craig henderson mike maggard yolanda ochoa ana vigil
TRANSCRIPT
COMMUNITY ACTION PARTNERSHIP of KERN BOARD OF DIRECTORS
AUDIT & PENSION COMMITTEE MEETING 5005 Business Park North
April 12, 2018 12:00 p.m.
AGENDA
1. Call to Order
2. Roll Call
Craig Henderson Mike Maggard Yolanda Ochoa Ana Vigil
3. Approval of Agenda
4. Public Forum: (The public may address the Committee on items not on the agenda.Speakers are limited to 3 minutes. If more than one person wishes to address the sametopic, the total group time for the topic will be 10 minutes. Please state your name beforemaking your presentation.)
5. New Business
a. Brown Armstrong’s Plan for the 2018 Audits – Christine Anami, Chief Financial Officerand Brooke Baird and Andrew Paulden from Brown Armstrong – Info Item (p. 3-12)
b. Renewal of Audit Services Agreement (Brown Armstrong) – Christine Anami, ChiefFinancial Officer – Action Item (p. 13-17)
c. State Controller’s Office Letter regarding February 28, 2017 Audit – Christine Anami,Chief Financial Officer – Info Item (p. 18-19)
d. CACFP Triannual Review Outcome – Jerry Meade, PDM Administrator – Info Item (p.20-24)
e. CSD Letter Regarding Expenditure Performance for the 2016 LIHEAP Allocation –Margaret Palmer, Energy Program Administrator – Info Item (p. 25)
f. CSD Letter Regarding Contract Performance for the 2015 LIWP Contract 15K-6006 –Margaret Palmer, Energy Program Administrator – Info Item (p. 26-27)
g. First 5 Kern Letter Regarding the Annual Administrative Review of East Kern FamilyResource Center on March 13, 2018– Carmen Segovia, Director of Health & Nutrition –Info Item (p. 28-29)
1
Community Action Partnership of Kern Audit & Pension Committee Meeting Agenda April 12, 2018 Page 2 6. Committee Member Comments
7. Next Scheduled Meeting
Audit Committee Meeting Thursday, August 2, 2018 12:00 p.m. 5005 Business Park North Bakersfield, California 93309
8. Adjournment
This is to certify that this Agenda notice was posted in the lobby of the CAPK Administrative Office at 5005 Business Park North, Bakersfield, and online at www.capk.org by 5:00pm on April 9, 2018. Paula Daoutis, Administrative Coordinator
2
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wn A
rmstr
ong
Accounta
ncy C
orp
ora
tion
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Conta
cts
:
A
ndre
w P
auld
en, C
PA
Bro
oke B
air
d, C
PA
3
2
Apri
l 1
2, 2
01
8
We a
re p
leased t
o h
ave t
he o
pport
unit
y t
o p
resent
to y
ou o
ur
pla
n f
or
the a
ud
it o
f th
e
Com
munit
y A
cti
on P
art
ners
hip
of
Kern
(C
APK
) fo
r th
e y
ear
endin
g F
ebru
ary
28
, 2
01
8.
This
pre
senta
tion h
as b
een p
repare
d t
o d
iscuss t
he s
cop
e o
f th
e a
ud
it.
We look f
orw
ard
to p
resenti
ng t
his
info
rmati
on, addre
ssin
g y
our
questi
ons a
nd
dis
cussin
g a
ny o
ther
matt
ers
of
inte
rest
to t
he A
ud
it C
om
mit
tee a
nd
Managem
ent
of
CA
PK
.
Best
Regard
s,
And
rew
Pauld
en, Part
ner
Bro
oke B
air
d, M
anager
Bro
wn A
rmstr
ong A
ccounta
ncy C
orp
ora
tion
4
Engagem
ent
Team
4
Schedule
d D
ate
s o
f Fie
ldw
ork
5
O
ur
Audit
Obje
cti
ves
6
A
udit
Str
ate
gy
7
Sig
nif
icant
Audit
Are
as
8
Report
s E
xpecte
d t
o b
e Issued
9
Q
uesti
ons
10
3
Page
5
4
Andy J.
Pauld
en,
CPA
Engagem
ent
Part
ner
Bro
oke B
air
d, C
PA
Engagem
ent
Manager
Mari
ana H
ern
and
ez
Engagem
ent
Superv
isor
6
◦In
teri
m
Fie
ldw
ork
at
Client’
s O
ffic
e-
Weeks o
f M
ay 1
4th
and
May 2
1st
◦C
APK
DC
Pla
n-
Week o
f Ju
ne 4
th
◦Fin
al
Set-
up f
rom
Bro
wn A
rmstr
ong O
ffic
e:
Week o
f Septe
mber
17
th
Fie
ldw
ork
at
Client’
s O
ffic
e-
Weeks o
f Septe
mber
24
th
and O
cto
ber
1st
5
7
We
are
responsib
lefo
raudit
ing
the
sta
tem
ents
of
financia
lposit
ion
of
CA
PK
as
of
Febru
ary
29,
201
6,
and
rela
ted
sta
tem
ents
of
opera
tions
and
cash
flow
sfo
rth
eperi
od
then
ended.
Addit
ionally,
follow
ing
supple
menta
ryin
form
ati
on
accom
panyin
gth
efi
nancia
lsta
tem
ents
will
be
subje
cte
dto
the
audit
ing
pro
cedure
sapplied
inour
audit
of
the
financia
lsta
tem
ents
:
◦Schedule
of
expendit
ure
sof
federa
land
sta
teaw
ard
s;
◦C
alifo
rnia
Depart
ment
of
Com
munit
yServ
ices
and
Develo
pm
ent-
Supple
menta
lschedule
sof
revenue
and
expendit
ure
s;
◦G
rant/
Contr
act
clo
seout
schedule
s;and
◦Sta
tem
ents
of
functi
onalexpenses
We
will
perf
orm
the
addit
ional
serv
ices
as
specif
ied
by
our
audit
agre
em
ent
for
fiscal
year
ended
Febru
ary
28,
2018:
◦Sin
gle
Audit
inaccord
ance
wit
hU
nif
orm
Guid
ance
for
federa
lgra
nts
;
◦Fin
ancia
land
com
pliance
audit
of
specia
lpurp
ose
financia
lsta
tem
ent
tocom
ply
wit
hth
ere
port
ing
requir
em
ent
specif
ied
inth
eagre
em
ent
wit
hth
eC
DE
for
the
year
ended
June
30,2018.
◦C
om
pliance
and
financia
laudit
for
the
Fir
st
5pro
gra
ms;
◦Lim
ited
scope
audit
of
CA
PK
’sD
efi
ned
Contr
ibuti
on
Pla
n;and
◦Pre
para
tion
of
the
org
aniz
ati
on’s
federa
land
sta
tein
form
ati
on
retu
rns.
6
Inaccord
ance
wit
hth
eengagem
ent
lett
er
our
pri
mary
obje
cti
ve
isth
eexpre
ssio
nof
an
opin
ion
on
CA
PK
’sfi
nancia
lsta
tem
ents
inaccord
ance
wit
haudit
ing
sta
ndard
sgenera
lly
accepte
din
the
Unit
ed
Sta
tes
of
Am
eri
ca
and
the
sta
ndard
sapplicable
tofi
nancia
laudit
sconta
ined
inG
ove
rnm
ent
Audit
ing
Sta
ndard
sis
sued
by
the
Com
ptr
oller
Genera
lof
the
Unit
ed
Sta
tes,w
hic
hin
clu
des:
•O
bta
inin
gre
asonable
assura
nce
as
tow
heth
er
the
financia
lsta
tem
ents
are
pre
pare
din
accord
ance
wit
hU
.S.genera
lly
accepte
daccounti
ng
pri
ncip
les
and
are
free
of
mate
rialm
issta
tem
ents
,w
heth
er
caused
by
err
or
or
fraud;and
•O
bta
inin
gre
asonable
assura
nce
about
wheth
er
eff
ecti
ve
inte
rnalcontr
olover
financia
lre
port
ing
was
main
tain
ed
inall
mate
rialre
spects
.
8
Phase I
Phase II
Phase
III
Phase
IV
Audit
Pla
nnin
gIn
teri
m F
ield
Work
Fin
alFie
ld W
ork
Com
ple
tion
Fam
ilia
rize o
urs
elv
es w
ith a
ny
changes in C
APK
’s o
pera
ting
envir
onm
ent
Assess Inte
rnal contr
olenvir
onm
ent
thro
ugh c
lient
inte
rvie
w a
nd t
est
of
contr
ols
Pla
n a
nd p
erf
orm
substa
nti
ve a
udit
pro
cedure
s o
n f
inancia
l sta
tem
ent
bala
nces
Perf
orm
com
ple
tion p
rocedure
s
Perf
orm
ris
k a
ssessm
ent
pro
cedure
sPerf
orm
SA
S 9
9 (Fra
ud e
valu
ati
on)
pro
cedure
sC
om
ple
te a
ny o
uts
tandin
g
pro
cedure
s f
rom
inte
rim
Dra
ft inte
rnal contr
olm
anagem
ent
lett
er
com
ments
Dete
rmin
epla
nnin
g m
ate
riality
for
financia
l sta
tem
ents
audit
s a
nd
indiv
idual fe
dera
l gra
nts
Identi
fy inte
rnalcontr
ol str
ength
s
and w
eaknesses
Audit
of
pensio
nD
raft
Report
s
Perf
orm
pre
lim
inary
analy
tical re
vie
wEvalu
ate
desig
n a
nd im
ple
menta
tion
of
sele
cte
d c
ontr
ols
Conduct
final analy
tical re
vie
wD
raft
m
anagem
ent
repre
senta
tion
lett
er
and h
ave s
igned
Develo
paudit
pla
nTest
contr
ols
over
financia
l re
port
ing
and a
dm
inis
trati
on
Consid
er
Audit
Evid
ence S
uff
icie
ncy
Issue a
udit
or’
s r
eport
s a
nd
managem
ent
lett
er
Identi
fy s
ignif
icant
audit
are
as
Unders
tand a
ccounti
ng a
nd r
eport
ing
acti
vit
ies
Conclu
de
on c
riti
cal
accounti
ng
matt
ers
Dete
rmin
enatu
re a
nd e
xte
nt
of
audit
pro
cedure
s f
or
each o
f th
e s
ignif
icant
audit
are
as
Perf
orm
fe
dera
l and C
DE c
om
pliance
audit
s a
nd t
he F
irst
5 p
rogra
m a
udit
.
Reevalu
ate
the p
rogre
ss
of
the a
udit
and m
ake a
ny c
hanges o
n a
udit
appro
ach a
nd p
rocedure
s,
if
necessary
Confi
rmati
on
of
account
bala
nces,
usin
g c
lient
pre
pare
d c
onfi
rmati
ons
7
9
Based o
n t
he r
esult
s o
f pri
or
year’
s a
udit
, w
e h
ave
identi
fied t
he f
ollow
ing a
s o
ur
most
sig
nif
icant
audit
are
as:
Expenses f
or
Pro
gra
m a
nd S
upport
ing S
erv
ices,
Accounts
Payable
and A
ccru
ed L
iabilit
ies
Pro
gra
m R
evenue,
Receiv
able
s a
nd D
efe
rred
Revenue
Pro
pert
y a
nd E
quip
ment
In
vento
ry
Long T
erm
Debt
8
10
C
onsolidate
d f
inancia
l sta
tem
ents
and
the r
ela
ted c
onsolidate
d s
tate
ments
of
op
era
tions
and
cash f
low
s f
or
the y
ear
than e
nd
ed F
eb
ruary
28
, 2
01
8
◦In
dependent
Audit
or’
s R
eport
;
◦Report
on Inte
rnal C
ontr
ol O
ver
Fin
ancia
l R
eport
ing a
nd o
n C
om
pliance a
nd O
ther
Matt
ers
Based o
n
an A
udit
of
Fin
ancia
l Sta
tem
ent
Perf
orm
ance in A
ccord
ance w
ith G
overn
ment
Audit
ing S
tandard
s;
◦Report
on C
om
pliance w
ith R
equir
em
ents
Applicable
to E
ach M
ajo
r Pro
gra
m a
nd o
n Inte
rnal C
ontr
ol
Over
Com
pliance in A
ccord
ance w
ith t
he U
nif
orm
Guid
ance;
◦Report
on C
om
pliance w
ith R
equir
em
ents
Applicable
to F
irst
5 p
rogra
ms in A
ccord
ance w
ith t
he
Pro
gra
m S
pecif
ic A
udit
Opti
on U
nder
the U
nif
orm
Guid
ance; and
◦C
onsolidate
d s
chedule
of
findin
gs a
nd q
uesti
oned c
osts
D
efi
ned
Contr
ibuti
on P
lan
◦In
dependent
Audit
or’
s R
eport
◦Report
on Inte
rnal C
ontr
ol O
ver
Fin
ancia
l Report
ing a
nd o
n C
om
pliance a
nd O
ther
Matt
ers
Based o
n
an A
udit
of
Fin
ancia
l Sta
tem
ent
Perf
orm
ance in A
ccord
ance w
ith G
overn
ment
Audit
ing S
tandard
s;
Specia
l Purp
ose F
inancia
l Sta
tem
ents
◦In
dependent
Audit
or’
s R
eport
◦Report
on Inte
rnal C
ontr
ol O
ver
Fin
ancia
l R
eport
ing a
nd o
n C
om
pliance a
nd O
ther
Matt
ers
Based o
n
an A
udit
of
Fin
ancia
l Sta
tem
ent
Perf
orm
ance in A
ccord
ance w
ith G
overn
ment
Audit
ing S
tandard
s;
and
◦C
onsolidate
d s
chedule
of
findin
gs a
nd q
uesti
oned c
osts
9
11
We a
re lookin
g f
orw
ard
to w
ork
ing w
ith t
he
CA
PK
team
to c
om
ple
te t
he a
udit
.
Thank y
ou!
10
12
13.1
COMMUNITY ACTION PARTNERSHIP OF KERN
MEMORANDUM
To: Audit & Pension Committee From: Jerry Meade, Program Design and Management Administrator
Date: April 12, 2018
Subject: Agenda Item 5d - CACFP Triannual Review Outcome – Info Item
During the week of January 16, 2018, the California Department of Education’s Nutrition Services Division conducted a triannual review of our Child and Adult Care Food Program (CACFP). The review included a review of our Financial, Administrative, and Program accountability systems that required participation from CAPK multiple divisions. The review team share many compliments to our systems and commitment to quality. They offered two areas of Training Assistance that were implemented while the reviewers were onsite. In the end, CAPK was found to be in compliance with all expectations. No action will be required moving forward and the review is closed. The summation report is attached for your review. Attachment: CACFP Center Summation Report
20