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MQS S ADAM S 1.1.E
PROPOSALFOR
Truckee Donner Public Utility
District
Prepared by:
Julie Desimone, Business Assurance Partner
Moss Adams LLP
3121 West March Lane, Suite 100
Stockton, CA 95219
(209) 955-6100
WWW.MOSSADAMS.COM
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September 2, 2011
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 (the "District")
for annual audit services beginning with the fiscal year ending December 31, 2011. We understand
these audit services are to be done in conformity with generally accepted accounting principles.
We believe our qualifications in serving utility entities are among the best and we encourage you
to contact our existing clients to discuss our capabilities. Moss Adams offers the following to the
District:
Commitment to communication and on time delivery of audit report. We will meet with District
management prior to the start of the audit to determine the most effective communication method
for the District and are committed to maintaining a high level of communication throughout the audit
period.
Deep specialty in serving electric and water utilities. We have the depth of resources necessary
to serve the District with focused industry experts and firm -wide specialists at your disposal. Moss
Adams serves as independent auditor to many electric and water utilities of similar size to the
District including, municipal entities, public utility districts, cooperatives, joint powers agencies and
independent power producers. Our clients operations include distribution, generation and
transmission. We understand the accounting and operational issues facing the District.
A service team comprised of industry and governmental specialists. The members of our
Utility Services Group have a long-term commitment to the industry which shows in their
experiences, training and involvement with industry associations. Most of our industry group
members spend between 75% to 100% of their time serving utilities. These team members will
ensure a smooth transition from your previous audit firm and dedicate themselves to superior
service.
• National recognition. Moss Adams is a nationally recognized firm. We are the eleventh largest
accounting and consulting firm in the United States and the largest with headquarters in the West.
Moss Adams is registered with the Public Company Accounting and Oversight Board (PCAOB), and
is recognized as a leading service provider in the capital markets.
Proposal for Truckee Donner Public Utility District
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Board of Directors
Truckee Donner Public Utility District
We hope this proposal expresses our enthusiasm and desire to provide services to Truckee Donner
Public Utility District. We are confident you will be pleased with our industry strength and
business insights. We welcome any questions you may have about this proposal and thank you
again for your consideration of Moss Adams.
Sincerely,
Julie Desimone, CPA
Business Assurance Partner
For Moss Adams LLP
julie.desimone0mossadams.com
Proposal for Truckee Donner Public Utility District
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TABLE OF CONTENTS
COMPETITIVE FEES
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COMPETITIVE FEES
Moss Adams is committed to competitive fees for the District that are commensurate with the
experience and necessary level of service described in this proposal. At all times, we want you to
feel that the dollars you spend for our professional services bring you exceptional value. Our audit
fee is based upon our assessment of the audit scope, our knowledge of the industry issues, the
risks inherent in your business, and the effort required to complete a thorough audit. Based on our
understanding of your service needs and the nature of your operations, we have prepared the
following "Not -To -Exceed" fee estimate.
Annual financial statement audit
Management report including a review of the internal $35,000 $37,000 $39,000
control structure assessment of control risk
Out-of-pocket costs
We understand these audit services are to be done in conformity with generally accepted
accounting principles and that the District requires 20 bound copies and one electronic copy of the
financial statement audit including the competent units and 20 bound copies and one electronic
copy of the financial statement audit excluding the competent units.
In the fee quote reflected above we have taken into account District staff, including management
personnel, will be available during the audit to assist with providing information, documentation,
explanations and the preparation of confirmations.
Since open communication is important in quality relationships, we do not charge clients every
time they have questions, concerns, or want to run an idea past us. In fact, we encourage ongoing
dialogue as it helps to keep us in front of your business issues and concerns. If the advice we offer
requires a substantial time commitment, we will first discuss the scope of the work and establish
an agreement on the fees with you.
The scope of work and related fee quotes are subject to our firm's client acceptance process, which
1) verifies that the firm and the client both understand the specific services we are being asked to
perform 2) assures that the terms of the contract are acceptable to both parties and in agreement
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with professional audit standards, and 3) confirms that we have staffed the engagement with
individuals qualified with the necessary expertise to fulfill our commitments to the prospective
client. In addition, we will need to complete our inquiries of your former auditor as required by
our professional audit standards. And finally, although we have performed an initial review of our
independence from District, we will perform a more detailed inquiry of our partners and staff to
ensure we have met applicable independence standards.
Our proposed fees are also based on a presumption that your books and records will be in good
condition, and that 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, including SAS 103 through 112, 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
would modify our audit approach, procedures, and scope of work. Before doing so, however, we
would negotiate any adjustment to our fees with you.
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