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HomeMy WebLinkAboutAGENDA REPORT 1991 1204 CC REG ITEM 08I //y: 3 . ' ITEM 8. 1. eOeP�`n F°-./� MOORPARK ��9 2006 799 Moorpark Avenue Moorpark, California 93021 (805) 529.6864 9-6° ORPArZK. CALIFC?`.:IA Gly Council M©ofi ng r`' /3/,I�,�LiQ�ic91. ACTION:���' TO: Honorable City Council FROM: Richard Hare, Deputy City Manage Byl,jettoyAg,lsho REGARDING: Consider Authorizing Additional Accounting Services to Prepare Accounting System Documentation DATE: November 25, 1991 Background The City of Moorpark has engaged a certified public accountant since 1988 to assist with special projects. Mr. John Riela provides his services under an existing contract with the City. Whenever any additional work beyond the original contact scope is contemplated staff must return to the City Council for an appropriation to perform the work. Accounting Procedures Over the last year the City has made great strides in the computerization of the general ledger and accounts payable systems, however procedures documenting the treatment of various transactions have not been formalized. This is an essential step in establishing the City's internal controls and standardizing the recordation of transactions. Staff has solicited informal estimates from accounting firms in the area and from the City' s current independent auditor, Ernst & Young. The range in costs for this project has been very high and could exceed fifteen to twenty thousand dollars. Additionally, the use of any firm not already familiar with the City's operations could increase the cost of the project and lengthen the amount of time required to complete the project. PAUL W. LAWRASON JR. BERNARDO M. PEREZ SCOTT MONTGOMERY ROY E. TALLEY JR. JOHN E. WOZNIAK Mayor Mayor Pro Tem Councilmember Councilmember Councilmember Printed On Recycled Paper aJ. . . The staff has also requested an estimate from our contract accountant. His current rate of thirty-five dollars per hour is much less than the rates charged by other firms and he has a familiarity with the City' s internal operations. The Budget & Finance Committee considered the project and determined that a fixed amount should be set for the project as opposed to the current hourly rate contract which secures Mr. Riela ' s services. Project Scope Based upon the needs of the City the following accounting systems and practices would be reviewed and documented with clerical support being provided by the Administrative Services Department: 1. Cash Management System 2 . Accounts Payable System 3 . Journal Entries of Transactions 4 . General Ledger Entries 5. Tracking of Deposits & Drawdowns 6. Preparation of Monthly Bank Reconciliations 7 . Preparation of Monthly Interim Financial Reports Fixed Proiect Cost The contract accountant has agreed to perform the above work for a fixed fee of five thousand dollars ($5, 000) . Written procedures and other related documentation will be provided on 32" diskettes in Word Perfect 5. 1 document files. Supporting spreadsheets to be provided in Lotus WK. 1 files. All drafts are to be provided to the Administrative Services department for editing no later than January 10th. Each section of the project is to be transferred to Administrative Services as it is completed. Recommendation Staff recommends the transfer of $5, 000 from general fund reserve to the Administrative Services Contract Services account (01. 4. 117. 641) and authorizing the City Manager to engage John Riela, CPA, to document the accounting system and make recommendations for improvments as outlined above.