4.5. SR 10-04-2021 - Laserfiche WebLink

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PROPOSAL PREPARED ESPECIALLY FOR CITY OF ELK RIVER, MINNESOTA AUDIT APPROACH AND TIMELINE (CONTINUED) PHASE TWO - AUDIT PROGRAM EXECUTION Project execution is performing the procedures outlined in your audit plan as developed in Phase One. Our audit procedures will include examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. We will discuss potential ideas and best practices with your personnel relating to our recommendations for improving internal control, procedures and compliance with laws and regulations. Any issues identified, proposed audit adjustments, or other recommendations will be discussed with management throughout the execution of our audit procedures. We perform test work with as little disruption as possible to City staffs regular duties. Highlights of this phase include: • Auditing year-end account balances, testing internal control, assessing compliance to determine if your systems and controls are functioning as designed. • Using sampling techniques to test areas including transactions, internal controls and legal compliance using the scope mandated by the Office of the State Auditor. Sample sizes range from 25-60 based on our risk assessment. • Using IDEAS data mining software, we look for trends and anomalies in your payroll, vendor payment, and cash receipts process. Hours: Partner — 8, Manager — 8, Supervisory Staff — 40, Staff — 85 Your Expected Role: Be available to answer questions during scheduled audit fieldwork, provide audit workpopers or reconciliations with documentation that is reasonable and reviewed during Phase One. PHASE THREE - POST -AUDIT CRITIQUE AND EXIT CONFERENCE This phase of the audit includes reviewing all the components of the financial statements and prepare the communications letter and relevant financial trend data for the Board presentation. Finally, opinions on the financial statements, Government Auditing Standards and Single Audit, if required, will be prepared. We will then present this information to management allowing you time to review the financial statement reporting package including the draft financial statements and any internal control findings or recommendations that arise during the audit. This phase allows you time to assess, discuss and develop a corrective action plan, if needed. Hours: Partner —16, Manager— 20, Supervisory Staff —10 Your Expected Role: Review preliminary reports to provide BerganKDV with input and feedback. 18 1 PAGE BERGANKDV, LTD. 1 BERGANKDV.COM I DO MORE.