HomeMy WebLinkAbout1991-06-25 - AGENDA REPORTS - KPMG CITYS AUDITORS (2)AGENDA REPORT
City Manager Approval
Item to be presented by:
CONSENT CALENDAR Andrea Daroca
DATE: .June 25 1991
SUBJECT: Approval of KPMG Peat Marwick as City's auditors
DEPARTMENT: Finance Y/
BACKGROUND
The City of Santa Clarita must- have an outside audit of its books performed
annually. The City has retained the public accounting firm of KPMG Peat.Marwick
to perform these services since 1988. Attached is an amendment to the current
agreement which would allow Peat Marwick to perform audit services in the amount
of $29,600 and allow them to prepare the City's first single audit which is done
on cities receiving over a certain dollar amount in grant monies.
Staff's recommendation is that the City Council approve the amendment to the
agreement to allow KPMG Peat Marwick to perform the 1990-91 fiscal year audit..,
Funds are budgeted in Account No. 01-4600-230.
gh/517
APPROVED
Agenda Item:A?l
KPMG Peat Marwick
Certified Public Accountants
725- South Figueroa Street Telephone 213 972 4000 Telecopler 213 622 1217
Los Angeles, CA 90017 Telex 6831572 PMMLA
Cable Address VERITATEM
April 4, 1991
Ms. Andrea Daroca
Director of Finance and
General Services/Treasurer
City of Santa Clarita
23920 Valencia Boulevard, #300
Santa Clarita, California 91355
Dear Ms. Daroca:
The purpose of this letter is to amend our current agreement with the City of Santa Clarita
to again serve as the City's auditors for 1990/91 fiscal year.
Expectations
Based upon our discussions with the City, we expect to stay within the boundaries of our
original proposal.
We understand that the City desires once again to submit its CAFR to the GFOA and
CSMFO for consideration of awards for excellence in financial reporting. As the City is
aware; we strongly support both the GFOA and CSMFO award programs and we urge our
clients to submit their annual financial reports for such prestigious peer recognition. In this
regard the City can be assured that before its final printing we will review the CAFR using
the respective GFOA and CSMFO review checklists to ensure that Santa Clarita's CAFR is
formatted correctly and has the appropriate disclosure for the organizations' review
committees.
In summary, we are willing in any way capable to assist the City of Santa Clarim to receive
recognition from its peers for excellence in financial reporting. We will strive for deadlines,
to achieve the City's goals and at no additional cost to the City.
Audit Fees
The estimated engagement hours to be expended by us and related audit fees are as follows:
Memter Firm of
KNmaa Pear Marra Gaerdely
Senior
Staff
Partrn
Manaeer
Accountant
Accountant
Total
Standard Rate per Hour
$ 250
100-200
70-80
45-65
N(A
Discounted Hourly
Rate for City
$ 150
100
45
40
N/A
Estimated Hours
20 hrs
60
200
240
520
Total Audit
Professional Fees
$3,000
6,000
9,000
9,600
27.600
Out -of -Pocket Expense
2,000
$29,600
Memter Firm of
KNmaa Pear Marra Gaerdely
MW Not Marwick
M.....0 rea Hamra
Clry of Santa Clarity
April 4, 1991
Page 2
The City has began to draw down its grant monies. Should the City be required to have a
Single Audit performed, we are prepared to provide this addIdunsl service for a fee,
including out-of•pocketexpense, of$3.000.
As in the past, it is understood that other audit work net contemplated within the scope of
this letter would be performed at the above discounted hourly rates, subject of course, to a
maximum fee that shall be lttu[ually agreed upon, in writing. before any work Is eom•
mcnccd.
We hope thatyou find our proposal to amend our current contract satisfactory. We look
forward to a continued positive and lasting relationship. if we can be of further assistance
or answer any questions that you may have, please feel free to contact me.
To indicate your acceptance, we have enclosed a copy of this letter for your signature and
return to me.
Very truly yours,
KPMG Peat Marwick
ick
'h"�)
Thomas W. Snow. Farmer
TWS:Ih
Accepted:
CITY Of SANTA ClAR1TA
By
Dam
ATTEST:
City Clerk
0 . Approved..As To Form:
City Attorney
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KPMG Peat Marwick
Certified Public Accountants
725 South Figueroa Street
Los Angeles, CA 90017
Ms. Andrea Daroca
Director of Finance and
General Services/Treasurer
City of Santa Clarita
23920 Valencia Boulevard, #300
Santa Clarita, California 91355
Dear Ms. Daroca:
Telephone 213 972 4000 Telecopier 213 622 1217
Telex 6831572 PMMLA
Cable Address VERITATEM
April 4, 1991
The purpose of this letter is to amend our current agreement with the City of Santa Clarita
to again serve as the City's auditors for 1990/91 fiscal year.
Expectations
Based upon our. discussions with the City, we expect to stay within the boundaries of our
original proposal.
We understand that the City desires once again to submit its CAFR to the GFOA and
CSMFO for consideration of awards for excellence in financial reporting. As the City is
aware, we strongly support both the GFOA and CSMFO award programs and we urge our
clients to submit their annual financial reports for such prestigious peer recognition. In this
regard the City can be assured that before its final printing we will review the CAFR using
the respective GFOA and CSMFO review checklists to ensure that Santa Clarita's CAFR is
formatted correctly and has the appropriate disclosure for the organizations' review
committees.
In summary, we are willing in any way capable to assist the City of Santa Clarita to receive
recognition from its peers for excellence in financial reporting. We will strive for deadlines
to achieve the City's goals and at no additional cost to the City.
Audit Fees
The estimated engagement hours to be expended by us and related audit fees are as follows:
i•—+JMem Frtna
Kfped Peat Mawirk GoerOeler
Senior
Staff
Partn
Mana er
Accountant
Accountant
Total
Standard Rate per Hour
$ 250
100-200
70-80
45-65
N/A
Discounted Hourly
Rate for City
$ 150
100
45
40
N/A
Estimated Hours
20 hrs
60
�2 0
240
520
Total Audit
Professional Fees
Ii MOD
6,000
9,000
9,600
27,600
Out -of -Pocket Expense
2,000
$29,600
i•—+JMem Frtna
Kfped Peat Mawirk GoerOeler
roI'1 -"101
AW Pact Marwick
M_.. --Am, n%nvA
Ciry of Santa Clarita
Apri14, 1991
Page 2
The City has began to draw down its grant monies. Should the City be required to have a
Single Audit performed, we are prepared to provide this addidunal service for a fee,
including out-of•pocket expense, of $3,000.
As In dtc past, it is understood that other audit work not contemplated within the scope of
this to a
maximum feel hat hall) be�tuut ally agreed at the above upon, in writing, before any work is ct of com-
mcnccd.
We hope that you find our proposal to amend our current contact satisfactory. We look
forward to a continued positive and lasting relationship. If we can be of further assistance
or answer any questions that you may have, please feel free to contact rue.
To indicate your acceptance, we have enclosed a copy of this letter for your signature and
return to me.
very truly yours,
ICPMO Peat Marwick
ck
� �J
Thomas W. Snow. Partner
TWS:Ih
Accepted:
CM OF SANTA Ci AR1TA
By
Dam
ATTEST:
City Clerk
Approved As To Form:
City Attorney
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