OTHER ASSURANCES
Martinez, Rosario & Company, LLP is a member of the AICPA Peer Review Program that is administered by the TSCPA. We have been members since our formation in 2003. Peer reviews will be conducted every three years with an annual self-inspection. MRC’s latest peer review for the year ended June 30, 2019, was completed on February 24, 2020, in which our firm received a rating of pass. The quality control review included a review of governmental engagements performed under Generally Accepted Government Auditing Standards (GAGAS), also known as the Yellow Book.. We did not receive a letter of comments. (A copy of our latest peer review is available upon request).
We have received both desk and field reviews by various grantor agencies. At the federal level, we have received reviews from the Department of Health and Human Services, Department of Housing and Urban Development, Environmental Protection Agency, Department of Transportation Office of Inspector General, Department of Labor and the General Accounting Office. At the state level, we have received reviews from the Texas Education Association, Texas Department of Mental Health Mental Retardation, Texas Department of Housing and Community Affairs, Texas Commission on Alcohol and Drug Abuse and the Texas State Auditor. Also, each single audit report we issue is reviewed by the cognizant agency of the auditee. The results of each known desk and field review were the acceptance of the Single Audit Reports as meeting the Uniform Guidance or the Single Audit Act, Generally Accepted Government Auditing Standards (GAGAS) and the State of Texas Single Audit Circular.
We are licensed to practice public accounting by the Texas State Board of Public Accountancy. All professionals designated CPAs are licensed to practice public accounting by the Texas State Board of Public Accountancy or by the state noted in their resume.
(A copy of our license is available upon request).
We have a “Certificate of Registration” to conduct business in the State of Texas. We have never received a public or private reprimand by the Texas State Board of Public Accountancy and/or Licensing Boards of other states. We do not have a record of substandard audit work.
Our firm is 100% minority owned and controlled and has been certified as a Historically Underutilized Business (HUB) by the Texas Comptroller of Public Accounts (CPA). We have also been certified by the South Central Texas Regional Certification Agency as Minority- owned Business Enterprise (MBE). This agency provides certification services to a variety of governmental agencies and private enterprises in Texas. (A copy of our latest certificate is available upon request).
It is the policy of our firm to retain all audit work papers for seven years. Reasonable requests from successor auditors to view work papers are accommodated.
We adhere to the nondiscrimination requirements as detailed in the United States Code and Code of Federal Regulations.
We are not on the U.S. Comptroller General’s list of ineligible contractors.
Our firm is financially stable and adequately insured. Our Accountants Professional Liability Insurance is through Argonaut Insurance Company.
We do not have a history of terminations or failure to complete projects. There is no litigation or claim, past or pending, or any other such actions regarding terminations or failure to complete projects.
For all of our audit engagements, we utilize CCH’s ProSystem fx Engagement to manage, control and organize all our audit work documentation electronically. This includes copies of all source documents that are referenced in our audit work documentation. This software is a comprehensive package that manages all our audits from inception to final report preparation and issuance.
Also, our firm utilizes audit programs that cover all necessary procedures required to produce the desired results. MRC utilizes Practitioner’s Publishing Company (PPC) as their primary source of the most up-to-date audit programs. Their online service called Checkpoint and Smart Practice Aids is updated continuously. Some of the non-profit and governmental related modules that we currently subscribe to are the following:
• Audits of Local Governments
• Audits of Non-Profit Organizations
• Single Audits
• Preparing Governmental Financial Statements
As a member of GFOA, we utilize their reference materials and library services as needed, such as their Governmental Accounting, Auditing, and Financial Reporting (GAAFR Blue Book) and related GFOA checklist.
For our data sampling on fraud risk and assessments, we utilize Checkpoint and their Smart Practice Aids modules called Audit Risk Assessment, Internal Control and Fraud Prevention.
All of our employees are all permanent, full-time staff. We comply with all of MRC’s policies and procedures relative to affirmative action. Our commitment can be seen in our staffing mix, which consists primarily of minorities or women and our firm, is 100% minority owned and controlled.
Our firm has extensive experience assisting with the audit resolution of Federal and State audit findings and questioned costs. At the Federal level, we have worked with a number of agencies including the Department of Health and Human Services, the Department of Labor, the Department of Housing and Urban Development and the Department of Transportation. At the State level, we have work with the Texas Department of Mental Health Mental Retardation and Texas Department of Housing and Community Affairs.
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