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
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ATTEST:
- -�j vi ciA
• RSP /Auditor
1983.
FOR INDEPENDENT AUDIT
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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
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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
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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,
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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;
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(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
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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.
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IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the day and year first above written.
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ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
AGB /Auditor
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CITY OF NEWPORT BEACH
A Municipal Corporation
By
Mayor
SIMONIS MORELAND ACCOUNTANTS, INC.
Certified Public Accountants
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