HomeMy WebLinkAboutAGENDA REPORT 1992 1007 CC REG ITEM 08J ITEM $ .18.
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MEMORANDUM
TO: The Honorable City Council
FROM: Richard Hare, Deputy City Manag6k
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DATE: September 30, 1992ACTION
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SUBJECT: SELECT KPMG PEAT MARWICK AS -,
INDEPENDENT AUDITOR (CC Mtg. 10-7-92) B
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Background
The City of Moorpark has only used one independent auditor since
its incorporation. It is prudent to change the firm performing
independent audits occasionally in order to gain a different
perspective on operations and to maintain objectivity in the
performance of the audit. To this end and at the recommendation
of the Budget & Finance Committee (Lawrason, Montgomery) , staff
solicited proposals from area firms.
Seven proposals were received. They represented small, medium
and larger firms. The proposals were reviewed by the staff and
the Budget & Finance Committee. It was the committee and staff
recommendation that KPMG Peat Marwick be selected.
KPMG Peat Marwick
KPMG Peat Marwick is one of the largest auditing firms in the
world and has a reputation for superior client service and
excellent technical expertise. Their fee for performance of the
independent audit as proposed is $19, 000. This is $2 , 000 less
than what we had budgeted this year based on the increase
proposed by our current auditor. They also provided fees for
other audit work in addition to the annual audit which were very
competitive.
As one of the largest auditing firms in the world, KPMG is active
in setting the standards which are applied to governmental
accounting and participates as a member of the General Accounting
Standards Board. This expertise is communicated to their area
offices through a formal training program which allows their
clients to receive current information.
PAUL W.LAWRASON JR. JOHN E.WOZNIAK SCOTT MONTGOMERY BERNARDO M.PEREZ ROY E.TALLEY JR.
Mayor Mayor Pro Tem Councilmember Councilmember Councilmember
Printed On Recycled Paper
The Honorable City Council
September 30, 1992
Page 2
An additional service to the City provided without cost includes
an annual administrative review. This review allows their
clients to focus on an area of operations where savings in
efficiency may be obtained or controls may be improved. The
administrative review applied each year can help to improve the
effectiveness of the accounting operation with our limited staff
resources.
Recommendation
Authorize the City Manager to engage the firm of KPMG Peat
Marwick to perform the City of Moorpark's annual audit of its
financial statements for a fee not to exceed $19, 000, and to
perform other audit and accounting support as budgeted.
September 30, 1992 c:\wp51\Reports\CC.KPMG