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. CITY OF SAN BERtt";RDINO - REQUEST fJR COUNCIL ACTION
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From: W. R. Holcomb
Mayor
Dept: Mayor
Date: May 30, 1990'~
Subject: Authorize extension of financial
audit services from 1990-92
KPMG Peat Marwick Certified
Public Accountants.
Synopsis of Previous Council action:
f
Recommended motion:
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That the cost for Annual Audit services for Fiscal Year ending
June 30, 1990, 1991 and 1992, be approved in the amounts set
forth in the letter from KPMG Peat Marwick, dated May 8, 1990.
Contact person:
Andrew Green
Phone:
5242
Supporting data attached:
Yes
Ward:
FUNDING REQUIREMENTS:
Amount:
$49.500 IIQRQ-qO)
Source: (Acct. No.)
001-092-53755
(Acct. Description)
City audits
Finance: ~ D J--I
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Council Notes:
75.0262
Agenda Item No
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~ CITY OF SAN BERNt-RDINO - REQUEST FjR COUNCIL ACTION
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STAFF REPORT
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The attached letter from Peat Harwick i. .elf-explanatory. I
have reviewed the work of this firm and believe their
auditing services have been competent and workmanlike. As
indicated in Mr. Green'. m_orandUII, ina.much as the
Redevelopment Agency also utilizes the .ervice. of this firm,
it se_s appropriate to continue Peat Marwick'. services.
The cost of the auditi services over the three years
involved appears to b sonable.
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75.0264
__ Peat9t1arwick
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Certmed Public Accountants
725 South Figueroa Street
Los Angeles. CA 90017
Telephone 213 972 4000
Telex 6831572 PMMLA
Cable Address VERIT A TEM
Telecopier 213 622 1217
May 8, 1990
Mr. Andrew Green
Fmance Director
City of San Bernardino
300 North D Street
San Bernardino, California 92402
Dear Mr. Green:
At your request, we are pleased to submit this engagement letter to continue to provide audit
services to the City of San Bernardino for the fiscal years ended June 30, 1990 and 1991. We
believe that we have demonstrated from our past audits of the City that we have effectively and.
efficiently completed services you have requested. 1brough our association with the City, we~
have seen marked improvement in the form and content in the City's Annual Financial Report. ;
The ProJlOsed A~ment
When we originally proposed to perform the annual audit of the City of San Bernardino, we
understood that the City had experienced computer conversion problems; however, most of the
problems has been taken care of and would not present the same degree of difficulty in the
future. Based on this representation, we estimated that we could perform the requested audit in
approximately 1000 hours. Our actual hours incurred for the last three fiscal year audits have
been as follows:
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1987
1988
1989
I::I2Yr1
1887
1604
1380
Even with the excessive hours needed to complete the annual audits of the City, we continued
to honor our commitment in our proposal dated November 6, 1987. Through our involvement
with the City, we have noted a marked improvement in the City's financial resource
administration. As a result, we believe that 1300 hours is a reasonable estimate of the ongoing
hours needed to perform the annual audit of the City. Based on this estimate, we are prepared
to commit to the following fixed fee for the fiscal years ending June 30,1990,1991 and 1992:
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1990
1991
1992
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$ 49,500
53,000
53,000
1111...m"",,,mo,
KlynveIdPeat MatWlCkGoerdeler
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_Peat Marwick
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Mr. Andrew Grecn
City of San Bernardino
May 8, 1990
Page 2
It should be noted that the objective of our audit will be to render an opinion on the fairness
with which the financial statements present the financial position, results of operations and
changes in financial position of the City. Our audit will be conducted in accordance with
generally accepted auditing standards and, accordingly, will include such tests of the accounting
records and such other auditing procedures as we consider necessary to express an opinion on
the financial statements.
We hope you fmd our proposal satisfactory. We look forward to a continued positive and
lasting relationship. If you find these arrangements meet your approval, it would be
appreciated if you sign the attached copy of this letter in the space provided and return it to me
at your earliest convenience. If we can be of further assistance or answer any questions that
you may have, please feel free to contact me.
Very truly yours,
KPMG Peat Marwick
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Thomas W. Snow, Partner
1WS:fmr
ACCEPrED:
CITY OF SAN BERNARDINO
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