HomeMy WebLinkAboutC-1310 - Audit report for City fiscal year 1970-71DATE AMmt 14. 1970
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TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. 137,0
Description of Contract Airlit Egg= fnr fiaml y&= 1970 -71
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Authorized by Resolution No. 7249 , adopted on Allowt1n- t970
Effective date of Contract Aummt In 1970
Contract with Maier- Hm*tp sk 4 On-
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Amount of Contract X750 nn
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3 AGREEMENT FOR INDEPENDENT AUDIT
411
511 THIS AGREEMENT is made and entered into this Zo e-! day
6 i of , f 1970, by and between the CITY OF NEWPORT
7 BEACH, & municipal corporation, hereinafter referred to as "City,"
8 and BINDER, MESTYANEK & CO., a partnership, hereinafter referred to
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9 as "Auditor ".
10 IN CONSIDERATION of the premises and the agreements,
11 covenants and conditions hereinafter contained and to be kept and
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12 iperformed by the respective parties hereto, it is agreed as follows
13 1. Auditor hereby agrees, at such time or times as he
14 !j shall determine, to make an audit and examination of the books,
15 records, inventories and reports of all officers and employees of
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16 the City who receive, handle or disburse public funds for the
17 fiscal year 1970 -1971, beginning July 1, 1970, and ending June 30,
18 1971, in accordance with Section 1117 of the City Charter, in order
to express an opinion upon the financial statements of the City.
20 ! The audit shall embrace all funds of the City, including the 1911
21 ,I Act Improvement Bond Funds. The audit shall be conducted in
22 1 accordance with generally accepted auditing standards and shall
23 include such tests of the accounting records and such other
24 1 auditing procedures applicable in the circumstances as to enable
25 Auditor to express an opinion upon the financial statements of the
26 City. If circumstances are encountered which, in the judgment of
27 Auditor, prevent the expression of an unqualified opinion upon the
28 financial statements taken as a whole, such opinion shall be
29 qualified or omitted, but Auditor's report shall contain a state -
30 ,� ment of the reasons for the qualification or omission. To the
31 extent applicable, the audit shall include the audit procedures
32111 recommended in the booklet entitled "Check List for the Audit of
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1 the Financial Records of a California City '', which was published in
2 March, 1956, by the League"of California Cities, and the California
3 (Society of Certified Public Accountants.
4 2. Auditor agrees to render a report on his audit of the
5 City for the fiscal year to which this contract applies, accom-
6 panied by condensed financial statements, and also to present a
7 (short -form report to accompany the complete financial statements
8; submitted by the Finance Director. These reports will include an
9 unqualified or qualified opinion or a disclaimer of opinion on the
10 financial statements, according to the circumstances encountered,
11 as described in paragraph 1. Said report shall be submitted to the
12 City Council with a copy for each member and one for the City
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13 Manager, Finance Director, and City Attorney, and three additional
14 copies to be placed on file in the office of the City Clerk for
15 public inspection. In addition to the final report, Auditor shall
16 advise the Council not later than November 15 and a second time not
17 ,later than May 13 of the fiscal year as to the conditions found to
18 +exist. These interim reports shall consist of a short discussion
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19 or the performance of the accounting, procedures and any other
20 matters Auditor believes should be called to the attention of the
21 !Council.
22 1 3. Compensation shall be paid to Auditor for this audit
23 engagement in the total amount of $5,750.00, payable 25% on
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24 ! January 1, 25% on May 1, and 50% upon delivery of Auditor's report
25 following the close of the fiscal year.
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26 I 4. The audit and examination specified herein and the
27 fee stipulated contemplate that conditions satisfactory to the
28 ++ normal progress and completion of said audit and examination will
29� be encountered. In the event that actual conditions met are not
30 compatible with the usual and expected progress of the work and if
31 I in order to discharge its contractual obligation hereunder, in the
32 opinion of Auditor it would be necessary to do additional work or
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1 to expend unreasonable amounts of time not contemplated by this
2 contract because of (a) incompleteness of records, (b) abnormal
3 jerrors, (c) misappropriation of funds, (d) lack of cooperation from
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4 City employees, or (e) any other justifiable reasons, Auditor, upon
5 1 reasonable demonstration of the existence of such conditions, shall
6 be entitled to apply to the City Council for supplemental compen-
7 I sation at the rates specified in paragraph 6 hereof.
8 5. The audit and examination specified in paragraph 1
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9 i hereof is to be based upon tests and samples of the accounting
10 J records and transactions sufficient to satisfy Auditor of the
11 I fairness of presentation of the financial condition and operating
12 results of the City and is not to comprise a detailed examination
13 I of all transactions. It is understood that, owing to the test
14 character of the examination, reliance must be placed on the
15 adequacy of the systems of internal check and control as the
16 principal safeguard against defalcation and other irregularities of
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17 the same general nature, and, although Auditor will attempt to
18 i detect any defalcations or similar irregularities, Auditor does
19 I not assume the responsibility for doing so.
20 6. It is contemplated that Auditor may be requested to
21 perform services additional to the usual audit work, such as
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22 advising upon changes in the accounting methods or the personnel,
23 assisting in accomplishing changes in the recording or reporting,
24 investigating the compliance of lessees with the terms of City
25� leases, making special examinations or audits at the request of
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26 the City Council at times he would not otherwise be conducting the
27 audit or of officers, employees or departments who do not receive,
28 handle or disburse public funds and other similar services. In
29 I+ such circumstances the City Council or City Manager may authorize
30 Auditor to perform such work or render services in addition to
31 j those which are usual and customary in making an audit and
32 examination of the accounts and records of the City, and Auditor
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8/7/70
shall receive payment at the following rates per hour for
respective grades of staff members and partners used in performing
such work or services:
Partners . ........................:$25.00 per hour
Other supervisors ................ $20.00 per hour
Senior auditors ...................$15.00 per hour
Assistant auditors ................$12.00 per hour
Typists and clerical assistants .... $5.00 per hour
IN WITNESS WHEREOF, the parties hereto have executed this
agreement as of the date first above written.
APPROVED AS TO FORM:
CITY OF NEWPORT BEACH
Ci y A tto ey Mayor
ATTEST:
' City Clerk
Cl Y
BINDER, MESTYANEK & CO.
BY�
AUDITOR
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RESOLUrM 10, 7 z 4 9
A RESOLUTION OF THE tITT COUNCIL OF THE CITY
OB' HBT BEACH AUTHORIZING THE EXECUTION
OF AN AQREWB'T BETWEEN TNH CM OF MUMORT
BEACH AIM BIBM JUSTUMB & CO. FOR
AUDITING BERTICEI
WMF.AB, there ha6..'been presented to the City Comcil
of the City of Newport Beach a certain contract betwom the
City of Newport 4aach and Binder, Hestyanek & Co., a partner-
ship, far auditing services for the fiscal year 1970 -71; and
WHEREAS, the City Council has considered the terms
amd conditions of said agreement and found them to be fair and
equitable;
NOW, THEREFORE, BE IT RESOLVED that said agreement
for the services above described is approved, and the Myor and
City Clerk are hereby authorized and directed to execute the
same on behalf of the City of Newport Beach.
ADOPTED this 10th day of Amt, 1970.
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C
yor
ATTEST:
y r.Lerm
THStmh
8/6/70
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