HomeMy WebLinkAbout1979-05-15; City Council; 5843; Audit proposalCITY OF CARLSBAD
AGENDA BILL NO, 5fL/3 Initial : Dept.Hd.S
C, Atty. \]m DATE : MAY 15, L979
DEPARTMENT : F I NANC E C, Mgr, -5. '
Subject:
< AUDIT PROPOSAL
Statement of the Matter
GEORGE A. PETERSON AND COMPANY HAS PRESENTED A PROPOSAL TO AUDIT
THE CITY OF CARLSBAD AND THE CITY OF CARLSBAD WATER DEPARTMENT
FOR THE FISCAL YEAR ENED JUNE 30, 1979. THIS FIPM AUDITED THE CITY
RECORDS FOR FISCAL 1977-78 AND THEIR PERFORMANCE WAS VERY SATIS-
FACTORY.
FOLLOWING IS A COMPARISON OF THE COSTS OF THE 1977-78 AUDITS AND THE
PROPOSED 1979-80' AUDIT.
CITY OF CARLSBAD
CITY OF CARLSBAD WATER DEPARTMENT
HOURS COSTS' HOURS COSTS
1977-78
1978-79 125 $3,025 105
128 3,500 108
$2,425
2,500:
EXHIBITS
MEMO TO CITY MANAGER FROM FINANCE DIRECTOR - &/3D/77
PROPOSAL FROM GEORGE A PETERSON AND COMPANY- 41541 77
RECOMMENDATION
IF COUNCIL CONCURS, BY MINUTE MOTION. APPROVE RETENTION OF
GEORGE A. PETERSON AND COMPANY.
Council Action:
5-15-79 Council approved the retention of George A. Peterson and Company
. to audit the City of Carlsbad.and the 'City of Carlsbad Water Department for the Fiscal Year ended June 30, 1979.
.-
MEMORANDUM
DATE: APRIL 30, 1979
TO: CITY MANAGER
FROM: FINANCE DIRECTOR
SUBJECT: AUDIT PROPOSAL
THE FIRM OF GEORGE A. PETERSON AND COMPANY HAS PRESENTED A
PROPOSAL TO AUDIT THE CITY OF CARLSBAD AND CITY OF CARLSBAD
WATER DEPARTMENT FOR THE FISCAL YEAR ENDED JUNE 30, 1979.
THIS FIRM PERFORMED THE AUDIT FOR THE LAST YEAR AND WERE VERY
SATISFACTORY IN THEIR PERFORMANCE.
IT IS HIGHLY DESIRABLE TO ENGAGE THE SAME AUDIT FIRM FOR SEVERAL
YEARS IN ORDER TO ELIMINATE THE TIME CONSUMING PROCESS THAT
REQUIRES A DIFFERENT AUDIT FIRM TO DEVELOP THEIR OWN WORK
PAPERS AND BECOME FAMILIAR WITH OUR SYSTEM.
THIS YEAR IT WILL BE PARTICULARLY VALUABLE TO RETAIN THE SAME
FIRM AS OUR MUNICIPAL CONSULTANT, WHO WILL BE SELLING THE
PARKING AUTHORITY BONDS, HAS REQUESTED THAT THE AUDIT BE
AVAILABLE WHEN THE BONDS ARE MARKETED. RETAINING GEORGE A.
PETERSON AND COMPANY WITH THEIR EXPERIENCE, WILL EXPEDITE THE
AUDIT PROCESS.
THELMA L. OSBURN
FINANCE DIRECTOR
TLO: LW
--
GEORGE A. PETERS0N.C. P. A
RICHARD E. EVANS, C. P. A.
THOMAS J. BRAOY, C. P. A.
GEORGE A.PETERSON & Co.
CERTIFIED PUBLIC ACCOUNTANTS
7616 IVANHOE AVENUE
LA JOLLA, CALIFORNIA 92037
TELEPHONE (714) 454-6176
April 24, 1979
Mr. Paul Bussey City Manager City of Carlsbad
1200 Elm Avenue Carlsbad, California 92008
Dear Mr. Bussey:
MEMBERS
AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
CALIFORNIA SOCIETY OF
CERTIFIED PUBLIC ACCOUNTANTS
This letter is written to give you an estimate of our fees for examination of the financial statements of the City of Carlsbad and the City of Carlsbad Water Department for the year ending June 30, 1979.
Our examination will be made in accordance with generally accepted auditing standards and will include such tests of the accounting records and such other procedures as we consider necessary to express an opinion on the financial statements. Our examination would include recommendations regarding the accounting, management, and fiscal policies of the City of Carlsbad in the form of a management letter.
Our fees are based on hours worked by George A. Peterson & Co.
personnel at standard hourly rates which in turn are based on
the experience level of the individuals assigned. We estimate
that the audit would require the following man hours and fees:
City of Carlsbad City of Carlsbad Water Department
Costs Hours costs
Partner $45 17 $ 765 10 $ 450
Rate
Per Hour Hours
Manager 25 35 875 18 450
Senior 22 51 1 , 122 40 880
As si s tant 18 41 738 40 720
- 128 $3,500 - 108 $2,500
- -
-
Mr. Paul Bussey
April 24, 1979 ...... Page 2
Every effort will be made to keep our services to the minimum
consistent with the requirements of the engagement. Should our charges be less than the estimates, you will, of course, be billed the lesser amount. Should we encounter problems which would cause our fees to exceed the amount discussed above, we will bring this to your attention immediately for
proper resolution.
Our fee estimate is based on the assumption that your per- sonnel will prepare certain schedules and analyses for us and will make available to us invoices and other documents for our examination when requested.
We assure you we have the organization and expertise to per-
form these services in a creative, constructive, economical and timely manner. We would be most happy to continue to be of service to the City of Carlsbad and the City of Carlsbad Water Department. If you have any questions concerning this proposal, please do not hesitate to contact us.
Very truly yours,
GEORGE A. PETERSON & CO.
Richard E. Evans, Partner