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Home My WebLink About1991-03-26; City Council; 11082; RENEWAL CONTRACT WITH KPMG PEAT MARWICK 1990-91 AUDIT SERVICES> 9 :A :> 3 3f. l2a BE 4 .. z 9 I- 2 1 0 z 3 0 0 L -' ( AB# ./< @rh TITLE: DEPT. MTG. 3/26/91 RENEWAL OF CONTRACT WITH KPMG PEAT MARWICK CITY A GIBWF GAHLSUAU - AGEN-BILL J. DEPT. F1N FOR 1990-91 AUDIT SERVICES CITY I\r RECOMMENDED ACTION: Adopt Resolution No. p/-f$f renewing the contract with KPMG Peat Marwick for auditing services of the City's 1990-91 financial statements and authorizing the City Manager to approve the terms of engagement. ITEM EXPLANATION: In 1988, the certified public accounting firm of Peat Marwick Main and Company was selected to perform the City's audit services for fiscal years 1987-88 through 1989-90. For the past three years, KPMG Peat Marwick examined financial records for all city funds, prepared audit reports for the City of Carlsbad, the Redevelopment Agency, Public Improvement Corporation, Building and Parking Authority and Federal Single Audit, and reviewed the City's internal controls and compliance with budgetary and legal requirements. As part of their annual auditing fees, KPMG Peat Marwick also serves the Finance Department as a financial advisor throughout the year. Staff is recommending that the contract with KPMG Peat Marwick for audit services be extended for a fourth year, fiscal year 1990-91. KPMG staff have exhibited excellent auditing skills, strong local management support with expertise in areas of interest to the city, and enabled our Comprehensive Annual Financial Report to continue to receive awards for excellence. The City also utilized KPMG auditing and financial services for the Encina Joint Powers Authority audit, Carlsbad Municipal Water District audit, and certification of Redevelopment revenues for release of escrowed tax increment bond funds. For fiscal year 1991-92, staff intends to request proposals for auditing service and an examination of other accounting firms will be made. FISCAL IMPACT: KPMG will audit the City's financial statements for fiscal year 1990-91 for a fee of $32,600 which is an increase of $2,150 over 1989-90. Funds for the 1990-91 audit are included in the 1991-92 proposed Operating Budget. KPMG has also proposed to audit the Carlsbad Municipal Water District for fiscal year 1990-91 for a fee of $9,900, an increase of $500. Funds for the 1990-91 Audit are included in the CMWD budget request. EXHIBITS: Resolution No. $?/-T# renewing the contract with KPMG Peat Marwick for audit services for the City's 1990-91 financial statements and authorizing the City Manager to approve the terms of engagement. .. 4 1 2 3 4 5 6 'I 8 9 10 11 l2 13 14 15 16 17 18 I' 0 RESOLUTION NO. 91-94 * A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, RENEWING THE CONTRACT WITH KPMG PEAT MARWICK, CERTIFIED PUBLIC FINANCIAL STATEMENTS AND AUTHORIZING THE CITY - MANAGER TO APPROVE THE TERMS OF ENGAGEMENT. ACCOUNTANTS, FOR THE AUDIT OF THE CITY'S 1990-91 WHEREAS, the City annually contracts with a certified public accounting firm licensed in the State of California for the audit of the City's annual financial statements; and WHEREAS, the City contracted with KPMG Peat Marwick to perform such audit services for fiscal years 1987-88 through 1989-90; and WHEREAS, the City staff recommends renewing the KPMG Peat Marwick contract for fiscal year 1990-91; and WHEREAS, funds for these services will be included in the 1991-92 Operating Budget. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, that the contract with KPMG Peat Marwick is herebq renewed for fiscal year 1990-91, and the City Manager is authorized to approve the terms of engagement for audit services shown in Exhibit A attached hereto 1 20 21 22 23 24 25 26 27 28 / / / 1 / / / * 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 l8 v W PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the Zhday of March, 1991, by the following vote, to wit: * AYES: Council Members Lewis, Larson, Nygaard and Stanto NOES: None ABSENT: Council Member Kulchi ATTEST: ALETHA L. RAUTENKRANZ, city Clerk (SEAL) I 19 20 21 22 23 24 25 26 27 28 ~ ,I w w + L KPMG Peat Marwick Certified Public Accountants 750 B Stree!. San Drego CA 92101 Teieoi-one 6; 9 233 8000 Teiecopier 6i9 696 012 - January 30, 1991 James F. Elliott Finance Director City of Carlsbad Carlsbad, CA 92008 Dear Jim: As requested, we are writing to provide you with an estimate of fees for the audit of the finan1 statements of the City of Carlsbad as of and for the year ended June 30, 1991. This letter 1 confm our understanding of that engagement. We will conduct our audit in accordance with generally accepted auditing standards Government Auditing Standards issued by the Comptroller General of the United States with objective of issuing the reports listed below at the conclusion of OUT audit. It should be understi that the City's management has responsibility for representations contained in the finan statements and that we will require a written representation letter be furnished to us by membei the City's management near the completion of our audit. Our responsibility is to expres opinion on these financial statements based on our audit. In conducting our audit we will perform tests of the accounting records and such other proced as we consider necessary in the circumstances to form our opinion about whether the finar: statements are free of material misstatement and to report on whether management has comF with laws and regulations and has established and maintained an internal control structure. An audit in accordance with the above standards is not designed to provide absolute assurance there are no misstatements in your financial statements or any noncompliance with laws regulations resulting from errors or irregularities. The City's internal control structure shl provide assurance, although not absolute assurance, against the possibility of such errors irregularities. We understand that all records, documentation and information we request in connection witk audit will be made available to us. At the conclusion of our audit, we plan on issuing the follo reports for the year ending June 30, 199 1: 1200 Elm Ave For the City: A report on the general purpose financial statements of the City as a whole supplementary information as incorporated in the Comprehensive Annual Financial Rep A report on the component unit financial statements of the Carlsbad Redevelopment Age] A report on the component unit financial statements of the: City of Carlsbad Pi Improvement Corporation; Member Firm of Klynveld Peat Marwick Goerdeler @ w **e3 " -a KPAM'Peat Marwick Mr. James Elliott January 30,1991 Page 2 - * A report on the component unit financial statements of the Building Authority of the City Carls bad; A report on the component unit financial statements of the Parking Authority of the City Carlsbad; A report on the internal control structure based solely on our consideration of the struct made as a part of the audit of the general purpose financial statements; and A report on compliance with laws and regulations that may have a material effect on general purpose financial statements. For the City's federal assistance programs: A report on the supplementary schedule of the City's federal financial assistance programs A report on compliance with laws and regulations identifying all findings of noncomplia and questioned costs; A report on the internal control structure used in administering federal financial assiste programs; and A report on fraud, abuse, or illegal acts (or indications of such acts), if necessary. It should be understood that our audit may not reveal all errors, irregularities or illegal acts wl may have occurred during the year. However, please be advised that it is our responsibilit ensure that the City Council is informed of any significant illegal acts that we become awar during our audit. If the illegal act involves funds from other governmental entities, it is the ( Council' responsibility to inform the other governmental entities of these acts. If the City Cou is involved in the illegal act or does not report to the other governmental entities on a timely bi we will be obligated to report the illegal acts to these other governmental entities. Our fees, which will be billed to you as the work progresses, are based on hourly rates reimbursement of out-of-pocket expenses. Our fees for the engagement are estimated to 1 follows: Comprehensive Annual Financial Report $ 22,000 Schedule of Federal Financial Assistance and the Auditors' Reports Required Under the Single Audit Act of 1984 3,500 Carlsbad Redevelopment Agency 2,800 City of Carlsbad Public Improvement Corporation 2,800 Building Authority of the City of Carlsbad 750 Parking Authority of the City of Carlsbad 750 m W .> I ---- _. .- KPMG Peat Marwick Mr. James Elliott January 30, 1991 Page 3 These fees are incluske of out-of-pocket costs including report charges and mileage estimated tc $6,500 for the above reports. If the ternis of our engagement as outlined in this letter are acceptable to you, please sign and re the enclosed copy of this letter. If you have any questions regarding this letter or any other mal please do not hesitate to call me. Very truly yours, KPMG Peat Marwick A w John H. Davis Partner LH:jam ACCEPTED BY: DATE: RAYMOND R. PATCHETT City Manager <