Loading...
D'Arcangelo Proposal 2009 t TOWN OF WAPPINGER EXTERNAL AUDIT PROPOSAL FOR SPECIFIED ELEMENTS Town of Wappinger TABLE OF CONTENTS Page Part I - Responses to Management and Qualifications Title Page 1 Transmittal Letter 2 Firm Profile 3-5 Client References 6 Auditing Experience 7 Engagement Plan 8-11 Engagement Administration 12-13 Peer Review Report 14 Part II - Contract Cost and Pricing Schedule of Audit Hours Dollar Cost Bid 15 16 Town of Wappinger PART I RESPONSES TO MANAGEMENT AND QUALIFICATIONS Town of Wappinger TITLE PAGE PROPOSAL FOR AUDIT SERVICES OF SPECIFIED ELEMENTS FOR THE YEAR ENDING DECEMBER 31, 2008 January 30, 2009 D'Arcangelo & Co., LLP Leonard P. Carissimo, CPA Engagement Partner 200 East Garden Street Rome, NY 13440 (315)336-9220 1. ~cangelo&Co.,LLP Certified Public Accountants & Consultants 200 E. Garden St.. P.O. Box 4300. Rome N.Y. 134424300 315-336-9220 Fax: 315-336-0836 January 30, 2009 Town Board Town of Wappinger ATTN: Honorable Christopher J. Colsey, Supervisor 20 Middlebush Road Wappingers Falls, NY 12590 Dear Mr. Colsey: We would like to express our interest in performing the audit of the Town of Wappinger's escrow accounts, accounts payable, debt service bank accounts, and bank reconciliations for the year ending December 31, 2008, and our appreciation for the opportunity to present our qualifications to continue to serve as your auditors. We have enclosed our proposal which will provide you with a detailed outline of our Firm profile, audit experience, engagement plan, and administration. D'Arcangelo & Co., LLP is a regional public accounting firm with vast experience in auditing counties, cities, towns, school districts, BOCES, and not-for-profit entities. Presently, we audit and provide consulting services for over 60 municipalities, school districts, and BOCES in New York State. In addition to our audit experience, D'Arcangelo & Co., LLP will be able to make recommendations to management to strengthen internal control and assist in improving existing policies and procedures. These services include expertise in the field of information technology. Our audit procedures and consulting services have resulted in increased efficiency and streamlined reporting for many of our clients. We believe that our prior experience with similar organizations will add to both the efficiency and quality of your audit. We have enclosed two copies of our proposal and Firm brochure which will provide you with all the details your RFP requires plus additional information regarding the depth of resources available at our Firm. You will find from our proposal and experience that we fully understand the work to be performed and our strong commitment to meet the required guidelines. This proposal shall also serve as an irrevocable offer for services to be rendered. We have also attached a copy of our peer review report for the year ended September 30, 2007. We would like to express our appreciation for your consideration of our Firm and look forward to further discussions with you pertaining to our audit approach and our qualifications. We look forward to the opportunity to serve as your independent auditors Sincerely, D' ARC ANGELO & CO., LLP ~~/~ Leonard P. Carissimo, CPA Partner LPC/cmb Enclosures 2. Mid-Hudson · Utica/Rome · Westchester " Town of Wappinger FIRM PROFILE General Information D'Arcangelo & Co., LLP (Firm) was organized in Westchester County, New York, in 1950. Presently, we have five offices in New York State located in Purchase, Poughkeepsie, Millbrook, Rome, and Utica. D'Arcangelo & Co., LLP has twenty partners and total professional staff in excess of one hundred. Our mission is to help our clients succeed by providing quality, responsive services, while maintaining the highest standards of professionalism. The Firm is organized as a Limited Liability Partnership (LLP) engaged in the general practice of public accounting. The practice includes accounting and auditing services, tax planning and preparation, management advisory services, and computer consulting. Our diverse client base includes nonprofit organizations, governmental entities, educational institutions (including public and private colleges), health and welfare funds, pension funds, legal funds, commercial businesses, professional firms, industrial firms, and individual work. With a large sector of our practice comprised of nonprofit and municipal clients, the Firm's Utica/Rome office has dedicated 20 staff members and 4 partners serving this client base. D'Arcangelo & Co., LLP is an integrated partnership which exercises common quality control procedures and is a member of both the AICP A's Center for Public Company Audit Firms and Private Company Practice Divisions. The Firm is also registered with the Public Company Accounting Oversight Board. As a requirement of these oversight bodies, the Firm obtains a tri- annual externally performed peer review and an annual internal quality control review. ' The partners of our Firm are an integral part of the audit team. They are not only involved in supervising staff but are directly involved in planning the audit, reviewing internal controls, designing audit procedures, meeting with client management, and developing reports. We believe this level of involvement is necessary to provide our clients with personal attention and to effectively respond to their requests and needs. The Firm operates based on specialty Practice Units. Each Practice Unit is comprised of industry specialists from each of our offices. We are able to draw upon the experience of our industry specialists to provide our clients with the level of service they require. These specializations allow us to adapt to the rapidly-changing needs of our clients. We have developed these specialized areas and have assigned personnel with such expertise to manage those engagements. Client Commitment D'Arcangelo & Co., LLP is committed to excellence in accounting and auditing services through continued participation in comprehensive staff education and training. Our Firm's diverse experience has given us an excellent understanding of various operations which proves to be a valuable tool in consulting and providing sound recommendations. Our versatile staff is comprised of highly motivated individuals with mature judgment and experience. The following are standards we uphold while providing services to our clients: 3. Town of Wappinger FIRM PROFILE · We have a significant depth of staff and other resources available to fully support our client needs. · We are professionals who are committed to providing our clients with quality work at a fair price while, at the same time, treating them with the respect they deserve. · We provide a personalized level of service by having active partner involvement on all client engagements. · We have a vast amount of experience with various types of nonprofit and governmental organizations including, but not limited to, foundations, community colleges, private colleges, counties, cities, towns, villages, BOCES, and school districts. · Our Firm delivers timely, responsive, and professional services to our clients which include returning all telephone calls promptly and treating our clients with courtesy and importance. International Affiliation D' Arcangelo & Co., LLP is a member of the Horwath Business Alliance. As a member of the Alliance, the firm has access to Horwath International, one of the largest global professional service organizations. Horwath International has more than 110 independent member firms operating from 400 offices around the world. This relationship validates our desire to strengthen the benefits we offer to our clients. It provides us with the opportunity to improve our local market position through the use of a portfolio of accounting, audit, risk management, tax and consulting resources, services, content and knowledge of Horwath member firms. We have access to deep institutional knowledge and use this access to better serve our clients with greater speed and comprehensiveness. Management Advisory Services When requested, we assist our clients with other services, including internal operating functions. We strictly adhere to independent standards and offer these services when they do not conflict with audit services. Examples of advisory services we have provided to our clients include: · Performance Studies · Installation of Computer Software · Forensic Audits · Implementation of New Accounting Standards · Net Asset Projections · Capital Fund Reserve Projections · Budget Analysis · Review of Selected Employment Contracts · Compliance Reporting · Compliance with Bond and Debt Covenants · Design of Monthly Financial Reports · Assistance with Bond Sales D' Arcangelo & Co., LLP maintains the highest professional standards. Our integrity and professionalism will never be compromised. If selected as your independent auditors, we would only consider rendering such additional services if they would not impair our independence. 4. l' Town of Wappinger FIRM PROFILE Affirmations · Our Finn and assigned Certified Pubic Accountant professionals are licensed to practice in the State of New York. · Our Finn is independent of the Organization as defined by the AICP A, auditing standards generally accepted in the United States of America. · D' Arcangelo & Co., LLP is required to have a tri-annual external peer review and does not have record of substandard audit work. · The audit documentation for this engagement will be maintained for a minimum of seven years after the report release date. · D' Arcangelo & Co., LLP is not involved in any significant litigation or disciplinary action by Federal and/or state regulatory agencies. 5. Town of Wappinger CLIENT REFERENCES D' Arcangelo & Co., LLP audits an extensive number of municipalities, school districts, community colleges, and various nonprofit organizations. A separate list of related clients that we render independent audit services to have been provided on the following pages. The following individuals represent certain audit clients which you may wish to personally contact: Mr. Joseph Timpano Comptroller Oneida County 800 Park Avenue Utica, NY 13501 (315) 798-5780 Mr. Nicholas Laino Officer-In-Charge/Dean of Administration Herkimer County Community College Reservoir Road Herkimer, NY 13350 (315) 866-0300 Mr. James Wallace County Administrator County of Herkimer, New York 108 Court Street, Suite 3100 Herkimer, NY 13350 (315) 867-1144 Mr. William Brady, Comptroller Town of Beekman 4 Main Street Poughquag,NY 12570 (845) 724-5300 6. Town of Wappinger AUDIT EXPERIENCE Afton Central School District Bainbridge-Guilford Central School District BOCES - Broome-Tioga BOCES - Delaware-Chenango BOCES - Madison-Oneida BOCES - Herkimer-Fulton-Hamilton-Otsego BOCES - Onondaga-Cortland-Madison BOCES - Otsego-Northem-Catskill Canastota Central School District Cazenovia Central School District Charlotte Valley Central School Christian Brothers Academy Chittenango Central School District City of Rome, New York City of Utica, New York City of Yonkers School District Colton-Pierrepont Central School County of Herkimer, New York County of Oneida, New York County of Westchester, New York Delhi Central School District Downsville Central School District East Syracuse - Minoa Central School District Edmeston Central School Fabius-Pompey Central School District Franklin Central School District Gilbertsville-Mount Upton Central School District Greene Central School District Hamilton Central School District Hannibal Central School District Harrisville Central School Herkimer Central School District Herkimer County Community College Hermon-DeKalb Central School Laurens Central School District Locust Valley Central School District Madison Central School District Milford Central School Mohawk Valley Community College Morristown Central School District Morrisville-Eaton Central School District Mount Upton Central School District Norwich City School District Ogdensburg City School District Oneida City School District Oneonta City School District Oxford Academy and Central School District Parishville-Hopkinton Central School District Potsdam Central School District Remsen Central School District Rome City School District Schenevus Central School Sherburne-Earlville Central School District Sidney Central School District Stamford Central School Stockbridge Valley Central School District Susquehanna Valley Central School District Syosset Central School District Unadilla Valley Central School District Utica City School District Valley Stream UFSD Thirteen Walton Central School District W ashington-Saratoga- W arren- Hamilton- Essex BOCES Weedsport Central School District Westhill Central School District Whitesboro Central School District William Floyd UFSD Worcester Central School 7. Town of Wappinger ENGAGEMENT PLAN Scope of Services We propose to audit the specified elements of basic financial statements of the Town of Wappinger (the Town) as of December 31, 2008, and for the year then ended in accordance with generally accepted auditing standards. These specified elements include the Town's escrow accounts, accounts payable, debt service bank accounts, and bank reconciliations. The objective of our audit is the expression of an opinion as to whether your presentation of the above mentioned specified elements are fairly presented, in all material respects, in conformity with generally accepted accounting principals in the United States of America. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and will include tests of your accounting records and other procedures we consider necessary to enable us to express such an opinion. If our opinion is other than unqualified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or unable to express an opinion, we may decline to express an opinion or may not issue a report as a result of this engagement. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts and may include direct confirmation of receivables and certain other assets by correspondence with selected customers, creditors, and financial institutions. We may also request written representations from your attorneys as part of the engagement, and they may bin you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the presentation of the above mentioned specified elements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the presentation of the above mentioned specified elements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable assurance about whether the presentation of the above mentioned specified elements is free of material misstatement. Because an audit is designed to provide reasonable, but not absolute, assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the presentation of the above mentioned specified elements. However, we will inform you of any material errors that come to our attention, and we will inform you of any fraudulent financial reporting or misappropriation of assets that comes to our attention. We will also inform you of any other illegal acts that come to our attention, unless clearly inconsequential. Our responsibility as auditors are limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. 8. Town of Wappinger Our audit will include obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the presentation of the above mentioned specified elements and to design the nature, timing, and extent of further audit procedures. An audit is not designed to provide assurance on internal control or to identity deficiencies in internal control. However, during the audit, we will communicate to you and to those charged with governance internal control related matters that are required to be communicated under professional standards. We understand that the Town will provide us with the basic information required for our audit and is responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application, but the responsibility for the financial statements remains with the Town. This responsibility includes the maintenance of adequate records and the related internal control structure, the selection and application of accounting principles, and the safeguarding of assets. In accordance with the above standards, we intend to issue an Independent Auditor's Report on the Town of Wappinger' s specified elements of basic financial statements. In addition to the aforementioned report, we will prepare the necessary communications to the Supervisor and Town Board identifying any significant deficiencies (if any), reportable conditions (if any), and recommendations for improvements to The Town of Wappinger's accounting and operating systems. D'Arcangelo & Co., LLP's philosophy of providing professional services, including audits, is to fully integrate the engagement partner in all facets of the engagement from planning to report preparation. With our available resources and experience in auditing municipalities, D'Arcangelo & Co., LLP is able to offer experienced staff equal to or exceeding that of a national firm combined with the personal attention provided by small firms. The staff assigned to the audit will have prior experience auditing nonprofit organizations while the Engagement Partner has over twenty years experience. The staff assigned to the engagement are expected to remain the same, as they continue their career at D' Arcangelo & Co., LLP, throughout the term of the contract. The size of our organization, as well as the low turnover at D' Arcangelo & Co., LLP, allows us to have the flexibility of staff continuity on our engagement from one year to the next. It is the policy of our Firm that all audit and attestation engagements be properly planned, supervised, and reviewed. The Firm has adopted the Practitioner Publishing Company (PPC) services for use on all engagements. Specifically, the Firm utilizes Audits of Governmental Organizations as a guide to our procedures on nonprofit audits. The Firm also utilizes Profx Engagement which allows us to perform paperless audits. In addition to PPC guidelines, the Firm uses custom designed programs to meet the needs of each individual engagement. 9. Town of Wappinger ENGAGEMENT PLAN Auditing Standards Generally Accepted in the United States require auditors to use the information gathered about the entity and its environment (including internal control) to identify and assess the risks of material misstatement at both the overall financial statement and relevant assertion levels, and to determine the nature, timing, and extent of further audit procedures needed to respond to those risks. We will also consider fraud as it pertains to our responsibilities for the identification of the existence of fraud and the procedures and testing required to perform the audit. Our Firm utilizes a variety of sampling techniques to confirm our understanding of internal controls and to substantiate the assertions being audited. These techniques range from random sampling to the use of computer assisted audit tools including data extraction and data mining software. The software allows us to enhance our sampling techniques to include unusual transactions from large data sets. Before issuing an audit report, a review shall be performed by someone not assigned to the engagement with appropriate technical competence and authority. This will entail reading of the financial statements and auditor's report, as well as a review of sufficient documentation to provide reasonable assurance to allow issuance of the report and financial statements. Other Consultation As part of the engagement, we will also respond to limited inquiries throughout the year without an additional charge. However, if the Town has an inquiry that requires significant additiomil time, we will discuss the number of estimate hours with you and arrive at an estimated fee before additional costs are incurred. 10. Town of Wappinger ENGAGEMENT PLAN Timing ofField Work The timing of the audit fieldwork will be at the convenience of the Town of Wappinger and coordinated to meet all of their reporting deadlines. D'Arcangelo & Co., LLP maintains a division of staff specializing in audits and is, therefore, flexible enough to offer our services at competitive rates. We will utilize the same staff throughout the engagement. Provided below is a tentative audit plan for the audits and is subject to change to conform to management's deadlines. Audit Phase Target Dates Preaudit entrance conference to review the interim and year-end planning memorandums; discuss timing of fieldwork, audit programs and procedures, and staffing. At this time, we will also explain any new accounting, financial reporting, or audit standards which may affect the engagement. To be Determined Audit fieldwork including review and documentation of internal controls, analytic review, confirmations, detailed test work, account balance substantiation, and additional work, as required. To be Determined Draft financial statements and management letters to administration. To be Determined Exit conference to review draft audit report, financial statements, and draft management letters. To be Determined Presentation of final audit reports, financial statements, and management letters to the Supervisor and Town Board. To be Determined I 11. Town of Wappinger ENGAGEMENT ADMINISTRATION The engagement will be staffed with various levels of experience for maximum efficiency while maintaining D'Arcangelo & Co., LLP's highest standards of quality control. All of D'Arcangelo & Co., LLP staff assigned to the engagement will have met or exceeded the continuing professional education requirements of the New York State Education Department and Government Auditing Standards. We will maintain the same staff on the engagement during the audit process. Leonard P. Carissimo. CPA - Engagement Partner Mr. Carissimo, a graduate of Utica College of Syracuse University, has practiced in public accounting since 1988. He concentrates almost exclusively in the area of governmental and nonprofit auditing and management advisory services. He has extensive experience with BOCES and School District audits and Federal single audits under OMB Circular A-133. Mr. Carissimo is a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants. He is also an associate member of the Certified Fraud Examiners. In addition, Mr. Carissimo is the past chairman of the State Society's Committee on Public School Accounting. Mr. Carissimo will be responsible for the overall planning of the engagement, coordination of the work performed, and preparation of the final reports. He will be accessible at all times to the District to respond to requests and coordinate communications. Patrick J. Powers. CPA - Concurring Partner Mr. Powers has been practicing public accounting since 1974. He has extensive experience in auditing school districts and governmental entities. He is a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants. In addition, Mr. Powers is a past chairman of the State Society's Committee on Public School Accounting. Mr. Powers will be responsible for concurring on the overall engagement and final reports. He will also be accessible to the School District' management during the year to respond to requests and for consulting matters. Rov J. Clark. CIA - Principal Mr. Clark, a graduate of Syracuse University, has practiced public accounting since 1990. He has extensive auditing and accounting experience with governmental and non-profit entities, including Federal single audits under OMB Circular A-133. He is a Certified Internal Auditor and a member of the Institute of Internal Auditors. Mr. Clark's responsibilities include supervising audit staff, report preparation, and client communication. 12. , I Town of Wappinger Mr. Clark maintains current on all governmental and non-profit accounting and auditing topics by regularly attending seminars during the year. Mr. Clark has attained the designation as a Certified Internal Auditor by the Institute of Internal Auditors and is in charge of the firms internal audit department. Additional Staff The remainder of our audit team will be drawn from our staff based on the time requirements to complete the assignment. We have integrated various levels of staff into our audit plan in order to perform our work as efficiently as possible and still maintain quality supervision of the work performed. All staff assigned to this engagement will have previous audit experience. 13. ~E~ ~milh ElIioll Keema <<1 Campen,. LtC Ccrtitled Public ^""""ntaot& 41 Oonsullll\ls To the Partners of D' Arcangelo & Co., LLP and the Center for Public Company Audit Finns Peer Review Committee ~ We have reviewed the system of quality control for the accounting and auditing practice of D' Arcangelo & Co., LLP, (the firm) applicable to non-SEC issuers in effect for the year ended September 30,2007. The firm's accounting and auditing practice applicable to SEC issuers was not reviewed by us since the Public Company Accounting Oversight Board (PCAOB) is responsible for inspecting that portion of the firm's accounting and auditing practice in accordance with PCAOB requirements. A system of quality control encompasses the firm's organizational structure and the policies adopted and procedures established to provide it with reasonable assurance of complying with professional standards. The elements of quality control are described in the Statements on Quality Control Standards issued by the American Institute of Certified Public Accountants ( the AICP A). The design of the system; and compliance with it, are the responsibilities of the finn. Our responsibility is to express an opinion on the design of the system, and the finn's compliance with that system based on ourreview. . Our review was conducted in accordance with standards established by the Peer Review Committee of the Center for Public Company Audit Firms and included procedures to plan and perfonn the review that was summarized in the attached description of the peer review process. aUf review would not necessarily disclose all weaknesses in the system of quality control or all instances of lack of compliance with it since it was based on selective tests. Because there are inherent limitations in the effectiveness of any system of quality control, departures from the system may occur and not be detected. Also, projection of any evaluation of a system of quality control to future periods is subject to the risk that the system of quality control may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, the system of quality controi for the accounting and auditing practice applicable to the non-SEe issuers ofD' Arcangelo & Co., LLP in effect for the year ended September 30,2007, has been designed to meet the requirements of the quality control standards for an accounting and auditing practice established by the AICP A, and was compiled with during the year ended to provide the firm with reasonable assurance of complying with applicable professional standards. As is customary in a peer review, we have issued a letter under this date that sets forth comments relating to certain policies and procedures or compliance with them. The matters described in the letter were not considered to be of sufficient significance to affect the opinion expressed in this report. ~ ft4.tt- K~( ~ 1-1..... Hagerstown, Maryland November 9, 2007 ~ 14. 1 I ~ ~ Town of Wappinger PART II CONTRACT COST AND PRICING "' III Town of Wappinger SCHEDULE OF AUDIT HOURS Our fees are based on the number of hours required to complete an assignment. It should be noted that our quotations assume assistance in preparing supporting schedules and providing personnel to assist in locating supporting documents, pulling folders, etc. Any schedules and supporting documentation we anticipate being provided by management will be outlined in our detailed planning memorandum. Our distribution of hours by stafflevel has been estimated based on the expected time it will take to complete each phase of the audit engagement. We have used past experience with similar clients and anticipated support of the Town's business office to determine our estimates. Additional procedures required to be performed periodically by the Town Board that extend beyond the scope ofthe audit have also been incorporated within our estimates. Engagement Phase Engagement Partner Estimated Hours Audit Audit ~anager Staff Total Planning 5 5 5 15 Field Work 35 30 20 80 Reporting 10 10 20 Total Hours 40 45 25 110 Expected On-Site Time 80% 75% 10% 15. Town of Wappinger DOLLAR COST BID Professional fees submitted by D' Arcangelo & Co., LLP for all services requested is based on the estimated number of hours by staff level at our blended hourly rates. Fee Schedule Rate Hours Total Partner $ 160 40 $ 6,400 Audit Manager $ 100 45 4,500 Audit Staff $ 70 25 1,750 Total Fee $ 12.650 If we anticipate the actual time required will be significantly different from our original estimates, we will discuss with you prior to incurring that time. D' Arcangelo & Co., LLP will also seek reimbursement for travel, lodging, subsistence, or other out-of-pocket costs incurred in connection with the audit of the Town. These costs are not expected to exceed $1,500. The individual signing certified that the offeror is entitled to represent the Firm, empowered to submit the bid, and authorized to sign a contract with the Town. Dated January 30,2009 D' Arcangelo & Co.. LLP (Offeror's Firm Name) ~/~ (Signature of Offeror' s Representative) Leonard P. Carissimo. Engagement Partner (Print Name and Title of Individual Signing) 16.