HomeMy WebLinkAbout1982-07-06; City Council; 7083; SANDAG Auditori" - f,, ' CIT. 3F CARLSBAD - AGENDA BILL
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MTG. 7/6/82
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TITLE: SANDAG AUDITOR
IClTY MGR. %
RECOMMENDED ACTION:
Adopt Resolution No. 6 9.J approving amendment to SANDAG Joint Powers Agreement, which authorizes SANDAG to appoint one
of its officers or employees as Treasurer.
ITEM EXPLANATION:
SANDAG now pays the City of San Diego to serve as Controller
and Treasurer. A recent change in state law would allow an
employee or officer of SANDAG to serve as Treasurer. SANDAG's
independent auditor, Arthur Young & Company, recommends this
change, as does Mr. William Sage, the Auditor Controller of
the City of San Diego.
FISCAL IMPACT:
If approved, this change would save SANDAG around $30,000
yearly.
EXHIBIT :
Resolution No. 493f with Fifth Amendment to the Joint
Powers Agreement attached.
SANDAG Report Ad-24 dated June 21, 1982.
7. ..
,I 1 4 San Diego Association of Governm t
DATE: June 21, 1982
Background
When SANM was formed in 1972, the Government Code required one of the member agencies of a joint prs agency to be designated auditor/oonptroller and treasurer. Accordingly, the City of San Diego Auditor and Canptroller and the
City Treasurer were named to those ex-officio positions in the SNlXG JPA.
In 1980, Section 6505.6 was added to the mvermnt Code to allaw joint pawers
agencies to designate one of their awn officers or employees to serve as auditor/comptroller and treasurer.
Both Mr. William Sage, City of San Diego Auditor and Comptroller, and our Certified Public Accountants, Arthur Young & Co., have reanmended that SANWiG
establish its own, more simplified, accounting system apart from the City's
system. so that the Baard of Directors can name its own Auditor/Canptroller and Treasurer.
Mr. Sage further recamnends that the joint powers agreement be amended
Discussion
Arthur Young & Co. have been providing our annual fiscal and grant compliance audit for the last four years. Upon completion of the last audit for FYI81
their primary recomnendation to management was that SANIlAG should establish a more simplified system because the number, variety, and complexity of our
grants were steadily diminishing to a point where the sophisticated system specifically designed by the City for multi-funded project accounting was no longer cost effective for SANDS use.
Mr. Sage concurs in that observation and further believes that both the City of San Diego and SA" can experience actual cost savings through this change.
For example, SANIXG currently pays the City $24,000 per year for fiscal services.
And our annual independent audit generally runs $18,000-20,000.
separate accounting system either through a bank or service bureau should
be approximately $6,000-8,000 per year. And, because the system would be less complex to audit, the annual independent audit could potentially be reduced
to perhaps $15,000 or less. There would also be associated savings through the elimination of duplicate sets of reports, accounting records, and the cost
of the computer terminals and printer currently connected to the City's system
of perhaps an additional $5,000 per year. savings in the neighborhood of $30,000 per year.
The cost of a
Therefore, SAND4G could realize
The City Auditor's office currently provides portions of the time of a senior accountant, of a payroll/acccunts payable clerk, and of a division supervisor
to monitor, review, and process SANDAG accounting transactions and related fiscal
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services. The approximate values of these services including benefits and
overhead is $24,000 per year which SANDAG reimburses. The accounting system
S?Q.IUG uses at the City is especially designed for multi-funded project account- ing. As such, it is a relatively cowlex system and the resulting volume of transactions it generates into the general ledgers and various subsidiary
ledgers is significant. additional data processing axt savings for the City. And, the City Auditor projects that a full senior accountant position may be able to be eliminated
from his departmental budget.
Eliminating SA" from the system should generate
In total, therefore, between WING and the City of San Diego, savings in the area of $30,000-50,000 could be realized. Although some savings should be
generated in FY'83, the full savings would not be anticipated until FYI84 because it will take several months to totally transfer all of our accounts from
the City's system.
Based upon the recommendations of both Mr. Sage, Ex-Officio Auditor/Canptroller and Arthur Young & Co., Certified Public Accountants, and because of the sig- nificant cost savings for both SA"G and the City of San Diego, it is my
that the Board of Directors of the San Diego Association of Gwermmts authorize distribution to the Member Agencies of an aruendnrtnt to Sections 4 and 6 of the Joint Pmers Agreemnt as set forth in the attached EXhibit A for their approval.
And, contingent upon the atm-dmnt's approval, that the folluwing additional actions be authorized:
o That the SANDAL; Director of Finance and Administration be designated SANDAG Auditor/Cmptmller and Treasurer;
o That the Bank of &-erica be designated as the official depository of SANIIPI; funds;
o That the Executive Director be authorized to establish an appropriate account-
ing systemwith the guidance and review of the City of San Diego Auditor and
Caq?troller and Arthur Young & Co. Certified public Accountants.
Executive Dkctor
Attachmmt : Exhibit A.
2
NO. 82-72
Suin 624, Socurlty Pmclfk PImu
1200 Third Avonur S.n Diogo, Cdifornh 92101
7 14/238-6300
-8 SANDX Certified Public Accountants, Arthur Young & Co., recarrmend establishing a new acomnting systsn; and
-8 SANWG's Ex-ficio Auditor and conptroller (the Auditor and Controller of the City of San Diego) recarmends SANDAG designate one of its officers or employees tm be Auditor/carptroller and Treasurer; and
WHEREAS, said redesignation requires an amndnmt to the SNUG Joht
POwersAgr-t; owTHEREFo#E
BE IT REsoavED by the Board of Directors of the San Dhgo Association of covennwts that the praposed aIEndmnt to sectsms * 4 and 6 of the Joint Pmers Agreement attached hereto as EXhibit A be distributed to the
Agencies for their apprwal; and
BE IT FUKlXER REsoavED that contingent upon said anwchrrent's approval the SAND?G Director of Finance and Administration shall be designated SANDAG
Auditor/ccrtptroller and Treasurer; and
BE IT FVIU%ER RESOLVED that the Bank of Amrica is hereby designated
as the official depository of SIINDAG funds; and
RE IT FUUHEEX RESQLVED that the Executive DirectOr is hereby authorized to establish an apprqriae accounting system with the guidance and review of the City of San Diego Auditor and carptroller and Arthur Young & Co., mified
public Accxuntants.
PASSED AND mm this 21stday of Jurre, 1982.
MEMBER AGENCIES: Cities of Carlsbd, Chula Vista, Coronedo, Del Mar, El CJon, Imperial Beach, La Mesa, Lemon Grove, National City, Oceanside, ''
EXHIBIT A
4. FcnerS of SANDAL;
As my be necessary for the accarplishnent of the purpse of this agreement,
sANI% shall have the power, in its own nam, to make and enter into contracts; to enplay agents and qloyees under an adopted prmel sysbrn to provide for errployee retirmt, health and welfare benefits; to acquire, hold and dispose of
praperty, real and personal, to sue and be sued in its own na~[lt3; to hire legal counsel and to incur debts, liabilities or obligations. liabilities and obligations of SANaAG shall not constitute any debt, liability or obligation of any of the &xiher Agencies who are parties to this agreemat.
The organization shall not be able to require additional permits.
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mver, the debts,
e€+?WBS-and SANDAG, by resoZution of the Board of Directors, shall designate an
Auditor/ComptroZZer and Treasurer from among its officers or empZoyees in accordance with Sectwn 6505.6 of the Government Code. The Auditor/Comptroller shall draw warrants or check-warraiits against the funds of SANDAG in the Treasury when the
demands are approved by the Board of Directors, or such other persons as may be specifically designated for the purpose of the bylaws. and Treasurer shall c-ly with all duties inposed under Article 1, Chapter 5,
Division 7, Title I, of the California Govcmruent Code commmchg With Section
6500. P"kE-ei~-eE.S~~~~~-~~3~~-~~3-~~~~m~ ~~-aes~-~~~u3~~~-A~~~~~~~ At ths end of each fiscal year thers shall+ an audit conducted by an indepndent, accredited
eified public accountant.
said Auditor/Carp?troller
6. F'unds
The Treasurer of SANDAG shall receive, have the custody of and disburse SXDAG
funds upon the warrant or ckck-warrant of the Auditor/Ccqtroller fij pursuant to the accounting pmcedurss developed under Section 5 hereof, and +iri)-as-neetr&y-us
pa~~~e-in-e~~eeardana-witk-rte~-ei~~€-~-~~~~s~ shall de the
disbursemxks required by this agreemnt or to carry out any of the provisions or
purposes of this agrement. funds in
amordance with genzral law.
accounted for and posted to the account of such funds.
'Ik Treasurer of WAG my invest
All interest collected on SANDAG funds shall be
s
RESOLUTION NO. 6938
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA APPROVING THE FIFTH
AMENDMENT TO THE JOINT POWERS AGREEMENT -
SAN DIEGO ASSOCIATION OF GOVERNMENT.
The City Council of the City of Carlsbad, California
hereby resolves as follows:
1. That the agreement entitled Fifth Amendment to the
Joint Powers Agreement San Diego Association of Governments, a
copy of which is attached hereto and incorporated by reference,
is approved.
2. That the Mayor is authorized to execute said
agreement for the City of Carlsbad.
PASSED, APPROVED AND ADOPTED at a regular meeting of
the City Council of the City of Carlsbad, held on the 6th
day of ' July , 1982, by the following vote, to wit:
AYES : Council Wers Casler, Lewis, Kulchin and hear
NOES: Hone
ABSENT: council &Irber chick
I MARY HJ CASLER, Mayor
ATTEST :
(SEAL)
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?TIIS FIFTH AMEMXCIENT to the Job-t Powers Agremt is made beheen the
Cities of Carlsbad, Chula Vista, Coronado, Del Max, El Cajon, Imperial Beach,
k IJesa, Lemn Grove, National City, Oceanside, my, San Diego, San Marcos,
Santse and Vista, hereinaftex collectively or individually referred to as
"b- Acjencies" .
RECITALS
WHEREAS, SANJIAG Certified Public kccountants, Arthur Young & Co., reconmend establishing a new accounting system; and
WHEXEAS, SANDAG's Ex Officio Auditor and Comptroller (the Auditor and Controller of the City of San Diego) recamends SNAG designate one of its
officers or qloyees .. . . to be Auditor/Cqtroller and Treasurer; and
Pmers Aqeqat; cmd
WHEZcAS, said redesignation requires an arrendment to the SWAG Joint n
WEiWG, "he Beard of Directors aidthorized distribution of this md-
ment to the bkmkr Agencies for their concurrence;
P0.37 7VBEF33RE, h consideration of these recitals, Mernlxr Agencies
acpee as fol.?Lotjs:
I. That pxaqrsph 4 of said Joint Powers Agreemnt be amended to read as
fOllC7"\lS :
As my & nscessary for the accqlishent of the purpose of this
agreeiTt, SILTDAG shall have the power, in its own nam, to make and enter
into cc^lr:rtracts; to employ agents and employees unk an adopted personnel systwi to provide for qloyee retirement, health and welfare benefits;
to acquire, hold and dispose of property, real and personal, to sue and be si~d in its om m; to hire legal counsel and to incur debts, lia-
bilities or obligations.
of SXJ?G shall ncJt constitute any debt, liability or obligation of any
of the PWhr Agencies which are parties to this agreement.
tion sh3.1 not be able to require additional pdts. SANDAG, by reso- lution of the B0,ard of Directors, shall designate an Auditor/Cqtroller
and Trc:isurer from amng its officers or employees in accordance with
Section 6505.6 of the Govemnu3nt Code. The Iluditor/Contptroller shall draw wzmxmts or check-warrants against the funds of SANDnG in the
Treasir- xhen the demands are approved by the Board of Directors, or such
However, the debts, liabilities and obligations
The organiza-
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as my be specifically designated
Auditor/Cmptrolkr and Treasurer
for that purpose in the
shall cqly with all
duties -bpsed under Article 1, Chapter 5, Division 7, Title I, of the
California Gwermrent Code comnencing with Section 6500. each fiscal year there shall be an audit conducted by an independent,
accrdited certified public accountant.
That paragraph 6 of said Joint Pavers Acjreen-ent be mded to read as
fOllmJs :
At the end of
The Treasurer of SNAG shall 'receive, have the custody
burse SXWAG funds upon the warrant or check-warrant of the
Corrptroller pursuant to the accounting procedures developsd
5 hereof, and *11 &e the disbursmts required by this
of and dis-
Auditor/ under Section
agr-t or
to carry oct any of the provisions or pqses of thi; agrement. The
Treasurer of SANDAG my invest SANDAG funds in accordance with general law. All interest collected on SWAG funds shall be accounted for and pstd to thz account of such funds.
Tht all et&& terms and conditions of said agrement entered into on
Au\>~st 23, 1972, 2s zmaded, mng .PIarikr Agencies shall remain in full
force and effect.
That this Fifth Awxdrnent will becorn effective on that date the last
Meinb.~ Agency zipgroves the amendrent:. I
E17 hi"PESS h?F&ilF, each of the following Nember Agencies has caused this Fifth ?xm&imt to the Joint Pow?.rs Agreemnt to bs &ecuted by having
affiuec? thereto +&e signatvres of the agent of said Agency authorized by
res31ut.im therefcze by Llc- legislative body of that Agency.
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Bu FOR CITY OF NATIONAL CITY Dm
BY FOR CITY OF OCEANSIDE DAm
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Fori CITY OF POWAY WE
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BY BY EOR CIFG EL WON DATE FOR CITY OF SAN MARCOS D?EE
ay DATE FOR CITY OFVISTA DATE BY FOR CITY OF LA MESA
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DATE BY FOR CI1Y OF LEPDN GfiDvE
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