HomeMy WebLinkAboutContracts & Agreements_32-1992_CCv0001.pdf XP Peat Marwick
Certified Public Accountants
Orange County Office Telephone 714 850 4300 Telecopier 714 850 4488
Center Tower
650 Town Center Drive
Costa Mesa, CA 92626
April 23, 1992
Mr. Steven M.Chapman
Finance Dire=
City of Redlands
P.O. Box 3005
Redlands,California 92373
Dear Steve:
It was a pleasure to meet with you yesterday to discuss our audit of the financial statements
of the City and Redevelopment Agency as of and for the year ended June 30, 1992. This
letter will confirm our understanding of the arrangements for that engagement
KPMG Peat Marwick ("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 above-referenced financial statements,taken as a whole,conform 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 assess the accounting principles used and significant
estimates made by management, as well as evaluate the overall financial statement
presentation. The City agrees 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 City's personnel.
It should be understood that management of the City has responsibility for the financial
statements and all representations contained therein. Management of the City is 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 fmanclai
statements and to provide reasonable assurance against the possibility of errors and
irregularities that are material to the financial statements.
An audit is designed to obtain reasonable assurance about whether the financial statements
are free of material misstatement. Even a material misstatement may remain undetected,
however,by an audit performed in accordance with generally accepted auditing standards.
We will furnish to you any recommendations about the internal control structure that we
note during the audit which appear to be of significance under the circumstances.
As disclosed in our proposal, the audit fees, including expenses, for the 1992 audit will be
$42,500.
Member Firm of
KVwld Peat Marwick Gwde4er
Mr. Steven M.Chapman
City of Redlands
April 23, 1992
Page 2
This estimate reflects our anticipation of the necessary partner, management, and staff
hours, along with related expenses. Circumstances encountered during the conduct of the
audit that warrant additional time or expense could cause us to be unable to complete the
audit within the above estimates. We will endeavor to notify you of any such
circumstances as they are assessed.
Our fees for special or nonrecurring services during the year will be billed based upon our
billing rates for the professional involved. In the event Peat Marwick is requested pursuant
to subpoena or other legal process to produce its documents relating to engagements for the
City in judicial or administrative proceedings to which Peat Marwick is not a party, the
City shall reimburse Peat Marvick at standard billing rates for its professional time and
expenses,including reasonable attorney's fees, incurred in responding to such requests.
Peat Marwick will normally invoice you biweekly for services performed and expenses
incurred since the last invoice.
We anticipate that you may request additional services similar to those described herein or
other special services. For your convenience, and ours, we may decide that separate
engagement letters for such services are not necessary. In that event, the provisions of this
letter are applicable to such future services except to the extent otherwise agreed.
We look forward to working with the City of Redlands. For your convenience in
confirming these arrangements,we enclose a copy of this letter. Please sign and return it to
me.
Very truly yours,
KPMG PEAT MARWICK
A
Margaret J. McBride, Partner
Accu
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ATTEST:
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Mayor
Title t y c erk
May 5 , 1992
Date