for all disbursements $25,000 or greater for items added in 2004. 6. A snmmary of payments made on long-term debt. 7. A general ledger detail at November 30,2004. 8. Copies of supplemental appropriations to date. 9. Needed from Department of Social Services: a. All federal fund award documents (copies of contracts) 10. Major contracts, new federal funds, other than Social Services. 11. Treasurer's report for the first six months of the year. Eagle County, Colorado List of items to be prepared by client End of year field work: General 1. Financial Statements for December 31,2004. 2. Trial balances, with prior year balances, as prepared last year. Also, please coordinate getting this information from the Department of Social Services. We also need a year-to- date general ledger for the County and the Deparbnent of Social Services as of December 31,2004. 3. Please provide any correspondence from the State Auditor's Office or GFOA, particularly comments from previous audit reports, if received; any correspondence, of which you are aware, from federal or state agencies, related to the receipt of federal financial assistance and/or violations of laws or regulations. Cash and Investments 4. Please obtain from the Treasurer's office a Daily Cash Worksheet as of December 31, 2004 (or the last business day of the year.) Please obtain a copy of the Treasurer's report from the last six months of the year. 5. Please obtain from the Treasurer's office a bank: transfer schedule for the months of December, 2004 and January, 2005. 6. Please obtain from the Treasurer's office copies of all pertinent year-end bank: reconciliations accompanied by schedules of reconciling items. 7. Please print out a schedule of outstanding warrants as of December 31, 2004. Accounts Receivable 8. Detail listing of accounts receivable for each fund, including the supporting cash receipt for all receivables over $5,000. Prepaid Expenses and Inventory 9. Detail listing of prepaid expenses and inventory as of December 31,2004. Due to/from Accounts 10. A schedule of due to/from accounts. 11. Schedule of operating transfers between funds for the year. Eagle County, Colorado List of items to be prepared by client Capital Assets 12. Please complete a schedule of fixed assets with the corresponding depreciation schedule. Prepare the schedule to show beginning of the year balances, additions, dispositions and end of year balances by category. Include a detail list of asset additions that should agree in total with the additions shown on the schedule. Also include a detail of Qispositions for the year. The same should be done for the accumulated depreciation schedule. For dispositions, please indicate whether the item was traded-in, sold, or scrapped. If sold, indicate the proceeds. If traded-in identify the asset it was traded for. 13. Please provide the warrants and related invoices for additions greater than $25,000, not provided at the interim work. Accounts (Warrants) Payable. 14. Please prepare a detail listing of accounts payable as of December 31,. 2004. Please provide a copy of the warrant and the related invoice for amounts greater than $10,000; not related to payroll. Accrued Compensation 15. Please prepare a schedule that reflects each employee's vacation balance, comp time. hourly rate of pay, and accrued compensation balance. If accruals are made for sick leave include each employee's sick leave hours and the amount accrued. Other Accrued Expenses 16. Please obtain a schedule that shows projected landfill closure costs as of year-end. Long-term Debt 17. Please provide a schedule that shows the changes in long-term debt. Please include a warrant for payments on long-term debt that occurred during the year, not already provided at interim work. Leases 18. Please indicate whether the County entered into any leases during the year. If so, provide copies of the lease agreements, not already provided at interim work. Budget 19. Please prepare a budget reconciliation from the original adopted budget to the current adjusted budget (including all supplemental appropriations.) This schedule should agree to the budgets included in the general ledger. If they do not, we will need a reconciliation between the two. Please provide resolutions approving supplemental appropriations, if any. Eagle County, Colorado List of items to be prepared by client Federal Funds 20. Please provide a schedule of federal financial assistance for each fund. Along with the schedule please provide a query report on the state and federal revenue and expenditure codes. Please include the Department of Health and Human Services (Social Services) in this effort. We are particularly interested in what they have received and expended in the way of federal funds. Revenues, Costs and Expenses 21. A query report of all legal fees, professional fees and rent expense. Please provide all warrants (and the related invoices) paying legal and professional fees, upon our request. 22. Please identify the minimum pension contribution made in 2004 and the related covered payroll. 23. Please prepare a summarized revenue report, which shows revenue sorted by fund, department, line item and location. The report should reflect balances as of December 31, 2004 and December 31, 2003 and it should show the dollar amount of change from one year to the next for analytical review purposes. 24. Please prepare a snmmarized expenditure report, which shows expenditures sorted by fund, department, line item and location. The report should reflect balances as. of December 31, 2004 and December 31, 2003 and it should show the dollar amount of change from one year to the next for analytical review purposes. 25. Please reconcile the federal 941 reports to the general ledger salary accounts and have the 2004 W-2's and 1099s available for our review. 26. Please prepare the Highway Users Tax form for inclusion in the financial statements. Other items 27. Please provide the determination of major funds for GASB 34. 28. Please prepare the schedule of conduit debt of the County. 29. The Department of Social Services will need to prepare the information necessary for the financial statement footnote related to 100% reporting for the State. 30. Please provide audited financial statements for all component units not prepared by CSD & Co. 31. Please provide the December 31,2004 TABOR calculation, with supporting work papers. 32. Please provide the Management's Discussion and Analysis for the December 31, 2004 statements . Eagle County, Colorado List of items to be prepared by client 33. Please provide the 2004 "Off-site Road Improvement" listing of depc 34. Please provide the "Landfill Financial Assurance Requirements" ..L documentation for the year. 35, Please provide the "Lag Study and Analysis" for heaIth insurance: ended December 31,2004 (obtained from the administrator). 36. Please provide a listing of all resolutions for the year. 37. Please provide all quarterly reports for PFCs received for the year 38. Please provide the "Consolidated Cost Allocation Plan and Indirect C ---' BUDGET PURCHASING ACCOUNTING (970) 328-8620 SEP 2 9 2008 500 Broadway P.O. Rox 850 Eagle, Colorado R1631 Fax: (970) 32R-1233 fAGI.E COlJN'IY, COLORADO September 28, 2000 Mike Nelson Chadwick, Steinkirchner, Davis and CO., P.C. 22S North Sth Street, Suite 401 . Grand Junction, CO 81501-2655 Dear Mike: The Eagle County CommiS$ioners have made their decision from the four CPA firms we solicited for the 2000 tbrough 2004 Audit Services. Based on the bid pricing the County CormniRSioners have chosen to remain with Chadwick, Steinldrchner, Davis & CO., p .C. Please find attached a copy of a memo that smnmarizes the bid pricing for all solicited firms. . Should you have 8D:Y questions regarding the Comm;RRioners decision, please don't hesitate to contact me. Sincerely, k. ~~I ~ TLljse -~./ tl~tlll CHADWICK, STEINKIRCHNER, DAVIS & CO., P.C. Consultants and Certified Public Accountants September 13. 2000 Board of Commissioners Eagle County Eagle, Colorado Dear Commissioners: Thank you for inviting Chadwick, SteinkireImer, Davis & Co., P.C. to submit a proposal to serve the auditing needs of Eagle County . We are pleased to answer your request today with this letter and the attached materials. We propose to audit Eagle County's general purpose financial statements, supplemental information, and schedule of Expenditures of Federal A wards as of and for the year ended . December 31, 2000. Our audit will be made in accordance with generally accepted auditing standards, Government Audit Standards, issued by the Comptroller General of the United States, as they pertain to financial and compliance audits and provisions of the Office of Management and Budget Circular A-133, "Audits of States, Local Governments, and Non-Profit Organi7.ations", and will include tests of accounting data and procedures we consider necessary under the circumstances. Our audit will encompass all of the funds and ~unt groups of the County. Upon selection as your auditors, we will meet with you at your earliest convenience to arrange for preliminary work. At that time, we will also submit to you a definitive engagement letter. The field work for this audit will begin at a mutually agreed upon time, which will allow delivery of the initial report by the dates outlined in your RFP. We will review all proposed adjusting entries with the appropriate personnel before completion of field work. Audit workpapers are the property of Chadwick, Steinkirchner, Davis & Co., P.C. Copies of the audit workpapers will be made available to the County upon completion of the audit. When the audit is oomplete, we will a provide post-audit review for interested -personnel to discuss your accounting procedures and reconunend measures that might be employed to correct problems, if any, that we observed during the audit. We will report on the County's compliance with statutes and regulations. Any reportable conditions or material weaknesses in internal control encountered during the audit will immediately be communicated in writing to management of the County. We will make formal presentations of the highlights of the audit to the Board at your convenience. .. M6lnber 225 North 5th Street, Suite 401 Division for CPA Firms AICPA Grand Junction, CO 81501-2655 970/245-3000 . FAX 970/242-4716 · www.csdcpo.com · E-MAil info@csdcpo.com .11. Eagle County September 13, 2000 Page Two Some of the special benefits to the County by engagiilg Chadwick, Steinkirchner, Davis & Co., P.C. are as follows: I. We have over 30 years of experience with local governments in the state of Colorado. We also maintain a close working relationship with the State Auditor's Office. 2. . The .members of the Board can have peace of mind and complete assurance that this and future audits will be performed in a manner fully in accordance with legal requirements and standards of the accounting profession. Chadwick, Steinkirchner, Davis & Co., P.C. bas successfully withstood the intense scrutiny of their peers for the past 19 years by virtue of voluntary participation in the accounting profession's peer review program. Such participation demands that the flQll meet high standards of quality control in hiring, training and supervising professional staff. Our full time audit staff is very competent and experienced in the unique area of local government auditing and accounting. 3. The County can rely on a high quality source for continuing consultation throughout the year, even after the audits are concluded. Mr. T. Michael Nelson, CPA, a principal in the firm, is authorized to make representations for the finn. Mr. Nelson is the firm's director of audit services with a business address and telephone number at the following: 225 North Fifth Street, Suite 401 Grand Junction, CO 81501-2655 970-245-3000 All other principals as further outlined in this proposal are also authorized to represent the firm. Our fees for these seryices will be as shown on the "Proposal Form. It The firm and all members of our staff are independent of Eagle County and all of its related entities . We appreciate the opportunity to make this proposal. We want to continue to serve as your auditors and consultants and contribute to the success of the County in the cmDing years. We look forward to discussing these items along with any questions you may have about Chadwick, Steinkirchner, Davis & Co., P.C. L~) 1 ~ ~~.,?p.c( EAGLE COUNTY GOVERNMENT. COLORADO Request For Proposal Annual Audit Examination Of Financial Statements "PROPOSAL FORM" FIRM NAME: Chadwick, Steinkirchner, Davis & Co., P.c. MAILING ADDRESS: 225 North Fifth Street. Suite 401 Grand Junction CO 81501-2655 CONTACT PERSON: T. Mi rhae 1 Np-l Rnn TELEPHONE NUMBER: 970-245-3000 MAXIMUM FEES: TYPING. PRINTING. BINDING WITH WITHOUT COMPREHENSIVE ANNUAL FINANCIAL REPORT - $33.500 $32.000 SPECIAL REVIEWS At hourlv rates below Fees will be based upon the firm's standard hourly rates applied to the actual amount of time required to perform the work necessary under the circumstances. but in no event will I the total fee to the County be in excess of the amount shown above. Rate per hour for consulting" beyond audit requirements: Partner: $100 Man~ger: $ 90 Senior: ~ 61i Junior: $ 50 Clerical: $ 25 Other: It is certified that without exceeding the maximum fee shown above the audit examination will be completed and reports submitted within the scheduled dates requited in Eagle County's requestfor proposal. It is also recogniz~ that failure to meet the audit completion and report submlsslon.dates. without advance approval by the County. may result In a 10% reduction in fees payable and ineligibility In subsequ$nt years to perfonn audit examination for the County. SIGNATURE: ~~a~ ~ Name (Typed or Printed): T. Michael Nelson' TITLE (Typed or Printed): Princioal. Director of Audit Services DATE: Seotember 13.2000 NOTE: PLEASE BE CERTAIN TO ATTACH ALL INFORMATION IDENTIFIED IN THE REQUEST FOR PROPOSAL. 8 sep-14-00 OI:49P Chadwick Steinkirch 970 -42 4716 P.OI 1111 I 1IIII I I II II 1/111 III II 111111 II JIIIIII 1I11 III 11I111 111111~!l!llllJI~111111 II CHADWICK, STEINKlRCHNER, DAVIS & CO., P.C. Consultants and Certified Public Accountants September 14,2000 Board of County Commissioners EaaJe County, Colorado Supplement to the 2000 audit proposal It is our intent that the fees for the 4 years following the iDitial year wiD not chaDse. unless the circumstallces, u listed in your request for proposal. change. Therefore, we IDlicipate the fees to be: 2001 2002 2003 2004 533,500 533.500 $33.500 $33,500 Thank you for aIIowiDg us the opportunity to propose on your audit. Sincerely. s-.~~ T. Michael Nelson, CPA j 11 Momber 225 North 5th Street, Suite 401 DIvI.lon for CPA Firm. AICPA Grand Junction, CO 8150 1- 2655 970/245-3000 · FAX 970/242-4716 · www.csdcpa.com · E-MAIL infoocsdcpa.com