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HomeMy WebLinkAboutA6712 - BRABO & CARLSEN LLP - GRANT AUDITS RABO & ARLSEN, LLP MICIIAEL J. BRABC, CPA CERTIFIED PUBLIC WAYN[ E. CARLSEN, CPA ACCOUNTANTS k IN"nel,��e„i,r„r�•c„nhn„�.•; Yrc Ifm Sr.tbn (the A,,,,,wan Drati.uM ,J Co 1i6,4 Pubiir Flaaoioi fnn fs June 30, 2015 David H. Ready, Esq., Ph.D. City Manager City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Dear Mr. Ready: We are pleased to confirm our understanding of the services we are to provide for the City of Palm Springs. We will examine the Management's Assertion of Compliance with Economic Incentive Programs consisting of Fagade Improvement Program (135 grants), Special Focus Area Interior Remodel Program (21 grants), and Special Focus Area Major Remodel Program (3 grants) as of June 30, 2015. Our examination will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Accordingly, it will include testing of your records and other procedures we consider necessary to enable us to express an opinion as to whether your Management Report of Compliance with Economic Incentive Programs is presented, in all material respects, in conformity with program requirements established by the City. If, for any reason, we are unable to complete the examination, we will not issue a report as a result of this engagement. Our engagement will not include a detailed inspection of every transaction and cannot be relied on to disclose all material errors, fraud, or other violations of laws or regulations, that may exist. I lowever, we will inform you of any material errors or fraud that comes to our attention. We will also inform you of any other violations of laws or regulations that come to our attention, unless clearly inconsequential. We understand that you will provide us with the basic information required for our examination and that you are responsible for the accuracy and completeness of that information. We may advise you about appropriate criteria or assist in the development of the subject matter, but the responsibility for the subject matter remains with you. At the end of the engagement we will require a representation letter from management. Michael Brabo is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. We plan to begin our procedures on approximately July 1, 2015 and, unless unforeseeable problems are encountered, the engagement should be completed by July 10, 2015. 1111 E.TariQi rz CANDK VV O,Sore 203, RUM SPR6G5,CA 92262 lih:760-320-0848 •fin:760-322-4626 • "ww.brabo-carlsoitxorn David H. Ready, Esq., Ph.D. City Manager City of Palm Springs June 30, 2015 Page Two We estimate that our fees for these services will range from $15,000 to $20,000. The fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 30 or more overdue and will not be resumed until your account is paid in ft ll. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-or-pocket expenditures through the date of termination. We appreciate the opportunity to assist you and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. If the need for additional procedures arises, our agreement with you will need to be revised. It is customary for us to enumerate these revisions in an addendum to this letter. If additional specified parties of the report are added, we will require that they acknowledge in writing their responsibility for the sufficiency of procedures. Very truly yours, BRABO &CARLSEN, UP Certified Public Accountants MICHAEL J. BRABO, CPA MJB/lmf RESPONSE: This/letter correctly sets forth the understanding of the City of Palm Springs. By+� � Name.V David H. Ready David H. Ready / Title City Manager Date11 07-01-2015 ATTEST: APPROVED BY r rf Ci'f'n!,^,'! PRO A5 TO FORM Alo-11 Z. o4/03 2ols ity Clerk X7'V 5,� , ATTORNEY DATE 070/-df/i City Management's Assertion of Compliance with Economic Incentive Programs The City has implemented a series of certain grants from 2008 to 2015, consisting of 135 Fagade Improvement Grants, 21 Retail Interior Remodel Grants, and 3 Special Focus Area Grants. In the administration of these grant programs, City Management asserts: 1. Applications were submitted and reviewed for each grant. 2. For each grant approved,the applicant was found to be qualified and otherwise eligible for the grant applied for. 3. In the case of each of the 3 Special Focus Area Grants,the City conducted a public meeting and made findings for the approval of the grant consistent with the requirements under California Government Code Section 53083. 4. Each grant was evidenced by a written agreement. 5. Each agreement described the conditions and requirements of payment under the terms of the grant. 6. For each grant payment made,there was reasonable evidence of compliance with the conditions of payment under the terms of the grant agreement with certain exceptions, including without limitation the Special Focus Area Grant paid to Mama Ola's, which is in review and enforcement by the City Attorney. 7. City Management has implemented the following revisions to the practices and procedures in the administration of all future grant programs and these modifications will strengthen consistent, uniform, and fair treatment of applicants and ensure that the goals of the grant programs are achieved. • Modify agreements to provide express disclosure of the manner in which the work will be performed: a general contractor, business owner acting as the general contractor, and or combination of both methods, so that the evidence of payment can be specifically tailored to meet the needs of the City and the grant recipient. • The City Council currently authorizes funding for incentive programs; however,the Council formally approves the agreements for over$25,000. Going forward, City Council will approve all incentive agreements. • Payment requests were previously reviewed and approved by the Department Manager. Going forward, payment requests will also be reviewed and approved by both the City Manager and City Attorney before the Finance Department will release any funds. • The Finance Department will process all pay requests—Community Development will only process the application process. • All City incentive grants will be included in the City's annual independent audit.