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HomeMy WebLinkAboutReso 1984-11584 RESOLUTION NO. 11584 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND DELOITTE, HASKINS & SELLS FOR AUDITING SERVICES FOR FISCAL YEARS 1983-84, 1984-85 AND 1985-86 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City council of the City of Chula Vista does hereby resolve as follows: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that that certain agreement between THE CITY OF CHULA VISTA, a municipal corporation, and DELOITTE, HASKINS & SELLS for auditing services for fiscal years 1983-84, 1984-85 and 1985-86 dated the 10th day of April , 1984, a copy of which is attached hereto and incorporated herein, the same as though fully set forth herein be, and the same is hereby approved. BE IT FURTHER Chula Vista be, and he execute said agreement Vista. RESOLVED that the Mayor of the City of is hereby authorized and directed to for and on behalf of the City of Chula Presented by Approved as to form by Rene Franken, Acting Director of Finance ~!i' ,,"/ - ,I, '.l/-.-y,,,,~/k ,~-1 "! ,1,,",, __ .../' , ''1'"/0,,1_,,<,, 'vi' ,/./,' , Thomas J. Harron, City Attorney ~~ ?~~ ( ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF iULA VISTA, CALIFORNIA, this 84 10th day of Apri 1 , by the following vote, to_it: fES: Councilmen ~YES: Councilmen 3STAIN: Councilmen ~ENT: Councilmen Cox, Moore, McCand1iss, Scott, Malcolm None None None rTEST d/JVP.Vf -J;JI?i -&:J {/ City Clerk R ~( City of Chula Vista rATE OF CALIFORNIA ) )UNTY OF SAN DIEGO ) s s . TY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California, ) HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 11584 ,and that the same has not been amended or repealed. ~TED ( seal) City Clerk C-660 AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE ACCOUNTING FIRM OF DELOITTE, HASKINS & SELLS TO PROVIDE AUDITING SERVICES THIS AGREEMENT, made and entered into this 10th day of April , 1984, by and between THE CITY OF CHULA VISTA, a municipal corporation, hereinafter called "City" and DELOITTE, HASKINS & SELLS, hereinafter called "Auditor"; WIT N E SSE T H : WHEREAS, Section 1017 of the City Charter of the City of Chula Vista requires an annual independent audit of all funds, financial records, and the inventories of the City, and WHEREAS, on July 5, 1983, the City invited auditing firms to submit proposals for auditing the City's financial records for the next three-year period, and WHEREAS, City staff has recommended that the auditing firm of DELOITTE, HASKINS & SELLS be contracted with to provide auditing services to the City. NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS: A. DEFINITIONS: "City" shall mean the City of Chula Vista; "Auditor" shall mean the accounting firm of Deloitte, Haskins & Sells. B. AFFIRMATIVE ACTION: Auditor shall promote equality of opportunity and prohibit discrimination in employment practices as mandated by Federal and State laws. C. GENERAL REQUIREMENTS: 1. The audit examination should not include a detailed audit of all of the transactions recorded in the accounts of the City, unless otherwise herein specified, but will be based upon tests of accounting records and other supporting evidence for selected periods during the fiscal year under review suffi- cient to enable the Auditor to express an informed written opinion on: R-1l584 -1- f(~ /~,g-(/ a. The financial position of the various funds of the City. b. The propriety of accounting principles followed. c. Compliance with applicable laws. d. The financial accountability of officers and employees. 2. The Auditor shall review the financial records and all the various funds of the City and prepare all the financial statements in conformance with public financial reporting including generally accepted accounting principles promulgated by the National Council on Governmental Acounting for the fiscal year ending June 30. 3. The Auditor shall include in the audit report: a. An outline of the general scope and extent of the audit. b. An opinion on the financial statements of the City as to their conformity to generally accepted accounting principles and whether the statements present fairly the financial position of the city of Chula Vista at June 30. c. Any other opinions or comments the Auditor wishes to make. d. A report of any defects in the City's accounting system that make it difficult to perform an adequate independent audit. e. Recommendations for improvements in the accounting system or in internal control. 4. The standards and procedures for the audit engagement shall be performed in accordance with generally accepted auditing standards, to the extent that such procedures are applicable under the Charter, ordinances and other statutory provisions governing the City of Chula Vista. The audit shall also satisfy the provisions of Federal OMB Circular AI02, Compli- ance Supplement. 5. Copies of the final audit report will be rendered no later than October 31. One copy of the audit report shall be delivered to the Mayor and one to each Council member. In addition, 25 copies of the audit report shall be delivered to the City Manager. -2- K/~f~ D. SPECIFIC REQUIREMENTS: 1. Budget: In accordance with provisions of the Charter of the City of Chula Vista, it is the duty of the City Manager to prepare and submit to the Council the annual budget and such reports as may be required by that body. The independent auditor shall examine the final budget document as approved by the City Council and compare the estimated revenues and appropriations as shown in the budget document with the entries recorded on the revenue ledger and the appropriation ledger maintained by the Finance Director's office. 2. Funds: The auditor shall examine the City Charter, ordinances or resolutions, and minutes of the City Council pertaining to all funds of the City to determine the purpose of each fund and the proper disposition of all funds revenues, expenditures, and year-end balances. 3. Verification of Cash and Securities: a. The Auditor shall count all cash and checks in the Finance Department as of June 30. The Auditor shall subsequently be satisfied that all items counted and verified are deposited in the City's depository bank. Investment securities owned by the City and held in safekeeping by the City's various banks and savings and loan associations shall be verified as to their existence as of June 30. written confirmation shall be obtained from all City depositories of balance on hand at June 30. b. Surprise Cash Counts: The Auditor shall make, during the year, at least two surprise cash counts of the funds in the Finance Department in cooperation with staff members. c. Collateral Pledged for Funds on Deposit: The Auditor shall examine the records of pledged collateral and make such tests of depository bank pooled collateral operations as may be necessary to express an opinion as to the legal sufficiency of the collateral to safeguard the City of Chula Vista's bank deposits. -3- (1'-1/5r~ d. Accounting Records: The Auditor shall examine the City's internal accounting controls to determine that accounting procedures are adequate to safeguard assets and provide reasonable assurance of proper recording of financial transactions. 4. Assets: a. Cash and Fund Balances: The Auditor shall examine the various fund transactions and balances in each fund and prepare the appropriate financial statements for the audit report. 5. Inventory - Stores: The Auditor shall make, during the year, sufficient test counts of the central stores inventory and central garage inventory to enable them to determine the accuracy of the inventory records. The Auditor shall review the accounting procedures employed for the recording of stores received and issued, test check stock inventory transactions and test the pricing extensions and footings of the stores inventory at June 30. 6. Investments: The City's investments are in the custody of the Finance Director. The Auditor shall compare the total of investments found in the custody of the Finance Director with the sum of the funds in the general ledger maintained by the Finance Director. 7. Fixed Assets: The Auditor shall examine the procedure for recording the acquisition of and the disposal of property owned by the City. The Auditor shall compare the annual inventories of property with the controls maintained by the Finance Department. The Auditor shall review the transactions involving fixed assets to the extent necessary to assure the accountability for fixed assets is maintained. 8. Liabilities: a. Accounts Payable: The Auditor shall make a sufficient examination of accounts payable to enable them to determine that, in general, they -4- ~-II.j-j't bear evidence of verification and approval with supporting documents such as purchase orders, vendor's invoices, receiving reports, transportation bills, contracts and other documents where necessary. The Auditor shall also be satisfied that the claims were charged against the proper departmental appropriations and that funds were available at the date the purchase was made. b. Bonded Debt: The Auditor shall review the amount of bonded debt of the City and examine bonds and interest coupons paid during the year whether directly by the City or by various fiscal agents, the outstanding debt determined by the Auditor should be reconciled to the accounting records of the City by fund and amount outstanding on June 30. c. Reserves for Uncompleted Purchase Orders and Encumbrances: The Auditor shall examine documents supporting reserves for uncompleted purchase orders and encumbrances to determine that such reserves are adequate and properly recorded. d. Other Liabilities and Deferred Credits: The Auditor shall be satisfied as to the fairness of the accounts representing other liabilities and deferred credits. e. Fund Balances: The Auditor shall examine revenues and expenditures by funds and analyze the changes in fund balances for the financial statement of each fund in the audit report. f. General Revenue Sharing and Block Grants: (1) The Auditor shall make such examinations of the City's financial records sufficient to enable them to render an opinion of compliance with the State and Local Fiscal Assistance Act of 1972, as amended, which relate to General Revenue sharing and other statutes that relate to Federal Block Grant funds. It is the intent of this specification to satisfy the require- ment that the City will obtain annual independent audit services that will satisfy the audit require- ments of the General Revenue Sharing law and any applicable office of Revenue Sharing regulations. -5- /?-//5,fy (2) This intent also applies to any and all regulations of the Federal Government pertaining to the Federal Block Grant money allocated to the City by the Department of Housing and Urban Development. g. City of Chula Vista Redevelopment Agency: (1) All general and specific requirements as delineated for the Independent Audit of the City of Chula Vista will also apply as appropriate to the Independent Audit of the City of Chula Vista Redevelopment Agency. (2) The Auditor shall perform such examinations of the Agency's financial records sufficient to enable them to render an opinion of compliance with the "Guide- lines for Compliance Audits of California Redevelop- ment Agencies". (3) The Auditor shall verify compliance with all pertinent sections of the California Redevelopment Law. E. TERM: The audit engagement will include Fiscal Years 1983-84, 1984-85, and 1985-86 beginning July 1st and ending June 30 of each year. F. PROFESSIONAL FEES: 1. The fee for auditing services for the Fiscal Year July 1, 1983 through June 30, 1984 will be based on the actual time spent on the engagement according to the following rates: Level of Skills Partner Manager Senior Staff Hourly Rate $70 53 51 16 The annual fee, however, will not exceed the following: City of Chula Vista Audit Federal Revenue Sharing and Block Grant Audits City of Chula Vista Redevelopment Agency $8,000 2,500 2,000 $12,500 2. The fee for the two succeeding Fiscal Years 1984-85 and 1985-86 may be adjusted based on the annual change in the Consumer Price Index-All Urban (November to November) and -6- /?~//SPI may extend to, but not exceed, a maximum 7% in anyone year. Therefore, the maximum fee for 1984-85 would be $13,375.00 and $14,311.25 for 1985-86. All invoices for services must include the skill level used, the number of hours spent and the resulting charge. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first hereinabove set forth. THE CITY OF CHULA VISTA DELOITTE, HASKINS & SELLS ill~ :r /j~ ) !I P (~/\.- .' Mayor 0 Vista e . /)ji/ ATTESY; "n7l,X> '), ,dd<J/j/ / .' City Clerk . Approved as to form by ~ELd.-/? eJe Assistant City Attorney -7- /?~II.j-fi/