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HomeMy WebLinkAboutCC RESO 15,983RESOLUTION NO. 15,983 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT FOR AUDIT SERVICES BETWEEN THE CITY OF NATIONAL CITY AND CALDERON, JAHAM & OSBORN BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute, on behalf of the City, an agreement for audit services between Calderon, Jaham & Osborn and the City of National City, a copy of which is attached hereto as Exhibit "A" PASSED and ADOPTED this 13th day of June, 1989. George FN Waters, Mayor ATTEST: Lor' Anne Peoples, ity Clerk APPROVED AS TO FORM: George If. Eiser, III City Attorney AGREEMENT THIS AGREEMENT is made and entered into this day of , 1989, by and between CITY OF NATIONAL CITY, a municipal corporation, hereinafter referred to as "CITY," AND CALDERON, JAHAM & OSBORN, a professional corporation, hereinafter referred to as "AUDITOR," WITNESSETH: WHEREAS, it is the intention and desire of CITY to avail of auditing services; WHEREAS, such auditing services are of a type and complexity requiring the services of a professional and technical character; and WHEREAS, AUDITOR is a licensed Certified Public Accountant and is competent in performing auditing services; NOW, THEREFORE, the parties hereto agree as follows: 1. CITY does hereby engage AUDITOR to perform an audit of CITY'S financial statements for each of the three fiscal years ending June 30, 1989 through June 30, 1991. 2. AUDITOR hereby accepts said engagement and agrees to provide all auditing services required by CITY, as set forth in the Request for Proposal (RFP) to Provide Audit Services, and as set forth in AUDITOR'S response to said RFP, which RFP and response are incorporated herein by reference and are an integral part of this Agreement. Unless otherwise stated in this Agreement, AUDITOR agrees to all terms and conditions set forth in the RFP and in AUDITOR'S response to the RFP. a. AUDITOR will prepare CITY'S comprehensive annual financial report and provide CITY with 25 copies thereof no later than October 31 following the end of each fiscal year. b. AUDITOR will prepare CITY'S single audit report and provide CITY with 25 copies thereof (in addition to any number of copies required for submission to regulatory agencies) no later than October 31 following the end of each fiscal year. EXHM' A_ c. AUDITOR will prepare compliance and financial audit reports for the Community Development Commission (CDC) and related agencies. A separate report document is required for the CDC combined, the Morgan Towers Enterprise Fund and for the Parking Authority. 3. AUDITOR'S examination of CITY'S financial statements shall be in accordance with generally accepted auditing standards as defined by the American Institute of Certified Public Accountants and the Governmental Accounting Standards Board. Unless unusual conditions not now foreseen make it impracticable to do so, AUDITOR will submit a report on their examination of the financial statements which will express an opinion as to the fairness of their presentation in conformity with generally accepted accounting principles. If conditions are discovered which lead AUDITOR to believe that material errors, defalcations, or other irregularities may exist or if any other circumstances are encountered that require extended services, AUDITOR shall promptly advise CITY. No extended services will be performed unless authorized in writing by CITY. 4. AUDITOR will conduct compliance audits in accordance with the standards of the applicable federal agency or other appropriate authority. 5. AUDITOR agrees to keep their working papers and other data developed during the conduct of their examination on file in legible form for a period of at least four (4) years and make them available to CITY'S authorized representatives upon request. 6. A11 services to be performed by AUDITOR shall be directed by professional accountants certified by the California State Board of Accountancy, and all personnel engaged in the work shall be experienced and competent in their respective fields. 7. CITY shall pay AUDITOR as complete consideration for the work performed pursuant to this Agreement a fee not to exceed the fees contained in the attached Exhibit 1 which is made an integral part of this Agreement. Unless there is a change in the scope of services required as set forth in the RFP, AUDITOR shall not be permitted to request a fee adjustment during the duration of this Agreement. 8. Payment for services rendered hereunder shall be made upon invoices submitted by AUDITOR as the work progresses. It is understood that said invoices shall not be submitted to CITY more often than once a month. 9. Neither CITY nor AUDITOR shall assign or transfer each one's interest in this Agreement without the written consent of the other. 2 10. CITY reserves the right to terminate this Agreement at the conclusion of each year of service within the contract period by reason of AUDITOR'S unsatisfactory performance under this Agreement as determined by CITY. 11. AUDITOR shall not discriminate against its employees or applicants for employment because of age, race, religion, color, sex or national origin. 12. In the performance of this Agreement, AUDITOR shall abide by and conform to any and all applicable laws of the United States, State of California, and ordinances, regulations and policies of the City of National City. 13. The performance of AUDITOR'S services hereunder shall be in the capacity of an independent contractor and not as an officer, agent or employee of the CITY. 14. Contract documents shall consist of this Agreement, CITY'S Request for Proposal to Provide Audit Services and proposal for Independent Audit of the City of National City submitted by Calderon, Jaham & Osborn on April 26, 1989. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed, this Agreement on the date and year first above written. APPROVED AS TO FORM: at - George H.'Eiser, III, City Attorney CITY OF NATIONAL CITY, a municipal corporation By: !_14AZ.i George H. Waters, Mayor "CITY" CALDERON, JAHAM & OSBORN a professional corporation By: By: "AUDITOR" 3 MAXIMUM COST It is the policy of our firm to estimate professional -fees at an amount which is highly competitive, but which will enable us to provide responsive services of high -quality in future years without fee increases other than to reflect the results of inflation, if any, or unusual growth in the operations of the City of National City which would be of significance. Our ability to perform examinations efficiently has enabled us to be successful with this policy. We base our fees on time expected to be spent by personnel assigned to an engagement and hourly rates which relate to the experience of the assigned personnel. Based on our understanding of the City of National City, we estimate our audit fee for the fiscal years ending June 30, will be as follows for each of the following entities: 1989 1990 1991 City of National City $ 11,000 $ 11,550 $ 12,100 Community Development Commission 8,750 9,200 9,600 Morgan Towers Enterprise Fund 2,100 2,200 2,300 Parking Authority 1.700 1.800 1.900 Total $ 23,550 $ 24,750 $ 25,900 Our estimates are based in part on contemplated assistance from your internal accounting personnel in such matters as preparation of analysis, location and refiling of supporting data, preparation of various audit -related letters and confirmations, and the assumption that the records have been properly maintained during the year. We will bill you at the end 19 EXHIBIT 1 of the month as the work progresses. Bills for services will be due when rendered. In addition, we will be available for ongoing consultations throughout the year on accounting related requirements imposed by the various governmental agencies. We will bill separately for this work at our usual hourly rates. Should additional services be required beyond those outlined in this proposal, we have included our hourly rates which are scheduled below: Hourly Rate Consulting Partner $160 Engagement Partner 100 Manager 60 Supervisors/Seniors 45 Staff Accountants 40 20