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State and Local Governments

State and Local Governments

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With professionals in Client Service Centers across the nation, Clifton Gunderson provides expertise and responsive service to state and local governments in the following areas.

Assurance Services

Clifton Gunderson brings 40 years of experience to governmental assurance engagements. Our professionals are available to provide the following services–

  • Financial Audits
  • Performance Audits
  • Forensic Audits
  • Attestation Engagements
  • Agreed Upon Procedures
  • Internal Control Reviews
  • Information Systems Reviews
  • OMB A-127 and A-130 Reviews
  • SAS 70 Reviews
  • Auditability Surveys
  • Compliance Audits
  • Economy and Efficiency Audits
  • Program Audits
  • Budget Reviews

Some of our state and local government experience includes–

  • State of Washington
  • Colorado Office of the State Auditor
  • Indiana Public Employees Retirement Fund
  • State of South Carolina
  • State of Pennsylvania
  • State of Ohio Teachers Retirement Fund
  • City of Phoenix, Arizona
  • City of Indianapolis, Indiana
  • City of Toledo, Ohio
  • City of Peoria and Peoria County, Illinois
  • Erie County, Ohio

Accounting and Financial Reporting

We provide timely, comprehensive, accurate financial information based on a thorough understanding of your financial needs. Financial statements are prepared in accordance with generally accepted accounting principles as determined by the Government Accounting Standards Board, as well as state statutes and regulations.

Our experience serving hundreds of governmental entities means you can always rely on insightful, complete and accurate financial statements.

Debt Issuance Consulting

A debt issuance plan is a critical document in the formation, development, financing and management of a project. It outlines the purpose, services, debt capacity, related property tax assessment limitations, estimated public improvement construction costs, and the projected revenue sources to repay debt and provide for operating needs.

Working with members of your consulting team, we can assist you with–

  • Financial forecasts, including:
    • Reasonableness of build-out assumptions
    • Bond issuance capacity
    • Estimated revenue sources to repay bond indebtedness
  • Property tax analysis and comparison
  • Representation to the oversight jurisdiction

Forecasting and Projections

Municipal financing is complex and multifaceted. You need an accounting firm with expertise and knowledge in bond structures, legal documents, credit enhancements and guarantees, covenants and sensitivity analyses. Clifton Gunderson completes forecasts to help local entities issue hundreds of millions of dollars in bonds every year.

We are familiar with all types of financing vehicles, including General Obligation Bonds, Revenue Bonds, Certificates of Participation, and loans from State Authorities that can be used to construct public improvements or repay developer advances.

When the main revenue source for the repayment of your bonds is property taxes, the cornerstone of your forecast is an analysis of the future assessed valuation in your taxing jurisdiction. We have the expertise to review and analyze the reasonableness of build-out schedules and the associated market values. We are also familiar with alternative revenue streams, including public improvement fees and development fees.

After bonds are issued, we can assist in managing your on-going ability to repay obligations and fund operations. We do this by preparing periodic financial projections with updated assessed valuation information. Our experts call upon extensive knowledge of valuation methods and the assessment processes. Periodic financial projections provide guidance to maintain the fiscal health and sustainability of your government.

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Debt Management

The issuing of bond indebtedness requires the timely oversight and management of principal and interest payments. It is also important to properly account for provisions for debt reserves, letter of credit enhancements and other related securities. We have successfully served as the stewards of more than $2 billion in debt instruments.

In addition to mandatory redemption of principal on your bonds, we monitor for required extraordinary redemption provisions and ensure compliance. We seek to optimize your financial interests through sound and knowledgeable recommendations, including the exercising of early redemption call provisions. We can also ensure that secondary market bond continuing disclosure reporting is completed in an accurate and timely manner in order to comply with provisions required by bond indentures and trust agreements.

In addition, we can track your investment earnings for arbitrage monitoring purposes related to IRS rules and regulations.

Escrow Verification

In order to take advantage of improved market conditions and achieve economic savings, new bonds may be issued at lower interest rates, with the proceeds used to redeem higher interest debt. You may also choose to refund bonds with restrictive covenants that may be an obstacle to future growth and success. The proceeds of the refunding issue are invested in an escrow account held by a trustee until the refunded bonds can be redeemed.

According to the Internal Revenue Code, the yield on the interest earned in the escrow account cannot exceed the interest yield on the refunding bonds. Issuers are required to have confirmation that the adequacy of the escrow to meet debt service requirements on the refunded bonds, and to confirm that the yield on the escrow does not exceed the yield on the refunding bonds.

Information Systems Auditing

Clifton Gunderson can assist you in evaluating your information systems, or those of your service organization.

SAS No. 70 Attestation Services

An independent study and evaluation of controls, an SAS No. 70 review provides third-party support for end user assurance and support. The review results in a report consistent with the American Institute of Certified Public Accountants SAS No. 70.

Information Systems Security

A structured approach to analyzing and assessing security controls. Scope of services include the review of–

  • Entity-wide security program planning and management
  • Access controls
  • Application software development and change control
  • Segregation of duties
  • System software
  • Service continuity
  • Input controls
  • Processing controls
  • Output controls
Technical Risk Assessment

We take a structured approach to assessing the impact of real and potential risks, using proprietary and standard methodologies to evaluate all levels of information security. It is the first and most crucial step in designing cost-effective, organization-specific security programs and processes.

Security Evaluation and Assessment Services

Clifton Gunderson can identify and assess your real and/or potential security control risks. Our scope of services includes–

  • Security policies, standards and procedures
  • Security architecture and design
  • Systems and network security diagnostics
  • Security management and administration
  • Technical IT security control (confidentiality, integrity, availability)
  • Operational effectiveness of systems and network controls
  • Application security reviews
Penetration Testing and Vulnerability Assessment

This is a real life, threat-based assessment of security using vulnerability assessment tools and other techniques to identify and exploit areas of risk exposure. Services include the assessment of–

  • Potential threats and vulnerabilities facing the external network perimeter
  • Potential threats and vulnerabilities facing the internal network infrastructure
  • System configuration policy vulnerabilities
  • Denial of services (DOS) vulnerabilities
Security Planning and Design Services

This range of services focuses on the future effectiveness of your security infrastructure and systems, and assists management in providing guidance and direction for information security. The scope of our services includes–

  • Formulation and tailoring of industry-standard corporate security policies and guidelines to be effective in an organization's environment.
  • Development and design of entity-wide security programs
  • Development and design of application security plans and programs
Data Analysis and Forensics

Using computer-assisted audit tools and techniques, we can analyze large volumes of data to discover facts, events or trends. We can also locate and recover hidden, "deleted" or elusive documents and data on all storage media and network configurations. Services include–

  • Process focused analysis
  • Customized data analysis
  • Forensic litigation support

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Health Care Compliance

Clifton Gunderson works on behalf of federal and state government agencies to assure that Medicare and Medicaid providers receive only what they are entitled to receive under federal and state laws and regulations. We currently have one of the largest staffs of Medicaid and Medicare audit and consulting professionals in the United States. Our experience with the operations of thousands of health care providers gives us unique insight into what federal and state agencies are looking for in the performance of audits for the Medicaid and Medicare programs.

Representative Client Work

The following clients and projects are representative of Clifton Gunderson's broad experience in the health care compliance industry.

  • Commonwealth of Virginia Department of Medical Assistance
  • State of Indiana
  • State of North Carolina
  • State of Maryland Department of Health and Mental Hygiene
  • State of Texas
  • State of Colorado
  • Commonwealth of Kentucky
  • State of Ohio
  • U.S. Attorneys and the U.S. Department of Justice (Commonwealth of Virginia, Oregon, Missouri, North Carolina, South Carolina, New York, Colorado, Tennessee, Minnesota, California, Idaho, and the District of Columbia)

Health Care Consulting Services

Over the years, Clifton Gunderson has built a reputation for high-quality consulting services for federal and state government agencies. Our health care consulting team has worked with federal agencies concerned with health care and health care research, including the Centers for Medicare and Medicaid Services, the Health Resources and Services Administration and the Department of Justice.

We have successfully completed assignments involving state Medicaid and other human service agencies, legislative offices and cabinet-level agencies in more than 20 states, including California, Delaware, District of Columbia, Indiana, Kentucky, Maryland, Mississippi, Montana, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Vermont, and Virginia.

Reimbursement Systems

Clifton Gunderson assists state agencies in reimbursement system design and development, and implementation of rate setting. We understand that there are a variety of stakeholders with an interest in the reimbursement and rate setting processes. Our consulting team works closely with all interested parties and is sensitive to the programmatic and political implications of our work.

We provide both planning and operational assistance in–

  • Analyzing reimbursement policies
  • Defining allowable costs
  • Developing rate setting systems and databases
  • Conducting fiscal impact modeling
  • Developing implementation strategies
  • Drafting regulations and state plan amendments
  • Waiver development
Policy Analysis and Legislative Studies

Clifton Gunderson assists governments in conducting research and analysis of many different health care issues. We conduct thorough investigations and analysis of federal and state activities, and perform comprehensive data collection activities to support our projects. We have developed expertise and conducted special studies in the following areas–

  • Reimbursement
  • Quality of care
  • Community based services
  • Long-term care
  • Special populations
  • State and federal laws and regulations
  • Staffing needs and requirements
Program Evaluations and Data Analysis

Our ability to collect and analyze data and work with a variety of organizations is essential to providing our clients with findings and recommendations to improve existing programs. We know the importance of accurate, reliable and accessible data to providing supportable results. Staff expertise includes–

  • Claims data analysis for cost and utilization projections
  • Claims data analysis for inappropriately paid claims
  • State contractor, including Medicaid fiscal agents, performance accountability
  • State contractor accountability risk assessments
  • State contractor information systems audits
  • Cost effectiveness studies
  • Survey design and implementation
  • Data management and analysis to establish patient acuity levels
  • Expenditure analysis
  • Simulation modeling
  • Payment accuracy measurement

Public Management Consulting

Building on a nationwide infrastructure and a successful 40-year track record in accounting, audit, tax, and f inancial consulting services, Clifton Gunderson takes a proactive approach to general management consulting support for government organizations. Serving government entities at the federal, state, and local level, and many of the nonprofit, community-based organizations that work with them, we offer a range of capabilities designed to help public sector clients improve organizational performance.

Management Accountability
  • Business continuity planning
  • Cost-benefit and return-on-investment analysis
  • Internal controls review
  • Performance auditing
Productivity Planning
  • Business process mapping, review and re-engineering
  • Competitive sourcing
  • Customer service review and analysis
  • Marketing and outreach program assistance
  • Performance planning and measurement
  • Strategic management planning and evaluation
  • Workplace analysis and redesign, including telecommunting training and technical assistance
Organizational Change
  • Diversity planning and management
  • Management assessment and review
  • Human capital planning and management
  • Organization development and team building

Other Consulting Services

Land Development Consultation

Our professionals have worked in both the private development and local government side of the entitlement process, offering a unique perspective to developers and throughout the development process.

Negotiation and Planning

Whether working with a governmental entity or a property owner association, we offer realistic growth solutions. Our expert negotiating skills and creative solutions can be invaluable in maintaining the strength and momentum necessary for a successful project.

Development Feasibility Studies

Our specialists utilize development experience, extensive government and development contacts, and refined research methods to provide feasibility studies for proposed developments. Assessments include analysis of governmental regulations, competing projects and appropriate markets. This data and analysis eliminates surprises and reduces risks. Frequently, our ability to suggest how to proceed will facilitate available public financing, additional property access and other governmental cooperation.

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