HomeMy WebLinkAboutAGENDA REPORT 1991 1218 CC REG ITEM 08E ITEM a E.
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MOORPARK
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799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864
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MEMORANDUM "ORPARK- CALIFORN,A
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TO: Honorable City Council orf994
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FROM: Richard Hare, Deputy City Manag f
DATE: December 11, 1991 BY4/4440408--
RE: Consider Engagement of Ernst & Young
as Independent Auditor
Background
The auditing firm of Ernst & Young has served as the City's
independent auditor since 1983 . The firm has been instrumental in
working toward the establishment of the City's financial management
system. At this juncture the continued relationship with Ernst &
Young as the City's independent auditor provides continuity in the
financial management practices of the City.
The attached letter, dated August 26, 1991, from Ernst & Young,
clarifies the scope of work employed in conducting the annual
independent audit. As specified, the audit would be conducted in
conformance with generally accepted auditing standards and
Government Auditing Standards issued by the Comptroller General of
the United States. This includes an audit of and report on Federal
program revenues as required by the Single Audit Act of 1984 and
OMB Circular A-128. The total cost of the June 30, 1991 audit will
not exceed $18, 500 (01.4 . 116. 641) .
Recommendation
Staff recommends the continued engagement of Ernst & Young to
perform the annual independent audit for June 30, 1991 and requests
Council authorization to have the City Manager confirm the
engagement agreement.
PAUL W.LAWRASON JR. JOHN E.WOZNIAK SCOTT MONTGOMERY BERNARDO M.PEREZ ROY E.TALLEY JR.
Mayor Mayor Pro Tern Councilmember Councilmember Councilmember
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August 26, I991
Mr. Steve Kueny
City Manager
City of Moorpark
799 Moorpark Avenue
Moorpark, California 93021
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Dear,Mr. Kueny:
This letter confirms our relationship as independent public accountants for City of Moorpark and
provides an understanding of our scope of services.
Our recurring assignment is to audit and report on the City's annual general purpose financial
statements and Federal program revenues. In addition, we are available to perform special projects
for up to 160 hours through June 30, 1992 at the hourly rates specified below. The scope and
timing of the special projects will be determined by City management and will be agreed upon with
us before commencement of the work. We would like to be helpful on any other matters or
problems that may arise and hope that you will call at any time you think we can be of assistance.
We will conduct our audit of the City's annual general purpose financial statements in accordance
with generally accepted auditing standards and Government Auditing Standards issued by the
Comptroller General of the United States. Unless unusual conditions not now foreseen make it
impracticable to do so, our report on our audit of these financial statements will express our
opinion as to the fairness,in all material respects,of their presentation in conformity with generally
accepted accounting principles. Our audit 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 our audit, 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 levels 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, 1991 audit will not exceed $18,500. This fee
contemplates a closed,reconciled and balanced set of financial records presented for audit,as well
as maximum assistance from your,personnel in preparing schedules for the audit and performing
related tasks.
J ERNST&YOUNG
Mr. Steve Kueny
August 26, 1991
Page 2
Our hourly rates through June 30, 1992 for up to 160 hours of special projects as discussed above
will be as follows:
Partner $195
Senior Manager 160
Manager 110
Senior 85
Staff 65
Fees for additional services, if any, will be based on hours worked by the various grades of
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 it to us.
We appreciate the opportunity to act as your independent public accountants and we would be
pleased to furnish any additional information you may request concerning our responsibilities and
functions.
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Very truly yours,
ily
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The arrangements described above are acceptable to us.
CITY OF MOORPARK
By
Steve Kueny
City Manager
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Date