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HomeMy WebLinkAboutAGENDA REPORT 1992 1007 CC REG ITEM 08J ITEM $ .18. VPPK Cq< %� MOORPARK `�v,� 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864 4, p9/ TEo J" MEMORANDUM TO: The Honorable City Council FROM: Richard Hare, Deputy City Manag6k j0/7 , 9Z DATE: September 30, 1992ACTION ���.�., Lam! SUBJECT: SELECT KPMG PEAT MARWICK AS -, INDEPENDENT AUDITOR (CC Mtg. 10-7-92) B • 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