1981-140-Authorizing Execution Of Agreement Between The Town Of Los Gatos And Arthur Andersen & Co. For Auditiing ServicesRESOLUTION NO. 1981 -140
A RESOLUTION AUTHORIZING EXECUTION OF
AGREEMENT BETWEEN THE TOWN OF LOS GATOS
AND ARTHUR ANDERSEN & CO. FOR AUDITING
SERVICES.
BE IT RESOLVED by the Town Council of the Town of Los Gatos
that the Town Manager is authorized and directed to execute that
Audit Service Agreement between the TOWN OF LOS GATOS and ARTHUR
ANDERSEN & CO.
PASSED AND ADOPTED by the Town Council of the Town of Los
Gatos,
California, at a
regular
meeting
held
this
15th
day of
June
1981, by
the
following vote:
AYES: COUNCIL MEMBERS Ruth Cannon, Thomas
J. Ferrito, Marlyn J. Rasmussen, Brent
N. Ventura and Peter W. Siemens
NOES: COUNCIL MEMBERS None
ABSENT: COUNCIL MEMBERS None
ABSTAIN: COUNCIL MEMBERS None
SIGNED: �Yp C
MAYOR OF THE TOWN OF LOS GATOS
ATTEST:
..................
CLLR OF THE TOWN OF LOS G ;JS
AN AGREEMENT BETWEEN TOWN OF LOS GATOS
AND ARTHUR ANDERSEN & CO. FOR AUDITING
SERVICES.
THIS AGREEMENT, made and entered into this T day of
1981, by and between the TOWN OF LOS GATOS, a municipal corporation of the
State of California, hereinafter referred to as "TOWN ", and ARTHUR ANDERSEN
& CO., whose offices are at 99 Almaden Boulevard, San Jose, California, 95113,
hereinafter referred to as "AUDITORS ";
WITNESSETH:
IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:
1. Term of Agreement: This Agreement shall cover services rendered
pertaining to the fiscal year ending June 30, 1981. The TOWN retains the
option of extending this Agreement twice, for periods of one (1) year, to
cover services pertaining to the fiscal year ending June 30, 1982, and to
the fiscal year ending June 30, 1983. Unless the TOWN specifically noti-
fies AUDITORS within sixty (60) days of receipt of AUDITORS' report of a
decision to cancel this Agreement, the Agreement shall remain in effect for
the additional year.
2. Conduct of Audit:
(a) Financial and Compliance Audits: AUDITORS shall conduct
examinations of the books, records, accounts and financial transactions
of all offices, departments, and funds of TOWN for the fiscal year ending
June 30, 1981, and subject to extension of the Agreement, for the fiscal
year ending June 30, 1982, and the fiscal year ending June 30, 1983.
Examination(s) shall be done in accordance with generally accepted auditing
standards, including, to the extent necessary and practicable, the audit
standards adopted and the procedures recommended by the American Institute
of Certified Public Accountants in its audit guide entitled Audits of
State and Local Governmental Units, and as further defined by the National
Committee on Governmental Accounting in its publication entitled Governmental
Accounting, Auditing and Financial Reporting, as amended by Statement One
issued by the National Committee on Governmental Accounting. Tests of com-
pliance with the Revenue Sharing and Antirecession Fiscal Assistance Acts
and regulations will be done in accordance with the Audit Guide and Standards
for Revenue Sharing and Antirecession Fiscal Assistance Fund Recipients.
Audit of the Transit ASSIST Program will be done in accordance with Article 4.5
of the Transportation Development Act and the allocation instructions of the
Metropolitan Transportation Commission. Audit of Criminal Justice Planning
grant(s) will be done in accordance with published federal /state regulations
for specific grant programs.
(b) Special Audits: AUDITORS shall conduct special audits on
specific functional areas as requested by the TOWN. Compensation for these
services would be billed separately at hourly rates approximately seventy
(70°x) percent of AUDITORS' commercial rates.
(c) In connection with the examination of the financial statements,
the AUDITORS shall conduct a review of the systems of internal accounting
control, the accounting procedures employed by the TOWN, and related compli-
ance with laws, rules and regulations, and shall submit to the TOWN a separate
report in letter form detailing their findings, observations, opinions, comments,
or recommendations resulting from said review.
(d) Date(s) of Audit(s): AUDITORS shall perform audit(s) as soon
as the TO'WN's accounts are ready after the close of the fiscal year. TOWN
shall complete its closing of fiscal year activities no later than August 15.
-2-
3. Availability of Town Records: Any and all TOWN records necessary
for the conduct of this examination shall be made available to AUDITORS by
TOWN, and AUDITORS shall be entitled to use any and all internal audits and
records of TOWN as may be necessary or convenient for the performance of
this Agreement.
4. Audit Reports: AUDITORS shall submit audit report(s) and manage-
ment letter(s) within sixty (60) days following the closing of the TOWN's
books and accounts. The audit report shall contain AUDITORS' opinion, the
financial statements, and related footnotes. AUDITORS shall submit twenty
(20) copies of each audit report and management letter. AUDITORS shall
type, print and assemble the financial statements.
5. Compensation for Audit: AUDITORS shall be compensated for the
provision of services outlined herein under Paragraphs 1 through 4 (per-
taining to the audit) as follows:
$13,000 for the fiscal year ending June 30, 1981;
$14,500 for the fiscal year ending June 30, 1982; and
$16,000 for the fiscal year ending June 30, 1983.
A fifty (50 %) percent partial payment for each year shall be billed by
AUDITORS to TOWN on July 15 of each year and paid by TOWN no later than
August 10 of that year. Upon completion of each year's audit, TOWN shall
make a determination as to the satisfactory completion of said audit, and
shall make final payment of the remainder due each year therefor within
thirty (30) days after the receipt of said invoice.
-3-
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
the day and year first written above:
ARTHUR ANDERSEN & CO.: TOWN OF LOS GATOS:
--..
mes C. Benson, Partner David R. Mo a, Town Manager
ATTEST:
1
W er# of the Town of Los Ga
W
APPROVED AS TO FORM:
�I
al, ter V. Hays, Town ney
it