HomeMy WebLinkAboutAgenda Report - June 20, 1984 (80)F I M I CIU DMI'
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J= 20, 1984
Following intr(Auction of the mutter by Staff, Council. on
nut ion of Council 1.13"tier Ol ~ot►. Reid second. approved \
retaining the fit1Ti of !•sti5t & Minney to comiuet the I983 -R4
F.Y. Audit at it cost not to exceed $16,500.005
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CITY COUNCIL HENRY A. CLAVES. Jr.
City Manager
JOHN R (Randv) SNIDER, Mayor CITY O ODI L� ALICE M. REIMCH.
DAVID M H INCHMAN City Clerk
Mayor P►o Tempore CITY HAIL, 221 WEST PINE STREET
EVELYN M OLSON POST OFFICE BOX 320'
RONALD M STEM
JAMf S W PINKIRTON. Ir. LODI. CALIFORNIA 95241 City Attorney
FRED M RIID (209)334-5634
June 26, 1984
Mr. Janes E. Olson
Partner
Ernst & Whinney
555 Capitol mall, Suite 650
Sacramento, CA 95814
Dear Mr. Olson:
Please be advised that your June 12, 1984 letter sutmarizinggthe
scope of your service and fee estimate regarding the City retaining
you to examine the financial statements of the City of Lodi for the
year ending June 30, 1984 was presented to the Lodi City Council
at its regular meeting of June 20, 1984.
7te City Council, by motion action, authorized the retaining of
the firm of Ernst & Whinney to conduct the audit for the 1983-84
fiscal year at a fee not to exceed $16,500.00.
Should you have any questions please do not hesitate to call this
of f ice.
Very truly yours,
7 ,
Alice M. Reimche
City Clerk
Ernst &Whinney
June 12, 1984
City Council
City of Lodi
221 West Pine Street
Lodi, California 95240
Attention Mr. Jerry L. Glenn
Dear Mr. Glenn
44
555 Capitol Nt;rii. Suite 650
Sacramento. CalilOrnia 95K14
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 ending June 30, 1984.
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 exan►ination 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.
City Council
City of Lodi
Page 2
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. Our fee estimate this year is
based upon the continued usage of accounting department personnel for
approximately 80 hours to perform the above procedures and draft the
financial statements.
We estimate that our fees for the examination of the 1984 financial
stRtements will be $16,500. This represents a 10% increase over our fees
for the past two years when our estimate was $°15,000. Should any
significant or unusual circumstances be encountered, we will advise you
prier to altering our audit scope.
We look forward to the opportunity to again serve the City of Lodi.
Very truly yours,
es Olson
artner
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