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HomeMy Public PortalAbout100_031_Mauldin & Jenkins Proposal page 1-18 City Tybee Island, Georgia ,,.._,,, ,,, ,:-.,,,,,r,., ..„,„,,,, ,,, ..),„, R 1 t'itP srt� 44114 „ .'' 4 Proposal to Provide Audit Services for Fiscal Years June 30, ei 2013 through 2015 rte+ August 28, 2013 Mauldin & Jenkins, CPAs, LLC Meredith Lipson, CPA, Partner 300 Mulberry Street, Suite 300 AULDIN P.O. Box 1877 Macon, Georgia 31202-1877 81\zi, ENKINS Phone No: (800) 277-0050 Email: mlipson a,mjcpa.com Web: www.mjcpa.com AULDIN &JENKIN S Over 185 Governmental Units Served Public TOP N100 FIRMS AULDIN City of Tybee Island,Georgia ( ads & ENKINS Proposal to Serve l\� Table of Contents Transmittal Letter 1 Profile of Mauldin & Jenkins 3 Summary of Our Qualifications and Experience 10 Specific Audit Approach 16 Additional Data 26 Fees for Audit Services 27 Closing 28 Appendices: A — Copy of Last Peer Review Report �AULDIN �_; City of Tybee island,Georgia • NENKINS Proposal to Serve Letter of Transmittal August 28, 2013 Personal &Confidential City of Tybee Island,Georgia Attn: Angela I Judson 403 Butler Avenue P.O. Box 2749 'l'ybee Island,GA 31328 Ladies and Gentlemen: We are pleased to submit a qualifications package including cost estimates to provide annual financial and compliance auditing services for the City of Tybee Island, Georgia (the "City"). It is our understanding that the contract for such audit services will be for the fiscal years ending June 30,2013 through June 30,2015. We will conduct preliminary and final fieldwork and will issue all of the deliverables and reports prior to the required due dates. We hereby affirm that we meet the independence requirements of Government Auditing Standards, we are a properly licensed Certified Public Accountants as described by generally accepted government auditing standards, and that we do not have a record of substandard audit work. As professionals serving the public sector, Mauldin &Jenkins is qualified to serve the City. We believe that Mauldin & Jenkins is the leader in auditing state and local governments in the southeast. This leadership was attained not by us viewing all audits the same. Rather, this was achieved by recognizing that we are an important part of our client's success, with our objective being to ensure that accurate information is reported to the Mayor and Council, management, and its citizens. Given the complexities of the City's financial operations and the ongoing significant changes in accounting standards, we feel that it is extremely important that you select an accounting firm that is focused and extremely experienced in the government arena. We achieve these objectives and thus differentiate ourselves from our peers in the following ways: Experience with Governments. We believe that the knowledge and experience of Mauldin &Jenkins in serving state and local governments in the southeast and the strong working relationship we maintain with our clients cannot be matched by any other firm. Mauldin & Jenkins presently provides over 60,000 hours of service to approximately 185 governmental units in the Southeast on an annual basis. Such experience results in the utilization of over 65 full-time equivalent professionals. Consequently, our Mauldin & Jenkins professionals are thoroughly versed in the City's unique and complex functions, and we consistently provide the highest quality of service to our clients. Staffing. Our staff retention rates are considered to be among the best in the profession and much better than national and other regional firms). This fact, coupled with our vast array of government clients, results in a staff pool highly experienced with governmental entities with the definite capacity to serve the City. We are able to not only provide consistency with the partner and manager on our engagement telams, but seniors as well. Mauldin&Jenkins CPA's,LLC 1 1AULDIN City of Tybee island,Georgia ENKINS Proposal to Serve Free Continuing Education to Clients. Presently, Mauldin & Jenkins clients have the opportunity to register and receive approximately thirty (30) hours of continuing education on an annual basis, free of charge. We take our experience in serving governments, and choose timely and relevant topics to provide ongoing education to our clients. Sessions are limited to clients only. We also prepare periodic newsletters and address issues that governmental entities must address, and we provide timely webcasts to our governmental clients on topics that are of importance to them. We believe education, training and communication to be key elements of serving our governmental clientele. Responsiveness. We pride ourselves in responding to the needs of our clients and meeting their deadlines. This responsiveness is not only the ability to meet specified audit deadlines, but also the ability to respond to other requests. These requests could be in the form of accounting advice throughout the year, assistance with bond offerings, or in providing other professional services. Our ability to be responsive is'enhanced by the open communications and good working relationship we have with our clients. Organized to specifically meet your needs. Our profession's clients have indieated they want professionals who understood their business. The Governmental sector is a segment we Fhave decided to focus on and the second largest practice in our firm. This means the partners, mangers, and even many seniors in the Governmental practice spend virtually 100%of their time serving governments. The Tybee Island, Georgia would be a very important client to Mauldin &Jenkins and a client we would be proud to serve. We offer you a team with significant experience working with state and local governments. Thank you very much for allowing us to present our proposal. This proposal represents a firm offer for 60 days from the date of the proposal. As a member of Mauldin & Jenkins, Meredith Lipson is authorized to bind, and make representations for the Firm and will be the ultimate party responsible for the quality of the report and working papers. Please contact us at (800) 277-0050, 300 Mulberry Street, Suite 300, P.O. Box 1877, Macon,GA 31202-1877 if you have any questions about this proposal or any related matters. Sincerely, MAULDIN&JENKINS, LLC 2 Meredith Lipson,CPA Partner Mauldin&Jenkins CPA's,LLC 2 U I�D I?! City of Tybee Island,Georgia (� • & E N K I N S Proposal to Serve i} Profile of Mauldin & Jenkins Organization and Size Mauldin & Jenkins was formed in the State of Georgia in 1920 and has been actively engaged in governmental auditing since its inception. Mauldin & Jenkins is considered to be Georgia's largest locally owned provider of audit and accounting services,and one of the largest certified public accounting firms in the country. Mauldin & Jenkins services clients throughout the Southeastern United States. Mauldin & Jenkins, LLC is considered to be a large regional firm. We have offices in the following communities: Macon, GA **Albany, GA **Atlanta, GA ** Birmingham, AL ** Bradenton, FL ** Chattanooga, TN As noted in our transmittal letter,Mauldin &Jenkins provides and supervises over 60,000 hours of service to governmental entities on an annual basis. The firm's governmental practice is the second largest niche in the firm and is approximately 27% of the firm's total practice. However, size and resources alone are not the most meaningful measure of success; in the end, our clients -emain the best judges of Mauldin&Jenkins'value. Mauldin & Jenkins employs approximately 240 total individuals. Approximately 65 of those individuals have current governmental accounting and auditing experience. Serving Governments For Over 90 Years Mauldin & Jenkins' commitment to government began when our firm was established in 1920. Since then,we have viewed service to governments as significant to the overall success of the firm. Today, the governmental sector is an industry that has been specifically identified for our continued growth in professional services. Accordingly, all professionals,from entry-level accountants to part Hers(who select the governmental sector as their focus)are trained to understand the issues and meet the n ds of state and local governmental entities. As a foundation to providing the vast amount of annual hours of service to governmental entities, Mauldin & Jenkins employs over 65 full-time equivalent professionals dedicated to serving the governmental sector, and approximately 80 individuals with current governmental experience. This would include nine (9) partners and twelve (12) managers dedicated 100% to serving government clients whose background in serving this sector aggregately amounts to almost 300 years of experience just amongst that group of professionals. We also have numerous additional professionals with current experience in providing services to governmental entities — many of whom spend their time exclusively on government clients. Mauldin & Jenkins' dedicated professionals can bring a comprehensive understanding of the issues that face government entities as well as "bench strength" at all levels, allowing us to respond swiftly and effectively to your evolving needs. The goal of our government practice is to help governments improve their financial! processes and strategies so that they can in turn achieve their goal of improving the lives of their citizens. This shared commitment to the goals of our clients has resulted in a significant government clientele. As noted in our transmittal letter, we currently audit approximately 185 governments in the Southeast. We know of no other firm that can match our experience. Mauldin&Jenkins CPA's,LLC 3 AULDIN City of Tybee Island,Georgia k, 1 //JENKINS Proposal to Serve {' v Location of the Office from which the Work is to he Performed The Macon office will act as the lead in providing services to the City, with additional st f roles coming from our other offices as needed. The Macon office acts as the Firm's lead office on many governmental engagements across the Southeast. The individuals mentioned in this proposal, Mrs. Meredith Lipson and Mr. Miller Edwards, are known across the Southeast for their involvement with governmental entities. They have significant experience in governmental audit and accounting, and will play significant roles in providing ongoing services to the City. The Macon office currently employs 19 professionals with current experience in providing services to governmental entities and who will meet the continuing professional education requirements set forth in the U.S. General Accounting Office Government Auditing Standards. A further profile of the Macon office and the firm's professional staff as a whole is as follows: Macon Firm-wide Members(partners) 8 40 Managers 8 40 Supervisors and Seniors 12 55 Other Professional Stall&Consultants 14 75 42 210 Those We Serve and Services Provided Perhaps the greatest indicator of our reliability as a professional service provider to state and local governments is our list of governmental clients. Mauldin&Jenkins CPA's,LLC 4 IljAULDIN City of Tybee Island,Georgia rip" • s t ENKINS Proposal to Serve 1 ir.;‘,\_,,.e. 4,3) Cities. Cities in the Southeast we have audited or are in the process of serving within the fast two(2) years are: 1) Alachua 21) Duluth 41) North Port 2) Albany 22) Dunwoody 42) Palmetto 3) Alpharetta 23) Ellijay 43) Peachtree City 4) Americus 24) Fairburn 44) Phenix City 5) Anniston 25) Fayetteville 45) Powder Spring! 6) Austell 26) Forest Park 46) Quitman 7) Ball Ground 27) Forsyth 47) Riverdale 8) Beaufort 28) Grantville 48) Rome 9) Bradenton 29) Griffin 49) Roswell 10) Bremen 30) Jasper 50) Sandy Springs 11) Canton 31) Jefferson 51) Sharpsburg 12) Chamblee 32) Johns Creek 52) Social Circle 13) Chattahoochee Hills 33) Kennesaw 53) St. Marys 14) Clarkston 34) Lilburn 54) Suwance 15) College Park 35) Macon 55) Union City 16) Conyers 36) Milledgeville 56) Valdosta 17) Cordele 37) Milton 57) Venice 18) Covington 38) Monroe 58) Whitesburg 19) Decatur 39) Morrow 20) Douglasville 40) Naples Counties. Counties in the Southeast we have audited or are in the process of serving with ill)the past two (2)years arc: 1) Athens-Clarke 12) Floyd 22) Monroe 2) Augusta-Richmond 13) Forsyth 23) Peach 3) Barrow 14) Gwinnett 24) Pickens 4) Bibb 15) Henry 25) Rockdale 5) Cherokee 16) Jones 26) Spalding 6) Clayton 17) Liberty 27) Stephens 7) Columbia 18) Lincoln 28) Sumter 8) Crawford 19) Lumpkin 29) Taylor 9) Crisp 20) McIntosh 30) Tift 10) DeKalb 21) Mitchell 31) Toombs 11) Dougherty 32) Walton Mauldin&Jenkins CPA's,LLC S I AULDIN `' City of Tybee Island,Georgia _ • a�i & ENKINS Proposal to Serve School Systems. Boards of Education in the Southeast we have served within the past two(2)years are: 1) Atlanta Public Schools 16) Glynn County Board of Education 2) Bartow County Board of Education 17) Gwinnett County Board of Education 3) Bibb County Board of Education 18) Henry County Board of Education 4) Carroll County Board of Education 19) Laurens County Board of Education 5) Carrollton City Schools 20) Marietta City Schools 6) Cartersville City Board of Education 21) Marion County Board of Education 7) City of Dalton Board of Education 22) McDuffie County Board of Education 8) City Schools of Decatur 23) Oconee County Board of Education 9) Clayton County Board of Education 24) Polk County Board of Education 10) Cobb County Board of Education 25) Putnam County Board of Educalion 11) DeKalb County Board of Education 26) School District of Manatee Cou ty 12) Douglas County Board of Education 27) Rome Board of Education 13) Fayette County Board of Education 28) Thomas County Board of Educai ion 14) Forsyth County Schools 29) Twiggs County Board of Education 15) Fulton County Board of Education 30) Walton County Board of Education State Governmental Entities The State of Georgia has several agencies, departments and component units that are audited by an independent public accounting firm. We currently audit the majority of the State of Georgia's component units, and we audit approximately $12 billion (or 30%) of the State of Georgia's General Fund. Additionally,we audit several entities that are part of the State of Alabama's financial reporting entity. Please see the following for a listing of State governmental entities we audit: I) Alabama Prepaid Affordable College 10) Ga.State Financing& Investmei t Commission Tuition Program(PACT) 1 1) Ga.Student Finance Authority 2) Alabama Higher Education Loan Corporation 12) Kennesaw State University Athlltic Dept. 3) Ga. Building Authority 13) Ga.State Properties Commission; 4) Ga. Department of Community Health 14) Ga.State Road&Tollway Authority 5) Ga. DHR's Community Service Boards(8) 15) Stone Mountain Memorial Asso iiation 6) Ga. Education Authority 16) Ga. Lottery Corporation(Lotto) 7) Ga. Environmental Finance Auth.(GEFA) 17) Ga. Higher Education Facilities uthority 8) Ga. Higher Education Assistance Corp. 18) Ga. Superior Court Clerk's Cooperative Auth. 9) Ga. Ports Authority Mauldin&Jenkins CPA's,LLC 6 • AULDIN City ofTybee Island,Georgiat ,•i T ! I;�K I�S Proposal I to Serve p g« / Other Governments Other special purpose local governmental entities in the Southeast we audit include general authorities, etc. Other governmental entities we have audited within the past two(2)years are: I) Albany Dougherty Inner City Authority 25) Douglasville-Douglas Co. W&S Auth. 2) Americus/Sumter Co. Parks/Rec.Auth. 26) Dunwoody Convention&Visitors Bureau 3) Atlanta-Fulton County Water Res.Com. 27) Forsyth County Public Library 4) Atlanta Development Authority 28) Glynn County Airport Commission 5) Austell Natural Gas System 29) Gwinnet County Development Authority 6) Barrow County W&S Auth. 30) Gwinnett County Library System 7) Bartram Trail Regional Library System 31) Gwinnett County Water&Sewer Authority 8) Brunswick-Glynn Joint W&S Com. 32) Henry County Water&Seweraj Authority 9) Carroll County Water Authority 33) Houston County Library System 10) Central Midlands Regional Transit Authority 34) Lumpkin County Dev.Auth. 11) Central Savannah River Area Regional Comm. 35) Lumpkin County W&S Auth. 12) Chatsworth Water Works Commission 36) Macon Water Authority 13) Cherokee Airport Authority 37) Macon-Bibb County Landbank uth. 14) City of Albany Water,Gas&Light Corn. 38) MARTA/ATU Local 732'Ee's Ret.Plan 15) City of Albany's Chehaw Park Authority 39) Milledgeville-Baldwin Co.Chamber 16) Classic Center Authority of Clarke County 40) Newton County Water&Sewerage Authority 17) Clayton County Housing Authority 41) Ocmulgee Regional Library System 18) Clayton County Water&Sewer Authority 42) Peachtree City Tourism Association 19) Cobb-Marietta Water Authority 43) Peachtree City Water&Sewer Auth. 20) Columbia County Board of Health 44) Pike County Public Library 21) Crisp County Power Commission(etal) 45) Springbrook Golf Course 22) CSB-Albany 46) Toccoa-Stephens County Public Library 23) Development Authority of Walton County 47) Uncle Remus Library System 24) Dodge County-Eastman Dev.Auth. 48) Walton County Water&Sewer uth. Certificate of Achievement. Our experience in serving governments is greater than any other firm. Mauldin & Jenkins has served 185 governments in the past year, and assisted sixty-five (65) governmental units in obtainii g the GFOA's Certificate of Achievement for Excellen4e_in Financial Reporting, and, or the ASBO's Certificate of Excellence in Financial Reporting. Pie'se see on the following page a chart listing each of our current Certificate clients. Mauldin&Jenkins CPA's,LLC 7 Q►U LDI N City of Tybee Island,Georgia 3• ? $ l i".z ENKINS Proposal to Serve J� \*., fit, Cities: Counties: 1) Albany 18) John's Creek 34) Athens-Clarke County 2) Alpharetta 19) Kennesaw 35) Bibb County 3) Americus 20) Milledgeville 36) Cherokee County 4) Austell 21) Milton 37)Clayton County 5) Ball Ground 22) Monroe 38)Columbia County 6) Bradenton 23) Morrow 39) Floyd County 7) Canton 24) Naples 40)Forsyth County 8) College Park 25) Palmetto 41)Gwinnett County 9) Conyers 26) Riverdale 42) Henry County 10) Cordele 27) Rome 43) Liberty County 11) Decatur 28) Roswell 44) Lumpkin County 12) Douglasville 29) Sandy Springs 45) Paulding County 13) Dunwoody 30) Suwanee 46) Rockdale County 14) Fayetteville 31) Union City 47) Spalding County 15) Fairburn 32) Valdosta 16) Forest Park 33) Venice 17) Griffin Boards of Education: Other Governmental Entities: 48) Atlanta Public Schools 59)Central Savannah River Area Regional Comm. 49) Bibb County Board of Education 60)Clayton County Water Authority 50)Cartersville City Schools 61)Douglasville-Douglas County Water Authority 51) Clayton County Schools 62)Henry County Water&Sewerage Authority 52)Cobb County Schools 63)Lumpkin County Water&Sewerage Authority 53)Fayette County Board of Education 64) Macon Water Authority 54)Fulton County Schools 65) Metro.Atlanta Rapid Transit Auth.(MARTA) 55)Gwinnett County Board of Education 56)School District of Manatee County State Governmental Entities: 57)Ga. Environmental Finance Auth.(GEFA) 58)Ga.Ports Authority Other Non-Attestation Services Other services beyond the above attestation types which Mauldin & Jenkins currently provide to our clients include: 1) Federal and State income tax planning/return preparation; 2) Payroll tax issues; 3) Multi-state income tax issues; 4) State sales tax matters; 5) Information technology(IT)systems consulting; 6) Cost accounting issues; 7) Profitability consulting; 8) Advanced cost management; 9) Human resources(HR)predictive index services and interviewing and hiring 10) Business,strategic and succession planning. 1 1) Information technology engagements. Mauldin&Jenkins CPA's,LLC 8 .. AI]LDI11 City ofTybee Island,Georgia l ' & E N K I N S Proposal to Serve `,1,:ld J Oualit', Control Process Internal Review Process All audit and other attest engagements performed at Mauldin & Jenkins receive a high level of quality control reviews. On an engagement such as the City, a partner or client executive would be in the field performing the engagement for a great amount of time. We believe this allows our firm to rovide a high level of expertise and efficiency during the conduct of audit fieldwork which is a vital p alr to any audit engagement. We believe this aids our being able to get the engagement done quickly without creating additional headaches to our clients. A manager reviews all the audit work performed, which is followed by a partner revie . Once these reviews are conducted and completed, an independent partner to the engagement will re iew the audit working papers and the respective financial reports. We believe this multi-review process is important in providing a high-level product. External Quality Control Review The accounting profession, through the American Institute of Certified Public Accountants, formed the Division for CPA firms to provide a new level of self-regulatory control. The division consists of two sections; the SEC Practice Section and the Private Companies Practice Section. Membership is voluntary in either or both sections. There are requirements for membership in each section, which include mandatory professional liability insurance at specified levels, mandatory continuing education for each member of the professional staff and a tri-annual independent review of a firm's quality control system in its practice of public accounting. Mauldin & Jenkins, LLC has been a member of both sections from the inception of the Division for Firms. We are proud to announce that Mauldin & Jenkins, LLC has met all of the membership requirements, including the review process. In their tri-annual report dated October 21, 201 1, our reviewing firm gave a "clean" opinion on our system of quality control for our accounting and audit practice. A copy of the report on our most recent external quality control review is provided in Appendix A. The quality control review included a review of specific government engagements. No letter of comment was received as a result of this review. We are quite proud to be one of the few Georgia-based firms to have undergone this review and to have received an unqualified opinion from a large reputable national firm. Desk Reviews or Field Reviews Only one desk reviews or field reviews have been performed on Mauldin & Jenkins in many years. In January 2008, as part of the Federal Department of Education's random testing of the audits of local boards of education, a review was performed by the Federal Office of Inspector General (01G) regarding a Single Audit engagement of a local board of education. We are quite pleased to note the examiner provided Mauldin &Jenkins a letter of high marks for the performance of the respective Single Audit and this comes at a time when Federal regulators are condemning the profession for poor performance of such Single Audits. Unofficially and orally provided,the.nxaminer noted this Single Audit engagement to be the best such engagement reviewed in his experience. Mauldin&Jenkins CPA's,LLC 9 AJAULDIN City of Tybee island,Georgia (`�.: • '• I E\K INS Proposal to Serve 1 1� ` No Disciplinary Actions Mauldin & Jenkins has not had any disciplinary actions taken (nor are any pending) against the firm during the past three(3)years with State or Federal regulatory bodies or professional organizations. Summary of Our Qualifications and Experience Proposed Staffing In order to provide the highest quality service in the most cost efficient manner, Mauldin & Jenkins has formed a client service team which will function as a cohesive unit, and would represent a superb assortment of talent and experience for the audit of the City. The unit would be assembled s follows: 1. Wade Sansbury Lead Partner& Ultimate Partner Respons ble 2. Meredith Lipson or Miller Edwards Concurring Quality Control Review Partner 3. David Irwin Manager with day-to-day responsibility of overall audit The above team dedicated to audit the City will include (at a minimum): two (2) partners, one (1) manager, and at least one (I) staff professionals. The managers and staff professionals will be substantially on-site full time throughout the conduct of their role in the audit. Other govIrnmental audit professionals will be available to assist throughout the fieldwork and the preparation f the financial reports. The audit partner in-charge of fieldwork will correspond with the City managemCnt on financial reporting, audit, and related issues on an ongoing basis, and this individual will also be dedicated to serve the City throughout fieldwork, reporting and conclusion in all respective fiscal years. Mat Idin &Jenkins has the depth of resources which allows us to provide you with significant resources of knowledgeable professionals to meet your deadlines. We realize that, regardless of our Firm's qualifications, the quality of service the City receives will correlate directly to the skill level, dedication, and resourcefulness of your audit engagement team. The individuals listed below have been selected to serve the City based on their years of hands-on experience working with government entities, and for their commitment to exceeding client expectations. Your team members are dedicated and resourceful, and among the most talented in their field. We encourage you to contact us whenever you have questions and to view us not just as auditors, but as true advisors. Please see the following for information on several key individuals who are available to serve the City during the audit process. Mauldin&Jenkins CPA's,I,LC 10 AL LDIN City of Tybee Island,Georgia I '7 & E N K I N S Proposal to Serve '� ?<4;3/' \\ � Meredith Lipson, CPA Lead Partner& Ultimate Partner Responsible Meredith Lipson is a member (i.e. partner) and a certified public accountant with Mauldin & Jenkins. Her experience covers a variety of clients in state and local governments and non-profit organizations. She is registered and licensed to practice in the State of Georgia and the State of Florida, and has been with the firm for twenty-two (22) years. Meredith is a partner who works exclusively in the governmental sector of the Firm's audit practice. Years of Professional Experience and Years with Firm Meredith has twenty two years of experience with the Firm. She has served on the Firm's Partner Advisory Board. Meredith serves both large and small governmental units, and is involved in serving over sixty (60) such governmental entities. Meredith obta ned her CPA certificate in 1993. The following is a summary of governmental clients served by Meredith in the capacity of engagement partner in-charge or concurring review partner. List of Audits Performed for Governments in the Last Three (3) Years • City of Albany,GA • Jones County,GA • City of Americus,GA • Liberty County,GA • City of Cordele,GA • Lincoln County,GA • City of Fayetteville,GA • Rockdale County,GA • City of Griffin,GA • Spalding County,GA • City of Macon,GA • Sumter County,GA • City of Milledgeville,GA II Taylor County,GA ■ City of Riverdale,GA ■ Albany Water,Gas& Light Commission • City of St.Marys,GA • Georgia Ports Authority • City of Tifton,GA • Macon Water Authority • City of Valdosta,GA ❑ Georgia Dept of Community Health II Bibb County School System ❑ Clayton County Housing Authority ❑ Clayton County School System ❑ GA Higher Education Asst. Corporation ❑ Fayette County School System • Heart of GA Altamaha Regional Commis ion • Henry County School System • Central Savannah River Area Regional C mmission • Augusta-Richmond County,GA • Milledgeville-Baldwin County Downtow • Clayton County,GA Development Authority • Crisp County,GA ❑ Tifton Downtown Development Authori • Dougherty County,GA ❑ Jeffersonville-Twiggs County Developm t Authority • Gwinnett County,GA ❑ Henry County,GA Mauldin&Jenkins CPA's,LLC 11 811AULDIN City of Tybee island,Georgia) • • � , ENKINS Proposal to Serve kit Degree/Certifications and Audit Training Meredith graduated from the University of Georgia with a Bachelor of Business Administration in Accounting. She has been a featured speaker at various GGFOA Conferences and other GGFOA workshops, free quarterly CPE provided to our clients,and several internal conferences. Meredith has obtained and instructed a significant amount of continuing professional edu ation over the last three years including: • 2013 M&J yoU Conference, Buford,Georgia—Instructor and Participant • 2013 GAS Clarity Standards Update, Atlanta, Georgia • 2012 National AICPA Governmental Accounting and Auditing Conference, Washi igton D.C. • 2012 Mauldin &Jenkins Client Training—2nd Quarter instructor in 2012 GGFOA Annual Conference, Savannah,Georgia—Instructor and Participant • 2012 M&J yoU Conference, Stone Mountain,Georgia—Instructor and Participant • 2011 Georgia Association of School Board Officials Annual Conference---Instruct*r • 2011 Mauldin &Jenkins Client Training—4th Quarter- instructor • 2011 Mauldin &Jenkins Annual Conference, Peachtree Authority(Instructor and participant) • 2011 GGFOA Annual Conference, Savannah, Georgia • 2011 National AICPA Governmental Accounting and Auditing Conference, Washi gton D.C. • 2011 PPC Audit Training by Audit Watch,Atlanta, Georgia Professional and Civic Activities Meredith is a member of the American Institute of Certified Public Accountants, the Georgia Society of CPAs, the Government Finance Officers Association, and the Georgia Government Finance Officers Association(GGFOA). She has served on the Ethics Committee of the Georgia Society of C As. Miller G. Edwards, CPA Lead Partner& Ultimate Partner Responsible Miller Edwards is a member(i.e. partner)and a certified public accountant with Mauldin & Jenkins. His experience covers a variety of clients in federal, state, and local government. He is responsible for the firm-wide governmental practice division of Mauldin &Jenkins. He also is a member of the Firm's five (5) member Executive Committee which governs the actions and directions of the Firm, and he is a member of the Firm's Audit&Accounting(A&A)Committee. Years of Professional Experience and Years with Firm Beginning in June of 1986, Miller has twenty-seven (27)years experience in providing public accounting services to the governmental sector, all of which has occurred as an auditor with Mauldin & Jenkins. Since becoming a partner, Mauldin & Jenkins has become the leader in auditing state and local governmental units in the Southeast helping the Firm achieve the status of auditing the aggregation of more cities, counties, school systems, other local governmental units, state agencies and authorities than any other certified public accounting firm. Under Miller's leadership, Mauldin & Jenkins now serves approximately 200 governmental units. As a partner, Miller serves both large and small governmental .Mauldin&Jenkins CPA's,LLC 12 A1ULDIN City of Tybee Island,Georgia t s-4 &, ENKINS Proposal to Serve units, and is involved directly and indirectly in serving over 70 such governmental entities over the past three(3)years. List of Audits Performed for Governments in the Last Three (3) Years Counties: Cities: • Athens-Clarke County • City of Albany • Augusta-Richmond County • City of Americus • Bibb County • City of College Park ■ Clayton County • City of Conyers • Columbia County • City of Cordele • Crisp County • City of Covington ■ Dougherty County • City of Fayetteville ■ Gwinnett County • City of Griffin • Henry County ■ City of Macon • Jones County • City of Milledgeville • Lincoln County • City of Morrow • Monroe County ■ City of Peachtree City • Oconee County,SC • City of Rome • Peach County • City of Roswell • Rockdale County • City of Suwanee • Spalding County n City of Union City Boards of Education: - City of Valdosta • Atlanta Public Schools Other Governmental Units: • Bibb County Board of Education • Clayton County Water Authority • Clayton County Board of Education • Columbia County Board of I lealth • Fayette County Board of Education • Crisp County Power Commission • Fulton County Board of Education • Henry County Water&Sew'rage Authority • Glynn County Board of Education E Houston County Library Sys em • Henry County Board of Education n Macon Water Authority • Marion County Board of Education Ocmulgee Regional Library ystem ■ Twiggs County Board of Education • Peachtree City Tourism Ass iation • Peachtree City Development uthority State of Georgia & Alabama Entities: • Peachtree City Water&Sew rage Authority • Ga. Department of Community lealth • Ga. State Financing&Investment Commission • Alabama Higher Ed. Loan Corporation • Ga. State Road and Tollway Authority • Alabama Prepaid Affordable Tuition Fund • Ga. Student Finance Authority • Ga. Building Authority is Ga. Education Authority • Ga. Environmental Finance Auth.(GEFA) • Ga. Higher Education Assist.Corporation • Ga. Lottery Corporation(Lotto) • Ga. Ports Authority Mauldin & Jenkins CPA's,LLC 13 AULDIN City of Tybee Island,Georgia & ENKINS Proposal to Serve • 2013 M&J GASI3 No. 63 and No. 65 regarding Deferred Inflows and Defe,Lred Outlfows, Webcast Instructor • 2013 M&J GASB No. 60 regarding Service Concession Arrangements, Webcast instructor • 2013 M&J University Annual Conference — Lake Lanier islands, Georgia — Instructor and Participant • 2013 University of Georgia's Carl Vinson Institute of Government Governmen.al Accounting and Financial Reporting sessions for members of the National Audit Office f the Peoples Republic of China--Athens,Georgia and Macon,Georgia.—Instructor • 2013 Accounting for Fixed Assets sessions at the City of Dunwoody Accountin Conference — Dunwoody,Georgia—Instructor • 2013 AICPA Clarity Standards Update provided by Mauldin&Jenkins—Macon, eorgia • 2013 University of Georgia's Carl Vinson Institute of Government Introductory and Intermediate Accounting and Financial Reporting to employees of State & Local Governmen of Georgia -- Macon, Georgia—Instructor • 2012 Georgia Society of CPA's Governmental Conference — Atlanta, Georgia Instructor and Participant • 2012 National AICPA Governmental Accounting and Auditing Update—Washington, DC • 2012 Georgia Council of Court Administrators, Governmental Accountin Update and Introduction session—Savannah Georgia—Instructor • 2012 Georgia Government Finance Oficers Association Annual Conference, — Savannah, Georgia—Instructor and Participant • 2012 M&J University Annual Conference—Stone Mountain State Park, Georgia-r Instructor and Participant • 2012 University of Georgia's Carl Vinson Institute of Government Introductory and Intermediate Accounting and Financial Reporting to employees of State & Local Governments of Georgia— Macon,Georgia—Instructor • 2011 Mauldin & Jenkins Annual Governmental Conference -- Peachtree City. Georgia — Instructor and Participant • 2011 Yellow Book Update session for the Georgia Society of CPA's Non-Profit Conference — Atlanta, Georgia—Instructor • 2011 Participant at the Georgia Government Finance Officers Association Annual Conference _. Savannah,Georgia-Instructor and Participant • 2011 University of Georgia's Carl Vinson Institute of Government introductory and Intermediate Accounting and Financial Reporting to employees of State & Local Governments of Georgia -- Macon,Georgia—instructor • 2011 PPC Audit Training by Audit Watch—Macon,Georgia Miller is an instructor/consultant for the University of Georgia's Carl Vinson Institute of Government providing as much as 200 hours annually of continuing education to state and local government officials on the subjects of governmental accounting and financial reporting. I-Ie provides similar instructional services on behalf of the Georgia Government Finance Officers Association (GGFOA) and the Government Finance Officers Association of Alabama (GFOAA), and is often a guest speaker at various governmental trade shows and conventions. in the past ten (10) years, he has been a speaker at each of the GGFOA's annual conferences on various subjects ranging from: panel member o experts, audit efficiency of governmental units; auditor independence; CAFR Prep 101; several GASI3 p onouncements implementation sessions; and,each year's Audit and Accounting(GASB)updates. Mauldin&Jenkins CPA's,LLC 14 AULDIN City of Tybee Island,Georgia h>, !_41) & ENKINS Proposal to Serve \ ; Professional and Civic Activities Miller is a Certified Public Accountant with licenses held and maintained in Georgia and 'lorida. Ile is a member of the American Institute of Certified Public Accountants, Georgia Society of ertified Public Accounts, the Government Finance Officers Association (GFOA), the Georgia Gove nment Finance Officers Association,and the Government Finance Officers Association of Alabama. Other Staff Auditors & Accountants Prior experience with government audits is as important for the staff as it is for management. Experience in governmental accounting and auditing minimizes the amount of time the staff will require to fully understand the complexities of the operations and financial accounting and reporting ystems. Prior experience also enables the staff to recognize problems early in the engagement. This, in turn,allows the desired early consideration and resolution of problems. All staff assigned to the City's engagement will have prior experience serving government clients and/or will have substantial government audit training. All staff assigned to the City will be on-site throughout the entire engagement. Changes In Personnel (for Both Auditors and Specialists) We place a high level of importance upon the continuity of our team members. We reco nize that this is also an important factor for the City, as it limits the amount of retraining that needs to be performed each year. it is also our goal to minimize disruptions to the City by staffing the engagement so as to provide continuity, both during and between audits. It is the Firm's policy not to rotate keY audit staff or specialists off a multi-year contracted audit engagement. Consequently, it is not anticipated that any key audit personnel or specialists will be rotated away from the City's annual audit. The only changes at key levels that could possibly occur would stern from City actions and the escalation in ability of lower levels of staff to key roles. Any such changes in key personnel would always be discussed timely with City officials to their satisfaction and will be approved in advance. Our staff retention rates are considered to be among the best in the profession (and much letter than other firms). We are able to not only provide consistency with the partner and manager on ©ur engagement teams—but all levels of personnel. Many of our clients will tell you that they routinely I ave seniors and staff return to serve them year after year. Education All partners and staff of Mauldin & Jenkins receive substantial continuing educati i in audit and accounting —typically over 100 hours of such study per year. As soon as a staff person becomes a key ingredient to any type of niche service such as governmental audit, accounting and consulting, specific continuing education is sought. A good example includes sending our staff with over one (1) year of governmental audit experience to the GFOA's intermediate training for audit and accounting wherever it may be taught. From that point onward, individuals are sent to various GFOA and GGFOA training courses,and AICPA governmental-specific courses. All staff associated with the annual audit of the City will exceed all the continuing profes$ional education requirements contained in the Yellow Book throughout the term of the agreement. marrldin (t Jenkins CPA's,LLC 15 Thviiiik IVIA ULDIN City of Tybee Island,Georgiaf + & 4 ENKINS Proposal to Serve tgi V Specific Audit Approach Our Understanding of the Audit Requirements The following pages attempt to demonstrate to you our understanding of the nature of the audit services and our general plan for meeting your needs. Scope of Our Work and Required Audit Reports The overall objective in serving the City is to render our professional opinion on the fair presentation of the City's basic financial statements prepared in accordance with accounting principles generally accepted in the United States of America for each of the respective years ending June 30th. The audits will be conducted in accordance with auditing standards generally accepted in the United States of America, promulgated by the American Institute of Certified Public Accountants; Government Auditing Standards, issued by the Comptroller General of the United States; all applicable requirements of audits for local governments by the laws of the State of Georgia. Should a Single Au it be required, the audit will be performed in accordance with the American Institute of Certified Publ c Accountants (AiCPA) Standards, Government Auditing Standards, the Single Audit Act of 1984 and tl e Single Audit Act Amendments of 1996, and the Office of Management and Budget (OMB) Circular A 133, Audits of States, Local Governments,and Nonprofit Organizations. Our audits will be completed,and reports will be issued by the deadlines,assuming normall cooperation of City personnel. The audits will be designed to accomplish the following objectives: I 1. To determine whether the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information and the respective changes in financial position and, where applicable, cash flows, and the respective budgetary comparison for the General Fund and major special revenue funds in conformity with accounting principles generally accepted in the United States of America. The individual financial statements,(schedules, and related information are not necessary for fair presentation, but will be presented as additional data. This supplemental information will be subjected to the tests and other audi ing procedures applied in the audit of the basic financial statements, and an opinion will be give as to whether the supplemental information is fairly stated in all material respects in relation o the financial statements taken as a whole. 2. To obtain an understanding of the five components of internal control that is sufficient to assess the risks of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing, and extent of further audit procedures. Because an audit of a government's financial statements is based on opinion units, our consideration of internal control in assessing the risks of material misstatement will address each opinion unit. We will obtain a sufficient understanding by performing risk assessment procedures to a) evaluate the design of controls and b)determine whether they have been implemented. We will use such knowledge to identify types of potential misstatements; consider factors that affect the risks of material misstatements; and design tests of controls, when applicable, and subsequent procedures. In acquiring an understanding of and assessing internal control, we will consider computer controls ■ as well as the controls over manual portions of the system. I Mauldin&Jenkins CPA's,LLC 16 • 1 • AULDIN City of Tybee Island,Georgia 811, ENKINS Proposal to Serve f 3. To plan and perform the audit to obtain reasonable assurance about whether the financial statements, including note disclosures,are free of material misstatement,whether caused by error or fraud, and material misstatements arising from illegal acts that have a direct and material effect on the determination of financial statement amounts. Illegal acts are defined in auditing standards as violations of laws or government regulations. Although not explicitly stated in auditing standards, the phrase "laws and government regulations" generally has been interpreted to implicitly include the provisions of contract and grant agreements. The AICPA Codification of Statements on Auditing Standards, Section AU 317 requires the auditor to consider laws and regulations that are generally recognized by auditors to have a direct and material effect on the determination of financial statement amounts. The auditor's responsibility to detect and report misstatements resulting from illegal acts having a direct and material effect on the determination of financial statement amounts is the same as that for misstatements caused by errors or fraud. In addition, we will be aware of the possibility of illegal acts that may have occurred that, in particular circumstances may be regarded as having material but indirect effects on financial statements. If specific information comes to our attention that provides evidence concerning the existence of possible illegal acts that could have a material indirect effect on the financial statements,we will apply audit procedures specifically directed to ascertaining whether an illegal act has occurred as set forth in SAS No. 99, Consideration of Fraud in a Financial Statement Audit. We will promptly notify City officials in writing of any irregularities, illegal acts, or indications of illegal acts as we become aware of them. 4. To provide reasonable assurance of detecting material misstatements that result from violations of provisions of contracts or grant agreements that could have a direct and material effect on the determination of financial statement amounts or other financial data significant to the audit objective. If specific information comes to our attention that provides evidence concerning the existence of possible violations of provisions of contracts or grant agreements that could have a material indirect effect on the financial statements we will apply audit procedures specifically directed to ascertaining whether that violation of the provisions of contracts or grant agreements has occurred or is likely to have occurred. In addition, if we become aware of abuse that could be quantitatively or qualitatively material to the financial statements,we will apply audit procedures specifically directed to ascertain whether abuse has occurred and the potential effect on the financial statements or other financial data significant to the audit objectives. 5. To evaluate whether the entity has taken appropriate corrective action to address findings and recommendations from previous engagements that could have a material effect on the financial statements. We will use this information from previous engagements in assessing risk and determining the nature,timing, and extent of current audit work, including determining the extent to which testing the implementation of the corrective actions is applicable to the current audit objectives. 6. To ensure that audit documentation is prepared in sufficient detail to provide a clear understanding of the nature,timing, and extent of auditing procedures performed to comply with generally accepted government auditing standards and other applicable standards and requirements; the results of the audit procedures performed and the audit evidence obtained; the conclusions reached on significant matters; and that the accounting records agree or reconcile with the audited financial statements. We will also document, before the audit report is issued, evidence of supervisory review of the work performed that supports findings, conclusions, and recommendations contained in the audit report. 7. To determine whether the City complied with laws,regulations,and the provisions of contracts or grant agreements pertaining to federal awards that have a direct and material effect on each major Mauldin&Jenkins CPA's,LLC 17 • AULDIN ., City of Tybee Island,Georgia tjENKINS Proposal to Serve program. With regard to internal control over compliance,we are required to do the following(in addition to meeting the requirements of Government Auditing Standards): (1) perform procedures to obtain an understanding of internal control over federal programs that is sufficient to plan the audit to support a Iow assessed level of control risk for major programs, (2) plan the testing of internal control over major programs to support a low assessed level of control risk for the assertions relevant to the compliance requirements for each major program, and (3) perform tests of internal control (unless the internal control is likely to be ineffective in preventing or detecting noncompliance). With regard to the submission of the Data Collection Form(Form SF- SAC) and the Single Audit Reporting package using the Federal Audit Clearinghouse Internet Data Entry System, we will certify the accuracy of the information included in Parts H and III of the form. Throughout the contract period, we will advise the City on implementation of new accounting standards as promulgated by the authoritative bodies, and will advise the City on specialized accounting questions which may arise. Reports to be Issued We will prepare the required audit reports including those required by Government Auditing Standards at the completion of the audit, in accordance with Generally Accepted Auditing Standards. Reports to be issued include the following: 1. Standard report on the financial statements. Reference will be made that the audit was conducted in accordance with generally accepted government auditing standards. We will include in our report on the financial statements a reference to separate report(s) containing a description of the scope of our testing of internal control over financial reporting and compliance with laws,regulations,and the provisions of contracts or grant agreements and the results of those tests. Additionally, we will state in this report whether the tests performed provided sufficient, appropriate evidence to support an opinion on the effectiveness of internal control over financial reporting and on compliance with laws, regulations, and provisions of contracts or grant agreements. Our report will state that the separate report is an integral part of the audit and should be considered in assessing the results of the audit. 2. A 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 will be prepared. This report will describe the scope of the our testing of internal control over financial reporting and compliance with laws, regulations, and provisions of contracts or grant agreements and present the results of those tests. Also, separate identification and written communication of all significant deficiencies in internal control, including and identifying those significant deficiencies that are individually or cumulatively material weaknesses, will be made. As stated in paragraph 5.12 of Government Auditing Standards, "auditors should report as applicable, to the objectives of the audit (1) deficiencies in internal control considered to be reportable conditions as defined in AICPA standards, (2) all instances of fraud and illegal acts, unless clearly inconsequential,and(3)significant violations of provisions of contracts or grant agreements and abuse". 3. A Schedule of Findings and Responses will be prepared and will include the following two components: (1) a summary of the auditor's results; and (2) findings related to the financial statements which are required to be reported in accordance with generally accepted government auditing standards. Mauldin&Jenkins CPA's,LLC 18