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Letter - Rogers, Anderson, Malody & Scott, LLP - 2015-07-20e' rwa, 735 E. Carnegie Dr. Suite 100 San Bernardino, CA 92408 909 889 0871 T 909 889 5361 F ramscpa.net PARTNERS Brenda L. Odle, CPA, MST Terry P. Shea, CPA Kirk A. Franks, CPA Scott W. Manno, CPA, CGMA Leena Shanbhag, CPA, MST, CGMA Jay H. Zercher, CPA (Partner Emeritus) Phillip H. Waller, CPA (Partner Emeritus) DIRECTORS Bradferd A. Welebir, CPA, MBA MANAGERS / STAFF Jenny Liu, CPA, MST Seong-Hyea Lee, CPA, MBA Charles De Simoni, CPA Yiann Fang, CPA Nathan Statham, CPA, MBA Brigitta Bartha, CPA Gardenya Duran, CPA Juan Romero, CPA Ivan Gonzales, CPA, MSA Brianna Pascoe, CPA MEMBERS American Institute of Certified Public Accountants PCPS The AICPA Alliance for CPA Firms Governmental Audit Quality Center California Society of Certified Public Accountants ROGERS, ANDERSON, MALODY & SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948 July 20, 2015 Costa Mesa Sanitary District 628 W. 19th Street Costa Mesa, CA 92627 Professional standards require auditors to communicate with those charged with governance during the planning phase of the audit. Please make the appropriate number of copies of the enclosed letter and distribute them to each Board Member. Thank you for your assistance. Sincerely, ROGERS, ANDERSON, MALODY & SCOTT, LLP Scoffvrminno, CPA, CGMA Partner STABILITY. ACCURACY. TRUST. 735 E. Carnegie Dr. Suite 100 San Bernardino, CA 92408 909 889 0871 T 909 889 5361 F ramscpa.net ROGERS, ANDERSON, MALODY & SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948 To the Board of Directors Costa Mesa Sanitary District Costa Mesa, California July 20, 2015 PARTNERS Brenda L. Odle, CPA, MSTto We are engaged audit the financial statements of the Costa Mesa Terry P. Shea, CPA Sanitary District (the District) for the year ended June 30, 2015. Kirk A. Franks, CPA Professional standards require that we provide you with the following Scott W. Mann°, CPA, CGMA Leena Shanbhag, CPA, MST, CGMA information related to our audit. We would also appreciate the opportunity Jay H. Zercher, CPA (Partner Emeritus) to meet with you to discuss this information further since atwo-way Phillip H. Waller, CPA (Partner Emeritus) dialogue can provide valuable information for the audit process. DIRECTORS Bradferd A. Welebir, CPA, MBA Our Responsibility under U.S. Generally Accepted Auditin Standards g and Government Auditing Standards MANAGERS / STAFF fenny Liu, CPA, MST Seong-Hyea As stated in our engagement letter dated July 20, 2015, our responsibility, Lee, CPA, MBA Charles De Simoni, CPA as described by professional standards, is to express opinions about Yiann Fang, CPA whether the financial statements prepared by management with your Nathan Statham, CPA, MBA oversight are fairly presented, in all material respects, in conformity with Brigitta Bartha, CPA U.S. generally accepted accounting principles. Our audit of the financial Gardenya Duran, CPA Juan Romero, CPA statements does not relieve you or management of your responsibilities. Ivan Gonzales, CPA, MSA Brianna Pascoe, CPA As part of our audit, we will consider the internal control of the District. Such considerations are solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will also perform tests of the District's compliance with certain provisions of laws, regulations, contracts, and grants. However, providing an opinion on compliance with those provisions is not an objective of our audit. Generally accepted accounting principles provide for certain required supplementary information (RSI) to supplement the basic financial MEMBERS statements. Our responsibility with respect to (1) Management's d ion anAmerican Institute of DiscussAnalysis, (2) Schedule of funding progress for OPEB, (3) Certified Public Accountants Schedule of contributions, and (4) Schedule of proportionate share of net PCPS The AICPA Alliance pension liability, which supplements the basic financial statements, is to for CPA Firms apply certain limited procedures in accordance with generally accepted Governmental Audit auditing standards. However, the RSI will not be audited and, because Quality center the limited procedures do not provide us with sufficient evidence to California Society of express an opinion or provide any assurance, we will not express an Certified Public Accountants opinion or provide any assurance on the RSI. STABILITY. ACCURACY. TRUST. We have not been engaged to report on the Introductory Section or the Statistical Section of the Comprehensive Annual Financial Report, which accompany the financial statements but are not RSI. Our responsibility with respect to this other information in documents containing the audited financial statements and auditor's report does not extend beyond the financial information identified in the report. We have no responsibility for determining whether this other information is properly stated. This other information will not be audited and we will not express an opinion or provide any assurance on it. Planned Scope and Timing of the Audit An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Our audit will include obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. We will generally communicate our significant findings at the conclusion of the audit. However, some matters could be communicated sooner, particularly if significant difficulties are encountered during the audit where assistance is needed to overcome the difficulties or if the difficulties may lead to a modified opinion. We will also communicate any internal control related matters that are required to be communicated under professional standards. We expect to begin our audit on approximately September 15, 2015. Scott W. Manno, CPA, CGMA is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. This information is intended solely for the use of the Board of Directors and Management of the District and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, ROGERS, ANDERSON, MALODY & SCOTT, LLP Y'Izej��;;��� Scott W. Manno, CPA, CGMA