HomeMy WebLinkAboutC-1567 - Auditing service agreement for 1973-74Deowbw 3, 1$73
Bindsr, MsstyareAt t Jahnecn
3822 Caopus Mtve, Suits 204
Newport Beach, CA 92860
i
DmIceed is a fully wamrted copy of the mwwft rt, to
the agr%WMt for the 1973 -74 Indspendent Audit VnVidisrg
!or a Mmmowent Letter.
Said agremmt was authorised by the City WwAdI cn
Novwbar 26, 1973 by the adoption of ftsolutian No.
8141.
IAUM L.egios, C.M.C.
City Clark
L L :ouk
enc.
cc: iYnancs Diseatcar
AMENDMENT
of
AGREEMENT FOR INDEPENDENT AUDIT
THIS AMENDMENT OF AGREEMENT is made and entered into
by and between the CITY OF NEWPORT BEACH, a municipal corpora-
tion, hereinafter referred to as "CITY," and BINDER, MESTYANEK
& JOHNSON, Accountants Professional Corporation, hereinafter
referred to as "AUDITOR ;"
W I T N E S S E T H:
WHEREAS, CITY and AUDITOR have heretofore entered
into an Agreement dated August 27, 1973, entitled "Agreement
for Independent Audit "; and
WHEREAS, the parties to the aforesaid agreement wish
to amend said Agreement as hereinafter set forth below;
NOW, THEREFORE, THE PARTIES AGREE that Paragraphs 2
and 3, on page 2 of said Agreement, are hereby amended to read
as follows:
"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 pre-
sent 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 circum-
stances encountered, as described in paragraph 1. Said report
shall be submitted to the City Council with a copy for each mem-
ber 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
-1-
These interim
7 r
• •
reports shall consist of a short discussion of the performance
of the accounting procedures and any other matters Auditor be-
lieves should be called to the attention of the Council. Auditor
agrees to render a Management Letter at the close of the fiscal
year, setting forth the problems and recommended solutions to
those problems as they relate to the internal controls of the
City's accounting system, as well as any other matters which
in the Auditor's opinion should be brought to the attention of
the City.
113. Compensation shall be paid to Auditor for this
audit engagement in the total amount of $7,000.00, payable 25%
on January 1, 1974, 25% on May 1, 1974, and 50% upon delivery
of Auditor's report following the close of the fiscal year."
IN WITNESS WHEREOF, the parties hereto have executed
this Amendment of Agreement on the ,3a TN day of Q_ . ✓FMS
1973.
�4
ATTEST: c9� /FpR �P
/ J
City Cler
APPROVED S�ASS TO FORM:
Wi
City 'Attorney
-2-
CITY OF NEWPORT BEACH
By :l
Mayor
CITY
BINDER, MESTYANEK & JOHNSON,
Accountants Professional Corporation
By:
AUDITOR
DON dm
11/14/73
�4�1V
&Y OF NEWPORT * EACH
M KORANDUM ..From. city ...
Attorney
Ta ... Finance Director November 15
........... ......... ..
RE: Amendment to Agreement for Independent Audit
George:
Please arrange to have the attached amended agreement executed
by Binder, Mestyanek & Johnson prior to the City Council's
meeting of November 26. Please advise Hal that we will send
him a fully executed copy after it has been approved by the
City Council and signed by the Mayor and City Clerk.
DENNIS O'NEIL
79:73..
J
NOV 2, IIQT�
^, -: _• :..
RESOLUTION NO. 8141
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE EXECUTION OF
AN AMENDED AGREEMENT BETWEEN THE CITY OF
NEWPORT BEACH AND BINDER, MESTYNEK AND JOHNSON,
ACCOUNTANTS, TO PROVIDE FOR PREPARATION OF
MANAGEMENT LETTER AT CLOSE OF FISCAL YEAR
WHEREAS, there has been presented to the City Council
of the City of Newport Beach a certain amended agreement
between the City of Newport Beach and Binder, Mestynek and
Johnson, Accountants, to provide for the preparation of a
Management Letter at the close of the 1973 -74 fiscal year, in
addition to the other terms and conditions set forth in that
agreement dated August 27, 1973, and authorized by Resolution
No. 8079; and
WHEREAS, the City Council has considered the terms
and conditions of said amended agreement, and found them to be
fair and equitable and in the best interests of the City;
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Newport Beach that said amended agreement 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 26th day of November , 1973.
Mayor
ATTEST:
City Clerk
mh
11/20/73
-
PURCHASE ORDER
n ,?
NO
WPpR
-;- OO 6
'1
CPQ
'"
OF'NEW RT
'-
BEACH-.,,
INVOICE IN, DUPLICATE
TXIS° ORDER, NUMBER
t d tt
I
the of the of
of Industrial Safety.
- I
"PEAR V9 ALL VIYDIcES SNIP- -
- PINS' NoTIOEf.'-EIO;$ OF LAD -
Show as 'a separate item any retail sales tax. use tax or Federal
-'
r
I
3300 NEWPORT BOULEVARD
tax! 'applicable to this purchase.' - -
NG. E %PRESS RECEIPTS AND ,
V ?
f
:;
NEWPORT BEACH, CALIFORNIA 92666
PACKAGES.
`
C9 - LP'
_
-
)
PHONE' `]I4, 673 -21 iD
DEL1vERY TICKETS• SHALL IN-
OLGDE_:UNIT PRICE.'. ..
DATE '
DEPT.
':.
3 F 4el%
- r1 ti "tom. i f
VENDOR
:,
UNLESS
OTHERWISE NOTED)
Buidei, `(�trstyar:k
n Lahr sac
1elf�Ott Beaeh, , Cad i
CITY -OF NEWPORT'BEACH
Th Articles covered by this Purchase Order or Contract must con-
for m' with Safety: Orders State California.. Division
..
_
t d tt
I
the of the of
of Industrial Safety.
`
i Y
`
Show as 'a separate item any retail sales tax. use tax or Federal
-'
r
tax! 'applicable to this purchase.' - -
This order subject to California sales taxi:. - '" , .
- ' -
._� '" :D. W. MEANS:'
All; of
transportation charges must be prepaid shown as
seeparats item on the, invoice. Do not include Federal- Iransporta-
PURCHASING "AGENT.( -
�:
t104 tax..
:,
•
CITY OF NEWPORT BEACH
CALIFORNIA
DATE August 30, 1973
TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. C -1567
Description of Contract Agreement for Independent Audit 1973 -74
Authorized by Resolution No. 8079 , adopted on
Effective date of Contract 7 -1 -73
Contract with Binder, Mestyansk 9 Johnson
Address 3622 Campus ]hive, Suite 204
Newport Beach, CA
Amount of Contract 8ee ocntract
i'
8 -27 -37
city fte
City Hall
3300 W. Newport Blvd.
Area Code 714
673 -2110
Augast 301, 1979
Hiffder, Mestymek t Jdm om
8822 Cmpus Drive
Suite 204
NoW t Beach, CA 92660
Subject: Apvo= nt for Indapa►dmt Audit
Enclosed in an executed copy of subject weft for
the fiscal year 1973. - 74. for your files. 8atd ogro msnt
was mdbmdnd by the City Cofncil cn AWwt 27 by the
adoption of Pnoluticn No. 8079.
leura TAO t C.M.C.
City Clerk
LUawk
am*
0
AGREEMENT FOR INDEPENDENT AUDIT
THIS AGREEMENT is made and entered into this ;L-7 7-1 ?"
day of AV G a S f , 1973 , 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 1973 -74 , beginning July 1, 1973 , and ending June
30,-1974 , 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-
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
,7anuar_y 1 1974 , 25 % on May 1, 1974 , 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-
11
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 ....................
$ 5 00
per
hour
Assistant auditors..... .........
$ 2 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.
'm.
a
`ASP
F R'
ITY OF NEWPORT BEACH
now
ATTEST:
ATTEST:
�! �m 2�L_
City Clerk
CITY
By:
By: ll C= rz.f
AUDITOR 1
Q�
DO'N:adw
dm
8/17/73
-U ....
2'r
RESOLUTION NO.
8079
A RESOLUTION OF TH- CITY COUNCIL
OF NEWPORT BEACH AUTHORIZING THE
AN AGREEMENT BETWEEN THE CITY OF
AND BINDER, MESTYANEK & JOHNSON,
PROFESSIONAL CORPORATION, FOR AU
OF THE CITY
EXECUTION OF
NEWPORT BEACH
ACCOUNTANTS
DITING SERVICES
WHEREAS, there has been presented to the City Council
of the City of Newport Beach a certain agreement between the.
City of Newport Beach and Binder, Mestyanek & Johnson,
Accountants Professional Corporation, for auditing services
for the fiscal year 1973 -74; 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 27th day of August , 1973.
Mayor
ATTEST:
City Clerk
DON /cs
8/20/73