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RFP 2019‐11: Professional Auditing Services Questions 8‐14 Submitted to Mel Maier, Otsego County Finance Director Submitted by Aaron Stevens, CPA, Principal at Maner Costerisan on Tuesday, December 18, 2019 at 10:25 a.m. Question 8A: Why is the County bidding? Otsego County’s Response to Question 8A: Standard contract cycle is completed Question 8B: Are you happy with the current auditors? Otsego County’s Response to Question 8B: The working relationship with the current auditors is satisfactory. Happy/unhappy was not a reason for issuing the RFP for auditing services. Question 8C: Is a change in audit firms anticipated? Otsego County’s Response to Question 8C: The County does not know which firm will be awarded the bid for audit services. All bids will be evaluated using the criteria laid out in the RFP. Question 9A: How many professionals are typically onsite for audit fieldwork? Otsego County’s Response to Question 9A: 4‐5 Question 9B: What experience level are the professionals? Otsego County’s Response to Question 9B: Primarily staff with 2‐3 years of experience and one manger Question 9C: How many days are they onsite? Otsego County’s Response to Question 9C: 10‐13 days ---PAGE BREAK--- Question 10A: How many material audit adjustments were made for the 2018 financial statements? Otsego County’s Response to Question 10A: There were 25 audit adjustments Question 10B: What was the nature of the adjustments? Otsego County’s Response to Question 10B: Taxes receivable, capital assets, accrued expenses, long‐term debt, and pension and OPEB liabilities and the related expenses Question 10C: Do you anticipate similar audit adjustments being necessary for the 2019 financial statements? Otsego County’s Response to Question 10C: No Question 11A: With the accounting and financial reporting functions of the County Library being decentralized, have the auditors performed fieldwork at the Library? Otsego County’s Response to Question 11A: Yes Question 11B: If so, how many professionals, what experience level, and how many days onsite? Otsego County’s Response to Question 11B: One staff auditor will usually spend a little over ½ a day at the Library location and finish off‐site, if necessary. Question 12A: Are the accounting and financial reporting functions of the component units that are not audited separately centralized and subject to the County’s internal controls? Otsego County’s Response to Question 12A: The component units that are not audited separately are decentralized from the County and each component unit maintains their own internal controls. Question 12B: If decentralized, how many professionals, what experience level, and how many days onsite? Otsego County’s Response to Question 12B: One staff auditor will usually spend a little over ½ a day at each location and finish off‐site, if necessary. ---PAGE BREAK--- Question 13A: How much has the County budgeted for the audit of the 2019 financial statements? Otsego County’s Response to Question 13A: $44,940 Question 14A: Have the auditors charged fees over and above the amounts included in the engagement letter in the past Otsego County’s Response to Question 14A: Yes Question 14B: If so, what was the nature of the additional services provided? Otsego County’s Response to Question 14B: F‐65 preparation