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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 dC 0 0 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 -2- 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 .................. $ 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