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Rethmeier, Joyce, CPA/Washington St. Apts 16cu OF MEMORANDUM TO: Frank J. Spevacek, City Manager FROM: Teresa Thompson DATE: June 22, 2016 RE: Joyce E. Rethmeier, Audit Engagement Letter for Washington Street Apartments AGR 2016-0030 Attached for your signature is the Audit Engagement Letter/Agreement with Joyce E. Rethmeier for audit services required by Rural Development. Please sign the attached agreement(s) and return to the City Clerk for processing and distribution. `4 La Quinta Housmq-Author*ft-'%,j Ms. Joyce E. Rethmeier 345 W. 9th Avenue, Suite 202 Escondido, CA 92025 ® Professional Services Contract Joyce E. Rethmeier Professional Services Contract Page 2 of 4 Agreement, -Consultant shot[ procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, Errors & Omissions Liabitity Insurance agai t alt ctaims for injuries resulting from ConsuIt t®s acts or omissionsarising related Consultant's performance of the Servicesr this Agreement. Thefollowing i_ - lici s shall be maintainedin futt force and effect providing _ insurance wi i i limits as indicated l issued insurers A.M. Bes Company ratings less t I® Errors & Omissions i ii ty $500,000r claim) Professional Liability or Errors Be Omissions insurance as appropriate shall be written policy formcoverage speciic It si to protecti cs, errors or omissions of the consultant "Covered s i Services" as designated in the policyspecificaily inctude workr r this agreement, The policyi it shall be no Less than r claim. is s "pay on behalf °° the insured and must Include a provision s li i insurer's to defend. The policyretroactive date shall be on r before the effectiveis agreement. Ail insurance required is Section shall be kept in effectduring r is Agreementshalt not be cancelabie without written noticeto Authorityproposed cancellation. i such insurance or the deliverypolicies or certificates evidencing the same shall not be construed s a Limitation of Cons !t °s obligation indemnify ri , its officers, employees, contractors, c tr c s, or agents. To the fullest xtent permitttaw, Consultantshall indemnify, defend, and hold harmless ri ri °s agents, officers, officiaLs, employees, representatives, and is ("Indemnified Partis") from and against1! claims, losses, liabilities of everykind, nature and description, damages, injury, costs and expenses of any i, whether, alleged or threatened, including, ilimitation, ici t and consequential damages, court costs, t r s' fees, litigation x s s, and fees of expert consultants r expert witnessesincurred in connection r i costs of investigation, that rise out of, pertain to, or relate it ct r indirectly, in wholein part, the negLigence, recklessness, or wILLfuL misconduct of Consultant, anyone directlyr indirectly employedn control. In the event the Indemnified Parti s_are made a party to any action, lawsuit, - r other adversarial roc i in any way involving suc l i s, the ConsultantIt provide defense the Indemnified Parti s, or at the Authority's option, reimburse the Indemnified Parties their costs se, including reasonable attorneys' fees, incurred in defenseo Joyce E. Rethrneier Professional Services Contract June 1® 2016 Page f such claim, In additionthe Consuitant shall be obligatedto promptly pay anyfinal judgment or portion thereof renderedagainst iieParties. The _ Authority ay at any time, for any reason_ with _r without cause ss_e_ rterminate is agreement upon the issuance of a to (10) day notice by the Authority.receipt such tic e the Consultantll cease ll work under this Agreement. The Authorityshalt pay the Consultant for services r the timer i i t r products shall be providedo the Authority. This Agreement shall commence__ _tJuly 1® 2016_ and shall remain and continue in effect til the Services are completedr it is terminated, t no later a r 30, 2016, without ritten approval of the Executive Director. Shouldyou _ find this Agreement acceptable, a signboth originalcopies where_ indicated belowreturn to me. An original fulLy-executed copy of this Agreement will be forwardedto you. _Sincerev® Digitally signed by Frank J. Spevacek DN: senalNumber=g8z17zn0v50w4d3x,.... -US, st=California, I=La Quinta, o=Frank J. Spevacek, cn=Frank J. Spevacek (_. Date: 2016,07.06 14:57:38 -07'00' Frank J. Spevacek, Executive Director APPROVED AS TO FORM: ATTEST: Digitally signed by Susan Maysels DN: serial Number=j4r7lllg1 ppsr45f, c US, st=California, I La Quinta, o—Susan Maysels, cn=Susan Maysels Date: 2016,07.06 15:24:36-07'00' LLI Housing u on _ Counsel Housingon _ Secretary ACCEPTED:AGREED AND _Tr F Jl� Em ethrr�ei�r Joyce E. it Professional vi s Contract Page 4 of 4 ATTACHMENT 1 E. RETHMEIER CERTIFIED LIACCOUNTANT May 01, 2016 r. Frank J. Spevacek City Manager City of La Quinta 795 Calls Tampico La Quinta, CA 92253-2839 DearFrank: I am leased to confirm understanding of the services I am to provide for Washington Street Apartments (an elderly housing development owned by La Quinta Housing Authority) for the year ended June 30, 2016. 1 will audit the financial statements of WashingtonStreet Apartments, which comprise the statements of financial position as of June 30, 2016, and the related statements of activities and cash flows forte year then ended, and the related notes tot e financial statements. Also, the schedule of expenditures of federal awards and the supplementary financial information accompanying the financial statements required by the Department of Agriculture, Rural Development will be subjected to the auditing procedures applied in my audit of the financial statements and certain additional roce ures, including comparing and reconciling such information directly tote underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, in accordance with auditing standards generally accepted in the United States of America and my auditor's report will provide an opinion on it in relation tot e financial statements as a whole. AUDIT OBJECTIVES The objective of my audit is the expression of an opinion about whether the financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepts accounting principles and to report on the fairness of the supplementary information referred to in the first paragraph when considered in relation tote financial statements taken as a whole. e objective also includes reporting on: Internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts and award agreements, noncompliance with which coin have a material effect on the financial statements in accordance with Government Auditing Standards. Internal control over compliance relate... to major programs and an opinion (or disclaimer of opinion) on compliance with federal statutes, regulations, and the terms an condition s of federal awards that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 196 and 'Title 2 U.S. i Code of Federal Regulations (C ) Part 200, Uniform Administrative Requirements, i Cost Principles, and Audit Requirementsfor Federal Awards (Uniform dance). 345 W. 91h Ave., Suite 202, Escondido, CA 92025 Tel (760) 2 - 24 Fax (760)233-2166 Member of American Institute of Certified Public Accountants California Society of Certified Public Accountants The Government Auditing Standards report on internal control over financial reporting and can compliance and other matters will include a paragraph that states (1) the purpose of the report is solely to describe the scope of testing of internal control and compliance and the results oft at testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance, an (2) that the report is an integral part of an audit performed in accordance with Government auditing standards in considering 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 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. y audit will be conducted in accordance with auditing standards generally accepted in the United States of erica; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United Staten the Single Audit Act Amendments of 1996; and the provisions of Uniform ui ance, and will include tests of your accounting records, a determination of major program(s) in accordance with Uniform Guidance, and other procedures I consider necessary to enable me to express such opinions. I cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for me to modify my opinion or add an emphasis -of -matter or other - matter paragraph. If my opinion on the financial statements or the Single Audit compliance opinions are other than unmodified, will discuss the reasons with you in advance, If, for any reason, I a unable to complete the audit or am unable to form or have not formed an opinion, I may decline to express an opinion or to issue a report as a result oft is engagement. AUDIT PROCEDURES- GENERAL An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, my 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 financial statements. I will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors; () fraudulent financial reporting, () misappropriations of assets, or () violations of laws or governmental regulations that are attributable to Washington Street Apartments or to acts by management or employees on behalf of WashingtonStreet Apartments. Because the determination of abuse is subjective, Government Auditing standards do 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 I will not perform a detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by me, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing standards, In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or on major programs. However, I will inform the appropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to my attention. I will also inform the ,2- appropriate level of ana e ent of any violations of laws or governmental regulations that come to my attention, unless clearly inconsequential and of any material abuse that comes to my attention. I will include such matters in the reports required for a Single Audit. My responsibility as auditor is limited to the period covered by my audit and does not extend to any later periods for which I am not engaged as auditor, y procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include direct confirmation of cash, receivables, loan balances, and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors and financial institutions. At the conclusion of my audit, I 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 generally accepted auditing standards. AUDIT PROCEDURES- INTERNAL Id My audit will include obtaining n 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 I consider relevant to preventing an detecting errors and fraud that are material tote 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. My tests, if performed, will be less in scope than would be necessary to render an opinion on the internal control and, accordingly, no opinion will be expressed in my report on internal control issued pursuant to Government Auditing Standar°ds, s required by the Uniform (guidance, I will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that I consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program.However, my 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 my report on internal control issued pursuant tot e Uniform Guidance. An audit is not designed to provide assurance on internal control or to identify significant efficiencies or material weaknesses. However, during the audit, I will communicate to you and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and the UniformGuidance. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, I will perform tests of Washington Street Apartments compliance with applicable laws, regulations, contracts, and agreements, including grant agreements. owever, the objective ofthose procedures will not be to provide an opinion on overall compliance, and I will not express such an opinion in my report on compliance issued pursuant to Government Auditing Standards, UniformThe - requiresand perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major rams. My procedures will consist of tests +► applicable proceduress described in the OMB complianceCompliance Supplement for the types of proceduresmaterial effect on Washington Street Apartments major programs, The purpose of these b:`! express an opinion on `#Apartments requirements applicable to each of its major programs in my report on compliance issued pursuant tothe UniformGuidance. Management is responsible for (1) 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 et; (2) following laws an regulations; (3) ensuring that there is reasonable assurance that government programs are administered in compliance with compliance requirements; an () ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application o accounting principles; for the preparation and fair presentation of the financial statements, schedule of expenditures of federal awards, the supplementary information required y the Department of Agriculture, Rural Development, and related notes in conformity with °. generally accepted accounting principles; and for compliance with applicable laws and regulations (including federal statutes) and the provisions of contracts and grant agreements (including award agreements). Management is also responsible for making all financial records and related information available to me and forte accuracy and completeness of that information. You are also responsible for providing me with (1) access to all information of which you are aware that is relevant tote preparation and fair presentation of the financial statements, (2) access to personnel, accounts, books, records, supporting documentation, and other information as needs to perform an audit under the Uniform guidance, (3) additional information that we may request for the purpose of the audit, an () unrestricted access to persons within the entity from who we determine it necessary to obtain audit evidence, Your responsibilities also include identifying any significant contractor relationships in whip the contractor has responsibility for program compliance and for the accuracy and completeness of thatinformation. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated y us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible forte design and implementation of programs and controls to prevent and detect fraud, and for informing me about all known or suspected fraud or illegal acts affecting WashingtonStreet Apartments involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing me of your knowledge of any a i 4 allegations of fraud or suspected fraud affecting Washington Street Apartments received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws, regulations, contracts, agreements, and grants. Management is also responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provision of lags, regulations, contract, and grant agreements, or abuse that I report. Additionally, as required by the Uniform Guidance, it is management's responsibility to follow up and take corrective action on reports audit findings and to prepare a summary schedule of prior audit findings and a corrective action plan. The summary schedule of prior audit findings should be available for my review on August 20, 216. You are responsible for identifying all federal awards received and for understanding an 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 my report on the schedule of expenditures of federal awards in any document that contains and indicates that I 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 my report thereon, Your responsibilities include acknowledging to me in the representation letter (1) that you are responsible for presentation of the schedule of expenditures of federal awards in accordance with the Uniform Guidance; (2) that you believe the schedule of expenditures o federal awards, including its form and content, is stated fairly in accordance with the Uniform Guidance; (3) that the methods of measurementor presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and () you have disclosed to me any significant assumptions or interpretations underlying the measurement or presentation oft e schedule of expenditures of federal awards. You are also responsible for the preparation of the other supplementary information, which have been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree to include my report on the supplementary information in any document that contains, and indicates that I have reported on, the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes my report thereon. Your responsibilities include acknowledging to us in the representation letter () that you are responsible for presentation of the supplementary information in accordance with ; (2) that you believe the supplementary information, including its form and content, is fairly presented in accordance with ; (3) that the methods of measurement or presentation have not changed o those used in the prior period (or, if they have changed, the reasons for such changes); and () you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information, Management is responsible for establishing and maintaininga process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for me previous financial audits, attestation engagements, performance audits or studies related to the objectives discussed in the Audit Objectives section oft is letter. This responsibility includes relaying to me corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. You are also responsible for providing management's views on our current findings, conclusions, an recommendations, as well as your planned corrective actions for the report, and for the timing and format for providing that information. _5 ADMINISTRATION,AUDIT understand that your employees will locate any documents selected y me for testing _. ." r Y, �, r,,% • r � it _. r � 't" � r� . r �r � r ►. y �, •Y r .r The audit documentation awarereport release or for any additional period requested by Department of Agriculture, Rural Development. If I am that a federal finding,contesting an audit r prior to destroyingr - r Joyce E. Rethmeier is the engagement partner and is responsible for supervising the engagement in June 2016 and and signing the reports or authorizing another individual to sign them. I expect to begin my audit 1 estimate that my fees for these services will be $ based on anticipated cooperation r personnel and theunexpected encountered circumstances will not be during the audit. If significant additional time is necessary, I will discuss and arrive at a new fee estimate before we incur the additionalinvoice services will rLL rendered * completion* Governmentalgement. 11 Auditingrequireprovide you with a copy of my most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. My 2014 peer review report ?ccompanies - t6a appreciate the opportunity to be of service to Washington Street Apartments and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let me know. If you agree with the ternis of our engagement as described in this letter please sign the enclosed copy and return it to me. Very_ truly yours, ,oyce Ea Rethmeier Certified u is Accountant RESPONSE:__ This letter correctly sets forth our understanding. Washington Street Apartments, (an elderly housing development owned by La Quinta Housing Authority) Approved y. Title: - Date: cc: Hyder & Company 1649 Capalina Road,Suite 500 San Marcos, CA 92 - 226 -7- sociates 3286 E. Guasti Road, Suite 130 Ontario, CA 91761 -- Phone: (909) 7 1- 6443 : (949) 476- 7390 v .Suola a . System Review Report June 5, 201 o Joyce E. Rethmeier, CPA and the Peer Review Committee of the California Society of CPAs e have reviewed the system of quality control for the accounting u it' practice of Joyce E. Rethmeier, CPA in effect for the year ended December 31, 2013. eereview a conducted i accordance with the Standards fox, Perfonning and Reporting on Deer Reviews s established by the peer Review Board of the American Institute of Certified Public Accountants, As a part ofour peer review, we considered reviews by regulatory entities, if applicable, in datennining the nature and extent of our procedures. The firm is responsible for desigmng a system of quality control and complying with it to provide the firm with reasonable assurance of perfortning and reporting in conformity with applicable, professional standards in all material respects. Our responsibility is to express an opinion oil the design of the system of quality control and the firni's compliance therewith based on our review. The nature,; objectives, scope, limitations of, and the proceduresperformed in a System Review are described in the ; standards at ®aic a or s required by the standards, engagements l t or review 1 cl e engagement s e o er Government Auditing n our i °a the system of quality control for the accounting and auditing practices of Joyce E. et Bier in effect for the year ended December 31, 2013, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable ro e sic 1 standards in all material respects. Finns can receive a rating fpa a s with e ieney(i ) or fail. Joyce E. Rothmeier has received a hoer review rating of pass. Associates ® Date Initial Filing Received STATEMENT OF ECONOMIC INTERESTS a ored"j) Use only eCOVER PAGE Please type or print in ink. NAME OF FILER (LAST) (FIRST) (MIDDLE) RETHMEIER J e ' _ _p ,Agency, or Court Agency Narne (Do not use acronyms) CITY OF LA T ivision, Board, Department, District, if applicable Your Position _ STREET) T I I ACCOUNTANT DEPARTMENT I (WASHINGTON If filing for multiple positions, list below or ®n an attachment (Do not useacronyms) Agency:Position: 2. Jurisdiction of O_. (Check at least one x State El Judge or Court Commissioner (Statewide Jurisdiction) El Multi -County El County of City of L I Other p Type of Statement (Check least a x Annual: The period coveredis January 1, 2015, through a in Ice: ate Left December 1, 201& (Check one) -or- The period coveredis through The period coveredis January 1, 2015, through the data of December 31, 2015. leaving r� El Assuming OfIce, ate assumed 0 The period coveredis i through e date of leaving office. Candidate: Election year and office sought if different than Pad 1: OCAMICO CAMICO MUTUAL INSURANCE COMPANY DECLARATIONS ACCOUNTANTS PROFESSIONAL LIABILITY INSURANCE POLICY Policy Number: CAL05179-23 Effective Date: 01/01/2016 at 12:01 A.M. Standard time at the address shown below Expiration Date: 01/01/2017 at 12:01 A.M. Standard time at the address shown below Retroactive Date: 12/01/1993 Item I -Named Insured: Joyce E. Rethmeier, CPA Item 2 - Business Address: 345 W. 9th Ave., Suite 202 Escondido, CA 92025 Item 3 - Limits of Liability: $500,000 Per Claim $500,000 Policy Aggregate Item 4 - Deductibles: $2,500 Per Claim Deductible Item 5 - Total Premium: $3,504 Item 6 - The policy consists of this Declarations page, and the following policy forms and endorsements: PL- I 000-A 07/14 Accountants Professional Liability Insurance Policy PL-2001-A (CA) 07/14 State Endorsement - California PL-1007-A 07/14 Exclusion - Claims Following Insureds Suit for Fees PL-1009-A 07/14 Exclusion for Services Rendered in Another Capacity PL-1045-A 07/14 Cyber CPA Endorsement PL-1049-A 07/14 Privacy and Client Network Damage Endorsement PLEASE READ THESE DECLARATIONS, THE POLICY AND ENDORSEMENTS CAREFULLY. CAMICO Mutual Insurance Company Authorized Representative PL-1001-A (rev. 06/13) WORKERS COMPENSATION AND EMPLOYERS LIABILITY PGL-,JcY INFOR;ATIOr j E PAC ENIDORSEMENT PAGE 01 THIS FORMS A PART OF COVERAGE IS PROVIDED BY 12-8675-FB2F POLICY NO. 90-CH-K233-5 STATE FARM FIRE AND CASUALTY COMPA14Y P,OBOX 799100, DALLAS TX 75379-9100 NAMED iNSURED A,'JID iMAILING ADDRESS RETHMEJER, UOYCE FEIN 330559043 D3' jOYCE E RETHMEIER CENTIPIED PUSLIC ACCT 345 W 9,'H AVE STE 202 ESCCNDIDO CA 92025-50S5 DUE 10 AN AUDIT THE &FECTIVE DATE IS 04/01/2016 THE EXPIRATI,—jN DATE 1S C4/01/2017 POLICY CODE NOS , CLASSIcICATIONS, PREMIUM BASIS, RATES AND ESTIMATED PREMIUMS ARE AME'-NDED AS FOLLCWSo .. ... .. .. .. ... THE PREMIUM FOR TFjjS 00LICY WILL BE DETERIMINE-D BY OUR MANUALS OF RULES, CLASSIFICATIONS. RATES AND RATING PLANS, ALL INFORMATION REQUIRED BELOW IS SUBjECT TO VERIFICATION AND CHANGE BY AUDIT !PREMIUM BASIS TO-IRA7EA11001ESTIMATED CODE NOAND TA( ESTIMATED Ai -IRE#�,t,�-iERA-IANtIJAL CLASSI . FIGATIONS INUAL REMUNERATI:ONII TION IPREMIUM AUDITORS� ACCOUNTANTS, �7ACTIORY COST OR OFFICE S"STEMATIZERS EMPLOYEES INCL'U"PING CLERICAL 0440 EMPLOYEES COMPANY SURCHARGE FOR INCREASED 1 15 EMPLOYERS LIABILITY LIMITS PREMIUM ADjU"-,ryEHT REQUIREE-,' FOR MINIMUM PAEMIUM 28 TERRUIRISM 9740 66,685 0 3 2-0 MINIMUM PREMIUM $ 375 CALIPDRNIA TOTAL ESTIMATED ANNUAL PREMIUM SAIN.) 510 STATE FRAUD SURCHARGE S i'00 SEE= SURCHARGE OVERFLOW PAGE ALL OTHER TERMS 41Z COND,TIONS OP THIS POLICY REMAIN UINICHANGED. PREPARED 04/15/2C!6 'Atc 99 00 02 04-84 COUNTERSIGNED ---- ------ - - WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY SURCHARGE OVERFLOW PAGE PAGE NO : 01 THIS FORMS A PART COP COVERAGE iS PROVIDED BY POLICY NO, 90-CH-K239.5 STATE FARM FTRF AND CASUALTY COMPANY P,O, BOX 799100, DALLAS TX 75379-9100 NAMED !NSURED AND IMAILING ADDRESS RETAHMEIER, JOYCE PEIN 330559043 DBjCYCE E RETHMEIER CERTIFIED PUBLIC ACCT 345 W NTH' AVE S T E 202 ESCONDIDO CA 92025-5055 DUE TD A'.',J AUDIT CA SURCHARGE $ iooo SIATE ASSESSMENT $ 2.00 LBR ENFMT COMPL ASMT S 1,00 OCC SAFETY HLTH FUND s i'00 SUB INN BENEFITS ASMT $ 11,00 PREPARES 04/15/2016 WC990003D T4ht 4 4 Pw�trav 78-495 Calle Tampico LA QUINTA, CA 92253 —34N FSERNARDTNO C7 171 MAY 21`1016 PM 5 *04 110 111 oil 111111111191111111 1111A 6111111111111111 R 11111 TAT 4 a" 78-495 Calle Tampico LA QUINTA, CA 92253 F" 11111 Rill 1111 yll g Jill Jill 0 1111111 dlip MEMORANDUM TO: Frank J. Spevacek, City Manager FROM: Gil Villalpando, Management Specialist DATE: May 23, 2017 [received 5/24. SM] RE: Joyce E. Rethmeier, Audit Engagement Letter for Washington Street Apartments Attached for your signature is the Audit Engagement Letter/Agreement with Joyce E. Rethmeier for audit services required by Rural Development. Please sign the attached agreement(s) and return to the City Clerk for processing and distribution. Requesting department shall check and attach the items below as appropriate: _ Contract payments will be charged to account number:: WSA Operating expenses charged by H der Properties 241-9g101-60y157 _X Amount of Agreement, Amendment, Change Order, etc.: $7,000.00 _X_ A Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) is attached with _X_ no reportable interests in LQ or reportable interests n/a A Conflict of Interest Form 700 Statement of Economic Interests is not required because this Consultant does not meet the definition in FPPC regulation 18701(2). Authority to execute this agreement is based upon: n/a Approved by the City Council on _X_ City Manager's signature authority provided under Resolution No. 2015-045 for budgeted expenditures of $50,000 or less n/a Initial to certify that 3 written informal bids or proposals were received and considered in selection The following required documents are attached to the agreement: _x_ Insurance certificates as required by the agreement (approved by Risk Manager on 512312017date) n/a Performance bonds as required by the agreement (originals) _x_ City of La Quinta Business License No. 0110896_; Expires: 6/30/2018 n/a Purchase Order number issued after agr execution La Quints Housing Authority May 23, 2017 Ms. Joyce E. Rethmeier 345 W. 9th Avenue, Suite 202 Escondido, CA 92025 Re: Professional Services Contract Dear Ms. Rethmeier: This letter will memorialize a Contract for Services between Joyce E. Rethmeier, CPA ("Consultant") and the City of La Quinta Housing Authority ("Authority") for professional accounting services relating to Washington Street Apartments ("Services"). The Consultant shall provide Services as specified in the attached Scope of Work at the rate set forth therein. Total project cost shall not exceed $7,000.00 (Exhibit "A"). Additional services must be approved in advance in writing by the Executive Director and shall be paid for in an amount agreed to in writing by both Authority and Consultant in advance of the additional services being rendered by Consultant. Consultant shall submit periodic invoices pursuant to the terms set forth in Exhibit A, until completion of the contract. The Consultant is an independent contractor. Neither Authority nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of Authority and shall remain at all times as to Authority a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall have no power to incur any debt, obligation, or liability on behalf of Authority. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of Authority. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to indemnify and hold Authority harmless from any and all taxes, assessments, penalties, and interest asserted against Authority by reason of the independent contractor relationship created by this Agreement. Authority shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to Authority from Consultant as a result of Consultant's failure to Joyce E. Rethmeier Professional Services Contract May 23, 2017 Page 3 of 4 In the event the Indemnified Parties are made a party to any action, lawsuit, or other adversarial proceeding in any way involving such Claims, the Consultant shall provide a defense to the Indemnified Parties, or at the Authority's option, reimburse the Indemnified Parties their costs of defense, including reasonable attorneys' fees, incurred in defense of such claim. In addition the Consultant shall be obligated to promptly pay any final judgment or portion thereof rendered against the Indemnified Parties. The Authority may at any time, for any reason with or without cause suspend or terminate this agreement upon the issuance of a ten (10) day notice by the Authority. Upon receipt of such notice, the Consultant shall cease all work under this Agreement. The Authority shall pay the Consultant for services performed up to the time of termination and all work products shall be provided to the Authority. This Agreement shall commence on July 1, 2017 and shall remain and continue in effect until the Services are completed or it is terminated, but no later than September 30, 2017, without written approval of the Executive Director. Should you find this Agreement acceptable, please sign both original copies where indicated below and return to me. An original fully -executed copy of this Agreement will be forwarded to you. Sincerely, Digitally signed by Frank J. Spevacek DN: cn=Frank J. Spevacek, o=City of La Quinta, ou=City Manager, email=fspevacek@la-quinta.org, c=US Date: 2017.05.31 17:23:18-0700' Frank J. Spevacek, Executive Director APPROVED AS TO FORM: ATTEST: Digitally signed y Susan Maysels DN: cn=Susan Maysels, o=City of La Quinta, ou=Clerk's t Office, email=smaysels@la-quinta.org, c=US Date: 2017.05.31 17:26:11-07'00' WILLIAM IHRKE SUSAN MAYSELS Housing Authority Counsel Housing Authority Secretary AGREED AND ACCEPTED: JOYCE E. RETHMEIER, CPA Dated: By: Joyce E. Rethmeier Joyce E. Rethmeier Professional Services Contract May 23, 2017 Page 3 of 4 In the event the Indemnified Parties are made a party to any action, lawsuit, or other adversarial proceeding in any way involving such Claims, the Consultant shall provide a defense to the Indemnified Parties, or at the Authority's option, reimburse the Indemnified Parties their costs of defense, including reasonable attorneys' fees, incurred in defense of such claim. In addition the Consultant shall be obligated to promptly pay any final judgment or portion thereof rendered against the Indemnified Parties. The Authority may at any time, for any, reason with or without cause suspend or terminate this agreement upon the issuance of a ten (10) day notice by the Authority. Upon receipt of such Notice, isle Consuitant-shall cease all work under this Agreement. The Authority shall pay the Consultant for services performed up to the time of termination and all work products shall be provided to the Authority. This Agreement shall commence on July 1, 2017 and shall remain and continue in effect until the Services are completed or it is terminated, but no later than September 30, 2017, without written approval of the Executive Director. Should you find this Agreement acceptable, please sign both original copies where indicated below and return to me. An original fully -executed copy of this Agreement will be forwarded to you. Sincerely, Frank J. Spevocek, Executive Director APPROVED AS TO FORM: WILLIAM IHRKE Housing Authority Counsel AGREED AND ACCEPTED: Dated:; ATTEST: SUSAN MAYSELS Housing Authority Secretary JOYCE E. RETHMEIER, CPA JOYCE E. RETHMEIER CERTIFIED PUBLIC ACCOUNTANT May 8, 2016 Mr. Frank J. Spevacek City Manager City of La Quinta 78495 Calle Tampico La Quinta, CA 92253-2839 RE: Audit Engagement Letter for Washington Street Apartments Dear Mr. Spevacek: I am enclosing an engagement letter related to the audit required by Rural Development as part of the Regulatory Agreement of the Mortgage Debt on the property. Last year, as a part of the agreement, you required additional documentation. I am enclosing: Accountants Professional Liability Insurance Policy Form 700, Statement of Economic Interests City Business License (will be renewed upon invoice) Most recent Peer Review Report If you require any additional documentation from me, please let me know. Sincerely, Y.y1cE.tReithmeier Certified Public Accountant Enclosures cc: Hyder & Company 345 W. 9th Ave., Suite 202, Escondido, CA 92025 Tel. (760) 233-2244 Fax (760) 233-2166 Member of American Institute of Certified Public Accountants California Society of Certified Public Accountants JOYCE E. RETHMEIER CERTIFIED PUBLIC ACCOUNTANT May 01, 2017 Mr. Frank J. Spevacek City Manager City of La Quinta 78495 Calle Tampico La Quinta, CA 92253-2839 Dear Frank: I am pleased to confirm my understanding of the services I am to provide for Washington Street Apartments (an elderly housing development owned by La Quinta Housing Authority) for the year ended June 30, 2017. 1 will audit the financial statements of Washington Street Apartments, which comprise the statements of financial position as of June 30, 2017, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements. Also, the schedule of expenditures of federal awards and the supplementary financial information accompanying the financial statements required by the Department of Agriculture, Rural Development will be subjected to the auditing procedures applied in my 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, in accordance with auditing standards generally accepted in the United States of America and my auditor's report will provide an opinion on it in relation to the financial statements as a whole. AUDIT OBJECTIVES The objective of my audit is the expression of an opinion about whether the financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the first paragraph when considered in relation to the financial statements taken. The objective also includes reporting on: • Internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts and award agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. 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). 345 W. 9'h Ave., Suite 202, Escondido, CA 92025 Tel. (760) 233-2244 Fax (760) 233-2166 Member of American Institute of Certified Public Accountants California Society of Certified Public Accountants The Government Auditing Standards report on internal control over financial reporting and on compliance and other matters will include a paragraph that states (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) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering 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 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. My audit will be conducted in accordance with auditing standards generally accepted in the United States of America; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of Uniform Guidance, and will include tests of your accounting records, a determination of major program(s) in accordance with Uniform Guidance, and other procedures I consider necessary to enable me to express such opinions. I will issue written reports upon completion of my single audit. My reports will be addressed to the City of La Quinta. I cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for me to modify my opinion or add an emphasis -of -matter or other -matter paragraph. If my opinion on the financial statements or the Single Audit compliance opinions are other than unmodified, I will discuss the reasons with you in advance. If, for any reason, I am unable to complete the audit or am unable to form or have not formed an opinion, I may decline to express an opinion or to issue a report as a result of this engagement. AUDIT PROCEDURES -GENERAL An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, my 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 financial statements. I will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriations of assets, or (4) violations of laws or governmental regulations that are attributable to Washington Street Apartments or to acts by management or employees on behalf of Washington Street Apartments. Because the determination of abuse is subjective, Government Auditing Standards do 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 I will not perform a detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by me, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or on major programs. However, I will inform the appropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to my attention. I will also inform the appropriate level of management of any violations of laws or governmental regulations that come to my attention, unless clearly inconsequential and of any material abuse that comes to my attention. I will include such matters in the reports required for a Single Audit. My responsibility as auditor is limited to the period covered by my audit and does not extend to any later periods for which I am not engaged as auditor. -2- My procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include direct confirmation of cash, receivables, loan balances, and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors and financial institutions. At the conclusion of my audit, I 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 generally accepted auditing standards. AUDIT PROCEDURES -INTERNAL CONTROL My 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 I 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. My tests, if performed, will be less in scope than would be necessary to render an opinion on the internal control and, accordingly, no opinion will be expressed in my report on internal control issued pursuant to Government Auditing Standards. As required by the Uniform Guidance, I will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that I consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, my 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 my 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, I will communicate to you and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and the Uniform Guidance. AUDIT PROCEDURES -COMPLIANCE As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, I will perform tests of Washington Street Apartments compliance with 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 I will not express such an opinion in my report on compliance issued pursuant to Government Auditing Standards. The Uniform Guidance requires that I also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. My procedures will consist of tests of transactions and other applicable procedures described in the OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on Washington Street Apartments major programs. The purpose of these procedures will be to express an opinion on Washington Street Apartments compliance with requirements applicable to each of its major programs in my report on compliance issued pursuant to the Uniform Guidance. -3- OTHER SERVICES I will assist in preparing the June 30, 2017 financial statements, schedule of expenditures of federal awards, and related notes to the entity in conformity with U.S. generally accepted accounting principles and the Uniform Guidance, and the supplementary information required by the Department of Agriculture, Rural Development, based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards, and such services will not be conducted in accordance with Government Auditing Standards. The other services are limited to the financial statements, schedule of expenditures of federal awards, other supplementary information and related notes. I, in my sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. MANAGEMENT RESPONSIBILITIES Management is responsible for (1) establishing and maintaining effective internal controls, including internal controls over federal awards, and for evaluating and monitoring ongoing activities to help insure that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurance that government programs are administered in compliance with compliance requirements; and (4) ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, 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, the supplementary information required by the Department of Agriculture, Rural Development, and related notes in conformity with U.S. generally accepted accounting principles; and for compliance with applicable laws and regulations (including federal statutes) and the provisions of contracts and grant agreements (including award agreements). Your responsibilities also include identifying any significant contractor relationships in which the contractor has responsibility for 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 me and for the accuracy and completeness of that information. You are also responsible for providing me 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 I may request for the purpose of the audit, and (4) unrestricted access to persons within the entity from whom I determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to me in the management representation letter that the effects of any uncorrected misstatements aggregated by me during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing me about all known or suspected fraud affecting the entity involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing me of your knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring 4- that the entity complies with applicable laws, regulations, contracts, agreements, and grants. Management is also responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant agreements, or abuse that I report. Additionally, as required by the Uniform Guidance, it is management's responsibility to evaluate and monitor noncompliance with federal statues, 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; to 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 my review on August 20, 2017. 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 my report on the schedule of expenditures of federal awards in any document that contains and indicates that I 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 my report thereon. Your responsibilities include acknowledging to me in the representation letter that (1) 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 fairly 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 me any significant assumptions or interpretations underlying the measurement or presentation of the schedule of expenditures of federal awards. You are also responsible for the preparation of the other supplementary information, which I have been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree to include my report on the supplementary information in any document that contains, and indicates that I have reported on, the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes my report thereon. Your responsibilities include acknowledging to me in the representation letter that (1) you are responsible for presentation of the supplementary information in accordance with U.S. generally accepted accounting principles; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with U.S. generally accepted accounting principles; (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 me any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to me corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. You are also responsible for providing management's views on my current findings, conclusions, and recommendations, as well as your planned corrective actions for the report, and for the timing and format for providing that information. You agree to assume all management responsibilities relating to the financial statements, schedule of expenditures of federal awards, other supplementary information, and related notes, and any other nonaudit services I provide. You will be required to acknowledge in the management representation letter my assistance with preparation of the financial statements, schedule of expenditures of federal awards, other supplementary information, and related notes, and that you have evaluated the adequacy of my services and -5- have reviewed and approved the results of the services, the financial statements, schedule of expenditures of federal awards, other supplementary information, and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of the service, and accept responsibility for them. ENGAGEMENT ADMINISTRATION, FEES, AND OTHER I may from time to time, and depending on the circumstances, use third -party service providers in serving your account. I may share confidential information about you with these service providers, but remain committed to maintaining the confidentiality and security of your information. Accordingly, I maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, I will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and I will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that I am unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third -party service provider. Furthermore, I will remain responsible for all work provided by any such third -party service providers. I understand that your employees will locate any documents selected by me for testing. At the conclusion of the engagement, I will complete the appropriate sections of the Data Collection Form that summarizes my audit findings as it relates to the Washington Street Apartments project. It is management's responsibility to submit the reporting package (including financial statements, schedules of expenditures of federal awards, summary schedule of prior audit findings, auditor's reports, and corrective action plan) along with the Data Collection Form to the federal audit clearinghouse. The Data Collection Form and the reporting package must be submitted within the earlier of 30 days after receipt of the City auditor's reports or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. I will provide copies of my reports to the entity; however, management is responsible for distribution of the reports and the financial statements. The audit documentation for this engagement is the property of Joyce E. Rethmeier, CPA and constitutes confidential information. However, pursuant to authority given by law or regulation, I may be requested to make certain audit documentation available to the Department of Agriculture, Rural Development, and the Government Accountability Office or their representatives for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. I will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Joyce E. Rethmeier, CPA personnel. Furthermore, upon request, I may provide copies of selected audit documentation to the parties. Those parties may intend, or decide, to distribute the copies or information contained therein to others, including other government agencies. The audit documentation of this engagement will be retained for a minimum of six years after the report release or for any additional period requested by Department of Agriculture, Rural Development. If I am aware that a federal awarding agency, pass -through entity, or auditee is contesting an audit finding, I will contact the parties contesting the audit finding for guidance prior to destroying the audit documentation. Joyce E. Rethmeier is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. I expect to begin my audit in June 2017 and plan to issue my report no later than September 30, 2017. 6- I estimate that my fees for these services will be $7,000. The fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, I will discuss it with you and arrive at a new fee estimate before we incur the additional costs. My invoice for these services will be rendered upon completion of the engagement. Governmental Auditing Standards require that I provide you with a copy of my most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. My 2014 peer review report accompanies this letter. I appreciate the opportunity to be of service to Washington Street Apartments and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let me know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to me. Very truly yours, 9W E- )GaWW6aA--) Joyce E. Rethmeier Certified Public Accountant RESPONSE: This letter correctly sets forth our understanding. Washington Street Apartments, (an elderly housing development owned by La Quinta Housing Authority) Approved by: Title: Date: cc: Hyder & Company 1649 Capalina Road, Suite 500 San Marcos, CA 92069-1226 -7- CAMICO MUTUAL INSURANCE COMPANY DECLARATIONS ACCOUNTANTS PROFESSIONAL LIABILITY INSURANCE POLICY Policy Number: CAL05179-24 Effective Date: 01/01/2017 at 12:01 A.M. Standard time at the address shown below Expiration Date: 01/01/2018 at 12:01 A.M. Standard time at the address shown below Retroactive Date: 12/01/1993 Item I - Named insured: Joyce E. Rethmeier, CPA Item 2 - Business Address: 345 W. 9th Ave., Suite 202 Escondido, CA 92025 Item 3 - Limits of Liability: $500,000 Per Claim $500,000 Policy Aggregate Item 4 - Deductibles: $2,500 Per Claim Deductible Item 5 - Total Premium: $3,504 Item 6 - The policy consists of this Declarations page, and the following policy forms and endorsements: PL-1000-A 07/14 Accountants Professional Liability Insurance Policy PL-2001-A (CA) 07/14 State Endorsement - California PL-1007-A 07/14 Exclusion - Claims Following Insureds Suit for Fees PL-1009-A 07/14 Exclusion for Services Rendered in Another Capacity PL-1045-A 07/20I4 Cyber CPA Endorsement PL-1049-A 07/2014 Privacy and Client Network Damage Endorsement PL-1056-A 06/16 Multiple Claims and Related Acts, Errors and Omissions Amendment PLEASE READ THESE DECLARATIONS, THE POLICY AND ENDORSEMENTS CAREFULLY, CAMICO Mutual Insurance Company Authorized Representative PL-1001-A (rev. W13) WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY INFORMATION PAGE ENDORSEMENT PAGE 01 THIS FORMS A PART OF COVERAGE IS PROVIDED BY f 2-8fi75-FB2F POLICY NO. 90-CT-M525--7 STATE FARM FIRE AND CASUALTY COMPANY PO Box 853925, Richardson TX 75085-3925 NAMED INSURED AND MAILING ADDRESS RETHMEIER, JOYCE FEIN 330559043 DBA JOYCE E RETHMEIER CERTIFIED PUBLIC ACCT 345 W 9TH AVE STE 202 ESCONDIDO CA 92025-5055 DUE TO AN AUDIT THE EFFECTIVE DATE IS 04/01/2017 THE EXPIRATION DATE IS 04/01/201B ------------- POLICY CODE NOS., CLASSIFICATIONS, PREMIUM BASIS, RATES AND ESTIMATED PREMIUMS ARE AMENDED AS FOLLOWS: -_ ------------------------------------------ THE PREMIUM FOR THIS POLICY WILL BE DETERMINED BY OUR MANUALS OF ''REQUIFEDLBELOW ISTSUB ACTATOSVERIFICATIONPANDSCHANGEIBY INFORMATION __- _ ----------------- INUAL PREMIUMBASIS TO-RATEII$100IIESTIMATfCODE NOS. AND TAL ESTIMATED AN-IREMUNERA-IANNUA( CLASSIFICATIONS REMUNERATION TION 11PREMIU!,: $803-------------------------------------_------------------- -- -.31 ----------- 78.604 AUDITORS, ACCOUNTANTS, FACTORY COST OR OFFICE SYSTEMATIZERS - ALL EMPLOYEES - INCLUDING CLERICAL OFFICE EMPLOYEES N.P.Q. COMPANY SURCHARGE FOR INCREASED 115 EMPLOYERS LIABILITY LIMITS PREMIUM ADJUSTMENT REQUIRED FOR MINIMUM PREMIUM TERRORISM 9740 78,604 .03 MINIMUM PREMIUM $ 450 CALIFORNIA TOTAL ESTIMATED ANNUAL PREMIUM STATE FRAUD SURCHARGE SEE SURCHARGE OVERFLOW PAGE ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED. PREPARED 04/19/2017 WC 99 00 02 04-84 COUNTERSIGNED 206 24 MIN.) 589 1,00 Date Initial Filing Received STATEMENT OF ECONOMIC INTERESTS _01.c,arLISP-only COVER PAGE Please type or print in ink NAME OF FILER "ST) (FIRST) PIMMj Rethmeier Joyce Ellen 1. Office, Agency, or Court Agency Name (Do not use acronyms) City of La Quinta Division, Board, Department, District, if applicable Your Position Department of Housing (Washington Street) Independent Certified Public Accountant ■ If filing for multiple positions, list below or an an attachment. (Do not use acronyms) Agency: Position: 2. Jurisdiction of Office (Cheery of least one box) State ❑ Judge or Court Commissioner (Statewide Jurisdiction) ❑ Multi -County N City of La Quinta ❑ County of ❑ Other 3. Type of Statement (Check at least one box) x❑ Annual: The period covered is January 1, 2016, through ❑ Leaving Office: date Left 1. _ 1 .or- December 31, 2016. (Check one) The period covered is �1— I through 0 The period covered is January 1, 2016, through the date of December 31, 2016. -or- leaving office. Assuming Office: Date assumed 1 0 The period covered is I through the date of leaving office. Candidate: Election year and office sought, if different than Part 1: 4. Schedule Summary (must complete) I. Total number of pages including this corer page: Schedules attached ❑ Schedule A-1 - investments — schedule attached ❑ Schedule A-2 • Investments — schedule attached ❑ Schedule S - Real Property — schedule attached .or- N None - No reportable interests on any schedule U. YGIIIIf.;LIUUII ❑ Schedule C • Income, Loans, $ Business Posdions — schedule attached ❑ Schedule D - Income — Gifts — schedule attached ❑ Schedule E - Income — Gifts — Travel Payments — schedule attached MAILING ADDRESS STREET CITY STATE ZIP CODE (Business orrAgency Address Recommended - PuUic Document) 345 W. 9th Avenue, Suite 202 Escondido CA 92025 �.,.•� ����ovvn� nuinocrs t-WAILADUKESS i 760 ) 233-2244 I.J.oyce@jrethmeiercpas.com I nave used all reasonable diligence in preparing this statement. I have reviewed this statement and to the best of my knowledge the information contained herein and in any attached schedules is true and complete. I acknowledge this is a public document. I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Date Signed Signature (mvwtr, day, year) the odgfnalfysigwdstetemenl w 1h y0orFling afficiaL) FPPC Form 700(2016/2017) FPPC Advice Email: advice@fppc.ca.gov FPPC Toll -Free Helpline: 866/275.3772 www.fppc.ca.gov