HomeMy WebLinkAboutC-2085 - Auditing services for City fiscal years 1978-79 & 79-800 0
CITY OF NEWPORT BEACH
CALIFORNIA
City Han
3300 W. Newport Blvd.
Area Code 114
DATE April 17, 1979
TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. l
Description of Contract Auditing Services /fy 1978 -79 and 1979 -80
Authorized by Resolution No. 9538 , adopted on April 9, 1979
Effective date of Contract April 13, 1979
Contract with Hurdman & Cranstoun, CPA's
Address 610 Newport Center Dr.
Newport Beach, Ca 92660
Amount of Contract -S` ,-t17T : %,
City clerk IQ
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AGREEMENT FOR INDEPENDENT AUDIT
This Agreement is made and entered into this
day of 1979, 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 promises 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 1978 -79, beginning July 1, 1978, and ending June 30,
1979, and for the Fiscal Year 1979 -80, beginning July 1, 1979, and
ending June 30, 1980, in accordance with Section 1117 of the City
Charter, in order to express an opinion upon the financial state-
ments 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 on the financial statements
of the City. If circumstances are encountered which, in the
judgment of Auditor, prevent the expression of an unqualified
opinion on 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
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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 Years 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 circum-
stances 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 County 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.
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3. Compensation shall be paid to Auditor for the
audit engagement for the Fiscal Year 1978 -79 in the amount of
Eight Thousand Five Hundred Dollars ($8,500.00), payable
twenty -five percent (25 %) on January 1, 1979, twenty -five
percent (25 %) on May 1, 1979, and fifty percent (50%) upon
delivery of Auditor's report following the close of the Fiscal
Year 1978 -79.
4. Compensation shall be paid to Auditor for the
audit engagement for the Fiscal Year 1979 -80 in the amount of
Nine Thousand Dollars ($9,000.00), payable twenty -five percent
(25%) on January 1, 1980, twenty -five percent (25g) on May 1,
1980, and fifty percent (50 %) upon delivery of Auditor's report
following the close of the Fiscal Year 1979 -80.
5. The audit and examination specified herein and
the fees 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 here-
under, 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 the (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 7 hereof.
6. The audit and examination specified in Paragraph 1
hereof are 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 of character of the examination,
reliance must be placed on the adequacy of the systems of inter-
nal check and control as the principal safeguard against defal-
cation 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.
7. 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:
Staff Assistants
Senior Accountants
Supervisory Accountants
Managers
Partners
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$20.00 - $25.00 per hour
$30.00 - $36.00 per hour
$38.00 - $40.00 per hour
$50.00 per hour
$70.00 per hour
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IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the day and year first above written.
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
CITY OF NEWPORT BEACH,
A Municipal Corporation
By
Mayo �—
HURDMAN AND CRANSTOUN,
Certified Public Accountants
By
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RESOLUTION NO. 9538
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT BETWEEN
THE CITY OF NEWPORT BEACH AND HURDMAN AND
CRANSTOUN, CERTIFIED PUBLIC ACCOUNTANTS, IN
CONNECTION WITH AUDITING SERVICES FOR THE
FISCAL YEARS 1978 -79 AND 1979 -80
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, in connection with auditing services for
the Fiscal Years 1978 -79 and 1979 -80; and
WHEREAS, the City Council has reviewed the terms and
conditions of said agreement and found them to be fair and
equitable,
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport Beach that said 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 9th day of April , 1979.
Mayor
ATTEST:
City Clerk
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