Q&A for Financial Audit ServicesRFP #13- FIN- 24 -M -01 FINANCIAL AUDIT SERVICES
QUESTIONS AND ANSWERS
July 3, 2013
1. How long have Armstrong & Vaughn served as your auditors; does City of
Schertz have a rotation policy?
Answer. 5 yrs. and there is no rotation policy
2. Does the Finance Department staff assist in preparing the CAFR & Single
Audit reports (and to what extent)?
Answer. The Finance Staff provides electronic file of adopted budget and
final budget, trial balances for all funds, pool cash reconciliation, accruals
for payroll expenses and payroll reports TMRS and workers comp,
schedules for accruals of revenues, fixed assets, debt service model and
schedule, any new debt issued during the year being audited, all journal
entries for the year, copies of bank statements and investment accounts,
copy of investment policy, open purchase order report, schedule of grants,
estimated commitments schedule, and staff will pull items requested by the
auditor.
3. How many days are the auditors on -site? (Interim & Year -End Fieldwork)?
Answer. Please refer to the proposal currently out for bid. The City is
asking each proposer to submit a detailed schedule of how each firm will
complete the audit.
4. What has been the City's Budget for Audit services in the past?
The complete audit expense including single audit has ranged from $45,000
to $61,000.
5. Are any of the Component Units audited by other auditors? Any separate
reports expected to be issued by the City auditors?
Answer. No
6. What level of assistance does the City provide in preparing the financial
statements?
Answer. Refer to Question #2
7. Statistical Schedules
Answer: Staff will assist auditor in completing statistical tables
8. Footnote schedules
Answer: Auditor will complete footnote schedules.
9. MD &A
Answer. Auditor will complete tables within MD &A and city staff will
prepare MD &A written portion
10. Transmittal letter
Answer: Staff will prepare transmittal letter.
11. Will Word and Excel files for the prior year financial statement be available?
Answer: The financial statement is available in PDF
12. Etc.
Answer. Not sure what this means
13. Can you provide a copy of the prior year management letter?
Answer. Prior year management letter will be made available to the
selected firm
14. How many audit adjustments were there in the previous year?
Answer: 30 adjustments and of those 5 were Prepared by client
15. How many staff and how long were the previous auditors in the field? Did
this time include financial reporting?
Answer. Staff ranged from 2 to 5 for approximately 2 weeks
16. Any litigation or fraud issues?
Answer: During annual audit, city attorney will provide a letter to auditor
with this information.
17. Any turnover in finance or other key management positions?
Answer: No
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18. Does the City expect the federal or state single audit to be applicable this
year?
Answer. As of July 3, 2013, no
19. Any new debt issues or debt refunding expected this year?
Answer: Yes, tax notes issued twice as of July 3, 2013
20. Any significant construction activity expected this year?
Answer. Yes, construction in progress of bond projects and water projects
21. What was the prior year fee or expected budget for the current year?
Answer. Prior year audit fee was $51,000
22. Please confirm that the internal control structure for the business type
activities is identical to the city's general controls
Answer: Yes
23. Please confirm that the accounting for the business type activities is
centralized with the city's general operations
Answer. Yes
24. Will a copy of the prior year's SAS 114 letter be made available?
Answer: Yes, once the auditor has been selected.
25. Will a copy of the prior year's management letter or report on internal
controls be made available?
Answer: Yes
26. Will we be able to review the prior year's adjusting journal entries proposed
as a result of the audit and any Waived adjusting entries proposed as a result of
the prior year's audit? Were any of the Waived adjustments subsequently
recorded by the City?
Answer. Yes, the selected firm will have an opportunity to review prior year
adjusting entries
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27. Does the City anticipate to be subject to single audit compliance
requirements during the 2013 fiscal year?
Answer. As of July 3, 2013, no.
28. Were there any major changes since the prior year?
Answer. No
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