HomeMy WebLinkAboutAgenda Report - April 1, 1993 (4)a % 4
CITY OF LODI
IAGENDA TITLE:
WSETING n*.TZ :
PREPARED BY:
COUNCIL COMMUNICATION
I
Extend Contract With Peat Marwick & Main for Audit Services
s.r.ri 1 7, 1993
Assistant City Manager
RECOMMENDED ACTION: That the City Council authorize the firm of Peat Marwick &
Main to conduct an audit of Sanitary City Disposal
Company's financial records for the period April 1, 1992 to
March 31, 1993. The cost of the audit will be presented to
the City Council on April 7.
BACKGROUND:
The City Council directed staff to have an audit performed
of Sanitary City Dispocal Company's financial records. In
that the City contracts with Peat Marwick & Main for annual
audits of the City's financial records, staff contacted
that firm to perform the required audit.
Staff has met with representatives of that firm and Sanitary City to clarify
what was to be included. Peat Marwick & Main has been in contact with Sanitary
City to write a scope of the assignment and approximate hours involved.
We have agreed this audit will not commence until Sanitary City has closed
their books and has had their auditors complete their work. It is estimated
the audit will commence sometime in the middle of June.
We will not rec:ive tl.e proposal from Peat Marwick until Apri' 6, and it is
therefore not included in the Council agenda material.
FUNDING: 10-015.01 Contingency Fund.
Respectfully submitted,
ry L.' Glenn
Assistant City Manager
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THOMAS A. PETERSON
City Manager
Peat 1Aarwick 3=-s
Certified Pub83 Accountants
2495 Natoma: Park Drive Telephone 918 925 8000
Sacramento, CA 95833-2936 •
Mr. Dixon Flynn, Finance Director
City of Lodi :• ,. • a•:;:
221 West Pine Street * •'
Lodi, California 95241
Telefax 918 641 3199
April 5,1993
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•
Dear Dixon: -,_•
We have been requested that we provide you with a proposal to audit Lodi Sanitary City
Disposal, Co., Inc. ("Company") as of and for the year ended March 31, 1993. This letter
will set forth our understanding of the scope and objectives of our audit and the estimate of
the hours and related fees to complete the engagement.
The Company currently has a review completed by the certified public accounting firm of
Alder, Green & Hasson ("CPA") of Los Angeles, California. The Company's CPAs will
complete their review of the Company's financial statements as of March 31, 1993 during
• May of 1993. KPMG Peat Marwick ("Peat Marwick") will need to review the CPA's
review working papers as of and for the years ended March 31, 1992 and 1993. Since
you have requested us to complete an audit of the Company we will have to perform
additional audit procedures as of April 1, 1992 to assure ourselves the opening balance
sheet is fairly stated. �� ;, ` t ..`: i Y' ^ t,_ •-
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Peat Marwick will conduct the audit in accordance with generally accepted auditing
standards with the objective of expressing an opinion as to whether the presentation of the
Company's financial statements, taken as a whole, conforms with generally accepted
accounting principles. In conducting the audit, we will perform tests of the accounting
• records and such other procedures as we consider necessary in the circumstances to
provide a reasonable basis for our opinion on the financial statements. We will examine,
on a test basis, evidence supporting the amounts and disclosures in the financial statements.
:. We will also asscss the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. The
Company has agreed that all records, documentation, and information we request in
connection with our audit will be made available to us, that all material information will be
disclosed to us, and that we will have the full cooperation of the Company's management.
It should be understood that management of the Company has responsibility for the
firsncial statements and all representations contained therein. Management of the Company
i. also responsible for the adoption of sound accounting policies and the implementation of
recordkeeping and an internal control structure to maintain the reliability of the financial
statements and to provide reasonable assurance against the possibility of errors and
irregularities that arc material to the financial statements.
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Nilifli Peat Marwick
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Mr. Dixon Flynn, Finance Director
••.--, aty of Lodi . ••
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April 5, 1993
Page 3
P. 4/4
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If the foregoing is in accordance with you requirements, please indicate your acceptance by
signing the copy of this letter in the space provided below. We appreciate the oppommity
to be of service to the City of Lodi.
• •.• •
Very truly yours,
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enclosure
RESPONSE:
This letter correctly sets forth the
understanding of the City of Lodi ,,,,-)i',3:;•co,,,, s4.,...:-.4.,,,,., -. 1,1.1..
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