HomeMy WebLinkAboutAgenda Report - February 16, 1994 (52)CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Statement from KPMG Peat Marwick
MEETING DATE: February 16, 1994
PREPARED BY: Assistant City Manager
BACKGROUND: A representative from KPMG Peat Marwick will be in
attendance to issue a statement relative to the
conclusions that can be drawn from the recently,
completed audit, and to assure the City Council and
the public that they do not feel the City is spending
funds improperly.
FUNDING: NONE REQUIRED
Re. pectfully submitted,
,Te . Glenn
A sistant City Manager
JLG/pn
APPROVED
HOMAS A. / _TERSON
City Manager
CCKPMG.PM/7XTA.01V CC,
Good evening, my name is Deane Manning. I am a manager with KPMG Peat Marwick,
the independent certified public accounting firm hired by the City of Lodi to audit the
1993 financial statements of the City.
On February 8, 1994, KPMO presented to the City Council the City of Lodi's
Comprehensive Annual Financial Report and Management Letter for the year ended June
30, 1993. During the presentation and included in the Management Letter KPMG
recommended the Citi develop and implement short and long-term plans to assist the
general fund in becorrung less dependent on the enterprise fund.
An article written by the Lodi News-Sentinel appeared in the February 9,1994 newspaper
with the headline of "Report: Funds Are Spent Improperly" and the fust sentence of the
article read "The City of Lodi is taking too much money from its utility funds and using it
to cover the costs of day-to-day operations, say city-hired auditors."
I am here this evening to publicly state that KPMG did not say or impply in its
presentation on February 8 nor is it stated in the Management Letter prepared by KPMG
that the City of Lodi improperly spent monies nor did the City take too much money
from its utility funds to cover the costs of day-to-day operations. We suggested that the
City develop and implement short and long-term plans to assist the general fund in
becoming less dependent on the enterprise fund.
Accordingly, we believe the headline and opening paragraph of the article printed by the
Lodi News-Sentinel on February 9 was not a proper reflection of the facts. On February
10, 1994 the editor of the Lodi News-Sentinel wrote an editorial apologizing for the
headline and stated that the transfer of funds was not improper. We agree that the use of
such monies was not improper.