The URL can be used to link to this page

Home My WebLink About9/5/2012 - STAFF REPORTS - 2.T. FLMS OAS �< FOa�P 21 2p12 MEMORANDUM DATE: August 21, 2012 SUBJECT: MEASURE J AUDIT REVIEW CONTRACT FROM: David H. Ready, City Manager BY: Department of Finance and Treasury Attached is an executed letter agreement with the Palm Springs CPA firm of Maryanov, Madsen, Gordon & Campbell to provide oversight of revenues and expenditures of Measure J funds for the 2012-2013 fiscal year. The cost is not to exceed $5,000. Steven T. Erickson, CPA and David S. Suss, CPA will head up this project and perform the work. They will be performing procedures on all cash inflows and outflows to validate that funds have been received and spent according to approved projects. Separately, the City's independent auditors, Lance, Soll & Lunghard, will be conducting a formal audit of Measure J funds accounting as part of their normal Comprehensive Annual Financial Report (CAFR) including a special new report on Measure J funds. Please feel free to contact Geoffrey Kiehl, Director of Finance and Treasurer, at Geoffrey.Kiehla-palmspringsca.gov if you have any questions. ITEM NM IVIVI MARYANOV MADSEN GORDON & CAMPBELL C e r t i f i e d P u 6 l c Accountants A P r of e s s o n a I C o r p or a t i on July 31, 2012 raC Geoffrey S. Kiehl mmgXPA.Com Director of Finance and Treasurer City of Palm Springs 3200 E. Tahquitz Canyon Way David S.Suss,CPA Palm Springs, CA 92262-6959 Lyle E.Pierceall,CPA Steven T.Erickson,CPA Dear Mr. Kiehl, Don Keesling,CPA We are pleased to confirm our understanding of the nature and limitations of the services we Howard Gordon,CPA are to provide the City of Palm Springs. (1938 M71 Lloyd Moryanov,CPA We will apply the following agreed-upon procedures for the period from July 1, 2012 through (1933.2007) June 30, 2013, which you have specified: Etta E.Campbell,CPA RETIRED • Verify all Measure J sales tax receipts from the State of California by reviewing remittance documentation, bank records, and accounting records Verify all disbursements of funds to ensure that the funds are being spent on approved Measure J projects. The following procedures will be performed: o Review all disbursements o Agree the amount of each disbursement with approved vendor documentation o Review the approval of each expenditure o Review the timing of each expenditure o Review and report on project budget variances Provide monthly reports to the Mayor, City Council, and the Measure J Oversight Committee. Such reports will consist of the following: o A written description of the procedures that we performed o A written description of the revenues and expenditures covered by our report o A written description of any errors or irregularities noted, regardless of nature or amount Provide an annual summary report to the Mayor, City Council, and the Measure J 801 E.rahgait:Canyon way Oversight Committee. Suite 200 Palm Springs Our engagement to apply agreed-upon procedures will be conducted in accordance with CA 92262-6763 attestation standards established by the American Institute of Certified Public Accountants. P.O.Box 1826 The sufficiency of the procedures is solely the responsibility of those parties specified in the Palm Springs report. Consequently, we make no representation regarding the sufficiency of the procedures CA 92263 f826 described above either for the purpose for which this report has been requested or for any other purpose. If,for any reason, we are unable to complete the procedures, we will describe (760(320-6642 any restrictions on the performance of the procedures in our report, or will not issue a report (760)327-6854 FAX as a result of this engagement. 2 City of Palm Springs July 31, 2012 Page 2 Because the agreed-upon procedures listed above do not constitute an examination, we will not express an opinion. In addition, we have no obligation to perform any procedures beyond those listed above. We will submit a report listing the procedures performed and our findings. This report is intended solely for the use of the City of Palm Springs, the Mayor, City Council, and the Measure J Oversight Committee, and should not be used by anyone other than these specified parties. Our report will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to you. You are responsible for selecting the criteria and determining that such criteria are appropriate for your purposes. You are also responsible for making all management decisions and performing all management functions; for designating an individual with suitable skill, knowledge, and/or experience to oversee any other non-attest services we provide; and for evaluating the adequacy and results of those services and accepting responsibility for them. Steven T. Erickson, CPA, is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign it. Our fees for these services will not exceed $5,000 including any out-of-pocket costs such as report production, word processing, postage, etc. 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 thirty days or more overdue and will not be resumed until your account is paid in full. 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. In the event of a dispute over fees for our engagement, we mutually agree to try in good faith to resolve the dispute. If we are unable to resolve the fee dispute, the City of Palm Springs and Maryanov Madsen Gordon & Campbell, CPAs agree to be heard and adjudicated by a retired Federal District Judge, a retired United States Court of Appeals Judge, a retired Justice of the California Supreme Court, or a retired Justice of the California Court of Appeals. Such adjudication shall be binding and final. In agreeing to this, we both acknowledge that in the event of a dispute over fees, each of us is giving up the right to have the dispute decided in a court of law before a judge orjury and instead are accepting this use of resolution. 3 City of Palm Springs July 31, 2012 Page 3 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, A A:J�' Q/� UA Steven T. Erickson, CPA STEM Enclosures RESPONSE: This letter correctly sets forth the understanding of the City of Palm Springs. By: _�* 1 Title: orRrcTaK of Fll"Ar-cF AN) rR r.st a,c C,C 4