HomeMy WebLinkAboutC-1652 - Auditing agreement 1974-750
CITY OF NEWPORT BEACH
CALIFORNIA
City Hall
3300 W. Newport Blvd.
Area Code 714
673 -2110
TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. 1652
DATE August 16, 1974
Description of Contract Auditing Services for 1974 -75
Authorized by Resolution No. 8332 , adopted on August 12, 1974
Effective date of Contract Aumat 14. 1974
Contract with Mastyansk and Mestyanek
Address 3822 Campus Drive, Suite 204
Nek,=t Beach, CA 92660
Amount of Contract see oontraet
0
August 169 1974
Yestyanek 6 Mestyansk 7.
3822 Campus Drive, Suite 204 -
Newport Beach, CA 92660
Subject: Auditing Services for 1974 -75
C -1652
Enclosed is a fully executed copy of subject agreement.
"he City Council authorized this agreement on August 12
by the adoption of Resolution No. 8332.
?aura Lagios, rM
City Clerk
LL:swk
enc.
cc: Finance Director
s 1.
AGREEMENT FOR INDEPENDENT AUDIT
Li
fiHIS AGREEMENT is made and entered into this 147W day
of A" r L) q7 , 19 74 , by and between the CITY OF NEWPORT
BEACH, a municipal corporation, hereinafter referred to as "City ",
and MESTYANEK AND MESTYANEK, Certified Public Accountants ,
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, hpnndle or disburse public funds for the
fiscal year 1974 -75 , beginning July 1, .1974 , and ending June 30,
1975 , 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, including
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 stateme nts.of
the City. If circumstances are encountered which, in the judgment
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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 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 attention of the
Council. Auditor agrees to render a Management Letter at the close
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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.
3. Compensation shall be paid to Auditor for this
audit engagement in the total amount of $ 7,000.00 , payable 25%
on January 1, 1975 , 25% on May 1, 1975 , 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
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
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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
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 examination 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:
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r ..
go
40
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.
OF NEWPORT BEACH
7/74
CITY
MESTYANEK AND MESTYANEK,
Certified Public Accountants
By: AL t- ( � i7tt �
Tittle: (�
By: ) i� u�afi ��Jo YV
T le: IJ
AUDITOR
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DDO:mh
7/30/74
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RESOLUTION NO. S 33 9
By }he CITY COUNCIL A RESOLUTION OF THE CITY COUNCIL OF THE CITY
CITY OF Mrawo gGACH OF NEWPORT BEACH AUTHORIZING THE EXECUTION OF
AN AUDITING SERVICES AGREEMENT BETWEEN THE
CITY OF NEWPORT BEACH AND MESTYANEK & MESTYANEK,
CERTIFIED PUBLIC ACCOUNTANTS, FOR FISCAL YEAR
1974 -1975
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 Mestyanek & Mestyanek, Certified
Public Accountants, for auditing services for the Fiscal Year
1974 -1975; and
WHEREAS, the City Council has considered the terms
and conditions of said auditing services 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 auditing services agree-
ment 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 12th day of August, 1974.
ATTEST:
City Clerk
Mayor
mh
7/31/74