The URL can be used to link to this page

Home My WebLink AboutContracts & Agreements_23-1996_CCv0001.pdf ~ ^ cw�rcmvm^ c=^ . Xla�'riD��° Trine, DaN,, & Co~ cp^ Vpm19x ,c'^ wcwnzpuo�nce° mmswmucu^ ,wm/,,�, xom�su'�� ce^ m» /� wa�r.cp^ nx^nas� un*x� cr° *`�"`�� /�»�smusanopmx�na 4"-/ *n-o /mm, March 7. 18Q6 City Council City of Redlands P.O. Box 3005 Red|ands, California 92373 VVeare pleased boconfirm our understanding cfthe services we are toprovide for the City ofRedlands for the year ended June 3O. 1Q9G. VVowill audit the general purpose financial statements ofthe City of Redlands asofand for the year ended June 3O. 1996. Also, the opinion letter vvesubmit 0oyou will include the paragraph which states that the supplementary secUon, which includes the connbining individual fund, and individual account group financial abatemenb;, will be subject tothe audibng ' procedures applied in our audit of the general purpose financial statements. -^incatheCihyofRed/anda intends to issue a Comprehensive Annual Financial RepoReport(CAFR). the opinion letter we submit to you will include the mtatemnantthat the infornnoUoncontained /nthe s`aheUo' of c�| nec�� ' theCAFRwhUnotbe subjected to the auditing procedures applied /n our audit of the general purpose financial statements. Our audit will be a Single Audit conducted in accordance with generally accepted auditing standards; the standards for financial audits contained /nGovernment Auditing 3bandendsissued bythe(�onnptroUe`r General ofthe UnhedStates; the Single Audit Ao of1SO4; and the provisions ofOMB Circular A-12" "Audits of Gbnbe and Local Governments.'^and will include tests of the accounting records of the City of Redlands and other procedures we consider necessary to enable us to express anunqualified opinion that the financial statements are fairly presented, inall material respects, inconformity with generally eted accounting phnoip�aand tonepo�on the Schedule ofFederal Financial Assistance and on the C��^=p Redlands conmpUancom/ith /avvaand naDu|adonsand its internal controls aarequired for aSingle uyu/ The management ofthe City of Redlands is responsible for establishing and maintaining an internal control structure. In fu|5UimQ this naspons/bUih/, 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 aninternal control structure are b» provide mana |-ernentwith naasonabia but not absolute assurance that assets are safeguarded against loss hornunauthorized use or disposition, that ' transactions aneexmcubadinaccordancevvithmonagernenyeauthohzahunsandmeoo ^-` permit the pnaparaUonofgeneral purpose fingnd ��with/th r�e� p»opedytu accoundnQphncip|ea. andbhatfedengl financial assistance proQnannsare cngeneno||y�oc�pbad aPpUcab|o \emmsand regu�t�ns. �n�gegmcomnp|kanmevvi�h |nplanning and performing our audits for the year ended June 3O. 1S06. vxewill consider the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the City ofRed|ande'mgeneral purpose financial statements and on its compliance with requirements applicable to major programs and to report on the internal control structure in accordance with OMS Circular A-128, and not to provide assurance on the internal control structure, � ��/m . ~``-_. . , City ofRedlands March 7, 1996 Page VVewill obtain anunderstanding ofthe design Vfthe relevant policies and procedures and whether they have been placed inoperation, and wewill assess control risk. Tests ofcontrols may beperformed totest the effectiveness ofcertain policies and procedures that vveconsider relevant hzpreventing and detecting errors and irregularities thatanarnahsria| boMhegenena| purposeMnanc/a| shebanlenbsandbopneventinQ and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect onthe general purpose financial statements. (Tests ofcontrols are required only ncontrol risk|sassessed below the maximum |eve|.) Our tests, ifpedbrmed vvU| beless inscope than vmzu/dbenecessary torender anopinion onthe internal control structure policies and procedures and accordingly, noopinion will boexpressed. ' rVVevvU/ pe�onntesh;ofoontro/a. oensquin*dbyOK0BCirou/arA-128 bzevaluate the afeo�vanessofthe designandopenaOonofinharna/non�olpo/ioieaandpnooedunesthmtwe' —cons/derre|evantb)pnavenhngor detectmgo�ateho| nonoonnp|iancevv/thspecific nequinannenta. general /equiremenb; and requirements Qovenlingokgimnaforodvgnceaondre/mbumementoondomountedoi—'~~dorused`for nny^ohinOthat are applicable toeach ofthe Cib/ofRed/ands'snonnn=�orfedena| financ/g| assistance internal noePnzAnyrna� [)urt�atsvviU and. acconding|y. noopinionvviU beexpressed. oon�ro|otn�otunepo|��i�� VVewill inform you ofany matters involving internal control structure and its operation that xxeconsider t benepo�abksoondUUnn onaund�raband�rda�nb9b|i�hedbyth�Aerinan /nst/tuteof(�ed�edPub|io o Accountants. Reportable conditions involve matters coming to our attention relating to significant a deficiencies inthe design oropenabonoftheinhenng| conhn|atructurethat inour udgnnen� could adversely affect the entity's ability to naoord, procesm, aurnrnahze and report' fina''��oia/data consistent with the oaeerbVnaofnnan�g�nlentinthe general purpose financial/ asummarize, be nonrgpo� �eb� oond�onsorothermm�eroinvo|vingthe |nterna/ control atnuoture. /fany, asrequired by Compliance with laws, regulations, contracts, and grant �ggnaenentaapp/inab|etotheCih/ofRed/and is City ofRed|ando'smanagement. Aspart cfobtaining reasonable assurance about xhetherthegonmna| pu ' se financial statements are free ofmaterial misstatement, wowill perform tests Vfthe City ofRed|enda' compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective ofour audit will not behoprovide a/ opinion onoverall compliancewith such provisions, and will not express such anopinion. we Our audit will beconducted inaccordance with the standards referred hointhe second paragraph. T ho s esbsndardsneqoineUlatmap|anendperfbnnMhe audit to obtain reasonable assurance about whether material noncompliance with the requirements governing types of services allowed or unallowed; eligibility; matching, level ofeffort,orearmarking; reporting; special tests and provisions; claimsforoovancesandra| nbursenenbs; andanounbsda| nedorused -rnab:hi' gthat are applicable to major progrensocourred. The purpose ofour audit will bmbgxpreesanopinion onthe City ofRed|ando'scompliance with the specific requirements applicable h} major programs |isted /n the previous sentence. We will perform certain procedures to test the City of Redlands's compliance with general requirements applicable to its federal financial assistance programs asinedbvOK8BCircular A-12G {}or procedures w� n�� described |be|i �jhoUhe�pp|icob|epno�edur�� in^the eDK8B'S" <�ornp|ia—°oe�upp/�rnent for Single Audits of State and Local{Sovennments." Our procedures will besubstantially=as|nscVpe than an audit, the objective of which is the express/on of an opinion on the general reqw/�/n� entsand ««U/ not express such amopinion. ' . we � H City of Redlands March 7, 1996 Page 3 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 by correspondence with selected individuals, creditors, and financial institutions. We will also request written representations from your attorneys. At the conclusions of the audit, we will also request certain written representations from you about the financial statements and related matters. As required by the Single Audit Act of 1984, our audit will include tests of transactions related to federal assistance programs for compliance with applicable laws and regulations. However, because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud or defalcations, may exist and not be detected by us. We will inform you, however, of any matters of that nature that come to our attention, and we will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged 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 of that information. We will advise you about appropriate accounting principles and their application. The City will be responsible for preparing, typing and printing of the Comprehensive Annual Financial Report and the responsibility for the financial statements remains with you. 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 of accounting principles, and the safeguarding of assets. We understand that your employees will type all cash or other confirmations we request and will locate any invoices selected by us for testing. We understand the workpapers for this engagement are the property of Vavrinek, Trine, Day&Co. and constitute confidential information. However, we may be requested to make certain workpapers available to the City's Cognizant Agency pursuant to authority given to it by law or regulation. If requested, access to such workpapers will be provided under the supervision of Vavrinek, Trine, Day &Co. personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to the City's Cognizant Agency, The Cognizant Agency may intend, or decide, to distribute the photocopies or information contained therein to others, including other governmental agencies. Our fees for these services will be based on the actual time spent at our standard hourly rates. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. The maximum not to exceed price for the City of Redlands audit for the year ended June 30, 1996, is 20,900. This fee is based on anticipated cooperation from your personnel and the assumption that significant unexpected circumstances will not be encountered during the audit. The Auditors may also furnish other accounting services, which may include advisory and system accounting services as requested by the City, and shall receive payment for such additional service at the rates indicated under the compensation section of this contract. All additional services would be approved by the City prior to the commencement of such work. City of Redlands March 7, 1996 Page 4 We appreciate the opportunity to be of service to the City of Redlands and believe summarized the significant terms of our engagement. If you have an You agree with the terms of our engagement as described in this tetter I this letter accurately y questions, please let us know. If return it to us. pease sign the enclosed copy and Yours very truly, Kevin T. Pulliam KTP:dmo of VAVRINEK, TRINE, DAY& CO. RESPONSE: This letter correctly sets fo the understandingof the City of Redlands. Tide: Swen Larson Ma or Date: March 19 1996 ATTEST: Lorrie P zer, Ci lark CitY- Redlands ''