HomeMy WebLinkAboutAgenda Report - February 16, 1983 (23)CMWIL RETAINS
E 4W & WHINNEY M
EX 14M E FIN VJCIAL
S"rATEMEWS OF CnT
FOR YEAR ENDED
6/30/83
Following introduction of the matter by Assistant City
Manager Glenn, Council, on motion of cajncilman Pinkerton,
Murphy aecand, authorized retaining the firm of Ernst and
Wd ney at a fee not to exceed $15,000 for the exwdnation
of the 1983 financial ;statements of the CitV of Lodi.
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F� a
CMWIL RETAINS
E 4W & WHINNEY M
EX 14M E FIN VJCIAL
S"rATEMEWS OF CnT
FOR YEAR ENDED
6/30/83
Following introduction of the matter by Assistant City
Manager Glenn, Council, on motion of cajncilman Pinkerton,
Murphy aecand, authorized retaining the firm of Ernst and
Wd ney at a fee not to exceed $15,000 for the exwdnation
of the 1983 financial ;statements of the CitV of Lodi.
January 13, 1983
City Council
City of Lodi
221 West Pine Street
Lodi, California 95240
Attention Mr. Jerry L. Glenn
Dear Mr. Glenn:
0
RECEIVED
; 93 JAII 14 Aad 10'. � S
553 apitol Mall. Suite 650
SacraIM J*liR{t 1614
CITY CLERK
916/447-el7l' OF LOC;
The purpose of this letter is to summarize the scope of our services and fee
estimate regarding our engagement to examine the financial statements of the
City of Lodi for the year ended June 30, 1983.
As in the past, we will perform the examination and issue our report thereon
in accordance with generally accepted auditing standards approved by the
American Institute of Certified Public Accountants. These standards
contemplate, Among other things, that we will make a study and evaluation of
your system of internal control as a basis for reliance on the accounting
records and for determining the extent of our audit tests; and that we will
be able to obtain sufficient competent evidential matter, with respect to
the accounts, to afford a reasonable basis for our opinion regarding the
financial statements. However, it should be understood that our report
will, necessarily, be governed by the findings developed in the course of
our examination, and that we could be required, depending upon the
circumstances, to modify our reporting from the typical unqualified opinion.
We will advise you, as our examination progresses, if any developments
indicate that we will be unable to express an unqualified opinion.
Since our examination will be performed generally on a test basis, including
sampling techniques, it will not necessarily disclose irregularities, if
any, that may exist. However, any irregularities which our examination does
disclose will be reported to you promptly.
At the completion of the engagement, we will provide a letter to management
containing recommendations for any significant changes which we believe
would improve the accounting or management procedures, or strengthen
internal controls.
Our fees will be based upon our customary rates for the various personnel
involved, plus out-of-pocket expenses.
JAN 1 1983
City Council
City of Lodi
-2- January 13, 1983
We expect to use your staff as much as possible to prepare analysis
schedules, provide supporting documentation, and otherwise assist in
minimizing our audit time and resultant fees. In that connection, our fee
estimate this year is based upon the continued usage of accounting
department personnel to the extent of approximately 60-70 hours during 1983
and their preparation of analyses and corrections to fund balance accounts,
in addition to drafts of the financial statements.
We estimate that our fees for the examination of the 1983 financial
statements will not exceed $15,000, the same cost to the City as for the
1982 financial statements. Should any significant or unusual circumstances
be encountered, we will advise you prior to altering our audit scope.
We look forward to the opportunity to again serve the City of Lodi.
very truly yours,
ames E. Olson
Partner
JEO:cll
CITY COUNCIL
FRED M. REID. Mayor
ROBE R E G MURPHY,
Mayor Pro Tempore
IVELYN M OLSON
►AA1ES W PINK[RION. it
JOHN R (Rarvdv) S.NlDfR
Mr. James E. Olson
Partner
Ernst and WhLiney
555 Capital Mall
Sacramento, CA 95814
Dear ML-. Olson:
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
POST OFFICE BOX 320
LODI. CAt IFORNIA 94241
(209)334.5634
February 18, 1983
HENRY A GLAVES'If
City Manager
ALICE `t REIMCHE
City Clerk
RONALD M STEIN
City Attorne,
Please be advised that the Lodi City Council, by motion action taken
at its regular meeting of February 16, 1983, authorized retaining the
firm of Ernst and Whinney to examine the financial statements of the
City of Lodi for the year ended June 30, 1983 at a fee not to exceed
$15,000.
i'
This letter confirms our telephone conversation if this date.
very truly yes.
Alice M. Reimche
City Clerk
AMR: j j
cc-. Robert Holm
Finance