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HomeMy WebLinkAboutAgenda Bill 5.D-Attch3 05/17/2004ryti1 d �G ° /1C p Externa l Auditor Interview Presentation of the Firm April 23, 2004 C&L Caporicci & Larson. Certified Public Accountants Presentation to the, City of Petaluma. Apriil23, 2004 Contents f • ✓ The Firm ✓ Approach to the Audit ✓ GASB 34 ✓ No Fee Services ✓ Conclusion P -ate 1 5 D I1 Caporicci & Larson, Certified Public, Accountants . Presentation to the City of Petalunia , April 23, 2004 i . Overview of the Firm Brief History ✓ Caporicci & Larson (C &L) established in 1989 ✓ Statewide auditing, tax, and business advisory practice servicing governmental agencies and private sector'businesses j ✓ Five Partners - with over 100 years of combined experience ✓ Forty -six professional.staff ✓ Offices located in Oakland, .Costa Mesa, San Diego, and Sacramento Who We Are A focused group of technically' competent professionals who: 1. maintain a flexible approach to the audit process 2. meet or exceed required tirneframes and expectations 3. provide assistance ® 4. grow with each engagement 5. value your relationship Where We're at 'Today • Quality reputation • Quality clients • Excellent group of people at all levels • Good working environment ✓ High employee morale ✓ Clients appear to like us (contract extensions continue) ✓ Excellent administrative, support functions Where We're Going ✓ Increase our Client. portfolio with medium to large Clients f ✓ Expand "added value" Services ✓ Increase Client commitment to the Firm ✓ Enhance capabilities of all Firm personnel ✓ Obtain a leadership role in our market E ! ✓ Achieve a dominate market position Caporicci & Larson, Certified P rblic.Accountants Page 1 Presentation to the City of Petaluma E Apri123, 2004 Overview of the Firm, Continued The Firm's partners and professional staff assigned to the City have performed audits, accounting services and consulting services for numerous entities including, but not limited to: Governmental Entities City of Menlo Park City of Hercules j City of San Mateo City of San Bruno Town of Atherton Town of Danville City of Brisbane City of Fremont City of Sunnyvale City of Fairfield City of Santa Cruz City of Richmond City of Claremont City of Huntington Beach City of Pleasanton City of Sanger • City of San Diego City of Orange City of Walnut Creek County of Del Norte City of Pittsburg County of Modoc ; + i City of Eureka City of Chula Vista City of Corona City of Avalon I City of Hermosa Beach City of Cypress City of Vallejo City of Clayton City of Ventura City of Saratoga City of Ridgecrest City of Rocklin City of'Vacaville City of Redondo Beach City of Ceres City of, Brawley City of Oceanside City of :Camarillo City of Los Altos f , � In addition to the above listed audits, the Firm has also audited redevelopment agencies, public financing authorities, housing authorities, single audits, child development programs, senior nutrition programs, transportation authorities, special districts, OCJP grants, health care, selfr insurance pools joint power authorities, TOT audits, and franchise audits. The Firm has also. issued numerous "comfort letters' on bond offerings as well as performed special projects of `various types. r� Caporicci & Larson, Certified Public Accountants Page 2 Presentation to the City -of Petaluma April 23, 2004 Core 'Values of the Firm Client Oriented Values ✓ Provide quality, excellent and timely professional services ✓ Meet or exceed all promises and commitments made to clients ✓ Identify opportunities that will benefit our clients . ;• Personnel Oriented Values ✓ Hire and retain quality people ✓ Develop Firm personnel through quality training programs and on- the -job experience ✓ Maintain an atmosphere where people want to come to work on a daily basis Firm Oriented Values ✓ Generate an appropriate profit ✓ Enhance the Firm's reputation through associations with quality endeavors !and participation in professional activities ✓ Be recognized as experts ✓ Retain a focused'but`flexible approach in our business dealings ✓ Provide tools to all personnel that will enable them to work effectively and efficiently Caporicci & Larson, Certified. Public Accountants Page 3 Pgesentation to the City of Petaluma April 23, 2004 Firm's Ethical Standards I • I I ✓ Maintain the client's and general public's trust ✓ Protect the, Firm's reputation ✓ Tolerate.no improprieties ✓ Communicate in. a,straight forward and honest manner ✓ Support an environment of mutual respect ✓ Comply with applicable laws, regulations and standards ✓ Promote sound financial practices ✓ Foster an environment supportive of open communication, sharing of information, and ensuring equal opportunities for all personnel Caporicci & Larson, Certified Public Accountants Page 4 Presentation to the City of Petaluma 0 Apri.l 23, 2004 f Approach to the Audit Team: Nasi Raissian, CPA, MBA, Engagement, Partner Gary A Caporicci, CPA, CGFM, Technical' Partner Ahmed Badawi, CPA-, Manager Jessica Wu, (Senior) Brian Kelly (Professional Staff) Eva Kjoss (Professional Staff) Systems evaluations. Internal control analysis Compliance verification Account balance validations Reconciliations and account analysis Analytical' reviews Implementation of accounting and auditing :standards Financial reporting Results: Comprehensive Evaluation of' Systems and'Controls Efficient Validation Process Development of Recommendations 'to, Management Timely Performance Minimal Disruption to City Operations .j 0 1 Objectives: Caporicci '& Larson, Certified Ptiblic Accountants Page 5 Presentation to the City- of Petaluma Apri123, 2004 i� 1 Approach to the Audit, Continued Phase I - Initial Meetings rt i ✓ Partners and Manager will meet with City Management: Develop contact relationships Perform preliminary reviews of major systems Develop understanding of City's operational environment Perform an in -depth review of the City's financial statements Create a list of schedules which we would like to have available at interim and year -end Identify areas to focus audit efforts Finalize timing ✓ Hold official exit conference with City Management Phase II - Review Systems, Processes, and Compliance ✓ Conduct reviews of the City's systems: Review of Policies and Procedures Manuals Walk - through of major systems o Cash Disbursements Accounts Payable • Cash Receipts / Accounts Receivable , Payroll o Fixed Assets i I o Other Systems o Budgeting • General Ledger and Financial Reporting Flowcharting of processes V Testing of transactions for each system ➢ Review of 'findings Development of a fist of "observations to be presented to City. Management ✓ Conduct an evaluation of compliance: Review of process Review of significant documents F Testing of compliance with terms and conditions Review of findings Development of a list of observations to be presented to City Management ✓ Hold official exit conference with City Management Caporicci & Larson, Certified Public Accountants Page 6 Presentation to the City of Petaluma ' April'23, 2004 i Approach to the Audit, Continued J/ � ise III - Validate Account Balances at Year -End ✓ Perform validation work on sign ificant.areas of the financial statements: Cash and investments Debt Significant receivables Fixed assets Interfund transactions Deferred revenues Payroll liabilities Other significant liabilities Revenues and expenditures I • Fund equity reserves and designations i Retirement plans . Risk management and related liabilities ✓ Complete compliance testing j ✓ Hold official exit: conference with City Management Phase IV - Preparation of the Required Reports ✓ Development of the required auditors' reports, financial reports, compliance reports, and Management Letter'within the time frames required 4 Caporicci & Larson, Certified Public Accountants Page 7 I y Presentation 'to the City of Petaluma Apri1.23, 2004 C &L has assisted the following cities in their efforts to publish the 2003 CAFR in compliance with GASB 34: City of Menlo Park City of Fremont City of Ventura City of Placerville: City of San Diego City of Santa Cruz City of Redondo Beach City of Sunnyvale City of Brisbane Town of Danville City of Oceanside City of Chula Vista City of Vallejo City of Vista City of San Rafael City of Hermosa Beach City of Shafter City of Claremont City of Eureka City of Saratoga .City of Richmond City of Fairfield City of Corona City of San Leandro City of Hercules City of Camarillo City of Sanger In addition, Mr. Caporicci has been serving as instructor for the GFOA, GASB, and California Society of CPAs on GASB 34 training classes. He has also participated on numerous panels and seminar speaking assignments on the ,subject. Mr. Larson, a Senior Partner of the Firm, served on the GASB Advisory Committee for the creation of the 'Guide to Implementation of GASB Statement 34 and Related Pronouncements pubfished in February, 2002 and has also participated in seminar speaking assignments on GASB 34 implementation efforts. As you can see, we are sufficiently knowledgeable about: the requirements of GASB 34 and stand ready to assist the City in its efforts to comply with'its provisions. Caporicci & Larson, Certified PublicAccountants Page 8 'Presentation to the .City of Petaluma April-23,2004 f No Fee Services ✓20 Hours of additional services for each year of the engagement ✓` , /Ongoing routine miscellaneous advisory services /Periodic updates to City Management on recent developments in governmental accounting and reporting / C &L Newsletter V Phone Conversations Staff Training , /Performing the agreed upon procedures to review the GANN Appropriations Limit calculations , /Presentations to City Council and_ other Boards/ Committees i Caporicci & Larson, Certified;Public:Accountants Page 9 Presentation to the City of Petaluma ' April 23, 2004 Conclusion i Why Choose C &h ✓ We are: Focused Efficient Flexible We deliver whatwe promise ✓ We currently serve similar type engagements. All the people at C &L T AN YOU For allowing us to present our Firm i Caporicci & Larson, Certified Public Accountants Page 10 .C.,& Caporicci & Larson Certified. Public Accountants Gary M. Caporicci Certified Public Accountant Toll Free Ph: (877) 862 -2200 Ext. 129 Toll Free Fax: (866) 436-0927 E- mail: paporicd ®c- lcpa.com `' Caporicci & Larson Certified Public Accountants • Ahmed Badaw.i Toll Free Ph: (877) 862 -2200 Ext. 146 Toll Free Fax: (866) 436 -0927 t-mail:rabidawi@c-lcpa.com I C Caporicci .& (arson Certified Public Accountants { Masi Mssian Cettified Public Accountant Toll Free Ph: (877)862 -22oo Ext. 126 Toll Frei! Fax: ( 866) 436427 E maiL• nraissian®c Iepa.eom Caporicci &'Carson Certified - Public Accountants Jessica `Nu Toll Free Ph: (877)862- 2200' Ext. 144 Toll Free Fax: (866) 436.0927 E -mail: jwusc- Icpa.com •