Powell & Jones CPA Proposal

Powell & Jones currently perform audits and related accounting and management advisory services for thirty-seven governmental and public agency clients. Included in these Clients are four counties, (Columbia, Suwannee, Taylor and Wakulla) Twenty-three cities and nine special districts totaling 420 years of experience).  References have been provided by the City of Lake Butler, the City of Trenton, The City of Perry, the City of Waldo and the City of Branford FL. The firm contends no negative comments or actions regarding federal and state desk and field reviews over the past twenty years, no regulatory issues or complaints nor has there been litigation filed against Powell & Jones, CPAs or any of its partners during the entire 36 years.
“Our two firm partners and our firm are fully qualified under governmental auditing standards and Florida law to serve on this assignment. Due to the flexibility attributed to our firm size, one of us will assist you directly on your audits, as we have always done in our past audits of the Town”.

 

The firm contends they have twenty-five years of past experience with the Town of White Springs; however, no real suggestions have been made by this firm as to internal controls or what needs to change and Mr. Powell certainly never discussed that we were handling our Local Option Fuel Taxes incorrectly.  If Mr. Powell would have told us the truth about the bad manner in which our finances were handled, perhaps we would have had a stronger financial director who would not have allowed our Town Manager to spend money until we were broke.

Powell & Jones confirmed they are separate of the town (an independent contractor) defined by generally accepted auditing principles, Government Auditing Standards and the Code of Professional Conduct.  All Key professional staff are properly registered, licensed to practice in the State of Florida.  The firm has provided continuous certified public accounting services for 35 years. 
 Resumes were included for Richard C. Powell CPA and Marian J. Powell, CPA co-audit Managers as well as Emilie Braswell wh has a B.A. Degree in Accounting from St. Leo’s University and a Bachelor of Education major in Mathematics from the University of Manila as well as a M.A. Education Guidance Counseling degree from the university of Manila where she was an adjunct professor for three years..  She has had 16 hours of Governmental/Non Profit Auditing and has been with Powell & Jones as a staff auditor for one year.

 

Powell & Jones was formed in 1983 as the result of Richard Powell withdrawing from the firm of Foreman, Kelly, Powell and Ruff, a firm he co-founded in 1975.  The office is located in Lake City Florida and has a current full-time staffing of two professional certified public accountants, six accountants and two paraprofessionals.  All of the professional positions work exclusively in the area of governmental and non-profit auditing and accounting.

 

COST PROPOSAL For the audit of the 2019 Fiancial Statement

Partners                                                       10 hours            $ 125/hour           $    1,250
Other CPA/Supervisor                      20 hours           $ 100/hour           $   2,000
Staff Auditor                                               104 hours         $90/hour              $  9,360
                                                                               =========       ========             =======
Total                                                                  134 hours                                               $ 12,610
LESS 15% DISCOUNT                                                                                                      (- 1,891)
                                                                                                                                                       =======
                                                                                                                                                      $ 10,719
Annual Fees for the next three years will be:    09/30/2019  $ 10,719;  09/30/2020  $ 11,200;   09/30/2021 $ 11,500    Additional if Federal or State Single Audit is required in any year $1,500
Any additional fees or costs would be subject to prior approval by the Town of White Springs.

Specialized Services to County and City Governments:

  • Budget preparation assistance including analysis of financial condition, financial review of budget documents and assistance with workshops public hearings and TRIM compliance.  Each government body is responsible for all budget related decision and its role is to provide them with accurate objective information to assist in making informed decisions.
  • Financing proposals  entailing development of financial plans to provide funding for capital improvements, preparation of “Requests for Proposals” for approved financing and assistance to the government in evaluating proposals received.  These services encompass both refinancing current debt and new issuances.
  • Financial studies  to provide their governmental clients with pertinent information to assist them in making decisions or related important decisions.  These services have included utility rate studies and recommendations for rate structures for municipalities.
  • Financial Statements
  • Computer assisted auditing utilizing their computer skills to the greatest extent possible in performing audits through integration of client computer systems with their computerized audit and filing software.
  • Federal and State Single Audits which are required under State and Federal Single Audit Regulations relating to grants.

Powell & Jones also had a Peer Review which was included.  Whereas Sexton and Schnoll’s peer review had a “Pass” with no deficiencies and whereas Sexton and Schnoll discussed internal controls at great lengths, Powell and Jones received a “Pass” WITH deficiencies relating to the Firm’s quality control policies.  Although the firm’s personnel complied with the CPE requirements of the State, insufficient courses had been taken covering audits of employee benefit plans.  the firm failed to comply with the requirements of professional standards on two employee benefit plan audits. The review of engagements were not performed in a thorough manner and the need for documentation to be improved that were not noted during the review of engagements and included two employee benefit plan audit engagements that were classified as non-conforming.

Whereas the firm’s quality control policies and procedures for engagement performance are designated to provide reasonable assurance that engagements will comply with professional standards in all material respects, the Peer review disclosed tat no engagement quality reviews were performed and that the reviews of engagement were not performed in a tghorough manner.  Powell & Jones included a letter to the Florida Institute of CPA’s stipulating remedial actions in their system of quality control as to training sessions for all personnel performing review procedures on engagements and planning procedures for its CPE (continuing education with the State) program dated August 13, 2018..

THE AUDIT PLAN FOR THE TOWN OF WHITE SPRINGS

PROCEDURAL APPROACH

The evidence gathered in the course of the audit will be evaluated.  Their primary function is to gather competent evidential matter that corroborates the assertions made by management in the financial statements.  The principal techniques used by the Firm’s auditors to acquire evidence on which their opinions are based are as follows.
  • Examination (inspection) of various recorded figures and entries
  • Confirmation of the supporting evidence from third parties
  • Observation of the Town’s financial operations
  • Verification meaning all of the firm’s activities related to the formulation of an opinion on the Town’s financial statement including accuracy of recorded balances and classifications; valuations of account balances by GAAP, ; Cutoff procedures; inqiries; Technical Assistance and Advice during the audit provided by the Firm without additional charge; and Necessary Client support in pulling selected invoice agreements and other documents required as evidential matter.

APPROACH TO GAIN AND DOCUMENT UNDERSTANDING

  • Control Environment
  • Risk Assessment
  • Information and Communications
  • Monitoring
  • Control Activities

 

UNDERSTANDING THE CONTROL ENVIRONMENT.  The foundations for all other components of internal control and providing structure and discipline, setting the tone of the Town’s agencies and influences the control consciousness of its Officers and Employees:

  • Integrity and ethical values
  • Commitment to competence
  • Attention and direction provided by the governing body or audit committee
  • Management’s philosophy and operating style
  • Organizational structure
  • Manner of assigning authority and responsibility
  • Human resource policies and procedures

RISK ASSESSMENTS

Refers to the Town’s identification analysis and management of risks relevant to the preparation of financial statements that are fairly presented, types of potential misstatements and designing control activities to prevent or promptly detect those misstatements.  Risks relevant to the financial reporting process of the Town:
  • Changes in the Entity’s operating environment
  • New personnel
  • New or revamped information sysems
  • Rapid growth or reorganization within the agency
  • New Technology
  • New business models, products or activities
  • New accounting pronouncements

Information and Communication

Understanding of Monitoring – because of changes among personnel and changes within the Town, it is essential internal controls be monitored over time to determine whether they continue to be relevant.

Understanding of Control Activities

  • Performance Reviews
  • Information Processing Controls to check the accuracy, completeness and authorization
  • Physical Controls- such as physical security of assets including adequate safeguards over access to assets and records, authorization for access to computer programs and data files and periodic scounting and comparison with amounts recorded in the accounting records
  • Segregation of Duties – such as asigning the responsibility for authorizing transactions, recording transactions and maintaining custody of assets to different people within the organization
  • Identify types of potential misstatements
  • Consider factors that affect the risk of material misstatement
  • Design tests of controls where applicable
  • Design substantive tests
  • Compliance with Laws and Regulations
  • Single Audits
Karin for the blog

Leave a Reply