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HomeMy WebLinkAbout Audit Services Attachment 1Attachment 1 DMOSSADAMS OPPORTUNITY RISING AUDIT SERVICES PROPOSAL FOR TRUCKEE DONNER PUBLIC UTILITY DISTRICT Julie Desimone, Partner Keith Simovic, Senior Manager Moss Adams LLP 800 SW Broadway, Suite 1200 Portland, OR 97205 (503) 242-1447 (�) M O S S A D A M S Dear Board: Our team has thoroughly enjoyed working with Truckee Donner Public Utility District (Truckee Donner PUD) and your staff over the years and we're so pleased you've had such a positive client experience that you asked us to re -propose on your audit services. While providing great service and meeting your deadlines are a good basis for a relationship, they're not the only criteria you should consider for continuing to work with us. We urge you to consider the following: A deep bench of expertise. Within our trained industry group, we have professionals ready to be a resource for you and your team. We have consistently, and plan to continue to, periodically rotate our staff so that you get fresh eyes and a new perspective on your audits throughout our service to you. Through working with our firm you'll also access to other specialized professionals available and willing to provide any consulting needs you have, including IT consulting, cybersecurity risk assessments, and performance audits. June 14, 2019 Communication throughout the year. Moss Adams isn't your once -a -year Board of Directors service provider. During the audit and throughout the year, we'll continue to Truckee Donner Public solicit and encourage communication to make sure we're up to date on your Utility District operations and keep management apprised of new accounting pronouncements, Donner Pass Road Truckee, CA 96161 Truckee, application of accounting policies, and new accounting and tax issues. pP � g P � g • Industry knowledge. The majority of our firm's professionals dedicate their careers to focusing on one industry. Your team has deep experience in and knowledge of the power and utilities industry, and they're passionate about it. We remain committed to keeping Truckee Donner PUD a long-term and extremely satisfied client of Moss Adams. Our personal promise to you is to be sure you receive the best service Moss Adams is capable of providing. This proposal includes information about Moss Adams, our approach to audit services, and our fee estimate. Sincerely, Julie Desimone, CPA Partner (503)478-2101 Julie. desimonea mossadams.com Keith Simovic, CPA Senior Manager (503) 478-2284 keith.simovicomossadams.com Table of Contents Executive Summary Our Commitment to California Open, Timely, and Effective Communication Premier Client Service Power & Utilities Expertise Your Service Team Client References Fees Executive Summary [�1�13•%L�ih41��t�il����%Z•1:1�1�•l,�ill_1 Our California Presence 5th 145+ largest partners accounting firm in California • • 1,000+ o� professionals � Data as of January2019 Moss Adams has long maintained a strong presence in the Golden State. We continue to add expertise to our California teams, relocating senior -level practitioners from Oregon and Washington to bolster the resources we can offer in key industries and service areas. With its complex state and local tax structure and maze of regulatory agencies, California presents a number of challenges to businesses based in the state and those hoping to do business there. Moss Adams has the resources, conveniently located offices, and technical expertise to help you navigate your way to success. OPEN, TIMELY, AND EFFECTIVE COMMUNICATION Part of the value we provide to your business is a commitment to maintaining close and regular contact with you throughout the year. We're not once -a -year auditors who disappear for many months, only to return in time for the next audit. We're a constant resource for questions and advice with a quick response time. We want you to notice a superior level of service based on your expectations —not on our assumptions. From assisting with implementation of new accounting standards to routine phone calls about immediate issues of concern, we're hands-on advisors with a bias for action. We won't keep you waiting or wondering. Instead, we'll take the lead in suggesting meetings with you, setting up training sessions with your internal accounting staff, and delivering presentations to management or your board of directors. You need proactive communications about our engagement findings. We'll raise any issues as we find them and not when it's too late for you to act on them. We'll also notify Truckee Donner PUD right away about emerging accounting, tax, and regulatory matters or concerns, further helping to keep surprises to a minimum. PREMIER CLIENT SERVICE You deserve noticeably superior, value-added services that make a difference to your bottom line. With a client -focused service model designed for the long-term care of your business, Moss Adams can help. It starts with a high level of partner and senior manager involvement with each engagement and a low staff - to -partner ratio averaging around six to one. Also, you'll see us more than once a year. We'll stay in close contact with you to discuss compliance issues; answer questions; and provide updates on new accounting pronouncements, industry reports, and special events. It's our top priority to return your phone calls and resolve concerns as quickly as possible. To perform an engagement as unique as you are, we'll seek to understand your point of view —the history of your utility, the challenges you've faced, your goals, and the strategies that have helped you succeed. This way, we can anticipate needs and identify gaps before they become obstacles so you can grow, manage, and protect your prosperity with confidence. Moss Adams I Proposal for Truckee Donner Public Utility District 1 Power & Utilities Expertise Our Utility Services Our professionals provide accounting, tax, and consulting services for public power generation, transmission, 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 GASB No. 62 regulatory 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. We'll continue to provide Truckee Donner PUD with a dedicated team of utility -specialized professionals on your engagement that are up to speed on all the latest trends and occurrences in your industry. In addition to our core audit and tax services, our consulting practice offers IT, cybersecurity, 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. Moss Adams I Proposal for Truckee Donner Public Utility District 2 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 power and utilities 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. Keith Simovic, CPA, Senior Manager Professional Experience Keith has practiced public accounting since 2007. He provides assurance services to clients in the energy, utility, and government 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 the American Public Power Association and Northwest Public Power Association on subjects including utility accounting and utility budgeting. Keith will serve as your engagement Professional Affiliations reviewer. Member, American Institute of Certified Public Accountants Member, Oregon Society of Certified Public Accountants Education BS, accounting, Oregon State University Moss Adams I Proposal for Truckee Donner Public Utility District 3 Julie Desimone, CPA, Partner & National Practice Leader, Power & Utilities Julie will serve as a technical resource Professional Experience Julie is the leader of the firm's Power & Utilities 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. for your Julie currently serves on the firm's training and development committee, audit engagement. task force, and recruiting program. In addition, she serves as an AICPA peer reviewer and is a regular speaker on technical and operational issues related to the energy and utility industry. Professional Affiliations Member, American Institute of Certified Public Accountants Member, Washington Society of Certified Public Accountants Board member, Washington State University Business Advisory Board member, Camp UKANDU Education BA, accounting, Washington State University Moss Adams I Proposal for Truckee Donner Public Utility District 4 Scott Simpson, CPA, Partner Scott will serve as your quality control review partner. Professional Experience Scott has practiced public accounting since 1997, including four years at a Big Four firm. His focus is on audits of utility and insurance companies, higher education institutions, research institutes, not -for -profit organizations, and governmental entities. Scott has performed audits in accordance with OMB Circular A-133 as well as program audits as required by the Department of Education. He has prepared financial statements under GASB, FASB, and statutory basis accounting. He has vast experience assessing, observing, and testing internal control environments and compliance with laws, regulations, and grant requirements. In addition to serving his clients, Scott has taught sessions at trainings related to higher education and is involved in the firm's college recruiting program and other training programs. He previously served as partner in charge of the firm's Eugene, Oregon, office and has held various technical leadership roles within the firm. Professional Affiliations Member, American Institute of Certified Public Accountants Member, Oregon Society of Certified Public Accountants Education BS, business administration (accounting emphasis), Norwich University Melissa Ruschetti, CPA, Senior Melissa will serve as your engagement senior staff. Professional Experience Melissa began her career with Moss Adams in 2016. She has experience with recurring audit engagements and has managed all phases of an audit including planning, control testing, fieldwork, and report preparation. She has experience serving a variety of clients within the utility, not -for -profit, and manufacturing industries. Professional Affiliations Member, Montana Society of Certified Public Accountants Education BS, business and information technology (accounting and business management options, Montana Tech of the University of Montana MA, accounting, University of Montana Moss Adams I Proposal for Truckee Donner Public Utility District 5 Quality Service and Staff We'll utilize audit staff who are knowledgeable about governmental accounting standards and municipal utilities and have met and/or exceeded continuing educational requirements. We regularly change the staff auditors assigned to your engagement and will continue to do so in order to provide you fresh eyes and new perspectives from your audit team. Our staff and senior staff are trained in the power and utilities industry, so even with different staff rotating onto the audit engagement from time to time, you can be assured that the staff are experienced at auditing public utility districts and are up to speed on the latest trends impacting the industry. At Moss Adams, our goal is to hire and keep people who believe in, and demonstrate, a sincere passion for excellence in their work, and a deep commitment to interacting with each and every colleague and client with respect. This goal cannot be achieved without well -trained, highly motivated people who are continually challenged and growing in their professional abilities. We've improved our capacity and capabilities by becoming more effective at recruiting, performance feedback and coaching programs, retaining our best people, and training a new generation of leaders. In recent years, we've made progress as demonstrated by an ever-increasing number of newly admitted partners who have spent many years at Moss Adams. Our firm values emphasize a balance between ambitious professional goals and a well -lived life. We know these values have helped us to retain quality staff, and make us different from other firms. Moss Adams I Proposal for Truckee Donner Public Utility District 6 Client References Hear for yourself the unique experience our clients have in working with our firm. We're confident they'll share stories of how we make their lives easier, help them identify and take advantage of rising opportunities, and guide them to increased prosperity. Sue Fahey 1 (541) 685-7386 Balen Valenzuela 1 (760) 339-9345 Paul Matthews 1 (503) 848-3017 Melissa Ankeny 1 (360) 992-3495 Moss Adams I Proposal for Truckee Donner Public Utility District 7 Fees 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 continuing to work with us. You've received 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. Service Description 2020 2021 2022 Financial statement audit for Truckee Donner $47,000 $48,000 $49,000 Public Utility District for the fiscal years ending December 31 Out-of-pocket expenses $6,500 $6,500 $6,500 Attendance at board meetings, including: Included • Presentation of audit results • Communication of internal control issues • Management letter Consulting, as needed Hourly rates Fee Details Our proposed fees are also based on a presumption that your books and records will be in good condition and your accounting and finance staff will provide reasonable and customary assistance. The estimate is also based on accounting and auditing standards that have been issued as of the date of this proposal submission, which cover a range of issues on an auditor's assessment of risk and required audit documentation. Accounting and auditing standards can and do change, so if future changes are significant enough to warrant it, we'll modify our audit approach, procedures, and scope of work. Before doing so, however, we'll negotiate any adjustment to our fees with you. Moss Adams I Proposal for Truckee Donner Public Utility District 8 Subject The Details Cost Overruns During the course of the audit, we'll measure our progress against our planned budget. If situations arise that are significantly different than our expectations, we'll bring them to your attention immediately and discuss various options before we proceed. We'll meet weekly during the course of fieldwork with the appropriate parties to ensure there are open lines of communication between our organizations. Progress Billing Progress billings are based on hours and expenses completed at the time of billing. Bills are due upon receipt. We reserve the right to charge interest on accounts over 30 days past due. Routine Phone Calls and Our policy is to not charge for short telephone calls seeking Emails miscellaneous advice unless those consultations require significant additional work or research. If a matter requires further follow-up, we'll discuss a fee estimate with you before incurring significant time. Expenses Direct travel expenses will be billed monthly as incurred and won't exceed the proposed travel expense amounts noted previously. Minor Research and If we're requested to provide minor research or consultation service, Consultation we'll estimate the number of hours necessary to provide the requested services. We'll then provide a fee quote for your approval before commencing any work. Our fees for these services are generally at our standard billing rates. Assurance, tax, and consulting offered through Moss Adams LLP. Investment advisory services offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC. 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