The URL can be used to link to this page

Home My WebLink About21 Workshop on Process to Select and Audit FirmAgendaItem#I21TRUCKEEDONNERPublicUtilityDistrictWORKSHOPTo:BoardofDirectorsFrom:ReginaWiseDate:June052019Subject:DiscussionoftheProcesstoSelectanAnnualAuditFirm1.WHYTHISMATTERISBEFORETHEBOARDTheauditorsareselectedbytheBoardofDirectorsandreporttotheBoardofDirectors.2.HISTORYDistrictCoderequirestheDistricttobeauditedannually.MossAdamshasbeenperformingtheDistrict’sannualfinancialauditssince2011.JulieDesimoneandKeithSimovichavebeenoverseeingtheauditandpresentingtheresultsandrecommendationstotheBoard.TheyhavevastexperienceinutilityauditsandtheyhaveanexcellentworkingrelationshipwithstaffandtheBoard.Thefieldauditorshavebeenprofessionalandknowledgeableabouttheutilityindustry,buthavetypicallyworkedonlyonetotwoauditsandthenhavemovedontoothercustomeraccountsorotheremploymentopportunities.ThereareusuallytwotothreefieldauditorsworkingduringanauditandtheyphysicallyreviewtheDistrict’sdocuments,recordsandprocessesusingMossAdamssystematicmethods.Sincethefieldauditorschangeperiodically,fresheyesareconstantlylookingattheDistrict.3.NEWINFORMATIONItisprudentforutilitydistrictstoconsiderchangingauditfirmsfromtimetotimesothatneweyescanexaminedocumentsandprocesses.However,aspreviouslystated,MossAdamshasregularlyturnedoverthefieldauditstaffsotheycanprovidethatfreshperspective.Additionally,MossAdamshasretainedJulieDesimoneandKeithSimovicwhichtheDistrictbenefitsfromtheirvastexperienceoftheutilityindustry.RecentlyimplementedaccountingstandardssuchasGovernmentalAccountingStandardsBoard(GASB)StatementsNo.68and75forfinancialreportingonPensionandOtherPost-EmploymentBenefitshadlargeimpactsontheDistrict’sfinancialsandwithMoss AdamstheDistrict’simplementationofbothstandardswentsmoothlyimprovingtransparencyinreportingofgovernmentalagenciesasthestandardsweredesignedtodoforbothPensionandOther-PostEmploymentBenefits.Atthistime,anauditfirmneedstobeselectedfortheFY19audit.ThisworkshopisbeforetheboardtoconsiderextendingacontractwithMossAdamsortoadvertisearequestforproposalforauditservices.4.FISCALIMPACTThereisnodirectfiscalimpactassociatedwiththisworkshop.Thecostoflastyear’sauditwas$52,000.5.RECOMMENDATIONReceivethisreportandprovidedirectiontoStaff.-tOfrzReginaWiseMichaelD.HolleyFinance&AccountingManagerGeneralManager