Search

ACCEPTED BY THE POLICYHOLDER:

Signed at
Policyholder (correct legal name)

Date

By (Officer's signature and title)

(Print Name)

Signature Broker/Agent of Record

(Print Name)
ACCEPTED BY THE COMPANY:
Signed at Marblehead, Massachusetts
On behalf of the Company
Date Tara Krauss, Head of A&H

By (Officer's name and title)

AH-MSL-1001-NH (11-21) © QBE, 2021 Page 4 of 4

Monthly Stop Loss Premium and
Enrollment Statement QBE

Reference

Policyholder Policy number Effective Date

City of Nashua LGS02732-22 July 01, 2022

TPA Report period and date

Anthem

Premium remitted: Report completed by:

O Net or O Gross

Payment details

Specific coverage Covered units Adjustments — Final units Rate Monthly cost
Composite 2050 x $75.46 =$

Total monthly Specific premium $
Total Premium $
Premium is due on the first of the month. The Policy is subject to cancellation without prior notice if premiums are received past the 31
day grace period.

Prior month adjustments are limited to the preceding three months. Please attach explanation to receive consideration for any
other prior months. Enrollment counts should include COBRA participants and retirees, if applicable. All premium and enrollment
questions should be directed to QBE at 1.800.742.9279.

Any acceptance by QBE of late payments shall not be deemed a waiver of its rights to terminate this Policy for any future failure of Policyholder to make
timely payments.

Payment instructions
Please make checks payable to QBE Insurance Corporation.

For payments made by regular mail:
QBE North America

P.O. Box 28034

New York, NY 10087-8034

For payments made by ACH/wire:

JPMorgan Chase NA

Routing # 021000021

SWIFT: CHASEUS33

Account # 339792571

Account Name: QBE Insurance Corporation Concentration Account

Please remit backup documentation at time of transfer to: Premium@qbeah.com

For overnight payments:

JPMorgan Chase NA

Attn: QBE Lockbox 28034

4 Chase Metrotech Center, 7" Floor East
Brooklyn, NY 11245

City of Nashua

Purchasing Department
Administrative Services Division (603) 589-3330
229 Main Street - Nashua, NH 03060 Fax (603) 594-3233

June 29, 2022
Memo #23-305

TO: Mayor Donchess
Finance Committee

SUBJECT: Financial Audit Services in the amount not to exceed $265,000 funded from 53114
Accounting & Auditing Services/General Fund $193,000/ Solid Waste Fund $29,000/
Wastewater Fund $43,000

Please see attached communications from John Griffin, Chief Financial Officer, dated June 23, 2022 for
project specific details related to this purchase. Below please find a summary of the purchase approval
request:

Item: General Financial Statement Auditing, Federal Single Audit and Schedules for
FY2022 & FY2023

Value: $132,500 per year for 2 years to total $265,000

Vendor: Melanson

Department: 126 Financial Services
Source Fund: 53114 Accounting & Auditing Services/General Fund $193,000/ Solid Waste Fund
$29,000/ Wastewater Fund $43,000

Ordinance: Pursuant to NRO § 5-83 Professional Services (A) In the purchase of accounting,
architectural, auditing, engineering, legal, medical and ambulance services and
purchases of independent professional consultant services for personnel, data
processing, actuarial, planning, management and other comparable purchases
competitive bidding shall not be required.

The Financial Services Division, and the Purchasing Department respectfully request your approval of this
contract.

Regards,
Kelly Parkinson

Purchasing Manager

Cc: J Griffin
J Graziano

Jim Donchess
Mayor e City of Nashua

To: Board of Aldermen

From: Mayor Jim Donchess

Date: June 29, 2022

Re: Multi-Year Contract Award — Financial Auditing Services

Pursuant to NRO: § 5-74/B: A contract that extends from the current fiscal year into succeeding

fiscal year(s) in which no funds have been appropriated nor otherwise designated for this purpose
shall be approved by the full Board of Aldermen before the contract shall become binding on the

City.

The Finance Committee has approved and placed on file the notification of the award of the
referenced contract at the July 6, 2022 meeting and as such | am requesting the full Board of
Alderman approve the following contract:

Item: General Financial Statement Auditing, Federal Single Audit and
Schedules for FY2022 & FY2023
Value: $132,500 per year for 2 years to total $265,000
Vendor: Melanson
Purchasing Memo#: 23-305 dated June 29, 2022
Contract Term: 2 years
Thank you.

229 Main Street * PO Box 2019 * Nashua, New Hampshire 03061-2019
603.589.3260 * fax 603.594.3450 * NashuaMayor@NashuaNH. gov
www.NashuaNH. gov

THE CITY OF NASHUA —

Financial Services Division

Office of the Chief Financial Officer

TO: Mayor James Donchess

FROM: John L. Griffin and Rosemarie Evans

DATE: June 23, 2022

RE: Recommendation to Extend Melanson Contract

The purpose of this communication is to recommend extending the existing
contract with Melanson for services to audit the City’s general-purpose financial
statements, Federal Single Audit and schedules for the fiscal years FY2022 and
FY2023. The contract amount is $132,500 for each of the FY2022 and FY2023
audits.

During the past several years, this firm has provided audit services for the City’s Lawson
and MUNIS Financial Systems including General Ledger, Payroll, Accounts Receivable,
Accounts Payable, Procurement, Cash Receipts and Fixed Assets.

In summary, given the institutional knowledge of the City’s financial systems and
internal controls, it is important to maintain the services from the incumbent external
auditor — Melanson for continuity purposes.

229 Main Street * Nashua, New Hampshire 03060 * Phone (603) 589-3173 * Fax (603)
589-3168

« MELANSON

May 9, 2022

Mr. John Griffin

Chief Financial Officer

City of Nashua

229 Main Street

Nashua, New Hampshire 03061

Dear Mr. Griffin:

You have requested that we audit the basic financial statements of the governmental activities,
business-type activities, each major fund, and the aggregate remaining fund information of City
of Nashua, New Hampshire (the City) as of June 30, 2022 and 2023, and for the years then ended,
and the related notes to the financial statements. In addition, we will audit the City’s compliance
over major federal award programs for the years ended June 30, 2022 and 2023. We are pleased
to confirm our acceptance and our understanding of this audit engagement by means of this
letter.

The objectives of our audit of our financial statements 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 to issue an auditors’ report that includes our opinion. 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 auditing standards generally accepted in the United States of
America (GAAS) and, in accordance with 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 made by a reasonable user based on the financial
statements.

The objectives of our compliance audit are to obtain sufficient appropriate audit evidence to form
an opinion and report at the level specified in the governmental audit requirement about
whether the entity complied in all material respects with the applicable compliance requirements
and identify audit and reporting requirements specified in the governmental audit requirement
that are supplementary to GAAS and Government Auditing Standards , if any, and perform
procedures to address those requirements.

Merrimack, New Hampshire

Andover, Massachusetts

Greenfield, Massachusetts

Ellsworth, Maine 800.282.2440 | melansoncpas.com

w MELANSON

Accounting principles generally accepted in the United States of America, (U.S. GAAP,) as
promulgated by the Governmental Accounting Standards Board (GASB) require that
management’s discussion and analysis (MD&A), the budgetary comparison for the general fund
and major special revenue funds, and various pension and other post-employment benefits
(OPEB) schedules, be presented to supplement the 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 required supplementary information
(RSI) in accordance with auditing standards generally accepted in the United States of America,
(GAAS). These limited procedures will consist primarily of inquiries of management regarding their
methods of measurement and presentation, and comparing the information for consistency with
management’s responses to our inquiries. We will not express an opinion or provide any form of
assurance on the RSI.

Supplementary information other than RSI will accompany the City’s basic financial statements.
Such information, which is the responsibility of management, will be subject to the auditing
procedures applied in our audit of the basic financial statements and certain additional
procedures, including comparing and reconciling the supplementary information to the
underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and additional procedures in accordance with auditing
standards generally accepted in the United States of America. We intend to provide an opinion
on the supplementary information in relation to the financial statements as a whole.

Also, the document we submit to you will include the following other additional information that
will not be subjected to the auditing procedures applied in our audit of the financial statements:

e Introductory Section

e Statistical Section
Auditor Responsibilities

We will conduct our audit(s) in accordance with GAAS, the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United
States of America; the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part
200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). As part of an audit in accordance with those standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:

e Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and

800.282.2440 | melansoncpas.com

w MELANSON

obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
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,
misrepresentations, or the override of internal control.

e Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. However, we
will communicate to you in writing concerning any significant deficiencies or material
weaknesses in internal control relevant to the audit of the financial statements that we
have identified during the audit.

e Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.

e Conclude, based on the audit evidence obtained, whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to
continue as a going concern for a reasonable period of time.

Because of the inherent limitations of an audit, together with the inherent limitations of internal
control, an unavoidable risk that some material misstatements or noncompliance may not be
detected exists, even though the audit is properly planned and performed in accordance with U.S.
GAAS and Government Auditing Standards of the Comptroller General of the United States of
America. Please note that the determination of abuse is subjective and Government Auditing
Standards does not require auditors to detect abuse.

Our responsibility as auditors is limited to the period covered by our audit and does not extend
to any other periods.

Compliance with Laws and Regulations

As previously discussed, part of obtaining reasonable assurance about whether the basic financial
statements are free of material misstatement, we will perform tests of the City’s compliance with
the provisions of applicable laws, regulations, contracts, and agreements. However, the objective
of our audit will not be to provide an opinion on overall compliance and we will not express such
an opinion.

800.282.2440 | melansoncpas.com

w MELANSON

Single Audit

Schedule of Expenditures of Federal Awards

We will subject the Schedule of Expenditures of Federal Awards (the Schedule) to the auditing
procedures applied in our audit of the basic financial statements and certain additional procedures,
including comparing and reconciling the Schedule to the underlying accounting and other records
used to prepare the financial statements or to the financial statements themselves, and
additional procedures in accordance with auditing standards generally accepted in the United States
of America. We intend to provide an opinion on whether the Schedule of Expenditures of Federal
Awards is presented fairly in all material respects in relation to the financial statements as a
whole.

Data Collection Form

Prior to the completion of our engagement, we will complete the sections of the Data Collection
Form that are our responsibility. The Data Collection Form will summarize our audit findings,
amounts and conclusions. It is management’s responsibility to submit a reporting package including
financial statements, Schedule of Expenditure of Federal Awards, summary schedule of prior audit
findings and corrective action plan along with the Data Collection Form to the Federal Audit
Clearinghouse. The financial reporting package must be text searchable, unencrypted, and
unlocked. Otherwise, the reporting package will not be accepted by the Federal Audit
Clearinghouse. We will assist you in the electronic submission and certification. You may request
from us copies of our report for you to include with the reporting package submitted to pass-
through entities.

The Data Collection Form is required to be submitted within the earlier of 30 days after receipt of
our auditors’ reports or nine months after the end of the audit period, unless specifically waived
by a federal cognizant or oversight agency for audits. Data Collection Forms submitted untimely
are one of the factors in assessing programs at a higher risk.

Audit of Major Program Compliance

Our audit of the City’s major federal award programs compliance will be conducted in accordance
with the requirements of the Single Audit Act, as amended; and the Uniform Guidance, and will
include tests of accounting records, a determination of major programs in accordance with the
Uniform Guidance and other procedures we consider necessary to enable us to express such an
opinion on major federal award program compliance and to render the required reports. We
cannot provide assurance that an unmodified opinion on compliance will be expressed.
Circumstances may arise in which it is necessary for us to modify our opinion or withdraw from
the engagement.

The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable
assurance about whether material noncompliance with applicable laws and regulations, the

800.282.2440 | melansoncpas.com

w MELANSON

provisions of contracts and grant agreements applicable to major federal award programs, and
the applicable compliance requirements occurred, whether due to fraud or error, and express an
opinion on the City’s compliance based on the audit. 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, Government Auditing Standards, and the Uniform Guidance will always
detect material noncompliance when it exists. The risk of not detecting material noncompliance
resulting from fraud is higher than for that resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements is considered material if there is a substantial
likelihood that, individually or in the aggregate, it would influence the judgment made by a
reasonable user of the report on compliance about the City’s compliance with the requirements
of the federal programs as a whole.

As part of a compliance audit in accordance with GAAS and in accordance with Government
Auditing Standards, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also identify and assess the risks of material noncompliance, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.

Our procedures will consist of determining major federal programs and, performing the
applicable procedures described in the U.S. Office of Management and Budget OMB Compliance
Supplement for the types of compliance requirements that could have a direct and material effect
on each of the City’s major programs, and performing such other procedures as we consider
necessary in the circumstances. The purpose of those procedures will be to express an opinion
on the City’s compliance with requirements applicable to each of its major programs in our report
on compliance issued pursuant to the Uniform Guidance.

As also required by the Uniform Guidance, we will obtain an understanding of the City’s internal
control over compliance relevant to the audit in order to design and perform tests of controls 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 of the City’s major federal award programs. Our tests will be less in scope than would be
necessary to render an opinion on these controls and, accordingly, no opinion will be expressed
in our report. However, we will communicate to you, regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses
in internal control over compliance that we have identified during the audit.

We will issue a report on compliance that will include an opinion or disclaimer of opinion regarding
the City’s major federal award programs, and a report on internal controls over compliance that
will report any significant deficiencies and material weaknesses identified; however, such report
will not express an opinion on internal control.

800.282.2440 | melansoncpas.com