HomeMy WebLinkAboutAgenda Report - May 6, 1987 (49)L�CIL CCMINICA'I'Id)
TO THE CITY COUNCIL DATE-
FROM. THE CITY MANAGER'S OFFICE Pta�+ 6, 198'
SUBJKT: C^RSIf)FR RE-rrMi)ENDATION OF SCREENING -COMMITTEE FOR RETAINING. CITY
L,
AUDITING FIRM
RECOMMENDED ACTION: That the City Council accept the proposal from
Ernst & Whinney to provide audit services for fiscal year 1986-87 at a
cost of S22,500.
BACKGROUND INFORMATION: At the February 18, 1987, Council meeting,
Council approved the Request for Proposals for Audit Services and
authorized the Finance Director to advertise and solicit proposals. At
this meeting, Mayor Fred Reid, with Council approva., appointed the
following screening committee of five persons to review proposals
submitted:
Mayor Fred M. Reid
Councilmember John R. (Ran
dyl Snider
Assistant City "tanager Jerry Glenn
Finance Director Robert Holm
Rich Emde, Plant Controller --General Mills, Inc.
On March 30, 1987, proposals were received from the following firms:
Bartig, Basler & Ray Citrus Heights
Deloitte, Haskins, Sells Sacramento
John Donovan & Co. Lodi
Ernst & Whinney Sacramento
Peat, Marwick, Main & Co. Sacramento
Price Waterhouse Sacramento
Touche Ross & Co. Sacramento
The screening committee met April 15, 1987. After careful review and
evaluation of each proposal in the areas of technical experience,
qualifications of the audit team and comparison of costs, it was the
unanimous agreement of the committee to continue with the services of
Ernst & Whinney.
Each resporlent was notified of the committee's recommendation by
letter on April 28, 1987.
Respectfully submitted,
Fred M. Reid
Council Member
COUNCOM8
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CITY COUNCIL
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CITY HALL. 221 W S1 PIKE SiRE.ET
CALL PDX
LODI, CALIFORNIA 95241-1910
,204) 334-5634
TELECOMR (209);71.6795
May 11, 1987
James B Olson
Partner
Ernst and Whinney
555 Capital Mall, Suite 650
Sacramento, CA 45814
Gentlemen:
THO\AAS A PETERSON
This letter will confirm that the Lodi City Council, at its regular
meeting of May 6, 1987, accepted the proposal from Ernst and Whinney to
provide audit services for fiscal year 1986-87 at a cost of $22,500.
Further, Council approved an option to renew the contract with Ernst
and Whinney for an additional four years.
Section E entitled "Acceptance of Proposal Contents" of the Invitation
to Submit Proposals for Auditing Services indicated that "After the
Auditing firm is selected by the City, the contents of the submitted
proposal will become a contractual obligation. We have therefore
enclosed two copies of the Request for Proposal containing a signature
page. Please execute these documents and return them at your earliest
convenience.
Should you have any questions regarding this matter, please do not
hesitate to call this office.
Very truly yours,
Alice M. Reimche
City Clerk
AMR:JJ
cqt Mxr;'ger
C11V clerk
Ctty Attorney
Ernst & hinney
March 30, 1987
. ldit Selection Committee
City of Lodi
221 W. Pine Street
Lodi, California 95241-1910
Dear Sirs:
Capl!oi Salic 650
Ernst & Whinney is pleased to submit our proposal for reappointment as
the independent accountants for the City of Lodi. We will perform an
examination of the general purpose financial statements of the City of
Lodi as of June 30, 1987, as well as a single audit of the City's compliance
with grantor requirements in accordance with OMB Circular No. A-128 Uniform
'dmnistrative Requirements for Grants -in -Aid to State and Local
Governments, and the Compliance Supplement for Single Audits of State and
Local Governments issued by 9.43. We will also issue a report on the City's
investment policy and issue a management letter at the conclusion of the
engagement.
Ernst & Whinney has' been proud to serve as the independent accountants for
the City of Lodi. We have developed strong working relationships with
City employees. Keeping with our commitment to provide quality service to
the City, Ernst & Whinney will continue to maximize the use of audit team
members ::ho have prior audit experience on this engagement. We understand
the City's administrative accounting and internal control systems. We have
also become familiar with the audit requirements of your cognizant agency.
After reviewing our proposal we are sure you will agree that Ernst & Whinney
will provide the City with the most efficient audit possible with a
minimum disruption of your day-to-day operations.
The request for proposal states that preliminary fieldwork may commence near
June 30, 1987 and that the City's financial records will be closed by
approximately September 30, 1987. Considering these facts, Ernst & Whinney
will be able to finish field work and have an exit conference by October 30.
and a final report by December 1, 1987. During the course of our work, if
events arise which are beyond our control and would preclude us from meeting "
these deadlines, we will immediately notify Robert H. Holm.;.
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I represent 7-rnst & Whinney in ali .,,atters concerning the City and am
allthoriZed to bind Ernst .& W ,innelv in a contract with the City. You can
contact me at the address indicated on the previous page or at (916)
447-3237.
The all-inclusive fee included in a sealed envelope is based upon a number
of factors including past experience, our knowledge of the City and the
amount of assistance to be provided by the City's staff.
It is our desire to continue to provide a full range of professional
services to the City of Lodi and we believe there are many items in this
proposal which distinguish us from other firms you will be considering. We
will be glad to meet with the Council and City officials to elaborate upon
our credentials and our commitment to continue serving the City.
Very truly yours,
61a,es E. Olson
Partner
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