HomeMy WebLinkAboutC-1992 - 1977-78 audit serviceCITY OF NEWPORT BEACH
CALIFORNIA
City Hall
3300 W. Newport Blvd.
Area Code 714
DATE Decsaber 1, 1977
TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. 1992
Description of Contract Anditiu SsrVj"s /BY 1977 -78
Authorized by Resolution No. 9425 adopted on 11 -28 -77
Effective date of Contract 12 -1 -77
Contract with Crsnstoan, CPA's
Address 610 Newcort Center Dr.
Newmrt Deseh, CA 92660
Amount of Contract $8,000
City Clerk
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AGREEMENT FOR INDEPENDENT AUDIT
This Agreement is made and entered into this 114z-
day of ALdp,,,, IIIA I 1977, by and between the CITY
,.
OF NEWPORT BEACH, a municipal corporation, hereinafter referred
to as "City ", and HURDMAN AND CRANSTOUN, Certified Public
Accountants, hereinafter referred to as "Auditor ".
NOW, THEREFORE, 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 1977 -78, beginning July 1, 1977, and
ending June 30, 1978, 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 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,
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theaudit 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 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 Eight Thousand Dollars
($8,000.00), payable twenty -five percent (25 %) on January 1, 1977,
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twenty -five percent (25 %) on May 1, 1977, and fifty percent
(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 saitisfy 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 irregularites, Auditor
does not assume the responsibility for doing so.
6. It is contemplated that Auditor may be requested
to perform services additional to the usal audit work, such as
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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:
Staff Assistants
Senior Accountants
Supervisory Accountants
Managers
Partners
$18.00 - $22.00 per hour
$23.00 - $28.00 per hour
$30.00 - $33.00 per hour
$40.00 per hour
$60.00 per hour
IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first above written.
CITY OF NEWPORT BEACH
A Municipal Corporation
By
Mayor
ATTEST:
ity Cle k
HURDMAN AND CRANSTOUN,
Certified Public Accountants
APPROVED AS TO FORM: By,
City Attorney
DDO /bc
11/21/77
NOV 28 1477
NY ft QTY COUNQf,
CITY OF, Ni"M M4V, -h RESOLUTION NO. 9 22 5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE EXECUTION
OF AN AUDITING SERVICES AGREEMENT BETWEEN THE
CITY OF NEWPORT BEACH AND HURDMAN AND CRANSTOUN,
CERTIFIED PUBLIC ACCOUNTANTS, FOR FISCAL YEAR
1977 -78
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 Hurdman and Cranstoun, Certified
Public Accountants, for auditing services for the Fiscal Year
1977 -78; 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 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 28th day of November
Mayor
ATTEST:
City Clerk
1977.
DDO /bc
11/21/77