HomeMy WebLinkAbout1992-04-07; City Council; Resolution 92-87-I-
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RESOLUTION NO. 9 2 - 8 7
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 1991-92
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 1990-91; and
WHEREAS, the City staff recommends renewing the KPMG Peat
Marwick contract for fiscal year 1991 -92; and
WHEREAS, funds for these services will be included in the 1992-93
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 1991-92, and the City Manager is authorized to approve
the terms of engagement for audit services shown in Exhibit A attached hereto.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council of the City of Carlsbad, California, held on the 7th day of April ,
1992, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Larson and Nygaard
NOES: None
ABSENT: Council Member Sta
ATTEST:
ALETHA L. RAUTENKRANZ, City Cle>k
(SEAL)
, . ... e 0
$1 Peat Marwick
Certified Public Accountants
750 B Street Telephone 619 233 8000 Telecopier 61 9 696 01 21
San Diego, CA 92101
March 12,1992
Mr. James F. Elliott Financial Management Director
City of Carlsbad 1200 Carlsbad Village Drive
Carlsbad, California 92008
Dear Jim:
As requested, we are writing to provide you with an estimate of fees for the audit of the financial statements of the City of Carlsbad as of and for the year ending June 30, 1992. This letter will confirm our understanding of that engagement.
We will conduct our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States with the objective of issuing the reports listed below at the conclusion of our audit. It
should be understood that the City's management has responsibility for representations contained in the financial statements and that we will require a written representation letter be furnished to us by members of the City's management near the completion of our audit. Our responsibility is to express an opinion on these financial statements based on our audit.
In conducting our audit we will perform tests of the accounting records and such other
procedures as we consider necessary in the circumstances to form our opinion about
whether the financial statements are free of material misstatement and to report on whether
management has complied 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 that there are no misstatements in your financial statements or any noncompliance with laws and regulations resulting from errors or irregularities. The City's internal control structure should provide assurance, although not absolute assurance, against the possibility of such errors and irregularities.
We understand that all records, documentation and information we request in connection with our audit will be made available to us. At the conclusion of our audit, we plan on issuing the following reports for the year ending June 30, 1992.
For the City:
A report on the general purpose financial statement of the City as a whole
with supplementary information as incorporated in the Comprehensive
Annual Financial Report;
A report on the component unit financial statements of the Carlsbad
Redevelopment Agency;
MWIIX.~ rlfill o~
Klynveld I'en; Marwirk Gocrdckr
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I ? - ''_' - ' ' .
KPMG Peat Marwick
Mr. James F. Elliott
City of Carlsbad March 12, 1992 Page 2
A report on the component unit financial statements of the City of Carlsbad
A report on the component unit financial statements of the Building
0 A report on the component unit financial statements of the Parking Authority
An agreed upon procedures letter relating to the Gann limit;
0 A report on the internal control structure based solely on our consideration
Public Improvement Corporation;
Authority of the City of Carlsbad;
of the City of Carlsbad;
of the structure made as a part of the audit of the general purpose financial statements; and
A report on conlpliance with laws and regulations that may have a material
A report on compliance with laws and regulations relating to the Carlsbad
effect on the general purpose financial statements.
Redevelopment Agency.
For the City's federal assistance programs:
A report on the supplementary schedule of the City's federal financial
A report on compliance with laws and regulations identifying all findings of
A report on the internal control structure used in administering federal
0 A report on fraud, abuse, or illegal acts (or indications of such acts), if
assistance programs;
noncompliance and questioned costs;
financial assistance programs; and
necessary.
It should be understood that our audit may not reveal all errors, irregularities or illegal acts
which may have occurred during the year. However, please be advised that it is our responsibility to ensure that the City Council is informed of any significant illegal acts that we become aware of during our audit. If the illegal act involves funds from other governmental entities, it is the City Council's responsibility to inform the other governmental entities of these acts. If the City of Council is involved in t he illegal act or does not report to the other governmental entities on a timely basis, we will be obligated to report the illegal acts to these other governmental entities.
-5 m
i KMPeat Marwick
.I;! .,;
e
Mr. James F. Elliott City of Carlsbad March 12,1992
Page 3
Our fees, which will be billed to you as the work progresses, are based on hourly rates plus reimbursement of out-of-pocket expenses. Our fee for the engagement are estimated to be as follows:
Comprehensive Annual Financial Report $ 31,900
Schedule of Federal Financial Assistance
and the Auditors’ Reports Required Under the Single Audit Act of 1984 3,600
Carlsbad Redevelopment Agency 2,900
City of Carlsbad Public Improvement Corporation 2,900
Building Authority of the City of Carlsbad 775
Parking Authority of the City of Carlsbad 775
Gann Limit 1,000
These fees are inclusive of out-of-pocket costs including report charges and mileage estimated to be $7,200 for the above reports.
If the terms of our engagement as outlined in his letter are acceptable to you, please sign and return the enclosed copy of this letter. If you have any questions regarding this letter or any other matter, please do not hesitate to call me.
Very truly yours,
KPMG Peat Marwick 4”
John H. Davis Partner
JHD:dcm
Enclosure
cc: Ms. Lisa Hildabrand
Accepted by:
&A&
Date