HomeMy WebLinkAboutAGENDA REPORT 1987 0916 CC REG ITEM 08KCLINT HARPER, Ph.D.
Mayor
ELOISE BROWN
Mayor Pro Tern
THOMAS C. FERGUSON
Councilmember
JOHN GALLOWAY
Councilmember
JOHN PATRICK LANE
Councilmember
MAUREEN W. WALL
City Clerk
TO:
FROM:
DATE:
SUBJECT:
MOORPARK I7EM�,__
M E M O R A N D U M
STEVEN KUENY
City Manager
CHERYL J. KANE
City Attorney
PATRICK RICHARDS, A.I.C.P.
Director of
Community Development
R. DENNIS DELZEIT
City Engineer
JOHN V. GILLESPIE
Chief of Police
THOMAS P. GENOVESE
City Treasurer
The Honorable City Council
Steve Kueny, City Manager
September 11, 1987
Proposed Agreement with Arthur Young and Company
for Annual Audit Services
The accounting firm of Arthur Young has provided auditing services
and related financial consulting to the City since incorporation.
The City had an initial three year agreement for auditing services
for $3,300.00 per year.
They have proposed an increase to an amount not to exceed $9,500.00
for the audit work for 1986/87. This is comparable to other cities
similar in size and activities to Moorpark. The City's growth
and increased complexity and volume of financial transactions
warrants an increase in audit costs.
In addition to the audit work they have proposed a cost of $2,000.00
to compile and prepare the Annual Street Report and State Controller's
Report of Financial Transactions. Their services in preparation
of these reports was included in the budget appropriation. Both
the audit and report preparation costs are budgeted in account
01 -116 -541.
The firm of Arthur Young has provided excellent services during
the past three years and have good familiarity with our accounting
system and general operations of the City. They have a good reputation
among their public sector clients including the nearby cities of
Agoura Hills and Westlake Village. Another division of their
firm is conducting the Waterworks District Transfer Feasibility
Study.
799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864
RECOMMENDED ACTION
Authorize Arthur Young to perform:
1.) 1986/87 audit services at a cost not to exceed $9,500.00,
and
2.) Compilation /preparation of Annual Street Report and
State Controller's Report of Financial Transactions
at a cost not to exceed $2,000.00, and
3.) Direct City Manager to execute enclosed confirmation
of services.
MOOVARK, CALIFORNIA
City Council Meeting
of - - 198Z
ACTION:
By
QLX A MEMBER OF ARTHUR YOUNG INTERNATIONAL
515 South Flower Street
Arthur Young Los Angeles, California 90071
Telephone: (213) 977-3200
August 25 , 1987
Mr. Steve Kueny
City Manager
Moorpark
799 Moorpark Avenue
Moorpark, California 93021
Dear Mr . Kueny :
This letter confirms our relationship as certified public
accountants for Moorpark and provides an understanding of our
scope of services.
Our recurring assignment is examining and reporting on the City ' s
annual combined financial statements and Federal program revenues.
We also would like to be helpful on any problems that may arise ,
and hope that you will call at any time you think we can be of
assistance .
We will make our examination of the City ' s annual combined
financial statements in accordance with the standards for financial
and compliance audits contained in the Standards for Audit of
Governmental Organizations , Programs , Activities and Functions
and generally accepted auditing standards and, accordingly, include
such tests as considered necessary in the circumstances . An
audit is based on the concept of testing the data being examined;
therefore, there is risk that material will not errors,
be detected irregularities
es
and illegal acts, if they exist ,
unusual conditions not now foreseen make it impracticable to
do so, we will submit a report on our examination of these
financial statements which will express an opinion as to the
fairness of their presentation in conformity with generally
accepted accounting principles. Our examination of and reports
on your Federal program revenues will be in conformity with the
Single Audit Act of 1984 and OMB Circular A-128.
During the course of the examination , we may observe opportunities
for economies in or improved controls over your operations and
bring them to the attention of an appropriate level of management ,
either orally or in writing.
Our fees will be based on hours worked by the various grades
of our personnel , at our standard governmental rates applicable
to each . We will bill you monthly on this basis , plus
out-of-pocket expenses. The total cost of the June 30, 1987
examination will not exceed $9, 500. This fee contemplates maximum
assistance from your personnel in preparing schedules for the
}
a)o Arthur Young
Mr. Steve Kueny
August 25, 1987
Page 2
audit and performing related tasks. Fees for additional services ,
if any , will be based on hours worked by the various grades of
our personnel at our standard rates applicable to each. Naturally,
we will discuss fee arrangements for specific projects with you
and come to an agreement before the work is started.
With respect to the Single Audit workpapers, we will retain such
workpapers and reports for a minimum of three years from the
date of the audit report , unless we are notified by the City ' s
cognizant agency to extend such retention period. Our audit
workpapers will be made available upon request to the cognizant
agency or its designee or the General Accounting Office, at the
completion of the audit .
If these arrangements are acceptable to you , please sign one
copy of this letter and return to us .
We appreciate the opportunity to act as your independent auditors
and we would be pleased to furnish any additional information
you may request concerning our responsibilities and functions.
Very truly yours,
7617-
d'IA12
The arrangements described above are acceptable to us.
MOORPARK
By :
Steve Kueny
City Manager
Date :