The URL can be used to link to this page

Home My WebLink About9 Moss Adams Single Audit for FEMA Reimbursementenda Item # CONSENT E To: Board of Directors From: Regina Wise Date: February 07, 2018 Subject: Consideration of a Contract with Moss Adams for a Single Audit for FY17 FEMA Reimbursement 1. WHY THIS MATTER IS BEFORE THE BOARD Consideration for approval to have Moss Adams, the Board's current audit firm, conduct a single compliance audit of federal grant funds received in FY17. The single audit is a required rigorous organization -wide audit or examination of an entity that expends $750,000 or more of Federal assistance in a given fiscal year. 2. HISTORY The President and Governor's office, and Placer and Nevada Counties, declared state of emergencies for the extreme winter storms that occured in January and February of 2017. This action secured fuding to help communities respond to and recover from the severe winter storms. Staff compiled and submitted eligible expenses to the State of California Office of Emergency Services (CalOES) and the Federal Emergency Management Agency (FEMA) requesting reimbursement. The District received $932,836 from FEMA in addition to $258,909 from CalOES of eligible reimbursable expenses from these disasters in 2017. 3. NEW INFORMATION The District is subject to this requirement for FY17. Moss Adams, the Board's current audit firm, is an experienced firm in conducting federal compliance audits. The audit would be performed concurrently with the District's regular annual audit under the direction of Julie Desimone and Keith Simovic. A single audit is significantly more detailed than a regular audit with higher levels of testing that must be done on expenses to ensure federal funds have been properly used, as well as documented and reported correctly in the District's financial statements. Attachment 1 includes the detailed proposal from Moss Adams, 4. FISCAL IMPACT Moss Adams proposal for single audit services to conduct the federal compliance audit is $12,000. This expense was not anticipated in the FY18 budget. However, sufficient funds exist in the General Fund. 5. RECOMMENDATION Authorize the Board's President to execute a contract with Moss Adams for Single Audit Services, in an amount not to exceed $12,000 plus incidentals. Lisa Hall Michael D. Holley Director of Administrative Services General Manager Attachment 1 MOSSADAMS December 20, 2017 Board of Directors Truckee Donner Public Utility District 11570 Donner Pass Road Truckee, CA 96161 Dear Board: We are pleased to present this proposal to Truckee Donner Public Utility District (Truckee Donner PUD) for Single Audit services. We're excited about the opportunity to expand on the services we provide Truckee Donner PUD and have highlighted just some of our experience and qualifications below. ABOUT MOSSADAMS Moss Adams is a fully integrated professional services firm dedicated to growing, managing, and protecting prosperity. We work with the world's most innovative, dynamic, and promising clients and markets. Through a full spectrum of accounting, consulting, and wealth management services, we bring the deep industry specialization and inspired thinking our mid -market clients seek. Moss Adams is one of the 15 largest US accounting and consulting firms and a founding member of Praxity, AISBL, a global alliance of independent accounting firms providing clients with local expertise in the major markets of North America, South America, Europe, and Asia. Our Utility Practice Our professionals provide accounting, tax, and consulting services for public power generation, transmissionI and distribution markets; water; wastewater; and solid waste utilities. We have ongoing general audit services in Oregon, Washington, California, Alaska, Arizona, Colorado, Hawaii, Idaho, Kansas, Montana, and New Mexico, including cooperative organizations, municipal entities, public utility districts, mutual corporations, joint powers entities, and independent power producers. Our clients deal with many of the same issues, risks, opportunities, and constraints you do. We're experienced and familiar with the terrain you face, and this makes us more effective auditors and business advisors. Our utility practice professionals are well versed in the issues pertaining to large municipal utilities such as: SFAS 71 deferral accounting; environmental remediation liabilities; large construction projects of infrastructure and related issues, such as construction -in -progress accounting, classification and tracking, capitalized interest, application of overhead, and depreciation; and bond -related accounts such as arbitrage liability, debt defeasance and refundings, and covenant compliance. Virtually all of our large public utilities face similar issues. In addition to our core audit and tax services, our consulting practice offers IT, business feasibility, rate work, restructuring and workflow design, performance audits, and strategic planning. Our clients include public utility districts, regional utility planning associations, and cooperatives. Truckee Donner Public Utility District December 20, 2017 Single Audit Eiperience Moss Adams is an experienced firm in conducting federal compliance audits in accordance with the Single Audit Act and the audit provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (federal compliance audit). According to the US Census Bureau's single audit database, as of 2016 we'd performed more than 3,100 such audits for our clients since 1997, The vast majority of these audits were conducted by the 180-plus members of our firmwide team serving governments, not -for -profits, and other related entities —which includes all of the members of the audit team who'd be serving you. A Firm Highly Experienced with Federal Compliance Audits The table below shows the number of federal compliance audits conducted by our firm since 1997 (the year the federal government began keeping records of these audits). This information can be found Wine at the Single Audit Database: https://harvester,census.gov/facweb. 1997-2004 As 11149 Expenditures Audited $14.4 billion 2005 146 $2.7 billion 2006 154 $5.5 billion 2007 146 $5.7 billion 2008 148 $8.9 billion 2009 151 $9.5 billion 2010 168 $11.6 billion 2011 183 $12.2 billion 2012 183 $7.2 billion 2013 189 $6.7 billion 2014 185 $5.7 billion 2015 180 $5.0 billion 2016* 136 $3.9 billion (reported to date) 19-Year Total 3,118 $99.0 billion of April 25, 2017 Our professionals have conducted federal compliance audits for many types of organizations and program types including public utility districts. This makes them well suited to anticipate and solve potential problems and complete these audits in a timely manner. REPRESENTATIVE UTILITY CLIENTS Below is a sample of clients we work with in your industry that receive similar services. American Samoa Power Authority Eugene Water &Electric Board Arizona Cooperatives Klickitat Public Utility District Central Electric Cooperative, Inc. Kaua'i Island Utility Cooperative City of Idaho Falls TriMet Emerald People's Utility District IVIossAdams I Propo�alfur 17•urk�e f�onn�r Pubtic Utility Uis6•ict Truckee Donner Public utility District December 20, 2017 YOUR SERVICE TEAM Working with the right team of professionals makes all the difference to your engagement. The team members we've thoughtfully selected to serve your specific needs have years of Utility experience. But more than that, you'll find they bring an optimistic perspective focused on helping Truckee Donner PUD explore and embrace emerging opportunity. Your Moss Adams team will personally engage with your team and bring a new level of energy and enterprise to your engagement. Julie Desimone, CPA Pm•tner Engagement Pm•tner/Reviezvezl Julie is the leader of the firm's Utility Practice and has been providing auditing, accounting, and consulting services since 2000. She serves clients in the energy and utility industry, including enterprise funds of governments. Some of her specific areas of focus include: advanced utility accounting, regulatory assets and liabilities, technical auditing (including single audits), contracting, internal control evaluation, litigation support, and relationship management. FEES IZeith Siuiovic, CPA Sezzior Manager Engagement Senior Manager Keith has practiced public accounting since 2007. He provides assurance services to clients in the energy and utility, not -for - profit, government, forest products, manufacturing, distribution, and healthcare industries. Keith primarily works with utility companies and has significant experience in advanced utility accounting, derivatives, and power hedging. He is a regular presenter for Northwest Public Power Authority classes on subjects including utility accounting and utility budgeting. For our clients, it's about more than the dollars you pay at the end of the day; it's about value. Consider both the tangible and intangible benefits of working with us. You'll get solid and timely deliverables. But more than that, the experience you'll have working with forward -thinking, industry -specialized professionals who work side by side with you to explore new possibilities is where you'll see the value. Invest in your future prosperity and experience a different style of service with us. Single Audit $12,000 This proposal and fee arrangement are subject to the successful completion of our standard new client acceptance procedures. If we are awarded this engagement, we'll complete our procedures as quickly as possible. Assuming no significant matters come to our attention during our client acceptance process, we'll submit an engagement letter to Truckee Donner PUD following notification of your acceptance. rYloSsAdarnsiYroposa!%cu•Trtrcl•ce!)unn�rPublicC`tilih/District ;; Truckee Donner Public Utility District December 20, 2017 THE BEST CHOICE FOR TRUCKLE DONNER PUD Selecting an accounting firm is a difficult decision. Differences between firms can be of to discern. We commit to continuing to make Truckee Donner PUD an extremely satisfied client of Moss Adams. Our personal promise to you is be sure you receive the best service Moss Adams is capable of providing. We welcome any questions you may have about this proposal and thank you for your consideration of Moss Adams. Sincerely, Julie Desnnone, CPA Partner (503)478-2101 julie.desimone@mossadanis.com Keith Simovie, CVA Senior Manager (503)478-2284 th.sinioNic@mossadanis.com AssuraneE�, tor-, and cons�rlting <ffered througk Moss Adams LLP. Lzvestntent adz-�isory services offered through Moss=9darrts 4Yealilr.9drisors LLC. (nuestnren� banking ojf'ered du•ough d7oss_9dams Caj�ital LLC. Moss Adorns j Proj)osal fin• Trarckee Uonnrr• P1l61ic Utifihl District 4