The following questions and answers are being posted for all interested parties.
1. Were there any issues or concerns related to the current auditor, disagreements or timing or completion of the audit?
2. What were the audit fees for the 2012, 2013 & 2014 financial statement audits and the Single Audit, amount charged per program, if applicable? What were the out of pocket costs (mileage, hotel, meals, etc.) incurred in completion of the 2014 audit?
2012 2013 2014
Financial audit $ 10,500 $ 12,000 $ 11,000
Single Audit n/a included n/a
Out of pocket costs included included included
Total $ 10,500 $ 12,000 $ 11,000
3. Did the City have a 2014 Single Audit, if so, may we receive a copy as this is not on the City’s website?
A Single Audit was not required in 2014
4. How many auditors were on site for interim and year end fieldwork?
In recent years, either two or three auditors have been on site for year end fieldwork. No interim fieldwork has been performed in the past.
5. Is there flexibility for interim and year end field work timing?
Yes, there is some flexibility in the schedule.
6. Is your current auditor allowed to propose? How long has your current auditor been the City’s external auditor? Why is the City going out for RFP?
According to the AICPA criteria, the current independent accountant performed the audit for the past two years (2013, 2014). He was previously an employee of the firm that performed the audit from 2007 to 2012, although he was not assigned to this engagement during all those years.
The City is going out for RFP at the request of the newly formed Audit Committee and the City Council.
7. What can be improved in the current audit process?
Staff is satisfied with the current audit process but recognizes there is always room for improvement.
8. Did the City issue any new debt or refinance any old debt in 2015?
9. Do you anticipate any significant changes in federal funds to be tested in 2015 due to the implementation of the Supercircular? Has the City developed a plan to implement COSO as related to its internal controls in 2015?
No and No
10. Will there be any changes to the major funds (financial statements) in 2015?
There are no plans to change major funds at this time.
11. Is there any fraud we need to be aware of?
12. How many audit adjusting journal entries were proposed, posted or passed in the 2014 audit and may we have a copy?
There were no adjusting journal entries proposed, posted or identified and passed during the 2014 audit.
13. May we also have a copy of the management letter for 2014?
The auditor did not issue a management letter communicating Significant Deficiencies or Material Weaknesses. The required letter (AU-C 260) to “Those Charged With Governance at the Conclusion of an Audit” is attached.
14. Does the City prepare the CAFR, including notes and statistical section, or is this to be prepared by the external auditor?
Historically, the financial section (excluding MD&A), Required Supplementary Information and Other Supplementary Information (excluding the Local Highway Finance Report) were prepared by the external auditor. The Introductory and Statistical sections were new in 2014 and were prepared by staff. It would be staff’s preference to continue this practice.
15. Does the City prepare the SEFA and the notes to the SEFA?
When required, this has been prepared by the independent accountants.
16. Did the City receive the GFOA certificate for the 2014 CAFR, and is this the first year the City submitted a CAFR to receive the award?
2014 was the first year the City prepared additional sections to its annual financial statements working toward a CAFR. The statistical section is not complete, and the City did not submit its CAFR to receive a Certificate of Achievement for Excellence in Financial Reporting.
17. Are all of the accounting records in one centralized location? If not, how many locations exist that historically require auditor visits?
The majority of financial records are maintained at City Hall; however, some source documents for revenue billings are at other City locations including the swimming pool, event center, fire department, police department, public works, water plant and wastewater plant. Historically, the auditors have not visited locations other than City Hall.
18. Are there specific areas the City will need the external auditors assistance i.e., new pension standards (GASB 68), investments (GASB 72), etc?
Staff has completed continuing education courses to prepare for new standards.
19. How many City staff are in the finance department and how long have they worked in the finance department? Are there any licensed CPA’s in the department?
The finance department is comprised of the following positions (along with hire dates):
- Director of Finance & Administrative Services (January 2008)
- Senior Accountant (August 2012)
- Accountant I (February 2012 & previously from February 2008 – November 2010)
- Administrative Coordinator (March 2012)
Two first two members listed are active CPAs.
20. Will the Salida Natural Resource Development Corporation, not-for-profit Corporation, be considered as a potential component unit of the City and included in the 2015 CAFR? Are there any others that you will be considering blending or shown as discrete?
No entities are considered a component unit of the City of Salida.
21. Does the City complete the TABOR calculation for the auditors to review?
The City is de-bruced.
22. Does the City have an internal audit department? If so, are they available to help the external auditors or have they ever been utilized in the external audit process?
The City does not have an internal audit department.
23. The RFP indicates the City has an audit committee, who is on the audit committee and what role do they play in communicating with Council?
An audit committee was formed in February 2015. Three members of the City Council sit on the audit committee. Please see Ordinance 2015-01 for additional information about the role they play.
Does the City have written policy and procedures on key processes including internal controls– cash receipts, disbursements, payroll, purchasing (AP) etc?
25. Will the City be requiring additional services from the external auditors in 2015, if so, what services are anticipated to be requested?
No additional services are anticipated at this time.
26. Does the City perform Sales Tax audits during the year?
No. As a statutory city, sales tax is collected by the CO Department of Revenue. The City has, however, engaged an outside company to perform audits of the City’s occupation tax on lodging.