The URL can be used to link to this page

Home My WebLink About9 Contract for the 2012 Financial Audit Agenda Item #TRUCKEE DONNER Public Util'Ity District i 9 �5 CONSENT To: Board of Directors From: Robert Mescher Date: October 03, 2012 Subject: Consideration of the Extension of a Contract for the 2012 Financial Audit 1. WHY THIS MATTER IS BEFORE THE BOARD The auditors are hired by the Board of Directors and report to the Board of Directors. 2. HISTORY Last year, the Board requested staff to solicit proposals from Baker TillyNirchow Krause and from other audit firms. The Board selected Moss Adams for the 2011 financial audit. Moss Adams professionally completed the 2011 audit and presented the results at the June 6, 2012 Board Meeting. Moss Adams charged the District $40,000, which was consistent with the contract. 3. NEW INFORMATION Moss Adams has proposed the next audit to cost $41,500 (Attachment 1), which is less than a 4% increase and well below the cost of the other proposals received from qualified audit firms last year. 4. FISCAL IMPACT The budget for the 2012 audit services is $61,700 and is more than sufficient to extend the Moss Adams contract. 5. RECOMMENDATION Authorize the Board President to extend the contact with Moss Adams for a cost not to exceed $41,500. Robert Mescher Michael D. Holley Administrative Services Manager General Manager Attachment 1 WWW.MOSSADAMS.COM PROPOSAL FOR Truckee Donner Public Utility District Pricing Update for Audit Services Prepared by: Julie Desimone, Partner Moss is LLP 805 SW Broadway, Suite 1200 Portland, Oregon 97205 (503) 242-1447 WWW.MOSSAVAMSXQM M-0 S S-ADAM-S September 6,2012 Bob Meschier Administrative Ser-Ores Manager "rruckee Donner Public Utility District 1.1570 Donner Pass Road Truckee,CA 96 1.6)1 Dear Bob: Moss Adams I..;LP(S4 Moss Adcarns")is pleased.to prov ide this pricing update to Trkickee Donner Public Utilitv District("the District")for updated pricing for audit services for the year ended W December 31,2012. 1 (Julie Desimone,CPA,Partner)am the sigmatory to this letter and am authorized to make representations for Moss Adams an.d to negotiate for,atid bind.the firm to,any contract that results fro this proposal. We are eager to continue a workingrelationship with the District and welcome any questions Doti t� zn� may have about this pricing update. The audit team included in this letter have remained consistent with last year, Than you for vour continued consideration of Moss Adams. Sincerely, I 4-� 1 X Julie Desinione,CPA Partner and Energy and Utility National.Practice Leader For Moss Adams LLP 503-242-1.447 ................................................... ............................................................. MOSS TABLE OF CONTENTS YOUR SERVICE TEAS °° R0SE COST WWW.M0SSADAMS.CQM YOUR SERVICE TEAM Your engagement team members are from the Portland,Oregon and Sacrarnen to,California offices, The engagement lead.is Julie Desimone,Partner.She will be supported.by Keith Simovic,Manager, Kayla Walther,Staff,and other staff as needed. Each of these named individuals are members of our Ever gyand Utility Service Group and have direct experience auditing over and water utilities, Also,this team is consistent with the prior year audit teas ,with the exception of staff, fi�9De-s4 ice &I , :�z se wam!,n ad U ,"1'* afio : P� ms- ne s and n e.Ju , sA - n tyN . a 'Tmfic Role: Partner and Erigagennent Reviewer t> Julie Desinione is a business assurance partner and the Firm's Energy and Utility National Practice Leader.She has been working in public accounting and serving electric utilities for over ten years CID and is responsible for numerous audit engagements.In addition to audit services,Julie has perfor'.rned many-consulting projects and.speaking engagements covering technical and operational issues. Some specific areas of her professional experience include.-advanced udlity acc ounting and cooperative matters,technical-auditing services including A-13 3,contracting issues,RUS requirements and internal control evaluation.Julie is a licensed certified public accountant and Oregon Mu nicipal A-uditor.Julie is a member of the Arnerican Institute of'Certified Public Accountants and Washington Society of Certified Public Accountants.During the last three years, Julie has completed in excess of the required continuing professional education in Accounting and A uditing necessary to niaintain her license. Clients Julie continues to serve include: Southern California Public Power Association,Alaska. Power Companve Public Utility District No. 1 of'Clary County,Eugene Water and Electric Board Z: 0 Imperial Irrigation District,Klickitat Coun"y Public Utility District,Lewis County Public Utili",- District,Springfield Utility Board,and City of Portland. WWW.M0SSAVAMS.CQM M0 S ;A- DANIll'S it " ovic Bus iss s u r KefiSm ., snes an ceM anag Role: Engagement Manager no Keith Simovic is a business assurance manager with more than four years ofexperience in public accounting.Keith has assurance experience with abroad client base,including Utility,Forest Products,Man ufacturin and Distribution,Healthcare and Not-fo r-pr()fit organizations,as well as a variety ofexperience inother types ofindustry. site is a licensed certified public accountant in the state of Oregon.I-legraduated with a Bachelor of Business Administration with a concentration in accounting from repo State University. Clients Keith continues to serve include:Transmission Agency of Northern California, SouthernCalifornla Public Power Authori�y,City of1daho Falls,Eugene Water and.Electric Board, Nort .ern Lights,Inc.and Power Resources Cooperative. O"ga Beusiness Assur;�-,nce Senior Managpr Role: Concurring Reviewer Olga is a business assurance senior manager and a key nieniber of both the Firni's Governmental and En erg.y and Utility Service Groups.She has specialized in serving government and municipal clients since her career began in 1997,Olga joined Moss Adams-in 2005 after five years with Deloitte&Touch-e LLP. She has conducted avoid.supervised audit engagements of electric and other utilities,transit agencies,and port districts,as well as other governmental financial statement audits and consulting projects. She is recognized for her technical expertise and assisted many clients with Iniplementation of new accounting standards.In addition,Olga has facilitated. numerous trainings on electric utility-specific topics to internal and external aroups and has extensive A-133 experience. Clients Olga continues to serve include., in County Metro Water Quality Fund,Pend Oreille Public Utility District,Okanogan Public Utility District,and Orcas Power&-Light Cooperative. 2 WWW.MOSSADAMS.COM MOSS A� DANISLJ_P PROPOSED COST Moss Adams'fees for audit services with the District are commensurate with the experience and necessary level of service described in your 2011 Request for Pro osal.At all times,we want you. W P to feel the dollars you spend o n our services are bringing you the most value. Based on our 6 understandfing of your service needs,we have prepared the following fee quote., Annual Audit Fees Anticipated Out- Year Fees Of-Pocket Costs Total Cost 2012 $371000 $430500 $41.1500 Our policy is to bill travel at actual costs.We make eveiy effort to control such costs including booking travel well in advan.ce to avoid higher priced airfare,stay at moderately priced hotels,use IRS meal per diern rates,take advantage ot'discounts,etc.In addition,we will provide support for all.travel.expenses. 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. T111-le estimatels also based on accounting and.auditing standards that have been issued as of the(late of this proposal submission,which cover a ran 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 modifv our audit approach,procedures,and scope of wo-l-k.Before doing so,however,we would negotiate any adjustment to our fees with you. We would like to emphasize the fees discussed above are the ft--�es we intend to bill for the year- round servies discussed in our fee quote above. We stand by our fee commitments and do not engage in efforts to bill additional amounts for what we consider to be basic audit relationship time and effort. However,in the event of unforeseen circunistances,we will communicate with you immediately,