HomeMy WebLinkAboutAgr 2022-07-12 (Pun Group Accountants - Audit)200 E. Sandpointe Avenue, Suite 600 Santa Ana, California 92707
July 12, 2022
Town of Tiburon
1505 Tiburon Blvd.
Tiburon, CA 94920
RE: Engagement of The Pun Group, LLP (the “Firm”)
We are pleased to confirm our understanding of the services we are to provide the Town of Tiburon, California (the
“Town”) for the year ending June 30, 2022.
Audit Scope and Objectives
We will audit the financial statements of the governmental activities, each major fund, and the aggregate remaining
fund information, including the disclosures, which collectively comprise the basic financial statements, of the Town as
of and for the year ending June 30, 2022.
Accounting standards generally accepted in the United States of America (GAAP) provide for certain required
supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the Town’s
basic financial statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement,
we will apply certain limited procedures to the Town’s RSI in accordance with auditing standards generally accepted
in the United States of America (GAAS). These limited procedures will consist of inquiries of management regarding
the methods of preparing the information and comparing the information for consistency with management’s responses
to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We will not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. The following
RSI is required by GAAP and will be subjected to certain limited procedures, but will not be audited:
1) Management’s Discussion and Analysis
2) Budgetary Comparison Schedules – General Fund and Major Special Revenue Funds
3) Schedules of Proportionate Share of the Plan’s Net Pension Liability
4) Schedules of Plan Contributions – Pension Plans
5) Schedule of Changes in Net OPEB Liability and Related Ratios
6) Schedule of Contributions – Other Postemployment Benefit Plan
We have also been engaged to report on supplementary information other than RSI that accompanies the Town’s
financial statements. We will subject the following supplementary information to the auditing procedures applied in
our audit of the financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with GAAS, and we will provide an
opinion on it in relation to the financial statements as a whole in a report combined with our auditor’s report on the
financial statements.
1) Schedule of Expenditures of Federal Awards
2) Combining Fund Financial Statements
DocuSign Envelope ID: A43E3B31-0B4B-4613-BDC3-DCF5E7CC41B5
Town of Tiburon
Engagement Letter
July 12, 2022
Page 2
The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and issue an auditor’s report that includes our opinions
about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP, and
report on the fairness of the supplementary information referred to in the second paragraph when considered in relation
to the financial statements as a whole. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards
will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or
error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment of a reasonable user made based on the financial statements. The objectives also include
reporting on:
Internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and
award agreements, noncompliance with which could have a material effect on the financial statements in
accordance with Government Auditing Standards.
Internal control over compliance related to major programs and an opinion (or disclaimer of opinion) on
compliance with federal statutes, regulations, and the terms and conditions of federal awards that could have a
direct and material effect on each major program in accordance with the Single Audit Act Amendments of
1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Auditor’s Responsibilities for the Audit of the Financial Statements and Single Audit
We will conduct our audit in accordance with GAAS; the standards for financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of
1996; and the provisions of the Uniform Guidance, and will include tests of accounting records, a determination of
major program(s) in accordance with Uniform Guidance, and other procedures we consider necessary to enable us to
express such opinions. As part of an audit in accordance with GAAS and Government Auditing Standards, we exercise
professional judgment and maintain professional skepticism throughout the audit.
We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management. We will also evaluate the overall presentation of the financial statements, including
the disclosures, and determine whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting,
(3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the
government or to acts by management or employees acting on behalf of the government. Because the determination of
waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures
to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting
waste or abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because
we will not perform a detailed examination of all transactions, there is an unavoidable risk that some material
misstatements or noncompliance may not be detected by us, even though the audit is properly planned and performed
in accordance with GAAS and Government Auditing Standards. In addition, an audit is not designed to detect
immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect
on the financial statements or on major programs. However, we will inform the appropriate level of management of
any material errors, any fraudulent financial reporting, or misappropriation of assets that come to our attention. We
will also inform the appropriate level of management of any violations of laws or governmental regulations that come
to our attention, unless clearly inconsequential. We will include such matters in the reports required for a Single Audit.
Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for
which we are not engaged as auditors.
DocuSign Envelope ID: A43E3B31-0B4B-4613-BDC3-DCF5E7CC41B5
Town of Tiburon
Engagement Letter
July 12, 2022
Page 3
We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the
aggregate, that raise substantial doubt about the government’s ability to continue as a going concern for a reasonable
period of time.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests
of the physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by
correspondence with selected individuals, funding sources, creditors, and financial institutions. We will also request
written representations from your attorneys as part of the engagement.
We have identified management override of controls as a significant risk of material misstatement. As planning for the
current period audit has not concluded, modifications may be made. If new significant risks are identified after the date
of this letter, we will communicate them in writing to those charged with governance in a timely manner.
We may, from time to time and depending on the circumstances, use third-party service providers in serving your
account. We may share confidential information about you with these service providers but remain committed to
maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies,
procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure
confidentiality agreements with all service providers to maintain the confidentiality of your information and we will
take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized
release of your confidential information to others. In the event that we are unable to secure an appropriate
confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential
information with the third-party service provider. Furthermore, we will remain responsible for the work provided by
any such third-party service providers.
Our audit of financial statements does not relieve you of your responsibilities.
Audit Procedures—Internal Control
We will obtain an understanding of the government and its environment, including internal control relevant to the audit,
sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or
fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and
appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentation, or the override of internal control. Tests of controls may be performed to test the effectiveness of
certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial
statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters
that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than
would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report
on internal control issued pursuant to Government Auditing Standards.
As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the effectiveness
of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance
with compliance requirements applicable to each major federal award program. However, our tests will be less in scope
than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our
report on internal control issued pursuant to the Uniform Guidance.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material
weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to
management and those charged with governance internal control related matters that are required to be communicated
under AICPA professional standards, Government Auditing Standards, and the Uniform Guidance.
DocuSign Envelope ID: A43E3B31-0B4B-4613-BDC3-DCF5E7CC41B5
Town of Tiburon
Engagement Letter
July 12, 2022
Page 4
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we
will perform tests of the Town’s compliance with provisions of applicable laws, regulations, contracts, and agreements,
including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall
compliance, and we will not express such an opinion in our report on compliance issued pursuant to Government
Auditing Standards.
The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether
the auditee has complied with federal statutes, regulations, and the terms and conditions of federal awards applicable
to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in
the OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect
on each of the Town’s major programs. For federal programs that are included in the Compliance Supplement, our
compliance and internal control procedures will relate to the compliance requirements that the Compliance Supplement
identifies as being subject to audit. The purpose of these procedures will be to express an opinion on the Town’s
compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to
the Uniform Guidance.
Responsibilities of Management for the Financial Statements and Single Audit
Our audit will be conducted on the basis that you acknowledge and understand your responsibility for (1) designing,
implementing, establishing, and maintaining effective internal controls relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error, including internal
controls over federal awards, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals
and objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurance that
government programs are administered in compliance with compliance requirements; and (4) ensuring that
management and financial information is reliable and properly reported. Management is also responsible for
implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant
agreements. You are also responsible for the selection and application of accounting principles; for the preparation and
fair presentation of the financial statements, schedule of expenditures of federal awards, and all accompanying
information in conformity with accounting principles generally accepted in the United States of America; and for
compliance with applicable laws and regulations (including federal statutes), rules, and the provisions of contracts and
grant agreements (including award agreements). Your responsibilities also include identifying significant contractor
relationships in which the contractor has responsibility for program compliance and for the accuracy and completeness
of that information.
You are also responsible for making drafts of financial statements, schedule of expenditures of federal awards, all
financial records, and related information available to us and for the accuracy and completeness of that information
(including information from outside of the general and subsidiary ledgers). You are also responsible for providing us
with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the
financial statements, such as records, documentation, identification of all related parties and all related-party
relationships and transactions, and other matters; (2) access to personnel, accounts, books, records, supporting
documentation, and other information as needed to perform an audit under the Uniform Guidance; (3) additional
information that we may request for the purpose of the audit; and (4) unrestricted access to persons within the
government from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will
require certain written representations from you about the financial statements; schedule of expenditures of federal
awards; federal award programs; compliance with laws, regulations, contracts, and grant agreements; and related
matters.
DocuSign Envelope ID: A43E3B31-0B4B-4613-BDC3-DCF5E7CC41B5
Town of Tiburon
Engagement Letter
July 12, 2022
Page 5
Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us
in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the
current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate,
to the financial statements of each opinion unit taken as a whole.
You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for
informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees
who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial
statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud
affecting the government received in communications from employees, former employees, grantors, regulators, or
others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws,
regulations, contracts, agreements, and grants. You are also responsible for taking timely and appropriate steps to
remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant agreements that we report.
Additionally, as required by the Uniform Guidance, it is management’s responsibility to evaluate and monitor
noncompliance with federal statutes, regulations, and the terms and conditions of federal awards; take prompt action
when instances of noncompliance are identified including noncompliance identified in audit findings; promptly follow
up and take corrective action on reported audit findings; and prepare a summary schedule of prior audit findings and a
separate corrective action plan.
You are responsible for identifying all federal awards received and understanding and complying with the compliance
requirements and for the preparation of the schedule of expenditures of federal awards (including notes and noncash
assistance received, and COVID-19-related concepts, such as lost revenues, if applicable) in conformity with the
Uniform Guidance. You agree to include our report on the schedule of expenditures of federal awards in any document
that contains, and indicates that we have reported on, the schedule of expenditures of federal awards. You also agree
to make the audited financial statements readily available to intended users of the schedule of expenditures of federal
awards no later than the date of the schedule of expenditures of federal awards is issued with our report thereon. Your
responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for
presentation of the schedule of expenditures of federal awards in accordance with the Uniform Guidance; (2) you
believe the schedule of expenditures of federal awards, including its form and content, is stated fairly in accordance
with the Uniform Guidance; (3) the methods of measurement or presentation have not changed from those used in the
prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant
assumptions or interpretations underlying the measurement or presentation of the schedule of expenditures of federal
awards.
You are also responsible for the preparation of the other Supplementary Information, which we have been engaged to
report on, in conformity with U.S. generally accepted accounting principles. You agree to include our report on the
supplementary information in any document that contains and indicates that we have reported on the Supplementary
Information. You also agree to include the audited financial statements with any presentation of the supplementary
information that includes our report thereon. Your responsibilities include acknowledging to us in the written
representation letter that (1) you are responsible for presentation of the Supplementary Information in accordance with
GAAP; (2) you believe the Supplementary Information, including its form and content, is fairly presented in accordance
with GAAP; (3) that the methods of measurement or presentation have not changed from those used in the prior period
(or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions
or interpretations underlying the measurement or presentation of the Supplementary Information.
Management is responsible for establishing and maintaining a process for tracking the status of audit findings and
recommendations. Management is also responsible for identifying and providing report copies of previous financial
audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit
Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address
significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or
studies. You are also responsible for providing management’s views on our current findings, conclusions, and
DocuSign Envelope ID: A43E3B31-0B4B-4613-BDC3-DCF5E7CC41B5
Town of Tiburon
Engagement Letter
July 12, 2022
Page 6
recommendations, as well as your planned corrective actions for the report, and for the timing and format for providing
that information.
Assistance by Your Personnel
We will ask that your personnel, to the extent possible, prepare required schedules and analyses, and make selected
invoices and other required documents available to our staff. This assistance by your personnel will serve to facilitate
the progress of our work and minimize our time requirements.
Data Collection Form
At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that
summarizes our audit findings. It is management’s responsibility to electronically submit the reporting package
(including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings,
auditor’s reports, and corrective action plan) along with the Data Collection Form to the federal audit clearinghouse.
We will coordinate with you the electronic submission and certification. The Data Collection Form and the reporting
package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s reports or nine months
after the end of the audit period.
Independence
Professional standards require that a firm and its members maintain independence throughout the duration of the
professional relationship with a client. In order to preserve the integrity of our relationship, no offer of employment
shall be discussed with any of Firm’s professionals assigned to the audit, during the one-year period prior to the
commencement of the year end audit. Should such an offer of employment be made, or employment commences during
the indicated time period, we will consider this an indication that our independence has been compromised. As such,
we may be required to recall our auditors’ report due to our lack of independence. In the event additional work is
required to satisfy independence requirements, such work will be billed at our standard hourly rates.
Report Distribution and Other
We will provide copies of our reports to the Town; however, management is responsible for distribution of the reports
and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential
information, copies of our reports are to be made available for public inspection.
Access to Working Papers
The audit documentation for this engagement is the property of The Pun Group, LLP, and constitutes confidential
information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals
will be made available upon request and in a timely manner to the Oversight Agency for Audit or its designee, a federal
agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality
review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such
request. If requested, access to such audit documentation will be provided under the supervision of The Pun Group,
LLP personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the
aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein
to others, including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of seven (7) years after the report release
date or for any additional period requested by the Oversight Agency for Audit. If we are aware that a federal awarding
agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit
finding for guidance prior to destroying the audit documentation.
DocuSign Envelope ID: A43E3B31-0B4B-4613-BDC3-DCF5E7CC41B5
Town of Tiburon
Engagement Letter
July 12, 2022
Page 7
The Firm is required to undergo a “peer review” every three years. During the course of a Peer Review engagement,
selected working papers and financial reports, on a sample basis, will be inspected by an outside party on a confidential
basis. Consequently, the accounting and/or auditing work we performed for you may be selected. Your signing this
letter represents your acknowledgement and permission to allow such access should your engagement be selected for
review.
Timing
Kenneth H. Pun is the engagement partner and is responsible for supervising the engagement and signing the reports
or authorizing another individual to sign them. We expect to begin our audit on approximately July 18, 2022.
Fee
Our fee for these services will be $37,500 for the year ending June 30, 2022. Our fees are based on certain assumptions,
including the required assistance described above. To the extent that certain circumstances included but not limited to
those listed in Appendix A, arise during the engagement, our fee estimate may be significantly affected and additional
fees may be necessary and we will discuss it with you and arrive at a new fee estimate before we incur the additional
costs. Additional services provided beyond the described scope of services will be billed separately.
Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In
accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may
not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement
will be deemed to have been completed upon written notification of termination, even if we have not completed our
report(s). You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs
through the date of termination.
If the Town is required to undergo a single audit in accordance with the Federal Single Audit Act and the Uniform
Guidance, Audits of States, Local Governments, and Not-for-Profit Organizations, there will be an additional fee of
$5,000 for each major program. The number of programs determined to be a major program will be based on the
determination required by the Uniform Guidance and will be discussed with you prior to commencement of any audit
work.
Reporting
We will issue written reports upon completion of our audit of the Town’s financial statements and the Single Audit.
Our reports will be addressed to the Town Council of the Town. Circumstances may arise in which our report may
differ from its expected form and content based on the results of our audit. Depending on the nature of these
circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter
or other-matter paragraph to our auditor’s report, or if necessary, withdraw from this engagement. If our opinions are
other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete
the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or we
may withdraw from this engagement.
The Government Auditing Standards report on internal control over financial reporting and on compliance and other
matters will state that (1) the purpose of the report is solely to describe the scope of testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance, and (2) the report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the entity’s internal control and compliance. The Uniform Guidance report on
internal control over compliance will state that the purpose of the report on internal control over compliance is solely
to describe the scope of testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Both reports will state that the report is not suitable for any other purpose.
DocuSign Envelope ID: A43E3B31-0B4B-4613-BDC3-DCF5E7CC41B5
Town of Tiburon
Engagement Letter
July 12, 2022
Page 8
Termination
We acknowledge the Town’s right to terminate our services at any time, and the Town acknowledges our right to resign
at any time (including instances where in our judgment, our independence has been impaired or we can no longer rely
on the integrity of management), subject in either case to our right to payment for all direct charges incurred through
the date of termination or resignation.
Dispute Resolution Procedure, Waiver of Jury Trial, Jurisdiction and Venue for All Disputes, and Governing
Law
We appreciate the opportunity to serve as the Town’s auditor and anticipate a productive, harmonious relationship. If
the Town becomes dissatisfied for any reason with the services we have performed or the fees charged, we encourage
the Town to bring that to our attention immediately. Most such problems should be remedied by communication and
discussion. However, a dispute could arise between us, regarding the construction or application of this agreement
and/or the performance of any services under this agreement, which cannot be resolved by discussion. The Town and
this Firm believe that such accountant-client disputes are more satisfactorily resolved through confidential, binding
arbitration than by litigation in court. Therefore, the Town and this Firm choose confidential binding arbitration to
resolve such disputes. It is understood and agreed that choosing binding arbitration waives a trial by jury.
The place of the confidential binding arbitration will be JAMS in Marin County, California. Arbitration proceedings
may be commenced by either the Town or this Firm, by giving all other interested parties written notice; and the
proceedings shall be governed by the California Arbitration Act (Code Civ. Proc., § 1281 et seq.), except as is otherwise
specified herein. The arbitrator must decide all disputes in accordance with the California Arbitration Act, and the
applicable rules of JAMS (except to the extent such rules conflict with this arbitration agreement). The arbitrator shall
have the power to decide all matters, including legal questions raised by pleading or summary judgment motions. That
decision shall be in accordance with California law; and the California Evidence Code shall govern all proceedings
before the arbitrator. The arbitrator’s award shall be final and binding, and a judgment upon the award may be entered
and enforced by any court of competent jurisdiction.
By entering into this arbitration agreement, the Town and this Firm expressly waive the right to commence an action
in court, except with respect to provisional remedies; and waive the right to trial by jury.
The Town and this Firm each agree to submit to the jurisdiction of any state or federal court in Marin County,
California, in any action or proceeding arising out of or relating to the enforcement of the arbitration provisions of this
agreement, or for any other purpose. The Town and this Firm agree not to bring any action or proceeding of any kind
in any other court. The Town and this Firm waive any defense of inconvenient forum to the maintenance of any action
or proceeding in Marin County, California.
Most Recent External Quality Control Review
Government Auditing Standards require that we provide you with a copy of our most recent external peer review
report and any letter of comment, and any subsequent peer review reports and letters of comment received during the
period of the contract.
You have requested that we provide you with a copy of our most recent external peer review report and any subsequent
reports received during the contract period. Accordingly, our 2021 peer review report accompanies this letter.
****
DocuSign Envelope ID: A43E3B31-0B4B-4613-BDC3-DCF5E7CC41B5
Town of Tiburon
Engagement Letter
July 12, 2022
Page 9
Agreement
This letter comprises the complete and exclusive statement of the agreement between the parties, superseding all
proposals oral or written and all other communications between the parties. If any provision of this letter is determined
to be unenforceable, all other provisions shall remain in force.
It is hereby understood and agreed that this engagement is being undertaken solely for the benefit of the Town and that
no other person or entity shall be authorized to enforce the terms of this engagement.
If you agree with the terms of our engagement, as described in this letter, please sign below, and return it to us. We
appreciate the opportunity to be of service to you and believe this letter accurately summarizes the significant terms of
our engagement. If you have any questions, please let us know.
Very truly yours,
The Pun Group LLP
Kenneth H. Pun, CPA, CGMA
Engagement Partner
RESPONSE:
This letter correctly sets forth the understanding of the Town of Tiburon.
By:
Title:
Date:
DocuSign Envelope ID: A43E3B31-0B4B-4613-BDC3-DCF5E7CC41B5
7/28/2022
Dir. of Admin Services
APPENDIX A
Town of Tiburon
Circumstances Affecting Timing and Fee Estimate
Circumstances may arise during the engagement that may significantly affect the targeted completion dates and our
fee estimate. As a result, additional fees may be necessary. Such circumstances include but are not limited to the
following:
1. Changes to the timing of the engagement at your request. Changes to the timing of the engagement usually
require reassignment of personnel used by The Pun Group LLP (the “Firm”) in the performance of services
hereunder. However, because it is often difficult to reassign individuals to other engagements, the Firm may
incur significant unanticipated costs.
2. All requested schedules are not (a) provided by the accounting personnel on the date requested, (b) completed in
a format acceptable to the Firm (c) mathematically correct, or (d) in agreement with the appropriate underlying
records (e.g., general ledger accounts). The Firm will provide the accounting personnel with a separate listing of
required schedules and deadlines.
3. Weaknesses in the internal control structure.
4. Significant new issues or unforeseen circumstances as follows:
a. New accounting issues that require an unusual amount of time to resolve.
b. Changes or transactions that occur prior to the issuance of our report.
c. Changes in the Entity’s accounting personnel, their responsibilities, or their availability.
d. Changes in auditing requirements set by regulators.
5. Significant delays in the accounting personnel’s assistance in the engagement or delays by them in reconciling
variances as requested by the Firm. All invoices, contracts and other documents which we will identify for the
Entity, are not located by the accounting personnel or made ready for our easy access.
6. A significant level of proposed audit adjustments is identified during our audit.
7. Changes in audit scope caused by events that are beyond our control.
8. Untimely payment of our invoices as they are rendered.
DocuSign Envelope ID: A43E3B31-0B4B-4613-BDC3-DCF5E7CC41B5
DrEFPRGROUP, CPAs�
8 Denison Parkway East. Suite 407
Corning, NY 14830
Report on the Firm's System of Quality Control
P 607.962.6891
TF 800.546. 7556
F 607.973.2174
w EFPRgroup.com
February 14, 2022
To the Owners of The Pun Group, LLP
And the National Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of The Pun Group, LLP (the firm) in effect for the year ended December 31, 2020. Our peer review was conducted in accordance
with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the
American Institute of Certified Public Accountants (Standards).
A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at www.aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional
standards, if any, are evaluated by a peer reviewer to determine a peer review rating.
Firm's Responsibility
The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed
as not performed or reported in conformity with professional standards, when appropriate, and for remediating
weaknesses in it system of quality control, if any.
Peer Reviewer's Responsibility
Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance
therewith based on our review.
Required Selections and Considerations
Engagements selected for review included engagements performed under Government Auditing Standards,
compliance audits under the Single Audit Act and an audit of an employee benefit plan.
As a part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures.
Opinion
In our opinion, the system of quality control for the accounting and auditing practice of The Pun Group, LLP in effect
for the year ended December 31, 2020, has been suitably designed and complied with to provide the firm with
reasonable assurance of performing and reporting in conformity with applicable professional standards in all
material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. The Pun Group, LLP has
received a peer review rating of pass.
EFPr< Gn.fup, CPAs, PLLL
EFPR Group, CPAs, PLLC
Corning, NY
DocuSign Envelope ID: A43E3B31-0B4B-4613-BDC3-DCF5E7CC41B5