HomeMy WebLinkAbout4.07 AuditServicesAgmtCITY CLERK
File # Q�❑�-��
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: (April 23, 1996)
SUBJECT:
EXHIBITS ATTACHED:
RECOMMENDAT�1�:�
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Agreement For Audit Services - Vavrinek, Trine, Day & Co.
Report Prepared by: Paul S. Rankin, Assistant City Manager
1. Excerpts From Proposal
2. Proposed Agreement
Accept the recommendation of the City Council Audit Subcommittee and
authorize the Mayor to execute the Agreement on behalf of the City.
FINANCIAL STATEMENT: The anticipated cost for Audit Services related to Fiscal Year
1995/96 are $21,400. Adequate funds are available in the current year budget for the portion of the work
which will be completed prior to June 30, 1996.
DESCRIPTION:
At the City Council meeting on February 13, 1996, the City Council
authorized the circulation of a Request For Proposal (RFP) for Audit Services. The City Council also
appointed Mayor Houston and Councilmember Moffatt to serve as a subcommittee to assist with the
selection of an audit firm. The need to conduct this process was necessitated by the fact that the
agreement with the firm of Maze &Associates had expired. Maze &Associates have prepared the audits
for the City of Dublin for the previous nine consecutive years.
Proposals Received
The City received nine responses to the RFP by the March 11, 1996 deadline. The RFP identified both
Basic Reports which would be required by the City each year, as well as Optional Reports which could
vary from year to year. The total responses included one response from a firm that indicated that they
were unable to submit a proposal at this time. Another firm did not provide complete information on all
of the reports required by the City. The following is a breakdown of the remaining seven proposals
including the maximum cost if the City required all reports outlined in the RFP and the effective hourly
rate based upon the reported hours for the Basic Services requested in the RFP:
NAME OF FIRM
Terry E. Krieg, C.P.A.
Maze & Associates*
C.G. Uhlenberg & Co.*
Vavrinek, Trine, Day & Co.*
Caporicci &Larson*
Macias, Gini, & Co.
MAXIMUM COST**
EFFECTIVE HOURLY RATE
$63.00
$62.34
$60.00
$62.68
$46.21
$68.27
Lamorena &Chang $ 30,000 $62.50
* Denotes that the firm was selected to participate in the interview.
** Max. Cost includes optional reports which ma�ay not be required, thus 1995/96 actual cost will be lower.
$ 18,860
$ 19,740
$ 20,700
$ 25,000
$ 25,850
$ 26,490
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COPIES TO:Kevin Pulliam, VTD
ITEM NO.
H/cc-forms/agdastmt.doc
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Selection Process
All of the firms presented information related to the projected hours necessary to complete the Basic ..'--
Services. The Basic Services outlined in the RFP included the following: General Purpose financial
Statements; Management Letter; Measure B Compliance Report; and the Appropriations Limit Report.
The proposals received were very competitive based upon this hourly rate calculation. further, the City
Council Subcommittee believed that the costs associated with the audit services were reasonable in
comparison to the total size of the City financial operations.(Le. 1994/95 total Governmental Fund
Revenues of$17,921,323.)
On April 1 0, 1996 the City Council Subcommittee and the Assistant City Manager conducted interviews
of four firms selected as finalists (see notation on chart above). These firms were selected based upon a
detailed review of all of the submittals to ascertain those which most closely met the needs of the City of
Dublin and appeared to be capable of servicing the City over the five years of the proposed agreement.
The interviews provided an opportunity for the Subcommittee to meet with the representatives who would
be conducting the audit. In addition each of the firms described their approach to the auditing of a public
agency. Based upon this information as well as follow.up reference checks by Staff, the City Council
Subcommittee has recommended the selection of the firm ofVavrinek, Trine, & Day Co.(VTD).
Firm Baclqp-ound
Attached as Exhibit 1 are excerpts from the proposal submitted by VTD. The firm has a local office in
Pleasanton and it recently merged with the firm of Gielow & Davis. Mr. Charles Gielow will serve in the
role of Consulting Partner providing internal quality control on this engagement. The firm of Gielow &
Davis had performed numerous governmental audits in the local area. The Vavrinek firm has extensive
experience perfonning governmental audits and providing consulting services to local agencies. The City
of Dublin currently has an agreement to receive professional accounting services from VTD.
Among the reasons for selecting the firm was the commitment to assign highly experienced personnel to
the audit team. The firm approaches municipal audits with a philosophy that the Engagement Partner, Mr.
Kevin Pulliam, will have a role in preparing the field work. This can expedite the process and reduce the
impact on City Staff. It also assures that the audit is proceeding in an appropriate manner. In addition,
VTD proposed to assign Ms. Gail Smith as the Audit Manager. Ms. Smith has approximately 13 years
experience performing governmental audits. Staff has included language in the proposed agreement to
provide for City approval if the audit team is restructured in future years. The firm has committed to
providing highly skilled personnel in the field to meet the City's expectations for the term of the
agreement.
The RFP required the firm to include in its services the cost associated with preparing various schedules
related to the preparation of a Comprehensive Annual Financial Report (CAFR). Vavrinek, Trine, Day, &
Co. included as part of their basic proposal, an offer to also prepare a City Council Summary of the
CAFR. The intent is to provide summary information which may be more easily understood. and less
technical than a structured accounting report.
Scope of Work To Be Performed
The scope of work proposed is in accordance with the Request For Proposal and the-anticipated needs of
the City. The Scope is included as Exhibit A in the proposed Agreement. The scope was broken into two
segments: Basic Reports and Optional Reports. The Basic Reports will be required each year and they
include the following elements:
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· Independent Auditor's Report including General Purpose Financial Statements;
L -~Management Letter including findings, statements, ortecotnmendations related to internal control,
compliance issues, and/or accounting systems and functions;
· Alameda Transportation Authority Measure B Compliance Audit; and
~. · A required review of the Gann Appropriations Limit Calculation.
.O"'. City Council Audit Summary (proposed by VTD).
The Optional Reports include three special grant related reports and two state mandated annual reports.
The Single Audit Report is required when the City receives more than $300,000 in Federal funds. The
current Dublin Boulevard ISTEA project will necessitate this report for Fiscal Year 1995/96. The
Metropolitan Transportation Commission requires a special report when BicyclelPedestrian projects are
constructed with TDA funds. The City does not have a qualifying project in the current year and therefore
the report will not be necessary. The third special report relates to the expenditureofSB 300
transportation funds. The City does not currently have a project requiring the preparation of this report.
The State Controller requires an annual submittal of two reports. The fIrst report involves the presentation
of the City Financial Transactions in a format only used by the State Controller. For the past two years
Staff has had the Auditors prepare the schedules required by this report. The second report which must be
filed relates to transportation expenditures made by the City including Gas Tax expenditures. Although
Staff has previously prepared this report, it is proposed to have the 1995/96 report prepared by the
Auditors. It is more efficient to devote the Staff time which would normally be expended on this task to
other high priority projects. The expenditure for the preparation of these reports is typically accounted for
in the Administrative Services Budget.
Terms of Engaeement
':'~":;';', Staffhas utilized the standard City Agreement for consultants. The firm has presented a fixed schedule of
.' compensation for each of the. five fiscal years ~overed by th~ Agreement. The total cos~ each.year will
depend on the number of optional reports reqUIred by the City. The costs are presented m the schedule
attached as Exhibit B of the Agreement, and they provide for an average increase of 2.6% per year.
The fIrst year costs are competitive with the cost incurred by the City on identical services obtained as
part of the Fiscal Year 1994/95 Audit. The cost of the services performed by Maze & Associates totaled
$21,206 including: the Basic Reports, Single Audit Report, and the State Controllers Report of Financial
Transactions. The same services under the proposed Agreement with VTD for Fiscal Year 1995/96 will
cost approximately 2.9% less at $20,600. The following is a breakdown of the VTD services
recommended for Fiscal Year 1995/96, which includes the Annual Street Report: ,...
Basic Reports: $ 17,800
Single Audit Report: $ 2,200
State Controllers Report of Financial Transactions: $ 600
State Controllers Annual Street Report: $' 800
TOTAL $ 21,400
The current schedule provides for the firm to conduct interim work prior to June 30, 1996. The costs
associated with this work will be expensed in the current year and it is within the ad.9pted 1995/96 City
Council Professional Services Budget. Staff will incoIporate the cost of services which will be performed
after July 1, 1996 in the Preliminary Fiscal Year 1996/97 Budget.
, .:;'.:::. Recommendation
\'~ased .upon the review by the City Council Subcommittee, it is recommended that the City Council
. authonze the Mayor to execute the proposed agreement.
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Proposal to Provide
Professional Services
City of Dublin
March 7, 1996
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EXCERPTS
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CITY OF DUBUt,i'
MAR 1 1 199G
FINANCE DEPT.
RECEIVED
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vavrinek, Trine, Day, & Co.
EXHIBIT 1
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March 7, 1996
Paul Rankin
Assistant City Manager
City of Dublin
100 Civic Plaza, P.O. Box 2340
Dublin, California 94568
Dear Paul:
We are pleased to respond to th,e request for proposal to provide auditing services for the City of
Dublin, We have addressed each of the specifications, as included in your request for proposal.
We feel that Vavrinek, Trine, Day & Co, will be the best selection for the City of Dublin, This
proposal demonstrates our capability and commitment to serve.
Vavrinek, Trine, Day & Co. has provided governmental auditing services to numerous
governmental agencies since 1948, We currently provide auditing services to over 190
governmental agencies, including several cities, We understand the audit requirements, as
described in the request for proposal, and understand that the City of Dublin desires a timely audit
conducted in a professional manner which meets all audit standards for cities and redevelopment
agencies.
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Vavrinek, Trine, Day & Co. has devoted a substantial amount of time and resources to provide our
<::ities and governmental agencies with quality audits and additional services, We feel this is
demonstrated by our extremely high client retention percentage. We feel this is directly related to
our commitment to provid'e quality service, consistency in staff, and our expertise in governmental
auditing.
Vavrinek, Trine, Day & Co. is a large regional firm employing approximately 85 individuals,
including 65 professionals, We currently have three offices located in Pleasanton, Rancho
Cucamonga, and Fresno. Our staff in the Pleasanton Office will have the primary responsibility in
servicing the City of Dublin. As of November 1, 1995, the firm of Gielow & Davis merged with
our firm in the Pleasanton Office,
Briefly stated, the scope of auditing services will cover, but will not be limited to, the areas which
are defined in the request for proposal. Our staff, which will be assigned to the City of Dublin, are
all experienced governmental auditors. Each will provide a quality audit for the City of Dublin with
no lost time on behalf of the City. Because of our commitment to our city clients, we are confident
that you will become one of our most important clients and, accordingly, will receive the priority "
service you deserve.
1:-112 E, Sllaw ,'\\'('1111(". Slllle ICD
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(20D) 24lHJH71 . 1'/\:\ (20D) 241HJH75
H270 Aspel1 SIn;:CI . nilllcllo 0 lCilJllOllgil, CA !) I 7;lO
P.O, Box 4407 . Hill1cllo ClIC,lrllOl1gil, CA D I 7:!D-"H07
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969057,PRO
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We hope that as you read through this proposal, you recognize the philosophy of our firm which is
to provide each of our clients with exceptional service, quality audits, experience staff, and an audit
approach that will fit with your needs, Thank you for providing us the opportunity to present our
proposal. Should you have any questions, please feel free to call Kevin T. Pulliam at (510) 734-
6600, I am authorized to make representations for Vavrinek, Trine, Day & Co,
Yours very truly,
.~ T. PA...9Q..o
Kevin T. Pulliam ~
ofVAVRINEK, TRINE, DAY & CO.
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Attachments
969057,PRO
Profile of
Vavrinek, Trine,
Day & Co.
Vavrinek, Trine, Day & Co, is a large regional firm with offices
located in Pleasanton, Rancho Cucamonga, We are independent
of the City of Dublin and all component units of the City of Dublin,
as defined by generally accepted auditing standards and the U.S.
General Accounting Office's Government Auditing Standards
(1988). We currently have 13 partners with a total staff of 85,
including 65 professionals. Our partners devote a majority of
their time in managing governmental audits and consulting
engagements for local governmental agencies, Other areas
of our practice include bank auditing and consulting, commercial
auditing and consulting, tax, and bookkeeping services.
.
Since the inception of our firm, Vavrinek, Trine, Day & Co, has
specialized in governmental and nonprofit accounting and
auditing. We currently provide auditing services to over 190
governmental agencies. Because the area of governmental
auditing is an extremely important part of our practice, the
majority of our professionals are experienced governmental
auditors.
The audit team which will be assigned to complete the City of
Dublin audit will be from our Pleasanton Office. The Pleasanton
Office currently has a professional staff of 13 and a clerical staff
of four. The firm of Gielow & Davis, an accountancy
corporation located in Pleasanton, California, recently
merged with Vavrinek, Trine, Day & Co. The firm of Gielow &
Davis was a midsize local firm providing a full range of financial
services, including governmental and nonprofit accounting. With
the addition of the firm of .Gielow & Davis, our Pleasanton Office
is able to offer an extensive level of experience and technical
knowledge of the special needs and requirements of
governmental entities and, in particular, cities.
The audit team, which will be assigned to complete the 'City of
Dublin audit will be primarily from our Pleasanton Office Our
staff has a unique blend of experience, technical knowledge,
and management expertise which can only be found in an
organization which has provided governmental agency
audits for its clients since 1948. Our staff is also trained and ;s
proficient with the use of computers. Computers are an important
part of conducting our audits; all partners, managers, supervisors,
and seniors are provided with a laptop computer for on-site use at
the audit. We feel this is an important aspect of our practice
which enables us to provide our clients with the highest quality
product available.
Vavrinek, Trine, Day, & Co.
969057,PRO
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Profile of
Vavrinek, Trine,
Day & Co.,
Continued
Our
Commitment to
Quality
Vavrinek, Trine, Day & Co. has performed audits of governmental
agencies for several years, In addition to the auditing services,
Vavrinek, Trine, Day & Co. offers additional services which
include, but are not limited to, preparation and review of
governmental agency budgets, assistance in cash flow analysis,
review of long-term and short-term debt financing agreements,
review of the electronic data processing requirements, and review
of internal control procedures.
Vavrinek, Trine, Day & Co. also offers Electronic Data
Processing Audits which cover all general controls
regarding the data processing functions. This includes
evaluation of security. backup and recovery procedures, system
development, and program maintenance. Our reviews include
significant accounting applications, including accounts payable,
purchasing, inventory, payroll, personnel, etc. All areas are
reviewed to determine if adequate controls exist to ensure that
information, which is stored and processed, is complete,
authorized, and accurate, Our EDP Auditor has several years
experience in data processing and EDP auditing. He is also
familiar with a wide range of software and hardware, including
those that are particularly suitable for governmental agencies.
Vavrinek, Trine, Day & Co, is licensed to practice public
accounting in the State of California and has complied with all
applicable California Board of Accountancy requirements. In
addition, we have had no regulatory actions which have been
taken against our firm, and we meet the independence
requirement of the General Accounting Office,
For several years, Vavrinek, Trine, Day & Co. has met the
SEC Private Companies Practice Section requirements by
having its accounting and auditing practice be subject to the
scrutiny of a peer review program. The peer review program is
very important to us because we feel that our aim is to provide
our partners and professional staff with the knowledge and talent
which is necessary to provide exceptional services to.our clients.
We also require that the peer review performed be in accordance
with the American Institute of Certified Public Accountants
(AI CPA) standards to allow us to be a member of the Private
Companies Practice Section of the AICPA.
vavrinek, nine, Day, & Co.
969057,PRO
Our
Commitment to
Quality,
Continued
The Vavrinek,
Trine, Day & Co.
Audit Approach
969057,PRO
To meet this requirement, Vavrinek, Trine, Day & Co. belongs
to the Western Association of Accounting Firms (WAAF) for
our peer review program. As a member of this association, our
audit procedures, working papers, and overall firm quality is
examined on a regular basis by another CPA firm, As part of the
quality control review, all aspects of the Firm are examined,
including our commitment to extensive governmental training for
all professional staff, All professional staff receive at least 24
hours per year of continuing professional education (CPE)
relating to governmental auditing and accounting.
As evidenced by our commitment to excellence, Vavrinek, Trine,
Day & Co, will provide the City of Dublin with a quality audit. You
will also know that our commitment to quality is reviewed by
another CPA firm in accordance with strict AICPA standards.
This provides you with the assurance that only well trained
professional staff will conduct the audit for the City of Dublin. We
are proud that Vavrinek, Trine, Day & Co. has received an
unqualified opinion on the quality of its accounting and auditing
practices. A copy of this opinion is included in appendix v,
Our audit approach differs from that of other CPA firms. 'We
believe that partner and manager involvement is an
extremely important aspect of the audit process. To provide
the City Council and the City of Dublin with the assurance
that we will provide an outstanding product for the City, the
partner in charge of the engagement will spend a great deal
of time in the field working on the City of Dublin's audit.
Thus, they will be available to answer client and staff questions in
a timely manner. This will also ensure that the audit will be
conducted in an efficient and effective manner with the least
amount of interruptions for City staff. Partner and manager
involvement is important to allow the client to have the ability to
discuss potential findings and recommendations with the partner
and manager rather than waiting for a draft copy of the
management letter.
An important aspect of our audit includes audit/progress
report meetings with the City. We feel these meetings are very
important because they allow us to properly plan the audit and
allow the City to become comfortable with the audit approach.
These progress reports provide for communication on an on-
going basis to ensure all aspects of the audit are appropriately
addressed.
Vavrinek, Trine, Day, & Co.
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The Vavrinek,
Trine, Day & Co.
Audit Approach,
Continued
To meet the requirements as specified in the request for
proposal, we will provide the required reports in accordance with
the outline provided below. The audit dates will be arranged at a
mutually beneficial time and will be coordinated with City staff to
ensure all reporting timelines are met. We assume the City's
ledgers will be closed by September 15,
Reoort
City CAFR
Gann Limit
Single Audit (optional)
Measure "8" Compliance
MTC (optional)
SL TPP (optional)
Draft Copy
Reviewed
11/01/96
11/15/96
11/15/96
11/15/96
11/15/96
11/15/96
Report
Due Date
11/20/96
12/01/96 .
12/01/96
12/01/96
12/01/96
12/01/96
It is our intention to utilize the City's staff as little as possible so
as to minimize the disruption of the office routine. Although, as
part of the audit process, we would request that assistance be
provided by the City in certain areas include the following:
· Upon selection of our internal control samples, we would ask
that the City staff pull the appropriate supporting
documentation.
· Provide assistance for the typing of confirmation letters.
· Provide assistance in becoming familiar with the internal
control systems in use by the City.
· Making available or providing copies of accounts receivable,
payable detail, journal entries, and other appropriate
accounting records.
We feel, based upon our knowledge of governmental
auditing, that the interruptions of City staff can be kept to a
minimum. Providing assistance in the above areas will help us
provide the City with an efficient audit with few interruptions.
vavrinek, Trine, Day, & Co.
969057,PRO
Summary of
Vavrinek, Trine,
Day & Co.
Qualifications
969Q57,PRO
The audit team assigned to the City of Dublin audit has the ability
to meet all of the expectations of the City, The team has worked
together on numerous governmental audits and will provide the
level of service which is deserved by the City. We feel the
technical qualifications of the personnel selected for this audit and
the qualifications of the Firm allow us to provide the City with a
comprehensive audit of the highest quality. Since the quality of
the audit is directly dependent on the professional staff assigned
to the engagement, we propose the following audit team for the
City of Dublin. Resumes can be found in appendix i for each
member of the audit team.
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· Engaaement Partner
Mr. Kevin Pulliam has been with Vavrinek, Trine, Day & Co.
for 10 years. Mr. Pulliam is an audit partner with the Firm and
has specialized in governmental auditing for several years.
Mr. Pulliam also provides in-house training for governmental
auditing and assists in updating the governmental audit
programs in use by the Firm. Mr. Pulliam will be assigned to
the audit and will be on-site during the majority of field work to
coordinate the audit and to ensure that all of the City Council's
requirements are fulfilled. Mr. Pulliam is currently the
engagement partner for the majority of the city audits
conducted by the Firm.
· Consultant
Mr. Charles Gielow founded the firm of Gielow & Davis which
recently merged with Vavrinek, Trine, Day & Co. Mr. Gielow
has extensive experience in audits of cities and governmental
agencies. Mr. Gielow developed an auditing practice in the
Greater Bay Area which emphasized quality and client
satisfaction. Mr. Gielow works to ensure internal quality
control of our services and the upmost in client relations,
· Audit Manaaers
Ms. Gail Smith is a graduate of Brigham Young University,
Provo, Utah, and has been'with Gielow & Davis for 12 years
prior to the merger with Vavrinek, Trine, Day & Co. She has
been manager of several governmental audits, including the
City of Pleasanton, City of San Ramon, East Bay Dischargers
Authority, City of Brentwood, City of Patterson, Center Marin
Sanitary Agency, Delta Diablo Sanitary District along with
other governmental agencies.
Vavrinek, nine, Day, & Co. _____'
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Summary of
Vavrinek, Trine,
Day & Co.
Qualifications,
Continued
Federal and
State Grant
Programs/
Single Audit
· Audit Managers, Continued
Mr. A. J. Major is a graduate of California State University,
Hayward. He has been with Gielow & Davis for seven years
prior to the merger with Vavrinek. Trine. Day & Co. He has
worked as a manager on the Housing Authority of the City of
Pleasanton. City of Brentwood, Alameda Waste Management,
East Bay Dischargers Authority I San Rafael Sanitary District,
Central Marin Sanitary District, and Delta Diablo Sanitary
District audits in addition to numerous other governmental
agency audits.
· EDP Audit Manager
Mr, Vince Turner will be assigned to the City of Dublin audit for
the review of the data processing systems, Last year. Mr.
Turner completed EDP audits on the Cities of Redlands,
Brentwood, and Taft. '
· Senior Accountants
Terri Montgomery and Mia White have been audit seniors on
several governmental audits for Vavrinek. Trine, Day & Co.
Both have experience on city audits. Our seniors will assist in
the planning of the audit and supervising the staff accountants
assigned to the City of Dublin.
· Staff Accountants
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The staff accountants which will be assigned to the City of
Dublin audit will be designated at a later date. It is important to
note that we make an effort to provide each client with
consistent staff whenever possible. as requested in the request
for proposal.
Vavrinek, Trine, Day & Co. has extensive experience in auditing
governmental agencies with federal and state grants. Our vast
experience with OMB Circular A-128 and the Federal Single Audit
Act of 1984 will enable us to provide the greatest benefit to the
City of Dublin for the compliance auditing. Our experience
includes auditing various programs, including FEMA, JTPA.
CDBE. FAA, OCJP. as well as other grants, and issuing the
appropriate opinions for each report.
Vavrinek, T'rine, Day, & Co.
969057.PRO
Bond Reporting
Requirements
Our
Governmental
Auditing
Commitment
969057,PRO
Our firm has assisted several clients with bond reporting
requirements. Although it is common to use bond consultants
when considering bond issuances, we can be available to review
documents and to discuss the specific debt financing, When
requested, Vavrinek, Trine, Day & Co, issues consent letters for
bond issuances.
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Vavrinek, Trine, Day & Co. has, since its inception in 1948, had a
very strong commitment to governmental accounting,
Governmental auditing is a significant part of our practice and,
accordingly, we devote substantial time and resources to be the
best in the industry. All of our accountants receive at least 24
hours per year of governmental accounting CPE, and the majority
of our partners spend a great deal of time with governmental
clients,
In addition, we are active in the California Society of Municipal
Finance Officers Association and attend training seminars
provided by the CSMFO, the League of California Cities, and the
California Redevelopment Association on a regular basis, We
believe that, due to our commitment to governmental accounting,
we will be able to provide the City of Dublin with updates of new
state and national issues affecting municipal finance standards
and trends, including changes in federal/state grant program
accounting and reporting requirements. 80th Mr. Pulliam and Mr.
Aguilar are CAFR reviewers for the CSMFO State Award
Program.
Vavrinek, Trine, Day, & Co.
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Resumes of Key Personnel
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Vavrinek, Trine, Day, & Co.
969057,PRO
*VTD & co. AUDIT TEAM
KEVIN PULLIAM, CPA
Audit Partner
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Firm Position
Audit Partner
Vavrinek, Trine, Day & Co" CPA's
Professional
Experience
August 1986 to Present, 10 years
Professional
Background
Supervised audits for numerous governmental agencies,
including the majority of cities audited by the firm, redevelopment
agel'1cies, special assessment districts, joint powers agreements
(JPA's), county office audits, school districts, and performed
various management services functions over the past 10 years.
Also has supervised staff on those audits for over nine years.
Appointed Treasurer for the Water Facilities Authority in Upland,
California.
Responsible for staff training in the area of governmental
auditing.
Developed and updated governmental audit programs and
checklists used by the firm for the municipal practice.
.'
. Responsible for several service work assignments which
included: assisted in year-end closing; prepared year-end
summaries and financial statements for certificate of participation
issuances; federal and state grant reviews; and forecast reports
for long~term debt issuances. '
Provided in-house training for federal and state grants, federal
and state compliance, and governmental auditing.
Professional
Affiliations
American Institute of Certified Public Accountants
California State Society of Certified Public Accountants
California society of Municipal Finance Officers
Education
Bachelor of Science - Accounting ~ 1986
California State Polytechnic University, San Luis Obispo
Continuing
Professional
Education '
Has attended numerous governmental and other professional
continuing education courses throughout eacD year, including
CSMFO seminars and Loyola Marymount University
Redevelopment seminars.
"
'''The CPA Firm you can trustlor Personalized Service"
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.* VTD & co. AUDIT TEAM
CHARLES H. GIELOW, JR., CPA
Consultant
Firm Position
Length of Service
Experience
Professional
Affiliations
Current Offices
Education
Consultant
Vavrinek, Trine, Day & Co., CPA's
February 1972 to Present
Provided accounting, tax, and management consulting services to
clients, These services include auditing, compilation, and review
accounting services, compliance, and planning income tax . ,
services, retirement planning, including estate and gift tax planning,
and a wide array of management consulting services, including
assisting clients with acquisitions, disposition, and mergers of
businesses, financing arrangements and negotiations with lenders,
personnel recruitment and organization, and general business
strategic planning,
Also provided litigation support services, including engagements
related to compliance with professional standards, accounting
tracings, business valuation for civil and estate matters, including
corporation code section 2000 business valuations, automobile
dealership valuations in connection with federal estate taxation,
accounting, and income tax services related to family law matters
and business dispositions and reorganizations under Chapter 11 of
the U,S. Bankruptcy Code,
Engaged by major commercial banks as an expert in business
reorganizations and has developed reorganization plans for
voluntary and involuntary reorganizations,
California Association of School Business Officials,
American Institute of Certified Public Accountants
Past President - California Society of Certified Public Accountants
Member AICPA Council-1993-1996
Chair Government Relations Committee - CSCPA
President, Board of Directors - California Society of CPA's
Political Action Committee .
Member of the State of Litigation Support CIMS Steering
Committee - CSCPA .
Undergraduate - University of California, Berkeley, CA
Undergraduate - Armstrong Business College, Berkeley, CA
"The CPA Firm you can trust for Personalized Service"
* VTD & co. AUDIT TEAM
GAIL SMITH, CPA
Audit Manager
Firm Position
Audit Manager
Vavrinek, Trine, Day & Co., CPA's
Length of Service
April 1983 to Present
Experience
Served as audit manager on various audit engagements,
including nonprofit, governmental, and for-profit engagements.
Performed compliance in accordance with OMB 128 and 133.
Prepares income tax reporting for nonprofit and for-profit
corporations along with individual and partnership tax return
preparation. .
Professional
Affiliations
American Society of Certified Public Accountants
East Bay Chapter of Certified Public Accountants
Education
Bache/or of Science - Accounting - 1981
Brigham Young University, Provo, Utah
Continuing
Education
Attended various continuing education courses which met
requirements of A/CPA-SECPS, California State Society of CPA's ,I
and the provisions of Office of Management and Budget Circular
A-133.
"The CPA Firm yoti can trust for Personalized Service"
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,*VTD & co. AUDIT TEAM
VINCE TURNER
EDP Auditor
Firm Position
EDP Auditor
Vavrinek, Trine, Day & Co.. CPA's
Professional
Experience
July 1994 to Present, 15 years
Professional
Background
Performed systems development, data center, applications, and
security reviews in mainframe, midrange, and microcomputer
environments,
Conducted management services including feasibility studies and
special projects for data processing management.
Performed audit testing of general and application controls to provide
reasonable assurance that the recording, processing, reporting, and
safety of data are properly performed,
Conducted reviews of accounting software packages and computer
applications prior to management adoption.
Previous
Positions
EDP Auditor, TICOR
Performed audit functions in the nation's largest title insurance and
realty tax service corporation. Conducted internal audits and quality
assurance reviews of all aspects of the company's data processing
operations, including new systems development and operational audits.
Information Systems Training Administrator, Coopers and Lybrand
Responsible for information systems education of more than a
thousand auditors, consultants, and partners in eight western offices
and for the transition of audit work onto automated platforms.
Curriculum included accounting and audit software, automated financial
analysis, collaborative computing, and office automation.
Hardware!
Software
Novell networks, IBM 3081, DEC VAY, IBM 5/38, and personal
computers from 8088's to Pentium notebooks.
Educational
Experience
Former elected trustee of the Ventura County Community College
District. Part-time faculty for undergraduate and graduate information
systems courses.
Education
Masters of Science in Business Administration with emphasis in EDP
Auditing
California State Polytechnic University, Pomona
Bachelor of Art ..
Stanford University
"The CPA Firm you can trust for Personalized Service"
Audit Scope
969057.PRO
We will conduct a comprehensive financial audit of the
General Purpose Financial Statements, as detailed in the
request for proposal. This will include an audit of all fund types
and account groups for the City of Dublin for the years ending
June 30. 1996. 1997. 1998. 1999. and 2000, These audits will be
performed in accordance with generally accepted auditing
standards, the standards set forth for financial audits in the
General Accounting Office's (GAD) Governmental Auditing
Standards (1988), the provisions of the Federal Single Audit Act
of 1984, and the U.S. Office of Management and Budget (OMB)
Circular A-128, Audits of State and Local Governments. The
audit scope and opinion will be in accordance with current AICPA
Audit Guides (SOP 92-7, Audits of State and Local Governmental
Entities Receiving Federal Financial Assistance). Copies of the
City of Dublin audit report will be delivered to the City no
later than the dates specified in the request for proposal
each year.
..
We will also conduct a compliance audit of the Alameda County
Transportation Authority local distribution of Measure "B" funds
and the State required appropriation ("Gann") limit. We will issue
the relevant reports and opinions on these compliance measures,
If necessary, we will also conduct for the years ending
June 30, 1996, 1997, 1998, 1999, and 2000, a single audit of
the City of Dublin in accordance with the provisions in OMS
Circular A.128 and the Single Audit Act of 1984, The Single
Audit will cover all appropriate federal grants received by the City
of Dublin. We intend on issuing reports which consist of the
appropriate audit opinions. These reports include the
supplemental schedule of federal financial activity, the report on
the .internal control structure, the report on compliance with laws
and regulations. the report on federal compliance with general
requirements. the report on internal control for federal programs,
the report on federal compliance with requirements applicable
major or nonmajor programs, and the report on compliance with
specific requirements applicable to major programs, if applicable.
,',
Vavrinek, Trine, Day, & Co. .~:.
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Audit Scope,
Continued
969057,PRO
Vavrinek, Trine, Day & Co. will also issue a management letter, if
necessary, for the items encountered during the audit. If areas of
concern are encountered during the audit, these will be brought
to the attention of management when encountered. We believe
in open discussions with management to ensure that all potential
findings are treated appropriately. In addition, we will provide
the City of Dublin with a City Council audit summary, This
document is a tool developed by Vavrinek, Trine, Day & Co. to
assist in presentation of the audit reports to the City Council. We
have found this to be a valuable tool in the presentation of city
audits. A sample copy is included in appendix ii.
Vavrinek, Trine, Day, & Co.
, ,
Audit Work Plan Partner - Kevin PulliamL
Audit Manager - Gail Smith
Senior Accountants - Mia White or Terry Montgomery
Staff Accountants - To be assigned later
Clerical- To be assigned later
Staff Senior Audit
Planning and Interim Work Clerical Accountant Accountant Manager Partner
Review policies/internal
controls 4
Prepare audit programs 4
Review prior year
work papers 2 2
Document internal controls 4 2
City council 6
Confirmations 8 2
Disbursements 4 4
Payroll 4 4
Cash receipts 8
Cash counts/inventory 8
Measure "8" 8
EDP review 8
Revise audit programs 2
Draft prelim findings 2 2
Interim Totals 0 16 42 18 12
Vavrinek, Trine, Day, & Co.
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Audit Work Plan,
Continued
Partner - Kevin Pulliam/,
Audit Manager - Gail Smith
Senior Accountants - Mia White or Terry Montgomery
Staff Accountants - To be assigned later
Clerical - To be assigned later
Staff Senior Audit
Year-End Field Work Clerical Accountant Accountant Manager Partner
Cashlinvestments 8 2 2
Accounts receivable 8 2
Accounts payable 8 2
Due toldue from 8 2
Other assets 8 2
Other liabilities 4 8 2 2
Long-term debUleases 6 2
.:: Other compliance 4
Fund equity 4 4
Trial balances/AJE's 8 2 2
Analytical review 6 2
Measure "8" 12
Trust funds 4 2
Note disclosures 6 4 2
Management letter 4 4
Year-End Totals 0 40 52 34 20
.
Vavrinek, Trine, Day, & Co.
Audit Work Plan,
Continued
Partner - Kevin Pulliam.
Audit Manager - Gail Smith l
Senior Accountants - Mia White or Terry Montgomery
Staff Accountants - To be assigned later
Clerical- To be assigned later
Staff Senior Audit
Reports Clerical Accountant Accountant Manager Partner
City CAFR 8 6 2 2
Measure "B" 8 4 2
Other reports 6 2 2
Meetings 4 4
Total Hours 22 0 12 6 10
Grand Total Hours 22 56 106 58 42
vavrinek, Trine, Day, & Co.
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City Council Audit Summary
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Vavrinek, Trine, Day, & Co.
969057,PRQ
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\\"'SU"III :\s'-Ol.I'i.llhlll ..f '\('("Jllllliltg: l;illllS
March 7, 1996
City of
To the Honorable Mayor and City Council Members
City of I, California
Dear City Council Members:
We performed the audit of the City utilizing the following audit objectives and methods,
Objectives
Audit Method
o Determine whether the City's financial
statements are presented fairly in accordance
with generally accepted accounting principles,
o Determine whether City administered Federal
grants in accordance with Federal laws and
various regulations.
o Perform a study and evaluation of internal
controls to form the basis for expressing an
opinion on items 1 and 2 previously listed, This
study and evaluation allows for the opportunity
to provide findings and recommendations for
improvement of the City's systems, procedures,
and records,
The audit objectives were met using the following
audit procedures:
o We documented the controls over the various
financial functions such as payroll, receipts,
disbursements, etc., through internal control
observations and testing.
.':-
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o We tested the controls as documented by
selecting transactions and verifying that the
controls are actually working as they should be,
o We performed additional testing as needed
based upon the evaluation of controls and
verified the accuracy of financial information
provided us by the City,
I :ll:! E, SII,I\\' l\\'('llLlC', Sllite 103
"/'('''';/1<), C,\ 'n711)
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.,:
8270 ASIWIl Slreel . 1l<lllCllO CllCillllOllgil, CA !)I730
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('1'1'111',',1,11' I' II'./' 1'111"/11,1, '1-1 ': I
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(" ,II I, ',":,/ 1.1,1 il,. I f,,': I', II I) i :'/ ',1.11
.
City of Dublin
To'the Honorable Mayor and City Council Members
Page 2
Results
.j The City's financial statements are fairly presented (page 1).
.j The City is in compliance with Federal and State laws and regulations as specified in our audit report.
.j Present a management letter, if necessary, that contains areas where the c;ity may improve systems and
procedures,
.j Graphs of certain City financial information are presented on the following three pages of this report,
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Yours very truly,
Kevin 1. Pulliam
ofVAVRINEK, TRINE, DAY & CO,
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Our Governmental Clients
Vavrinek, Trine, Day, & Co.
969057,PRO
'-',
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Our
Governmental
Clients
Vavrinek, Trine, Day & Co, has several governmental agency
audits and is proud that we have had no client turnover for the
.cities we audit. We feel this is due to our commitment to each of
our city clients. Any of our clients may be contacted for
references. We have included these references in appendix iv.
Some of the local govemmental agencies, which we have audited
in the past year, include the following:
City of Malibu: We have audited the City of Malibu for the fiscal
year ending June 30, 1995. Our audit of the City included the
issuance of a Single Audit Report with the primary emphasis on
FEMA funds which were in excess of $3 million, We have been
awarded a contract to provide auditing services for the City of
Malibu for the 1995-96 and 1996-97 fiscal years.
City of Brentwood: As Vavrinek, Trine, Day & Co. we have
audited the City of Brentwood and the Brentwood Redevelopment
Agency for the 1994-95 fiscal year. As Gielow & Davis, we
audited the City of Brentwood and its Redevelopment Agency
from June 3D, 1990 through 1994. The City of Brentwood audit
included the City's enterprise funds for the sewer and water
funds. The engagement included the issuance of the Single Audit
Report and a Transportation Fund Report. We were recently
awarded a contract for the 1995-96 and 1996-97 fiscal years.
City of Patterson: As Gielow & Davis, we audited the City of
Patterson for fiscal years ending June 3D, 1989 through 1995.
We have an engagement letter to perform the audit for fiscal year
1995-96.
City of Yucaipa: We have audited the City of Yucaipa for the
June 3D, 1993, 1994, and 1995 fiscal years. We have audited
the City of Yucaipa Redevelopment Agency for the June 1991-92
through the 1994-95 fiscal years. In addition to the audit, we
have provided the City assistance in preparing the State
Controller's Report. We have been awarded a contract to provide
auditing services for the City of Yucaipa and the City of Yucaipa
Redevelopment Agency for the 1995-96 and 1996-97 fiscal years.
Vavrinek, Trine, Day, & Co.
969057,PRO
Our
Governmental
Clients,
Continued
969057,PRO
City of Taft: We were awarded a three-year contract for the
fiscal years 1993-94 through 1995-96, We have completed the
audit for the City of Taft for the fiscal years ending June 3D, 1994
and 1995. Our audit for the City of Taft included the City audit
report, the Single Audit Report, and separate component unit
reports for the Wastewater Treatment Facility and the
Redevelopment Agency. In addition to the audit, this past year
we prepared the City's Annual Street Report, the Redevelopment
Agency's State Controller's Report, and the Statement of
Indebtedness.
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City of Calimesa: We have audited the City of Calimesa and the
Calimesa Redevelopment Agency for the fiscal year ending
June 30, 1995. The engagement included the issuance of the
Single Audit Report. We also prepared the Annual Street Report,
the City and Redevelopment's State Controller's Reports, and
Statement of Indebtedness. We were recently awarded an audit
contract for the City of Calimesa and its Redevelopment Agency
for the fiscal years 1995-96 through 1997-98.
City of Redlands: We have audited the City of Redlands for the
fiscal year ending June 30, 1995. The audit for the City included
the audit of the City's enterprise funds which included the water
utility, landfill, sewer, airport, cemetery, and citrus groves funds,
In addition, a Single Audit Report was issued which covered
FEMA, CDBG, and other federal funds, As part of our audit, we
also reviewed compliance issues relating to development impact
fees and the landfill operations.
Town of Ross: We have audited the Town of Ross for the
June 30, 1994 and 1995 fiscal years, The audit of the Town of ..
Ross included the general purpose financial statements and the
management letter.
In addition to our auditing services to cities, we have provided
consulting and accounting services to the following agencies:
City of Dublin: We provide on-going financial management and
accounting services and essentially serve as a part-time finance
director. We provide assistance with developer agreements,
assessment districts, monthly accounting, cash management
budgeting, bonded debt, and help direct the financial operations
of the City. -
Vavrinek, Trine, Day, & Co.
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Our
Governmental
Clients,
Continued
City of lake Forest: On-going investment review services and
assistance with investment oversight and investment policies,
City of Colton: Review of federal asset forfeiture funds and filing
of the Annual Certification Report.
Water Facilities Authority: We are the appointed treasurer and
provide monthly accounting services which include the
maintenance of the general ledger, preparation of financial
statements, monthly accounting, and bank reconciliations.
San Bernardino County Transportation Authority: We
performed an investment review of the Agency's $128 million
investment portfolio. The review included, but was not limited to
analyzing the investment policy, bond indentures, portfolio
reports, transaction records, and investment contracts,
Vavrinek, Trine, Day, & Co.
969057.PRO
STANDARD CONTRACTUAL SERVICES AGREEMENT
THIS AGREEMENT is made at Dublin, California, as of April 23, 1996 by and between the CITY OF
DUBLIN, a municipal corporation ("CITY"), and Vavrinek, Trine, Day & Co. Certified Public Accountants.,
("CONTRACTOR"), who agree as follows: .'
1. SERVICES. Subject to the terms and conditions set forth in this Agreement, CONTRACTOR shall provide
to CITY the services described in Exhibit A. CONTRACTOR shall provide said services at the time, place and
in the manner specified in Exhibit A.
2. PAYMENT. CITY shall pay CONTRACTOR for services rendered pursuant to this Agreement at the time
and in the manner set forth in Exhibit B. The payments specified in Exhibit B shall be the only payments to be
made to CONTRACTOR for services rendered pursuant to this Agreement. CONTRACTOR shall submit all
billings for said services to CITY in the manner specified in Exhibit B; or, if no manner be specified in Exhibit
B, then according to the usual and customary procedures and practices which CONTRACTOR uses for billing
clients similar to CITY.
3. FACILITIES AND EQUIPMENT. Except as set forth in Exhibit C, CONTRACTOR shall, at its sole cost
and expense, furnish all facilities and equipment which may be required for furnishing services pursuant to this
Agreement. CITY shall furnish to CONTRACTOR only the facilities and equipment listed in Exhibit C
according to the terms and conditions set forth in Exhibit C.
4. GENERAL PROVISIONS. The general provisions set forth in Exhibit D are part of this Agreement. In the
event of any inconsistency between said general provisions and any other terms or conditions of this
Agreement, the other term or condition shall control insofar as it is inconsistent with the general provisions.
5. EXHIBITS. All exhibits referred to herein are attached hereto and are by this reference incorporated herein.:-
6. CONTRACT ADMTNISTRA TION. This Agreement shall be administered by Paul S. Rankin, Assistant
City Manager 1 Administrative Services Director ("ADMINISTRATOR"). All correspondence shall be directed
to or through the ADMINISTRATOR or his or her designee.
7. NOTICES.
Any written notice to CONTRACTOR shall be sent to:
Mr. Kevin T. Pulliam, Partner Vavrinek, Trine, Day, & Co. Post Office Box 4407
Rancho Cucamonga California 91729-4407
Any written notice to CITY shall be sent to:
Richard C. Ambrose, City Manager City of Dublin Post Office Box 2340
Dublin, California 94568
"
Executed as of the day first above stated:
CITY OF DUBLIN
a municipal corporation
Attest:
Kay Keck, City Clerk
By
Guy S. Houston, Mayor
FOR CONTRACTOR:
By
Kevin T. Pulliam, Partner
Vavrinek, Trine, Day, & Co., c.P.A.'sEXHIBIT 2
.
I.
.
..,
Exhibit A - Scope of Services
General
This agreement shall cover the required reports for the fiscal years ending June 30, 1996, 1997, 1998,
1999,2000. These audits are to be performed in accordance with the provisions contained in this
Exhibit and the proposal submitted by Vavrinek Trine, Day, & Co. proposal to the City of Dublin dated
March 7, 1996. Further, in accordance with AICPA procedures the City Staff may be required to
execute an Engagement Letter, specifying terms and scope of the audit.
The City of Dublin desires the auditor to express an opinion on the fair presentation of its general
pUtpose financial statements in conformity with generally accepted accounting principles. The audit
shall include an examination of all funds and account groups of the City of Dublin by Certified Public
Accountants duly authorized to practice as such by the State of California. The auditor shall also be
responsible for performing certain limited procedures involving required supplementary information
required by the Governmental Accounting Standards Board, as mandated by generally accepted auditing
standards.
Auditor shall prepare all trial balance worksheets and summary schedules including balance sheets,
revenues, expenditures, and changes in fund balance for each fund of the City. Data source for the
schedules will be the computerized financial statements supplied by the City. Report preparation and
necessary editing shall be the responsibility of the Auditor.
Auditor shall submit for management review a Draft of all reports. The final reports are subject to
review by an ad-hoc City Council subcommittee. Auditor shall incorporate as part of the basic proposal
meeting time with Staff and the committee for the pUtpose of discussing the audit or management letter
and its conclusions.
II. Basic Reports To Be Issued
Following the completion of the audit of the fiscal year's fmancial statements, the auditor shall issue the
following:
A. Independent Auditor's Report - A report on the fair presentation of the fmancial statements in
conformity with generally accepted accounting principles, based upon an audit of the General
PUtpose Financial Statements. The combining fund statements and schedules are not a required part
of the General PUtpose Financial Statements. However, the auditor is to provide an "in-relation-to"
report on the combining and individual fund fmancial statements and supporting schedules. The
information presented shall be based on the auditing procedures applied during the audit of the
General PUtpose Financial Statements. The City will prepare the statistical section of the report,
which is not required to be audited. The Auditor shall review and provide suggestions on the items
incorporated in the Statistical Section, to assure compliance with the CAFR recognition programs.
The Auditor shall also prepare and deliver a City Council Summary of the Audit Report.
.
B.
A Management Letter which includes findings, statements, observations, opinions, comments, or
recommendations related to: (1) Systems of internal control based upon the auditors'
understanding of the control structure and assessment of control risk. (2) Compliance with
applicable laws and regulations. (3) Accounting systems, functions, procedures and processes
especially with regard to cost effectiveness.
C. Alameda County Transportation Authority - Measure B Local Distribution Compliance Audit.
D. Agreed Upon Procedures Performed Related to the calculation of the Gann Appropriations Limitation.
III. Additional Reports Which May Be Requested Annually At City Option
Due to the fluctuation in the receipt of special grant funds the need for some reports will be based upon whether
the City meets the audit threshold for the specific program, and/or whether the City received any funds under
the program. Also, depending on Staff availability the City may elect to prepare the State Controllers Report .
Financial Transactions and/or Annual Street Report.
A. Single Audit Report of Federal Financial Assistance (Note: Based upon receipt oflSTEA Funds in Fiscal
Year 1995196 this report will be included with the initial audit.)
B. Metropolitan Transportation Commission (MTC) Bicycle 1 Pedestrian Projects in accordance with the
Transportation Development Act (WA).
C. -State-Local Transportation Partnership Program as administered by the State of California Department of
Transportation.
D. Annual Report of Financial Transactions to State Controller, must be prepared and available for City Staff
review 5 days prior to the statutory submittal deadline.
E. Annual Street Report to the State Controller, must be prepared and available for City Staff review 5 days
prior to the statutory submittal deadline.
IV. Supplemental Reports 1 Studies
v.
B)
C)
D)
E)
F)
G)
Reports on such other audits or agreed~upon procedures as may be agreed to in writing and as stated in a .'
supplemental audit agreement. The scope of the study and associated costs shall be approved by City prio <:>
to beginning work. .
A)
Number of Copies of Report To Be Produced
Annual Financial Report ~ Unless otherwise directed by the City at the time of issuance of the Final
Report, City shall be responsible for reproduction of Final Report and its incoIporation in the
CAFR. City may request fmn letterhead to incorporate Independent Auditor's Report.
Auditor to provide: 1 Unbound Master and 3 bound reports.
A.l - City Council Summary (Content to be discussed with City) - 20 copies
Management Letter - 15 bound copies
Measure B Compliance Audit. 10 original copies
Gann Limit - 10 original copies
Single Audit, if applicable 15 bound reports.
MTC Audit, if applicable 15 bound reports.
SL TPP, if applicable 15 bound reports.
VI. Auditing Standards To Be Followed
The audit shall be performed in accordance with generally accepted auditing standards as set forth by
the AICPA "Audits of State and Local Governmental Units" and publications of the Governmental
Accounting Standards Board. As applicable, the provisions of the Single Audit Act of 1984 and the .
provisions ofU. S. Office of Management and Budget (OMB) Circular A-128, Audits o/State and Loca ,,:,
Governments shall also be addressed. . .
VII. Special Considerations
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.A.
B.
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VIII.
IX.
1.
The City of Dublin has been awarded the Govenunent Finance Officers Association of the United
States and Canada (GFOA) Certificate of Achievement for Excellence in Financial Reporting for six
consecutive years. The City of Dublin anticipates that it will send its comprehensive annual
fmancial report to the Govenunent Finance Officers Association of the United States and Canada
(GFOA) for review in their Certificate of Achievement for Excellence in Financial Reporting
program. The format of reports shall allow the City to meet the requirements of that program. This
also requires that the Auditor ensure that the audit report and fmancial statements are complete in
time for submission to GFOA. The Auditor shall also assist with developing responses to any
comments or deficiencies noted by GFOA.
2.
The schedule of federal financial assistance and related auditor's report, as well as the reports on the
internal controls and compliance, are not to be included in the comprehensive annual financial
report, but are to be issued separately.
3.
Due to potential development projects, the City of Dublin currently anticipates that during the term
of this agreement, it may prepare one or more official statements in connection with the sale of debt
securities. The Financing documents may contain the general pUtpose fmancial statements and the
auditor's report thereon. The auditor shall be required, if requested by the fiscal advisor and/or the
underwriter, to issue a "consent and citation of expertise" as the auditor and any necessary "comfort
letters. "
Assistance To Be Provided By The City
City Staffwill be available during the audit to assist the auditor by providing information,
documentation and explanations.
City Staff will type the necessary confirmation letters prepared by the Auditor.
AUDITOR STAFFING
An integral part of this agreement is the assignment and use of Audit staff who possess a significant
level of experience performing govenunental audits. Vavrinek, Trine, Day, & Co. shall assure that the
Engagement Partner and Audit Manager are actively involved in the completion of the field work as
stated in the Proposal dated March 7, 1996. For the 1995/1996 Audit the audit team shall include Kevin
Pulliam, as Engagement Partner and Gail Smith as Audit Manager. Any proposed changes to thenstaffing of these two positions in future years shall be subject to the review and approval of the City.
EXHIBIT B
Compensation
and Terms of the
Engagement
PAYMENT SCHEDULE
.
Reports
1996
1997
1998
1999
2000
City CAFR
$15,700 $ 16,200 $ 16,700 $ 17,200 $ 17,700
Measure "B" Compliance
1,BOO
300
1,B50
300
1,900
320
1,950
340
2,000
360
Gann Limit
Total
$17,800 $ 18,350 $ 18,920 $ 19,490 $ 20,060
Optional Services 1996 1997 1998 1999 2000
Single Audit $ 2,200 $ 2,300 $ 2,400 $ 2,500 $ 2,600
MTC 1,800 1,850 1,900 1,950 2,000 .~.
SLTPP 1,800 1,B50 1,900 1,950 2,000
State Controller's Report 600 600 650 700 750
Annual Street Report 800 800 800 BOO 800
Total $ 7,200 $ 7,400 $ 7,650 $ 7,900 $ 8,150
vavrinek, nine, Day, & Co. __:"
EXHffiIT B
Page 1 of2
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Period Covered
by Agreement
Compensation
Other
Accounting
Services
Insurance
This agreement shall cover the June 30, 1996, 1997, 1998, 1999,
and 2000 fiscal years, including required time to complete said
audit.
Kevin T. Pulliam is entitled to represent Vavrinek, Trine, Day &
Co, and is empowered to submit the bid and authorized to sign a
contract with the City of Dublin.
The City shall pay the Auditor the payment due under this
contract as the audit work is completed and upon receipt of the
Auditor invoices. The payment for services may be billed and
paid for as the work progresses.
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,
All personal services performed by the Auditors shall be
reimbursed at the following hourly rates:
Partner
ConsultanVSenior Manager
Manager
Supervisor
Senior in Charge
Staff Accountant
Clerical
$ 110
96
88
76
66
50
30
The Auditors shall maintain insurance as is specified in the
proposal.
Vavrinek, Trine, Day, & Co.
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EXHIBIT B
Page 2 of2
EXHIBIT C
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CITY shall furnish physical facilities such as desks, filing cabinets, personal and conference space, as
may be reasonably necessary for CONTRACTOR'S use while consulting with CITY employees and reviewing
records and the information in possession of CITY. The location, quantity, and time of furnishing said physical
facilities shall be in the sole discretion of CITY. CITY may provide access to personal computer, fax machine,
and telephone during any period when CONTRACTOR is working from CITY offices.
.
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EXIDBIT D
GENERAL PROVISIONS
e.
INDEPENDENT CONTRACTOR. At all times during the term of this Agreement, CONTRACTOR
shall be an independent contractor and shall not be an employee of CITY. CITY shall have the right to control
CONTRACTOR only insofar as the results of CONTRACTOR'S services rendered pursuant to this Agreement;
however, CITY shall not have the right to control the means by which CONTRACTOR accomplishes services
rendered pursuant to this Agreement.
2. LICENSES: PERMITS: ETC. CONTRACTOR represents and warrants to CITY that he has all
licenses, permits, qualifications and approvals of whatsoever nature which are legally required for
CONTRACTOR to practice his profession. CONTRACTOR represents and warrants to CITY that
CONTRACTOR shall, at his sole cost and expense, keep in effect at all times during the term of this Agreement
any licenses, permits, and approvals which are legally required for CONTRACTOR to practice his profession.
3. TIME. CONTRACTOR shall devote such time to the performance of services pursuant to this
Agreement as may be reasonably necessary for satisfactory performance of CONTRACTOR'S obligations
pursuant to this Agreement.
4. INSURANCE REQUIREMENTS. CONTRACTOR shall procure and maintain for the duration of the
contract insurance against claims for injuries to persons or damages to property which may arise from or in
connection with the performance of the work herelUlder by the CONTRACTOR, his agents, representatives,
employees or subcontractors. The cost of such insurance shall be included in the CONTRACTOR'S bid.
e:
(a)
2.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office form number GL 0002 (Ed.l/73) covering comprehensive
General Liability and Insurance Services Office form number GL 0404 covering Broad
Form Comprehensive General Liability; or Insurance Services Office Commercial
General Liability coverage ("occurrence" form CG 0001.)
Insurance Services Office form number CA 0001 (Ed. 1/78) covering Automobile
Liability, code 1 "any auto" and endorsement CA 0025.
Workers' Compensation Insurance as required by the Labor Code of the State of
California and Employers Liability Insurance.
3.
(b) Minimum Limits of Insurance. CONTRACTOR shall maintain limits no less than:
1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury,
personal injury and property damage. If commercial General Liability Insurance or other
form with a general aggregate limit is used, either the general aggregate limit shall apply
separately to this project/location or the general aggregate limit shall be twice the
required occurrence limit.
2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury
and property damage.
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3.
Workers' Compensation and Employers Liability: Workers'
Compensation limits as required by the Labor Code of the State of California and
Employers Liability limits of $1,000,000 per accident.
(c) Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be
declared to and approved by the CITY. At the option of the CITY, either the insurer shall reduce
or eliminate such deductibles or self-insured retentions as respects the CITY, its officers,
officials and employees; or the CONTRACTOR shall procure a bond guaranteeing payment.
losses and related investigations, claim administration and defense expenses. .
(d) Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following
provisions:
1. General Liability and Automobile Liability Coverages.
c.
d.
a.
The CITY, its officers, officials, employees and volunteers are to be covered as
insureds as respects: liability arising out of activities performed by or on behalf of
the CONTRACTOR; products and completed operations of the CONTRACTOR,
premises owned, occupied or used by the CONTRACTOR, or automobiles
owned, leased, hired or borrowed by the CONTRACTOR. The coverage shall
contain no special limitations on the scope of the protection afforded to the CITY,
its officers, officials, employees or volunteers.
b.
The CONTRACTOR'S insurance coverage shall be primary insurance as respects
the CITY, its officers, officials, employees and volunteers. Any insurance or self-
insurance maintained by the CITY, its officers,
officials, employees or volunteers shall be excess of the CONTRACTOR'S
insurance and shall not contribute with it.
Any failure to comply with reporting provisions of the policies shall not affee;::,,:
coverage provided to the CITY, its officers, officials, employees or volunteers.
The CONTRACTOR'S insurance shall apply separately to each insured against
whom claim is made or suit is brought, except with respect to the limits of the
insurer's liability.
2. Workers' Compensation and Employers Liability Coverage.
The insurer shall agree to waive all rights of subrogation against the CITY, its officers,
officials, employees and volunteers for losses arising from work performed by the
CONTRACTOR for the CITY.
3. Professional Liability.
CONTRACTOR shall carry professional liability insurance in an amount deemed by the
CITY to adequately protect the CONTRACTOR against liability caused by negligent
acts, errors or omissions on the part of the CONTRACTOR in the course of performance
of the services specified in this Agreement.
4. All Coverages.
Each insurance policy required by this clause shall be endorsed to state that coverage
s~~l not be suspende~, voided, cancele.d by e~ther p~, reduced. in cover~ge or in ..'"
lImIts except after thirty (30) days' pnor wntten notice by certIfied mall, return recel ',:
requested, has been given to the CITY. "
(e) Acceptability of Insurers. Insurance is to be placed with insurers with a Bests' rating of no less
than A:VII.
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5.
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6.
7.
8.
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"
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(f)
Verification of Cover aile. CONTRACTOR shall furnish CITY with certificates of insurance and
with original endorsements effecting coverage required by this clause. The certificates and
endorsements for each insurance policy are to be signed by a person authorized by that insurer to
bind coverage on its behalf. The certificates and endorsements are to be received and approved
by the CITY before work commences. The CITY reserves the right to require complete, certified
copies of all required insurance policies, at any time.
(g) Subcontractors. CONTRACTOR shall include all subcontractors as insureds under its policies or
shall furnish separate certificates and endorsements for each subcontractor. All coverages for
subcontractors shall be subject to all of the requirements stated herein.
(h) The Risk Manager of CITY may approve a variation in those insurance requirements upon a
determination that the coverages, scope, limits and forms of such insurance are either not
commercially available or that the CITY's interests are otherwise fully protected.
CONTRACTOR NO AGENT. Except as CITY may specify in writing, CONTRACTOR shall have no
authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent.
CONTRACTOR shall have no authority, express or implied, pursuant to this Agreement to bind CITY
to any obligation whatsoever.
ASSIGNMENT PROHIBITED. No party to this Agreement may assign any right or obligation pursuant
to this Agreement. Any attempted or purported assignment of any right or obligation pursuant to this
Agreement shall be void and of no effect.
PERSONNEL. CONTRACTOR shall assign only competent personnel to perform services pursuant to
this Agreement. In the event that CITY, in its sole discretion, at any time during the term of this
Agreement, desires the removal of any such persons, CONTRACTOR shall, immediately upon receiving
notice from CITY of such desire of CITY, cause the removal of such person or persons.
STANDARD OF PERFORMANCE. CONTRACTOR shall perform all serVices required pursuant to
this Agreement in the manner and according to the standards observed by a competent practitioner of the
profession in which CONTRACTOR is engaged in the geographical area in which CONTRACTOR
practices his profession. All instruments of service of whatsoever nature which CONTRACTOR
delivers to CITY pursuant to this Agreement shall be prepared in a substantial, first class and
workmanlike manner and conform to the standards of quality normally observed by a person practicing
in CONTRACTOR's profession.
"
9. HOLD HARMLESS AND RESPONSIBILITY OF CONTRACTORS. CONTRACTOR shall take all
responsibility for the work, shall bear all losses and damages directly or indirectly resulting to him, to
any subcontractor, to the CITY, to CITY officers and employees, or to parties designated by the CITY,
on account of the perfonnance or character of the work, unforeseen difficulties, accidents, occurrences .'
other causes predicated on active or passive negligence of the CONTRACTOR or any subcontracto. .
CONTRACTOR shall indemnify, defend and hold harmless the CITY, its officers, officials, directors,
employees and agents from and against any or all loss, liability, expense, claim, costs (including costs of
defense), suits, and damages of every kind, nature and description directly or indirectly arising from the
perfonnance of the work. This paragraph shall not be construed to exempt the CITY, its employees and
officers from its own fraud, willful injury or violation of law whether willful or negligent. For pUtposes
of Section 2782 of the Civil Code the parties hereto recognize and agree 'that this agreement is not a
construction contract. By execution of this agreement CONTRACTOR acknowledges and agrees that he
has read and understands the provisions hereof and that this paragraph is a material element of
consideration. Approval of the insurance contracts does not relieve the CONTRACTOR or
subcontractors from liability under this paragraph.
10. GOVERNMENTAL REGULATIONS. To the extent that this Agreement may be funded by fiscal
assistance from another governmental entity, CONTRACTOR shall comply with all applicable rules and
regulations to which CITY is bound by the terms of such fiscal assistance program.
11. DOCUMENTS.
All working papers and reports must be retained, at the auditor's expense, for a minimum of three (3)
years following completion of the audit, unless the firm is notified in writing by the City of Dublin of
the need to extend the retention period. The auditor will be required to make working papers available,
upon request, to the following parties or their designees: .'::
· City of Dublin
· Parties designated by the federal or state govenunents or by the City of Dublin as part of
an audit quality review process
· Auditors of entities of which the City of Dublin is a subrecipient of grant funds
· State of California, Office of the State Controller "'
In addition, the finn shall respond to the reasonable inquiries of successor auditors and allow successor
auditors to review working papers relating to matters of continuing accounting significance.
."