1984-092-Authorizing Negotiation And Execution Of An Agreement Between The Town Of Los Gatos And Main Hurdman For Auditing ServicesRESOLUTION NO. 1984 -92
A RESOLUTION AUTHORIZING NEGOTIATION
AND EXECUTION OF AN AGREEMENT BETWEEN
THE TOWN OF LOS GATOS AND MAIN HURDMAN
FOR AUDITING SERVICES
BE IT RESOLVED by the Town Council of the Town of Los Gatos
that the Town Manager is authorized and hereby directed to negotiate
and execute an Audit Services Agreement between the Town of Los Gatos
and Main Hurdman
PASSED AND ADOPTED BY THE TOWN COUNCIL of the Town of Los
Gatos, California, at a regular meeting held this 4th day of June,
1984, by the following vote:
AYES: COUNCILMEMBERS Joanne Benjamin, Eric D. Carlson,
Terrence J. Dail, Brent N. Ventura and Mayor
Thomas J. F
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS None
ABSTAIN: COUNCILMEMBERS
SIGNED:
ATTEST:
CAE , THE TOWN OF L S fOS
AN AGREEMENT BETWEEN TOWN OF LOS GATOS
AND MAIN HURDMAN FOR AUDITING SERVICES
THIS AGREEMENT, made and entered into this f day of �_`th1�
1984, by and between the TOWN OF LOS GATOS, a municipal corporation of e State
of California, hereinafter referred to as "TOWN ", and MAIN HURDMAN, whose offices
are at Suite 1200, Two North Second Street, San Jose, California, 95113, herein-
after referred to as "AUDITORS ";
W I T N E S S E T H:
IT IS HEREBY 14UTUALLY AGREED AS FOLLOWS:
1. Term of Nyre2ment: This Agreement shall cover services rendered
pertaining to the fiscal year ending June 30, 1984. 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, 1985, and to the fiscal
year ending June 30, 1986. Unless the TOWN specifically notifies 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 exami-
nations of the boo s, recor s, accounts an inancial transactions of all
offices, departments, and funds of TOWN for the fiscal year ending June 30, 1984,
and subject to extension of the Agreement, for the fiscal year ending June 30,
1985, and the fiscal year ending June 30, 1986. 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 Nationa Committee on Governmenta Accounting in its publication
entitled Governmental Accounting, Auditinq and Financial Reporting, as amended by
Statement One issued by t 2 Nationa Committee on Governmenta Accounting. Tests
of compliance with the Revenue Sharing and Antirecession Fiscal Assistance Acts
and regulations will be done in accordance with the Audit Guide and Standards for
Revenue Sharin- and Antirecession Fiscal Assistance and Reci cents. Au it of
the Transit ASSIST Program wi be one in accordance wit Artic e 4.5 of the
Transportation Geveloprnent Act and the allocation instructions of the Metropoli-
tan Transportation Commission. Audits referenced in this section will include an
audit of the General Revenue Shariny Fund; a separate audit report of the Transit
ASSIST Program; and a separate audit report of the Town Retirement Plan.
(b) .S Audits: AUDITORS shall conduct special audits on specific
functional areas as requested by the TOWN. The compensation for these services
will be billed at the hourly rate, as stated on p. 24 of the AUDITORS' proposal
dated May 4, 1984, and attached as Exhibit "A ".
(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, including the Town's
Data Processing, and related compliance with the 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 TOWN's accounts are ready after the close of the fiscal year. TOWN shall
complete its closing of fiscal year activities no later than July 31.
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 management
letters) 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 out ine�Tc"rierein under Paragraphs T through 4 (pertaining to
the audit) as follows:
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 TO 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.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the
day and year first written above:
MAIN HURDMAN:
ATTEST:
C1er o the Town of Los G os
TOWN OF LOS GATOS:
David R. —1407 7, Town Hanager
APPROVED AS TO FORM:
i ary o L ' er, own A rney
1984
1985
1986
Town of Los Gatos
(including
Revenue Sharing
Grants)
$12,500
$13,500
$14,000
Town of Los Gatos
Retirement Plan
3,000
3,240
3,500
Town of Los Gatos
Transit Assist Plan
2,000
2,160
2,300
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 TO 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.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the
day and year first written above:
MAIN HURDMAN:
ATTEST:
C1er o the Town of Los G os
TOWN OF LOS GATOS:
David R. —1407 7, Town Hanager
APPROVED AS TO FORM:
i ary o L ' er, own A rney
EXHIBIT A
Fees for other grant audits and other requested services will be in addition to
the above fee and will be determined as the services are requested.
The following schedule of hourly rates was used as the basis for the fees:
1984
1985
1986
hourly
hourly
hourly
rates
rates
rates
Partner
$105
$113
$122
Manager
67
72
78
Senior Accountants
38
41
44
Staff Accountants
30
32
35