HomeMy WebLinkAboutProposals for Audit Suite 2000 Telephone 503 221 6500
1211 South West Fifth Avenue Fax 503 796 7650
Portland, OR 97204
September 27, 2002
PRIVATE AND CONFIDENTIAL
Board of Directors
c/o Ms. Mary Chapman
Truckee Donner Public Utility District
11570 Donner Pass Road
Truckee, California 96161
Ladies and Gentlemen:
Thank you again for agreeing to meet with us on October 1 st to discuss our
qualifications to serve as your auditors. We are very pleased to be one of the final firms
that you are considering during the proposal process.
Please find enclosed the fee portion of our proposal. It is our hope that you will find our
proposed fees to be fair and competitive. It is not our intention that fees would be the
deciding factor in whether or not to hire KPMG as your auditors. Therefore, please feel
free to call us with any questions or concerns, or if a different approach is desired.
We look forward to seeing you on October 1 St. In the meantime, don't hesitate to call
me if I can be of further assistance. I can be reached at 503-323-0524.
Very truly yours,
KPMG LLP
Timothy E. McCann
Partner
TEM:tmk
Enclosure
ONEKmM� e of KPNC Irtematanai�aS-..i...oc"to5 P
KPMG LLP
Fee Proposal
Truckee Donner Public Utility District
Following below is our fee quote for the performance of the annual audit procedures
outlined in the RFP. This quote assumes that we will receive appropriate assistance from
the District's personnel in preparing for and conducting the audit. Please note that the
following quoted fees assume that the current regulatory environment will continue to
exist in its current form. New fee levels would need to be negotiated if additional
regulations or rules are issued that change the required scope of our work. Also,
additional fees beyond those listed below will be incurred and billed in connection with
the District's implementation of GASB 34 in 2003. The level of effort involved in
auditing the implementation of GASB 34 has varied widely from client to client,
depending upon the client's level of preparation and expertise. We will gladly provide a
better estimate of the expected costs related to the GASB 34 implementation after
becoming familiar with the District's implementation plan.
As discussed in our previously issued Statement of Qualifications, the fee quote below
includes an allowance for "day-to-day" questions that may arise, without management
having to worry about separate charges. If certain questions or requests will require a
substantial amount of time (for example, such that we would incur more than a few hours
on a question), we will promptly notify the District of this fact before proceeding. It is
our policy to ensure that there are no surprises regarding fees, and you can be assured that
we will not incur time that will be billed separately without your express approval. It is
our experience with the District, and with our other clients, that virtually every "day-to-
day" question that arises during the year will be able to be covered by the base audit fee.
Year Base Fee Expenses
2002 $ 45,000 $ 4,000
2003 47,250 4,000
2004 49,500 4,000
Additional Services
Hourly rates for additional services will vary depending upon the specialty required, the
time of year requested, and the required turn-around time. An example of such rates for
additional support provided by the audit team during 2002 on a non-urgent basis would
be as follows:
Partner $275
Manager 200
Senior 150
Staff 100
3
Statement o.f' Qualifications to Serve
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TRUICKIME D NNE
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AUGUST 2002
400 Capitol Mall Telephone 916 448 4700
Sacramento, CA 95814 Fax 916 5541199
3 RECD AUG 21 2002
August 19, 2002
3
3 PRIVATE
Board of Directors
c/o Ms. Mary Chapman
Truckee Donner Public Utility District
11570 Donner Pass Road
Truckee, CA 96161
3
Dear Ladies and Gentlemen:
Enclosed please find our Statement of Qualifications to provide audit services to Truckee
Donner Public Utility District. The proposal has been written to meet the requirements specified
in your request, and highlights how KPMG is best positioned to provide the District with the
most efficient and value-added audit. In addition, certain team members have had a past
relationship with the District, providing us solid knowledge and background regarding the
�] proposed audit engagement, which we have reflected in the enclosed credentials. It is our hope
that you will agree that utilizing the team named in this proposal carries significant advantages,
including the following:
Continuity of Knowledge and Intellectual Property - The Arthur Andersen arrangement
3 with KPMG was structured to allow for full KPMG access to the existing audit work papers,
giving us the ability to refer to past documentation as needed.
'3 ➢ Continuity of Audit Approach — KPMG's audit methodology will continue to focus on
'3 identifying and addressing business risks, and analyzing key processes. Further, with the
engagement team we have assembled, KPMG is best positioned to provide a high quality
3 audit with minimal disruption to your staff.
Experienced Team - Your proposed engagement team, and KPMG as a whole, has
extensive experience with public utility districts and other government entities. We will
ensure that our industry expertise is fully utilized to provide timely, relevant advice.
All of the above advantages allow us to provide service to the District at a fee level that we
believe is competitive and fair.
` ■..,KPMG LLP KPMG LLP,a J.S.1-11ed).ffiN.ry partn¢t9tiip.is
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I Board of Directors
c/o Ms. Mary Chapman
Truckee Donner Public Utility District
August 19, 2002
Page 2
We look forward to the opportunity to serve the District. We would be happy to discuss the
enclosed proposal in more detail in person at your convenience. Please call me with any
questions at503-323-0524.
Very truly yours,
KPMG LLP
WAA e�
Timothy E. McCann
Partner
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Enclosure
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STATEMENT OF QUALIFICATIONS
Executive Summary and Background
We are pleased to provide the following Statement of
Qualifications to provide audit services to Truckee Donner Public
Utility District (the District). Our proposal is organized to mirror
the requirements specified in the request for qualifications (RFQ),
while presenting our credentials in a clear and concise format.
�] KPMG offers to you engagement team members who have either
served on the previous audit team or have extensive public utilities
experience. This is a key advantage to utilizing KPMG as your
auditors, as the transitional disruptions will be minimal as
compared to our competitors. Our familiarity with your industry,
�] related processes, controls, systems, accounting issues, financial
statements, and personnel, will allow us to provide the best possible
3 service from day one of the contract.
3
About KPMG
KPMG LLP is an $11.6 billion international professional services
firm with 103,000 people in 152 countries. Our strength as a large
.� international firm gives us the ability to draw upon virtually
unlimited technical expertise in meeting our client's needs.
R Energy & Utility Industry Leadership
With an impressive network of professionals focused on serving
the energy and natural resources industry globally, KPMG provides
exceptional support to industry clients. We were the first of the Big
Five to create distinct career paths based on industry categories.
This approach helps ensure that clients are served by industry-
focused professionals who recommend smart, integrated strategies.
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Tiwd eeDomm Public UAW DN"d
3 Commitment to the Industry
3 We believe that providing new information and perspective is a
vital part of our role in serving energy clients. KPMG's energy and
3 utility professionals have technical strengths that not only serve the
interests of our clients but also contribute significantly to the
industry. For example:
Y CFO Energy Roundtables. Each year KPMG hosts CFO Energy
Roundtables for both KPMG clients and nonclients. We invite
3 CFOs from the energy arena to discuss issues impacting their
industry.
3 Latin American Energy Summit. Because significant change
and opportunity in the energy industry can be found in Latin
America, our U.S. practice, in conjunction with KPMG's Latin
American practice, co-hosts this summit with The Economist
organization on a regular basis.
s IM Transformations Newsletter. Transformations is an external
thought-leadership publication designed to inform Energy,
Power and Natural Resources clients about the activities,
A presentations and survey findings that KPMG sponsors.
3
Representative Clients
A listing of representative clients served on a national basis is
included in Appendix A.
Firm Acceptance to the Bond Market
Our standing as a highly respected international firm ensures that
.3 work performed by KPMG will be accepted by the bond markets.
We have not had any difficulties in this regard.
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Proposed Audit Team
3
We are pleased to offer the District an engagement team with
members who have either served on the previous audit team or
have extensive public utilities experience. This continuity of
personnel and industry experience ensures that the 2002 audit will
be conducted with little learning curve and minimal disruption.
Your proposed engagement team members are as follows:
Timothy McCann Tim has served numerous govemment/utilities, as either the
Partner partner or concurring partner, including Public Utility District
Number 1 of Chelan County, Pend Oreille PUD, Portland General
Electric Company, Pierce County Sewer Utility, Tri-Met, Port of
3 Portland and the City of Portland. Tim has also served a number
3 of other energy companies involved in natural gas distribution, gas
and electric marketing and interstate transmission of energy. Tim
has been in public accounting for 14 years and has served utilities
during virtually all of those years.
3
Shane Philpot Shane is a leading manager in our government/utilities, with
3 Senior Manager specific expertise serving public utility districts. Current and
3 previous govemment/utility clients served have included: Chelan
County PUD, Pierce County Sewer Utility, Pend Oreille PUD,
Portland General Electric, Tri-Met, and the Port of Portland. This
client experience allows Shane to bring deep industry experience
3 to your engagement. In addition, Shane is a licensed municipal
auditor in the State of Oregon, and is a GFOA Certificate of
Achievement reviewer. Shane has been in public accounting for 9
years, and has been a manager for 4 years.
Meghan Kralka Meghan served the District as the in-charge on the engagement in
Senior the prior year. From her previous experience she has gained
intimate knowledge of the District's processes, controls,
accounting issues, financial statements, and personnel. Thus she
brings valuable knowledge to the team and to the District.
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Employee Turnover and Stability of Work Force
We understand the importance of minimizing turnover of _
engagement team members. At the staff level, our personnel have
been selected for their ability to repeat in a similar capacity on the
subsequent year's engagement. In fact, our engagement staff will
change only for one of three reasons:
Natural staff attrition - Unfortunately, retention of staff is
3 as critical an issue at KPMG as it is at the District, and our
people do leave. However, the District's management can
be assured that we will not reassign staff for our
convenience or to serve other clients without consulting you
3 first.
�] Promotion - We select our people for their upward
potential. As our personnel are promoted, they may "work
out of classification." However, we will make every attempt
3 to utilize a team member in an appropriate, more
responsible capacity on the District's engagement as our
relationship moves forward from year to year.
3 Preference of the District - Obviously, our people are our
direct contacts with our clients. There are isolated instances
3 in which personalities may not connect in the manner
required by a client and KPMG. If such a situation occurs
3 on your engagement, we will address it quickly and
3 accordingly. As previously stated, our policy of continuous
and timely communication with the District's management
3 will enable us to respond to any potential issue before it
becomes a problem.
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3 Proposed Audit Methodology
3 KPMG's proprietary business methodology, the Business
Measurement Process (BMP), takes the focus of the audit from the
balance sheet and places it where it needs to be: on your business
objectives and strategies and the risks that impact them.
BMP transforms the audit process by creating a framework to
assess bow a client's business risks are managed. We analyze
.] external industry forces that significantly affect your business,
3 combined with your strategic management processes. In this way
we understand better the significant risks that threaten your
business objectives and consider how these risks affect your
financial statements. By using this approach, our team will gain a
thorough understanding of your business, including your strategies,
your strategic business risks and the business processes that
3 manage them, and related business process risks and controls.
R As a KPMG client, you benefit from BMP because it better
positions us to offer ideas that can improve your business and
allows us to assess key performance indicators that drive your
company. Further, with the engagement team we have assembled,
KPMG is best positioned to provide a high quality audit with
.] minimal disruption to your staff.
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I Day-to-Day Services
In addition, it is our pleasure to serve as a resource for "day-to-
day" questions that may arise, without management having to
I worry that they will be charged for such questions. Our base fee
includes an allowance for such questions and services. As a matter
of fact, we appreciate the opportunity to serve as a resource for the
District throughout the year, as the knowledge we gain helps us
during the year-end audit. If certain questions or request will
require a substantial amount of time (for example, such that we
would incur more than a few hours on a question), we will
promptly notify the District of this fact before proceeding. It is our
policy to ensure that there are no surprises regarding fees, and you
can be assured that we will not incur time that will be billed
separately without your express approval. It is our experience with
the District, and with our other clients, that virtually every "day-to-
day" question that arises during the year will be able to be covered
by the base audit fee.
Proposed Fees
As specified by the RFQ, all fee information will be submitted in a
sealed bid subsequent to the interview process.
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Appendix A — Selected Clients
Following is a representative sample of KPMG's clients in the energy and utility industries. As
you can see, many of these industries' most successful companies turn to KPMG for professional
services.
Electric Utilities Electric Utilities-continued Utility Services
AES Corporation Hawaiian Electric Industries ABB Lummus Crest,Inc.
Allegheny Energy, Inc. Heartland Consumers Power District ACCO
Aquila,Inc. KCP&L ARCADIS Geraghty&Miller,Inc.
3 Arkansas Power&Light Lincoln Electric System Bateman Engineering
Baltimore Gas&Electric Midamerican Energy Bayley Corporation
Carolina Power&Light Company Midwest Energy,Inc. Black&Veatch
Central Illinois Light Company Mirant Corporation Burns&Roe
Central Iowa Power Cooperative Niagara Mohawk Holdings,Inc. Charles Pankow Builders,
Central Nebraska Public Power and Norris Public Power District Carter&Burgess Inc.
Light Northeast Utilities CDI Engineering GroupDewberry
Chelan County PUD NRG Energy,Inc. &Davis
Chugach Electric Pacific Gas&Electric Edward Kramer&Sons
Irrigation District Peen Energy Company Flint Energy Services
Cinergy Potomac Electric Power Company Great Plains Locating
CMS Energy Corporation Public Service Electric and Gas Hensel Phelps Construction
Dominion Resources Reliant Energy Company
DQE,Inc. San Diego Gas&Electric Company J.A.Jones Construction Company
Douglas County PUD Siena Pacific Power Company Keith Companies
DTE Energy Company Southwestern Area Power Lend Lease Bovis
Duke Energy Corporation Administration Morse Diesel International
Duquesne Light Company Texas Utilities Company,Inc. PCL Enterprises,Inc.
�? El Paso Electric Company Western Area Power Administration Peter Kiewit Sons,Inc.
Entergy Corporation Natural Gas Distribution Piedmont,Olsen&Hensley
Exelon Corporation Castle Energy Corporation Pizzagalli Construction
FirstEnergy Kansas City Gas Services Company Skanska USA Inc.
Florida Power Corporation TIC Holdings,Inc.
Metropolitan Utilities District
Florida Progress Corporation Nebraska City Utilities The Walsh Group
FPL Group Northern Border Pipeline The Weitz Co.,Inc.
Georgia Power Company Oklahoma Natural Gas Company
Grand Island Utilities
7
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KPMG's Western Area
♦ The offices serve a broad range of public and
private companies across all lines of business
♦ All partners and professionals have market-
z.`st `3at
driven industry experience and represent
n harv1R
some of the leading business advisors within
;w their industries
♦ The Western Area includes strategically
located offices in Anchorage, Billings, Boise,
Honolulu, Los Angeles, Oakland, Orange
County, Phoenix, Portland, Sacramento, Salt
' Lake City, San Diego, San Francisco, Seattle,
t
and the Silicon Valley
4
Truckee Donner Public Utility District Page 1 1
Introduction to Your Team
♦ Tim McCann — Assurance Engagement Partner
Tim has served numerous government/utilities, as either the partner or concurring
partner, including Public Utility District Number 1 of Chelan County, Pend Oreille
PUD, Portland General Electric Company, Pierce County Sewer Utility, Tri-Met, Port
of Portland and the City of Portland. Tim has also served a number of other energy
companies involved in natural gas distribution, gas and electric marketing and
interstate transmission of energy. Tim has been in public accounting for 14 years
and has served utilities during virtually all of those years.
♦ Shane Philpot — Assurance Engagement Senior Manager
Shane is a leading manager in KPMG's government practice in the Pacific Northwest
with over 9 years of experience, and thus brings deep industry experience to your
engagement. He has served entities such as Chelan County PUD, Portland General
Electric, Pierce County Sewer Utility, Pend Oreille County PUD, Tri-Met, and the Port
of Portland. Shane is a licensed municipal auditor in the state of Oregon, and is a
GFOA Certificate of Achievement reviewer.
♦ Meghan Krafka — Assurance Engagement Senior
Meghan served the District as the in-charge on the engagement in the prior year.
From her previous experience she has gained intimate knowledge of the District's
processes, controls, accounting issues, financial statements, and personnel. Thus,
she brings valuable knowledge to the team and to the District.
4Ct
Truckee Danner Public Utility District Page 2
KPMG — Western Area Profile
z
Assurance Tax Total I
Partners
. � 195 100 295
h
Managers 520 348 868
Professional Staff 19023 472 11495
Administrative 572
E , TOTAL 39230
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Truckee Donner Public Utility District
Rage 3
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Global Market-Driven Approach
SECTORINFORMATION, HEALTH CARE
COMMUNICATIONS INDUSTRIAL CONSUMER FINANCIAL
& MARKETS MARKETS SERVICES ENERGY
ENTERTAINMENT PUBLIC
yi ` s ♦ Software& ♦ Health Care ♦ Industrial& ♦ Consumer ♦ Banking ♦ Generation
Information Providers Automotive Products
Services Products
r ♦ Insurance ♦ Distribution
♦ Federal ♦ Retail
♦ Electronics ♦State/Local Food&
Transportation ♦ Real Estate
♦ Transmission
♦ ♦
♦ Communications ♦ Chemicals& Beverage
♦ Higher Pharmaceuticals ♦ Marketing
♦ Media Education,
Research, ♦ Energy& ♦ Public Entities
Not-For-Profits Natural
Resources ♦ Private Entities
.. ♦ Exploration
and
Production
1'
4
Truckee Donner Public Utility District Page 4
Energy & Natural Resources Leadership
♦ CFO Energy Roundtables
— Hosted annually
— CFOs from the energy arena discuss issues impacting their industry
�,�, � ♦ Learning Initiatives
KPMG developed, with Dr, Horace Brock, the first advanced
petroleum accounting text offered by Prentice-Hall
KPMG energy partners have taught courses in oil and gas
accounting for the Professional Development Institute
♦ Board of Advisors Conference I
— Sponsored by KPMG
— An exclusive two-day event designed specifically for senior tax and
financial executives from the top energy companies
` — Provides educational, interactive forum that can help your company
' t better navigate the rapidly changing energy marketplace
Truckee Donner Public Utility District Page 5
We Serve Energy Market Leaders
♦ ABB Equity Ventures ♦ El Paso Electric Company ♦ Oklahoma Municipal Power
Authority
� „x, ♦ AEP ♦ Endesa Group Y
♦ AES Corporation ♦ Entergy Corporation ♦ ONEOK
♦ Allegheny Energy ♦ Exelon Generation ♦ Oxbow Power
♦ American Electric Power ♦ FPL Energy ♦ Pacific Gas & Electric
Company ♦ GE Capital Global Energy ♦ PDVSA
♦ American Hydropower ♦ Green Mountain Power Corporation ♦ PP&L Global
♦ American National Power ♦ Hawaiian Electric Industries ♦ Progress Energy
♦ Anadarko Petroleum ♦ Husky Energy ♦ Ranger Oil
♦ Aquila, Inc. (formerly UtiliCorp ♦ Hydro Electric USA Inc. ♦ Reliant Resources
United) ♦ Iberdrola ♦ Royal Dutch Shelf
♦ BHP Billiton ♦ Indeck Energy ♦ Scottish &Southern Energy
♦ Buckeye Power, Inc. ♦ Innogy Holdings ♦ Sempra Energy
♦ Caithness Energy ♦ InterGen ♦ Siemens Project Ventures
♦ Calpine Corporation ♦ International Power ♦ Singapore Power International
♦ Central Iowa Power ♦ Koch Industries ♦ Sinopec (National Chinese Oil)
Cooperative ♦ LG&E Energy ♦ Sithe Energy
♦ Central Louisiana Electric Co., ® Louisiana Energy and Power ♦ Southern Companies
Inc. Authority ♦ Southern Mineral
♦ Cinergy Corp. ♦ Midwest Energy Inc. ♦ Steag
r ♦ CMS Energy Corporation ♦ Monument Oil ♦ TECO Energy
♦ Connective, Inc. ♦ Murphy Oil ♦ Tennessee Valley Authority Inc.
♦ Constellation Energy ♦ National Grid ♦ Tractebel
♦ Devon Energy ♦ New World Power ♦ TransCanada Power
♦ Dominion Resources Inc. ® Northern Virginia Electric Cooperative ♦ TXU
♦ DTE Energy Company ♦ NRG Energy ♦ United American Energy Corp.
♦ Duke Energy ♦ Ocean Energy ♦ Vermont Electric Cooperative Inc.
♦ Dynergy,lnc. ♦ Oglethorpe Power Corporation ♦ Westmoreland Energy Company
♦ Edison International
Truckee Donner Public Utility District Paget
■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ M • M 0 M • s a • ® �.
A Leader in State and Local Government
♦ KPMG is the market leader in audit services for
large state and local government clients
u ♦ 100 partners and 330 managers firmwide are
dedicated to the government services practice
♦ KPMG's vice chairman of the Public Sector
practice currently serves as chairman for:
— The AICPA Expert Group on Government and Not-
for-Profits
— The U.S. Comptroller General's Government
Auditing Standards Advisory Council
F;
l SAS I
Truckee Danner Public Utility District Page 7
KPMG's Government Publications Add Value
' ♦ KPMG Pamphlets and Brochures
f
. — Audit Committees for State and Local
Governments
— Directors' and Officers' Liability: A Crisis in the
Making
} — Governmental Accounting and Reporting
4 Diagnostic Review
— KPMG's Guide to the Single Audit Act
41 Amendments and OMB Circular A-133
*` ► — KPMG's Measurement Focus and Basis of
Accounting: A Guide for State and Local
Governments
— Professionals in Risk Management
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t^
t`s Truckee Donner Public Utility District
f
Representative Western Area Government Clients*
States Counties
h; ♦ California ♦ Hawaii, HI
��,4r . ♦ Hawaii ♦ Los Angeles, CA
` ♦ Nevada
♦ Matanuska-Susitna Borough, AK
sar
♦ Oregon ♦ San Diego, CA
♦ San Francisco, CA
Cities ♦ Ventura, CA
♦ Anchorage, AK ♦ Washington, OR
♦ Burlingame, CA
♦ Lake Oswego, OR Other State & Local Entities
♦ Las Vegas, NV ♦ Chelan County Public Utility District No. 1
♦ Long Beach, CA ♦ Douglas County Public Utility District No. 1
♦ Nome, AK ♦ East Bay Municipal Utility District, Water System
♦ Oakland, CA ♦ Alaska Permanent Fund Corporation
♦ Portland, OR ♦ California Department of Conservation
♦ Sacramento, CA ♦ California State Lottery Commission
♦ San Francisco, CA ♦ Gila River Indian Community
♦ Santa Monica, CA ♦ Oahu Transit Services, Inc.
♦ Thousand Oaks, CA ♦ Oakland Unified School District
♦ Torrence, CA ♦ Santa Clara Valley Transit Authority
♦ Seattle Housing Authority
*Audit and/or business advisory services ♦ Trl-Met
Truckee Donner Public Utility District Page 9
- - - -- -- - - - - - - - - - - - - - - - - - - - -
KPMG's Audit Approach (BMP)
a' ♦ Forward-looking, no surprises
♦ Focus : Business objectives, strategies, risks
♦ Comparison :
Traditional Audit BMP
Bottom-up look at Top-down look
Focus financial statements at total business
Transaction-based, Risk-based, with
Approach year-end auditing year-round interaction
Communication Periodic, mostly formal Frequent, formal
and informal
Truckee Danner Public Utility District Page 10
I
- - - - - - - - - -
7
KPMG's Audit Approach (BMP)
' ♦ BMP is an audit of your total organization:
Maximizes knowledge of industry issues, strategic
risks, business processes, and reporting
requirements
- Focuses on the most significant risks in your
financial statements
- Understands the importance of controls, especially
IT controls, in the functioning of
your organization
♦ A no-surprises, holistic approach
Page 11
Truckee Donner Public Utility District
. - .. - •- - - - - - - - - - - - - - - - - -
Leading the Profession
�" ` ` ♦ First firm to develop risk-based methodology;
other Big Five firms have followed
♦ Many clients have adopted BMP principles to
improve their internal audit processes
♦ Respected academics and business schools use
BMP methodology case studies to teach
accounting students
Truckee Danner Public Utility District Page 12
Commitment to Quality
♦ Department of Professional Practice
♦ Assurance and Advisory Services Center
♦ Washington National Tax Practice
♦ International Tax Centers of Excellence
♦ Peer Reviews
M
♦ Client Evaluations
rr
Truckee Donner Public Utility District Page 1.3
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Representative Western Area Clients
♦ adidas America ♦ Mentor Graphics Corporation
'' ♦ Alaska Gas Commercialization ♦ Microsoft Corporation
` Joint Study ♦ Municipality of Anchorage
♦ Arctic Slope Regional Corporation ♦ Paul Allen Group, (The) and
♦ AT&T Wireless Related Entities
Bank of Sacramento ♦ Pope & Talbot, Inc.
♦ Blue Diamond Growers ♦ Potlatch Corporation
♦ Boise ♦ Raley's, Inc.
♦ Borough of Matanuska-Susitna ♦ RealNetworks, Inc.
♦ CNF Inc. ♦ Sierra-Nevada Brewing Co.
♦ Costco Wholesale Corp. ♦ Stillwater Mining Co.
♦ Freightliner LLC ♦ Sunsweet Growers, Inc.
♦ Glacier Bancorp, Inc. ♦ Tektronix, Inc.
♦ Hoffman Construction ♦ Triquint Semiconductor, Inc.
♦ ILX Lightwave Corporation ♦ Wacker Siltronic Corporation
♦ InFocus Corporation ♦ Washington Mutual
♦ J.R. Simplot Company ♦ Westfarm Foods
♦ Lanoga Corporation ♦ Weyerhaeuser Company
♦ Lithia Motors, Inc. ♦ Yellowstone County
Page 14
Truckee Donner Public Utility District
A Smooth Transition
♦ Continuity of Team Members
,s. ♦ Continuity of Knowledge and Intellectual Property
♦ Continuity of Audit Approach
— KPMG and Andersen approaches are both risk-based
— Focus on business risks and processes
♦ The key to a smooth transition is having a knowledgeable transition
team to hit the ground running. We have that.
♦ We are confident that our team's knowledge and experience in the
public utility industry will translate directly into a smooth transition.
♦ It will also provide an immediate boost in the value of your audit
function. We are committed to making this a seamless transition for
Truckee Donner.
♦ We believe this transition is our issue, not yours.
♦ A representative sample of clients that have recently made the
transition to KPMG include: Tower Records, Sav-Mart, Inc., Sunkist
Growers, Sunsweet Growers, Tanimura & Antle, and Trico Bancshares.
Truckee Danner Public Utility District Page 19
Why KPMG?
♦ Depth and breadth of capabilities
♦ Deep industry focus and thought leadership in
industry and in serving entities within
government arena
♦ Excellent national structure/support and focus
on emerging regulatory issues facing boards of
directors and management
♦ Technical excellence and depth
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n ,Aa
Truckee Donner Public Utility District Page 16
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