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HomeMy WebLinkAbout83-118 - Agreement for Auditing ServicesRESOLUTION NO. 83 -118 RESOLUTION THE CITY NEWPORT BEACH THE MAYORS &C OF CITY . CLERK TO EXECUTE AN AGREEMENT BETWEEN THE CITY AND SIMONIS MORELAND ACCOUNTANTS, INC. CONCERNING AUDITING SERVICES FOR FISCAL YEARS 1983 - '84, 1984 - 1$51 AND 1985 - 186 WHEREAS, there has been presented to the City Council of the City of Newport Beach a certain agreement between the City and Simonis Moreland Accountants, Inc., Certified Public Accountants, in connection with auditing services for the City for fiscal years 1983 - '84, 1984 - '85 and 1985 - '86; and WHEREAS, the City Council has reviewed the terms and conditions of said agreement and found them to be fair and equitable. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that the agreement described above, a COPY of which is attached hereto as Exhibit "A ", be and hereby is approved; and BE IT FURTHER RESOLVED that the Mayor and City Clerk be and hereby are authorized and directed to execute same on behalf of the City of Newport Beach. ADOPTED this 14th day of November i ATTEST: - -�j vi ciA • RSP /Auditor 1983. FOR INDEPENDENT AUDIT • THIS AGREEMENT is made and entered into this _ day of , 1983, by and between THE CITY OF NEWPORT BEACH, a Municipal Corporation and Charter City, hereinafter referred to as "City" and SIMONIS MORELAND ACCOUNTANTS, INC., Certified Public Accountants, hereinafter "Accountant" with respect to the following facts, the materiality and existence of which are agreed to between the parties: 1. Accountant hereby agrees, at such time or times as he shall determine, to make an audit and examination of the books, records, inventories and reports of all officers and employees of the City who receive, handle or disburse public funds, for fiscal year 1983 - 184, commencing July 1, 1983 and ending June 30, 1984; for fiscal year 1984 - 185, commencing July 1, 1984 and ending June 30, 1985; for fiscal year 1985 - 186, commencing July 1, 1985 and ending June 30, 1986, pursuant to Section 1117 of the City Charter, in order to express an opinion on City's financial statements. The audit shall embrace all funds of the City, including the 1911 Act Improvement Bond Funds. The audit shall be conducted in accordance with generally EXHIBIT A 0 accepted auditing standards and shall include, among other things, such tests of City's accounting records and other audit- ing procedures which will enable Accountant to express an opinion on City's financial statements. Should circumstances be encountered which, in the judgment of Accountant, prevent the expression of an unqualified opinion on City's financial statements taken as a whole, such opinion shall be qualified or omitted; however, Accountant's report shall contain a statement of the reasons for the qualification or omission. To the extent applicable, the audit shall include the audit procedures recommended in the booklet entitled "Checklist for the Audit of Financial Records of a California City," published by The League of California Cities and The California Society of Certified Public Accountants. 2. Accountant agrees to render a report, on the results of his audit of City's financial statements for the fiscal years to which this contract applies, together with condensed financial statements. Accountant shall also present a short form report which shall accompany the completed financial statements submitted by the Finance Director. Accountant's reports shall include a qualified or unqualified opinion, or disclaimer of opinion, on the status of City's financial N • statements, acccording to the circumstances encountered and described in Paragraph 1 hereof. A total of 12 copies of said • report shall be submitted as follows: Six copies to the City Council, one copy to the City Manager, one copy to the Finance Director, one copy to the City Attorney, and 3 additional copies which shall be placed on file in the Office of the City Clerk for public inspection. In addition to the final report, Accountant shall advise the City Council, not later than November 15th of each respective fiscal year, and a second time, not later than May 13th of each respective fiscal year, as to the conditions. found to exist. These interim reports shall consist of a short discussion on the performance of the accounting procedures, and any other matters, Accountant believes should be called to the attention of the City Council. Accountant agrees to render a Management Letter at the close of each respective fiscal year, setting forth the problems and recommended solutions to those problems as they relate to the internal controls of City's accounting system, as well as any other matters which, in Accountant's opinion, should be brought to the attention of City. 3. Compensation to be paid Accountant for auditing services for fiscal year 1983 - '84, shall be in the amount of Thirteen Thousand Dollars ($13,00.00), payable half on May 1, �3 • 1984, and the balance upon delivery of Accountant's report, following the close of fiscal year 1983 - 184. . 4. Compensation to be paid Accountant for auditing services for fiscal year 1984 - '85, shall be in the amount of Fourteen Thousand Dollars ($14,00.00), payable half on May 1, 1984, and the balance upon delivery of Accountant's report following the close of fiscal year 1984 - 185. 5. Compensation to be paid Accountant for auditing services for fiscal year 1985 - '86, shall be in the amount of Fifteen Thousand Dollars ($15,00.00), payable half on May 1, 1985, and the balance upon delivery of Accountant's report following the close of fiscal year 1985 - 186. 6. The audit and examination referred to herein and the fees agreed on contemplate that conditions satisfactory to normal progress and completion of said audit and examination will be encountered. In the event that actual conditions encountered are not compatible with usual and expected progress, and, in order to discharge the contractual obligations herein, in the opinion of Accountant, it is necessary to perform additional work, or to expend additional amounts of time not contemplated by this contract, due from but not limited to: (a) Incompleteness of records; (b) Abnormal errors; (c) Misappropriation of funds; 4 is (d) Lack of cooperation from City employees; or (e) Any other Justifiable reasons then and in that event Accountant, after • reasonable demonstration of the existence of such conditions, shall be entitled to re -apply to the City Council for supplemental compensation for such additional services payable at the prevailing rates per hour for respective grades of staff members and partners used in the performance of such work or services. 7. The audit and examination specified in Paragraph 1 hereof shall be based on tests and samples of the accounting records and transactions of City, sufficient to satisfy Accountant of the fairness of the presentation of the financial condition and operating results of City and is not intended to comprise a detailed examination of all City transactions. It is further understood that owing to the test of character of the examination, reliance must be placed on the adequacy of the system of internal "checks and controls" as the principal safeguard against defalcations and other irregularities of the same general nature. Further, Accountant will attempt to detect any defalcations, or similar irregularities, however, Accountant does not assume any responsibility therefore. 8. It is contemplated that Accountant may be requested 5 • to perform additional services over the usual audit services referred to herein, such as advising City of changes in accounting methods used or in personnel required to assist: in accomplishing any changes of the method of recording or reporting used; the investigation of lease compliance by leesees within terms of City leases; performing special examinations or audits at the request of the City Council at times not otherwise scheduled for audits, or of officers, employees or departments who do not receive, handle or disburse public funds and other similar services. In such circumstances, the City Council, City Manager, or his designated representative may authorize Accountant to perform such work, or render services, in addition to those which are usual and customary in making an audit and examination of the accounts and records of City, and Accountant shall receive payment at the prevailing rates, per hour, for respective grades of staff members and partners used in performing such work or services. C • IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. • ATTEST: City Clerk APPROVED AS TO FORM: City Attorney AGB /Auditor 7 CITY OF NEWPORT BEACH A Municipal Corporation By Mayor SIMONIS MORELAND ACCOUNTANTS, INC. Certified Public Accountants LW LM