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Home My WebLink AboutContracts & Agreements_31-1998_CCv0001.pdf ' Vakv 'ftine° Day & Co., LLP 1 ft'k s 1Flvw 1 � oo�nn e coo* c'^ crnm�/,"m�^cpu.mvn'n o�nn�xpn*g� cr^ ua/ccvvoracp^ mw� o/a/cce^ 11 .e uv"xom�, ,�^ ^r,m.,w°~ x�`c. xaunwx/m c,^ ��^'' ~^~^^~~'~~^ ~wc�°m^s�"**m*^oz"mnown~e /ancsmxsano vm^4u/ unuasnvmcr^ xmxw,o�,cp«nc/va/ cnm/w'/aoncpa /m�w/ a�ona� pnnc/pa/ nm xuw�z mn c^* �cxan,a� ox�u��_��'m�x May 27, 1998 City Council City of Redlands 35 Cajon Street P.O. Box 3005 Red|ands, CA 82373 VVeare pleased hoconfirm our understanding ofthe services weare hoprovide for the ChoofRedlands for the year ended June 30' 1988. We will audit the general purpose financial sbaternentsof' e City of Redlands as of and for the year ended June 30. 1998. Also, the opinion letter we submit hoyou will include the paragraph which states that the supplementary section, which includes the oonnbining, individual fund, and individual account group financial statements, will be subject to the auditing procedures applied in our audit of the general purpose financial statements. If required, our audit will be a Single Audit conducted in accordance with generally accepted auditing standards; the standards for financial audits contained inGovernment Auditing Standards, issued bvthe ConnptroUerGeneral ofthe United States; the Single Audit Act of1S84; and the provisions of{}K4B ^irou/ar A-133. 'Y\udib; of State and Local Governments."and will include testa of the accounting records of the City ofRedlands and other procedures weconsider necessary to enable us to express an unqualified opinion that the financial statements are fairly preaented, in all material respects, in conformity with generally accepted accounting principles and to report on the Schedule of Federal Financial Assistance and on the City of Redlands compliance with |avva and regulations and its internal controls as required for n Single Audit. The management of the City of Redlands is responsible for establishing and maintaining an internal control structure. In fulfilling this reaponaibi|ity, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation ofgeneral purpose financial statements inaccordance with ganeny| | accepted accounting principles, and that federal financial assistance prognannsare managed incnmn^|ionoavvith applicable laws and regulations. ' In planning and performing our audits for the year ended June 30. 1988. we will consider the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the City ofRed|anda's general purpose financial statements and on its compliance with requirements applicable to major programs and to report on the internal control structure in accordance with {}W1B Circular Ar133. and not to provide assurance Vn the internal control structure. ��n�asn�n �rmc/ ° nanc|tnoucan`ono,e. Cau/7zo vwo`o1-Hcesuxz/od� / nano u;7 u/r,+��or nc��nnmn 10° 1 )09!40;4�Ia/ � ` ` City ofRedlands � May 27. 1Q98 ' Page � Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include test of the physical existence of inventories, and direct confirmation of ' receivables and certain other assets and liabilities bvuonaapondenoewith selected indk�dua|a creditors and financial insUtuUons. VVewill also request wri ' repreaenbsUons�onnyour a�orneya At the ' conclusions ofthe audit, vvevvi|| also request oe�ainwritten representations �onnyou about the financial ' statements and related matters, As required by the Single Audit Act of1Q84. our audit will include tests of transactions related to federal ` assistance programs for compliance with applicable laws and regulations. However, because ofthe concept ofreasonable assurance and because wewill not pe�onnodetailed examni'^mUonofall ` transactiVno, there is risk that materia/ errons, irregu|oritiea, or illegal acts, including fraud or defalcations, nnoyexist and not bedetected byus. VVewill inform you, however, of ~nymnabersofthat nature that corneboour attention, and vvevvi|| indudesuch nnn�ersinthe reports required for oSingle Audit. Our responsibility as auditors is limited to the period covered byo- audit and does not extend to nnnttersthatrnightohneduringony /aterperiodsforwhiohvvennsnoten- d gage as auditors. ^ We understand that you will provide us with the basic information required for our audit and that you are responsible for the accurate and completeness ofthat information. VVewill advise you about appropriate accounting principles and their application. The responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application ofaccounting princip/eo and the safeguarding ofassets. ' We understand that your employees will type all cash or other confirmations we request and will locate any invoices selected byuafor testing, VVeunderstand the workpapers for this engagement are the property ofVavrinekTrine, Dayand constitute oonfidenUa| infbrmnbon Howevar, we ' Co.� � . certain available totheCih/'s(�ognicontAoenoypureuanttoauthority'given '/tcye— ��—'~ ~~'i�~ If access tosuch vvorhoapenovviUbeprovided under the supervisionof /a' � 'k- =--^~''' ' Furthermore,' �ponrequ �em�yprov�eph* �sofr«a«nne . |nne. Dey ��o personnel. - ~~` uu�cup selected workpapers hothe City'sv <�ognicant Agency. The Cognizant Agency may intend, ordecide, tdistribute information contained therein toothers, including other governmental agencies, Our fees for these services will bobased onthe actual time spent atour standard hourly natea Our standard hourly rates vary according tothe degree ofresponsibility involved and the expehen-celevel of the personnel assigned toyour audit. Our invoices for these fees will berendered each month as work progresses and are payable onpresentation, The maximum not-bz-exueedprice for the City of Redlands audit for the year ended June 3O. 1QS8. will below).|ow) This fee |sbased onanticipated cooperation hnn oyourpersonne| andtheamaumptionthatsignifi°""` � unexpected circumstances will not beencountered during the audit. The Auditors may also furnish other accounting services, which may include advisory and system accounting services oonaquesu�« by the City. andahaUnoceivepaym�ntforsuoh �ddition�!servioeotthenatesagindioatedintheAll addibona| services vvou|dbeapproved bythe {�ityprior tothe oomrnencementofsuch vvoproposal. ` ^ City ofRedlands May 27. 1S88 Page We will obtain an understanding of the design of the relevant policies and procedures and whether they have been placed inoperation, and wewill assess control risk. Tests ofcontrols may beperformed totest the effectiveness of certain policies and procedures that we consider relevant to preventing and detecting errors and irregularities that are material to the general purpose financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the general purpose financial statements. (Tests ofcontrols are required only ifcontrol risk imassessed below the maximum |evei) Our tests, ifperformed, will beless inscope than would be necessary to render an opinion on the internal control structure policies and procedures and accordingly, noopinion will beexpressed. ' We will perform tests of controls, as required by OMB Circular A-1 33, to evaluate the effectiveness of the design and operation of internal control policies and procedures that we consider relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable toeach ofthe City ofRed|unds'amajor federal financial assistance prognomno C)urtests will be less inscope than vvou|dbenecessary torender enopinion onthe internal control structure policies and accordingly, noopinion will beexpressed. ' We will inform you of any matters involving internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies inthe design oroperation ofthe internal control structure that, inour judgment, cou/d adversely affect the ent�y'e ability to nscord, prooess, summarize, and repodfinancial data consistent with the assertions of management in the general purpose financial statements. VVewill also inform you ofany nonreportab|econditions orother matters involving the internal control structure, ifany asrequired by OMB Circular Ar133. ' Compliance with laws, regulations, contracts, and grant agreements applicable to the City of Redlands is the responsibility of the City of Redlands's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we will perform tests oftheCityofRed|onds'sconnpUancewithce�ainpnovis|onsof/aws. nsgu|ations. novvtnoctoandgnanta However, the objective ofour audit vviU not be to provide an opinion on overall compliance '`'�th such provisions, and wewill not express such an opinion. Our audit will beconducted inaccordance with the standards referred hointhe second pa �'h Those standards require that vxe plan and perform the audit to obtain reasonable assurance about ~^~t'-= '~'er material nonoon�p|imncevvith the requirements governing types ofservices aUomedorun ~~~~ eligibility; nnatohing. level ofefhortorearmarking; repoding; special tests and provisions; c|aimnofor naimburaenxants and amounts claimed or used for matching that are applicable advances~ major'r-g~~' occurred. The purpose ofour audit vviURedlands 's compliance with the specific requirements applicable to major programs listed in the previous -- ' We will perform certain procedures to test the City ofRed|ands's compliance with general requirements applicable to its federal financial assistance programs as required by OMB Circular A-133. Our proceduresbe limited to the applicable procedures described in the OMB's"Comnp|ig-~ce Supplement for Single Audits ofState and Local Governmente.'^ Our procedures will besubstantially~asinacope than an oudiaudit, the objective of which is the expression of an opinion on the general requirements, and we Ci( Is Vavrinek. Trine, Day & Co., LLP A, Dr'If Th.(7eit UM I S VOhm" Davi"'!L Dwuw 1�()v I Nair, ('1 ',, 'I � ,('�. Ba-1 ',y lHir, V Ken 1 lol ir soi, Kuvfi'A'NW, dhfA'ilil�'Itw[V"I C "Veswil Jam'cs 11"Ils, r , Prim pfl lien A \V('!sgcf, flrin(pfl -IiAa_,-; lodd, C, Fom Nelsol", 11'\ jo.-XI Plinnp'lf i Kcv, 3PkIlhilM,1PA H ('IjoyI May 27, 1998 City Council City of Redlands 35 Cajon Street P.O. Box 3005 Redlands, CA 92373 The enclosed quality control.review report of Vavrinek, Trine,Day& Co., LLP for the year ended December 31, 1996, is being provided to you in accordance with Government Auditing Standards. A new report will be provided to you every three years during the period that we performed audit services for you. Yours very truly, Kevin T. Pulliam of VAVRINEK, TRINE, DAY&CO.,LLP KTP/kks Enclosure t�anclwi cucamonl�liz, s Ii(ix A ice) 1 nl(Fo c'-jcarf a, 721 4- () 4). FAX -0-i,e-13 i it ^ ~ City ofRedlands May 27. 1Q@8 Page We appreciate the opportunity to be of service to the City of Redlands and believe this letter accurately summarized the significant terms ofour engagement. |fyou have any questions, please let usknow. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Yours very truly, Kevin T. Pulliam ofVAVR/NE}{ TRINE, DAY& C[), LLP KTP:kks 984085 RESPONSE: This letter correctly sets forth the understanding ofthe City o[Redlands. By: E. _C%ianing1tam ` Title: Mayor, City of clIaid / b irman' Redevelopment Agency ' Date: June 16 , 1998 ATTEST: Z^< r ie Po], r� 8a�retar� / City �Ie�� City of Redlands / Schedule of Audit Fees 1QB8-98 Fiscal Year City ofRedlands $ 22,806 Redlands Redevelopment Agency 2,600 HourlV Rates Partner/Principal $135 Manager 110 Supervisor 85 Senior 80 Staff 57 C|er|oo| 30