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HomeMy WebLinkAbout8.2 City Auditor Services • 0 CITY OF DUBLIN • 510-10 O AGENDA STATEMENT Meeting Date: 7/26/82 SUBJECT: City Auditor Services • EXHIBITS ATTACHED: Request for Proposal RECOMMENDATION: Approve request for proposal and authorize staff to solicit proposals for Auditor Services. FINANCIAL STATEMENT: Amount budgeted $6,000; cost to be determined. DESCRIPTION: Attached for City Council review is a request for proposal for City Auditor services. The request for proposal includes the provision of audit services for fiscal year 1981-82. and continued for an indefinite period subject to cancellation by either party with ninety (90) days written notice. The request for proposal also requeststhat the auditor prepare the City's annual State Controller's • Report and develop a chart of accounts for the City. Staff recommends the inclusion of the latter items on the request for proposal , because the State Controller has made significant revisions to the reporting requirements, which will require a significant allocation of staff time which is not available at present. With respect to the selection process, it .is staff's recommendation that a subcommittee composed of two (2) councilmembers and the City Manager interview those auditing firms that submit proposals to the City. Such joint council and staff review is important because the auditor not only works for the City Council in reporting on the adequacy in which financial transactions and accounting records are kept, but also acts as a consultant to staff in the review of special accounting problems. During the 1982-83 budget hearing Councilpersons Jeffery and Moffatt expressed an interest in the selection process. Staff proposes that the selection process Copies To: ITEM NO. 8. 42, Page 2 DESCRIPTION: (Cont.) move as expeditiously as possible in order that the auditing firm selected will be able to meet the September 30, 1982 deadline for filing the State Controller's report and minimize the backlog of the City's accounting transactions with the development of a chart of accounts. • AUDIT PROPOSAL OUTLINE A. Scope of the Audit 1. The examination shall be made in accordance with generally accepted auditing standards as outlined in the National Committee on Governmental Accounting Publication, "Governmental Accounting, Auditing, and Financial Recording". 2. The examination shall include such tests of the accounting records and such other auditing procedures as auditors consider necessary in the circumstances to allow for an expression of an opinion on the financial statements of all City funds . 3. Auditors shall provide 25 copies of their opinion with Financial Statements as soon as possible after the examination is completed, but no later than sixty (60) days after the City's records have been closed and made available for final audit. 4. This agreement shall cover that portion of fiscal year 1981-82 in which the City of Dublin was incorporated (February 1, 1982 - June 30, 1982) , and subsequent fiscal years subject to cancellation by either party by giving written notice to the other party not later than ninety (90) days before the beginning of such sub- sequent year. 5. Auditor shall observe the system of internal control and, if weak- nesses are noted, make appropriate recommendations . 6. Auditors ' comments shall be included in a separate management letter to be issued as soon as possible after the conclusion of their examination. B. Other Services to be Performed 1. State Controller's Report. The auditor shall prepare the State Controller's Report for the City before the State filing deadline. 2. Chart of Accounts. The City being recently incorporated, has at present no chart of accounts. The auditor shall develop a chart of accounts for the City of Dublin in accordance with the Governmental Accounting Publication, "Governmental Accounting, Auditing and Financial Recording." Particular attention should be given to Statement 1 of that publication. Further, the development of such chart of accounts shall be accomplished in consultation with the City Manager. O Audit Proposal Outline Page 2 C. Consideration 1. Auditor shall provide City with an estimate of the total maximum annual fee for audit services rendered. The maximum annual fee contemplates that conditions satisfactory to normal progress and completion of the examination will be encountered, and that City personnel will furnish the necessary accounting records, documents, minutes, etc. , for auditor's inspection. However, if unusual circumstances are encountered which make it necessary for auditors to do additional work, auditors shall report such conditions immediately to the City Manager. Invoices may be submitted for services as work progresses, but not more often than once a month. Invoices rendered should separate labor from other expenses and should reflect total hours worked by each classification. e.g. , partner, manager, etc. 2. The proposal shall also include separate maximum fees for the preparation of the State Controller's Report and the development of a Chart of Accounts for the City respectively. 3. It's important to note that the City is interested in receiving the best service at the lowest cost. However, the selection of the auditor will not be made solely on the basis of the fee amount. C. Background Information Provide names and governmental experience of personnel who will be directly associated with the audit. Indicate what public agencies your firm has audited during the past four years. It would be appreciated if you would include a sample copy of your proposed contract. D. Rating Factors 1. Qualifications of the personnel assigned to the audit. 2. Experience in similar work. 3. Familiarity with revenue sharing and State of California audit requirements. 4. Availability of key personnel for consultation (responsiveness) . 5. Breadth of experience, i .e. , municipal audits, special district audits , etc. Involvement with funding legislation and ability to interpret requirements is considered important. 6. Ability to meet deadlines and time-schedules for both audits and special requests. 7. Working knowledge of various federal and state grants programs. . • July 27, 1982 Ladies & Gentlemen: The City of Dublin is soliciting proposals for annual audit services from a limited number of certified public accounting firms with a high degree of professional competence and appropriate experience in auditing public agencies. The proposed audit services contract would be for that portion of fiscal year 1981-82 in which the City of Dublin was incorporated (February 1, 1982- June 30, 1982) , and subsequent fiscal years subject to cancellation by either party upon (90) ninety days written notice. If your firm is interested in performing the audit, please submit your proposal for audit services , incorporating the information contained in the attached "Audit Proposal Outline". Proposals are to be submitted to this office on or before August 16, 1982. Background Information The City of Dublin is a general law city and was incorporated on Feb- ruary 1, 1982. The City is governed by a City Council whose five members are elected at large. The City has a population of approximately 13,500, and is approximately four square miles in area. The City has four (4) full time employees and contracts for most municipal services with either the County of Alameda or private firms. The following services are provided by the City: Police services , animal control , street maintenance, tree trimming, planning and zoning, building inspection and engineering. The City's total operating budget for fiscal year 1982-83 is $2,436,045. Should you need additional information, please feel free to contact my office. Sincerely, Richard C. Ambrose City Manager RCA:sd Enc.