HomeMy WebLinkAboutVan Lant & Fankhanel, LLP 2016-07-15il I
Van Lant&
Fankhanel, LLP
--i Certified Public Accountants F --
July 15, 2016
David Spilman
Interim Finance Director
300 Seminary Ave.
Ukiah, CA 95482
COU No. 1617-150
We are pleased to confirm our understanding of the nature and limitations of the services we are
to provide for the City of Ukiah (City):
We will apply the attached agreed-upon procedures which the City of Ukiah has specified, for the
period ended June 30, 2015. The engagement is solely to assist the City in determining the data
and information included on the letter provided to the California Integrated Waste Management
Board dated July 12, 2016 (the "Letter") agrees with or was derived directly from the audited
financial statements for the fiscal year ended June 30, 2015. Our engagement to apply agreed-
upon procedures will be conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the
responsibility of those parties specified in the report. Consequently, we make no representation
regarding the sufficiency of the procedures described in the attachment either for the purpose for
which this report has been requested or for any other purpose. If, for any reason, we are unable
to complete the procedures, we will describe any restrictions on the performance of the
procedures in our report, or will not issue a report as a result of this engagement.
Because the agreed-upon procedures do not constitute an examination, we will not express an
opinion on the City's Letter or financial statements, or any elements, accounts, or items thereof.
In addition, we have no obligation to perform any procedures beyond those listed in the
attachment.
We will submit a report listing the procedures performed and our findings. This report is intended
solely for the use of the City Council members of the City of Ukiah and management of the City
of Ukiah, and should not be used by anyone other than these specified parties. Our report will
contain a paragraph indicating that had we performed additional procedures, other matters might
have come to our attention that would have been reported to you.
You are responsible for the presentation of the Letter; and for selecting the criteria and
determining that such criteria are appropriate for your purposes. You are responsible for assuming
Van Lant & Fankhanel, LLP
25901 Kellogg Street
Loma Linda, CA 92354
909.856.6879
all management responsibilities and for overseeing the agreed-upon services we provide by
designating an individual, preferably within senior management, who possesses suitable skill,
knowledge, and experience. In addition, you are responsible for evaluating the adequacy and
results of the services performed and accepting responsibility for the results of such services.
Brett Van Lant is the engagement partner and is responsible for supervising the engagement and
signing the report.
We will begin our procedures in July of 2016 and expect to complete the procedures by July 27,
2016. We will issue a draft report shortly after the completion of our fieldwork and the final report
will be issued after review by the City's staff and management. Our fees for these services will
be $1,500.
We appreciate the opportunity to assist you and believe this letter accurately summarizes the
significant terms of our engagement. If you have any questions, please let us know. If you agree
with the terms of our engagement as described in this letter, pleases sign a copy and return it to
us. If the need for additional services arises, our agreement with you will need to be revised.
Very truly yours,
j�v 4,t 4- yo-44oa.- iif
Van Lant & Fankhanel, LLP
Brett Van Lant, CPA
RESPONSE:
This letter correctly sets forth the understanding of the City of Ukiah.
c
By:
Title
Date: %a- LS- - i L
Schedule of Agreed-upon Procedures
Concerning the statements and information provided on items 1 through 5 as listed on the Letter:
1. Determine the amount presented in item (1) of the Letter for the Corrective Action Costs
agrees with the report provided by Rau and Associates Inc., dated January 9, 2014
regarding the Cost Estimate for Corrective Action Plan for Non -Water Release for the City
of Ukiah Landfill, 3100 Vichy Springs Road, Ukiah CA.
2. Determine if the City reported outstanding general obligation debt in the financial
statements for the fiscal year ended June 30, 2015.
3. Determine if the City operated at a deficit equal to five percent or more of total annual
revenue in each of the past two fiscal years. The total annual revenues for each of the
past two fiscal years will consist of the total revenues from the Statement of Revenues,
Expenditures, and Changes in Fund Balances for the Governmental Funds and the total
revenues from the Statement of Revenues, Expenses, and Changes in Net Position for
the Proprietary Funds, excluding internal service funds. The deficit, or surplus, for each
of the past two fiscal years will consist of the "Net Change in Fund Balances" on the
Statement of Revenues, Expenditures and Changes in Fund Balance for the
Governmental Funds and the "Change in Net Position" on the Statement of Revenues
Expenses and Changes in Net Position for the Proprietary Funds, excluding the internal
service funds.
4. Determine if the City received an adverse opinion, disclaimer of opinion, or other qualified
opinion from the independent certified public accountant auditing its financial statements
for the year ended June 30, 2015.
Concerning the statements and information provided on items 7 through 12 as listed on the Letter:
5. Determine the amounts presented in the Letter for items 7 through 12 were derived directly
from the audited financial statements for the fiscal year ended June 30, 2015.
Concerning the statements and information provided on items 13 through 15 as listed on the
Letter:
6. Determine, by recalculating each ratio for items 13 through 15, if the responses are
appropriate.
State of California
CIWMB 112 (Revised 2/05)
ALTERNATIVE 1
(Omit if using Altemative Il)
California Integrated Waste
Management Board
1.
Specify amounts of coverage: Postclosure Maintenance Costs $ -
Corrective Action Costs $ 634.925
TOTAL COSTS $ 634.925
2.
Is the local government currently in default on any outstanding general obligation bonds? Yes ❑
No
3.
Does the local government have any outstanding general obligation bonds rated lower than
Baa by Moody's or BBB as issued by Standard and Poor's?............................................. Yes ❑
No Q�
4.
Has the local government operated at a deficit equal to five percent or more of total annual
revenue in each of the past two fiscal years?................................................................... Yes ❑
No ®,
5.
Has the local government received an adverse opinion, disclaimer of opinion, or other qualified
opinion from the independent certified public accountant (or appropriate State agency) auditing its
financial statement as required under §22249(a)?............................................................ Yes ❑
No
If 2.3.4 or 5 = YES, STOP! The local eovernment is NOT elieible to assure its obligations under 422249.
If 2.3.4,
and 5 = NO. CONTINUE BELOW.
6.
Sum of costs assured under §22249 (total of all costs shown above and including the two numbered
paragraphs of the letter to CIWMB)..................................................... $ 634;925
* 7.
Total annual revenue........................................................................................ ..... $ 54,218,659
* 8.
Cash............................................................................................................................. $54,656,590
*9.
Marketable securities.....................................................................................................$6,532,349
10.
Sum of cash and marketable securities (line 8 + line 9) ................................................... $61,188,939
*11.
Total expenditures......................................................................................................... $ 58,101,378
*12.
Annual debt service........................................................................................................ $ 8,350,285
13.
43% Threshold Limit on Assured Costs:
Is line 6 = 43% or less of line 7?..................................................................................... Yes
Non
14.
Liquidity Ratio:
Is line 10 divided by line 1 I greater than or equal to 0.05? ............................................... Yes
No ❑
15. Debt Service Ratio:
Is line 12 divided by line I I less than or equal to 0.20? .................................................... Yes CK No ❑
I hereby certify that this letter is worded as specified by the California Integrated Waste Management Board and is being
executed in accordance with the requirements of Title 27, California Code of Regulations, Division 2, Subdivision 1, Chapter 6,
section 22249.
v. David W. Spilman
i _ e Typed or Printed Name
Interim Finance Director 07/12/16
Title Date