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Home My WebLink AboutBUDGET AND FINANCE ACTION SUMMARY 05-14-13Central Contra Costa Sanitary District (th and the environment • Imhoff , .. SPECIAL MEETING OF THE CENTRAL CONTRA COSTA R04RDOFT)IfffCT °RS: JAA -IESA. NEJEDLP SANITARY DISTRICT Pivszdent BUDGET AND FINANCE COMMITTEE DAb7DR ntPro nm President Pro Tem P.-1 UL H. CA i SEF ACTION SUMMARY 1IICHDELR.- 1fCGILL TAD J. PILECKI Chair McGill Member Nejedly Tuesday, May 14, 2013 3:00 p.m. Middle Conference Room 1470 Enea Circle, Second Floor Concord, California PHONE: (925) 228 -9500 F4-I: (925) 676 -7211 www. centralsan. org PRESENT: Chair Mike McGill, Member Jim Nejedly, Provisional General Manager Curt Swanson, Finance Manager Thea Vassallo, Finance Administrator Todd Smithey, Regional Vice President from ICMA Michelle Martin (for Item 3.) 1. Call Meeting to Order Chair McGill called the meeting to order at 3:00 p.m. 2. Public Comments None. 3. Discuss with Michelle Martin, Regional Vice President from ICMA, the alternative fund line -ups, ICMA required revenue percentage, and update on 457 and 401(a) consolidation Regional Vice President from ICMA, Michelle Martin, gave a brief summary of the two fund line -ups reviewed by the Deferred Compensation Committee as a result of the Schultz Benchmark Study, the two lower cost Vantagepoint share classes that will be available at a cheaper cost, and discussed the revenue sharing required by ICMA of 0.14 %. COMMITTEE ACTION: Discussed and Finance Manager Thea Vassallo will continue to update the Committee as needed. C! l r• 7 Budget and Finance Committee May 14, 2013 Page 2 Risk Management a. Review Loss Control Report and discuss outstanding claims COMMITTEE ACTION: Reviewed the report. Review First Quarter 2013 Public Agency Retirement Services (PARS) Governmental Accounting Standards Board (GASB) 45 Statement COMMITTEE ACTION: Reviewed the statement. Review Operations and Maintenance (O &M) Budget and Debt Service Fund Budget (distributed at the May 2, 2013 Board Meeting) COMMITTEE ACTION: Reviewed the Budgets and recommended Board approval. Expenditures a. Review Expenditures (Item 4.b. in Board Binder) COMMITTEE ACTION: Reviewed and recommended Board approval. Staff was requested to provide more information on the following: Check Date Amount Vendor #194930 4/25/13 $4,351.32 Thermo Environmental Inst b. Review Legal Expenditure Summary COMMITTEE ACTION: Reviewed Legal Expenditure Summary. *8. Interview candidates for auditors at the following times: 3:30 — 4:00 p.m. Maze & Associates Vicki Rodriguez CPA and Tim Krisch CPA 4:00 — 4:30 p.m. Vavrinek, Trine, Day & Co., LLP David Showalter CPA, AJ Major CPA, Kevin Mizuno CPA and Chad Rinde CPA Budget and Finance Committee May 14, 2013 Page 3 COMMITTEE ACTION: Interviewed the audit firm candidates (presentation summaries attached) and recommended Maze & Associates for Fiscal Years 2013 -14 through Fiscal Year 2015 -16. 9. Announcements Ms. Vassallo announced that Highmark's responses to the Schultz Collins GASB 45 Trust Study should be received by May 17, 2013. The Committee plans to discuss the Study results with Highmark and PARS representatives at the June 3, 2013 meeting. 10. Suggestions for future agenda items Ms. Vassallo suggested that the Committee discuss ideas for the June 20, 2013 Public Hearing presentation at the next meeting. 11. Adjournment — at 5:00 p.m. * Attachment r ri r I u u u 17 u r u Presentation to Auditor Selection Committee Regarding Request for Quotation for Auditing Service Issued by the MAZE & ASSOCIATES Presentation to the Auditor Selection Committee I. Introduction of Our Team Key team- members qualifications (starting on page I 1 of our proposal) ° Vikki Rodriguez, CPA, Engagement Partner -- >15 years of municipal audit experience. Some of Vikki's pertinent experience includes Contra Costa Water District, DSRSD, East Bay Municipal Utilities District, Calaveras County Water District, Delta Diablo Sanitation District, Diablo Water District, El Dorado Irrigation District, Fairfield Suisun Sanitation District, Novato Sanitary District, Santa Clara Valley Water District, Solano Irrigation District, South San Joaquin Irrigation District, Skyline County Water District, West Bay Sanitary District, West Valley Sanitation District and Zone 7 Water Agency. ■ Timothy Krisch, CPA, Alternate Partner /Technical Review -- >32 years of municipal audit experience. Some of Tim's pertinent experience includes Central Contra Costa Sanitary District, Contra Costa Water District, East Bay Municipal Utilities District, Calaveras County Water District, Delta Diablo Sanitation District, Diablo Water District, El Dorado Irrigation District, Fairfield Suisun Sanitation District, Santa Clara Valley Water District, Solano Irrigation District, Stinson Beach County Water District, Union Sanitary District and Zone 7 Water Agency. ■ Nicholas Johnson, CPA, Supervisor -- >6 years of municipal audit experience. Some of Nick's pertinent experience includes Contra Costa Water District, East Bay Municipal Utilities District, El Dorado Irrigation District, Fairfield- Suisun Sewer District, Bay Area Clean Water Agencies, Dublin San Ramon Services District/East Bay Municipal Utility District Recycled Water Authority, Freeport Regional Water Authority, Upper Mokelumne River Watershed Authority and South San Joaquin Irrigation District. H. Our Firm Profile ■ Years in business: >30 years ■ Location: One office in Pleasant Hill, California ■ 9 partners, including 6 municipal audit partners ■ Total employees just under 50 ■ Municipal Sector: ■ Concentration: >80% of firm's portfolio ■ All local government, including small to large special districts ■ Presence in the sector: >30 years ■ Municipal auditing is our main business i IMAZE d ASSOCIATES ACCOUNTANCY CORPORATION I In Business to Help our Clients Succeed( I I I I MAZE & ASSOCIATES Presentation to the Auditor Selection Committee M. Approach and Ability to Meet Central Contra Costa Sanitary District's Scope of Work 1. Qualifications of our firm Firm experience and expertise in auditing utility districts (page 7 of our proposal) ■ We have a long term track record of client retention • Staff turnover is lower than the average for most finns, which means, you don't train our staff • Average municipal audit hours per staff: 1,500 hours /year ■ In -house training provided to our staff: 80 hours /year ■ You will receive partner involvement early and often ■ Partner to staff ratios: • Maze & Associates 1 to 6 ■ Typical firm 1 to 10 You will experience an Efficient and Organized audit: • Communication and Coordination: • Accounting Issues Memo • Detailed custom checklists at interim and final • Audit Efficiency • Advanced paperless documentation • Active footnote linking that updates with a "click" • Advanced Information System Review ■ Client Data security techniques ■ Over 35 Single Audits annually ■ Strong experience in auditing and preparing financial statements for single member retirement plans and joint powers authorities 2. Our staffing plan and audit approach • Staffing plan • Audit team members (pages 11 -15 of our proposal) • Key personnel involvement — partner and supervisor are actively involved in planning, conducting and completing the audit in your office • Audit approach (pages 19 -28 of our proposal) • Detailed upfront risk assessment, planning and audit coordination • Thorough and in -depth interim audit — we strive to complete as much work on the front end as possible, so that the final phase and wrapup is more efficient • Exit conference after interim phase to review Accounting Issues Memorandum, Closing Checklist, third party confirmations and preliminary draft of financial statements integrating any new GASB Pronouncements • We prepare the draft financial statements and analytical review prior to fieldwork • Onsite partner involvement during fieldwork • Exit conference at end of final phase to review drafts of financial statements, Memorandum on Internal Control, audit adjustments and any open items MAZE d ASSOCIATES ACCOUNTANCY CORPORATION 7 In Business to Help our Clients Succeedl i i i i i i i I MAZE & ASSOCIATES Presentation to the Auditor Selection Committee • Our practice is to provide a draft of the basic financial statements and any open items on the last day of our fieldwork • Quick wrap -up and turnaround of final reports • Presentation to General Manager, Finance Committee and Board of Directors, as requested IV. Questions? V. Why Maze & Associates Is Your Best Choice: • Breadth and Depth in audits of Local Governments ® Local Presence • Client Retention 9.75 Years on Average • Dedicated Firm With Experience in Special District Audits MAZE a ASSOCIATES ACCOUNTANCY CORPORATION 3 In Business to Help our Clients Succeedl 1"166siel Contra Costa Central Sanitary District Proposal Interview May 14, 2013 I. Experience and Qualifications a. Over 300 Governmental Entities - Including Similar Special Districts: i. Fairfield- Suisun Sanitary District ii. Vallejo Sanitation and Flood Control District iii. West Bay Sanitary District iv. Sacramento Regional County Sanitation District v. Montara Water and Sanitary District vi. Central Marin Sanitation District vii. Bayshore Sanitary District b. Implementation and Training on New GASB Pronouncements c. Attendance at National and Local Trainings II. Risk Based a. Top -down Audit Approach b. Internal Controls c. Effective Communication III. What sets us Apart a. Top 100 Nationally Ranked Accounting Firm b. Commitment to Governmental Organizations c. Founded in 1948 IV. Team Members a. David Showalter, Engagement Partner, CPA b. AJ Major, Concurring & Technical Review Partner, CPA c. Herman Williams, Manager, CPA d. Kevin Mizuno, Supervisor, CPA e. Chad Rinde, Supervisor, CPA