HomeMy WebLinkAboutAgenda Report - March 13, 1986C0O'NCIL COMMUNICATION
( TO; THE CITY COUNCIL .
DATE
NO.
FROM: THE -CITY MANAGER'S OFFICE
March 13, 1986
SUSPECT: Ale#- h AUDIT AGREEMENT
z
RFCQMMID ACTION: That the City Council consider the award of tale
contract for the perfommice of the annual audit.
f BACKGR01 ID INFbFMATION: For the past several years the City Council has
j retained the firm of Ernst & Whinney to perform
s
the annual audit for: the: City of Lodi. The . firm
E has advised us that it is again desirous of.performing the audit for fiscal
1985-86. The cost will be $22,000 which represents an increase of $1,700
over last year. The increase, according to Ernst & Mdnney, is, solely,
attributable to the effects of recent federal legislation which requires
that the scope: of the audit be expanded t6 include detail testing of such .
federal grants as Commmity, Develogrent Block Grants. Tile firzu w.11 begin
its work here sometime in May.
-
4
About eighteen months ago,. in response`_to a question from the City;Manager,.
the City Council expressed its satisfaction with the audits prepared by "
&_
Ernst &Whinney and directed'the staff to continue to utilize this firm. =-
The staff has no problem with continuing to work with `Ern st &`Whinney, nor
would the staff have a problem with switching to a different auditing
firm:' - Because `of -time `constraints, going to bid for auditing services is
not possible for this.year. Umi%ever, the staff wall be prepared to discuss
this matter in the €all, should the City. Council so choose. At that time
E.
the Council could consider "remaining with Ernst, & Whinney or soliciting
bids for this service. 1, it, should be noted ;that the -cost of the audit has
been generally in line with what other cities with an electric utility are
`
experiencing.
I will be pleased to answer any questions Councilmembers mayhave in this
_.
regard at Wednesday night's meeting'.°
Respectfully submitted,..:
ThMas A. Peterson
City Manager
TAP/lh
- - - - - ---
�TF
LL
z
CITY COUNCIL "'" . THOMAS A. PETERSON
g City,Manager
DAVID M. HINCHMAN, Mayor T;T, ®,1T '
�Vl M REIMCHE
r'
f.
FRED`ki. REID .i ALICE
City Clerk'.
Mayor Pro Tempore CITY HALL, 221 WEST PINE STREET
EVELYN M. OLSON ; - CALL BOX 3006: RONALD M. STEIN
JAMES W. PINKERTON, Jr. LODI. CALIFORNIA 95241-1910 City Attorney
aOHN R. (Randy) SNIDER (209) 334-5634
-=
March 20, 1986 =
Mr. James E. Olson,.
Partner ,
Ernst and Wain ey
555.Capitol Mall Suite 650:
._
Sacramento, CA. 9-r--814
,.: Rei City of Dodi Annual Audit for 1985 - 86_:
Dear Mr. Olson:,
.
This letter will confirm actions taken by the Lodi City Council at its
Regular Meeting of March:,19, 19867 whereby;_ Council, -by motion action,
F
cmfinmed the retaining of the:fizm of Ernst and Kinney to''perform`the
Annual Audit for 1985 - 86 at a cost of $22,000 and determined that the
I
City would solicit bids next fall for the performance of the annual. audit
for next year-
:
Should you have any„questions regarding this action, please do not
Ihesitate:to call this office.
Very, truly yours,
ALICE, M. REIMCHE
City Clerk
cc: Mr. Robert Holm,°
Finance Director