Joyce and Company, CPA Proposal to Town of Sharpsburg FIRST SECTION Joyce and Company, CPA Proposal to Town of Sharpsburg TABLE OF CONTENTS Section I Firm Profile 3 Engagement Staffing 3 Governmental Experience 3-4 Additional Professional Services 4 Quality Control Programs 4 Partner Qualifications and Experience 4-5 Educational Background and Continuing Professional Education 5 Professional Experience 6 Specialized Skills and Training 6 Referençes 6 Professional Independence Standards 6-7 Insurance 7 Regulatory Action 7 Local Government Commission and UNC-CH School ofGovernment 7 Section II: Cost Estimates 2-5 2 1. FIRM PROFILE Joyce and Company, CPA is an equal opportunity employer located in Cary, NC. 2. ENGAGEMENT STAFFING The engagement team for the audit will consist of the following: Partner - 2 Staff- 2 Clerical - 1 D. Keith Joyce and Shelton Ennis will be the Town's S primary contacts in dealing with audit related matters. At least one of these individuals will be on site during at least 90% oft the time fieldwork is being performed. 3. GOVERNMENTAL EXPERIENCE Town of Knightdale Financial Audit, Single Audit, assisted in obtaining GFOA Certificate of Achievement for Excellence in Financial Reporting. Assisted in preparing first GASB 34 CAFR submitted in North Carolina. This unit has a water/sewer enterprise fund with related capital projects. See Note below. (25+ years of service.) City ofSanford Financial Audit, Single Audit, assisted in obtaining GFOA Certificate of Achievement for Excellence in Financial Reporting. (6 years of service.) Town of Broadway Financial Audit. This unit has a water/sewer enterprise fund. (6 years of service.) Town of Apex (not a current client) Financial Audit, Single Audit, Special work as requested, assisted in obtaining GFOA Certificate of Achievement for Excellence in Financial Reporting. This unit has both water/sewer and electrical enterprise funds with numerous related capital projects. (30+ years' service.) Town of Morrisville (not a current client) Financial Audit, Single Audit, Special work as requested, assisted in obtaining GFOA Certificate of Achievement for Excellence in Financial Reporting. This unit has a water/sewer enterprise fund with related capital projects. See Note below. (25+3 years' service.) Town of Wake Forest (not a current client) Financial Audit, Single Audit, assisted in obtaining GFOA Certificate of Achievement for Excellence in Financial Reporting, Special work as requested. This unit has both water/sewer and electrical enterprise funds with numerous related capital projects. See Note below. (25+ years of service.) 3 Town of Selma (not a current client) Financial Audit, Single Audit, Special work as requested. This unit has both water/sewer and electrical enterprise funds with numerous related capital projects. (11 years of service.) Town of2 Zebulon (not a current client) Financial Audit, Single Audit, assisted in obtaining GFOA Certificate of Achievement for Excellence in Financial Reporting, Special work as requested. See Note below. (18 years of service.) NOTE: Three of these towns have completed mergers of their water sewer systems with other local town/cities and at this point have only the prior existing debt service of their water/sewer systems or have outstanding capital projects that are still to be completed and transferred. 4. ADDITIONAL PROFESSIONAL SERVICES Town of Apex Clean water bond grants and other grant audits prior to Single Audit Act. Special work involving misappropriation of funds - 1988. Assistance in calculating infrastructure values - 2003. Town of Knightdale Assistance in calculating infrastructure values - 2002. Review of water/sewer system financials and assistance with transfer of system to Town of Raleigh - 2006. Town ofZebulon Assistance in calculating infrastructure values - 2003. Review ofwater/sewer system financials and assistance with transfer of system to Town of Raleigh - 2006. 5. QUALITY CONTROL PROGRAMS We are involved in the American Institute ofCertified Public Accountants quality review program. Our firm had its most recent on-site quality review for the year ended May 31,2 2018. Our quality review report indicated that our firm met the objectives of quality control standards established by the. AICPA. Our next peer review is scheduled to take place June 28, 2021. Our firm is a member of the AICPA's Governmental Audit Quality Center. The Center membership provides us timely information on a variety oftechnical, legislative and regulatory subjects that we can in turn apply to your audit to help ensure compliance with the appropriate standards and changes in regulations. D. Keith Joyce has been named the firm's designated partner in charge ofe ensuring the quality of our governmental audit services, including our services performed under Government Auditing Standards and OMB Circular A-133. 6. PARTNER QUALIFICATIONS AND EXPERIENCE Years/Position Staff Position Experience on each Audit D. Keith Joyce, CPA Twenty-six years' experience All Towns Partner as staff, senior, manager and Partner - 2000 - 2021 NC License # 25336 partner of governmental Manager - 1998, 1999 audits. Senior - 1997 4 Staff - 1995 - 1996 Keith Joyce will be onsite 50% of time. Shelton Ennis, CPA Fifteen years' experience as All Towns Partner staff, senior, manager, and Partner 2013 - 2021 NC License # 32251 partner of governmental Manager 2010-2012 audits. Senior 2008 - 2009 Staff2007 Shelton Ennis will be onsite 50% oft time. 7. EDUCATIONAL BACKGROUND AND CONTINUING PROFESSIONAL EDUCATION D. Keith Joyce Background - Graduate ofUniversity ofNorth Carolina - Chapel Hill 26 years with local firm (partner since 2000) 26 years ofmunicipal audit experience Government Related CPE - 147 hours of continuing education credits over last three years. 120 of these hours considered audit enhancing, 64 related specifically to governmental and non-profit auditing Shelton Ennis Background- Master of Accounting University ofNorth Carolina - Chapel Hill 13 years with local firm 2 years with regional firm 15 years of municipal audit experience, 15 years total audit experience Government Related CPE - 158 hours of continuing education credits over last three years 126 of these hours considered audit enhancing, 64 related specifically to governmental and non-profit auditing All staff accountants assigned to local government engagements have acquired their Bachelor 's degree and are have also obtained their CPA certification or are currently working towards meeting the requirements to achieve CPA certification. All staff are required to complete 40 hours ofaudit enhancing CPE annually with 24 in each two-year period being qualified for yellow book credit. All staff assigned to this engagement will also be working on other local government engagements ofthe firm. The firm's normal policy is to rotate between engagements working one or two days each week once fieldwork has begun on each particular engagement. This allows Town staffto work on their normal day to day activities other than the audit as well as providing time to pull invoices and other materials selected in various audit areas. 5 8. PROFESSIONAL EXPERIENCE Each of the individuals have been involved in the annual audits of each of our municipal clients in each year those engagements were performed. The following list the governmental units with specific proprietary funds or stormwater functions that each of our municipal engagements involve. Town of Apex Electric and Water/Sewer Proprietary Fund Types Town of Broadway Water/Sewer Proprietary Fund Types Town of Knightdale Water/Sewer Proprietary Fund Types, Stormwater function Town of Zebulon Water/Sewer Proprietary Fund Types, Stormwater function City of Sanford Water/Sewer Proprietary Fund Types All professional staff are members of the AICPA and all certified public accountants on staff are members of1 the North Carolina Association of Certified Public Accountants. Our governmental services consist of performing GAAS audits, performing agreed-upon procedures, advising clients on implementation of new accounting pronouncements, and providing assistance in writing comprehensive annual financial reports. 9. SPECIALIZED SKILLS AND TRAINING D. Keith Joyce: Active membership in various community organizations. Shelton Ennis: Active membership in various community organizations. 10. REFERENCES Town of Apex Vance Holloman, Finance Director P.O. Box 250 Telephone Number: (919) 249-3315 Apex, NC 27502 Email: vaseholoman@arancor Town ofKnightdale Bill Summers, Town Manager 207 Main St., P.O. Box 640 Tim Flora, Finance Director Knightdale, NC 27545 Telephone Number: (919) 217-2210 Email: m.fen@ishéalemeoy Town ofZebulon Joe Moore, Town Manager 1001 N. Arendell Ave. Bobby Fitts, Finance Director Zebulon, NC 27597 Telephone Number: (919) 823-1805 Email: imQlomofrehulon.org 11. PROFESSIONAL INDEPENDENCE STANDARDS We meet professional independence standards by not being involved in local politics and by not holding public office with any governmental unit. All firm staff submit annual independence statements to the managing partner which require disclosure of any possible independence issues with clients, in either fact or appearance. Any staff with a possible independence conflict are excluded from participation ofwork with these specific clients. 6 In addition, the Firm evaluates non-audit services provided to all attest clients including those under Government Auditing Standards to identify threats to independence and establish proper safeguards where threats are identified. (See attached excerpt from employee handbook) 12. INSURANCE We are covered under professional liability with CPA Mutual Insurance in the amount of $1,000,000 per claim and $2,000,000 in the aggregate, 13. REGULATORY ACTION There has been no regulatory action taken against our Firm. 14. LOCAL GOVERNMENT COMMISSION OF NORTH CAROLINA AND UNIVERSITY OF NORTH CAROLINA = CHAPEL HILL SCHOOL OF GOVERNMENT Our firm has frequent interaction with the NC Local Government Commission and the UNC School ofGovernment including seeking guidance for technical compliance with auditing standards and GAAP as well as attending professional eduçational training. Submitted this 15th day of June 2021. 4 Kaik ap Aunibl D. Keith Joyce, President Joyce and Company, CPA 7 KWH Koonce, Wooten & Haywood, LLP CERTIFIED PLBUC ACCOUNTANTS Report on the Firm's System of Quality Control To the Partners ofJoyce and Company, CPA and the Peer Review Committee, North Carolina Association Of Certified Public Accountants We have reviewed the system of quality control for the accounting and auditing practice of Joyce and Company, CPA (the firm) in effect for the year ended May 31, 2018. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board oft the American Institute of Certified Public Accountants (Standards). A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at wwwaispiorpaummar The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating. Firm's Responsibility The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, ifany. Peer Reviewer's Responsibility Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards, including a compliance audit under the Single. Audit Act. As part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures. Opinion In our opinion, the system of quality control for the açcounting and auditing practice ofJoyce and Company, CPA in effect for the year ended May 31, 2018, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiencylies) orj fail. Joyce and Company, CPA has received a peer review rating of pass. + Koma, Wolan Hoyndy - LLP Koonce, Wooten & Haywood, LLP July 12, 2018 Raleigh Durham Pittsboro 4060 Barrett Drive 3500 Westgate Drive 10 Sanford Road Post Office Box 17806 Suite 203 Post Office Box 1399 Raleigh, North Carolina 27619 Durham, North Carolina 27707 Pittsboro, North Carolina 27312 919 782 9265 919 354 2584 919 542 6000 919 3937 FAX 919 489 3183 FAX 919 542 5764 FAX SECTION II - CLIENT RELATIONSHIPS II.1 Independence All employees must adhere to the independence rules, regulations, interpretations, and rulings of the AICPA, state CPA society, state Board of Accountancy, state statutes and regulatory agencies under which we practice. You are responsible for being familiar with our clientele and for informing the partner(s) of any potential conflicts ofinterest. The partner(s) will resolve questions relating to independence. For audit engagements that fall under the 2018 revision of Government Auditing Standards, firm personnel shall identify and evaluate threats to independence, including providing nonaudit services to audited entities. Appropriate safeguards shall be applied to eliminate threats or reduce them to an acceptable level. Identified threats and safeguards should be reevaluated whenever firm personnel become aware of new information or changes in facts and circumstances that could affect whether a threat has been eliminated or reduced to an acceptable level. If, for any reason, the Firm's independence is impaired, our Firm is limited to issuing only a "compilation" report regardless of the extent of our examination. In addition, our compilation report must state that we are not independent. Therefore, if you are not certain about your independence, discuss any questions with the partner in charge of the engagement or with the managing partner before proceeding with the assignment. When your questions are resolved, you may certify your independence as it relates to our client list. II.2 Conduct at the Client's Office Whenever possible, staff members should do client's work at the client's office. Please adhere to the following rules affecting client relationships: Adjust your working hours to fit the client' S schedule. Plan to arrive at the client' S normal opening hour and remain until normal closing time. Avoid discussing: Client business or other matters in public places or with friends or relatives. Internal matters about our Firm with client personnel. Technical matters and controversies in the presence of client personnel. Personal matters with client personnel. The work, fees or other characteristics of other accounting firms. Controversial subjects with client personnel. 9 Joyce and Company, CPA's Proposal to Town of Sharpsburg SECOND SECTION Cost Estimate AUDIT APPROACH We use standard government audit programs provided by Practitioners Publishing Company. Using our professional judgement, statistical sampling is applied if alternative audit approaches are not satisfactory to test accounts that exceed tolerable misstatement, which is generally not necessary under most circumstances in a government audit. We have not found a need on our past governmental audit engagements to require the use of a computer audit specialist and do not anticipate this need on your engagement. The necessity for this would arise if evidence of fraud becomes available or there are substantial computer generated irregularities. We will test internal controls using a three-year rotation method which requires testing all material controls at least every three years. When there are material exceptions to internal controls noted, more frequent testing of these areas will be required until these exceptions are corrected. AUDIT TEAM There will be two partners and two staff accountants assigned to the audit. The firm's normal policy is to rotate between engagements working one or two days each week once fieldwork has begun on each engagement. This allows Town staff to work on their normal day to day activities other than the audit as well as providing time to pull invoices and other materials selected in various audit areas. The percentage of audit time performed at each stafflevel is anticipated to be as follows: Partner 50% Staff 40% Clerical 10% MANAGEMENT LETTER The management letter will include recommendations and findings related to the Town of Sharpsburg'ss system ofinternal control as well as suggestions that we believe would improve and enhance the Town' S accounting functions. ASSISTANCE FROM TOWN STAFF Town staff will be expected to pull all required invoices needed for testing, prepare confirmations as deemed necessary, and be available for inquiries on days auditors are scheduled onsite. TENTATIVE SCHEDULE FOR COMPLETING THE AUDIT Our firm would anticipate beginning preliminary audit work approximately June 30, 2021 and begin our detailed audit work as soon as your records are available, but no later than August 30, 2021. An agreed-upon post-closing trial balance will be completed prior to September 30, 2021 and we anticipate completing a draft ofyour financial statements by October 15, 2021. We anticipate issuing our opinion and delivering the financial statements to the Local Government Commission on or before October 29, 2021. 2 COST ESTIMATE Base Audit Fee-Fiscal year ending June 30, 2021 (Not to exceed price) $18,750 Note that the above price will reflect an additional cost of$1,000 if a Single Audit is required. Basis of Cost Estimate: The following is our estimate of the hours and cost for the audit for fiscal year ending June 30, 2021. A. Personnel costs Hours StaffLevel Interim Year-end In Cary Total Rate Total Costs Partner 20 30 40 90 $165.00 $ 14,850.00 Staff. Accountants 20 20 20 60 90.00 5,400.00 Clerical 20 20 76.00 1,520.00 Total based on stafftime 21,770.00 Incidental Costs (Non-allocated Travel, Binding, etc.) -0- Anticipated discount (3.020.00) Total Inclusive Not-to-Exceed Contract Price $ 18,750.00 B. Travel Joyce and Company, CPA does not bill separately for travel costs. These charges are included in our all-inclusive price. Staff travel time during our normal business day is charged to the Town as part of our estimated time. Staff travel time outside of our normal business hours is included in our all-inclusive price at a rate of one half the actual time involved. C. Cost of supplies and materials Joyce and Company, CPA does not bill separately for cost of supplies and materials. These amounts are: included in our all-inclusive price. D. Other Costs Joyce and Company, CPA does not anticipate any other costs. However, any other special services which the Town may require during the year, outside the scope oft the audit, will be billed at our quoted hourly governmental rates below. 3 SUMMARY OF AUDIT COSTS SHEET (Per Year) THREE-YEAR CONTRACT Firm: Joyce and Company, CPA Binding Estimate Estimate FY 2021 FY2022 FY 2023 Base Charge - Financial Audit $ 16,500 $ 17,000 $ 17,500 Financial Statement Preparation 2,250 2,250 2,250 Total (Not-to-Exceed) $ 18,750 $ 19,250 $ 19,750 Method for determining audit cost estimate after first year: The fees for services in the future years and to future Governing Boards will be based on our standard governmental rates in effect for each oft those years with a total contract amount quoted in advance. This not to exceed amount will be calculated using actual time needed for the audit in the prior year and taking into effect other factors such as changes in items falling under the single audit, actual and anticipated Town growth, the amount of assistance in workpaper preparation provided by Town staff, cost of living increases and any complexities in the audit which were encountered in prior years, but which are expected to affect future year audits. Our hourly rates are as follows in determining fee quotes for the three-year period: June 30, 2021 June 30, 2022 June 30, 2023 Partner $165.00 $168.00 $172.00 Staff 90.00 92.00 94.00 Clerical 76.00 78.00 80.00 4 PROPOSAL CERTIRICATION Proposers lad Signature fy PA Date GISAI By Signing above, I certify that I have carefully read and fully understand the information contained in this RFP; and that I have the capability to successfully undertake and complete the responsibilities and obligations of the Proposal being submitted and have the authority to sign Proposal on behalf of my organization. BY: D. Keith Joyce, CPA TITLE: Managing Partner COMPANY: Joyce and Company, CPA ADDRESS: 104 Brady Court, Cary NC 27511 TELEPHONE: (919) 466-0946 EMAIL: ketthyoyce@,oyeeandcompanycpa.com 5 PROPOSAL CERTIFICATION Proposers Signature Date