Title Page
Proposal to provide professional
audit services to:
The City of Redondo Beach, California
Prepared by:
Request for proposal's subject Audit Services Request for Proposals - RFP #2324-007 Firm's name CliftonLarsonAllen LLP (CLA)
Robert J. Callanan, CPA, Principal
Address and telephone number 2875 Michelle Drive, Suite 300 of contact person Irvine, CA 92606
Direct 714-795-5354 | [email protected]
Date of the proposal February 13, 2024
CLAconnect.com.
CPAS | CONSULTANTS | WEALTH ADVISORS
LA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaime vestment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment adviso ©2024 CliftonLarsonAllen LLP
Table of Contents
Transmittal Letter..
Technical Qualifications..
1. General Requirements
Executive summary..
2. Independence.....
3. License to Practice in California 6
4. Insurance.. 6
5. Firm's Qualifications and Experience.. 6
Size of the firm.... 6
State and local government experience. ..8
Size of firm's governmental audit staff .. .. 10
Single audit experience.. .. 10
Certificate of achievement assistance.. 11
Office location assigned to manage the engagement .. 13 Number and nature of professional staff to be employed on this engagement. 13 Quality control procedures and peer review report... ..14 Federal or state desk or field reviews .. 14
6. Partner, Supervisory and Staff Qualifications and Experience.. 15 Continuing education program. 17
Continuity of service 18
Right to approve or reject replacements ... 18
7. Similar Engagements with other Governmental Entities . 19 References 19
Similar engagements with other government entities.. 21
8. Specific Audit Approach. .. 22
Easing the transition ...22
The CLA Seamless Assurance Advantage (SAA) .. ...22
Financial statement audit approach.. ...23
Single audit approach... ...27
Communication process. ..29
Use of technology in the audit ...30
9. Identification of Anticipated Potential Audit Problems. 36 Price. 36
1. Total all-inclusive maximum price .... 36
2. Schedule of professional fees and expenses 36
3. Out-of-pocket expenses included in the total all-inclusive maximum price 43
4. Rates for additional professional services. 43
5. Manner of payment. 43
Appendix... 44
A. Your service team biographies.. 44
B. Peer review report 54
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CliftonLarsonAllen LLP
CLAconnect.com
Transmittal Letter
February 13, 2024
Ms. Wendy Collazo, Financial Services Director
City of Redondo Beach
415 Diamond Street, Door 1
Redondo Beach, CA 90277
Dear Ms. Collazo:
Thank you for inviting us to propose. We look forward to the opportunity to provide services to the City of Redondo Beach, California (the City).
1. Understanding of the work to be done
CLA has read and understands the work to be done as outlined in the City's Audit Services Request for Proposals (RFP) section titled II. Nature of Services Required, A. Scope of Work.
2. Commitment to perform within the time period
We are committed to perform the work within the time period specified in the City's RFP.
3. Statement of why CLA believes itself to be the best qualified to perform the engagement CLA believes that we are the best qualified to perform the engagement because we serve more than 4,200 state and local governments across the country, including more than 2,160 in the West Region of
4. Statement committing on-site audit staff will work the City's hours CLA commits to our on-site audit staff working the City's hours during the interim and year-end fieldwork phases of the audit.
5. Statement committing the PBC list be provided to the City CLA commits that the Prepared By Client (PBC) list will be provided to the City no later than one month before the beginning of both interim and year-end fieldwork.
6. Commitment to perform all follow up necessary
CLA commits to performing all follow up necessary to collect all outstanding attorney confirmation letters to make sure that the audit is final on the date due.
7. Statement that the proposal is a firm and irrevocable offer CLA's proposal is a firm and irrevocable offer for 60 days. =A ©2024 CliftonLarsonAllen LLP | 2
CLA differentiators
We are confident that our extensive experience serving similar governmental entities, bolstered by our client-oriented philosophy and depth of resources, will make CLA a top qualified candidate to fulfill the scope of your engagement. The following differentiators are offered for the City's consideration:
• Industry-specialized insight and resources - As one of the nation's leading professional services firms, and one of the largest firms who specialize in regulated industries, CLA has the experience and resources to assist the City with their audit needs. In addition to your experienced local engagement team, the City will have access to one of the country's largest and most knowledgeable pools of regulated industry resources.
• OMB Uniform Guidance (UG) experience - CLA performs single audits for hundreds of organizations annually, ranking top in the nation for the number of single audits performed by any CPA firm. The single audit requires a specific set of skills to properly perform the procedures. As such, we have developed a group of professionals who specialize in providing single audit services. • Strong methodology and responsive timeline - In forming our overall audit approach, we have carefully reviewed the RFP and other information made available and considered our experience performing similar work for other municipalities. Our local government clients are included amongst the more than 4,200 governmental organizations we serve nationally. Our staff understands your complexities not just from a compliance standpoint, but also from an operational point of view. The work plan also minimizes the disruption of your staff and operations and provides a blueprint for timely delivery of your required reports.
Communication and proactive leadership - The City will benefit from a high level of hands-on service from our team's senior professionals. We can provide this level of service because, unlike other national firms, our principal-to-staff ratio is similar to smaller firms - allowing our senior level professionals to be involved and immediately available throughout the entire engagement process.
Our approach helps members of the engagement team stay abreast of key issues at the City and take an active role in addressing them.
• A focus on providing consistent, dependable service - We differ from other national firms in that our corporate practice focuses on the needs of non-SEC clients, thus allowing us to avoid the workload compression typically experienced by firms that must meet public companies' SEC filing deadlines. CLA is organized into industry teams, affording our clients with specialized industry- specific knowledge supplemented by valuable local service and insight. Therefore, the City will enjoy the service of members of our state and local government services team who understand the issues and environment critical to governmental entities.
• Fresh perspective - By engaging CLA, the City will benefit from a fresh look at its business operations, information systems, and financial risk management policies and procedures. You will be erved by an engagement team with enthusiasm and a desire to meet and exceed expectations. We are confident that our industry experience will bring to the City new ideas, creative approaches, and fresh opportunities to meet the financial management and accountability challenges before the City. =OTO ©2024 CliftonLarsonAllen LLP | 3
We want to serve you and we have the qualifications to deliver quality, timely work. Throughout this proposal, we take you on a journey outlining how we'll work together and the value you can come to appreciate when we exceed expectations. For ease of evaluation, the structure of our proposal follows your RFP section titled, VI. Proposal Requirements.
Please contact me if I can provide additional information on our firm or our proposal.
Sincerely,
CliftonLarsonAllen LLP
Robert f Callanan
Robert (Bob) J. Callanan, CPA
Principal
714-795-5354
[email protected]
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Technical Qualifications
1. General Requirements
Executive summary
You deserve to work with people whose values match your own. Our values drive our behavior and lead to service delivery that exceeds expectations and provides you with the CLA client experience.
What does that mean? It means you'll work with a team with the resources to support the whole of your organization. You can count on industry specialized professionals who bring ideas and strategies that are relevant and actionable. Quite simply, you'll encounter value beyond the expected.
We put relationships first. Our family culture is at the center of our success, and we invite different beliefs and perspectives to the table, so we can truly know and help our clients, our communities, and each other. Here's what you can experience.
Ô
Curious Collaborative Transparent Inclusive Reliable
We care, we listen, We help you seamlessly, We communicate clearly We embrace all voices We respond in hours, not we get to know you bringing innovative and authentically and create opportunities protect our client aga, teams to the table for you in an energetic
and inspiring environment and produce quality
results
Your time is valuable: We know how to deliver quality, timely work, and we take care of the details so you can focus on what really matters: the important decisions that drive your success.
Please see the following pages for our proposal response to items 2 through 9, and Section C. Price, as specified in the City's RFP. As you will see from our proposal, CLA has the qualifications, competence, and capacity to undertake an independent audit of the City in conformity with the requirements of the City's RFP.
2. Independence
CLA and all professionals assigned to this engagement are independent of the City and all component units of the City under the American Institute of Certified Public Accountant's Code of Professional Conduct and its interpretations, the U.S. Government Accountability Office's Government Auditing Standards, and the U.S.
Department of Labor's 29 CFR 2509.75-9 Interpretive Bulletin and the independence rules of the Public Company Accounting Oversight Board (PCAOB) and/or the U.S. Securities and Exchange Commission, as required. Our firm-wide quality control policies and procedures foster strict compliance with these professional standards.
Professional relationships
CLA has no known previous relationships involving the City or its component units within the past five years.
Should any such professional relationships develop during the period of this engagement, we would give the City written notice.
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3. License to Practice in California
CLA is a limited liability partnership and is duly licensed to practice public accountancy in the state of California as well as all assigned key professional staff providing services to the City. A copy of our state license is provided below:
BOARD OF ACCOUNTANCY ISSUANCE DATE
JULY 27,2005
LICENSING DETAILS FOR: 7083
NAME: CLIFTONLARGONALLEN LLP EXPIRATION DATE
LICENSE TYPE: CFA - PARTNEROHIPS JULY 31, 2024
LICENSE STATUS: CLEAR
CURRENT BATE I TIME
PREVIOUS NAMES: LARZONALLEN LLP • LARION, ALLEN, WEISHAIR & GO., LUP
ADDRESS JUNE REA
915 HISHLAND FOINTE DR OTE 300
ROSEVILLE CA 95578
PLACER COUNTY
4. Insurance
CLA carries commercially reasonable amounts of professional liability insurance. If requested, the firm will provide a certificate of coverage for an amount specified by the City upon being engaged.
5. Firm's Qualifications and Experience
Size of the firm
It takes balance. With CLA by your side, you can find everything you need in one firm. Professionally or personally, big or small, we can help you discover opportunities and bring balance to get you where you want to 8,500+ CLARE AND ON DOLORS
CLA professionals
across nearly #8 200k+ $8M+
130
locations with global
reach as an
independent network COUNTING TOD Great
member of A DANCIN
Place
CLA #53 #4 Work.
Certified
Global JAN 2023 JAN 2024
As a professional services firm with more than 8,500 professionals in 130 locations, we exist to create opportunities ... for you, our people, and our communities through industry-focused wealth advisory, digital, ©2024 CliftonLarsonAllen LLP | 6
audit, tax, consulting, and outsourcing services. We do this when we live the CLA Promise — a promise to know you and help you.
Opportunities for you
You'll find resources you would expect in the largest
firms, with the personal touch of people who live
and work in your community. Deep industry Inspired
specialization careers
You'll access leaders and professionals in
communities across the country, rather than from
one central headquarters. We work together to look
at your organization holistically, and then help you
address challenges by offering support where you
need it, from traditional audit and tax to outsourcing
and wealth advisory.
Premiere
As you navigate opportunities and challenges in a Seamless, integrated resource for
competitive and constantly changing environment, organizations and capabilities
we'll embrace change, learn from it, and design their stakeholders processes to make interactions easier, more
transparent, and seamless.
Opportunities for our people
At CLA, people find meaningful work in a fun, compelling, and energizing culture. Our people design their own customized careers through our inspired careers strategic advantage. in 2022 our total headcount was up a record-breaking 11% and we saw an incredible retention rate of 83%. Inspired by their careers, our family members develop client relationships that bring deeper knowledge and help you shine. We're one family, working together to create opportunities.
What's more, CLA is building a diverse, inclusive, equitable and belonging culture that welcomes different beliefs and perspectives. We want to be representative of the communities we serve and foster an environment of inclusion and belonging, resulting in enhanced value for our clients, our communities, and each other.
Inclusive: We embrace all voices and create opportunities by removing barriers and helping our people build inspired careers.
Opportunities for our community
CLA's community impact team unifies the work and missions of our diversity, equity, and inclusion council and the CLA Foundation with a laser focus on advancing education, employment, and entrepreneurship within CLA and throughout our society.
Since 2015, our CLA Foundation has granted more than $8 million from nominations made by and funds raised from CLA family members. Each grant recipient's work aligns with the foundation's mission to create career opportunities through education, employment, and entrepreneurship by connecting diverse networks inclusive of all genders and races, veterans, and the disability community.
Read more in CLA's annual Promise Report.
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State and local government experience
You can benefit from a close personal connection with a team of professionals devoted to governments. Our goal is to become familiar with all aspects of your operations - not just the information needed for the year- end audit so that we can offer proactive approaches in the areas that matter most to you:
• Finding new ways to operate more effectively and efficiently • Responding to regulatory pressures and complexities
• Maintaining quality services in the face of revenue reductions Providing transparent, accurate, and meaningful financial information to stakeholders, decision-makers, and your constituents
We understand the legislative changes, funding challenges, compliance responsibilities, and risk management duties that impact you. Our experienced government services team can help you navigate the challenges of today, all while seamlessly strategizing for the future.
CREATING
OPPORTUNITIES
FOR OUR
CLIENTS 4,200+
GOVERNMENT ENTITIES
SERVED
$175+
MILLION
IN REVENUE
60+ 600+
YEARS IN BUSINESS PROFESSIONALS
PROVIDING CONSULTING AND OUTSOURCING,
AUDIT, TAX, AND DIGITAL SOLUTIONS
Deep industry connections
CLA actively supports industry education as a thought leader and industry speaker. We focus on supporting the educational needs of
GFOA AGA ALGA
the industry through nationally sponsored trade events. Our team of professionals is sought after, both as educators and as experienced speakers who are invited to speak and teach at major professional events by leading trade associations, including those shown here. NASACT NASC NSAA We are also actively involved in and/or are members of the following professional organizations:
• American Institute of Certified Public Accountants (AICPA) • AICPA's State and Local Government Expert Panel
• AICPA's Government Audit Quality Center (GAQC)
Government Finance Officers Association (GFOA)
Special Review Committee for the GOA's Certificate of Achievement for Excellence in Financial Reporting (Certificate) Program
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• AICPA Single Audit Quality Task Force
• Association of Government Accountants
Our involvement in these professional organizations, combined with various technical services we subscribe to, allows use to be at the forefront of change in the constantly changing government environment. We take our responsibility for staying current with new accounting pronouncements, auditing standards, other professional standards and laws and regulations seriously.
Insight to strengthen your organization
When you're ready to go beyond the numbers to find value-added strategies, we offer resources to help you respond to challenges and opportunities including:
• National webinars — Access complimentary professional development opportunities for your team. • Articles and white papers - Stay current on industry information as issues arise.
Curious: We care, we listen, we get to know you.
Support at every turn
With dedicated services specific to state and local governments, you have access to guidance on all aspects of your operations.
Planning, capital, Improving
succession, and efficiency
transition and results
• Affordable Care Act (ACA) reporting and compliance
• Audit, review, and compilation of financial statements Data analytics, Domestic and Insight, and digital
• Compliance audits (HUD, OMB Single Audits) global matters strategy and solutions
• COVID-19 funding support Opportunity
Wheel
• Cybersecurity Workforce and Cybersecurity
recrulting and tick
• Enterprise risk management management
• Forensic accounting, auditing, and fraud investigation Finance
• Fraud risk management Goverance ano accounting.
regulations podt. and taxes
• Grant compliance
• Implementation assistance for complex Governmental Accounting Standards Board (GASB) statements
Internal audit
• Outsourced business operations
• Performance auditing
• Purchase card (p-card) monitoring and analytics
Risk assessments
• Strategic, financial, and operational consulting
• Telecom management services
Independence can easily become impaired when providing consulting services; therefore, we do not provide any services to our audit clients beyond those allowed. If additional work is requested by the City outside of the scope of the audit, we will discuss with you our proposed fee for additional services prior to beginning the new services.
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Size of firm's governmental audit staff
With more than 550 professionals dedicated to our state and local government practice, CLA has one of the largest governmental audit and consulting practices in the country and brings extensive experience providing a variety of such services to state and local government entities. Our state and local government team serves more than 4,200 governmental engagements nationwide, including numerous cities, counties, municipalities, states and state agencies, and school boards. In addition, we perform single audits for hundreds of organizations annually, ranking top in the nation for the number of single audits performed by any CPA firm.
Single audit experience
CLA performs the largest number of single audits in the United States. We audited nearly $257 billion dollars in federal funds in 2022. The chart below illustrates CLA's experience in serving organizations that receive federal funds and demonstrates our firm's dedication to serving the government and nonprofit industry.
NUMBER OF SINGLE AUDITS PERFORMED*
CLA 1,693
Eide Bailly || 920
FORVIS 785
Baker Tilly 685
Plante & Moran 627
Wipfli 502
CohnReznick 434
RSM 401
PKF O'Connor Davis 355 *The information for the firms above was pulled from the Federal Audit Clearinghouse for audits for fiscal year ends Mauldin & Jenkins 321 between January 1, 2022 - December 31, 2022.
It is more important than ever to find qualified auditors who have significant experience with federal grants specific to the City and can enhance the quality of the City's single audit. Therefore, the single audit will be performed by a team of individuals who are managed by personnel who specialize in single audits in accordance with OMB's Uniform Guidance and who can offer both knowledge and quality for the City. As part of our quality control process, the single audit will be reviewed by a firm Designated Single Audit Reviewer.
You'll need an audit firm experienced in performing single audits and a familiarity with the specific programs in which you are involved and will benefit from CLA's experience in this area.
Single Audit Resource Center (SARC) award
CLA received the Single Audit Resource Center (SARC) Award for Excellence SA Single Audit in Knowledge, Value, and Overall Client Satisfaction. SARC's award RC Resource Center recognizes audit firms that provide an outstanding service to their clients based on feedback received from an independent survey.
The survey queried more than 10,000 nonprofit and government entities about the knowledge of their auditors, the value of their service, and overall satisfaction with their 2021 fiscal year-end audit. The SARC award demonstrates CLA's dedication to serving the government and nonprofit industry and maintaining the most stringent regulatory requirements in those sectors.
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Certificate of achievement assistance
The Government Finance Officers Association (GOA) Certificate of Achievement for Excellence in Financial Reporting is awarded to state and local governments that go beyond the minimum requirements of generally accepted accounting principles. It is awarded to state and local governments who produce an annual comprehensive financial report that evidences the spirit of transparency and full disclosure. Members of the GFOA staff and the GOA Special Review Committee (SRC) review reports submitted to the ACR program.
CLA provides audit services to many entities that received the GOA Certificate of Excellence in Financial Report.
All of the procedures noted in our audit approach and our technical review of the ACR are done to help the City prepare and publish the top product possible. Our managers and principals who review the ACFR have a strong understanding of the GOA requirement for the certificate. We understand that this is a prestigious award for the City and a great accomplishment for the Finance and Accounting departments.
We will review the GOA comment letter for each ACFR and provide the City advice regarding the response to the GOA reviewer's comments. Our procedures with respect to the ACFR will be the review of the comments from GOA on the prior year submission to determine they were adequately addressed, completion of the ACFR checklist, and review of the transmittal letter and statistical data to determine that information presented is reasonable and agrees with the information in the financial statements and management's discussion and analysis (MD&A), where applicable.
We understand the interrelationships of the many and varied components of a governmental entity's financial statements, allowing us to quickly determine errors or problems with the financial statements. Our depth of knowledge and experience also allows us to assist the City with the preparation of the AFR and improvement of the City's financial statements.
Our involvement with clients in the GOA Certificate program helps to determine that we are on the leading edge of reporting trends and techniques. We have been engaged by various entities to review their statements for compliance with program requirements. We have aided clients in the early implementation of professional pronouncements and regularly provide our clients with updates on new pronouncements which will affect them and will do the same for the City.
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The table below identifies the professionals who are currently members of the GOA Special Review Committee together with their length of service with the Committee.
Name Title Location Years Served
Robert J. Callanan, CPA Principal Irvine, CA 10+
Signing Sebring, FL 10+
Julie S. Fowler, CPA Director
Richard Gonzalez, CPA Principal Roseville, CA 10+
Michelle Hoffman, CPA Principal Minneapolis, MN 6+
Christopher Kessler, CPA Principal Fort Myers, FL 4+
Christopher G. Knopik, CPA, CFE Principal Minneapolis, MN 7+ Jacob S. Lenell, CPA Principal Milwaukee, WI 12+
Daphnie Munoz, CPA Principal Irvine, CA 10+
Remi Omisore, CPA Principal Baltimore, MD 11+
Jeffrey Peek, CPA Principal Roseville, CA 4+
Sue Pessano, CPA Director Tampa, FL 1+
Signing Wauwatosa, WI 3+
Shannon D. Small, CPA, MPA Director
Miranda Wendlandt, CPA, CFE Principal Alexandria, MN 5+ J
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Office location assigned to manage the engagement
Our firm matches the necessary skill set to an engagement before considering the geographic location of the staff. Assigning team members who specialize in working with similar clients can provide the City higher-quality services and allows us to complete the engagement in a more efficient and effective manner with little interruption to your staff.
CLA has eight office locations in California. The City will be served by an industry-specialized engagement team located in our Irvine, California office at the address below.
CLA Irvine
2875 Michelle Drive, Suite 300
Irvine, CA 92606
The Irvine office has 15 professionals solely focused on providing high quality accounting, auditing, and consulting services to California municipalities, special districts, school districts, community colleges and other government entities.
Number and nature of professional staff to be employed on this engagement The table below provides a breakdown by staff level and denotes full- or part-time status of the engagement team that will serve the City. This team has extensive experience working with clients similar to the City.
Level of Staff Full-Time Staff Part-Time Staff
Principal 1 1
Director 1
Senior 1
Associate 1 1
Total 4 2
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Quality control procedures and peer review report
In the most recent peer review report, dated November 2022, we received a rating of pass, which is the most positive report a firm can receive. We are proud of this accomplishment and its strong evidence of our commitment to technical excellence and quality service. The full report is provided in the Appendix of this proposal. This quality control review included a review of specific government engagements.
In addition to an external peer review, we have implemented an intensive internal quality control system to provide reasonable assurance that the firm and our personnel comply with professional standards and applicable legal and regulatory requirements. Our quality control system includes the following:
• A quality control document that dictates the quality control policies of our firm. In many cases, these policies exceed the requirements of standard setters and regulatory bodies. Firm leadership promotes and demonstrates a culture of quality that is pervasive throughout the firm's operations. To monitor our adherence to our policies and procedures, and to foster quality and accuracy in our services, internal inspections are performed annually.
• Quality control standards as prescribed by the AICPA. The engagement principal is involved in the planning, fieldwork, and post-fieldwork review. In addition, an appropriately experienced professional performs a risk- based second review of the engagement prior to issuance of the reports. • Hiring decisions and professional development programs designed so personnel possess the competence, capabilities, and commitment to ethical principles, including independence, integrity, and objectivity, to perform our services with due professional care.
• An annual internal inspection program to monitor compliance with CLA's quality control policies.
Workpapers from a representative sample of engagements are reviewed and improvements to our practices and processes are made, if necessary, based on the results of the internal inspection. • Strict adherence to the AICPA's rules of professional conduct, which specifically require maintaining the confidentiality of client records and information. Privacy and trust are implicit in the accounting profession, and CLA strives to act in a way that will honor the public trust. • A requirement that all single audit engagements be reviewed by a designated single audit reviewer, thereby confirming we are in compliance with the standards set forth in the Uniform Guidance.
Federal or state desk or field reviews
CLA has been subject to several federal and state desk reviews by state oversight agencies during the past three years, and we have resolved all findings. In addition, our government audits are subject to review by each agency's Office of Inspector General, as well as the U.S. Government Accountability Office, and we have also resolved all findings identified in those reviews.
Professional ethics and regulatory issues or complaints against team members From time to time, individuals in the firm are parties to an inquiry from a regulatory or ethics body. In all cases the individual, with the firm's backing, shall cooperate in providing the information required to respond appropriately to the inquiry.
The firm and professionals within the firm presently do not have any regulatory or ethics inquiries outside the normal course of our practice.
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Litigation
From time to time, the firm is a defendant in lawsuits involving alleged professional malpractice. In all cases, the firm believes that it has a strong position and intends to defend it vigorously. Should the ultimate outcome be unfavorable, however, net of the deductible provisions of the firm's malpractice insurance, all cases are expected to be fully covered by insurance and will not have a material impact on the firm or its ability to perform these services.
Moreover, in those cases where claims have been resolved by settlement (the vast majority of our cases), the firm is typically subject to confidentiality agreements that prohibit the disclosure of information regarding those matters. Disclosure by the firm of any details about those matters could invalidate the settlement agreements.
6. Partner, Supervisory and Staff Qualifications and
Experience
The true value in working with our team is developing a personal and professional relationship with leaders who understand your industry, challenges, and opportunities — with the full support of an entire CLA family behind them.
Meet your service team below. Biographies and CPE for each team member may be found in the Appendix of this proposal.
Years' Licensed
Engagement Team Role CPA in
Member Experience CA
Engagement principal - Robert
Callanan will have overall engagement
responsibility including planning the
engagement, developing the audit
approach, supervising staff, and
Robert Callanan, CPA maintaining client contact throughout 30+ Yes
Principal the engagement and throughout the
year. Bob is responsible for total client
satisfaction through the deployment of
all required resources and continuous
communication with management and
the engagement team.
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7 Licensed
Engagement Team Years' CPA in
Role Experience
Member CA
Engagement director - Rebecca
Hoang will act as the lead director on
the engagement. In this role,
Rebecca will assist the engagement
principal with planning the
Rebecca Hoang Tai, CPA engagement and performing
complex audit areas. She will 12+ Yes
Director
perform a technical review of all
work performed and is responsible
for the review of the annual
comprehensive financial report and
all related reports.
Senior - Stephen Coverstone will
be responsible for the day-to-day
Stephen Coverstone, CPA activities for Yes
5+
Senior this engagement, including the
supervision of all staff assigned.
Additional staff - We will assign additional staff to your engagement based on your needs and their experience providing services to similar clients.
Collaborative: Support from a responsive local team complemented by national resources. We consider the whole of your organization, bringing innovative teams to the table.
J
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Continuing education program
To maintain and expand our assurance knowledge, we consistently provide continuing education for our professionals. Each member of our professional team, including principals, attends at least 40 hours of technical training annually. Individuals are required to familiarize themselves with all current changes in standards and procedures. Updated information on recent changes in technical standards and regulations, as well as the firm's professional policies and procedures, is distributed to our team members on a regular basis.
CLA professionals are specifically trained in the industry at a level beyond our competitors.
On-the-job Tailored Specialized Effective continuing
training training recruiting professional
education
Our professionals When providing Our on-campus
focus on serving a instruction in our basic recruiting aggressively Our greatest strength is specific industry. So. CPA, consulting, and seeks individuals with the talent of our staff. the team chosen to advisory classes, we Industry focused Our professionals tailor the entire degrees and/or provide more efficient serve you is
continuously exposed discussion, examples, backgrounds We focus and effective services to and trained on and exercises to apply to on identifying top due to the new ideas clients in their specific candidates for our they implement from issues impacting
entities like yours industry focus. clients: our in-depth training white performing their and continuing
day-to-day work. professional education.
CLA's firm-wide training programs include:
• Learn-Designed for new CLA associates, this five-day conference is typically attended in the first year of employment. This internally developed and presented training focuses on preparing new hires and interns to understand and perform their role in the audit process. Providing a combination of an introduction to CLA Strategy, business risk and independence with audit theory using hands-on exercises and simulations to introduce our audit methodology, tools, and software. Specific audit areas covered include audit planning, cash, fixed assets, accounts payable, and financial statement preparation. • Experience-Designed for the CLA associate with about one year of experience, this four-day conference is typically attended in the second year of employment. This training is similar to the "Learn" training outlined above but at a deeper level.
• Achieve-Designed for the CLA associate with about two years of experience, this four-day conference is typically attended in the third year of employment. This internally developed and presented training focuses on leadership and performance management of audit engagements utilizing CLA audit methodology from the perspective of the experienced in-charge. This is a highly interactive session covering the experienced in- charge's role and challenges in the audit process and prepares participants to manage and perform efficient and effective audits.
• Propel-Designed for the CLA associate with about three years of experience, this four-day conference is typically attended in the fourth year of employment. This training focuses on project management of audit engagements from start to finish and includes exercises and case studies on improving the audit, supervision, analytical procedures, and tests of controls, and identifying and responding to fraud risks. This session is taught by an external instructor from 20/20 Services. =( ©2024 CliftonLarsonAllen LLP | 17
Continuity of service
We are committed to providing continuity throughout this engagement. It is our policy to maintain the same staff throughout an engagement, providing maximum efficiency and keeping the learning curve low. With a solid, steady engagement team, each year brings the additional benefits of trust and familiarity. We are also flexible in exploring alternative strategies to non-mandatory rotation policies.
In any business, however, turnover is inevitable. If and when it happens, we will provide summaries of suggested replacements and will discuss re-assignments prior to finalizing. We have a number of qualified staff members to provide the City with quality service over the term of the engagement.
CLA is committed to maintaining high staff retention rates, which we believe are a strong indicator of service quality. High retention rates also indicate that our staff members have the resources they need to perform their tasks and maintain a positive work/life balance.
Right to approve or reject replacements
Engagement principals, managers, other supervisory staff, and professionals may be changed if those personnel leave the firm, are promoted, or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the City. In all instances, the City would retain the right to approve or reject replacements.
Consultants and firm specialists mentioned in the response to this request for proposal may be changed with express prior written permission of the City, which retains the right to approve or reject replacements.
Any other audit personnel may be changed at the discretion of the proposer, provided that replacements have substantially the same or better qualifications or experience. =AO ©2024 CliftonLarsonAllen LLP | 18
7. Similar Engagements with other Governmental
Entities
References
Our clients say it best. And their independent, authentic perspective is invaluable in learning about the experience you'll have when working with us. We encourage you to connect with our clients to hear it firsthand.
City of Escondido, CA
Financial statement audit, agreed upon procedures, single Scope of Work audit, GASB Lease services, consulting
Dates 2022 to Present
Engagement Principals) Robert Callanan
Total Hours 450
Client Contact Name and Phone Number Christina Holmes | 760-839-4620 City of Signal Hill, CA
Financial statement audit, agreed upon procedures, single Scope of Work audit, compilation of State Controller's reports Dates 2018 to 2022
Engagement Principal(s) Robert Callanan
Total Hours 350
Client Contact Name and Phone Number Sharon del Rosario | 562-989-7319 =NO ©2024 CliftonLarsonAllen LLP | 19
City of Norco, CA
Financial statement audit, fund financial statement audit Scope of Work agreed upon procedures, compilation of State Controller's report, single audit
Dates 2015 to Present
Engagement Principal(s) Robert Callanan and Nitin Patel Total Hours 425
Client Contact Name and Phone Number Lisette Free | 951-270-5652 City of Rancho Palos Verdes, CA
Financial statement audit, fund financial statement audit, Scope of Work agreed upon procedures, compilations of State Controller's reports, single audit
Dates 2018 to Present
Engagement Principal Robert Callanan
Total Hours 400
Client Contact Name and Phone Number Vina Ramos | 310-544-5278 City of Camarillo, CA
Financial statement audit, agreed upon procedures,
Scope of Work
compilation of State Controller's report, single audit
Dates 2022 to Present
Engagement Principals Robert Callanan and Joe Ludin
Total Hours 425
Client Contact Name and Phone Number Mark Uribe | 805-388-5321 Transparent: We place honesty and integrity at the center of all communication.
We welcome you to start an open and candid conversation with those who know us best.
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Similar engagements with other government entities
Please see the sample listing below of similar governmental clients served from our Irvine, California office. - City of Alhambra City of Hesperia _ City of Portola
City of Banning City of Industry . City of Rancho Palos Verdes City of Benicia City of Irvine , City of Redding
City of Burbank City of La Cañada Flintridge - City of San Buenaventura City of Camarillo City of La Habra - City Of Sand City
• City of Carisbad City of La Palma City of Santa Ana
• City of Carmel-by-the-Sea City of Lake Forest - City of Santa Barbara - City of Cerritos City of Long Beach - City of Santa Fe Springs City of Chico City of McFarland . City of Temple City
City of Colton City of Monterey Park _ City of Vernon
City of Covina City of Murrieta , City of Victorville
, City of Del Mar City of Norco
• City of El Segundo City of Pasadena
• City of Escondido City of Pico Rivera
• City of Fillmore City of Placentia
/ City of Glendale City of Porterville
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8. Specific Audit Approach
Easing the transition
We recognize that a move to a new firm presents an opportunity as well as a challenge. Over our 60-year history, we have transitioned many clients and have a collegial and professional relationship with many firms.
Our seamless transition helps reduce your team's time, and we don't charge for it. We consider it an investment in our relationship.
The CLA Seamless Assurance Advantage (SAA)
The CLA Seamless Assurance Advantage (SAA) is an innovative approach to auditing that utilizes leading technologies, analytics, and audit methods to help solve client problems and create a seamless experience.
A different approach
SAA is unlike any conventional audit process. SAA does
not depend on physical location. It reduces the time
our professionals spend on site, creates fewer disrup-
tions, enables more efficient use of resources (yours
and ours), and allows for more impactful interactions
with your people.
Insights through analytics
CLA uses strategic data analysis to examine whole data sets to gain a deeper understanding of your organization. Insights that were once impossible can now come into focus to help you measure performance, enhance strategic decision making, and understand your competitive opportunities.
Effective technology
CLA embraces technologies that help solve client problems and create a seamless experience. Assurance Information Exchange (AIE) is a web-based application developed by CLA to digitally request and obtain audit documents through a secure and efficient online portal.
©2024 CliftonLarsonAllen LLP | 22
Financial statement audit approach
a. Proposed segmentation of the engagement
Phase 1 Phase 2 Phase 3 Phase 4
Planning and strategy Systems evaluation Testing and analysis Reporting and follow up
Phase 1: Planning and strategy
The main objective of the planning phase is to identify significant areas and design efficient audit procedures. • Conduct an entrance meeting. Bob Callanan and staff will meet with City personnel to agree on an outline of responsibilities and time frames
• Establish audit approach and timing schedule
• Determine assistance to be provided by City personnel • Discuss application of generally accepted accounting principles • Address initial audit concerns
• Establish report parameters and timetables
• Progress reporting process
• Establish principal contacts
• Gain an understanding of your operations, including any changes in organization, management style, and internal and external factors influencing the operating environment • Identify significant accounts and accounting applications, critical audit areas, significant provisions of laws and regulations, and relevant controls over operations
• Determine the likelihood of effective Information Systems (IS) - related controls Perform a preliminary overall risk assessment
• Confirm protocol for meeting with and requesting information from relevant staff •Establish a timetable for the fieldwork phase of the audit • Determine a protocol for using TeamMate Analytics and Expert Analyzer (TeamMate), our data extraction and analysis software, to facilitate timely receipt and analysis of reports from management • Compile an initial comprehensive list of items to be prepared by the City, and establish deadlines ©2024 CliftonLarsonAllen LLP | 23
We will document our planning through:
• Entity profile — This profile will help us understand the City's activities, organizational structure, services, management, key employees, and regulatory requirements. • Preliminary analytical procedures — These procedures will assist in planning the nature, timing, and extent of auditing procedures that will be used to obtain evidential matter. They will focus on enhancing our understanding of the financial results and will be used to identify any significant transactions and events that have occurred since the last audit date, as well as to identify any areas that may represent specific risks relevant to the audit.
• General risk analysis — This will contain our overall audit plan, including materiality calculations, fraud risk assessments, overall audit risk assessments, effects of our IS assessment, timing, staffing, client assistance, a listing of significant provisions of laws and regulations, and other key planning considerations. • Account risk analysis — This document will contain the audit plan for the financial statements, including risk assessment and the extent and nature of testing by assertion. • Prepared by client listing - This document will contain a listing of schedules and reports to be prepared by City personnel with due dates for each item.
• Assurance Information Exchange (AIE) — CLA uses a secure web-based application to request and obtain documents. This application allows clients to view detailed information, including due dates for all items CLA is requesting. Clients can attach electronic files and add commentary directly on the application.
A key element in planning this audit engagement will be the heavy involvement of principals and managers. We will clearly communicate any issues in a timely manner and will be in constant contact as to what we are finding and where we expect it will lead.
Using the information we have gathered and the risks identified, we will produce an audit program specifically tailored to the City that will detail the nature and types of tests to be performed. We view our programs as living documents, subject to change as conditions warrant.
Phase 2: Systems evaluation
We will gain an understanding of the internal control structure of the City for financial accounting and relevant operations. Next, we will identify control objectives for each type of control material to the financial statements, and then identify and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. Finally, we will determine the nature, timing, and extent of our control testing and perform tests of controls. This phase of the audit will include testing of certain key internal controls:
• Electronic data, including general and application controls reviews and various user controls • Financial reporting and compliance with laws and regulations We will test controls over certain key cycles, not only to gather evidence about the existence and effectiveness of internal control for purposes of assessing control risk, but also to gather evidence about the reasonableness of an account balance. Our use of multi-purpose tests allows us to provide a more efficient audit without sacrificing quality.
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Our assessment of internal controls will determine whether the City has established and maintained internal controls to provide reasonable assurance that the following objectives are met:
• Transactions are properly recorded, processed, and summarized to permit the preparation of reliable financial statements and to maintain accountability over assets • Assets are safeguarded against loss from unauthorized acquisition, use, or disposition Transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial statements
We will finalize our audit programs during this phase. We will also provide an updated prepared by client listing based on our test results and anticipated substantive testing.
During the internal control phase, we will also perform a review of general and application information services/information technology (IS/IT) controls for applications significant to financial statements to conclude whether IS general controls are properly designed and operating effectively.
Based on our preliminary review, we will perform an initial risk assessment of each critical element in each general control category, as well as an overall assessment of each control category. We will then assess the significant computer-related controls.
For IS/IT-related controls we deem to be ineffectively designed or not operating as intended, we will gather sufficient evidence to support findings and will provide recommendations for improvement. For IS controls we deem to be effectively designed, we will perform testing to determine if they are operating as intended through a combination of procedures, including observation, inquiry, inspection, and re-performance.
Phase 3: Testing and analysis
The extent of our substantive testing will be based on results of our internal control tests. Audit sampling will be used only in those situations where it is the most effective method of testing.
After identifying individually significant or unusual items, we will decide the audit approach for the remaining balance of items by considering tolerable error and audit risk. This may include (1) testing a sample of the remaining balance; (2) lowering the previously determined threshold for individually significant items to increase the percent of coverage of the account balance; or (3) applying analytical procedures to the remaining balance.
When we elect to sample balances, we will use TeamMate to efficiently control and select our samples.
Our workpapers during this phase will clearly document our work as outlined in our audit programs. We will provide the City with status reports and be in constant communication with the City to determine that all identified issues are resolved in a timely manner. We will hold a final exit conference with the City to summarize the results of our fieldwork and review significant findings. =OTO ©2024 CliftonLarsonAllen LLP | 25
Phase 4: Reporting and follow up
Reports to management will include oral and/or written reports regarding:
• Independent Auditors' Report
• Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards
• Independent Auditors' Report on Compliance for Each Major Federal Program, Report on Internal Control Over Compliance, and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
Management Letter
• Written Communication to Those Charged with Governance, which includes the following areas:
• Our responsibility under auditing standards generally accepted in the United States of America • Changes in significant accounting policies or their application • Unusual transactions
• Management judgments and accounting estimates
Significant audit adjustments
• Other information in documents containing the audited financial statements Disagreements with the City
The City's consultations with other accountants
Major issues discussed with management prior to retention • Difficulties encountered in performing the audit
• Fraud or illegal acts
Once the final reviews of working papers and financial statements are completed, our opinion, the financial statements, and management letter will be issued.
The City will be given a draft of any comments we propose to include in the management letter. Items not considered major may be discussed verbally with management instead of in the management letter. Our management letter will include items noted during our analysis of your operations.
We will make a formal presentation of the audit results to those charged with governance, if requested. =AO ©2024 CliftonLarsonAllen LLP | 26
Single audit approach
The OMB's Uniform Guidance (2 CFR Part 200) is effective for federal grants made on or after December 26, 2014. This affects how federal grants are managed and audited and impacts every organization that receives federal assistance. Grant compliance can be a confusing topic and many of our clients rely on their federal funding as a major revenue source, so it is important that they understand what these changes mean to their organization. As a leader in the industry, CLA was out in front of these changes and informed our clients of how to be proactive about these changes and how they could impact their entity. CLA professionals are available to provide guidance and tools tailored to the City's needs, and to assist in compliance with these rules.
The AICPA clarified auditing standard, AU-C 935 "Compliance Audits," requires risk-based concepts to be used in all compliance audits including those performed in accordance with 2 CFR Part 200. Our risk-based approach incorporates this guidance.
We will conduct our single audit in three primary phases, as shown, below:
Phase 1 Phase 2 Phase 3
Risk assessment Major program Final assessment
and planning testing and reporting
Phase 1: Risk assessment and planning
The risk assessment and planning phase will encompass the overall planning stage of the single audit engagement. During this phase, we will work closely with the City's management to determine that programs and all clusters of programs are properly identified and risk-rated for determination of the major programs for testing. We will also review the forms and programs utilized in the prior year to determine the extent of any changes which are required.
We will accomplish this by following the methodology below:
• Determine the threshold to distinguish between Type A and B programs, including the effect of any loans and loan programs
• Utilizing the preliminary Schedule of Expenditure of Federal Awards, we will identify the Type A and significant Type B programs (25% of Type A threshold) in accordance with the Uniform Guidance • Identify the programs tested and the findings reported for the past two fiscal years. Determine and document the program risk based on the past two single audits Prepare and distribute Type B program questionnaires to determine risk associated with Type B programs Determine the major programs to be tested for the current fiscal year based on the previous steps Based on our determination of the major programs, we will obtain the current year compliance supplement to aid in the determination of direct and material compliance requirements, and customize the audit program accordingly
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• Determine the preferred methods of communication during the audit Phase 2: Major program testing
We will determine the programs to be audited based on the risk assessment performed in the planning phase.
We will perform the audit of the programs in accordance with UG.
To accomplish this, we will perform the following:
• Schedule an introductory meeting and notify the City's management of the major programs for the current fiscal year
• Plan and execute the testing of the expenditures reported on the Schedule of Expenditures of Federal Awards
Perform tests of compliance and internal controls over compliance for each major program identified Schedule periodic progress meetings to determine that schedules are adhered to and identify issues as they arise
• Conduct entrance and exit conference meetings with each grant manager Phase 3: Final assessment and reporting
We will re-perform the steps noted in the preliminary assessment and planning stage once the final Schedule of Expenditures of Federal Awards is received to determine if additional major programs were identified.
Based on the final determination of the programs we will perform the following:
• Identify Type A and significant Type B programs which were not previously identified Re-assess the risk and determine if we are required to audit additional programs • Perform compliance testing at the entity wide level related to procurement and cash management requirements
Perform testing to validate the status of prior year findings for those programs not selected for audit • Prepare the Schedule of Findings and Questioned Costs • Conduct exit conference with the City's management to review drafts of required reports:
• Independent Auditors' Report on Internal Control over financial reporting and on compliance and other matters based on an audit of Financial Statements Performed in accordance with Government Auditing Standards
• Independent Auditor's Report on Compliance for Each Major Federal Program, Report on Internal Control Over Compliance, and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
Throughout the single audit, we will maintain communication through periodic progress meetings with those designated by the City. These meetings will be on a set schedule, but as frequently as the City determines.
During these meetings, we will discuss progress impediments and findings as they arise. ©2024 CliftonLarsonAllen LLP | 28
Communication process
Effective communication is critical to a successful engagement. This includes weekly status meetings where observations, potential exceptions, and leading practices are discussed. To avoid surprises at the end of the engagement, we discuss and document our observations, clarify fact patterns, and confirm management's understanding and agreement with our findings.
CLA adheres to all auditing standards related to reporting observations, recommendations, and findings. All significant deficiencies and material weaknesses will be reported to the audit committee/governance in writing.
Best practices, observations, and other matters will be reported to management in a management letter that can be used as a tool to track the implementation of our recommendations.
Report to those charged with governance - In addition to observations and recommendations, we will inform the audit committee of:
• Significant accounting policies
• Management judgments and accounting estimates
Significant audit adjustments and passed adjustments, if any Disagreements with management, if any
Management consultation with other accountants, if any
Major issues discussed with management prior to retention • Difficulties encountered in performing the audit, if any We are sensitive and understanding of the fact that we report to those charged with governance, and our audit professionals maintain objectivity and independence in issuing audit opinions. If we identify significant fraud, illegal acts, or significant delays during the audit process, we will alert the audit committee immediately.
Information related to overall fiscal health or other concerns of your organization observed during audit testing will be presented in the exit presentation and as part of the management letter. We will also help you create opportunities for improvement through recommendations and suggestions for strengthening your policies, accounting procedures, and processes.
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Use of technology in the audit
We're reimagining the audit process through technology to elevate your experience!
SECURE, INTERACTIVE REQUEST LISTS
ANALYTICS AND INSIGHTS
IMPACTFUL INTERACTION
Assurance Information Exchange (AIE) — CLA offers a secure web-based application to request and obtain documents necessary to complete client engagements. This application allows clients to view detailed information, including due dates for items that CLA requests. Additionally, the application allows clients to attach electronic files and add commentary related to the document requests directly on the application. AIE is provided at no additional cost, subject to the terms of the Assurance Information Exchange Portal Agreement.
TeamMate Analytics and Expert Analyzer (TeamMate) - To analyze and understand large data sets, we use TeamMate Analytics and Expert Analyzer. We customize the application by industry in order to perform the most applicable procedures. This allows us to go beyond sampling and instead analyze the entire general ledger for targeted anomalies. Far beyond the audit application, our six-phase process of Risk Assessment, Data Analytics and Review (RADAR) can also provide actionable insights to help you understand your entity better.
Microsoft® Teams - Our services approach focuses on impactful interactions. We've said goodbye to the days of setting up camp in our clients' conference rooms for weeks on end. We know our clients have organizations to run, so our interactions have purpose. To assist with communications when we are not onsite, we utilize tools such as Microsoft Teams, which allow for two-way screen sharing and video. We've found this helps minimize disruptions in our clients' environments while continuing to effectively communicate with each other. © 2024 CliftonLarsonAllen LLP | 30
b. Level of staff and number of hours to be assigned
Our project management methodology results in a client service plan that provides for regular, formal communication with the entire management team and allows us to be responsive to your needs. The schedul llows for input from your personnel to make certain the services are completed based on your requirement:
The plan may also be amended during the year based on input from the internal auditor.
Please see the below chart for the level of staff and approximate number of hours to be assigned to each proposed phase:
Financial Statement Audit
Engagement Principal Director Associate Admin Total
Senior
Segment
Planning and 12 3 38
6 12 5
strategy
Systems 10 12 29 55
4 evaluations
Testing and 6 12 70 154 0 242
analysis
Reporting and 12 32 14 19 100
23 follow up
Total 28 57 126 202 22 435
Single Audit
Engagement Principal Director Senior Associate Admin Total J Segment
Risk
assessment and 2 3 3 0 0 8
planning
Major program 0 2 10 17 29
testing
Final
assessment and 2 5 2 0 4 13
reporting
Total 4 10 15 17 4 50
J
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J
c. Sample size and the extent to which statistical sampling is to be used in the engagement We follow the guidance of AU-C Section 530, Audit Sampling, in using statistical and nonstatistical approach. We use quality control material in all our audit engagements. These AU-C Section 530 - "Audit Sampling" forms guide our staff through a logical process of assessing inherent risk, control risk, and combined audit risk, followed by an assessment of appropriate sample size for testing.
Sample sizes will vary depending on the nature of the testing (compliance versus substantive) and the size of the population being sampled. Sampling techniques are utilized in compliance and internal control testing, as well as substantive testing of certain asset and liability account balances. Sample sizes used for internal control testing depend on a number of factors, namely the number of expected or actual control deviations, size of population, and level of control assurance anticipated. Sample sizes can range from 20 to 90 possible selections.
To illustrate, if no internal control deviations are anticipated and the frequency of the population (i.e., the number of times the control is performed in a given year) is less than 100, then we will test 20 transactions in order to obtain moderate control assurance. If two internal control deviations are anticipated, and the frequency of the population is greater than 200, then we will test 90 transactions in order to obtain low control assurance. We are usually able to cover a substantial portion of the compliance and controls testing with one sample, resulting in a very efficient approach.
d. Type and extent of analytical procedures to be used in the engagement In addition to standard auditing methodology, a distinguishing aspect of CLA's audit services incorporates the power of data analytics to multiply the value of the analyses and the results we produce for clients. CLA's data methodology is a six-phase, systematic approach to examining an organization's known risks and identifying unknown risks. Successful data analysis is a dynamic process that continuously evolves throughout the duration of an engagement and requires collaboration of the engagement team.
Data analytics are utilized throughout our audit process, our Risk Assessment, Data Analytics and Review ("RADAR") is a specific application of general ledger data analytics that has Planning
been implemented on all audit engagements. RADAR is an
02 innovative approach created and used only by CLA that aims to improve and replace traditional preliminary analytics that Response and Expectations
were being performed. document
Data
Analytics
The phases in our data analytics process are as follows: Methodology
1. Planning
Interpret results
Data
and risk
In the planning stage of the engagement, the use of data acquisition assessment
analysis is considered and discussed to determine that
analvtics are directed and focused on accomplishing Technical dato:
objectives within the risk assessment. Areas of focus, such analysis as journal entries, cash disbursements, inventory, and
accounts receivable are common.
2. Expectations
We consider the risks facing our client and design analytics to address these risks. Through preliminary discussions with management and governance, we develop and document expectations of financial transactions ©2024 CliftonLarsonAllen LLP | 32
and results for the year. These expectations will assist in identifying anomalies and significant audit areas in order to assess risk.
3. Data acquisition
Sufficient planning, a strong initial risk assessment, and an adequate understanding of your systems will serve as the foundation necessary to prepare our draft data request list. We will initially request information in written format and conduct follow-up conversations helping CLA practitioners share a mutual understanding of the type of data requested and the format required. If there are going to be any challenges/obstacles related to obtaining data, or obtaining data in the preferred format, they will generally be discovered at this point.
4. Technical data analysis
Technical analysis of the data requires the skillful blend of knowledge and technical capability. Meaningful technical analysis provides the engagement team with a better understanding of the organization. The additional clarity assists the engagement team to better assess what is "normal" and, in turn, be better suited to spot anomalies, red flags, and Transaction Grouping
other indications of risk. Analytics generally fall into five categories, each Comprehensive
and Insightful
looking into the data set in a different way and deployed with a different purpose.
5. Interpret results and subsequent risk assessment
Theirding People
Trends and anomalies will be identified through the performance of the above referenced analytics. Comments regarding the interpretation of those trends and anomalies will be captured. When trends are identified, they are reconciled against expectations. For anomalies identified, the approach to further audit procedures will be considered.
6. Response and document
The last process is to capture responses and determine that our procedures are properly documented.
Abstracts, charts, or summaries of both trends and anomalies are retained in audit documentation to support our identification of risks. Our analysis can be tailored and customized to help analyze an array of information, including client-specific and proprietary data. Key benefits of data analytics include:
• Built-in audit functionality including powerful, audit specific commands and a self-documenting audit trail • 100% data coverage, which means that certain audit procedures can be performed on entire populations, and not just samples
Unlimited data access allows us to access and analyze data from virtually any computing environment • Eliminates the need to extrapolate information from errors (a common effort when manually auditing data) and allows for more precise conclusions
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The below figure illustrates typical data analytics scenarios. e. Approach to be taken to gain and document an understanding of the City of Redondo Beach's internal control structure.
We understand changing audit firms would require a new set of auditors to develop an understanding of the City and its internal control and operating structure. We also strive to develop our Operations understanding in the least intrusive manner possible, while still Reporting maintaining our professional responsibilities. We would utilize a Compliance combination of internal control forms and interviews with key accounting personnel to gain and document our understanding of Control environment the City. We will also use as a baseline any existing internal control processes, policies, organizational charts, etc. the City may have Risk assessment. already documented. A walk through of design and operating Control schnities effectiveness would then be performed to confirm our
understanding. Information and communication
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has established a framework for internal control systems. Under the COSO framework, internal control is a process to provide reasonable assurance that those internal objectives, including effectiveness and efficiency of business operations, reliability of financial reporting, and compliance with applicable laws and regulations, will be met, if applicable.
Our audit approach is designed to evaluate and walk through the departmental internal controls in accordance with COSO concepts. Our procedures include a review of the overall control environment, determination of the =A ©2024 CliftonLarsonAllen LLP | 34
adequacy of those procedures, and a walk through of the procedures to determine if they are functioning as designed.
During the planning and internal control phases of our audit, we will develop our understanding of the City business operations and internal control structure for financial accounting and relevant operations through observation, discussion, and inquiries with management and appropriate personnel. During this phase of the audit, we will review budgets and related materials, organization charts, accounting and purchase manuals, and other systems of documentation that may be available.
Once we understand your operations, we will then identify control objectives for each type of control that is material to the financial statements. The next step will be to identify and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. We will then determine the nature, timing, and extent of our control testing.
f. Approach to be taken in determining laws and regulations that will be subject to audit test.
We will obtain an understanding of the laws and regulations that impact the City's operations by reviewing council minutes to identify any ordinances or resolutions that might have an impact to operations and reporting by the City, as well as interview key personnel and management of the City. The staff assigned to the engagement attend regular trainings and are well versed in upcoming legislation and federal and state laws (e.g., Uniform Guidance) and proactively discuss these upcoming changes with our clients.
We will also review current operations, contracts, and IGA's that may impact current operations. g. Approach to be taken in drawing audit samples for purposes of tests of compliance We follow the guidance of AU-C Section 530, Audit Sampling, in using statistical and nonstatistical approach. We use quality control material in all our audit engagements. These forms guide our staff through a logical process of assessing inherent risk, control risk, and combined audit risk, followed by an assessment of appropriate sample size for testing.
Because our sample sizes are affected by many variables, a statement about sample sizes cannot be made in absolute terms. However, with regard to sample selection, we will generally utilize representative sampling for internal control and compliance tests, including those related to single audit compliance. Samples will also be used in conjunction with other tests of compliance (e.g., Florida Statutes, Ordinances, etc.).
In general terms, sample sizes for compliance and controls testing obtained via our guidance usually fall into categories of 25, 40, or 60 depending on circumstances. Where the population being tested is less than 100 items, we will use the 20%, 30%, or 40% of the population depending on our control risk assessment.
We are usually able to cover a substantial portion of the compliance and controls testing with one sample, resulting in a very efficient approach.
©2024 CliftonLarsonAllen LLP | 35
9. Identification of Anticipated Potential Audit
Problems
In situations where authoritative guidance on a particular transaction or accounting issue is unclear or subject to interpretation, our approach is to proactively meet with management to discuss the issue and reach a conclusion that is hopefully agreed upon by both parties. We do not have specific firm policies that dictate our conclusions to be reached on all complex accounting issues. Rather, each issue must be evaluated independently by our engagement team. As discussed above, we will not only meet internally, but also facilitate discussion with the City's management team in order to obtain a mutual understanding of the particular accounting issue, determine the applicable authoritative guidance that most closely relates to the issue, and strive to reach an approach agreed upon by both parties. If there remains any ambiguity or disagreement, we can explore other resources that could possibly assist, such as subject matter professionals within the Government Accounting Standards Board staff or the Government Finance Officers Association (GFOA) or perhaps other municipalities who may have dealt with similar issues.
Price
1. Total all-inclusive maximum price
CLA's dollar cost bid contains all pricing information relative to performing the audit engagement as described in the City's request for proposals (RFP). As requested, the total all-inclusive maximum price to be bid contains all direct and indirect costs including all out-of-pocket expenses.
CLA understands that the City will not be responsible for expenses incurred in preparing and submitting the proposal. We understand that such costs should not and will not be included in the proposal.
2. Schedule of professional fees and expenses
Please see the fee schedules from Appendix B of the City's RFP on the following pages. ©2024 CliftonLarsonAllen LLP | 36
CITY OF REDONDO BEACH
SCHEDULE OF TOTAL ALL-INCLUSIVE MAXIMUM FEES
ALL PROPOSED FISCAL YEARS
Two-year Option
Service FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Audit of City's basic financial statements $ 57,180 $ 59,379 $ 61,204 $ 63,361 $ 65,780 Audit of Housing Successor fund
financial 2,450 2,536 2,620 2,710 2,800
Audit of City's Inmate Benefit Trust fund
financial statements 2,450 2,536 2,620 2,710 2,800
Single Audit (1) 8,600 8,901 9,210 9,530 9,860
Appropriations Limit Agreed-upon 550 569 590 610 630
Optional Service: Internal Service Funds Rep 2,660 2,753 2,850 2,950 3,050 Optional Service: Enterprise Funds Report 2,660 2,753 2,850 2,950 3,050 Subtotal for services described in REP 76,550 79,427 81,944 84,821 87,970 Out-of-pocket Expenses:
Transportation Costs 600 621 643 666 689
5.0% Technology and Client Service Fee 3,829 3,960 4,100 4,240 4,390 Subtotal Out-of-pocket Expenses 4,429 4,581 4,743 4,906 5,079 Executive Time for Research and Assistance 9,828 10,172 10,528 10,897 11,279 Total all-inclusive maximum price $ 90,807 $ 94,180 $ 97,215 $100,624 $104,328 (1) This fee contemplates auditing up to two major programs. Additional major programs will be $3,800 each. ©2024 CliftonLarsonAllen LLP | 37
Schedule of professional fees and expenses for fiscal year ending June 30, 2024
APPENDIX B
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE (YEAR) FINANCIAL STATEMENTS
|CITY OF REDONDO BEACH
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE FISCAL YEAR 2023-24 FINANCIAL STATEMENTS
STANDARD QUOTED
HOURLY HOURLY
_HOURS RATES RATES TOTAL
Principal 32 $ 550 $ 390 $ 12,480
Director 67 350 250 16,750
Senior 141 230 160 22,560
Associates 219 145 100 21,900
Administrative Support Staff 26 150 110 2,860
Total for services described in
Section II-A of RFP 485 76,550
Out-of-pocket Expenses:
Transportation Costs 600
5% Technology & Client Support Fee 3,829
Subtotal Out-of-Pocket 4,429
Executive Time for Research &
Assistance, 40 9,828
TOTAL ALL - INCLUSIVE MAXIMUM
PRICE - FISCAL YEAR 2023-24 525 $ 90,807
=NO ©2024 CliftonLarsonAllen LLP | 38
Schedule of professional fees and expenses for fiscal year ending June 30, 2025
APPENDIX B
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE (YEAR) FINANCIAL STATEMENTS
|CITY OF REDONDO BEACH
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE FISCAL YEAR 2024-25 FINANCIAL STATEMENTS
STANDARD QUOTED
HOURLY HOURLY
HOURS RATES RATES TOTAL
Principal 32 $ 550 $ 404 $ 12,928
Director 67 350 259 17,353
Senior 141 230 166 23,406
Associates 219 145 104 22,776
Administrative Support Staff 26 150 114 2,964
Total for services described in
Section II-A of RFP 485 79,427
Out-of-pocket Expenses:
Transportation Costs 621
5% Technology & Client Support Fee 3,960
Subtotal Out-of-Pocket 4,581
Executive Time for Research &
Assistance, 40 10,172
TOTAL ALL - INCLUSIVE MAXIMUM
PRICE - FISCAL YEAR 2024-25 525 $ 94,180
©2024 CliftonLarsonAllen LLP | 39
Schedule of professional fees and expenses for fiscal year ending June 30, 2026
APPENDIX B
CITY OF REDONDO BEACH
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE FISCAL YEAR 2025-26 FINANCIAL STATEMENTS
STANDARD QUOTED
HOURLY HOURLY
HOURS RATES RATES TOTAL
Principal 32 $ 550 $ 418 $ 13,376
Director 67 350 268 17,956
Senior 141 230 171 24,111
Associates 219 145 107 23,433
Administrative Support Staff 26 150 118 3,068
Total for services described in
Section II-A of RFP 485 81,944
Out-of-pocket Expenses:
Transportation Costs 643
5% Technology & Client Support Fee 4,100
Subtotal Out-of-Pocket 4,743
Executive Time for Research &
Assistance, 40 10,528
TOTAL ALL - INCLUSIVE MAXIMUM
PRICE - FISCAL YEAR 2025-26 525 $ 97,215
=NO ©2024 CliftonLarsonAllen LLP | 40
Schedule of professional fees and expenses for additional year one
APPENDIX B
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE (YEAR) FINANCIAL STATEMENTS
CITY OF REDONDO BEACH
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE FISCAL YEAR 2026-27 FINANCIAL STATEMENTS
STANDARD QUOTED
HOURLY HOURLY
HOURS RATES RATES TOTAL
Principal 32 $ 550 432 $ 13,824
Director 67 350 277 18,559
Senior 141 230 177 24,957
Associates 219 145 111 24,309
Administrative Support Staff 26 150 122 3,172
Total for services described in
Section II-A of RFP 485 84,821
Out-of-pocket Expenses:
Transportation Costs 666
5% Technology & Client Support Fee 4,240
Subtotal Out-of-Pocket 4,906
Executive Time for Research &
Assistance, 40 10,897
TOTAL ALL - INCLUSIVE MAXIMUM
PRICE - FISCAL YEAR 2026-27 525 $100,624
©2024 CliftonLarsonAllen LLP | 41
Schedule of professional fees and expenses for additional year 2
APPENDIX B
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE (YEAR) FINANCIAL STATEMENTS
CITY OF REDONDO BEACH
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE FISCAL YEAR 2026-27 FINANCIAL STATEMENTS
STANDARD QUOTED
HOURLY HOURLY
HOURS RATES RATES TOTAL
Principal 32 $ 550 448 $ 14,336
Director 67 350 287 19,229
Senior 141 230 184 25,944
Associates 219 145 115 25,185
Administrative Support Staff 26 150 126 3,276
Total for services described in
Section II-A of RFP 485 87,970
Out-of-pocket Expenses:
Transportation Costs 689
5% Technology & Client Support Fee 4,390
Subtotal Out-of-Pocket 5,079
Executive Time for Research &
Assistance, 40 11,279
TOTAL ALL - INCLUSIVE MAXIMUM
PRICE - FISCAL YEAR 2026-27 525 $104,328
©2024 CliftonLarsonAllen LLP | 42
3. Out-of-pocket expenses included in the total all-inclusive maximum price As requested, all out-of-pocket expenses have been included in the total all-inclusive maximum price above.
4. Rates for additional professional services
The table below shows our standard hourly billing rates by classification:
CITY OF REDONDO BEACH
HOURLY RATES FOR ADDITIONAL PROFESSIONAL SERVICES
if the Agency wishes us to perform consulting or other significant services outside the scope of the services described herein, a separate written request from the Agency will be required. Our hourly rates for these services during each year under the basic contract will be as follows:
Two-Year Option
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Engagement Principal $ 390 $ 404 $ 418 $ 432 $ 448
Director $ 250 $ 259 $ 268 $ 277 $ 287
Senior $ 160 $ 166 $ 171 $ 177 $ 184
Associates $ 100 $ 104 $ 107 $ 111 $ 115
Administrative Support Staff $ 110 $ 114 $ 118 $ 122 $ 126
5. Manner of payment
CLA understands that the progress payments will be made on the basis of hours of work completed during the course of the agreement and out-of-pocket expenses incurred in accordance with the firm's dollar cost bid proposal. We understand that interim billings will cover a period of not less than a calendar month. Ten percent (10%; will be withheld pending delivery of the firm's final reports.
Transparent: Clear, authentic communication and market-based fees. ©2024 CliftonLarsonAllen LLP | 43
Appendix
A. Your service team biographies
=∞Ю ©2024 CliftonLarsonAllen LLP | 44
Robert J. Callanan, CPA
CLA (CliftonLarsonAllen LLP)
714-795-5354
Irvine, California [email protected]
Profile
Robert is an assurance principal at CLA's Irvine office, formerly White Nelson Diehl Evans LLP (WNDE). He has more than 30 years of experience. Bob's focus knowledge is in audit, assurance and consulting services for governmental agencies, including cities, special districts, and nonprofit organizations.
Technical experience
• Local government, including nonprofits, cities and special districts Education and professional involvement
• Bachelor of arts in business administration from Aquinas College, Grand Rapids, Michigan Bachelor of science in accounting from Aquinas College, Grand Rapids, Michigan • American Institute of Certified Public Accountants (AICPA) • California Society of Certified Public Accountants (CaICPA) • California Society of Municipal Finance Officers (CSMFO) • California Governmental Accounting and Auditing Committee • California Committee on Municipal Accounting
• Government Finance Officers Association (GFOA)
Relevant client experience
Cities:
Alhambra Campbell Chino
Del Mar Irvine La Palma
Monterey Park Newport Beach Norco
Pasadena San Buenaventura Signal Hill
Ranch Palos Verdes Vernon
=A0 ©2024 CliftonLarsonAllen LLP | 45
Special Districts:
Greater Los Angeles County Vector Control District Surfside Colony Stormwater Protection District Orange County Mosquito and Vector Control District Surfside Community Services District Pico Rivera Water Authority Sunset Beach Sanitary District Pomona Walnut Rowland Joint Water Line Commission Surfside Colony Stormwater Protection District Rowland Water District Surfside Community Services District Southeast Water Coalition Ventura Port District
Sunset Beach Sanitary District
Continuing professional education
2023
Centralized Billing Process - Part 2 1.0
Centralized Billing Process - Part 1 1.0
Wellness Wednesday - November 2023 1.0
Quality Update - Q4 2023 1.0
Wellness Wednesday - NDEAM and Advancing Accessibility (October 2023) 1.0 AIS and Audit Methodology - Day 1 8.0
Single Audit Update - August 2023 1.0
Connect, Inspire, and Grow 2023 12.0
Wellness Wednesday: Together We Thrive - Promoting LGBTQ+ Understanding, Well- being, and Solidarity at CLA (June 2023) 1.0
IT in an Audit, SAS 145 1.0
IT for Auditors 1.0
Adopting the Standards SAS 143-145 1.0
GOA 2023 Annual Conference 14.5
State and Local Gov (SLG) Industry Series - May 2023 #2 1.0 Wellness Wednesday: CelebrAsian - Wait, you're Asian too? (May 2023) 1.0 Coaching for Inspired Careers - May 2023 1.0
State and Local Gov (SLG) Industry Series - May 2023 #1 1.0 Quality Update - Q2 2023 1.0
GASB for State and Local Government 2023 - Part 1 1.0
Wellness Wednesday: Military Connections (April 2023) 1.0 Single Audit Update - April 2023 1.0
Accounting for Revenues in Government (Emphasis on Non-Exchange Transactions) 3.0 GASB 87 Leases 1.0
GASB Statement 87: Leases 2.0
Wellness Wednesday: Black History Month - Our journey to CPA (February 2023) 1.0 February 2023 GAAC Meeting 2.0
Single Audit Update - January 2023 1.0
Total: 62.5
2022
Quality Update - Q4 2022 1.0
Assurance Perspectives - Q4 2022 2.0
Wellness Wednesday 2022: December #1 - Benefits & Your Emotional Health 1.0 ©2024 CliftonLarsonAllen LLP | 46
Coaching for Inspired Careers - November 2022 1.0
Wellness Wednesday 2022: November #2 - Be Well and Belong 1.0 Risk Management Update 2022 5.5
Wellness Wednesday 2022: October #2 - Be Well and Belong 1.0 Wellness Wednesday 2022: September #2 - Be Well and Belong 1.0 Wellness Wednesday 2022: September #1 - Benefits & Your Emotional Health 1.0 Orange County Virtual Chapter Meeting - CalPERS Update 1.5 Assurance Perspectives - Q3 2022 2.0
Audit: Be in the Know 2022 - Part 2, All Industries 1.0 Audit: Be in the Know 2022 - Part 1, All Industries 1.0 State and Local Gov (SLG) Learning Series - Part 4
Single Audit Update - Q3 2022 2.0
Annual GASB Update 2.0
State and Local Gov (SLG) learning series - Part 3, GASB 87 - Implementing the Lease
2.0 CLA Lease Implementation Update 1.0
Quality Update - Q2 2022 1.0
Compensation and Advancement Process - Leadership Kick Off and Workday Walkthrough 2022 1.5
Provider Relief Fund Audits 2022 1.0
State and Local Gov (SLG) learning series - Part 1 2.0
GASB for State and Local Government #1 2.0
Audit Risk Assessment 3.0
Audit Report Changes: SAS 134, 135, 137, 139 and 140 1.0 Owner Promise Meeting 2022 14.0
Total: 54.5
2021
State and Local Gov (SLG) learning series - Part 5 2.0
CLA 2021 California State and Local Government Training Academy 4.0 State and Local Gov (SLG) learning series - Part 4 2.0
State and Local Gov (SLG) learning series - Part 3 2.0
State and Local Gov (SLG) learning series - Part 3 2.0
State and Local Gov (SLG) learning series - Part 2 2.0
State and Local Gov (SLG) learning series - Part 1 1.0
CLA American Rescue Plan Act of 2021 - Perspectives and Lessons Learned for Government Organizations 1.5
Ethics for California CPAs 4.0
The Anti-fraud Playbook 2.0
A Best Practice Electronic Payment Fraud Avoidance Program 2.0 2021 February GAAC Meeting 4.0
Single Audit Methodology - Legacy WNDE and Legacy Atkinson 3.0 Total: 31.5
©2024 CliftonLarsonAllen LLP | 47
Rebecca Hoang Tai, CPA
CLA (CliftonLarsonAllen LLP)
714-795-5442
Irvine, California [email protected]
Profile
Rebecca is a director at our CLA's Irvine office, formerly White Nelson Diehl Evans (WNDE) since 2012 and has been an integral member of the team. She currently serves in the firm's Audit Department, as a director. In this role, she works with clients in a wide variety of industries, including manufacturing, professional services, construction contracting, government agencies, and employee benefit plans.
A knowledgeable professional, Rebecca is a great resource for her teammates. She credits her career success to having both a great support system and a number of wonderful mentors to guide her along the way. She was inspired to pursue a career in accounting after several introductory accounting classes she took in college sparked her interest.
Technical experience
• Manufacturing
• Construction contracting
State and local government
Employee benefit plans
Education and professional involvement
• Bachelors of arts in business economics from University of California, Irvine • Certified Public Accountant in the state of California • American Institute of Certified Public Accountants (AICPA) • California Society of Certified Public Accountants (CalCPA) Continuing professional education
2023
FASAB: Federal Accounting and Reporting Annual Update 2023 2.0 GAAP Update 2023 2.0
Mastering Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets 1.0
AIS and Audit Methodology - Day 1 8.0
State and Local Gov (SLG) Industry Series - May 2023 #2 1.0 = GO ©2024 CliftonLarsonAllen LLP | 48
Wellness Wednesday: CelebrAsian - Wait, you're Asian too? (May 2023) 1.0 Quality Update - Q2 2023 1.0
2023 Yellow Book Update 2.0
Accounting and Auditing Update - Q2 2023 2.0
State and Local Gov (SLG) Industry Series - April 2023 1.0 Wellness Wednesday: Black History Month - Our journey to CPA (February 2023) 1.0
22.0 Total:
2022
Quality Update - Q4 2022 1.0
Assurance Perspectives - Q4 2022 2.0
Independence and Ethics Update 2022 - Fundamentals 2.0
Risk Management Update 2022 5.5
State and Local Gov (SLG) Learning Series - Part 5 1.0
Assurance Perspectives - Q3 2022 2.0
State and Local Gov (SLG) Learning Series - Part 4 2.0
Audit: Be in the Know 2022 - Part 2, All Industries 1.0 Audit: Be in the Know 2022 - Part 1, All Industries 1.0 Single Audit Update - Q3 2022 2.0
State and Local Gov (SLG) learning series - Part 3, GASB 87 - Implementing the Lease Standard 2.5
Creating a Culture of Integrity 2.0
Single Audit Refresher 2022 - Part 3 2.0
Assurance Perspectives - Q2 2022 2.0
Single Audit Refresher 2022 - Part 2 2.0
2022 Audit update 4.0
Single Audit Refresher 2022 - Part 1 2.0
Accounting and Auditing Update - Q2 2022 2.0
Quality Update - Q2 2022 1.0
State and Local Gov (SLG) learning series - Part 2: Project Management for Effective Cross-Utilization: Leveraging Our Tools 2.0
Wellness Wednesday 2022: May #2 - Be Well and Belong 1.0 Coaching for Inspired Careers - May 2022 1.0
Ethics - Understanding and applying the AICPA Code of Professional Conduct 2.0 State and Local Gov (SLG) learning series - Part 1 2.0
Accounting and Auditing Update - Q1 2022 2.0
2022 Yellow Book Update 1.5
The CSMFO Annual Conference 2022 4.0
Audit Report Changes: SAS 134, 135, 137, 139 and 140 1.0
3.0 Audit Risk Assessment
Total: 58.5
2021
Seamless Conference 2021 2.5
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Assurance Quarterly Update - Q3 2021 2.0
State and Local Gov (SLG) learning series - Part 5 2.0
CLA 2021 California State and Local Government Training Academy 4.0 State and Local Gov (SLG) learning series - Part 4 2.0
Coaching in the Summer at CLA Walkthrough 2021 1.0
State and Local Gov (SLG) learning series - Part 3 2.0
EBP Update 2021 4.0
2021 Yellow Book and Single Audit Update 2.0
Employee Benefit Plans Overview: Part 1 4.0
State and Local Gov (SLG) learning series - Part 2 2.0
Employee Benefit Plans Overview: Part 2 3.5
State and Local Gov (SLG) learning series - Part 1 1.5
CLA American Rescue Plan Act of 2021 - Perspectives and Lessons Learned for Government Organizations 1.5
Single Audit Methodology - Legacy WNDE and Legacy Atkinson 3.0 Total: 37.0
© 2024 CliftonLarsonAllen LLP | 50
Stephen Coverstone, CPA
CLA (CliftonLarsonAllen LLP)
Senior 714-795-5362
Irvine, California [email protected]
Profile
Stephen is a senior associate with CLA working primarily with state and local governments. He has more than five years' experience performing audits for local governments. Stephen delivers high quality work products using efficient and effective communication styles, problem-solving leadership, and detail-oriented planning abilities. He continues to develop and apply a growing knowledge of different accounting principles and auditing standards throughout every engagement. Stephen strives to ensure all engagements are progressing timely and being accurately carried out by working directly with experienced staff, as well as engagement principals and managers.
Technical experience
• State and local government
• Currently in-charges the overall audit process including the planning, performing, and preparation of numerous financial statement audits, single audits, and agreed upon procedures for various Cities, Water Districts, and Retirement Systems Audits of schedules required by GASB 68 and GASB 75 and performance of related census data testing
Education and professional involvement
• Bachelor of science in accounting from Portland State University, Portland, Oregon • Certified Public Accountant in California
American Institute of Certified Public Accountants
• California Society of Certified Public Accountants
Local government experience
• Inland Empire Utilities Agency City of Colton City of Santa Barbara • Moulton Niguel Water District City of Escondido City of Camarillo La Habra Heights County Water District • City of Pico Rivera City of Irvine • Valley Wide Recreation and Park District City of Placentia ©2024 CliftonLarsonAllen LLP | 51
Continuing professional education
2023
Quality Update - Q4 2023 1.0
AIS and Audit Methodology - Day 1 7.5
Accounting for Governmental Assets and Liabilities 4.0
LEAP 2023: Achieve Assurance Technical Breakout 1.5
LEAP 2023: Achieve Conference 2.5
LEAP 2023: Achieve Assurance - Part 3, Closing an Engagement 1.0 Governmental Accounting for Revenue 7.0
LEAP 2023: Achieve Assurance - Part 2, Risk Assessment - AIS, What You Need to Know 1.0
2023 Yellow Book Update 2.0
IT for Auditors 1.0
Consideration of Fraud in a Financial Statement Audit 5.0 Adopting the Standards SAS 143-145 1.0
Analytical Tools - Intermediate 1.0
IT in an Audit, SAS 145 1.0
Using RIA Checkpoint Effectively 1.0
Total: 37.5
2022
Provider Relief Funds and You 2.0
Audits of State and Local Governments 17.0
Accounting for Governmental Assets and Liabilities 4.0
Accounting and Auditing Real Estate Transactions 5.0
Assurance Perspectives - Q4 2022 2.0
Quality Update - Q4 2022 1.0
2021 Auditing Update 7.0
Audit: Be in the Know 2022 - Part 4, State and Local Government 1.0 AICPA Control Risk Assessment Requirements 2.0
GASB Update for State and Local Government - #2 2.0
State and Local Gov (SLG) learning series - Part 1 2.0
Total: 45.0
2021
Preparing Financial Statements, Statements of Cash Flow and More 1.0 Detailed Review Assurance 2.0
Internal Controls 1.0
Risk Assessment 1.0
TeamMate Data Analysis 1.5
Audit Data Analytics 101 1.0
Audit Sampling 1.0
Role of an Assurance In-Charge 1.0
Materiality / Understanding the Entity 1.5
Analytics 1.0
©2024 CliftonLarsonAllen LLP | 52
Introduction to Audit Sampling 2.0
SSAE No. 19 Agreed-Upon Procedures Engagements 1.0
Audit Risk Assessment 3.0
SSARS 25 - Materiality in a Review of Financial Statements and Adverse Conclusions 1.0 Yellow Book and Single Audit Deficiencies 4.0
Audit Report Changes: SAS 134, 135, 137, 139 and 140 1.0 Coaching in the Summer at CLA Walkthrough 2021 1.0
State and Local Gov (SLG) learning series - Part 3 2.0
Accounting for Governmental Assets and Liabilities 4.0
State and Local Gov (SLG) learning series - Part 2 2.0
2021 Yellow Book and Single Audit Update 2.0
Single Audit Methodology - Legacy WNDE and Legacy Atkinson 3.0 Revenue Risks: Identifying and Determining Responses (Industry Agnostic) 1.0 Total: 39.0
CLAconnect.com
CPAS | CONSULTANTS | WEALTH ADVISORS
LA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaime vestment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment adviso =0O ©2024 CliftonLarsonAllen LLP | 53
B. Peer review report
© 2024 CliftonLarsonAllen LLP | 54
Cherry Bekaert"
Your Guide Forward
Report on the Firm's System of Quality Control
o the Principals of CliftonLarsonAllen LLI
nd the National Peer Review Committe
A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards, may be found at www.aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported on in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating.
Firm's Responsibility
The Firm is responsible for designing and complying with a system of quality control to provide the Firm with reasonable assurance of performing and reporting in conformity with the requirements of applicable professional standards in all material respects. The Firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported on in conformity with the requirements of applicable professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any.
Peer Reviewer's Responsibility
Our responsibility is to express an opinion on the design of and compliance with the Firm's system of quality control based on our review.
Required Selections and Considerations
Engagements selected for review included engagements performed under Government Auditing Standards, including compliance audits under the Single Audit Act; audits of employee benefit plans; audits performed under FDICIA; and examinations of service organizations (SOC 1° and SOC 2º engagements).
As a part of our peer review, we considered reviews by regulatory entities as communicated by the Firm, if applicable, in determining the nature and extent of our procedures. received a peer review rating of pass.
Cherry - Bekaert LLp
Cherry Bekaert LLP
Charlotte, North Carolina
November 18, 2022
cbh.com
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