TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Financial Audit and Audit Engagement Letter for FY 2018-19
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving Financial Audit Plan and Audit Engagement Letter for the Fiscal Year Ending June 30, 2019.
Body
BUDGETARY/FISCAL IMPACT:
There is no budgetary or fiscal impact.
BACKGROUND/RATIONALE:
In accordance with Board Policy No. 340, Accounting Policy, Crowe LLP, an independent firm, will perform the annual financial audit for the year ending June 30, 2019. Upon completion of their fieldwork, Crowe LLP will issue an opinion, which will be incorporated into the Comprehensive Annual Financial Report (CAFR) of the District.
Crowe LLP and District staff held the entrance conference meeting on June 10, 2019, and discussed new audit issues relevant to the current fiscal year, the potential impact of upcoming GASB pronouncements, and the following audit plan elements:
* Timeline
* Client Participation Schedule
* General Matters
As part of the audit planning process, the independent accounting firm reviews the scope of the audit with the Board of Directors. This discussion includes a review of the adequacy and effectiveness of the systems of internal controls over financial reporting and any significant changes in those controls; accounting practices, disclosure controls and procedures of the entity and current accounting trends and developments.
Attached to this report is the required communications letter and Audit Plan from Crowe LLP for the District's FY 2018-19 audit engagement. As required by professional audit standards, this letter contains communications that are mandatory between the independent auditor and the auditee on an annual basis. Crowe LLPs will begin the interim portion of the audit engagement on June 10, 2019 and will conclude their fieldwork by June 21, 2019. The audit team will return for approximately four weeks to complete their final...
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