HomeMy WebLinkAboutC-1371 - Auditing services for 1971-72f v
AGREEMENT FOR INDEPENDENT AUDIT
THIS AGREEMENT is made and entered into this 3& tN'
day of %TV N E , 1971 , by and between the CITY OF
NEWPORT BEACH, a municipal corporation, hereinafter referred to
as "City," and BINDER, MESTYANEK, JOHNSON & CO.,
hereinafter referred to as "Auditor ".
IN CONSIDERATION of the premises and the agreements,
covenants and conditions hereinafter contained and to be kept and
performed by the respective parties hereto, it is agreed as
follows:
1. Auditor 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 the
fiscal year 1971 -72 , beginning July 1, 1971 , and ending June
30, 1972 , in accordance with Section 1117 of the City Charter,
in order to express an opinion upon the financial statements of
the City. The audit shall embrace all funds of the City, inc-
luding the 1911 Act Improvement Bond Funds. The audit shall be
conducted in accordance with generally accepted auditing standards
and shall include such tests of the accounting records and such
other auditing procedures applicable in the circumstances as to
enable Auditor to express an opinion upon the financial statements
of the City. If circumstances are encountered which, in the
judgment of Auditor, prevent the expression of an unqualified
opinion upon the financial statements taken as a whole, such
opinion shall be qualified or omitted, but Auditor's report
shall contain a statement of the reasons for the qualification
or omission. To the extent applicable, the audit shall include
-1-
the audit procedures recommended in the booklet entitled "Check
List for the Audit of the Financial Records of a California City ",
which was published in March, 1956, by the League of California
Cities, and the California Society of Certified Public Accountants.
2. Auditor agrees to render a report on his audit of
the City for the'fiscal year to which this contract applies,
accompanied by condensed financial statements, and also to present
a short -form report to accompany the complete financial statements
submitted by the Finance Director. These reports .will include an
unqualified or qualified opinion or a disclaimer of opinion on the
financial statements, according to the circumstances encountered,
as described in paragraph 1. Said report shall be submitted to
the City Council with a copy for each member and one for the City
Manager, Finance Director, and City Attorney, and three additional
copies to be placed on file in the office of the City Clerk for
public inspection. In addition to the final report, Auditor shall
advise the Council not later than November 15 and a second time
not later than May 13 of the fiscal year as to the conditions
found to exist. These interim reports shall consist of a short
discussion of the performance of the accounting procedures and
any other matters Auditor believes should be called to the atten-
tion of the Council.
3. Compensation shall be paid to Auditor for this audit
engagement in the total amount of $5,750.00 payable 25 % on
January 1 25 % on May 1 and 50% upon delivery
of Auditor's report following the close of the fiscal year.
4. The audit and examination specified herein and the
fee stipulated contemplate that conditions satisfactory to the
normal progress and completion of said audit and examination will
be encountered. In the event that actual conditions met are not
-2-
compatible with the usual and expected progress of the work and
if in order to discharge its contractual obligation hereunder, in
the opinion of Auditor it would be necessary to do additional
work or to expend unreasonable amounts of time not contemplated
by this contract because of (a) incompleteness of records, (b)
abnormal errors; (c) misappropriation of funds, (d) lack of
cooperation from City employees, or (e) any other justifiable
reasons, Auditor, upon reasonable demonstration of the existence
of such conditions, shall be entitled to apply to the City Council
for supplemental compensation at the rates specified in paragraph
6 hereof.
5. The audit and examination specified in paragraph 1
hereof is to be based upon tests and samples of the accounting
records and transactions sufficient to satisfy Auditor of the
fairness of presentation of the financial condition and operating
results of the City and is not to comprise a detailed examination
of all transactions. It is understood that, owing to the test
character of the examination, reliance must be placed on the
adequacy of the systems of internal check and control as the
principal safeguard against defalcation and other irregularities
of the same general nature, and, although Auditor will attempt
to detect any defalcations or similar irregularities, Auditor
does not assume the responsibility for doing so.
6. It is contemplated that Auditor may be requested
to perform services additional to the usual audit work, such as
advising upon changes in the accounting methods or the personnel,
assisting in accomplishing changes in the recording or reporting,
investigating the compliance of lessees with the terms of City
leases, making special examinations or audits at the request of
the City Council at times he would not otherwise be conducting
the audit or of officers, employees or departments who do not
-3-
receive, handle or disburse public funds and other similar services.
In such circumstances the City Council or City Manager may authorize
Auditor to perform such work or render services in addition to
those which are usual and customary in making an audit and exami-
nation of the accounts and records of the City, and Auditor 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 ..................
$2-0—.GU—
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.
CITY OF NEWPORT BEACH
By:
Mayor
APPROVED AS TO FORM:
n ' � ATTEST:
City Attorney,.
City Clerk
CITY
i
Ai
By: s / /y ' c /V
DO`N:adw
-4-
VENDOR
PURCHASE ORDER a
AY OF NEWPORT B&H
Binder, Hestyanek, Johnson & Co.
3471 Via Lido
Newport Beach, Calif. 9266U
3300 NEWPORT BOULEVARD
NEWPORT BEACH, CALIFORNIA 92660
PHONE: (714) 673 -2110
SHIP TO
tSAME W41., .S Di F.FWISF NOTED)
.No. 5987' if
'INVOICE IN DUPLICO
THIS ORDER NUMBER MUST
APPEAR ON ALL INVOICES, SHIP-
PING NOTICES, BILLS Of LAD-
ING, EXPRESS RECEIPTS AND
PACKAGES. -
DELIVERY TICKETS SMALL IN-
CLUDE UN1- PRICE.
DATE July 8. 1971
DEPT City Council
QUANTITY
DESCRIPTION OF ARTICLES OR SERVICES REQUIRED
UNIT PRICE
TOTAL
AGREEMENT FOR INDEPENDENT AUDIT AS PER CONTRACT
575U.00
CONTRACT C -1371
RESOLUTION 7457
FOR CITY
USE ONLY
IMPORTANT
CODE
AMOUNT
CITY OF NEWPORT BEACH
14 16
5750.OU
The Articles rovered by this Purchase Order or Contraet most Don -
form with the Safety Orders of the State of California, Division
of Industial Safety.
" "' --
Show as a separate item any retail sales tax, use tax or Federal
..
tax applicable to this purchase.
This order subject to California sales Lax.
D. W. MEANS
All ;dlowoble trn.por hdi-, rharncw must be it d and sawn as
PURCHASING AGENT
a separate item on the inw.,.:,e. LID rat include Federl transporta-
tion tax.
DEPARTMENT COPY
6
CITY OF NEWPORT BEACH
CALIFORNIA
City Hall
3300 W. Newport Blvd.
Area Code 714
673 -2110
DATE July 7, 1971
TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. C -1371
Description of Contract Agree mt for Independent Audit
Authorized by Resolution No. 7457 , adopted on June 28, 1971
Effective date of Contract June 30, 1971
Contract with Binder, V"tyanek, Johnson & Co.
Address
Pmount of Contract
c/c Attorney
3471 via Lich
Newport Beach, CA 92660
$5,750.:0
city Cle c ,
r
City Clerk
Finance Director
City Clerk
Agreement for Independent Audit
July 2, 1971
Please have Binder, Mestyanek, Johnson & Co. execute the attached
original and one copy of agreement for auditing services for 1971 -72
and return the signed original to the City Clerk's office. Said agreement
was authorized by the City Council on June 28. 1971 by the adoption of
Resolution No. 7457.
LAURA LAGIOS, City Clerk
By:
LL:dg
Att.
Deputy
AGREEMENT FOR INDEPENDENT AUDIT
THIS AGREEMENT is made and entered into this 3o T/i
day of tjhl r , 1971 , by and between the CITY OF
NEWPORT BEACH, a municipal corporation, hereinafter referred to
as "City." and BINDER, MESTYANEK, JOHNSON & CO.,
hereinafter referred to as "Auditor"
IN CONSIDERATION of the premises and the agreements,
covenants and conditions hereinafter contained and to be kept and
performed by the respective parties hereto, it is agreed as
follows:
1. Auditor 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 the
fiscal year 1971 -72 beginning July 1, 1971 and ending June
30, 1972 , in accordance with Section 1117 of the City Charter,
in order to express an opinion upon the financial statements of
the City. The audit shall embrace all funds of the City, inc-
luding the 1911 Act Improvement Bond Funds. The audit shall be
conducted in accordance with generally accepted auditing standards
and shall include such tests of the accounting records and such
other auditing procedures applicable in the circumstances as to
enable Auditor to express an opinion upon the financial statements
of the City. If circumstances are encountered which, in the
judgment of Auditor, prevent the expression.of an unqualified
opinion upon the financial statements taken as a whole, such
opinion shall be qualified or omitted, but Auditor's report
shall contain a statement of the reasons for the qualification
or omission. To the extent applicable, the audit shall include
-1-
the audit procedures recommended in the booklet entitled "Check
List for the Audit of the Financial Records of a California City ",
which was published in March, 1956, by the League of California
Cities, and the California Society of Certified Public Accountants.
2. Auditor agrees to render a report on his audit of
the City for the 'fiscal year to which this contract applies,
accompanied by condensed financial statements, and also to present
a short -form report to accompany the complete financial statements
submitted by the Finance Director. These reports will include an
unqualified or qualified opinion or a disclaimer of opinion on the
financial statements, according to the circumstances encountered,
as described in paragraph 1. Said report shall be submitted to
the City Council with a copy for each member and one for the City
Manager, Finance Director, and City Attorney, and three additional
copies to be placed on file in the office of the City Clerk for
public inspection. In addition to the final report, Auditor shall
advise the Council not later than November 15 and a second time
not later than May 13 of the fiscal year as to the conditions
found to exist. These interim reports shall consist of a short
discussion of the performance of the accounting procedures and
any other matters Auditor believes should be called to the atten-
tion of the Council.
3. Compensation shall be paid to Auditor for this audit
engagement in the total amount of $5,750.00
January 1
25 % on
May 1
payable 25% on
and 50 % upon delivery
of Auditor's report following the close of the fiscal year.
4. The audit and examination specified herein and the
fee stipulated contemplate that conditions satisfactory to the
normal progress and completion of said audit and examination will
be encountered. In the event that actual conditions met are not
-2-
0 0
compatible with the usual and expected progress of the work and
if in order to discharge its contractual obligation hereunder, in
the opinion of Auditor it would be necessary to do additional
work or to expend unreasonable amounts of time not contemplated
by this contract because of (a) incompleteness of records, (b)
abnormal errors; (c) misappropriation of funds, (d) lack of
cooperation from City employees, or (e) any other justifiable
reasons, Auditor, upon reasonable demonstration of the existence
of such conditions, shall be entitled to apply to the City Council
......................... .
for supplemental compensation at the rates specified in paragraph
6 hereof.
5. The audit and examination specified in paragraph 1
hereof is to be based upon tests and samples of the accounting
records and transactions sufficient to satisfy Auditor of the
fairness of presentation of the financial condition and operating
results of the City and is not to comprise a detailed examination
of all transactions. It is understood that, owing to the test
character of the examination, reliance must be placed on the
adequacy of the systems of internal check and control as the
principal safeguard against defalcation and other irregularities
of the same general nature, and, although Auditor will attempt
to detect any defalcations or similar irregularities, Auditor
does not assume the responsibility for doing so.
6. It is contemplated that Auditor may be requested
to perform services additional to the usual audit work, such as
advising upon changes in the accounting methods or the personnel,
assisting in accomplishing changes in the recording or reporting,
investigating the compliance of lessees with the terms of City
leases, making special examinations or audits at the request of
the City Council at times he would not otherwise be conducting
the audit or of officers, employees or departments who do not
-3-
0 0
receive, handle or disburse public funds and other similar services.
In such circumstances the City Council or City Manager may authorize
Auditor to perform such work or render services in addition to
those which are usual and customary in making an audit and exami-
nation of the accounts and records of the City, and Auditor 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 ..................
$TT--07—
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:
/ r
City Attorney,t.cr',r�
CITY OF NEWPORT BEACH
By:
Mayor
ATTEST:
City Clerk
CITY
By:
sm
AUDITOR
DO`N:adw
lu-'s aLMICS go. Z45 7.
% RVAOLU-mm r- TWA avy ciyjvcl'� Cry' I'M CITY
OF MI"FIT AurNMraw TM L--,'U_CvrI0v
Ax' Awkzli�-Nz BLIr-fkLN TMP4 CITY " Uvrm
AND DINDSR, MOSTYARMs JWJMCU & CO-
FOR AUDITWG SZRVI"-'
NUMAS, th,.va hao been prwaented to the City COWMil
of the Cit- of Newport Be�,,cii a ceru:An contract between ti*
Cit-,v of Xewport St-aeh tmi aindtr, plo #twlnek, Johnson & Co., a
pzartw.!vsbip, Zcx maitiz%q jz-rvice,~ for the, fixcal year 1971-721
and
vaMMASO th,%� City Council halt considezed the t rmks
-in:1 cxWottions of said :graaaent and found th4w to be fair and
NCM* 7W-,RU(At:a " IT MSOLVID Soy the City Council Of
the City of Ne*Vort Seach t1wt said aq.roemant for the avrvicvs
above eascribed is appremed, and the: M.%yor and City Clerk :era
hereby authorized _md directed to aveoute the Senn On tLdl&lf Of
the City of Ale',oport .mach.
ADORIMi) thij ."111A 4'�4y of 4jiAv, 19V,.
Havor
ATTL-T:
city cl.�!rk
Mh
6/24/71