PROPOSAL TO PROVIDE SERVICES TO. And. Affiliated Entities. for the fiscal years ending June 30, 2016, 2017, 2018, 2019 and 2020.

Transcription

1 PROPOSAL TO PROVIDE SERVICES TO And Affiliated Entities for the fiscal years ending June 30, 2016, 2017, 2018, 2019 and 2020 Submitted by: 6850 Austin Center Boulevard, Suite 180 Austin, Texas (513) February 9, 2016

2 TABLEOFCONTENTS EXECUTIVE SUMMARY 1 REASONS ATCHLEY & ASSOCIATES SHOULD BE YOUR AUDITORS AND ADVISORS Commitment to Non-Profit Organizations 2 Other Reasons that Make Us the Best Choice 2 Similar Engagements with Other Entities 3 RESOURCES AND ORGANIZATION OF OUR FIRM Our Firm 4 Our Services 4 Our Mission 4 Our Core Values 5 Our Office 5 Quality Control and Peer Review 5 RSM Alliance 5 ASSIGNED FIRM PERSONNEL Audit Team 6 Educational Background and Continuing Professional Education 8 License to Practice 8 Staff Rotation 8 Sub Contractors 8 SPECIFIC AUDIT APPROACH Task / Activity Plan 9 Communication 10 Anticipated Potential Audit Problems 10 Assistance Expected 11 FEE ESTIMATES 12 APPENDIX Copy of 2013 Peer Review Report Page

3 February 9, 2016 Texas Municipal League 1821 Rutherford Lane, Suite 400 Austin, Texas EXECUTIVE SUMMARY Atchley & Associates, LLP is pleased to submit this proposal to provide assurance and tax services for the Texas Municipal League and Affiliates (the Entities). We believe we are well suited to serve you and should be selected to provide your audit and other services for the following reasons: Atchley & Associates, LLP is committed to providing the highest quality services to our clients. We have the resources and experience of a larger firm while also providing the close personal attention that our clients desire and deserve. We believe in an interactive business relationship with our clients for the entire year, not just during the audit fieldwork. We believe in sharing accounting, audit and tax information with client personnel on a timely basis throughout the year, as providing such support benefits both our clients and our firm. Finally, you will be an important client of Atchley & Associates, LLP. You will receive attention from partners and staff who are familiar with your entity and who are interested in the success of your operations. We bring our knowledge and experience from other organizations to your engagement. As shown throughout our proposal, we have personnel who have relevant experience, and who will use a proven approach to provide the most efficient and effective audit for the Entities. We appreciate this opportunity to present this proposal to you, and we will be pleased to meet with you to provide any additional information. I may be reached at 6850 Austin Center Boulevard, Suite 180, Austin, Texas 78731, by phone at (512) or by at rmarchbanks@atchleycpas.com. Very truly yours, Atchley & Associates, LLP Robert Marchbanks, CPA/CGMA, Partner

4 Commitment to Non-Profit Organizations REASONS ATCHLEY & ASSOCIATES, LLP SHOULD BE YOUR AUDITORS AND ADVISORS As part of our strategic planning, we have determined that we want to work with clients who share the values that are important to us and for whom our services make a difference. We have determined that non-profit organizations and governmental organizations meet these criteria. Accordingly, a large portion of our services are provided to these organizations. Approximately 60% of our audit clients are non-profit and governmental organizations. All of our audit staff have experience with the requirements of these types of audits. We use audit programs that are tailored specifically for such organizations. Other Reasons that Make Us the Best Choice for the Entities Some of the other reasons that make us the best choice for the Entities include: We add value to our clients - specifically those such as the Entities - because we approach our engagements not only as auditors but as business advisors as well. Our firm listens to our clients. We strive to develop relationships with our clients that enable us to look for solutions before issues become problems. We tailor our services to meet your needs. We offer proactive comments and suggestions. Audits deal with historical information. We will look outside the attest functions to offer you recommendations that may benefit your future operations. We provide a wide range of services. Our experienced professionals are involved in the daily conduct of the services we provide. We appreciate the challenges and opportunities involved in operating an organization in this economy. We understand the environment in which you operate and are committed to your success. Our approach to our engagements allows us to provide the highest quality services in the most efficient and effective manner. Three keys to our approach are: Effective Planning, Use of Experienced Personnel, and Timely Communications and Reporting. 2

5 Similar Engagements with Other Entities Another important reason we can offer the Entities the finest professional services is that we have recent relevant experience with similar organizations. All of the audit team to be assigned to the the Entities audit has experience with non-profit organizations. The following is a partial listing of clients for whom our firm and our personnel have performed similar audits: CLIENT NAME SERVICES PROVIDED YEARS SERVICES PROVIDED Texas Association of REALTORS Susan Chichester, CFO Texas Health Care Association Kevin Warren, President/CEO Texas Association of Manufacturers Stephanie Simpson, Vice President LifeWorks Jay Scheumack, CFO Financial Statement Audit and Form 990 preparation Financial Statement Audit and Form 990 preparation Financial Statement Audit or Review and Form 990 preparation Financial Statement Audit and Single Audit, Form 990 preparation Present Present Present Present Some additional non-profit clients we service are: CASA of Travis County, Inc. SafePlace Breakthrough Austin Capital Area Food Bank Austin Revitalization Authority Spirit Reins, Inc. Cen-Tex Family Services During the normal course of business, clients decide to leave for various reasons. None of the clients that left were due to any unresolved auditing or accounting matters. 3

6 RESOURCES AND ORGANIZATION OF OUR FIRM Our Firm Atchley & Associates, LLP is a full-service public accounting firm offering auditing, accounting, governmental, tax and management consulting services. We serve hundreds of clients in both the public and private sector in a wide range of industries, both nationally and on a local basis. It is our philosophy to provide the full range of services and in-depth industry experience our clients expect and to retain the personal responsiveness our clients deserve. Our Services We offer a wide range of services to clients in a broad range of industries. Although the individual services may vary depending on our client's specific needs, there are several constants in all of the services we perform. Our services are individually tailored for each client to meet that client's needs All of our services are performed with quality and client satisfaction in mind Our services provide positive solutions Our services will be cost-effective The following is a partial listing of the services we currently provide to our clients. Because we are committed to providing services tailored to individual needs, we adapt our services to meet new requirements. Audits, Reviews and Compilations Accounting Services Tax Services Consulting Services Litigation Support Mergers and Acquisition Advice Political Accounting and Reporting Estate Planning and Taxation IRS Representation Our Mission We will provide exceptional services to our clients by developing long-term relationships that enable us to assist our clients in anticipating and proactively managing their most important business challenges. We will provide opportunities for our people to grow and to be rewarded. 4

7 Our Core Values Individually and as a firm, we share the following values: Exhibiting personal and professional integrity Providing service with care and concern for others - services that really meet the needs of our clients Committing individually and collectively to work to the best of our abilities Developing relationships that will benefit our people and our clients Encouraging open and honest communications that result in positive outcomes Providing opportunities for challenges, growth and rewards Our Office We have forty-eight people in our office; forty provide direct professional services to our clients. Twenty-one of our staff members are certified public accountants. Quality Control and Peer Review Atchley & Associates, LLP participates in the American Institute of Certified Public Accountants' Peer Review Program that is administered by the Texas Society of Certified Public Accountants. Under this program, every three years we are audited by another CPA firm, which reviews the quality of our procedures and performance. Our most recent completed quality control review was for the year ended April 30, The report was dated December 30, 2013, and stated in part, "In our opinion, the system of quality control for the accounting and auditing practice of Atchley & Associates, LLP in effect for the year ended April 30, 2013, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies), or fail. Atchley & Associates, LLP has received a peer review rating of pass". We are very proud of this report and make great efforts to continue to provide the highest quality audits to our clients. RSM (formerly McGladrey) Alliance We belong to the RSM Alliance of CPA firms. The Alliance is an affiliation of independent accounting firms with over 90 members in 41 states and Puerto Rico. The Alliance s mission is to help build and sustain high performing CPA firms as measured by financial performance, people development and service quality. In times of ever-changing and increasing complexities in accounting and auditing, this network provides us access to the expertise and resources of an international CPA firm as well as those of the other network members. We believe this affiliation will enable us to continue to provide the highest quality services to our clients in the most efficient manner. We have the resources of a national CPA firm while also maintaining the qualities of personal service and relationships that only a local CPA firm can provide. 5

8 ASSIGNEDFIRMPERSONNEL Atchley & Associates, LLP realizes that the successful performance of any engagement is directly related to the personnel assigned to it and that our associates play a critical role in the deliverance of our exceptional services. When the partners decided to form a new firm in August 1999, providing opportunities for personal and professional growth of our people was an important consideration. We work hard to provide an environment where people want to work because it is both challenging and rewarding. We believe we have succeeded. We provide exceptional services because we have exceptional people, and we invite you to visit our website at Audit Team As with all of our engagements, we have selected a seasoned, professional team with skills that are directly related to the Entities' requirements. Each of the selected members has extensive nonprofit experience and will be available for your audit. The key members of your client service team will include the following: Audit Partner The audit partner assigned to the Entities will be Robert Marchbanks, CPA/CGMA. He will be the primary client contact and will be responsible for: Overall planning and coordination of all professional services rendered to you as a client Final approval of the overall scope of the audit, the audit objectives of the current period and areas of special attention Final review of all reports and work papers related to specific, critical or key areas Ongoing communications with the Entities throughout the year Direct participation in the ongoing audit Robert is a graduate of University of Memphis with a BBA in Accounting and has over twenty years experience in both the public and private sectors. His public accounting experience includes serving a wide range of clients in audit, tax and general accounting services. Robert has extensive experience with for-profit businesses, non-profit organizations, governmental and other engagements. Robert is a member of the Texas Society of Certified Public Accountants, the Austin Chapter of the Texas Society and the American Institute of Certified Public Accountants. In the past, he served on the Board of Directors and held officer positions on other non-profit organizations. Currently, Robert is a board member and officer of the Dispute Resolution Center. 6

9 Tax Partner The tax partner assigned to the Entities will be Karen E. Atchley, CPA. She will be responsible for: Overall planning and coordination of professional tax services rendered to you as a client Continuing communications with the Entities throughout the year Independent review of the tax returns and selected workpapers in significant areas Direct participation in the ongoing tax services provided Karen Atchley is a partner at Atchley & Associates, LLP. Karen has spent over 30 years in accounting. She earned her B.B.A. in Accounting from The University of Texas at Austin. Prior to becoming a founding partner at Atchley & Associates, LLP in 1999, Karen was with the firms of McIntosh & Associates, David Kinard, P.C., Grant Thornton, and Faske Lay & Co, L.L.P., all in Austin, TX. Karen concentrates her practice in tax, consulting and compliance with Texas Ethics Commission and Federal Election Commission laws and regulations in the political arena. She specializes in providing services for clients in the health care industry, estate trust and gift tax, business tax and consulting, and non-profit organizations. Engagement Manager The manager assigned to your engagement will be Frank Stover, CPA/CFF/CGMA, CFE. He will be responsible for: Preparing the detailed engagement plan and budget Determining the overall scope of examination, audit objectives of the current period and areas requiring special attention Coordinating the work of the audit staff Providing direct and frequent communication regarding the progress of the engagement during the course of the examination Direct participation in the execution of the audit Frank is a graduate of Michigan State University and has had over 40 years experience in both the public and private sectors. His public accounting experience includes serving a wide range of clients in audit, tax and general accounting services. Frank has extensive experience with businesses, nonprofit organizations, governmental institutions and other engagements. Frank is a member of the Texas Society of Certified Public Accountants, the Austin Chapter of the Texas Society, the American Institute of Certified Public Accountants, the Association of Certified Fraud Examiners and the Construction Financial Managers Association (CFMA). He currently serves on the Board of Directors of the Austin Chapter of the CFMA and the Austin Chapter of the Michigan State University Alumni Association. He served for seven years on the Board of Directors and the Executive Committee of the Dallas Red Cross. He has also served on the Texas Society of CPAs Members in Industry and Government Committee and on the Dallas Chapter of the TSCPAs Continuing Professional Education Committee. 7

10 Resumes of Other Staff In addition to the foregoing personnel, we would use such other staff members as necessary to perform the assignment on a timely basis. Our professional staff members are college graduates and are Certified Public Accountants or are on a course of study to become so. We have sufficient staff to perform the audits within the mutually agreed upon time frame. Other Partners The other partners at Atchley & Associates, LLP are Renae Duncan, Harold Ingersoll, Jay Mezera and Ronny Armstrong. Although not specifically assigned to the Entities engagement, all partners are available to assist with any technical issue that may arise. Educational Background and Continuing Professional Education All audit staff members are degreed accountants. All professional personnel are required to participate in at least 20 hours of continuing professional education every year, aggregating to at least 120 hours in the three most recent educational years. Individuals responsible for planning, directing, or reporting on government audits (or organizations receiving federal funds) are required to receive at least 24 hours every year (and 80 hours over a two year period) of continuing education in subjects directly relating to the government environment and government auditing. Topics of recent CPE sessions attended by our staff include the following: Non-profit Accounting and Auditing Update Single Audits FASB and GASB Updates We are in compliance with Texas State Board of Public Accountancy and AICPA continuing education requirements. License to Practice Atchley & Associates, LLP is properly licensed to practice in the State of Texas. Each of our partners and managers are in compliance with State regulations governing the practice of Public Accountancy. No disciplinary action or public or private reprimand has been asserted against any of our personnel by the AICPA, a state society of CPAs, the Federal government, or any state organization. Staff Rotation It is our policy to retain staff members on engagements in succeeding years to the extent possible. We believe this is an advantage to both the Entities and us and enables us to perform more efficient and effective audits. We do not anticipate rotation of the partner or manager during the term of the engagement. We would anticipate that the supervisor/in-charge and staff level personnel might change at least once every three years. If rotation is necessary, we have two partners, two managers and a supervisor who are all experienced in providing audit services to non-profit clients. 8

11 Independence We confirm that we are independent of the Entities as defined by generally accepted auditing standards. We are free of any obligations and interests that might conflict with the best interests of the Entities and our ability to provide the desired services on a timely basis. We have no direct or indirect financial interest and no relationship of the proposed audit team to employees of the Entities. Sub Contractors We do not use and will not use any sub contractors to perform any part of the the Entities audit services. SPECIFIC AUDIT APPROACH Atchley & Associates, LLP will use a risk-based approach designed to help us efficiently and effectively perform financial statement audits in accordance with auditing standards generally accepted in the United States of America (GAAS). The risk-based audit methodology emphasizes using knowledge of the entity to make the risk assessments in connection with a financial statement audit. All audits are risk-based to some extent because an auditor does not test 100% of the transactions of an entity. The more accurately an auditor assesses an entity s risks of material misstatement, the more assurance the auditor has that the procedures performed in response to the risk assessments will detect material misstatements. Therefore, the primary drivers of this approach are: 1. Obtaining an understanding of the entity and its environment, including its internal control, sufficient to accurately assess the risks of material misstatement. 2. Designing and performing audit procedures that are responsive to the risks of material misstatement. For this methodology to be effective, information and knowledge must flow through the audit process. The risk-based approach is designed to facilitate this flow of information. We will also use software developed and provided by RSM to assist us in gathering the relevant information regarding systems, procedures and policies in use by the Entities, for the purpose of assessing risks related to all relevant assertions, highlighting risks of material misstatements and developing the appropriate audit procedures. We will call on RSM or other Alliance firms to assist us with any accounting or auditing issues that may arise, if additional input is considered necessary. Task /Activity Plan The audit activity for the Entities is divided into four significant phases: Planning and Review, Testing Sample Transactions, Account Balances Testing, and Report and Exit Interviews. Each of these phases are herein discussed briefly. 9

12 Planning and Review: The planning phase is a key element in our audit approach. During this phase, our efforts would be concentrated on reviewing and documenting your accounting system and internal control structure, in order to tailor the detailed audit plan in accordance with risk assessment standards. These standards require the auditors to fully document both our understanding of your controls and our assessment of the risks of material misstatement, and to tailor the audit program based on this understanding and assessment. Various tests or walkthroughs will be performed to support the operating effectiveness of your internal controls. This would also include a review of the prior auditors' workpapers. This would be completed early in the audit, during interim fieldwork. Testing Sample Transactions: Based on the results of our review of the accounting system and controls, we will select a sample of transactions to test internal controls, compliance with major program requirements, cash receipts, cash disbursements, payroll, and for financial statement propriety. Statistical sampling techniques would be utilized for a major portion of this task. At the conclusion of these tests of transactions, we would make any necessary revisions to our detailed audit plan as a result of our findings. Account Balances Testing: This phase would be primarily directed at testing account balances as of year-end, and would include confirmation of selected accounts, account reconciliations, inquiry, inspection of source documentation, and analyses. Reports and Exit Interviews: Upon completion of the fieldwork, we would prepare a draft of the Entities Annual Financial Report, which includes our opinion on the fairness of the financial statements, our reports on compliance with the various funding requirements and our reports on the internal control structure. During this period we would also conduct our exit interviews, which would include discussions of draft copies of the financial statements and our reports with representatives of the Entities. Communication Even though we will assist you as necessary in developing the financial statements, the resulting financial statements are your financial statements. Accordingly, we emphasize communicating our progress and findings with you throughout the audit process. We will discuss draft and final versions of the reports and findings, if any, with the appropriate levels of management and the Board of Directors. Anticipated Potential Audit Problems We do not anticipate any potential audit problems. However, if we encounter any problems over the course of the audit, our approach is to address them when found and to resolve them according to a mutually agreed upon course of action. If technical in nature, we can consult with the resources of RSM Alliance to provide guidance, and we will provide the Entities management the opportunity to resolve any issues before we incur additional time. 10

13 Assistance Expected from the Entities We will maximize the assistance from your staff while causing as little disruption to your normal operations as possible. We will expect your staff to provide assistance in pulling supporting documents, preparing confirmation letters and preparing various audit and tax work paper and report schedules. We will provide you with audit and tax lists of these items well in advance of starting our fieldwork. This allows us to spend our time performing procedures which help contain the cost of your audit and tax services. FEE ESTIMATES Our fee estimate is based on a realistic assessment of the amount of time necessary to fully achieve the services and related objectives shared by the Entities and our firm. Fees are normally calculated using standard rate schedules applied to the actual time expended by each member of our professional staff. Based on our time estimates and the anticipated staff to be assigned to this engagement, we estimate that our fees for the fiscal years ending September 30, 2014 and 2015 would be: Audit Audit Reports and AUP: Services Texas Municipal League $13,750 Government Finance Officers Association of Texas and GFOAT Scholarship Foundation $ 4,000 Texas City Management Association $ 4,250 Agreed-Upon-Procedures $ 3,250 Tax Tax Services: Services Texas Municipal League (Form 990) $ 3,200 Texas Municipal League (Form 990T) $ 1,000 Government Finance Officers Association of TX $ 2,200 GFOAT Scholarship Foundation (EZ) $ 1,000 Texas City Management Association $ 2,500 Texas City Attorneys Association (EZ) $ 1,400 Texas Municipal Human Resources Association $ 2,200 Texas municipal Utilities Association (EZ) $ 1,200 Building Officials Association of Texas $ 2,200 Texas Association of Black City Council Members (EZ) $ 1,300 Texas Association of Municipal Information Officers (EZ) $ 1,200 11

14 The hourly billing rates for professional personal for each of the last three years follows: Partner rate $300 $300 $275 Manager $185 $175 $170 Supervisor $165 $160 $145 Senior $125 $120 $115 Staff $110 $105 $100 If selected as your auditors, we will be able to contract with you for the specific fees which will be set forth in an annual engagement letter. We would further commit for four subsequent years to maintain the above fee estimates for the Entities and its affiliated entities, increased by changes in the annual Consumer Price Index. Conditioned upon an assumption that there will be no significant changes in the operations of the Entities and the composition of the number of its affiliated entities and were to be audited. Subsequent annual audit fee increases would be agreed upon in advance with the Entities management. Our fee estimate assumes that the financial records maintained will be accurate and completed within time frames we will mutually agree upon soon after our selection as auditor. We also assume that you will assist in the preparation of various schedules, provide selected sample documents to us, and provide all information we need to complete the audit in a timely manner. We can provide a wide range of additional services if or when needed, including any technical assistance and consulting requested. The fees for any other services, if performed, will be based on the level of personnel required to provide the services and the timing of the services. We will mutually agree on these factors and our fees before we begin any of this work. We encourage clients to call us throughout the year with questions as they arise. We can usually answer most questions in a few minutes at no charge to you. In the event the questions require more time, we will arrive at an estimated fee before beginning any work. 12

15 2013 PEER REVIEW REPORT 13

16 Certified Public Accountants and Business Advisors 993 North Third Street PO Box 2993 Abilene, Texas phone fax SYSTEM REVIEW REPORT July 30, 2013 To the Partners Atchley & Associates, LLP and the Peer Review Committee of the Texas Society of Certified Public Accountants We have reviewed the system of quality control for the accounting and auditing practice of Atchley & Associates, LLP in effect for the year ended April 30, Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm s compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at As required by the standards, engagements selected for review included engagements performed under Government Auditing Standards, and audits of employee benefit plans. In our opinion, the system of quality control for the accounting and auditing practice of Atchley & Associates, LLP in effect for the year ended April 30, 2013, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. Atchley & Associates, LLP has received a peer review rating of pass. Condley and Company, L.L.P.