HomeMy WebLinkAboutWIPFLi, LLPApril 20, 2017
W�pfli LL?
122.0IYlhiE W.I., Drive
Idaho Falls, ID &390.7 -9459
208 5215953
fax 208 523 8995
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Board of Trustees
Bonneville Joint School District #93
3497 Ammon Road
Idaho Falls, ID 83401
Dear Board Members.
We are pleased to serve as your independent auditors for Bonneville Joint School District #93 (the
"District ") for the year ended June 30, 2017. The purpose of this Engagement Letter (this "Letter ") is to
review certain details of our engagement.
Audit Services
We will audit the financial statements and the related notes to the financial statements of the
governmental activities, each major fund, and the aggregate remaining fund information of Bonneville
Joint School District #93. Accounting standards generally accepted in the United States provide for certain
required supplementary information (RSI), such as management's discussion and analysis (MD &A), to
supplement the District's basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. As part of our engagement, we will apply certain limited
procedures to the District's RSI in accordance with auditing standards generally accepted in the United
States. These limited procedures will consist of inquiries of management regarding the .methods of
preparing the information and comparing the information for consistency with management's responses to
our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We will not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance. The following RSI is required by generally accepted accounting principles and will
be subjected to certain limited procedures but will not be audited:
1. Management's Discussion and Analysis
2, Budgetary Comparison Information
3. Schedules of Funding Progress -- OPEB
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Bonneville Joint School District #93
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4. Schedule of Employer's Share of net Pension Liability and Employer Contributions
We have also been engaged to report on supplementary information other than RSl that accompanies the
District's financial statements. We will subject the following supplementary information to the auditing
procedures applied in our audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States and will provide
an opinion on it in relation to the financial statements as a whole:
1. The combined and individual non -major fund financial statements
2. All Agency Funds combining Statement of Changes in Assets and Liabilities
3. Taxes Receivable Reconciliation
4. Schedule of expenditures of federal awards.
The objective of our audit is the expression of an opinion about whether your financial statements are
fairly presented, in all material respects, in conformity with accounting principles generally accepted in the
United States (GAAP) and to report on the fairness of the schedule of expenditures of federal and state
awards when considered in relation to the financial statements taken as a whole. The objective also
includes reporting on:
•
Internal control over financial reporting and compliance with provisions of laws, regulations,
contracts, and award agreements, noncompliance with which could have a material effect on the
financial statements in accordance with Govern men tAuditing Standards,
a�
Internal control over compliance related to major programs and an opinion (or disclaimer of
opinion) on compliance with federal statutes, regulations, and the terms and conditions of federal
awards that could have a direct and material effect on each major program in accordance with the
Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part
200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance).
The Government Auditing Standards report on internal control over financial reporting and on compliance
and other matters will include a paragraph that states that (1) the purpose of the report is solely to
describe the scope of testing of internal control and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the entity's :internal control or on compliance, and (2) the
report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the entity's internal control and compliance. The Uniform Guidance report on internal control
over compliance will include a paragraph that states that the purpose of the report on internal. control
over compliance is solely to describe the scope of testing of Internal control over compliance and the
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Bonneville Joint School District #93
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April 20, 2017
results of that testing based on the requirements of the Uniform Guidance. Both reports will state that the
report is not suitable for any other purpose.
Our audit will be conducted in accordance with auditing standards generally accepted in the United
States; the standards for financial audits contained in GovemmentAuditing.Standards; issued by the
Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions
of the Uniform Guidance, and will include tests of your accounting records, a determination of major
program(s) in accordance With Uniform Guidance, and other procedures we consider necessary to enable
us to express such an opinions. We will issue a written report upon completion of our audit. Our report
will be addressed to the Board of Directors of Bonneville Joint School District #93. We cannot provide
assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary
for us to modify our opinion or add an emphasis -of- matter or other - matter paragraph. If our opinion is
other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable
to complete the audit or a.re unable to form or have not formed an opinion, we may decline to express
opinions or to issue reports, or we may withdraw from this engagement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to be
examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financ€al statements, We will plan and perform the audit to
obtain reasonable assurance about whether the financial statements. are free from material misstatement,
whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations
of laws or governmental regulations that are attributable to the government or to acts by management or
employees acting . on behalf of the government. Because the determination of abuse is subjective,
Government Auditing Standards does not expect auditors to provide reasonable assurance of detecting
abuse.
Because of the inherent limitations of an audit combined with the inherent limitations of internal control,
and because we will not perform a detailed examination of all transactions, there exists an unavoidable
risk that some material misstatements may exist and not be detected by us even though out audit is
properly .planned and performed in accordance with GAAS and Government Auditing Standards. In
addition, an audit is not designed to detect immaterial misstatements or violations of law or government
regulations that do not have a direct and material effect on the financial statements, However, we will
inform the appropriate level of management and you of any material errors, any fraudulent financial
reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate
level of management and you of any violations of law or government regulations that come to our
attention, unless clearly inconsequential. Out responsibility as auditors is limited to the period covered by
our audit and does not extend to any later periods for which we are not engaged as auditors.
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Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories, and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, funding
sources, creditors, and financial institutions. We may request written representations from your attorneys
as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our
audit, we will require certain written representations from you about your responsibilities for the financial
statements; schedule of expenditures of federal awards; federal award programs; compliance with laws,
regulations, contracts, and grant agreements; and other responsibilities required by general accepted
auditing standards.
Our audit will include obtaining an understanding of the entity and its environment, including internal
control, sufficient to assess the risks of material misstatement of the financial statements, and to design the
nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the
effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud
that are material to the financial statements and to preventing and detecting misstatements resulting from
illegal acts and other noncompliance matters that have a direct and material effect on the financial
statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion
on internal control and, accordingly, no opinion will be expressed in. our report on internal control issued
pursuant to Government Auditing Standards.
As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the
effectiveness of the design and operation of controls that we consider relevant to preventing or detecting
material noncompliance with compliance requirements applicable to each major federal award program.
However, our tests will be less in scope than would be necessary to render an opinion on those controls
and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to the
Uniform Guidance.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies or
material weaknesses. However, during the audit, we will communicate to management and you internal
control related matters that are required to be communicated under professional standards.
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the District's compliance with provisions of applicable .Laws,
regulations, contracts, and agreements, including grant agreements. However, the objective of those
procedures will not be to provide an opinion on overall compliance and we will not express such an
opinion in our report on compliance issued pursuant to Government Auditing Standards,
The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance
about whether the auditee has complied with federal statutes, regulations, and the terms and conditions of
federal awards applicable to major programs. Our procedures will consist of tests of transactions and
other applicable procedures described in the OMB Compliance Supplement for the types of compliance
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requirements that could have a direct and material effect on each of the District's major programs. The
purpose of these procedures will be to express an opinion on the District's compliance with requirements
applicable to each of its. major programs in our report on compliance issued pursuant to the Uniform
Guidance.
We cannot perform management. functions or make management decisions on behalf of Bonneville Joint
School District #93. However, we may provide advice and recommendations to assist management in
performing its functions and fulfilling its responsibilities. We may advise management about appropriate
accounting principles and their application and may assist in the preparation of Bonneville Joint School
District #93's financial statements, but the responsibility for the financial statements remains with
management.
�Management. Responsibilities
Management is responsible for (a) establishing and maintaining effective internal controls, including
internal controls over federal awards, and for evaluating and monitoring ongoing activities, to help ensure
that appropriate goals and objectives are met; (b) following laws and regulations; (c) ensuring that there is
reasonable assurance that government programs are administered in compliance with compliance
requirements; and (d) ensuring that management and financial information is reliable and properly
reported. Management is also responsible .for implementing systems designed to achieve compliance with
applicable taws, regulations, contracts, and grant agreements. You are also responsible for the selection
and application of accounting principles; for the preparation and fair presentation of the financial
statements; schedule of expenditures of federal awards, and all accompanying information in conformity
with U.S. generally accepted accounting principles; and for compliance with applicable laws and
regulations and the provisions of contracts and grant agreements. Your responsibilities also include
identifying significant contractor relationships in which the contractor has responsibility fo.r program.
compliance and for the accuracy and completeness of that information.
Management is also responsible for making all financial records and related information available to us
and for the accuracy and completeness of that information. You are also responsible for providing us with
(1) access to all information of which you are aware that is relevant to the preparation and fair
presentation of the financial statements, (2) access to personnel, accounts; books, records, supporting
documentation, and other information as needed to perform an audit under the Uniform Guidance, (3)
additional information that we may request for the purpose of the audit, and (4) unrestricted access to
persons within the government from whom we determine it necessary to obtain audit evidence.
Management is responsible for adjusting the financial statements to correct material misstatements and for
confirming to us in the management representation letter that the effects of any uncorrected .
misstatements aggregated by us during the current engagement and pertalning to the latest period
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presented are immaterial, both individually and in the aggregate, to the financial statements taken as a
whole.
Management is responsible for the design and implementation of..programs and controls to prevent and
detect fraud, and for informing us about all known or suspected fraud affecting Bonneville Joint School
District #93 involving (a) management, (b) employees who have significant roles in internal control, and
(c) others where the fraud could have a material effect on the financial statements. You are also
responsible for informing us of your knowledge of any allegations of fraud or suspected fraud affecting
Bonneville JoW School District #93 received in communications from employees, former employees,
regulators, or others. In addition, management is responsible for identifying and ensuring that the entity
complies with applicable laws, regulations, contracts, and grant agreements, or abuse that we report.
Additionally, as required by the Uniform Guidance, it is management's responsibility to evaluate and
monitor noncompliance with federal statutes, regulations, and the terms and conditions of federal awards;
take prompt action when instances of noncompliance are identified including noncompliance identified in
audit findings; promptly follow up and take corrective action on reported audit findings; and prepare a
summary schedule of prior audit findings and a separate corrective action plan.. The summary schedule of
prior audit findings should be available for our review at the beginning of fieldwork.
You are responsible for identifying all federal awards received and understanding and complying with the
compliance requirements and for the preparation of the schedule of expenditures of federal awards
(including notes and noncash assistance received) in conformity with the Uniform Guidance. You agree
to include our report on the schedule of expenditures of federal awards in any document that contains
and indicates that we have reported on the schedule of expenditures of federal awards. You also agree to
'include the audited financial statements with any presentation of the schedule of expenditures of federal
awards that includes our report thereon or make the audited financial statements readily available to
intended users of the schedule of expenditures of federal awards no latex than the date the schedule of
expenditures of federal awards is issued with our report thereon, Your responsibilities include
acknowledging to us in the written representation letter that (I ) you are responsible for presentation of
the schedule of expenditures of federal awards in accordance with the Uniform Guidance; (2) you believe
the schedule of expenditures of federal awards, including its form and content, is stated fairiy in
accordance with the Uniform Guidance; (3) the methods of measurement. or presentation have not
changed from those used in the prior period (or, if they have changed, the reasons for such changes); and
(4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or
presentation of the schedule of expenditures of federal awards.
Management is responsible for the preparation of the supplementary information in conformity with
accounting principles generally accepted in the United States. You agree to include our report on the
supplementary information in any document that contains, and indicates that we have reported on, the
supplementary information. You also agree to include the audited financial statements with any
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Bonneville Joint School District #93
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April 20, 2017
presentation of the supplementary information that includes our report thereon OR make the audited
financial statements readily available to users of the supplementary information no later than the date the
supplementary information is issued with our report thereon. Your responsibilities include acknowledging
to us in the written representation letter that (1) you are responsible for presentation of the
supplementary information in accordance with GAAP; (2) you believe the supplementary information,
including its form and content, is fairly presented in accordance with GAAP; (3) the methods of
measurement or presentation have not changed from those used in the prior period (or, if they have
changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or
interpretations underlying the measurement or presentation of the supplementary information.
As required by GRAS, at the close of the audit we will request from management certain written
confirmation concerning oral and written representations made to us in connection with the audit in order
to indicate and document the continuing appropriateness of such representations and reduce the
possibility of misunderstanding.
If Bonneville Joint School District #93 intends to reproduce or publish these financial statements, or any
Portion thereof whether in paper or electronic form subsequent to anticipated year -end filings, and make
reference to our firm name in connection therewith, management agrees to provide us with proofs in
sufficient time for our review and written approval before printing. if in our professional judgment the
circumstances require, we may withhold our approval. Bonneville Joint School District #93 agrees to
compensate Wipfli for the time associated with such review.
Assistance to be supplied by your personnel, including the .preparation of schedules and analysis of
accounts, will be discussed with Guy Wangsgard. Timely completion of this work will facilitate the
completion. of our engagement.
Annual Forms and Reports
Our engagement will include the preparation of the federal data collection form, The full and timely
completion of requested client assistance and provision of any adjusting entries known by you are critical
in meeting the prescribed die dates for these forms. Penalties may be imposed if the filing deadlines are
not met. If during the course of our engagement we become aware of additional state filing
requirements, we will prepare those filings. Preparation of any additional filings and :reports and
accounting assistance as directed by management are .not. part of the fees for this engagement and will be.
billed at our standard hourly rates.
You are responsible for making all management decisions and performing all management functions and
for designating an individual with suitable shill, knowledge, and /or experience, preferably within senior
management, to oversee these services. You are responsible for evaluating the adequacy and results of
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Bonneville joint School District #93
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the services performed and accepting responsibility for the results. You are also responsible for
establishing and. maintaining internal controls, including monitoring ongoing activities.
Other
We will prepare a draft of your financial statements and related notes. You will be required to review and
approve those financial statements prior to their issuance and have a responsibility to be in a position in
fact and appearance to make an informed Judgment on those financial statements. Further, you are
required to designate a qualified management- level individual to be responsible and accountable for
overseeing our services.
Our fees will be billed as work progresses, and progress billings may be submitted. In addition, expenses
are bilied for reimbursement as incurred. Our fee has been determined based on our understanding
obtained through discussions with you regarding your preparation for the engagement and your current
business operations. To the extent we encounter circumstances outside of our expectations that warrant
additional procedures and time., we will communicate that fact and advise you of options and the
additional fees necessary to complete the engagement. We expect payment of our billings within 30 days
after submission. Interest at the lesser of 196 per month or the maximum rate permitted by law, except
where prohibited by law, will be charged on the portion of your balance that is over 30 days.
This engagement includes only those services specifically described in this Letter; any additional services
not specified herein will be agreed to in a separate letter. This engagement is separate and discrete from
our engagement to audit any prior or future years, and any such engagements are or will be covered by a
separate engagement letter. In the event you request us to, or we are required to, respond to a
subpoena, court order, government regulatory inquiries, or other legal process against Bonneville Joint
School District #93 or its management for the production of documents and /or testimony relative to
information we obtained and /or prepared during the course of this or any prior engagements, you agree
to compensate us for all time we expend in connection with such response, at our regular rates, and to
reimburse us for all related out -of- pocket costs that we incur.
The working papers prepared in conjunction with our audit are our property and constitute confidential
information, They will be retained by us in accordance with our policies and procedures. All of
Bonneville Joint School District #93's original records will be returned to management at the end of this
engagement. Our working papers and files are not a substitute for the original records Bonneville Joint
School District #93 should retain. We understand that we are authorized to respond directly to inquiries
from the cognizant agencies including requests to review audit workpapers. Access to the requested
workpapers will be provided to the cognizant agencies under the supervision of Wipfli LLP's. audit
personnel and at a location designed by our firm. We will notify you of any such inquiries or requests and
of our reply thereto.
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Bonneville Joint School District #k93
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Judy Brower, CPA will be your audit engagement partner.
Professional and certain regulatory standards require us to be independent, in both fact and appearance.
Any discussions that you have with Wipfli personnel regarding employment could pose a threat to our
independence. Therefore, we request that you inform us immediately.prior to any such discussions so that
we can implement appropriate safeguards to maintain our independence,
In order for us to remain independent, professional and regulatory standards require us to maintain certain
respective roles and relationships with you with respect to any nonattest services we may be asked to
perform. Prior to performing such services in conjunction with our audit, management must acknowledge
its acceptance of certain responsibilities.
Whenever possible, each provision of this Letter shall be interpreted in such a manner as to be effective
and valid under applicable laws, regulations, or published interpretations, but if any provision is deemed
prohibited, invalid, or otherwise unenforceable, such provision shall be ineffective only to the extent of
such prohibition, invalidity, or unenforceability and such revised provision shall be made a part of this
Letter. Further, the provisions of the foregoing sentence shall not invalidate the remainder of this Letter,
This Letter shall be construed and governed in accordance with laws of the state in which the Wipfli office
issuing this Letter is located, as determined by the address indicated on this letter, and proper jurisdiction
and venue for any matter hereunder shall be the state or federal courts of that state.
If the above terms are acceptable to you and the services outlined are in accordance with your
requirements, please return a signed copy of this Letter to us.
We look forward to our continued association with you and your staff and appreciate the opportunity to
servo you. Please do not hesitate to. tali .us if you have any questions about the work we are to perform
or any other aspect of the services we can provide.
Sincerely,
L1-P
Wipfli LLP
CPAs and Consultants
Board Members
Bonneville Joint School District #93
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April 20, 2017
ACCEPTED: BONNEVILLEJOINT SCHOOL. DISTRICT 493
(Print Name and Title)
Date; to __ /-