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Home My WebLink AboutAGENDA REPORT 1990 0919 CC REG ITEM 08WL] BERNARDO M. PEREZ Mayor SCOTT MONTGOMERY Mayor Pro Tern ELOISE BROWN Coundlmember CLINT HARPER, Ph.D. Coundimember PAUL W. LAWRASON, Jr. Councilmember LILLIAN KELLERMAN City Clerk TO: FROM: DATE: SUBJECT: MOORPARK ireM� STEVEN KUENY City Manager MOORPARK, CAUFORNIA CHERYL J. KANE City MA9fv City Attorney of IF ICK RICHARDS, A.LC.P. irector of A dnity Development R. ENNIS DELZEIT City Engineer �2��OHN V. GILLESPIE ief of Police RICHARD T. HARE City Treasurer M E M O R A N D U M Honorable City Council Richard Hare, Deputy City Manag r September 12, 1990 Engagement of Independent Auditor Since the City's incorporation the firm of Ernst and Young has been engaged as the City's independent auditor. As such, the firm reviews the general purpose financial statements each year and expresses an opinion as to the sufficiency of the statements per generally acceptable accounting principals promulgated by the National Accounting Standards Board. Per the Single Audit Act of 1984 and Office of Management and Budget (OMB) circular A -128 our independent auditor will also :review all federal programs revenues and related expenditures for program compliance. The attached engagement letter from Ernst and Young to the City of Moorpark confirms the re tationship of the firm with the City of Moorpark as the City's independent auditor. The work on the 1989 Audit is coming to a close and the published audit will be received within 30 days. The 1990 Audit work has already begun and it is anticipated to be completed prior to calendar year end. The 1990 Audit work is progressing within normal t-ae -ram -� RECOMMENDATION Authorize the continued engagement of the firm of Ernst and Young as the City's independent auditor and direct the City Manager to confirm the terms. 900912.1 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864 Ernst &Young Warner Corporate Center 21300 Victory Boulevard #1000 Woodland Hills. California 91367 -2533 Telephone: (818) 703 4700 Fax (818) 347 -9235 Telex 62571620 August 21, 1990 Mr. Steve Kueny City Manager Moorpark 799 Moorpark Avenue Moorpark, California 93021 Dear Mr. Kueny; This letter confirms our relationship as independent public accountants for 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. 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 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 c he 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, 1989 and 1990 audits will not exceed $17,500 and $18,500, respectively. 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. Fees for additional services, if any, will be based on Hours worked by the various grades of personnel at our standard rates applicable it) each. Naturally, we will discuss fee arrangements for specific projects with yotl an��l -ome to an agreement before the work is started. R' CEIVED AUG 2 7 gg CITY0 -- Ernst &Young Mr. Steve Kueny August 21, 1990 Page 2 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 audi t 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. Very truly yours, ff� f t"I- � The arrangements described above are acceptable to us. �• - •. By: Steve Kueny City Manager Date: Ernst &Young Warner Corporate Center 21300 Victory Boulevard #1000 Woodland Hills. California 91367 -2533 Telephone (818) 703 -4700 Fax (818) 347 -9235 Telex: 62571620 August 21, 1990 Mr. Steve Kueny City Manager Moorpark 799 Moorpark Avenue Moorpark, California 93021 Dear Mr. Kueny: This letter confirms our relationship as independent public accountants for 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. 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 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 he in conformity with the Single Audit act of 1984 and OMB Circular A -128. During the course of our audit, we may observee opportunities for economies in or improved controls over your operations and brim 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, 1989 and 1990 audits will not exceed $17,500 and $18,500, respectively. 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. Fees for additional services, if any, will be based on hours worked by the various grades of personnel at our standard rates applicable � each. Naturally, we will discuss fee arrangements for specific: proj � ects with you an c('Ille to rrn i0reernent before the work is started. Ernst &Young Mr. Steve Kueny August 21, 1990 Page 2 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. Very truly yours, O� f e"I The arrangements described above are acceptable to us. � • � I I 1 -. By: Steve Kueny City Manager Date: