HomeMy WebLinkAbout20101824.tiff .
ip�" McGee, Hearne & Paiz, LLP
��'� Certified Public Accountants and Consultants
July 27, 2012
Weld County,Colorado
P.O. Box 758
Greeley, Colorado
Attention: Ms. Monica Daniels-Mika, Director of Finance and Administration
We are pleased to present our proposal to continue to provide financial and compliance audit services for
Weld County, Colorado(the"County") for the years ending December 31, 2012, 2013 and 2014. We feel
our past and present involvement with your organization, as well as with numerous governmental
organizations, makes us well qualified to continue to work with the County.
We are proposing to conduct the audits in accordance with auditing standards generally accepted in
the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Additionally, the audit will be conducted in accordance with OMB Circular A-133, Audits of States,
Local Governments and Non-Profit Corporations.
In my role as partner in charge, I will have ultimate responsibility for the overall quality of the audit
and will ensure required professional services are delivered in a timely and efficient manner. I will
be responsible for ascertaining that professional and regulatory standards have been complied with
throughout the engagement, and I will direct the activities of the audit team and review audit results
and conclusions. As audit manager, Amber Nuse will coordinate the activities of the professional
staff members assigned to the engagement, participate in planning and developing the overall audit
approach and monitor all phases of the audit to ensure timely completion.
We recognize that engaging an accounting and auditing firm is an important investment for the
County. Our goal is to provide timely and responsive services at a reasonable cost which are
competitive with the current market. Our fees, like those of other professional service firms, are
based on actual time spent by our people and are measured by standard hourly rates, reflecting the
experience level of the professionals assigned to your account. We propose to perform the audit
services as required for$75,000 for 2012, $78,750 for 2013, and $82,500 for 2014.
In estimating our fees, we anticipate receiving the assistance from the appropriate personnel that will
allow us to complete our work efficiently. We will meet with you to discuss the assistance to be
provided and the timing of when the assistance is to be provided. We anticipate that the appropriate
personnel will provide supporting documentation and applicable reconciliations for all sample
selections. We will make every effort to minimize time requirements by maximizing the effective
use of our personnel and utilizing your personnel whenever possible in order to render the highest
quality service at the lowest possible cost.
314 West 18th Street /} An Independently Owned Member
P.O. Box 1088(Zip 82003-1088) ` �� - MCGLADREY ALLIANCE
Cheyenne,
nne Wyoming 82001-4404 Q -5 _Ztj,, �� FT, p1.t (:;‘,0/6 - / sow t -
151
Fax:(307)634-4939 q-iu. la Ff005 / C McGladrey
The McGladrey Alliance Is a premier affiliation of Independent accounting and consulting firms.
The McGladrey Alliance member inns maintain their name,autonomy and Independence and are responsible for their own client fee arrangements,delivery of services and maintenance of client teIsianships.`/u
Weld County,Colorado
July 27, 2012
Page 2
We thank you for your consideration in allowing us to continue serving your audit needs. Should
there be any questions,please call us.
This proposal shall remain valid for 60 days from the date of this letter. I am authorized to commit
McGee, Hearne & Paiz, LLP to the terms of this proposal. My contact phone number is (307) 634-
2151.
Sincerely,
McGEE, HEARNE& PAIZ,LLP
Ger
W c
Robert W. Dahill,Partner
RWD/nla
D/nla
Confirmed on behalf of Weld County, Colorado
� � ATTEST:
Sean P. Conway, Chair (09/05/20I2) Clerk to the Board
SEP 0 5 2012
� 2
By 4.
epaty Cl ' z o
Barbara Connolly, Controll x
1861 `( 4
riY�m'A4
4
AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT is made by and between the County of Weld, State of Colorado,
whose address is 915 10th Street, Greeley, Colorado, 80631 ("County"), and McGee, Hearne &
Paiz, LLP, whose address is 314 West 18th Street, Cheyenne, WY 82001-4404 ("Contractor").
WITNESSETH:
WHEREAS, County desires to retain Contractor as an independent contractor to perform
services as more particularly set forth below; and
WHEREAS, Contractor has the time available, equipment, and materials to timely
perform the services, and is willing to perform the services according to the terms of this
Agreement.
NOW THEREFORE, in consideration of the mutual promises and covenants contained
herein, the parties hereto agree as follows:
1. Engagement of Contractor. County hereby retains Contractor, and Contractor
hereby accepts engagement by County upon the terms and conditions set forth in this Agreement.
2. Term. The term of this Agreement shall be from the date of signing by both parties
hereunder, through and until completion of the services described in Exhibit A for both years
2010 and 2011.
3. Services to be Performed. Contractor agrees to perform the Services listed or
referred to in Exhibit A, attached hereto and incorporated herein.
4. Compensation.
a. County agrees to pay Contractor for services performed as set forth on
Exhibit A the sum of no more than $69,500 for 2010 and $71,500 for 2011, with a lesser
sum being billed if the Contractor's actual fees are less than these sums. Said sums shall
include payment for all work to be performed by Contractor.
b. Payment to Contractor will be made only upon presentation of a proper
invoice by Contractor upon completion of the services described in Exhibit A.
5. Independent Contractor. Contractor agrees that Contractor is an independent
contractor and that neither Contractor nor Contractor's agents or employees are, or shall be
deemed to be, agents or employees of the County for any purpose. Contractor shall have no
authorization, express or implied, to bind the County to any agreement, liability, or
understanding. The parties agree that Contractor will not become an employee of County, nor is
Contractor entitled to any employee benefits from County as a result of the execution of this
1
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evytq9 ;0-.2010 q -a,) 1O .,(0/0-7k- V
Agreement.
6. Warranty. Contractor warrants that services performed under this Agreement will
be performed in a manner consistent with the professional standards governing such services and
the provisions of this Agreement.
7. Reports County Property. All reports and other documents produced in connection
with the performance of this Agreement, whether or not they are in completed form, shall at all
times be considered the property of the County. Contractor shall not make use of such reports or
documents for purposes other than in connection with this Agreement without prior written
approval of County.
8. Acceptance of Product not a Waiver. Upon completion of the work, Contractor
shall submit to County originals of all reports and other documents generated during completion
of this work. Acceptance by County of reports and documents furnished under this Agreement
shall not in any way relieve Contractor of responsibility for the quality and accuracy of the work.
Acceptance by the County of, or payment for, any services performed under this Agreement shall
not be construed as a waiver of any of the County's rights under this Agreement or under the law
generally.
9. Insurance and Indemnification. Contractor shall defend and indemnify County, its
officers and agents, from and against loss or liability arising from Contractor's acts, errors or
omissions in seeking to perform its obligations under this Agreement. Contractor shall provide
necessary workers' compensation insurance at Contractor's own cost and expense.
10. Non-Assignment. Contractor may not assign or transfer this Agreement, any
interest therein or claim thereunder, without the prior written approval of County.
11. Access to Records. County shall have access to Contractor's financial records as
they relate to this Agreement for purposes of audit. Such records shall be complete and available
for audit 90 days after final payment hereunder and shall be retained and available for audit
purposes for at least five years after final payment hereunder.
12. Time of Essence. Time is of the essence in each and all of the provisions of this
Agreement.
13. Interruptions. Neither party to this Agreement shall be liable to the other for delays
in delivery or failure to deliver or otherwise to perform any obligation under this Agreement,
where such failure is due to any cause beyond its reasonable control, including but not limited to
Acts of God, fires, strikes, war, flood, earthquakes or Governmental actions.
14. Notices. Any notice required to be given under this Agreement shall be in writing
and shall be mailed or delivered to the other party at that party's address as stated above.
2
15. Compliance. This Agreement and the provision of services hereunder shall be
subject to the laws of Colorado and be in accordance with the policies, procedures, and practices
of County.
16. Non-Exclusive Agreement. This Agreement is nonexclusive and County may
engage or use other contractors or persons to perform services of the same or similar nature.
17. Certification. Contractor certifies that Contractor is not an illegal immigrant, and
further, Contractor represents, warrants, and agrees that it has verified that Contractor does not
employ any illegal aliens. If it is discovered that Contractor is an illegal immigrant, employs
illegal aliens or subcontracts with illegal aliens, County can terminate this Agreement and
Contractor may be held liable for damages.
18. Entire Agreement/Modifications. This Agreement contains the entire agreement
between the parties with respect to the subject matter contained in this Agreement. This
instrument supersedes all prior negotiation, representation, and understanding or agreements with
respect to the subject matter contained in this Agreement. This Agreement may be changed or
supplemented only by a written instrument signed by both parties.
19. Funding Contingency. No portion of this Agreement shall be deemed to create an
obligation on the part of County to expend funds not otherwise appropriated or budgeted for.
20. No Conflict. No employee of Contractor nor any member of Contractor's family
shall serve on a County Board, committee or hold any such position which either by rule,
practice or action nominates, recommends, supervises Contractor's operations, or authorizes
funding to Contractor.
21. Severability. If any term or condition of this Agreement shall be held to be invalid,
illegal, or unenforceable, this Agreement shall be construed and enforced without such provision,
to the extent that this Agreement is then capable of execution within the original intent of the
parties.
22. Governmental Immunity. No portion of this Agreement shall be deemed to
constitute a waiver of any immunities the parties or their officers or employees may possess.
23. No Third Party Beneficiary. It is expressly understood and agreed that the
enforcement of the terms and conditions of this Agreement, and all rights of action relating to
such enforcement, shall be strictly reserved to the undersigned parties and nothing in this
Agreement shall give or allow any claim or right of action whatsoever by any other person not
included in this Agreement. It is the express intention of the undersigned parties that any entity
other than the undersigned parties receiving services or benefits under this Agreement shall be an
incidental beneficiary only.
3
IN WITNESS WHEREOF, the parties have executed this Agreement as of August 25,
2010.
CONTRACTOR:
MCG , HEARNE & P Z, LLP
By:
Title: Poi C'1 f\c,(�
ATTEST: ���� � COUNTY OF WELD, COLORADO
CLERK TO THE BOARD361
By: t C ."�•, :;
ri
Deputy Cle"to the Board � (i i4C Dougl Rae ac er, Chairman
err
SEP202010
4
Sealed Compensation Proposal For:
Illi I I •P ‘ iiri if i ii i pi i i
ii ri Jil Jti 4111 J1 " ') X14
Summary of Professional Fees and Expenses
2010 2011
Hours Rate Total Hours Rate Total
Partners 50 $ 200 $ 10,000 50 $ 202 $ 10,100
Managers 100 150 15,000 100 152 15,200
Supervisory Staff 200 80 16,000 200 82 16,400
Staff- Professional 400 69 27,600 400 72 28,800
68,600 70,500
Out-of-Pocket Costs 900 1,000
Total All-Inclusive Price $ 69,500 $ 71,500
There will be no charge for short (less than one hour per contact) telephone calls, meetings, etc.,
to address questions, new accounting standards, financial or compliance issues, etc. with the
County throughout the year. Fee arrangements for longer consultations will be discussed with the
County personnel in advance of providing the services.
This proposal shall remain valid for 60 days from the date of this letter. I am authorized to commit
McGee, Hearne & Paiz, LLP to the terms of this proposal.
074,-tos-- Q . )4 Robert W. Dahill, PartnerMip
McGee, Hearne & Paiz, LLP
Certified Public Accountants and Cons
314 West lath Street.Cheyenne,Wyoming 82001
EXHIBIT "A"
INVESTMENT IN MCGEE, HEARNE & PAIZ, LLP
We recognize that engaging an accounting and auditing firm is an important investment for the
County. Our goal is to provide timely and responsive services at a reasonable cost. We hope
that we have illustrated our capability to add value to your organization through our experience
and approach rather than simply providing an audit report. Our fees, like those of other
professional service firms, are based on actual time spent by our people and are measured by
standard hourly rates, reflecting the experience level of the professionals assigned to your
account.
If total actual fees are less than our fee estimate, you will be billed the lesser amount.
Should the scope of any of our audit services change significantly, we would meet with you to
discuss and agree upon an adjustment in our fees to reflect such a change.
Throughout our relationship, we will commit a high degree of partner and manager resources,
ensuring that we bring high value to your professional services by addressing issues in the early
stages of our work.
In estimating our fees, we anticipate receiving the assistance from the appropriate personnel
that will allow us to complete our work efficiently. The level of assistance to be provided is
anticipated to be at least at the same level provided in the past. We will meet with you to
discuss the assistance to be provided and the timing of when the assistance is to be provided.
We anticipate that the appropriate personnel will provide supporting documentation and
applicable reconciliations for all sample selections. We will make every effort to minimize time
requirements by maximizing the effective use of our personnel and utilizing your personnel
whenever possible in order to render the highest quality service at the lowest possible cost.
We will submit progress bills for no more than 25% of the all-inclusive price after the preliminary
and final fieldwork segments. A final bill will be submitted upon delivery of the CAFR.
"We recognize engaging an accounting firm is an
important investment for your organization. You can
expect your investment in McGee, Hearne & Paiz,
LLP to add value to your business."
A Proposal to Provide Professional Services For:I I f 01 iieid i
(41
J Go ] ordoill
Request No: B1000123 — Audit Services — Finance Department
August 6, 2010
10:00 A.M.
Contact:
Robert W. Dahill, Partner
(307) 634-2151
AlpMcGee, Hearne & Paiz, LLP
�'[4 Certified Public Accountants and Consultants
314 West 18th Street,Cheyenne,Wyoming 82001-4404
1 77'4-
fie:
CONTENTS
LETTER OF TRANSMITTAL
SECTION 1: Our Understanding of Your Requirements
Your Service Expectations 1 and 2
Audit Service Requirements 3
Other Service Requirements 3
Our Proposal Objectives 4
SECTION 2: Technical Proposal
Independence 5
License to Practice in the State of Colorado 5
Firm Qualifications and Experience 6 and 7
Partner, Supervisory and Staff Qualifications and Experience 8 and 9
Similar Engagements with other Governmental Entities 10 - 12
Specific Audit Approach 12 - 16
Additional Data 17
Reference to Compensation 17
APPENDICES
Latest Peer Review Report A
Engagement Team Resumes B
Sealed Compensation Proposal (submitted under separate cover)
Mf McGee, Hearne & Paiz, LLP
Certified Public Accountants and Consultants
August 5, 2010
Weld County, Colorado
Weld County Purchasing
915 10th Street, Room#334
Greeley, Colorado 80631
Re: Response No: B1000123
To the Board of County Commissioners:
We are pleased to present our proposal to provide professional auditing services for Weld County, Colorado(the
"County") for the years ending December 31, 2010 and 2011. In response to the Request for Proposal, we have
prepared a proposal that reflects our understanding of the County's requirements and demonstrates our
capability and commitment to serve. We feel our past and present involvement with numerous governmental
entities,makes us well qualified to meet your needs.
We appreciate the opportunity to submit our proposal to provide professional auditing services and we intend to
demonstrate that McGee, Hearne & Paiz, LLP is the right choice of an accounting firm for Weld County,
Colorado.
• First and foremost,we are committed to serving your needs.
We will provide you with high-quality, timely services to meet your timing needs. You will receive
very close attention from your client service team, including partners and managers. The personnel
assigned to the team, all of whom are located in Cheyenne, will be accessible to you, even on short
notice, and will be proactively looking after your needs with a keen understanding of the issues
affecting the County. Through overall job control and personal attention, we will deliver the most
efficient service possible and will keep your costs commensurate with the benefits received.
• Second, we offer you a service team with extensive experience in service to state and local
governments.
We have the knowledge and experience in governmental financial and compliance auditing and
accounting systems to provide quality auditing in an efficient and timely manner. Members of the
service team chosen for the County have provided audit and other services to Sweetwater County,
Wyoming; the State of Wyoming CAFR and the Statewide Single Audit; the Wyoming Retirement
System; the University of Wyoming, four Community Colleges, the Cities of Cheyenne/Rock
Springs/Buffalo, Laramie and Goshen County School Districts and numerous other State and local
agencies. A person who performs report reviews for the GFOA Certificate Program will review your
financial statements. This means your service team will have the expertise and resources to provide you
with qualified and knowledgeable service.
314 West 18th Street
P.O. Box 1088 (Zip 82003-1088) RSM McGladrey Network
Cheyenne, Wyoming 82001-4404
(307)634-2151 An Independently Owned Member
Fax: (307)634-4939
• Finally, and most important, we have an audit approach and the staffing capacity to meet your
delivery requirements.
We have developed an integrated approach to governmental auditing that significantly improves overall
audit efficiency. Additionally, we have utilized the services of our membership in the McGladrey
Alliance to design an audit approach that specifically addresses the needs of the County. Our plan calls
for staffing for this engagement to come from our 54 professionals and support staff, all of whom are
located in Cheyenne. McGee, Hearne & Paiz, LLP has assembled a team of highly-qualified, well-
trained professionals. Our standards for hiring and promoting are among the most rigorous in the
profession. We have a partner who serves on the Wyoming Board of CPA's and another partner who
serves as past president on the Board of the Wyoming Society of CPA's. Therefore, the County can be
assured that only the most qualified individuals are assigned to the examination.
In summary,we believe that our combination of governmental and compliance experience and our partner active
practice philosophy make our firm most qualified to meet the professional service requirements for the County.
We would welcome the opportunity to meet with you and members of the Auditor Selection Committee to
further discuss our proposal, and encourage you to contact our references. Furthermore, we would be happy to
furnish you with any additional information that may be required. Should there be any questions, please don't
hesitate to call us.
This proposal shall remain valid for 60 days from the date of this letter. I am authorized to commit McGee,
Hearne&Paiz, LLP to the terms of this proposal. My contact phone number is(307) 634-2151.
Sincerely,
McGEE, HEARNE&PAIZ, LLP
Robert W. Dahill, Partner
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YOUR SERVICE EXPECTATIONS
Weld County, Colorado (the "County") is seeking proposals to provide a complete audit of the
Basic Financial Statements and the Schedule of Expenditures of Federal Awards for the years
ending December 31, 2010 and 2011, including satisfying the requirements of Government
Auditing Standards and the Federal Single Audit Act and appropriate circular.
In connection with your audit firm selection process, we understand that:
• The County desires a quality relationship with a firm who is experienced in serving the
audit needs of state and local governmental units performed in accordance with auditing
standards generally accepted in the United States of America.
• The County seeks an audit firm that is not only capable by way of background and
experience, but also demonstrates the understanding and commitment needed to satisfy
the accountability and reporting needs of the County.
"You can be assured all of our services will be
delivered in a manner and scale that's right for
you. We listen. We're team players. We keep
you and your people actively involved every
step of the way. We'll bring you new insights,
always with a plan that will produce results."
Section 1 —Our Understanding of Your Requirements
ADVANTAGES OF SELECTING US AS YOUR ACCOUNTING AND CONSULTING FIRM
McGee, Hearne & Paiz, LLP's focus is on governmental entities such as the County. Following
is a list of the advantages of choosing McGee, Hearne & Paiz, LLP as your accounting firm.
• We have the resources to get the job done, and done in the timeframe that you are
requesting.
• We have access to resources from a national firm, our network business partner, when a
second opinion is warranted.
• We are a member firm of the American Institute of Certified Public Accountants (AICPA)
Government Audit Quality Center. For more information on the Government Audit
Quality Center, including membership
requirements, see http://qaqc.aicpa.orq/.
In addition, all key professionals assigned to On April 15, 2010, McGee, Hearne& Paiz, LLP was
the audit are members of the AICPA as well one of six northern Colorado and Wyoming
as the Colorado and Wyoming Societies of
CPAs. businesses honored for exemplary business ethics by
the Better Business Bureau serving northern
• Our quality control partner, who will be assigned to the engagement, is a member of Colorado and greater Wyoming. We received the
the Governmental Finance Officer's "Torch Award,"which honors companies that
Association (GFOA) special review demonstrate ethical management practices; uphold
committee for the Certificate of Achievement
for Excellence in Financial Reporting high standards in relationships with customers,
program. Therefore, the County will have suppliers and shareholders;show honesty and
access to this resource in your pursuit of this integrity in marketing and advertising; and give back
hard-earned certificate. to their communities. Each year peers, colleagues
• We spend the vast majority of our budgeted and customers nominate businesses for the award.
time in the field, in front of County personnel.
• When practical, we perform our manager We invite you to visit the Better Business Bureau's
and partner reviews in the field and maintain
significant partner and manager contact, website to learn more about the Torch Award program
which reduces the delays in resolving issues and what an honor it is to be chosen as a recipient-
and the wrap-up of the audit. www.wynco.bbb.orq.
• We remain in the field as long as possible
until the CAFR is completed.
• We understand the issues facing the County because we audit several other
governmental entities; we understand the issues facing County government.
• The University of Northern Colorado is one of our main recruiting areas. In fact, one of
our partners as well as several of our staff are UNC graduates.
2
Section 1 —Our Understanding of Your Requirements
AUDIT SERVICE REQUIREMENTS
As defined in Section 29-1-603 of the Colorado Revised Statutes, and Section 14-4 of the Weld
County Home Rule Charter, "The Board shall provide for an independent annual audit of all
county accounts and funds... Such audits shall be made by a certified public accountant
selected by the Board." The examination will be made in accordance with generally accepted
auditing standards, which are included in Statements on Auditing Standards published by the
American Institute of Certified Public Accountants and in Standards for Audit — Governmental
Organizations, Programs, Activities and Functions published by the Comptroller General of the
United States, the Single Audit Act of 1984, Office of Management and Budget (OMB) Circular
A-133, and the provisions of OMB's "Compliance Supplement for Single Audits of Grants to
States and Local Governments."
OTHER SERVICE REQUIREMENTS
Special reports shall be prepared for the following offices and/or departments during the period
audited:
• Public Trustee (note disclosure)
• Treasurer
• Grand Jury Audit of Treasurer, as required
• Road and Bridge Revenues and Expenditures
• Weld County Retirement Plan
The auditor shall furnish an opinion on its report on these financial statements.
The County may require consultation with respect to filing and obtaining the "Certificate of
Achievement for Excellence in Financial Reporting" from the Government Finance Officers
Association (GFOA). In this regard, the County will be kept up to date on the status of
impending authoritative pronouncements including those related to the Financial Reporting
Model and related Measurement Focus and Basis of Accounting that impact the financial
reporting display.
In addition, if the County intends to include the audit report in a public debt offering, our firm
requires that we review the offering prior to issuance. This avoids potential problems that could
arise if information in the document conflicts or is inconsistent with the audited financial
statements. This policy is meant to protect our clients as well as ourselves. There is no charge
for this service.
3
Section 1 —Our Understanding of Your Requirements
OUR PROPOSAL OBJECTIVES
In the sections that follow, our objectives are to demonstrate to the Finance/Audit Committee
that:
• We have the technical qualifications, competency and capacity to undertake the
independent audit of the County in conformity with the requirements of the Request for
Proposal.
• Our service approach will achieve the reporting and accountability objectives of the
County in a manner that provides a high degree of reliability with efficient execution.
• The County will be a most valued client of McGee, Hearne & Paiz, LLP and the personnel
assigned to the engagement are both capable and committed to providing quality service
that meets your delivery requirements.
Section
TECHNICAL PROPOSAL
In order to facilitate your evaluation of our
1 technical qualifications, competency and
capacity, we have attempted to organize this
section in the same order as the items appearing
in your Request for Proposal.
INDEPENDENCE
McGee, Hearne & Paiz, LLP is independent of
the County as defined by Auditing Standards
Generally Accepted in the United States of
America (GAAS) and Government Auditing
Standards (GAS). Furthermore, if a situation
were to arise that would bring into question our
independence, we would immediately provide
written notice to the County.
LICENSE TO PRACTICE IN
COLORADO
The firm, McGee, Hearne & Paiz, LLP, as well as
all other key staff, are licensed to practice in
Colorado, Wyoming, and Nebraska.
5
Section 2—Technical Proposal
FIRM QUALIFICATIONS AND EXPERIENCE
THE FIRM
McGee, Hearne & Paiz, LLP was formed September 1, 2000 when it purchased the existing
Cheyenne practice of McGladrey & Pullen, LLP and RSM McGladrey, Inc. One of the largest
CPA firms in Wyoming, McGee, Hearne & Paiz, LLP is a diversified practice conducted in
Cheyenne and the surrounding area. We currently provide a wide range of professional
services throughout Wyoming, Colorado and Nebraska.
Our Firm has adopted the "Code of the West," demonstrating our commitment to the integrity
and ethics that we value. This code was written by James P. Owen after observing how
cowboys do business with one another, advises to live each day with courage, take pride in your
work, finish what you start, do what has to be done, be tough but fair, keep your promises, ride
for the brand, talk less and say more, remember that some things aren't for sale, and know
where to draw the line.
We are continuing our relationship with McGladrey & Pullen, LLP through membership in the
McGladrey Alliance. The McGladrey Alliance is the premier affiliation of independent
accounting and consulting firms in the nation. At the heart of the McGladrey Alliance is RSM
McGladrey, Inc., one of the largest accounting, tax, and consulting firms in the United States.
Our membership in the McGladrey Alliance provides our firm with access to the resources of a
national accounting firm, while providing the service our clients expect from a locally owned and
managed accounting firm.
In addition to auditing financial statements, McGee, Hearne & Paiz, LLP offers a wide array of
professional services including management consulting, tax preparation and planning, and
information technology support. We serve more than 3,000 clients in Wyoming, Colorado, and
Nebraska, including numerous governmental state and local agencies.
All of the professionals assigned to this engagement will be full-time employees or partners of
McGee, Hearne & Paiz, LLP. It is not our intent, nor do we anticipate using subcontractors, or
forming a joint venture/consortium with another firm.
The professional staff complement of our firm is shown below:
Audit Tax Consulting Totals
Partners 6 4 - 10
Managers 5 4 1 10
Supervisors - 2 1 3
Professional Staff 21 7 3 31
Totals 32 17 5 54
Over 90% of our audit professionals are experienced serving state and local government
agencies.
6
Section 2—Technical Proposal
Through our affiliation with the McGladrey Alliance, the County will have access to two key
resource groups to assist with the audit process: National Audit and Accounting, and the
Government Consulting Group. Their special expertise is described in the following paragraphs.
RSM McGladrev National Audit and Accounting
National Audit and Accounting is RSM McGladrey's technical research and quality control
function. This resource will be made available to the County on matters relating to
governmental accounting and financial reporting, as well as compliance auditing, internal audit
policies, standards and procedures.
RSM McGladrev Government Consulting Group
RSM McGladrey specialists serve government clients throughout the country. This group will
assist, if necessary, the audit team in reviews related to the County's Electronic Data
Processing (EDP) environment, and will serve as a resource in matters relating to the
operations of government entities.
PEER REVIEW REPORT
Our most recent Peer Review report is included in Appendix A. Our next peer review is
scheduled for the fall of 2010.
QUALITY OF WORK
McGee, Hearne & Paiz, LLP does not have a record of substandard audit work and is not
involved in any lawsuits with any governmental entity, nor have we been dismissed from an
engagement with any governmental entity. Furthermore, there has been no disciplinary action
taken, nor is there any pending disciplinary action against the Firm from any state regulatory
body or professional organization.
FEDERAL AND STATE QUALIFICATIONS
McGee, Hearne & Paiz, LLP meets Federal and State laws and regulations to the best of our
knowledge.
7
Section 2—Technical Proposal
PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE
The County will be an important client to McGee, Hearne & Paiz, LLP and the quality of the
personnel we have assigned to the engagement underscores that importance. Our commitment
to serve the County is only as good as the people you will encounter. Therefore, we have
designated personnel to be assigned to the Client Service Team who have outstanding
technical skills and are familiar with the operational and financial environment of governmental
organizations, including counties. Their individual and collective talents make them uniquely
qualified to provide the County with the highest quality level of professional services. Our team
approach will ensure timely completion of the engagement and communication of findings. The
governmental experience of these professionals will ensure minimum disruption of the County's
daily routines.
The contributions the key members of the team will make are described below. Complete
resumes are also provided in Appendix B.
Engagement Partner
In his role as engagement partner, Robert W. Dahill will have ultimate responsibility for the
overall quality of the audit and will ensure required professional services are delivered in a
timely and efficient manner. He will determine the content of our accountant's reports and be
responsible for ascertaining that state, professional and regulatory standards have been
complied with throughout the engagement. Specifically, he will direct the activities of the audit
team, and review audit results and conclusions.
Quality.Control Partner
Pat McGuire will be responsible for performing a quality control review of the County's
Comprehensive Annual Financial Report as part of our audit process. Pat is a member of the
Governmental Finance Officers Association special review committee. This committee is
responsible for reviewing submissions for the Certificate of Achievement for Excellence in
Financial Reporting. Therefore, Pat is available to help you achieve your goals of obtaining the
GFOA certificate each year.
Manager
As audit manager, Amber Nuse will coordinate the activities of the professional staff members
assigned to the engagement, participate in planning and developing the overall audit approach
and monitor all phases of the audit to ensure timely completion.
Audit Staff
Staff accountants of McGee, Hearne & Paiz, LLP will perform the fieldwork under the direction
of the in-charge accountant, who will direct the day-to-day performance and conduct of the
audit. Their functions will include gathering data, preparing analyses and performing detail
tests.
In addition to the individuals identified above, a number of governmental industry specialists
may be called upon to assist on this engagement.
8
Section 2—Technical Proposal
AFFIRMATIVE ACTION
It is the policy of McGee, Hearne & Paiz, LLP to provide equal employment opportunity to all
persons without regard to their race, color, religion, sex, age, disability, national origin, or
handicap, and to promote the full realization of equal employment opportunity through a positive
continuing program. Our Firm assures that applicants are recruited, hired, and treated during
employment without regard to their race, color, religion, sex, age, disability, national origin or
handicap. Equal opportunity and equal consideration is afforded to all applicants and
employees in personnel actions which include recruiting and hiring, selection for training,
promotion, fixing rates of pay or other compensation, transfer or termination. It is our intention,
through the implementation of this policy, to provide full employment opportunities for members
of minority groups and women toward reaching the goal of full parity through aggressive
upgrading and recruiting actions. Furthermore, it is our policy to coordinate the affirmative
action program directed at seeking personnel from minority groups and women for employment
with the Firm and to provide encouragement and direction to our staff to advance within the
limits of each individual's capabilities.
Additionally, our affirmative action policy includes a commitment to employ, and advance in
employment, qualified veterans and veterans of the Vietnam era. Such action applies to all
employment practices of the Firm.
CONTINUING PROFESSIONAL EDUCATION
All of the personnel to be assigned to the County engagement have met the independence and
continuing professional education (CPE) requirements of the Government Auditing Standards.
Therefore, each auditor performing work under Generally Accepted Government Auditing
Standards (GAGAS) completes, every two years, at least 80 hours of CPE that directly
enhances the auditor's professional proficiency to perform audits or attestation engagements.
At least 24 of the 80 hours of CPE are in subjects directly related to government auditing, the
government environment, or the specific or unique environment in which the audited entity
operates. McGee, Hearne & Paiz, LLP requires that at least 20 hours of the 80 be completed in
any one year of the two-year period.
During the past three years, engagement staff and management have completed the following
training related to government accounting and auditing:
• AICPA National Government Conference
• Wyoming Society of CPA's Government Accounting and Auditing Courses
• Colorado Society of CPA's Government Accounting and Auditing Courses
• GFOA Annual Governmental GAAP Update
• AICPA Info Bytes Government Audit and Accounting Modules
• In-Office Single Audit Course Emphasizing the Provisions of OMB Circular A-133
• McGladrey & Pullen Web Conferences on Government Audit and Accounting
In addition, our industry specialists have attended, and are encouraged to attend, courses
conducted by external organizations in order to enhance their area of expertise.
Please refer to the biographies included in Appendix B regarding membership in professional
organizations relevant to the services to be provided to the County.
q
Section 2—Technical Proposal
SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENTAL ENTITIES
STATES
STATE OF WYOMING AND STATEWIDE SINGLE AUDIT
CAFR Audit: June 30, 2002—Present
Staff Hours: 3,400
Engagement Partner. Ken Dugas
Engagement Manager. Robert Dahill
Single Audit: June 30, 1997-Present
Staff Hours: 3,000
Engagement Partner. Ken Dugas
Engagement Manager. Robert Dahill
Contacts: Mr. Michael Geesey, Director—Department of Audit
Phone: (307)777-6605
*Website: http://sao.state.wy.us/saopubs.htm
Located in Cheyenne
LOCAL GOVERNMENTS
SWEETWATER COUNTY,WYOMING SWEETWATER COUNTY IMPROVEMENT PROJECTS
Financial&Compliance Audits: June 30, 2005-Present JOINT POWERS BOARD
Staff Hours: 750 Financial Audits: June 30, 2008-Present
Engagement Partner. Robert Dahill Staff Hours: 150
Engagement Manager. Amber Nuse Engagement Partner. Robert Dahill
Contact: Mr. Robb Slaughter, County Treasurer Contact: Mr. Carl Demshar,Jr., Chairman
Phone: (307)872-6380 Phone: (307)382-2594
"Website: This client has not posted their audit report on their *Website: This client has not posted their audit report on their
website website
Located 265 miles from Cheyenne Located 265 miles from Cheyenne
CITY OF CHEYENNE,WYOMING CHEYENNE BOARD OF PUBLIC UTILITIES
CAFR& Compliance Audits: June 30, 2007- Present CAFR& Compliance Audits: June 30,2007- Present
Staff Hours: 600 Staff Hours: 300
Engagement Partner. Ken Dugas Engagement Partner. Ken Dugas
Engagement Manager. Amber Nuse Engagement Manager. Amber Nuse
Contact: Ms. Barbara Dorr, City Treasurer Contact: Mr.Tim Wilson, Director
Phone: (307)638-4382 Phone: (307)637-6460
"Website: htto://www.chevennecity.oro/index.aspx?nid=114 *Website: http://www.chevennecitv.oro/index.aspx?nid=1021
Located in Cheyenne/Includes the discretely presented Located in Cheyenne
component unit—Downtown Development Authority
CITY OF ROCK SPRINGS,WYOMING CITY OF BUFFALO,WYOMING
Financial&Compliance Audits: June 30, 2005-Present Financial& Compliance Audits: June 30,2009- Present
Staff Hours: 450 Staff Hours: 250
Engagement Partner. Robert Dahill Engagement Partner. Robert Dahill
Engagement Manager. Amber Nuse Contact: Ms. Julie Silbemagel, Clerk/Secretary
Contact: Ms. Lisa Tarufelli, Director of Administrative Srvs. Phone: (307)684-5566
Phone: (307)352-1500 `Website: This client has not posted their audit report on their
*Website: website
http://www.rswy.net/eclov/docs/1248963706205.htm Located 290 miles from Cheyenne
Located 250 miles from Cheyenne
/0
Section 2—Technical Proposal
GOVERNMENTAL RETIREMENT SYSTEMS
WYOMING RETIREMENT SYSTEM
CAFR Audit: December 31, 2002—Present
Staff Hours: 350
Engagement Partner. Ken Dugas
Contacts: Mr.Thomas Williams, Director
Phone: (307)777-7691
*Website: httu://www.retirement.state.wv.us/retl.asp#CAFR
Located in Cheyenne
UNIVERSITIES AND COLLEGES
UNIVERSITY OF WYOMING
Financial& Compliance Audits: June 30, 1995—Present
Staff Hours: 2,000
Engagement Partner. Jim Hearne
Contacts: Ms.Janet Lowe,Associate VP for Fiscal Administration
Phone: (307)766-4196
*Website: This client has not posted their audit report on their website
Located 45 miles from Cheyenne
LARAMIE COUNTY COMMUNITY COLLEGE EASTERN WYOMING COLLEGE
Financial& Compliance Audits: June 30,2002-Present Financial&Compliance Audits: June 30, 2005-Present
Staff Hours: 350 Staff Hours: 350
Engagement Partner. Wayne Herr Engagement Partner Wayne Herr
Contact: Mr. Darrel Hammon, President Contact: Mr. Ron Laher,Vice President of Financial Srvs.
Phone: (307)778-5222 Phone: (307)532-8218
"website: This client has not posted their audit report on their *Website: This client has not posted their audit report on their
website website
Located in Cheyenne Located 85 miles from Cheyenne
CENTRAL WYOMING COLLEGE NORTHWEST COLLEGE
Financial& Compliance Audits: June 30, 2008-Present Financial& Compliance Audits: June 30, 2005-Present
Staff Hours: 540 Staff Hours: 350
Engagement Partner. Wayne Herr Engagement Partner. Wayne Herr
Contact: Mr.Jay Nielson, Vice President of Financial Srvs. Contact: Mr. Kim Mills,Vice President of Administrative Srvs.
Phone: (307)855-2105 Phone: (307)754-6404
*website: This client has not posted their audit report on their *Website: This client has not posted their audit report on their
website website
Located 270 miles from Cheyenne Located 415 miles from Cheyenne
SCHOOL DISTRICTS
LARAMIE COUNTY SCHOOL DISTRICT No. 1 GOSHEN COUNTY SCHOOL DISTRICT No. 1
Financial&Compliance Audits: June 30,2005-Present Financial& Compliance Audits: June 30, 2005-Present
Staff Hours: 500 Staff Hours: 350
Engagement Partner. Ken Dugas Engagement Partner Russ Hay
Engagement Manager Amber Nuse Engagement Manager. Amber Nuse
Contact: Mr. Michael Wiggim, Program Administrative/Finance Contact: Ms. Marcy Cates, Business Manager
Phone: (307)771-2110 Phone: (307)532-2171
*website: This client has not posted their audit report on their *website: This client has not posted their audit report on their
website website
Located in Cheyenne Located 83 miles from Cheyenne
//
Section 2—Technical Proposal
We believe that McGee, Hearne & Paiz, LLP is uniquely qualified to audit the activities of the
County. Our people have extensive experience performing financial and compliance audits
administered by state and local governmental units. One of McGee, Hearne & Paiz, LLP's
largest specialized industries is governmental units.
In size, our governmental clients range from large departments, agencies and institutions of
state governments to relatively small units of local government. Nearly all kinds of
governmental activities are included. Because of our strong commitments to the audit of
governmental units, and because of strong Firm commitments to a high degree of quality, we
have developed certain specialized audit programs and other material for use in performing
these audits. These include audit programs designed for specific types of expenditures and
revenue, as well as audit software used in sample selection and other audit testing.
SPECIFIC AUDIT APPROACH
PROPOSED AUDIT AND QUALITY CONTROL REVIEW APPROACH
At McGee, Hearne & Paiz, LLP, we take a two-step approach, studying each client's situation
from two important perspectives:
1. A historical perspective: Studying a record of the past.
2. A future-oriented perspective: Using this record to make recommendations to the
County and help you meet your goals and objectives.
In our opinion, both perspectives are essential if we are to provide the best service to our
clients. Each supports and reinforces the other.
The Historical View: Excellence in Auditing
A financial audit is fundamental to our profession. McGee, Hearne & Paiz, LLP professionals
are experienced in this basic and important task.
We have established high standards and internal controls to ensure quality and excellence in
auditing and to guide us in this important aspect of our practice. Five major components
comprise McGee, Hearne & Paiz, LLP's financial and compliance audit. These are:
1. An audit of, and our reports on, the financial statements of the County, including
satisfying the audit requirements and provisions contained within Government Auditing
Standards (the "yellow book") and OMB Circular A-133.
2. Compliance reports required by OMB Circular A-133.
3. A review of, and recommendations on, internal control structure at the County and our
reports thereon.
/Z
Section 2—Technical Proposal
4. A review of, and recommendations on, the overall accounting inefficiencies noted during
our audits.
5. A "post audit" meeting with management and those charged with governance to discuss
our audit reports, letters and suggestions.
Looking Ahead: To Meet the Future with Confidence
As we said, the financial audit is a basic tool of our profession. But we are not content to use
our audits to satisfy compliance requirements. We know the timely and reliable information
generated by the audits gives us an excellent opportunity to develop a comprehensive
understanding of the County. We use this understanding to provide advice and suggestions to
help the County meet the future goals you outline for us.
WELD COUNTY, COLORADO AUDIT APPROACH
The approach to the audit of the County used by McGee, Hearne & Paiz, LLP will consist of the
following segments:
Client Familiarization
Our approach begins with an in-depth understanding of the County,
not only to identify areas of audit importance and risk, but also to
increase the opportunity to efficiently and effectively meet the
County's needs. This segment of our approach includes:
Achievement • General familiarization with the County's background and
operations, their personnel and other operating characteristics.
• Review and evaluation of the County's internal control structure
and its accounting and data processing systems.
• Preliminary analysis of accounting, reporting and compliance
issues affecting the County related to Federal grants.
Staffing for this segment of the engagement would involve the
engagement and quality control partners, manager, and assigned Stafhng in-
charge. Our preference would be to perform this work on site at the
County offices through an entrance conference. However, based on
availability, this could also be accomplished through a conference
call(s).
We would begin this segment of the audit immediately after the award
Timing
of the audit.
In the first year of the audit, we would be required to review the
workpapers of the prior auditor, so that we can rely on the beginning
Initial/Subsequent
balances. In subsequent years, the review of prior auditor's
Audit Approach
workpapers would not be required, and we would schedule the
entrance conference with the planning segment of the audit.
/3
Section 2—Technical Proposal
Audit Planning
After obtaining the essential information, we will develop a
comprehensive audit plan that will encompass the following:
• Assessment of audit risk and the determination of appropriate
materiality levels for audit testing purposes.
• Determination of appropriate strategies to audit transactions and
account balances which will produce the most persuasive audit
Achievement evidence at the least cost. This will include a review of Federal
Financial Assistance Program participation and assessment of
the OMB Circular A-133 audit requirements relative to those
programs.
• Development of a comprehensive audit program to implement
those strategies.
• Development of a plan for the logistical aspects of the
engagements such as staffing, timing and coordination of efforts
with the County's personnel.
Staffing for this segment of the engagement would involve the
engagement partner, manager, in-charge and the assigned staff. This
Staffing
work would primarily be performed in our offices; however, we would
be requesting some interim information from you.
The timing for this segment of the audit would typically take place in
Timing
the October/November timeframe.
There would not be a significant difference in the audit approach
between the first year and the following years' audits. With an audit,
Initial/Subsequent
like most things in life, you learn new things and new approaches. We
Audit Approach
would do the same in our audit of the County, always building on our
knowledge base.
Preliminary Fieldwork
This segment will include tests of system transactions and control
Achievement structures, preliminary procedures, such as testing capital asset
additions, and where appropriate, audit of Federal grants and
compliance requirements to ensure maximum readiness for the
followin hases.
Staffing for this segment of the engagement would typically involve the
assigned in-charge and one or two professional staff. Our preference
Staffing would be to perform this work on site at the County offices. We would
anticipate scheduling the aforementioned individuals for three to five
da s.
/q
Section 2—Technical Proposal
Our staffing is such that we would be able to perform this phase of the
audit in the November/December timeframe. We realize that this
Timing
occurs during the "Holiday Season," therefore, we would work with
ou to find the most convenient time.
In the initial year of the audit, we are required to gain and document
our understanding of the County's internal control structure, McGee,
Hearne & Paiz, LLP would take the following approach:
1. In the planning segment of the audit, we would identify the
opinion units, major funds, as well as the significant accounts
and classes of transactions.
2. We would then provide that information along with our internal
documentation forms to the applicable individuals within the
Initial/Subsequent County to review and document any changes.
Audit Approach
3. During the preliminary fieldwork segment, we would update or
complete those internal control forms, perform walkthroughs to
ensure our understanding was correct, and test controls on a
sample of transactions within significant transaction cycles.
In the subsequent years' audits, we would document any changes to
the County's internal control structure, perform walkthroughs to ensure
our understanding was still correct, and test controls in accordance
with Government Auditin Standards.
Final Fieldwork
Final fieldwork encompasses verification and analytical procedures
performed on the Statement of Net Asset accounts and revenue and
expenditure transactions to the extent that we deem necessary. In
Achievement
addition, testing of compliance requirements of OMB Circular A-133
will be completed at this time. We will discuss with you our findings
and attempt to resolve issues or problems as we proceed with the
audits.
This segment of the engagement would involve the assigned Staffing in-
charge and three professional staff. In addition, we would anticipate
having the manager review take place. We would anticipate
scheduling approximately two to three weeks for this segment.
In terms of timing for this segment of the audit, we would work with the
Timing County to find a mutually agreeable date. Based upon the questions
asked at the July 15, 2010 entrance conference, we would anticipate
the timing of this segment to take place in the April/May timeframe.
(5
Section 2—Technical Proposal
In the initial and subsequent years' audits, we would begin this
segment of the audit with the entrance conference in order to
determine what work the County has completed, is still working on,
Initial/Subsequent and to develop an expectation as to when the audit work will be
Audit Approach completed and the CAFR issued.
In the subsequent years' audits, after we have developed an
understanding and familiarity with the County, we would look at
reducing inherent and control risk.
Report Review and Delivery
Auditing standards generally accepted in the United States of America
require supervision and review of the audits. Our system of quality
control involves reviews of the audit workpapers and reports by the in-
charge accountant, the project manager on the engagement as well
as the partner responsible.
Achievement In addition, an independent quality control review of the audit reports
and the financial statements is performed by another audit and
accounting partner.
This phase will also include review of the report and management
letter drafts by the County's personnel and meetings to discuss these
drafts. Finally, after any issues with the drafts are resolved, we will
issue and deliver the final reports and management letters.
Staffing for this segment of the engagement would primarily involve
Staffing practical,
engagement and quality control partners, and the manager. When
practical, we would like for these reviews to take place on-site at the
County, in order to reduce delays in resolving issues.
Timing The timing for this segment of the audit work would take place in the
May/early June timeframe. We are cognizant of the six month GFOA
deadline.
Initial/Subsequent We do not anticipate that there would be a significant difference in the
Audit Approach Report Review and Delivery segment of the audit in the first year or
subsequent years.
16
Section 2—Technical Proposal
ADDITIONAL DATA
• All but one of the government entities that we audit in Wyoming have a June 30 year
end. This is beneficial to the County in a number of ways: (1) if any new
pronouncements have been issued, we will typically have them implemented for the
June 30 engagements, thus, the County can benefit from this experience, (2) timing — by
December 31, we have completed all of our governmental audits, and all of our
December 31 commercial audits are completed by the first of April, therefore, the April—
June timeframe is typically not as busy. This would benefit the County in terms of
scheduling final fieldwork.
• We have reviewed the County's "Data Collection Form for Reporting on Audits of States,
Local Governments, and Non-Profit Organizations" for the last three years and noted
that through our audit of the State of Wyoming and other governmental clients, we have
audited the majority of the County's Federal programs (over $500,000) at least once
within the last three years. Those programs include, but are not limited to:
> SNAP Cluster(CFDA#10.551, #10.561)
> Emergency Food Assistance Cluster(CFDA#10.568, #10.569)
> Employment Service Cluster(CFDA#17.207, #17.801, #17.804)
> WIA Cluster(CFDA#17.258, #17.259, #17.260)
> Highway Planning and Construction Cluster(CFDA#20.205, #20.219, #23.003)
> TANF Cluster(CFDA#93.558, #93.714, #93.716)
> CCDF Cluster(CFDA#93.575, #93.596, #93.713)
> Medicaid Cluster(CFDA#93.775, #93.776, #93.777, #93.778)
> Healthy Marriages (CFDA#93.086)
> Child Support Enforcement (CFDA#93.563)
> Low Income Home Energy Assistance (CFDA#93.568)
> Foster Care/Adoption Assistance (CFDA#93.568, #93.569)
> Social Services Block Grant(CFDA#93.667)
Therefore, we have the knowledge and experience to efficiently and effectively audit your major
Federal programs.
REFERENCE TO COMPENSATION
We appreciate the investment you are considering making in us and, like your investment in us,
we will invest considerable resources in order to deliver the high quality professional services
you deserve.
Our compensation schedule is in the attached sealed envelope accompanying this proposal,
labeled: PART 2 — MAXIMUM FEE FOR AUDIT SERVICE SEPARATE FOR FISCAL YEARS
2010 AND 2011.
17
Appendix A
PEER REVIEW REPORT
"We understand your challenges and the
climate in which you work. Our Firm has
years of experience working with govern-
mental entities."
B Y
CERTIFIED PUBLIC ACCOUNTANTS
AND CONSULTANTS
October 10, 2007
To the Partners
McGee, Hearne& Paiz, LLP
We have reviewed the system of quality control for the accounting and auditing practice of McGee,
Hearne & Paiz, LLP in effect for the year ended June 30, 2007. A system of quality control encompasses
the firm's organizational structure, the policies adopted and procedures established to provide it with
reasonable assurance of conforming with professional standards.The elements of quality control are
described in the Statements on Quality Control Standards issued by the American Institute of CPAs
(AICPA). The firm is responsible for designing a system of quality control and complying with it to provide
the firm reasonable assurance of conforming with 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 with its system of quality control based on our review.
Our review was conducted in accordance with standards established by the Peer Review Board of the
AICPA. During our review, we read required representations from the firm, interviewed firm personnel
and obtained an understanding of the nature of the firm's accounting and auditing practice, and the
design of the firm's system of quality control sufficient to assess the risks implicit in its practice. Based
on our assessments, we selected engagements and administrative files to test for conformity with
professional standards and compliance with the firm's system of quality control. The engagements
selected represented a reasonable cross-section of the firm's accounting and auditing practice with
emphasis on higher-risk engagements.The engagements selected included among others, audits of
Employee Benefit Plans, and engagements performed under Government Auditing Standards. Prior to
concluding the review, we reassessed the adequacy of the scope of the peer review procedures and met
with firm management to discuss the results of our review.We believe that the procedures we performed
provide a reasonable basis for our opinion.
In performing our review, we obtained an understanding of the system of quality control for the firm's
accounting and auditing practice. In addition,we tested compliance with the firm's quality control policies
and procedures to the extent we considered appropriate.These tests covered the application of the
firm's policies and procedures on selected engagements. Our review was based on selected tests
therefore it would not necessarily detect all weaknesses in the system of quality control or all instances
of noncompliance with it, There are inherent limitations in the effectiveness of any system of quality
control and therefore noncompliance with the system of quality control may occur and not be detected.
Projection of any evaluation of a system of quality control to future periods is subject to the risk that the
system of quality control may become inadequate because of changes in conditions, or because the
degree of compliance with the policies or procedures may deteriorate.
In our opinion, the system of quality control for the accounting and auditing practice of McGee, Hearne&
Paiz, LLP in effect for the year ended June 30, 2007 has been designed to meet the requirements of the
quality control standards for an accounting and auditing practice established by the AICPA and was
complied with during the year then ended to provide the firm with reasonable assurance of conforming
with professional standards.
Brady Martz& sociates .
BRADY,MARTZ&ASSOCIATES,P.C.401 Demers.Avenue Suite 300 P.O.Box 14296
Grand Forks,ND 58208 4296(7011 775-4685 Fax 17011 795-7498
OTHER OFFICES. Minot and Bismarck,ND RSM McGladrey Network
Thief River Fats,MN Arhdeomvelro Owe Menter
Appendix B
ENGAGEMENT TEAM RESUMES
"We're no-nonsense people with an eye
towards results — just like the organizations
we serve."
Robert W. Dahill is a Wyoming native who
graduated from the University of Wyoming in
May of 1990. He began work as a staff
accountant with McGladrey & Pullen, LLP in
Casper, Wyoming in July of 1990. He then
moved to Billings, Montana in December of
1993 to work for a local firm as an in-charge
accountant. He rejoined McGladrey &
ROBERT VV. DAHILL Pullen, LLP in Cheyenne, Wyoming in
August of 1997 as a senior audit in-charge.
PARTNER
Robert has extensive experience in serving
MCGEE, HEARNE & PAIZ, LLP as a senior audit in-charge for a wide variety
of clients, including the State of Wyoming.
As a partner of our general services staff,
Robert attends Continuing Professional
Education courses to continually increase his
knowledge and expertise in the many areas
of the profession and has attended
McGladrey & Pullen's National Internal
Control Specialist course. He serves as the
office's Internal Control Specialist.
Robert is a member of the American Institute
of Certified Public Accountants and the
Wyoming and Colorado Society of Certified
Public Accountants. He was originally
certified in Wyoming. Robert is active with
the Kiwanis Club of Cheyenne and other
local civic and charitable organizations. He
is also a graduate of the Leadership
Cheyenne Program, sponsored by the
Cheyenne Chamber of Commerce.
Patrick C. McGuire is a general service
partner providing audit, accounting, business
consulting and tax advice to businesses and
individuals in varied industries. He has
extensive experience in serving state and
local governmental units. His primary
responsibility is for quality control over
PATRICK C. MCGUIRE accounting services.
PARTNER He is a native of Minnesota where he
QUALITY CONTROL SPECIALIST graduated from Mankato State University in
1971 with a Bachelor of Science Degree in
Accounting. He was a partner with the
MCGEE, HEARNE & PAIZ, LLP predecessor firm of McGladrey & Pullen, LLP
since 1981.
Pat is a member of the American Institute of
Certified Public Accountants, the Wyoming
and Colorado Society of Certified Public
Accountants and has served on the Board of
Directors of various civic organizations. He
is currently the Secretary of the Wyoming
State Board of Certified Public Accountants.
Pat is also a member of the Special Review
Committee of the Government Finance
Officers Association that awards Certificates
of Achievement for Excellence in Financial
Reporting.
Amber is a manager in our general services
area. She joined McGee, Hearne & Paiz,
LLP in February 2005 after three years of
experience with a Big Four firm. She
graduated from the University of Colorado at
Boulder in 2001, with her Masters of
AMBER NUSE, CPA Professional Accountancy.
MANAGER Amber is specialized in a broad range of
audit engagements including governmental
entities, educational institutions, and not-for-
MCGEE, HEARNE & PAIZ, LLP profit organizations. She has conducted
audit engagements and provided client
assistance. She has served as audit
manager for several of our governmental
entities, commercial corporations and
nonprofit organizations.
Amber continues her professional education
by attending programs sponsored by various
state societies, the American Institute of
Certified Public Accountants, through self-
study and maintains sufficient continuing
professional education to meet Government
Auditing Standards requirements.
Amber is a member of the American Institute
of Certified Public Accountants and the
Wyoming and Colorado Society of Certified
Public Accountants.
MEMORANDUM
TO: Board of County Commissioners
CDATE: August 20, 2010
• FROM: Barb Connolly
COLORADO
SUBJECT: Audit Services Bid 81000123
We received 5 bids for audit services. The bid is for 2 years certain, 2011 and 2012 fiscal
years, with possible 3 one year extensions.
The mandatory elements, independent, licensed in Colorado, staff have required continuing
education requirements, no conflict of interest, received quality control review with not problems, and
worked with other entities that applied for the GFOA certificate and were awarded that certificate,
were met by all the bidders. All agencies have the technical qualifications required also.
References for the low bid of McGee, Hearne & Paiz have been called and they are all
favorable. We recommend accepting the low bid from McGee, Hearne and & Paiz for the audit
services of 2011 and 2012.
If you have any question, please contact me at extension 4445.
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Sec. 5-4-30. Bid regulations.
A. Section 14-9 of the Home Rule Charter specifies that:
1. The Board of County Commissioners shall adopt bidding procedures for County
purchases which shall assure open and competitive bidding on all County purchases, and the
Central Purchasing Division shall follow the procedures adopted in all County purchases.
2. Bid specifications shall be prepared in such a manner as to invite and encourage
bidding from all suppliers of the goods and equipment being purchased by the County. No
specifications shall be submitted to bidders so restrictive in detail as to eliminate any line of
competitive equipment.
3. The Board of County Commissioners shall give preference to resident County bidders
in all cases where the bids are competitive in price and quality.
4. The Board of County Commissioners shall enter in the minutes of the meeting at which
a purchase is made for other than a low bid, the reason for not accepting the low bid.
5. All purchases in excess of an amount to be set annually by the Board of County
Commissioners by ordinance shall be by written, sealed bid; and bids over the amount set
annually by ordinance by the Board of County Commissioners shall be followed by a ten-day
period for consideration and investigation of the bids submitted to determine comparisons of
quality and price. The ten-day waiting period may be waived by resolution of the Board for
emergency purchases. The Board shall accept the bid it finds to be most beneficial to the
County.
Aktn
4TI WELD COUNTY PURCHASING
915 10TH St Room #334, Greeley CO 80631
E-Mail: mwalters@co.weld.co.us
W Ilim E-mail: (970)reverett@co.weld.co.us
Phone: (970) 356-4000, Ext. 4223 or 4222
Fax: (970) 336-7226
COLORADO
DATE OF BID: August 6th, 2010
REQUEST FOR: AUDIT SERVICES
DEPARTMENT: Accounting/Finance
BID NO: #61000123
PRESENT DATE: August 11`", 2010
APPROVAL DATE: August 25"', 2010
VENDOR 2010 2011 TOTAL
MCGEE, HEARNE & PAIZ LLP $69,500 $71,500 $141,000
314 WEST 18TH STREET
CHEYENNE WY 82001-4464
SWANHORST & COMPANY LLC $74,000 $74,000 $148,000
8400 E CRESCENT PKWY SUITE 600
GREENWOOD VILLAGE CO 80111
CLIFTON GUNDERSON LLP $73,850 $76,100 $149,950
370 INTERLOCKEN BLVD SUITE 500
BROOMFIELD CO 80021
ANDERSON &WHITNEY $75,000 $77,000 $152,000
5801 W 11TH STREET SUITE 300
GREELEY CO 80634-4813
MCGLADREY & PULLEN LLP $77,620 $79,288 $156,908
555 17TH STREET SUITE 1000
DENVER CO 80202
**BIDS ARE BEING REVIEWED AT THIS TIME
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2010-1824
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