HomeMy WebLinkAbout1991-03-26; City Council; Resolution 91-94b
1
2
3
4
5
0 1
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
FINANCLAL 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
6
7
a
9
10
11
I.2
13
14
15
16
17
18
l9
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 hereby
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 2ol
21
22
23
24
25
26
27
28
1
/
/
1
/
/
/
I.
1
2
3
4
5
6
7
8
9
lo
1.1
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
a 1
PASSED, APPROVED AND ADOPTED at a regular meeting of thc
City Council of the City of Carlsbad, California, held on the 26thday of Marc1
1991, by the following vote, to wit:
AYES:
NOES: 'One
Council Members Lewis, Larson, Nygaard and Stanra
ABSENT: Council Member Kulch
ATTEST:
LbctL. ?! Q-
ALETHA L. RAUTENKRANZ, City clerk
(SEAL)
w _I
b KPMG Peat Marwick
Certified Public Accountants
750 B Street
San Diego. CA 92101
Telephone 61 9 233 8000 Telecopier 619 696 01
January 30, 199 1
James F. Elliott Finance Director City of Carlsbad 1200 Elm Ave Carlsbad, CA 92008
Dear Jim:
As requested, we are writing to provide you with an estimate of fees for the audit of the finan
statements of the City of Carlsbad as of and for the year ended June 30, 1991. This letter
confii 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 our audit. It should be undersi
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 expresi 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 sh(
irregularities.
We understand that all records, documentation and information we request in connection with
audit will be made available to us. At the conclusion of our audit, we plan on issuing the folloy reports for the year ending June 30, 199 1:
provide assurance, although not absolute assurance, against the possibility of such errors
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 Rep0
A report on the component unit financial statements of the Carlsbad Redevelopment Ager
A report on the component unit financial statements of the City of Carisbad PL Improvement Corpora tion;
Member Firm of Klynveld Peat Marwick Goerdeler
(I) 1
", If 'T 7-3 t KPMG'Peat Marwick
Mr. James Elliott January 30, 1991
Page 2
A report on the component unit financial statements of the Building Authority of the Cit! Carlsbad;
A report on the component unit financial statements of the Parking Authority of the Citj
Carlsbad;
A report on the internal control structure based solely on our consideration of the struci
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 assista 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 wf 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 awarc 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 ba
Our fees, which will be billed to you as the work progresses, are based on hourly rates I reimbursement of out-of-pocket expenses. Our fees for the engagement are estimated to b follows:
we will be obligated to report the illegal acts to these other governmental entities.
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 Ciiy of Carlsbad 750
Parking Authority of the City of Carlsbad 750
0 j
F-'- 7- --
9 KPMG Peat Marwick
Mr. James Elliott January 30, 1991
Page 3
These fees are inclusive of out-of-pocket costs including report charges and mileage estimated t $6,500 for the above reports.
If the terms 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 ma
please do not hesitate to call me.
Very truly yours,
KPMG Peat Marwick e John H. Davis
Partner
LH:jam
ACCEPTED BY DATE:
RAYMOND R. PATCHETT
City Manager
r