Addendum: Questions Submitted

Description

THE FOLLOWING ARE THE QUESTIONS TO ASKED: 1. Are there currently any pending issues between City and the most current auditing firm? Were there any controversial or disagreeing issues on the last engagement? a. None that we are aware of 2. What is the reason for changing auditing firms? a. There were two other funds added and the prior year bid was for one year with the option to re-new one year. Therefore, it was decided to go out for bids. 3. Is there a problem if we contact the previous auditing firm? a. No 4. On the last audit, did auditors issue a management letter? If yes, could we obtain a copy of it? a. Yes, attached to this addendum. 5. A Copy of management letter for FYE September 30, 2021, audit if any. a. Yes, it has been attached to this addendum. 6. Who handles the City’s accounting? Do you have a fee accountant? a. For the City the accounting is done in house. b. For the EDC, they do have a fee accountant. 7. Are you in liberty of discussing audit fees for the year under proposal? Could you give us an average of the audit fees for the last three years? a. FYE 2019 $47,503 FYE 2020 $57,500 FYE 2021 $70,000 8. What are the budgeted fees FYE September 30, 2022, financial audit? a. $60,000 is the proposed for FYE 2022. It has not been finalized or approved, so it is subject to change. 9. Who will be the main person (the contact person) for this audit? a. The Finance Director, Nereida Perez 10. Is the City open for auditing firm to conduct field work at your location? a. Yes, we are open 11. Will we have access to the internet? a. Yes, there is access to the internet. 12. Will the entity be requiring additional services beyond the audit? Preparation of Audit Report? Assistance in preparation of Financial Statements? Assistance in preparing closing journal entries? Assistance in implementing new GASB standards? a. Yes, our staff does not prepare the annual financial statements or disclosures. 13. How many adjusting journal entries did the external auditors for the fiscal year ending September 30, 2021, propose for the financial audit? a. There were 63 entries, out of which 35 of those were initiated by the City to correct errors we noted and provided to the auditors since we have already provided the trial balance. We had a shortage of staffing during the year and were unable to get all the entries done prior to the year closing. We are now fully staffed. 14.