HomeMy WebLinkAboutAgenda Report - April 21, 1982 (29)CITY COUNCIL MEETING
APRIL 21, 1982
iT
ERNST AND WHINNEY Following introduction of the matter by City Manager
RETAINED TO CONDUCT Glaves, Council, on motion of Mayor Pro Tempore
AUDIT FOR YEAR Murphy, Snider second, authorized the hiring of
ENDING 6/30/82 Ernst and Whinney of Sacramento to examine the
financial statements of the City of Lodi for the year
ending June 30, 1982 at a cost not to exceed $15, 000. 00
Ernst &Whinney
February 26, 1982
City Council
City of Lodi
221 West Pine S*-- -et
Lodi, California 95240
Attention Mr. Jerry L. Glenn
Dear Mr. Glenn:
555 Capitol Mall. Suite 650
Sacramento, California 95814
916/447.3237
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, 1982.
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.
MAR 0 I. 1982
City Council
City of Lodi
-2-
February 26, 1982
We expect to use your staff as much as possible to prepare analysis
schedules, provide supporting dicumentation, 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 1982
and their preparation of analyses and corrections to fund balance accounts,
in addition to drafts of the financial statements.
Fees for the financial audit for 1980 and 1981 were $14,120 and $14,820,
respectively. Our fees for services to be rendered in the examination of
the 1982 financial statements will not exceed $15,000. Should any
significant or unusual circumstances be encountered, we will advise you
prior to altering our scope of services or examination.
We look forward to the opportunity to again serve the City of Lodi.
Very truly yours,
2" U46
James E. Olson
`' Partner
April 29, 1982
Mr. James E. Olson
Ernst and Whinney
555 Capitol Mall
Suite 650
Sacramento, CA
®ear Mr. Olson:
This letter will confirm the actions of the Lodi
City Council taken at its regular meeting on April
21, 1982, whereby the Council authorized the
engagement of your firm to examine the financial
statements of the City of Lodi for the year ended
June 30, 1982 as outlined in your letter of February
26, 1982 at a fee not to exceed $15,00.0.00..,
Should you have any questions regarding this action,
please do not hesitate to call.
Very truly yours,
Alice M. Reimche
City Clerk
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