HomeMy WebLinkAboutC-1470 - Auditing services 1972-73PURCHASE ORDER 7
No. 8627
INVOICE IN DUPLICATE
CITY OF NEWPORT BEACH TNI, ORO" , NUMBER YtU
APPEAR OR ALL INVOICES, SNIP -
PINS NOTICES, BILLS Of LA
3300 NEWPORT,
:BOULEVARD ING, EXPRESS RECEIPTS AN
NEWPORT BEACH, CALIFORNIA 92660 .. PACxASES. ..
:- DELIVERY TICNETs - SMIU.L I
PHONE: (7141 673 -2110 CLUDE UNIT PRICE.:
e-
VENDOR SHIP'
.. (SAME UNLtSS OTHERWISE NOTED)
C Binder, Mestyuak Johnson DATE 111 191
3622 Campus Drive, Suite 204
Newport Beach, Calif. DEPT City Council
QUANTITY
DESCRIPTION OF ARTICLES OR SERVICe5REQUIRED
UNIT PRICE
TOTAL
Auditing services duly 1, 1972 to June 30, 1973 as per
agreement for independent agreement
6000.00
Contract C1470
Resolution 7784
FOR CITY
USE ONLY
-
IMPORTANT
-
-
CODE
AMOUNT
CITY OF NEWPORT BEACH
The Articles covered by this Purchase Order or Contract nuart Cao-
^t
1416
6
form with the Safety Orders. of Abe State of Califeroe, Division
1 +
!
of Industrial Safety.
Show as a separate item any retail ssTa .fu, use ta: or Federal
#
I. applicable I. this purchase.
This order subject to Caliromin Sales tax. -
- +D. W. MEANS
411 allowable transportation charges must be prepaid and sbowu as
-
' - 'PURCHASING AGENT
I separate item on the invoice. lb not melude Federal bsemporta-
tic. tax.
DEPARTMENT DDPY
CITY OF NEWPORT BEACH
TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. - -.1470
Description of Contract
Authorized by Resolution No
Effective date of Contract
Contract with
Address
Amount of Contract
CALIFORNIA
City Hall
3300 W. Newport Blvd.
Area Code 714
673 -2110
DATE September 8, 1972
Audit Agreement
7784 , adopted on
September 6, 1972
Binder, 'estyanek & Johnson
3822 Campus Drive, Suite 204
Newport Beach, CA 92660
8 -21 -72
$6,100 - also see page 4 of contract
city Cle <
1]
•
AGREEMENT FOR INDEPENDENT AUDIT C •/*-7 0
THIS AGREEMENT is made and entered into this &-e6•
day of 1972 , by and between the CITY OF
NEWPORT BEACH, a municipal corporation, hereinafter referred to
as "City," and BINDER, MESTYANEK & JOHNSON, Accountants Professional
Corporation,
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 1972 -73 , beginning July 1, 1972 , and ending June
30, 1973, 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
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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 $6,000.00 , payable 25 % on
January 1, 1973, 25% on May 1, 1973 , 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
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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
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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 .................. $ 20.00 per hour
Senior auditors .................... $ 0 – per hour
Assistant auditors ................. $ 12.00 per hour
Typists and clerical assistants .... $�_– per hour
IN WITNESS WHEREOF, the parties hereto have executed this
agreement as of the date first above written.
APPROVED AS TO FORM:
f I
y Attorney
CITY OF NEWPORT BEACH
By :2;aGC&
Mayor
ATTEST:
City ter
CITY
B • Jh .: < <� s '�Zlt �Y..�L<
By: —
AUDITOR
DO�N:adw
-4- mh
8/7/72
RESOLUTION NO. 7 78 ;-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE EXECUTION OF
AN AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH
AND BINDER, MESTYANEK & JOHNSON, ACCOUNTANTS
PROFESSIONAL CORPORATION, FOR AUDITING SERVICES
WHEREAS, there has been presented to the City Council
of the City of Newport Beach.a certain contract between the
City of Newport Beach and Binder, Mestyanek & Johnson, Accoun-
tants Professional Corporation for auditing services for the
fiscal year 1972 -73; and
WHEREAS, the City Council has considered the terms
and 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 Mayor
and City Clerk are hereby authorized and directed to execute
the same on behalf of the City of Newport Beach.
ADOPTED this 4-4*h day of August , 1972.
ATTEST:
City Clerk
'i
Mayor
DON dm
8/8/72