2023 Eide Bailly Financial Audit Proposal for City of Kalispell
September 11, 2023
Proposal for Annual Independent Financial Audit Services
CITY OF KALISPELL, MT
Submitted By:
Eide Bailly LLP
401 N. 31st St. #800, Billings, MT 59103
Paul Kane, CPA | Partner
303.459.6758 | pkane@eidebailly.com
Brian Stavenger, CPA | Partner
701.239.8518 | bstavenger@eidebailly.com
CITY OF KALISPELL
TABLE OF CONTENTS
Cover Letter .............................................................................................................1
Qualifications Criteria ............................................................................................2
General Information ...............................................................................................2
a. Description of Company ........................................................................................ 2
b. Legal Company Description and Organization Chart ..................................... 3
Relevant Company Experience ............................................................................4
a. Overall Reputation and Capabilities .................................................................. 4
b. Referrals and References ...................................................................................... 7
c. Litigation, Arbitration, Claims and Terminations ................................................ 8
d. Capacity and Intent to Proceed ........................................................................... 8
Company Qualifications ........................................................................................8
Continuing Professional Education Requirements ................................................... 8
External Quality Control Review ............................................................................... 9
a. Geography of Firm .............................................................................................. 10
b. Location of Office ................................................................................................ 10
c. Range of Activities ................................................................................................ 10
d. License to Practice in Montana .......................................................................... 10
e. Partners, Managers and Supervisors ................................................................ 11
f. Similar Experience................................................................................................. 19
Contract Understanding and Approach .......................................................... 20
a. Understanding of Scope of Work .................................................................... 20
b. Potential Difficult Issues ....................................................................................... 20
c. Methods to Mitigate Difficulties ......................................................................... 21
Approach to Contract Management ................................................................ 23
a. Our Approach ....................................................................................................... 23
b. Planning, Scheduling, Estimating & Managing Manpower Requirements . 29
c. Maintaining Personnel Training and Certification .......................................... 30
Proposal for Audit ............................................................................................... 31
a. Work Schedule ..................................................................................................... 31
b. Proposed Work Methods .................................................................................... 31
c. Schedule of Costs .................................................................................................. 32
Other Factors ........................................................................................................ 33
Current Contract and Ability to Proceed Promptly ............................................ 33
Willingness to Adhere to City’s Needs and Requirements ................................ 33
Quality and Value of Service ................................................................................. 33
Additional Resources ........................................................................................... 34
The Right Choice for the City of Kalispell ....................................................... 36
CITY OF KALISPELL
What inspires you, inspires us. | eidebailly.com
401 N. 31st St., Ste. 1120 | P.O. Box 7112 | Billings, MT 59103-7112 | TF 800.824.9797 | T 406.896.2400 | F 406.252.8600 | EOE
Cover Letter
WE WANT TO WORK WITH YOU
Thank you for giving Eide Bailly the opportunity to propose on audit services for the City of Kalispell (City). As a national firm with a
strong Montana presence that specializes in government auditing, we are confident the City will benefit from the experience we
provide and believe our firm to be the best candidate for this engagement.
Government Industry Dedication: As the second largest industry we serve, we’ve been steadfastly helping government
entities for more than 70 years and currently work with more than 1,100 government clients. We appreciate the operational and
political aspects of these clients and are excited about government work. We have multiple clients that are similar in size and/or
complexity, so we understand how to externally audit cities and have served on the inside through internal and performance
audits, agreed-upon procedures and consulting engagements. Our dedicated professionals work year-round with government
clients; we commit the necessary resources to show our dedication to the government industry.
Exceeding Your Expectations: Our size enables us to be responsive to our clients’ needs and unique entity challenges
while also providing the necessary breadth and depth of services required in today’s complex and ever-changing business
environment. We are excited about the benefits we offer:
• Proactive Communication and Best Practices: We’ve built communication protocols into our delivery to ensure timely
communication and prompt wrap up. In addition, we bring best practices in areas such as process improvement, based on
our experience with other government clients, and will pass these along to the City. Our interactive PBC software solution
delivers an improved client experience for document exchange, excellent communication and other efficiencies.
• Reliability and Partner Involvement: We have a proven history of providing exceptional, reliable service. You will experience
partner and senior-staff involvement during the engagement and throughout the year.
• Unmatched Client Service: You’ll be served by professionals with extensive government knowledge, while enjoying access to
national resources, including 3,000 professionals with diverse skill sets and experiences.
• Training and Capacity Building: We’re dedicated to providing training and value-added resources to our clients. Your
engagement team will frequently share important industry updates; the City will also have access to articles and webinars on
hot topics in the government industry, designed to help your organization navigate complex issues. Additionally, we have our
government advisory group helps us develop trainings related to standard implementations, Annual Comprehensive
Financial Report (ACFR) prep and analysis and other topics we have provided as additional services to other similar cities.
Proud to Serve Montana Government Entities: We’re excited to create efficiencies for your engagement by leveraging
not only our experience with other Montana government entities, but through travel coordination and consistent staffing across
engagements, creating increasingly effective audit experiences for the City and our other clients in the state of Montana. The
proposed audit team was recently awarded the City of Bozeman audit engagement, and the audit engagements for two Montana
school districts in Bozeman and Great Falls, and the Montana Board of Housing. These entities join other government clients in the
state, such as the Billings School District and the Montana Board of Investments, with whom we have enjoyed long-term
relationships. Our familiarity with these government entities and perspective gained will benefit the City’s engagement.
We Want to Work with You: We’ve developed the following proposal with the City in mind; we’ll provide timely,
personalized services for you as a valued partner during the audit and a technical resource throughout the year to help you plan
and implement new Governmental Accounting Standards Board (GASB) standards. We deliver honest and insightful advice beyond
what is normally experienced in the public accounting industry. Our tagline, what inspires you, inspires us, is more than copy to
add to marketing materials. We gain energy from those we serve, which turns into a passionate interest in our clients’ success. We
believe the following pages demonstrate why our firm merits serious consideration. You’ll be a highly valued client; we’d be proud
to work with you and build a trusting relationship with your team. Please contact us to discuss any aspect of this proposal.
Sincerely,
Paul Kane, CPA | Partner
303.459.6758 | pkane@eidebailly.com
Brian Stavenger, CPA | Partner
701.239.8518 | bstavenger@eidebailly.com
CITY OF KALISPELL
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Qualifications Criteria
General Information
A. DESCRIPTION OF COMPANY
WHAT INSPIRES YOU, INSPIRES US
Eide Bailly is a national CPA firm, licensed to practice in the state of Montana. By
embracing change and focusing on innovative ideas, we have grown along with our
clients to become one of the top 25 accounting firms in the nation.
Accounting is about numbers, but our business is about relationships. Your
experience will be different than working with other CPA firms because we offer
knowledge and skills backed by more than 100 years of service. Our professionals
deliver industry and subject matter expertise resourcefully, ensuring we provide
guidance that directly reflects your needs.
Our clients benefit from local, personal service and, at the same time, enjoy access to
more than 3,000 professionals, including 390+ partners and principals, with diverse
skill sets and experiences, as demonstrated by how we will staff your audit. Paul Kane
will serve as the Engagement Partner and Brian Stavenger will serve as the Consulting
Partner. They will be joined by Janeen Hathcock, Senior Manager, and Jill Morasko,
Manager.
Your engagement team will efficiently serve you remotely and will plan to travel on-
site to work with the local team to build a cohesive, effective audit team while
utilizing our best resources across the firm and building a relationship with you as we
get to know you through the engagement. We structure the first year plan for this
engagement to minimize time demands and ensure a timely audit, which includes
more time in the field to ease transition and resolve issues as they arise rather than at
the end of the audit. Additional means by which we strive for a smooth transition are
detailed in Contract Understanding and Approach.
CITY OF KALISPELL
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Navigating a Path to Success Together
By embracing change and focusing on innovative ideas, we’ve grown along with our clients to become one of
the top 25 accounting firms in the nation. Accounting is about numbers, but our business is about relationships.
We’ll be there for you every step of the way. Talented, down-to-earth people work at our firm, and we're
inspired to deliver outstanding expertise and care. We’re driven to help you take on the now and the next with
inspired ideas, solutions and results.
Our work with clients is more than an engagement. It’s a relationship, built on values and trust — and results.
When working with Eide Bailly, you will:
• Work with professionals who truly care about your business and will take the time to get to know you
and your organization.
• Gain insight from our industry and service specialists to accomplish your objectives, address challenges
and leverage new opportunities.
• Make better business decisions knowing you are guided by trusted advisors who care about your
success.
• Appreciate our hands-on service style; we are always looking for new ways to solve your problems or
help you embrace opportunities.
B. LEGAL COMPANY DESCRIPTION AND ORGANIZATION CHART
Eide Bailly is structured as a Limited Liability Partnership, with more than 375 partners and 3,000 staff
members. The firm is led by:
Firm Management
Jeremy Hauk, CPA, Managing Partner/CEO
Andy Spillum, CPA, Partner, Chief Operating Officer
Mike Astrup, CPA, Partner, Chief Administrative Officer
Ross Manson, Principal, Chief Advisory & Industry Officer
Scott Kost, Principal, Chief Technology Officer
Laura Srsich, CPA, Partner, Chief Talent Officer
Jason Delles, Principal, Chief Growth Officer
Brian Bluhm, CPA, Partner, Chief Quality Officer
Brian Callahan, CPA, Partner, National Market Leader
Stacy Erdmann, CPA, Partner, National Tax Leader
Ben Ellingson, CPA, Partner, National Assurance Leader
Board of Directors
Jeremy Hauk, CPA, Managing Partner/CEO
Derrick Larson, CPA, Chair and Partner
Paul Skeen, CPA, Vice-Chair and Partner
Andy Kaiser, CPA, Partner
Jodi Daugherty, CPA, Partner
Chad Flanagan, CPA, Partner
Jason Oelrich, CPA, Partner
CITY OF KALISPELL
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Relevant Company Experience
A. OVERALL REPUTATION AND CAPABILITIES
WE UNDERSTAND GOVERNMENTS
Our Government Industry Group has 275 full-time professionals who share
information, learn from others and stay up to date on industry developments. To
gain the greatest benefit, the knowledge is shared with professionals across the
firm.
The government industry represents Eide Bailly’s second largest niche area — with
more than 1,100 government clients firmwide. We provide audit services for a
variety of cities, counties, colleges and universities, fire relief agencies, housing
authorities, school districts, state agencies and tribal entities. Through serving these
clients, our professionals have gained focused expertise in the government industry
and will provide you with insightful advice.
These services include, but are not limited to, evaluating internal control structure,
assessing control risk and performing tests of controls, as well as testing compliance
with applicable laws and regulations in accordance with Government Auditing
Standards.
Government Industry Involvement
Eide Bailly prioritizes staying current with changes to the government industry. We
help clients adapt to changes within the existing standards and implement any new
standards. Our team members are engaged in the government industry and are well
positioned in organizations associated with government entities.
We are leaders in the Governmental Accounting Standards Advisory Council
(GASAC), the AICPA’s Governmental Audit Quality Center (GAQC), AICPA State and Local Government Expert
Panel, Private Companies Practice Section (PCPS) Technical Committee, local and national boards of the
Association of Government Accountants (AGA), including the Financial Management Standards Board, and the
review committee for the GFOA’s Certificate of Achievement for Excellence in Financial Reporting. Due to our
leadership positions, you will have access to information not available from other accounting firms.
CITY OF KALISPELL
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We regularly attend GASB meetings throughout the year and
communicate the results of those meetings to our clients
through newsletters, e-blasts and webinars. We are also
involved with GASB’s financial reporting reexamination task
force shaping the future of state and local government
accounting and reporting and participate in the reexamination
of the revenue and expense model and note disclosure
projects with GASB.
Single Audit Experience
Eide Bailly has experience providing single audits related to
federal expenditures which ensure our clients remain
compliant. Our single audits include an audit of both the
financial statements and the federal awards. We also assist in
the preparation of the data collection form and prepare the
reporting package for submission to the federal audit
clearinghouse.
Eide Bailly has a three-year average of auditing more than
$28.8 billion in federal expenditures, which provides us with
extensive experience in single audits. Not only are we on the
forefront of new regulations, but because of our vast
experience with government entities, we are also familiar with
a wide variety of federal programs. As the City looks to expand
its current federal programs, we can pull from our expansive
database of federal programs that we have audited and
provide consultation on what has worked effectively for other
entities. This will help the City establish strong controls and
processes over new federal programs rather than trying to
rework controls and processes after the programs are
established.
Our single audit experience includes the Department of
Education, Department of Housing and Urban Development,
Department of Agriculture, Department of Commerce,
Department of Interior, Department of Transportation,
Department of Justice, Department of Labor, Department of
the Treasury, Department of Health and Human Services,
Homeland Security, National Foundation on the Arts and the
Humanities, Environmental Protection Agency, Department of
Energy, Office of the National Drug Control Policy, Department
of Defense and the Bureau of Land Management. Paired with our many years of experience, we are qualified to
effectively work with your organization to ensure federal requirements are met.
ACFR Experience
Some clients ask us to prepare their ACFR or other financial reports and we have dedicated and experienced
report writers leading those efforts. In other instances, clients request that we provide additional review and
critique of their ACFR or other financial reports that the client prepares in addition to or in lieu of the ACFR.
GFOA
Certificate of Achievement for
Excellence in Financial Reporting
We recognize the importance of achieving the
GFOA Certificate of Achievement for Excellence
in Financial Reporting and work with our clients
to achieve this certification. Several members of
our government industry group are reviewers of
the GFOA’s Certificate of Achievement for
Excellence in Financial Reporting Program,
including Brian Stavenger, your proposed
engagement partner. Below is a partial listing of
our government audit clients that have been
awarded and maintain this certification.
City of Brea, CA
City of Chico, CA
City of Davis, CA
City of Fargo, ND
City of Minot, MN
City of Snyder, TX
City of Walnut, CA
City of Alameda, CA
City of Buckeye, AZ
City of Concord, CA
City of Corinth, TX
City of Durango, CO
City of Wichita, KS
City of Campbell, CA
City of Glendale, CA
City of La Palma, CA
City of Moorhead, MN
City of Redlands, CA
City of Temecula, CA
City of Whittier, CA
City of Camarillo, CA
City of Fairfield, CA
City of Lafayette, CO
City of Palmdale , CA
City of Roseville, CA
City of San Ramon, CA
City of Boise City, ID
City of Dana Point, CA
City of Lake Tahoe, CA
City of Louisville, CO
City of Paramount, CA
City of Pleasanton, CA
City of Sacramento, CA
City of Santa Cruz, CA
City of Maple Grove, MN
City of San Leandro, CA
City of Sioux Falls, SD
City of Suisun City, CA
City of Temple City, CA
City of Indian Wells, CA
City of Laguna Beach, CA
City of Walnut Creek, CA
Town of Flower Mound, TX
City of Laguna Niguel, CA
City of Rancho Mirage, CA
City of Rancho Cordova, CA
City of Salt Lake City, UT
City of Brookings, SD
City of South Lake Tahoe, CA
City of Rancho Palos Verdes, CA
CITY OF KALISPELL
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If our client prepares the ACFR containing audited financial statements, it is our responsibility to provide
assurance that the information contained in the ACFR articulates the work that has been audited during the
engagement. We use disclosure checklists and procedures are updated for each new standard released to gain
this assurance.
In certain cases, we review the previously issued ACFR for readability, clarity and consistency with standards. We
base this review not only on disclosure checklists, but also on peer trends and techniques. We perform this
service for clients such as the Office of Montana Board of Investments, the State Controller of California, the
Office of the State Controller of California, State of South Dakota Bureau of Finance and the State of Nevada
Controller’s Office, annually reporting to management suggested changes, or assisting them with other GASB
thought leadership.
We work with and refer to the GFOA Governmental Accounting, Auditing, and Financial Reporting (GAAFR) (Blue
Book) and its supplements as an additional source of guidance when assisting our clients in preparation of the
ACFR. We also have resources available to the team including CCH Wolters Kluwer’s Governmental GAAP Guide,
Governmental GAAP Practice Manual and Governmental GAAP Disclosures Manual, all of which are written by
Eric Berman, Partner and Additional Resource.
Implementation of New Standards
In an industry where standards continually evolve and change, Eide Bailly makes it a priority to stay current and
assist our clients with necessary changes. In addition to helping clients implement new standards, we also help
them adapt to changes within the existing standards.
Several of our professionals serve on committees that have direct input into writing new standards, including
Janeen Hathcock who completed a two-year fellowship with the GASB on December 31, 2021, where she
worked on various financial reporting projects and learning the standard setting process. This enables our
involvement from the beginning and ability to influence the final outcome. Our clients benefit from our strong
understanding of the standards and how they may affect their organization. We will work with the City to create
a plan to address new standards one to two years prior to implementation.
Thought Leadership
A number of Eide Bailly partners are nationally-recognized state and local government thought leaders who
present at dozens of national venues throughout the year. These venues include: GFOA; National Association of
State Auditors, Comptrollers and Treasurers; California Society of CPAs; California Society of Municipal Finance
Officers; Oregon Government Finance Officers Association; California State Association of County Retirement
Systems; California Association of Public Retirement Systems; AGA National Professional Development
Conference; National Association of Housing and Redevelopment Officials (NAHRO); Iowa Society of CPAs; Idaho
Society of CPAs; Utah Society of CPAs; and Colorado GFOA.
We also provide training for state and local agencies, including the Controllers’ offices of the State of Tennessee,
Texas State Auditor, State of Montana, Commonwealth of Massachusetts and the State of Nevada.
Furthermore, Eric Berman, Partner, is the author for the entire Governmental Library for Commerce
Clearinghouse Wolters Kluwer (CCH). This library serves as the interpretative reference on government
Generally Accepted Accounting Principles (GAAP), government best practices and government audits for
governments, auditors and educators nationwide. Eric will be an additional resource and is available to assist or
consult as needed.
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Online Publications: We publish articles related to hot issues within the
government accounting arena. Below is a list of some of the recent articles
posted to our website and emailed to our clients:
• What SAS No. 134 Means for Significant Risks Identified
• The Impact of the Infrastructure Investment and Jobs Act on
Government Entities
• Your Government Received Millions from the American Rescue Plan Act, Now What?
• Now is the Time to Implement GASB-87, Leases
Webinars: Our frequent webinars are dedicated to helping you and your organization navigate complex issues.
Each webinar covers a different topic to help evaluate the steps necessary to achieve success and remain ahead
of the curve.
B. REFERRALS AND REFERENCES
As a top 25 CPA firm, we’ve built our business on relationships and believe our clients to be the best critics of
our service. The clients below have similarities to your organization, and we encourage you to contact them to
learn about their Eide Bailly experiences.
Similar Clients
City of Wichita
455 North Main 12th Floor
Wichita, KS 67202
2021-Present
Contact Mark Manning, Finance Director | 316.268.4300 | mmanning@wichita.gov
Scope
Financial statement audit, single audit, agreed-upon procedures (AUP) (landfill, sales
tax, bonds, REAC HUD filing, ice center, performing arts center) and GASB
implementation assistance.
City of Sioux Falls
235 W. 10th St.
Sioux Falls, SD 57117
1995-Present
Contact Cody Papke, Chief Accountant | 605.367.8862 | cpapke@siouxfalls.org
Scope Financial statement audit, single audit, GASB and operational advisory.
City of Fargo
P.O. Box 2083
Fargo, ND 58107
1995-Present
Contact Wyatt Papenfuss, Finance Manager | 701.476. 5968 | wpapenfuss@fargond.gov
Scope
Financial statement audit, single audit, AUP for landfill, parking and liquor license,
bookkeeping support, background checks, forensic accounting and payroll data
analytics.
Billings School District #2
415 North 30th St.
Billings, MT 59101
2002-Present
Contact Craig Van Nice, CFO | 406.281.5017 | vannicec@billingsschools.org
Scope Financial statement audit, single audit and GASB implementation assistance.
City of Durango
949 E. 2nd Ave.
Durango, CO 81301
2019-Present
Contact Devon Schmidt, Finance Director | 970.375.5040 | devon.schmidt @durangogov.org
Scope Financial statement audit, single audit and Consulting & Airport/PFC
Audits/Compliance.
City of Louisville
749 Main St.
Louisville, CO 80027
2012-Present
Contact Kim Baker, Senior Accountant | 303.335.4505 | kimb@louisvilleco.gov
Scope Financial statement audit, single audit and business consulting.
City of Bozeman
PO Box 1230
Bozeman, MT 59771
2023-Present
Contact Aaron Funk, Controller | 406.582.2335 | afunk@bozeman.net
Scope Financial statement audit, single audit and AUP.
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CITY OF KALISPELL
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C. LITIGATION, ARBITRATION, CLAIMS AND TERMINATIONS
The firm and its partners, as well as our clients, may periodically be the subject of investigations, formal or
informal inquiries, or requests for information from a variety of regulatory agencies. It is the policy of the firm
not to discuss these matters, or any client-related matters, outside of the firm. It is the firm’s opinion that none
of these activities have a material impact to the firm.
Eide Bailly has a proven history of providing exceptional service. There have not been any claims filed by the firm
against any other jurisdiction as a result of a contract dispute, nor premature termination from a services
agreement.
D. CAPACITY AND INTENT TO PROCEED
We are confident we have the resources to meet your needs. Once engaged, we will meet with the City to discuss
timing needs and structure our commitment of resources accordingly. We have reviewed our workload and are
confident that through the size of our firm and our resources also across the firm, we have the capacity to serve
the City now and in the future. Although we are committed to other projects, we are adept at managing
workflow and projects and can be flexible in allocating staff time.
Company Qualifications
CONTINUING PROFESSIONAL EDUCATION REQUIREMENTS
Firmwide, our continuing professional education (CPE) program requires all professional staff obtain education
that exceeds the requirements of the AICPA and where applicable, Government Auditing Standards. The firm
places a strong emphasis on lifelong learning and recognizes the importance of developing our professionals to
best serve our clients. We continually provide yearly CPE credits for our staff at a rate higher than the industry
average. In addition, we regularly share information among the audit teams in different offices to ensure we are
providing clients with the latest thinking and best possible solutions.
Our government professionals obtain CPE through the following means:
• Government-specific seminars sponsored by the AICPA and GAQC.
• Seminars sponsored by the GFOA.
• Involvement with local chapters of the GFOA (we teach and attend GFOA conferences, regularly).
• Seminars specific to government issues taught by our experienced managers and partners.
By expanding our knowledge of issues important to government organizations, we can provide more in-depth,
knowledgeable solutions to our clients. Additional communication, webinars and training are provided
throughout the year on a variety of topics important to state and local governments.
CITY OF KALISPELL
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EXTERNAL QUALITY CONTROL REVIEW
Our membership with the AICPA requires a third-party peer review of our audit and accounting practice every
three years. Our most recent quality review included several government engagements and received a rating of
'Pass'. No letter of comments was issued.
CITY OF KALISPELL
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C. RANGE OF ACTIVITIES
Eide Bailly is a full-service CPA firm performing traditional CPA firm services of attest (audits, reviews,
compilations) and tax. We also have management advisory services including forensics, cybersecurity and
(Information Technology (IT), including value added reseller of accounting software, internal audit and many
other nontraditional services. Our core services offered include the following:
Audit & Assurance Tax
• Audits
• Single Audits
• Reviews
• Compilations
• Employee Benefit & Retirement Plan Audits
• International Financial Reporting Standards
• Agreed-Upon Procedures
• SEC Services
• System and Organization Controls (SOC 1, 2 & 3)
• Cost Segregation Studies & Fixed Asset Services
• Wealth Transition
• International Tax
• Low Income Housing Credits
• R&D Tax Incentives
• State & Local Tax
• Tax Authority Audit & Correspondence
• Tax Planning & Preparation
• Tax Research
Consulting
• COVID-19 Consulting
• Internal Audits
• Technology Consulting
• Enterprise Risk Management
• Financial Services
• Fraud & Forensic Advisory
• HR Consulting
• Business Valuation
• Transaction Advisory
D. LICENSE TO PRACTICE IN MONTANA
Eide Bailly and each of the professional staff assigned to the City are properly registered and licensed to practice
in Montana.
Firm Registrations:
Montana Secretary of State Registration Number – P128257
Montana State Board of Accountancy Permit Number – 204
A majority of states, including Montana, have adopted mobility legislation—a practice privilege that generally
permits a licensed CPA in good standing from a substantially equivalent state to practice outside of his or her
principal place of business without obtaining another license. All assigned key professional staff have complied
with government qualification standards, including government continuing education requirements.
Local Service, Unmatched Resources
A. GEOGRAPHY OF FIRM
National 80
MONTANA STAFF
Partners: 13 | Managers: 20
Seniors/Staff: 47
450
NORTH DAKOTA STAFF
Partners: 54 | Managers: 141
Seniors/Staff: 255
225
COLORADO STAFF
Partners: 30 | Managers: 81
Seniors/Staff: 114
B. LOCATION OF OFFICE
401 N. 31st St., Ste. 1120
Billings, MT 59103
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E. PARTNERS, MANAGERS AND SUPERVISORS
We’re passionate about our work—and your success. We have selected professionals for your service team who
are the right fit for your engagement, based on their knowledge and experience in the government industry.
Paul Kane will lead the engagement team and serve as the Audit Engagement Partner, with Brian Stavenger
serving as the Consulting Partner. Sara Kurtz will serve as the Quality Review Partner and Eric Berman will serve
as the GASB Technical Expert. Janeen Hathcock will serve as the Audit Senior Manager and Jill Morasko will
serve as the Audit Manager. These professionals are licensed to practice public accounting and bring strong
credentials and a desire to work with the City. If awarded these engagements, these individuals will serve as
your primary contacts. Additional resources will support the project team as necessary.
These professionals are licensed to practice public accounting and bring strong credentials and a desire to work
with the City. If awarded these engagements, these individuals will serve as your primary contacts. Additional
resources will support the project team as necessary.
Team Overview
We know the importance of a strong business relationship, so we keep staffing changes to a minimum year-to-
year. Eide Bailly has a high retention rate, allowing us to provide stability. The following information will
provide an overview of your service team.
CITY OF KALISPELL
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PAUL KANE, CPA
Partner
INSPIRATION: I find great fulfillment in the time I spend working and building
relationships with my clients. A favorite quote of mine is: "The key is to set realistic
customer expectations, and then not to just meet them, but to exceed them —
preferably in unexpected and helpful ways."
303.459.6758 | pkane@eidebailly.com
Paul provides audit and other assurance services, with a focus on local
and state governments, agencies and districts including counties,
cities and school districts. He also has experience with Uniform
Guidance, working with a variety of federal grants and agencies. Paul
liaisons clients and our staff to ensure that client needs are exceeded
and goals are met, efficiently and delivered as promised. Paul enjoys
learning as much as he can about the industries he serves so he
understands and can anticipate the key issues that affect his clients.
When you work with Paul, you can expect him to always be available.
He will take the time to understand your company, expectations,
needs and situation. Paul enjoys building relationships with his clients
and team, and works on-site throughout the audit to ensure issues
and questions are handled as they arise.
While Paul is not busy with work and other professional
commitments, he is a huge fan of music, (listening, not playing) and
thoroughly enjoys the live music scene Denver has to offer.
Additionally, he is a huge sports fan (both playing and watching) and
is a very passionate fan of both the Denver Nuggets and Broncos. He
also loves hanging out with his family and cherishes every minute he
gets to spend with his wife and four kids, who are growing up way too
fast!
Client Work
Paul has more than 20 years of public accounting experience
providing services to a variety of industries including government,
construction and real estate clients. He has worked with several real
estate private equity investment funds, some of which are considered
registered investment advisors.
Paul serves as the audit partner on the recently awarded audit of the
City of Bozeman.
Memberships
American Institute of Certified
Public Accountants
Colorado Society of Certified
Public Accountants
Construction Financial
Management Association
Colorado Government Finance
Officers Association
Designation/Licensures
Certified Public Accountant
Education
Bachelor of Science, Accounting -
University of Colorado, Denver,
CO
Community
Denver Metro Chamber
Leadership Foundation - Impact
Denver Class of 2015, Graduate
Junior Achievement, Volunteer
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BRIAN R. STAVENGER, CPA
Partner
INSPIRATION: Eide Bailly is a great place to work because the firm gives our staff the
keys to drive their own career. The firm provides opportunities for growth and doles out
responsibility to young staff at an earlier time than most firms.
701.239.8518 | bstavenger@eidebailly.com
Brian joined the firm in 2001 and has devoted much of his career with Eide
Bailly serving the accounting needs of public sector clients, including local
government entities, public schools, charter schools, as well as colleges,
universities and utility cooperatives. To support the firm’s commitment to
staff development, he offers CPE opportunities by instructing firmwide
government trainings. Brian is a regular speaker on topics impacting local
governments, including how to prepare for a government audit and how to
read the financial statements as a governing board member.
When you work with Brian, you get a partner who is intent on listening and
allowing you to fully articulate your concerns. While he may seem quiet at
times, it also means your goals will be completely understood and
attended to. He will always be responsive to inquiries, as he also takes
pride in responding within 24 hours to each of his clients.
Away from the office, you will often find Brian at the soccer field, hockey
rink, or lacrosse field either cheering on his two kids or volunteering as an
assistant coach when needed. He and his wife both love to travel and make
a point of escaping town a few times each year (sometimes they even
bring the kids). During the summer, the whole family relishes time at the
lake or simply gathering around the bonfire on the back patio with friends.
Client Work
Provides audit services to local governments (counties, cities and schools),
state agencies and rural electric cooperatives. Several of his local
government clients prepare an ACFR and receive the GFOA’s Certificate of
Achievement for Excellence in Financial Reporting (COA).
Performs financial feasibility studies for cities, institutions of higher
education, private K-12 schools and charter schools.
Promotes staff development by hosting firmwide trainings on government
accounting best practices.
Served as the audit partner on Billings School District #2 for 10+ years, will
serve as partner on two recently-awarded, Montana school district
engagements and will assist as technical resource partner for the recently
awarded audit of the City of Bozeman.
Memberships
North Dakota Society of Certified
Public Accountants
American Institute of Certified
Public Accountants
Government Finance Officers
Association Certificate of
Achievement for Excellence in
Financial Reporting Program
Reviewer
Designation/Licensures
Certified Public Accountant
Education
Bachelor of Arts, Accounting -
Gustavus Adolphus College, St.
Peter, MN
Community
Moorhead Youth Lacrosse
Association, Treasurer
Moorhead Youth Hockey
Association, Past Board President
Cass County Historical Society,
Past Board President
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SARA A. KURTZ, CPA
Partner
INSPIRATION: I enjoy working with my clients because they have a passion for what
they do. They have a genuine interest in making their business the best that it can be
and value recommendations or advice we provide.
970.999.8928 | skurtz@eidebailly.com
Sara has 20 years of audit experience and has specialized in the
government industry throughout her career. She provides technical and
accounting expertise for government clients that need to understand the
professional accounting standards they must adhere to in order to issue
General Accepted Accounting Principles (GAAP) financial statements as
well as single audit requirements. As continuous education and training is
crucial within the government sector, Sara is a firm resource for staff
training, and she supervises audits during all phases of the engagement
and participates in the report delivery. She is the former chair of Eide
Bailly's Government Technical Issues Committee and continues to remain
responsible for reviewing new guidance and providing firmwide training on
these topics.
Sara's working style is collaborative. She listens to clients' needs, concerns
and challenges and works with them to find a solution, delivering
information and explanations a way that makes sense. Sara believes that
timely communication is key during an audit and she demonstrates this by
being on-site with the client and team, facilitating the successful
completion of the audit. She is accessible to clients not only during an
audit, but throughout the year.
Client Work
Works with clients on best practices to implement controls to prevent
single audit findings, such as reducing one client's findings from more than
25 to less than five over the process of several years.
Provides training to clients and staff on government reporting/annual
report topics.
Works with clients on special projects to evaluate their internal controls
and provide recommendations for improvements.
Serves internal clients by researching technical topics and providing
recommendations as part of the National Assurance Office.
Memberships
American Institute of Certified
Public Accountants
Colorado Society of Certified
Public Accountants
Designation/Licensures
Certified Public Accountant
Education
Bachelor of Arts, Accounting –
University of Northern Iowa,
Cedar Falls, IA
Community
Colorado Government Finance
Officers Association Education
Committee, Member and
Presenter at annual conferences
Colorado Society of Certified
Public Accountants
Governmental Issues Committee,
Member
American Institute of Certified
Public Accountants Technical
Issues Committee Telephonic,
Member
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ERIC S. BERMAN, CPA, CGMA
Partner
INSPIRATION: I enjoy helping governments achieve the next level of operations,
transparency and knowledge. As I like to say, think like a taxpayer, because you are
one. We're all working for the same goals, and if our clients succeed, we succeed.
208.424.3524 | eberman@eidebailly.com
Eric is a nationally recognized speaker, author, thought leader and auditor
with a wealth of government client experience. He brings a unique
perspective to the firm's clients as a former Deputy Comptroller of the
Commonwealth of Massachusetts, a chief financial officer of a state agency
and an audit partner with clients ranging from a well-known stadium to
statewide pension systems.
Eric's unique background and decades of government accounting, auditing
and controllership experience allows his clients to meet their standards
and goals and achieve new success along the way. He's been recognized
with several major awards for his public service and work, and his insight
means he can help you solve problems before they happen.
In his free time, Eric enjoys spending time with family, especially his
grandsons! He enjoys watching Boston sports — Red Sox, Patriots, Celtics
and Bruins — but his grandchildren top them all.
Client Work
Helps government entities across the U.S. understand and implement
GASB standards.
Consults with state and local government clients with government
accounting, auditing and controllership services.
Assists clients in earning the GFOA COA.
Authored the entire government library of reference information and audit
programs for CCH Wolters Kluwer.
Served as Deputy Comptroller of the Commonwealth of Massachusetts for
11 years and held the position of Chief Financial Officer of the
Massachusetts Water Pollution Abatement Trust for five years.
Memberships
Represented AGA as the Vice
Chairman of the GASAC to GASB
AGA Boston chapter president
and host of the 2017 Professional
Development Training
Conference
AGA National Treasurer, former
AGA Audit Committee chair and
former chair of the AGA Financial
Management Standards Board
California Society of Certified
Public Accountants,
Governmental Accounting and
Audit Committee
Massachusetts Society of
Certified Public Accountants,
Governmental Accounting and
Auditing Committee
Designation/Licensures
Certified Public Accountant
Chartered Global Management
Accountant
Education
Master of Science, Accountancy -
Bentley University, Waltham, MA
Bachelor of Science, Broadcast
Journalism - Boston University,
MA
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JANEEN HATHCOCK, CPA
Senior Manager
INSPIRATION: My goal is to provide our clients with the ability to be successful in
their business by working together as a team. I know that by becoming partners in the
journey and keeping the same goals in mind, we can be unstoppable.
303.586.8548 | jhathcock@eidebailly.com
Janeen has over nine years of public accounting experience and more
than 16 years in the accounting profession. Janeen completed her
fellowship with the GASB on December 31, 2021, where she spent
two years working on various financial reporting projects and learning
the standard setting process. She has worked on multiple sides of the
audit and thus can provide a unique perspective. She conducts audits
in accordance with GAGAS (Yellow Book) and Uniform Guidance. She
is part of a team who conduct audits for a variety of government
entities, such as counties, cities and towns. Janeen performs both
internal and external trainings on a variety of accounting and audit
topics.
When you work with Janeen, you can expect her to listen to what you
need. If she doesn't know the answer, you can count on her to find
out and provide you with the best resources. You can expect to
develop a positive relationship built on respect and trust.
Outside of work, Janeen enjoys spending time with her family and
reading. She is the mother of two boys, one in college and one a
senior in high school. She loves to travel and learn about the history
and uniqueness of the places she visits.
Client Work
Provides quality control for all of Colorado's GASB 68 and OPEB
requirements.
Facilitates external client trainings related to single audits for clients
that have little to no experience going through a single audit.
Memberships
American Institute of Certified
Public Accountants
Designation/Licensures
Certified Public Accountant
Education
Bachelor of Science in Business,
Accounting - Regis University, CO
Associate in Arts - College of
Southern Nevada, Las Vegas, NV
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JILL MORASKO, CPA
Manager
406.896.2402 | jmorasko@eidebailly.com
Jill has more than seven years of experience with government audits,
conducting financial statement and compliance audits of State of
Montana executive and judicial branch agencies.
Jill also has experience in single audits and determining compliance
with a wide range of federal and state laws, policies and regulations.
Her additional experience is in the nonprofit industry, where she
reviews financial data and note information for the Schedule of
Federal Awards in accordance with Uniform Guidance requirements.
Client Work
Ensures compliance with complex federal and state laws, regulations,
grant award requirements and office policies.
Compiles financial data and note information for the Schedule of
Federal Awards in accordance with Uniform Guidance requirements.
Performs financial analysis and review of the financial statements and
footnotes.
Memberships
American Institute of Certified
Public Accountants
Designation/Licensures
Certified Public Accountant
Education
Master of Accountancy –
University of Montana, Missoula,
MT
Bachelor of Science, Business
Administration and Accounting –
University of Montana, Missoula,
MT
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INSPIRED TO BE OUR
TRUE, AUTHENTIC SELVES
We started our Diversity, Equity & Inclusion (DEI) Initiative at
Eide Bailly because, simply put, it’s the right thing to do. We’re
not just an accounting firm; we’re friends, families and
neighbors in the communities we live in and serve, and it’s our
responsibility to foster an inclusive and diverse work
environment that reflects those communities.
How do we define diversity, equity & inclusion?
We define diversity as a variety of thoughts, abilities,
experiences and backgrounds. Inclusion is embracing these
differences to create a culture where we feel free to be our
authentic selves. Equity seeks to ensure fair treatment, equality
of opportunity and advancement, and fairness in access to
information and resources for all. In order to do that, we must
recognize that some of us face added barriers to success, and
equity can only happen when we address those barriers.
PILLARS OF OUR MISSION
Words don’t mean much without action behind them. Here are
the ways we are working to advance our mission:
Commitment from Leadership
Our commitment to DEI starts with our CEO and firm leaders
and is driven by our belief that a diverse workforce is the best
workforce and will enhance our future readiness.
Continuous Education and Development
We offer ongoing training, education and resources to foster a
culture of diverse thoughts and perspectives.
Recruitment and Retention Efforts
We focus on recruiting, developing and retaining professionals
who are reflective of the communities we serve.
Engaging Staff
We empower all employees to contribute to an inclusive culture
by participating in Employee Resource Groups (ERG), attending
DEI events and giving back to the community.
Our initiative is managed by a DEI Council
made up of staff and partners from across the
firm to implement, discuss and evaluate our
efforts as a firm.
Employee Resource Groups
• DiversifEIDE (People of Color)
• MyEidePride (LGBTQIA+)
• Women Empowered (Women)
• Veterans
MISSION
To create a diverse, equitable and inclusive
Different people and different
perspectives help
opportunities for
our people and successes for the firm.
VISION
people can be their full authentic selves.
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Staff Continuity
To help ensure a strong business relationship and to minimize disruptions, we keep staffing changes to a
minimum. Compared to the national average, we experience a higher retention rate, which translates to
providing our clients with consistent service teams. We will strive for continuity of staff for your engagement.
With this continuity comes quality as team members’ knowledge of your organization grows from year to year.
Should the need arise to change any of the key engagement personnel, we will notify you in writing and provide
the qualifications of the proposed replacement. Upon your approval, new personnel will join your team.
Multi-Year Approach
We attempt to retain the majority of the audit team in order to develop a historical perspective of the operating
and control environment of the City. This historical perspective allows us a deeper understanding of the risks
surrounding the City and the opportunity to perform a thorough audit without a learning curve. The result of our
preliminary review is a planned calendar of audit events, timing and expectations based on the budgets and
related materials, organizational charts, manuals and programs, and financial and other management
information systems.
We also have the resources within our offices to change your current engagement team while retaining the
historical perspective that we gain over the years, if you think you would benefit from auditor rotation. The
individuals in Eide Bailly’s government group have extensive experience in the industry and benefit from the
firm’s focus on continuing education. Our government professionals are well-positioned in organizations
associated with government entities, such as the AICPA and GAQC, the primary purpose of which is to promote
the importance of quality government audits. We have also held leadership roles in the GFOA.
We will be available to the City throughout the year as a resource to answer questions, have discussions and
confirm the appropriate accounting treatment for unique or infrequent transactions.
F. SIMILAR EXPERIENCE
Please see our references in b. Referrals and References of the Relevant Company Experience section.
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Contract Understanding and Approach
A. UNDERSTANDING OF SCOPE OF WORK
UNDERSTANDING YOUR NEEDS
Based on the issued RFP and prior conversations with the City, we understand your needs as outlined below:
• Annual financial statement audit of the City of the years ending June 30, 2023-2025, conducted in
accordance with Generally Accepted Auditing Standards (GAAS), Government Auditing Standards and
the standards defined within AICPA Audit & Accounting Guide-Audits of State and Local Government
Units (ASLGU).
• Single audit, as needed.
Commitment to the City
We welcome the opportunity to be your professional services firm and commit to providing the services listed
above. In addition, we will:
• Provide ongoing help for questions, concerns and problems that arise whether they are anticipated or
unexpected.
• Provide Paul Kane and Brian Stavenger as your specific client service contacts who will coordinate your
service team and provide managers and staff to assist management with informed and accurate
solutions.
• Provide experienced professionals who possess the depth and expertise to handle significant or
complicated issues.
When you work with Eide Bailly, your experience will be different than working with other CPA firms. Our
professionals are thought leaders who strive to become your trusted business advisors by delivering insightful
advice and industry knowledge.
B. POTENTIAL DIFFICULT ISSUES
Eide Bailly understands the potential for problems that may arise while conducting our audit and we are
prepared to address any issues with you as they arise. We are committed to making our relationships work and
do what it takes to make our clients feel comfortable even if it means late-night conference calls.
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We will also work our schedule so when we finish scheduled
fieldwork, we will be 95% done with the audit and any wrap-up
will be related to report issues. We believe we have a system in
place that, combined with the experience we have gained, will
translate to meeting your reporting deadlines with a smooth and
efficient audit.
Our methods to mitigate any difficulties that arise follows. We are
licensed to practice in the state of Montana and experienced in
working with other Montana government entities; as a result, we
do not have concerns about providing services within Flathead
County.
C. METHODS TO MITIGATE DIFFICULTIES
Communication before, during and after the audit is a hallmark of
Eide Bailly’s process. Our communication style is one of
collaboration, where we'll work together to find the best solution
for the City. This approach assures the proper communication
channels exist while also avoiding frustrating last-minute
surprises. We view all parties as an important part of the overall
process of providing audit services.
As part of our collaborative approach, we'll meet with
management during planning to gain a thorough understanding
of the City’s expectations and any changes to the organization.
During the audit process, we'll communicate progress through
oral and written status updates and discuss significant issues as
they arise. At the conclusion of the engagement, we'll jointly
evaluate the effectiveness of the audit and any recommendations
for changes in the future.
As noted above, our service model does not view the audit
process as an annual “event.” Instead, we communicate with
management on an ongoing basis and keep you apprised of
accounting pronouncements, changes in regulations and other
changes that may impact the City.
Our communication with management will include the following:
• Personal interaction between the team serving the City
and management in the form of meetings, phone calls
and emails. We like to be involved with clients
throughout the year to help address ongoing issues that
impact your operations, and schedule quarterly calls to
stay in touch. Our preferred communication is through
face-to-face meetings, or at least phone conversations.
We value your time and attempt to keep meetings
relevant, appropriate and productive.
SMOOTH TRANSITION
We understand the transition from one
professional services firm to another can cause
some inconvenience to management and staff.
We realize the decision to change service
providers is not one to be taken lightly. Our
goal is to make the transition as smooth as
possible. We'll manage the transition to
minimize time demands on your employees
and ensure a timely first year audit in
accordance with professional standards.
Planning
Spend more time in the planning stages of the
audit to understand accounting and
operational processes.
Prepared by Client List (PBC)
Provide an extensive and detailed PBC list,
through Suralink, of schedules, documents
and confirmations, starting with items already
prepared.
Prior Workpapers
Review prior workpapers to understand
schedules and other documentation. We will
modify our requests to match what you have
seen in the past.
Issue Resolution
Identify issues during the planning stage and
resolve before starting the audit.
First-Year Investment
Manage the first-year audit to minimize time
demands and ensure a timely audit. We know
the first-year hours will be 10-15% higher and
believe these hours are an investment in a
multi-year engagement.
More Time in the Field
Partners and managers spend more time in
the field the first year, so issues are resolved
in the field and not at the end of the audit.
No Surprises
Have an ‘open door’ / no ‘gotchas’ policy.
Communication
Continue ongoing communications during the
audit process and through the year.
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• Status updates as audits progress with appropriate members of management through oral and written
communications.
• Ongoing communication of important regulatory changes and accounting updates occurs via email,
shortly after the changes are announced or finalized.
• Occasional webinars and seminars on topics of critical interest to our government clients will
communicate important information for management to be aware of.
Under this communications approach, we will discuss specific preferences you have in communicating with us
including frequency and style. As we get to know your organization, our process will become increasingly
customized to the City, yet it will still follow the framework we have put together as guidelines our staff are
expected to embrace as part of our service culture.
Most audits have issues that arise from time to time; however, we will resolve these issues through frequent
communications with you, and by helping you with implementation issues, adjusting journal entries or
communications with GASB staff.
We're experienced in transitioning many clients from predecessor professional service providers. In each case,
we worked closely with client personnel and accomplished the transition with minimal disruption of client
activities. We further minimize the disruption to the City by staffing our first year engagement with higher level
resources, including managers and partners.
Maintaining Positive Relationships
Our number one goal is to meet the City’s expectations while
providing the necessary required audit services. We work with our
teams to provide the best client service and select team members
based on that goal. However, there are times we may not meet that
expectation or fall short in client satisfaction. When those times
occur, we admit our shortcomings and meet with management to
determine on an agreed upon plan to improve those areas. As the
Engagement Partner Paul Kane is responsible in monitoring the
City’s satisfaction of our services and will meet with your
management during the year to evaluate the overall satisfaction and
make any necessary adjustments.
Our clients know and respect us for our positive culture — we’re also
proud to be ranked #14 in the 2023 Vault Accounting 25 list for
client interaction.
Over the past three years, Eide Bailly’s Net Promoter Score (NPS) has
averaged 65, with the most recent score being 70. For context, the
professional survey firm ClearlyRated reports an average NPS of 39
for the accounting industry. While we know our score reflects a high
level of satisfaction, we're committed to consistent and regular
improvements to drive continual improvements for our client base.
UNMATCHED
CLIENT SERVICE IS
OUR PASSION
Eide Bailly has achieved a Net
Promoter Score of more than 70.
(The industry average is 39.)
We’re committed to raising the bar for
clients like the City to experience
consistent and regular improvements
in the quality of service we deliver.
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Approach to Contract Management
A. OUR APPROACH
AUDIT METHODOLOGY
At Eide Bailly, we promise you a better overall experience. While we recognize that multiple firms are capable of
accomplishing the objectives of an audit, Eide Bailly appreciates that every situation and every organization is
different, and we tailor our approach based on the needs of each client.
Eide Bailly values its business relationships and demonstrates this through our partner and manager
involvement. Our senior level professionals are involved with our clients and accessible throughout the year.
They do not delegate all tasks to staff, but rather stay involved on-site during fieldwork and stay connected
throughout the year. This approach delivers the greatest benefit to our clients because we are able to stay
abreast of changes in and updates to our client’s operating environment and partner with them to achieve
optimal results.
Our clients experience a communication approach that stands apart in both style and frequency. Because we
recognize that effective communication is critical throughout the entire audit process, our service and
communication approach begins with planning and continues throughout the year.
Additionally, we take a collaborative communication approach with our clients and include them in the process
as our peers. Our clients offer a wealth of knowledge and information about their organization, and
communicating with them as a business partner ultimately produces the best outcome.
Prior to beginning the engagement, we will discuss with management:
• The engagement timeline.
• The audit approach and process.
• Additional considerations that may affect scope, schedules and work papers to be prepared by your
personnel.
Upon appointment as your auditor, we will discuss the audit schedules and work with you to ensure the timeline
meets your needs and makes the most effective use of your staff members’ time.
AUDIT WORK PLAN
Our audit approach is designed for collaboration and optimal results. It consists of five major components:
Planning, Interim, Fieldwork, Reporting and Ongoing Communication. If awarded, we will discuss with
management our proposed schedule, but we also have the flexibility to make any changes to meet reporting
deadlines. The objectives of each component are described in the following pages:
Planning Interim Work Fieldwork Reporting Ongoing Communication
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PLANNING
• Discuss and finalize the engagement timeline, audit approach and process.
• Discuss risks and concerns of the management and accounting staff, including the City Council.
• Evaluate the nature of the operating environment (e.g., changes in volume, degree of system
and reporting centralization, sensitivity of processed data, impact on critical business
processes, potential financial impacts, planning conversions and economic and regulatory
environment).
• Review interim financial information and reports to identify significant risks and changes.
• Review significant estimate areas and consider underlying assumptions.
• Gain an understanding of the City, its reporting units and their environments.
• Document internal control systems, including IT, and related changes from prior periods.
• Consider fraud, risk of noncompliance, illegal acts, abuse, etc.
• Assess audit risk and identify of potential audit issues.
• Assess materiality and testing scopes, to the extent possible, and present audit plan.
• Prepare and communicate audit request lists and work papers.
• Develop expectations regarding timing and audit progress.
• Gain understanding of single audit programs and perform an analysis of potential major federal
programs.
INTERIM WORK: SINGLE AUDIT (AS NEEDED)
Phase I: Risk Assessment and Planning
This phase encompasses the planning and risk assessment of your federal programs. The planning
phase sets the tone as well as set the stage for an efficient and effective single audit. We will work
closely with management to properly identify federal programs and clusters to determine the major
programs to be tested. The steps include:
• Determine grant awards and funding increments.
• Determine the Type A and Type B thresholds.
• Perform a review of the past two single audits and document the program risk to determine
risk, for any programs above the threshold (Type A).
• Make final determination of major programs to be tested.
• Review applicable Uniform Guidance Compliance Supplement for any unusual items and
determine direct and material compliance areas for each major program.
Phase II: Major Program Testing
After making the major program determination, we’ll test the major programs through the following
steps:
• Obtain audit steps from the Compliance Supplement.
• Obtain the process and controls related to the direct and material compliance areas identified
during planning. The controls for each area need to address the five components of Committee
of Sponsoring Organizations of the Treadway Commission (COSO) as required by Uniform
Guidance.
• Select samples for control and compliance testing.
• Perform control testing for effectiveness and compliance testing of selected transactions.
• Report material weaknesses or material noncompliance to management.
• Hold periodic status meetings and discuss potential findings with management while our
auditors are in the field.
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Phase III: Assessment and Reporting
The above steps are based on the preliminary Schedule of Expenditures of Federal Awards (SEFA).
Once the SEFA has been finalized, we will determine if any additional major programs are to be
tested. We will:
• Perform major program testing steps for any newly identified programs.
• Review prior findings, if any, and determine if findings were cleared by management and do
not need to be reported during the current year.
• Prepare the Schedule of Findings and Questioned Costs.
• Hold an exit conference with management and key grant personnel, and provide a draft report
of the single audit and Yellow Book findings required to be reported. The Manager and
Engagement Partner review the findings prior to the exit conference.
INTERIM WORK: FINANCIAL STATEMENT
• Communicate with management to determine internal controls, perform walk-throughs and to
discuss any potential audit issues.
• Determine audit procedures by area, based on results of planning and risk assessment.
• Determine confirmation needs.
• Prepare listing of audit information requested from the City.
• Review minutes, resolutions and ordinances.
• Perform tests of legal compliance.
• Provide weekly updates to City staff.
• Hold exit conference with management.
FINAL FIELDWORK
• Audit areas based on risk assessment.
• Obtain and prepare schedules and analyses supporting the financial information.
• Discuss findings with management, if any.
• Discuss proposed journal entries with management, if any.
• Finalize single audit testing.
• Provide weekly updates to City staff.
• Hold exit conference with management.
REPORTING
• Review of financial statements by the Engagement Partner.
• Review of financial statements by the Technical Review Partner to obtain a “second opinion”
on the completeness and adequacy of financial statement disclosures and audit procedures.
• Complete management letters and review with management.
• Prepare other communications to management and the Board.
• Assist with preparation of the Data Collection Form and the reporting package for submission
to the Federal Audit Clearinghouse.
• Present to the Board at its regularly scheduled meeting, if requested.
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ONGOING COMMUNICATION
• Obtain interim financial statements throughout the year for review.
• Analyze significant changes and identify areas to further tailor our audit plans and keep us up
to date with continuing changes.
• Compare interim results to year-end results for the past few years to identify potential issues in
the financial reporting process.
• Participate periodically at your Board meetings, and any other meetings, upon request.
We take a “no surprises” approach to our engagements. We work closely with management and accounting
personnel throughout the audit process, hold weekly meetings to review open items and discuss potential accounting
or compliance issues and provide periodic written or oral reports on the status of the audit to representatives of the
City. At the end of fieldwork, we will hold an exit conference with management to discuss any potential findings and
come to a conclusion. We strive not to have additional findings subsequent to the exit conference.
Use of Technology
Eide Bailly staff utilizes progressive and effective software to streamline processes and make them as efficient as
possible. These technologies include:
Suralink
Years of dedicated service have helped us develop the skills, abilities and tools necessary to exceptionally
serve our clients. To aid in this process, we have researched ways to enhance our use of software to better
streamline the audit process and deliver state of the art technology solutions to our clients. Suralink is an
interactive Provided by Client (PBC) software solution aimed at improving the client experience for document
exchange. This addition to our suite of tools has the potential to save a substantial amount of time managing
PBC documents, creating increased efficiencies during your engagement.
Data Extraction Software
TeamMate: Our approach incorporates the use of TeamMate Analytics to maximize efficiency while
conducting a very effective audit. Through TeamMate, we can extract information from related databases
and create databases that check for duplicate payments, summarize payments, extract journal entries from
specific accounts, develop expectations for analytical procedures and recalculate system calculations, among
a host of other procedures developed by our audit team.
DataSnipper: Eide Bailly's audit approach is enhanced by the use of DataSnipper, a powerful Excel add-in that
improves efficiency and fosters effective auditing practices. This innovative tool allows us to leverage artificial
intelligence (AI) for automated document matching. With configurable templates for standardized audit
procedures, DataSnipper streamlines workpaper preparation and review while enhancing collaboration
within our audit practice.
CCH ProSystem fx Engagement by Wolters Kluwer
This software is used to perform the audit, retains the electronic workpapers and supporting documentation,
performs project tracking and facilitates quality engagement review.
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Flexibility of Services
Many of our clients are wondering about working on their audits remotely. Eide Bailly performs all
engagements in a paperless environment. As a technology-driven firm, we have seen no issues in performing
audit procedures off-site from our clients. We have taken advantage of technology, such as using Microsoft
Teams, which allows us to communicate with our clients face to face, while sharing screens, to make the
process as seamless as possible. We are utilizing Zoom to host webinars and town hall meetings to educate
and assist our clients on rapidly changing circumstances and how to successfully navigate those changes.
As a result, we have no concerns completing this audit remotely should the need arise. We will discuss with
management which approach, remote vs. on-site, works best for you.
Using Information Technology Auditors
Under auditing standards for any financial audit, we are required to obtain a sufficient understanding of the
accounting system and technology environment. It is our philosophy to not only meet but to exceed this
requirement through the involvement of our dedicated technology specialists as deemed appropriate.
Our IT methodology is based on AICPA guidelines, the internal controls framework prescribed by COSO, and the
best practices for technology controls as defined by the Control Objectives for Information and Related
Technology (COBIT) developed by the Information Systems Audit and Controls Association (ISACA). When
auditing the technology environment, we evaluate the general technology controls and specific application
controls that are in effect. This requires our IT auditors to consider how the accounting systems, infrastructure,
processes and people work individually and together to ensure financial records are being appropriately
processed and reported.
As such, we must work with IT staff to assess how the relevant systems and technology environment are
administered and supported, and with accounting staff to evaluate how financial data is processed and system
controls are maintained to enforce segregation of duties.
Eide Bailly has extensive experience integrating a variety of IT services into our audit engagements across
organizations in the public, private and nonprofit sectors. These experiences include auditing of IT operations,
security and software development as well as conducting both internal and external network vulnerability tests.
In addition, we have former federal and local law enforcement computer forensic specialists that utilize the
latest tools to analyze and investigate digital media for a wide range of purposes.
Our experience with audits of various entities requires adherence to various standards surrounding internal
controls including the COSO Framework, generally accepted government auditing standards (GAGAS) and
Federal Information System Controls Audit Manual (FISCAM). We work with our clients to help them understand
the updated COSO framework. We have conducted training on COSO and risk assessments nationwide and
believe we will add value and improve the effectiveness of the risk management, control and governance
processes.
Internal Control Structure
A significant aspect of the planning process involves understanding each reporting unit’s internal control
environment, including IT controls and, where relevant, testing of internal controls. The following is a summary
of our process regarding internal controls over financial reporting and compliance:
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Internal Controls over Financial Reporting
Our approach will start with any documentation related to internal controls already developed. We review this
to obtain an overview of the internal control system and then conduct interviews with your staff to complete
the documentation of our understanding related to internal controls and significant changes each year.
After conducting the interviews, we will evaluate the internal control system design and expected operating
effectiveness for significant areas depending on the reporting unit. By completing control testing in these areas,
we expect to reduce substantive testing to conduct an efficient audit. Our approach will be focused on key
process controls or overall system controls, rather than detailed control processes. We will also focus on key IT
related controls in areas such as revenue, payroll and claims, for more efficiency from an audit perspective
relative to the control process.
Our risk-based approach incorporates control testing and substantive tests of balances, where appropriate. In
certain areas that are not as significant, we will conduct the audit using a primarily substantive approach. Our
experience is that substantively auditing a balance rather than completing an extensive control test is often
more efficient and effective.
Internal Controls over Compliance
Our approach for internal controls over compliance associated with federal programs is similar to the approach
regarding internal controls over financial reporting related to accumulation, documentation and evaluation of
the control environment.
Test of controls over compliance are required for major federal programs. Our approach identifies key controls
applicable to direct and material compliance requirements for testing, as well as incorporating results from tests
of internal controls over financial reporting and IT.
The approach to gain an understanding of your internal controls includes:
• Interview City personnel.
• Review organizational charts, accounting and procedure manuals and programs.
• Complete internal control questionnaires.
• Write up system narratives.
• Evaluate items selected for testing.
• Review controls over financial information systems.
The timely completion of this work allows us to perform our work efficiently and promptly communicate any
potential recommendations.
In addition, our engagement approach is based on:
• Observations we believe will help achieve objectives. We are pleased to respond to inquiries about
financial or other business matters.
• The assistance to be provided by your personnel, including preparation of schedules and analyses of
accounts, will be discussed with the finance department. Timely completion of this work will assist us in
performing our work efficiently.
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Statistical Sampling
Sampling may be performed for tests of controls, compliance testing and substantive tests of certain accounts
and transactions. During our audit of basic financial statements, we will also select various transactions for
testing based on materiality assessed at the appropriate level. These transactions may include such items as
capital asset additions, expenditures, subsequent disbursements and subsequent receipts. We will be pleased to
discuss specific sample sizes and selection methods when they are determined, either during audit planning or
during fieldwork.
We will select the appropriate sample size to support our conclusions in compliance with laws and regulations.
We will use confirmations in the areas of cash and investments, receivables and other areas deemed necessary.
Analytical Procedures
Analytical procedures will be applied throughout general planning to improve our understanding of your
operations and to identify audit areas for increased attention. These will assist in planning the nature, timing
and extent of other procedures, and will be applied to all balance sheet, revenue/receipt and
expense/expenditure areas. Procedures include the comparison of current year to prior year and budget
amounts. Areas that show results different from those anticipated or planned will be further investigated to
determine the validity of the variance.
During Year-end Fieldwork: Analytical procedures are used to test whether errors affecting account
balances or classes of transactions have occurred by comparing the recorded amount with an independently
developed expectation of that amount. The expectation is developed in such a way that a significant
difference between the expectation and the recorded amount is indicative of a financial statement
misstatement, unless we can obtain and corroborate explanations for the difference. Analytical procedures
are a natural extension of our understanding of your business because the key factors that influence your
business may be expected to affect the financial data.
During Reporting: Our last step is to perform a final analytical review at the financial statement level to
ensure that we have gained a comprehensive understanding of the financial statements during the audit
engagement and to determine whether the financial statements are appropriately presented and contain
appropriate disclosures. Such final analytical procedures highlight and explain significant changes from the
previous year and ensure that such changes are consistent with the knowledge of your business and our
audit evidence. These procedures typically consider trends based on several previous years, instead of
comparison only with the prior period.
Drawing Audit Samples
We design our audit procedures for compliance using sampling procedures to result in sample items being
selected on a random basis. To accomplish this, we utilize our data extraction software, TeamMate Analytics, to
ensure our selections meet the established criteria while maintaining the random selection. We also use
samples across different audit areas to be as efficient as possible while testing the necessary items to get
comfortable with the applicable balances.
B. PLANNING, SCHEDULING, ESTIMATING AND MANAGING MANPOWER REQUIREMENTS
Our professionals are trained to anticipate, identify and respond to your needs in a timely manner. We will work
closely with your management team to customize our services to your needs. We believe in clear, up-front and
open communication with no surprises. We understand and will comply with the schedules and scope for the
audit, as outlined in your request, and will perform all work within the timeframes outlined.
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We focus on providing value beyond traditional assurance services. Clients tell us they appreciate our timeliness,
attention to detail, industry expertise and peer-to-peer approach. We are accessible and maintain client contact
with frequent phone calls, emails and meetings to discuss what is going on in your organization.
Our engagement structure and roles include the following:
Engagement Partner:
• Primary contact for the City.
• Responsible for directing the activities of the team, coordinating all services, and ensuring the timely
delivery of quality services
Consulting Partner:
• Additional resource for the City.
• Brings industry-specific knowledge and expertise to the engagement.
• Brings Montana-specific knowledge and expertise to the client as well due to his experience with various
Montana School District audits.
Technical Review Partner:
• Responsible for reviewing the draft financial statements, collaborating on technical issues that may
arise, and reviewing the work performed by the engagement partner
Senior Manager / Manager:
• Work with the engagement partners to coordinate tasks and ensure quality services.
• In-charge and responsible for assisting in completing audit work, including supervising any additional
team members working on the audit.
Senior Associate:
• Responsible for completing audit work, including supervising staff in the field to ensure the audit is
completed timely.
Associate:
• Works closely with the team to provide quality services.
C. MAINTAINING PERSONNEL TRAINING AND CERTIFICATION
Because we are committed to the government industry, we provide our professionals with specific, ongoing
training related to these industry issues. This investment ensures our people stay current on the unique
challenges and opportunities within their industries so they are in the best position to help clients address these
issues.
Please see Continuing Professional Education Requirements within the Company Qualifications section for
additional details.
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Proposal for Audit
A. WORK SCHEDULE
We understand your requested timeline and are committed to meeting your deadlines.
Eide Bailly commits to you that if your team is prepared for the audit when our team is in the field, we will meet
your deadlines. We will work closely with your team through the planning stages to clearly define expectations
and the items required from your team in order to facilitate an efficient audit to enable us to meet your
deadline.
The following tables identify the audit structure for fiscal year 2023, and fiscal years 2024 and 2025, for City
reports and the timing of each section, assuming information and documentation requests are received in a
timely manner.
FY2023 Engagement Timeline
Activity Timing
Planning October/November
Interim Audit Fieldwork December
Fieldwork January/February
Exit Conference February
Draft Reports Early March
Reporting Submitted by the third Monday in March
Ongoing Communication Throughout the Year
FY2024/FY2025 Engagement Timeline
Activity Timing
Planning June/July
Interim Audit Fieldwork August
Fieldwork October
Exit Conference November
Draft Reports Early December
Reporting Submitted by the third Monday in December
Ongoing Communication Throughout the Year
B. PROPOSED WORK METHODS
Please see Approach to Contract Management for our proposed work methods.
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C. SCHEDULE OF COSTS
EXPECTED FEES
Our fees are based on the complexity of the issue and the experience level of the staff members necessary to
address it. If you request additional services, we’ll obtain your agreement on fees before commencing work, so
there are no surprises or hidden fees.
We propose the following fees based on our understanding of the scope of work and the level of involvement of
City’s staff:
Engagement Services and Fees
Professional Services 2023 2024 2025
Annual Financial Statement Audit $48,125 $51,400 $54,000
Single Audit $9,500 $10,200 $11,000
Total Fees* $57,625 $61,600 $65,000
*Fees include one major program to be tested. Additional single audit programs requiring testing after performing
our major program determination will be billed at a price of $9,500 per program for FY2023, $10,200 for FY2024
and $11,000 for FY2025.
The fees are contingent upon no major changes to the City (for example, but not limited to, staff turnover and
new software systems). The fees also assume that the City will be responsible for the full preparation of the
ACFR. The fees could also be modified if significant accounting and auditing rule changes and procedures do not
remain consistent with current requirements.
Estimated Total Numbers of Hours
Out-of-Pocket Fees
In addition to the professional fees listed above, you’ll be billed for actual out-of-pocket expenses such as
mileage, lodging and meals. These expenses will be capped at $10,000 for 2023, $10,800 for 2024 and $11,600
for 2025.
Billing Policy Regarding Telephone Inquiries
We know clients appreciate access to all their service team members. We embrace this opportunity for constant
communication and will ensure our team members are available when you have questions and issues. This
service is included in the scope of the engagement. If a particular issue surfaces that falls outside the scope of
this engagement, we’ll bring it to your attention and obtain approval before proceeding.
Staff Level Hours
Partner 32
Manager 60
Senior Associate 141
Associate 147
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Manner of Payment
Invoices are presented as the work progresses, with an initial invoice at the completion of the interim fieldwork,
a second invoice at the completion of fieldwork and a final invoice following issuance of the audit report.
Other Factors
CURRENT CONTRACT AND ABILITY TO PROCEED PROMPTLY
As previously mentioned, we are confident we have the resources to meet your needs. Once engaged, we will
meet with the City to discuss timing needs and structure our commitment of resources accordingly. We have
reviewed our workload and are confident that through the size of our firm and our resources also across the firm,
we have the capacity to serve the City now and in the future. Although we are committed to other projects, we
are adept at managing workflow and projects and can be flexible in allocating staff time.
We are able to proceed promptly upon award, following contract negotiation, and signing and acceptance of an
engagement letter between Eide Bailly and the City.
WILLINGNESS TO ADHERE TO CITY’S NEEDS AND REQUIREMENTS
We have reviewed your RFP, including the scope of work and all requirements, in detail, and affirm we are able
to meet your needs. Please note that in order to ensure compliance with applicable professional standards, the
firm will also require the City to sign an annual engagement letter on commercially reasonable terms to be
negotiated in addition to the requested exceptions described herein.
QUALITY AND VALUE OF SERVICE
EXPERIENCE THE EIDE BAILLY DIFFERENCE
The value of being an Eide Bailly client is that we offer you the best of
all worlds. Since we are a full-service firm, you will have multiple
industry specialists available when you need them, but your service
team will always be client focused. You will experience partner
involvement during all phases of the engagement, as well as
throughout the year. At Eide Bailly, we promise our clients an
experience, second to none, where they feel understood, connected
and confident.
Understood
You have goals and dreams. We’re inspired to help you achieve those
goals now and in the future. By applying our technical and industry
knowledge, we make the complex simple.
Connected
Our professionals bring their expertise and thought leadership to every interaction with you. You'll benefit from
new ideas, opportunities and solutions as they happen. We’ll connect you with the right resources and deliver
comprehensive solutions in a respectful, peer-to-peer approach. We keep the answers within your reach.
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Confident
With Eide Bailly beside you, you’ll feel confident addressing challenges and embracing opportunities as they
arise. We go the extra mile to deliver unmatched solutions for your business because your success is our
success.
Our Culture
It’s no secret that culture speaks volumes about a company. Some companies
stand for honesty, trust, accountability, respect and integrity. Others value passion,
teamwork, innovation and superior customer service. At Eide Bailly, these values
and more are at the forefront of our business.
Culture has been the unshakable foundation underpinning 100 years of growth and
innovation. Without it, Eide Bailly would be just a name, instead of the symbol for
‘business done right’ that it is today. Our clients know and respect us for our
positive culture — we’re also proud to be ranked as a top 10 firm in the Vault
2024 Accounting 25 list for both our culture and for client interaction.
Additional Resources
LET US HELP YOU WITH MORE
We are leaders in the government industry, offering valuable perspectives beyond our core strength of accounting
and tax compliance. We are business advisors who want to help guide the strategy and operations of your
organization, and we will make sure you feel connected and understand the process. Our professionals work
closely together so you receive valuable service from people who understand your needs and know your business.
When you work with us, you will have access to the knowledge and talents of more than 3,000 professionals
across our firm. This includes specialized tax knowledge, a full spectrum of audit/assurance services and our
many specialized services, such as:
Government Advisory Services
Running a government can be rewarding,
challenging and exhausting all at the same
time. The responsibility of handling public
money coupled with increased scrutiny of
public expenditures make accounting and
finance decisions incredibly important, but
balancing the day-to-day needs of these areas
with big-picture thinking can be difficult.
You don’t have to carry this burden alone.
Advisory services can relieve the stress of
critical government functions that you either
don’t want to do or don't have the deep
expertise on staff to complete successfully. Our outsourcing solutions can make your life easier so you can focus
on your operations while saving money.
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Cybersecurity
Our professionals have deep IT backgrounds, specializing in a broad range of security services and allowing us to
tailor solutions to your needs. We work with every level of your organization — your boards and executives,
technical IT admins and general users — to provide insight and guidance so you can be confident your data is
protected.
IT Consulting
Business planning and technology strategy go hand-in-hand, like having a good offense and defense. You cannot
win the game without planning for both. Whether you want a better way to power your decision making, a
simpler way to run your organization or you just want to see a return on your technology, a solid strategy always
comes first. Our consultants will help you define your goals and needs so your technology game plan keeps you
winning.
Forensic Accounting
We have seasoned professionals with years of relevant investigative experience. Our forensic accountants are
experienced in assisting with internal, civil, criminal and insurance recovery investigations related to allegations
of theft, fraud and accounting irregularities. The forensic methodologies and technology used by our team of
specialists help get to the facts of these situations and are court proven. We understand the urgency of resolving
these types of matters and deliver a quality work product in an efficient and timely manner.
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The Right Choice for the City of Kalispell
BUILDING A SUCCESSFUL RELATIONSHIP
To us, work is not just work; we see it as a chance to help you solve problems, achieve goals and pursue passions.
After thoughtfully reviewing your needs and taking the time to understand your business, we think we are the
best fit for this opportunity.
We can connect you with the knowledge, resources and solutions that help bring confidence to your business
decisions.
If you have questions or would like additional information, do not hesitate to contact us. We want to make sure
you have everything you need to make your decision.
Paul Kane, CPA
Partner
303.459.6758
pkane@eidebailly.com
Brian Stavenger, CPA
Partner
701.239.8518
bstavenger@eidebailly.com
We Want to Work with You
We are driven to help clients take on the now and the next with inspired ideas, solutions and results. We look
forward to working with you.