HomeMy WebLinkAbout1980-04-15; City Council; 6222; Fiscal year 1979-80 audit proposalCITY OF CARLSBAD
AGENDA BILL NO. - 22
DATE : - Anril 15, 1981)
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--\ ---.l
Dept .Hd.
C. Atty. , 1
DEPARTMENT : F i n 2 n r.c!
Subject :
Audit Proposal - Fiscal Year 1979-80 --
Statement of the Matter
The proposal of George A. Peterson and Co is being presented for Council
consideration in connection with the audit of the City and Water Depart-
ment books for fiscal year 1979-80. This firm has been previously
engaged for the 1977-78 and 1978-79 city audits.
Exhibits
Memo to Assistant City Manager dated 4-4-80
Proposal fnom George A. Peterson and Co.
Recommendation
Approve the retention of George A. Peterson and Co. as the City
Auditor for fiscal year 1979-80.
Council Action:
4-15-80 Council approved the retention of George A. Peterson and Co. as the City Auditor for f iscalyear 1979-80.
Date: April 4, 1980
To: Assistant City Manager
From: Finance Director
Subject: Audit Proposal - 1979-80 Fiscal Year
The City of Carlsbad annually contracts with an independent CPA firm for an audit of the financial statements. This year, I am proposing that the city utilize George A. Peterson and Company, the same firm that performed the 1977-78 and 1978-79 audits .
The primary reason for my proposal is to take advantage of Peterson's familiarity with the city system and proceedures which should eliminate a considerable amount of orientation and training that is necessary with a new audit firm. It is customary for cities to change audit firms occasionally to take advantage of new approaches to an audit treatment of the city books. However, these changes should be held to a minimum unless a significant problem exists with the present audit firm. Usually every four or five years is sufficient.
Peterson's proposal is for both the City and Water audits totalling $7,500 or 25% more than last year. This increase is due primarily to an 18% rate change and a 6% "time required"
adjustment. Conversations with other audit firms confirmed that an estimate of $8,000 is reasonable for the type of audit being required.
Upon counkil acceptance of the audit prpposal, Peterson's staff
will begin field work.
GEORGE A. PETERSON,C. P.A.
RICHARD E. EVANS, C. P. A.
THOMAS J. BRADY,A. P.C., C. P.A.
GENE R.KONRAD,C. P.A.
GEORGE A.PETERSON & Co.
CERTlFl ED PUBLIC ACCOUNTANTS
7816 IVANHOE AVENUE
LA JOLLA, CALIFORNIA 92037
TELEPHONE (714) 454-6176
MEMBERS
AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
CALIFORNIA SOCIETY OF
CERTIFIED PUBLIC ACCOUNTANTS March 28, 1980
Mr. Jim Elliott
Finance Director City of Carlsbad
1200 Elm Avenue Carlsbad, California 92008
Dear Mr. Elliott:
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, 1980.
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:
Partner
Manager
Senior
Assistant
Rate
Per Hour
$50
35
25
20
Citv of Carlsbad City of Carlsbad Water DeDartment
Hours costs
16 $ 800
40 1,400
60 1,500
40 800 -
156 $4,500 - -
Hours costs
10 $ 500
20 700
40 1,000
40 800 -
$3,000 - -- - 110
I
Mr. Jim Elliott
March 28, 1980 ....... 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,
GEO3GE A PETERSON & CO.
aichard E. Evans, Partner