HomeMy WebLinkAboutCONRAD & ASSOCIATES, LLP - 1997-01-10sU ity Contracts Checklist for Submittal to
i B I City Clerk's Office
(Please transmit this form when your contract is ready to be filed in the City Clerk's office)
To: Connie Brockway, City Clerk
x5404
1. Name of Contractor: CONRAD & ASSOCIATES, L.L.P
i . Purpose of contract: AUDITING PROCEDURES FOR HOUSING AND BOND COMPLIANCE
3. Expiration Date: APRIL 10, 1997
4. Amount of Contract: $9,900.00
A Is the attached contract RELATED to a PREVIOUSLY SUBMITTED contract (renewaVamendmentletc)? O YES ✓ NO
B Did you attach the LIST OF CONSULTANTS from whom proposa!s were requested —pursuant to HBMC 3.03.1007 CIYES ✓ NIA
OR Is the attached contract a SOLE SOURCE? O YES ✓ NIA
C. Did you attach a COPY of the insurance cent ficate/waiver and send the ORIGINAL to Risk Management? ✓ YES
PLEASE INCLUDE:
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ECONOMIC DEVELOPMENT
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AGREEMENT BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
AND
CONRAD & ASSOCIATES, L.L.P.
TO PROVIDE AGREED -UPON AUDITING PROCEDURES
FOR HOUSING AND BOND COMPLIANCE
THIS AGREEMENT is made and entered into this 10th day of January, 1997, by and between
the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public
body, corporate and politic (hereinafter referred to as "AGENCY), and CONRAD &:
ASSOCIATES, L.L.P., a general partnership (hereinafter referred to as "CONTRACTOR').
)WHEREAS, AGENCY desires to engage the services of CONTRACTOR to provide agreed -
upon auditing services for housing bond compliance in the City of Huntington Beach; and
Pursuant to documentation on file in the office of the City Clerk, the provisions of HBMC
Chapter 3.03 relating to procurement of professional service contracts have been complied with;
and CONTRACTOR has been selected to perform said services.
NOW, THEREFORE, it is agreed by AGENCY and CONTRACTOR as follows:
1. WORD: STATEMENT
CONTRACTOR shall provide all services as described in CONTRACTOR'S proposal
dated November 8, I996 (hereinafter referred to as Exhibit "A"), which is attached hereto
and incorporated into this Agreement by this reference. Said services shall sometimes
hereinafter be referred to as "PROJECT".
CONTRACTOR hereby designates Michael A. Harrison, who shall represent it and be its
sole contact and agent in all consultations %%ith AGENCY during the performance of this
Agreement.
2. AGENCY STAFF ASSISTANCE
AGENCY shall assign a staff coordinator to work directly with CONTRACTOR in the
performance of this Agreement.
3. TIME OF PERFORMANCE
Time is of the essence of this Agreement. The services of the CONTRACTOR are to
commence as soon as practicable after the execution of this Agreement and all tasks
specified in Exhibit "A" shall be completed no later than ninety (90) days from the date
Of this Agreement. These times may be extended with the written permission of the
AGENCY.
4. COMPENSATION
In consideration of the performance of the services described herein, AGENCY agrees to
pay CONTRACTOR the total fee not to exceed Nine Thousand Nine Hundred Dollars
($9,900.00).
S.
1.1
EXTRA WORK
In the event AGENCY requires additional services not included in Exhibit "A", or
changes in the scope of services described in Exhibit "A", CONTRACTOR will
undertake such work after receiving written authorization from AGENCY. Additional
compensation for such extra work shall be allowed only if the prior written approval of
AGENCY is obtained.
DELIVERY OF WORK PRODUCT
A. A copy of every technical memo and report prepared by CONTRACTOR shall be
submitted to the AGENCY to demonstrate progress toward completion of tasks.
In the event AGENCY rejects or has comments on any such product, AGENCY
shall identify specific requirements for satisfactory completion. Any such product
which has not been formally accepted or rejected by AGENCY within seven days
of receipt, it shall be deemed accepted.
B. The CONTRACTOR shall submit to the AGENCY an invoice for payment due at
the completion of the services outlined herein. Such invoice shall:
1. Reference this Agreement;
2. Describe the services performed;
3. Show the total amount of payment due; and
4. Include a certification by a principal member of the CONTRACTOR'S
firm that the work has been performed in accordance with the provisions
of this Agreement.
C. Upon submission of any such invoice, if AGENCY is satisfied that
CONTRACTOR has satisfactorily completed the tasks in accordance with this
Agreement, AGENCY shall promptly approve the invoice, in which event
payment shall be made within thirty (30) days of receipt of the invoice by
AGENCY. Such approval shall not be unreasonably withheld. if the AGENCY
does not approve the invoice, AGENCY shall notify CONTRACTOR in writing
of the reasons for non -approval, within seven (7) calendar days of receipt of the
invoice, and any additional work which may be in progress shall be suspended
until the parties agree that past performance by CONTRACTOR is in, or has been
brought into compliance, or until Agreement with respect to the additional work,
if any is terminated.
D. Any billings for extra work or additional services authorized by the AGENCY
shall be invoiced separately to the AGENCY. Such invoice shall contain all of
the information required above, and in addition shall list the hours expended and
hourly rate charged for such time. Such invoices shall be approved by AGENCY
if the work performed is in accordance with the extra work or additional services
requested, and if AGENCY is satisfied that the statement of hours worked and
costs incurred is accurate. Such approval shall not be unreasonably withheld.
Any dispute between the parties concerning payment of such an invoice shall be
treated separate and apart from this Agreement.
MA
7. DISPOSITION OF PLANS, ESTIMATES,IND OTHER DOCUMENTS
CONTRACTOR agrees that all materials prepared hereunder, including all original
drawings, designs, reports, both field and office notes, calculations, maps and other
documents, shall be turned over to AGENCY upon termination of this Agreement or
upon PROJECT completion, whichever shall occur first. In the event this Agreement is
terminated, said materials may be used by AGENCY as it sees fit. Title to said materials
shall pass to the AGENCY upon payment of fees determined to be earned by
CONTRACTOR to the point of termination or completion of the PROJECT, whichever is
applicable. CONTRACTOR shall be entitled to retain copies of all data prepared
hereunder.
8. INDEMNIFICATION AND HOLD HARMLESS
CONTRACTOR hereby agrees to indemnify, defend, hold and save harmless AGENCY
and the City of Huntington Beach, their officers and employees from any and all liability,
including any claim of liability and any and all losses of costs arising out of the negligent
performance of this Agreement by CONTRACTOR, its officers and employees.
9. WORKERS' COMPENSATION
CONTRACTOR shall comply with all of the provisions of the Workers' Compensation
Insurance and Safety Acts of the State of California, the applicable provisions of the
California Labor Code and all amendments thereto; and all similar state or federal acts or
laws applicable; and shall indemnify, defend and hold harmless AGENCY and the City
of Huntington Beach from and against all claims, demands, payments, suits, actions,
proceedings and judgments of every nature and description, including attomey's fees and
costs presented, brought or recovered against AGENCY and the City of Huntington
Beach, for or on account of any liability under any of said acts which may be incurred by
reason of any work to be performed by CONTRACTOR under this Agreement.
CONTRACTOR shall obtain and furnish evidence to AGENCY of maintenance of
statutory workers' compensation insurance and employers' liability in an amount of not
less than $100,000 bodily injury by accident, each occurrence, $100,000 bodily injury by
disease, each employee, and $250,000 bodily injury by disease, policy limit.
10. INSURANCE
In addition to the workers' compensation insurance and CONTRACTOR'S covenant to
indemnify AGENCY and City of Huntington Beach, CONTRACTOR shall obtain and
furnish to AGENCY the following insurance policies covering the PROJECT:
A. General Liability Insurance
A policy of general public liability insurance, including motor vehicle coverage.
Said policy shall indemnify CONTRACTOR, its officers, agents and employees,
while acting within the scope of their duties, against any and all claims arising out
of or in connection with the PROJECT, and shall provide coverage in not less
V
than the following amount: combined single limit bodily injury and property
damage, including products/completed operations liability and blanket contractual
liability, of $1,000,000 per occurrence. If coverage is provided under a form
which includes a designated general aggregate limit, the aggregate limit must be
no less than $1,000,000. Said policy shall name AGENCY and City of
Huntington Beach, its officers, and employees as additional insureds, and shall
specifically provide that any other insurance coverage which may be applicable to
the PROJECT shall be deemed excess coverage and that CONTRACTOR'S
insurance shall be primary.
B. Professional Liability Insurance
CONTRACTOR shall acquire a professional liability insurance policy covering
the work performed by it hereunder. Said policy shall provide coverage for
CONTRACTOR'S professional liability in an amount not less than $1,000,000
per claim. A claims made policy -Rill be acceptable.
11. CERTIFICATES OF INSURANCE
Prior to commencing performance of the work hereunder, CONTRACTOR shall furnish
to AGENCY certificates of insurance subject to approval of the AGENCY Attorney
evidencing the foregoing insurance coverages as required by this Agreement; said
certificates shall provide the name and policy number of each carrier and policy, and shall
state that the policy is currently in force and shall promise to provide that such policies
will not be cancelled or modified without thirty (30) days prior written notice to
AGENCY and City of Huntington Beach. CONTRACTOR shall maintain the foregoing
insurance coverages in force until the work under this Agreement is fully completed and
accepted by AGENCY.
The requirement for carrying the foregoing insurance coverages shall not derogate from
the provisions for indemnification of AGENCY and City of Huntington Beach by
CONTRACTOR under this Agreement. AGENCY and City of Huntington Beach or
their representative shall at all times have the right to demand the original or a copy of all
said policies of insurance. CONTRACTOR shall pay, in a prompt and timely manner,
the premiums on all insurance hereinabove required.
• Ma • Alt • l" • t
CONTRACTOR is, and shall be, acting at all times in the performance of this Agreement
as an independent contractor. CONTRACTOR shall secure at its expense, and be
responsible for any and all payments of all taxes, social security, state disability insurance
compensation, unemployment compensation and other payroll deductions for
CONTRACTOR and its officers, agents and employees and all business licenses, if any,
in connection with the services to be performed hereunder.
13. TERNITNATION OF AGREEMENT
All work required hereunder shall be performed in a good and workmanlike manner.
AGENCY may terminate CONTRACTOR'S services hereunder at any time with or
without cause, and whether or not PROJECT is fully complete. Any termination of this
Agreement by AGENCY shall be made in writing, notice of which shall be delivered to
CONTRACTOR as provided herein.
4
14. ASSIGNMENT AND SUBCONTRACTING
This Agreement is a personal service contract and the supervisory work hereunder shall
not delegated by CONTRACTOR to any other person or entity without the consent of
AGENCY.
15. COPYRIGHTSIPATENTS
AGENCY shall own all rights to any patent or copyright on any work, item or material
produced as a result of this Agreement.
16. AGENCY_ EMPLOYEES_ AND OFFICIALS
CONTRACTOR shall employ no AGENCY or City official nor any regular AGENCY
employee in the work performed pursuant to this Agreement. No officer or employee of
AGENCY or City shall have any financial interest in this Agreement in violation of the
applicable provisions of the California Government Code.
17. NOTICES
Any notices or special instructions required to be given in writing under this Agreement
shall be given either by personal delivery to CONTRACTOR'S agent (as designated in
Section 1 above) or to AGENCY'S Director of Economic Development or his designated
agent, as the situation shall warrant, or by enclosing the same in a sealed envelope,
postage prepaid, and depositing the same in the Untied States Postal Service, addressed as
follows:
To AGENCY:
To CONTRACTOR:
David C. Biggs, Director Michael A. Harrison, C.P.A.
Economic Development Agency of Huntington Beach Conrad & Associates, L.L.P.
2000 Main Street 1100 Main Street, Suite C
Huntington Beach, California 92648 Irvine, California 92614
18. IMMIGRATION
CONTRACTOR shall be responsible for full compliance with the immigration and
naturalization laws of the United States and shall, in particular, comply with the
provisions of the United States Code regarding employment verification.
19. LEGAL SERVICES SUBCONTRACTING PROHIBITED
CONTRACTOR and AGENCY agree that AGENCY is not Iiable for payment of any
subcontractor work involving legal services, and that such legal services are expressly
outside the scope of services contemplated hereunder. CONTRACTOR understands that
pursuant to Huntington Beach AGENCY Charter Section 309, the AGENCY Attorney is
the exclusive legal counsel for AGENCY; and AGENCY shall not be liable for payment
of any Iegal services expenses incurred by CONTRACTOR.
20. ENTIRETY
The foregoing, and Exhibit "A" attached hereto, sets forth the entire Agreement between
the parties.
M
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and
through their authorized officers the day, month and year first above written.
AGENCY:
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH
By:
xecutiMe Di ctor
By: Awd C W
DaKid C. Biggs,
Director of Economic Development
APPROVED AS TO FORM:
CONTRACTOR:
CONRAD & ASSOCIATES, L.L.P.
By. iG41474tP4.
Michael A. Harrison, C.P.A.,
Partner
By:
Ag�ecy Attorney
ti -7
APPROVED AS TO FORM:
By:
y' Dewy City Attorney 0?
-s "17
011=AMIC0l
7SS Shw Ms Erne, Nd hoer, 106+ (Ay, WOO-
415.102.2S00.100 6521712 • FIR: /15-101IM
CAMICO MUTUAL INSURANCE COMPANY
To: Mr. Greg Brown
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
RE: Policy No. CAL01311
DATE: January16, 1997
This is to certify that as of the date hereof a CAMICO policy of accountant's
professional liability insurance insuring Qonrs1d I Associalm LLP__ as the Named
Insured is in effect. Tho policy period of such policy is 01/01/97-12/31/97 1 and the per
claim/aggregate limits of liability thereunder are 2 000.00=2.000.000_ respectively.
Such insurance is subject to cancellation as provided in the policy and to nonrenewal by
the Company or by the Named Insured. Coverage is subject to all the terms and
conditions of the policy.
By issuing this Certificate, CAMICO undertakes no obligation to inform any person of
the cancellation or nonrenewal of the policy or of exhaustion of the limits of liability
thereunder.
APPROVED ASTO FOFM
GAIL HLJTTON, City Attcrney
By peputy City Attorney
�fz1��
CAMICO MUTUAL
INSURANCE COMPANY
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' 3NSURF.D: CONRAD S ASSOM S L.L.P.
CJVA POLICT : 129167304
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.-
ADDITIMM INSURED -- DESIGNATED PERSON OR ORGANIZATION
Thie endorsemant modihsa insurance provided tender the loltcwing;
BUSINESS ACCOUNT PACKAGE POLICY BUSINESS LIABILM COYEIRAOE FORM
SCHEDULE
Wmv of person or Otgsnlxatton:
CTTY OF 1fUKTINGI'0N DEAQ1, ITS AGENTS. pFFICERS & EMpLOyEES
(If no entry appears abova, Information required to
complete this endcrsement will t;e shown in the
neVaratlons as applicable to trio indorsement.)
WHO IS AN INSURED (Sectlan C.) Is amended to
inClltde as an insured the person Or organization ahown
In the Schedule as an insured bvt cniy with respect b
iiablky arising out of your opsraticns or prarnises
owned by or rented to you.
APPROVED AS TO FORM
GAIL HUTTON, City Alicmey
By- Deputy City Attorney f
Includes copogtlted mtderid of tnswutce Bervloer 01110 a, ins.. with ht♦ perttu+ssiart..
ta'QvyilgM. 3rtivrtrta ltervtt:M Off M (me.. 1984
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DATEIUWD=YI
ACORD CERTIFICA'i,.j OF LIABILITY INSURr„;VCE,.aNsK
7001 02/04/97
►RODUCEF THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
Advanced Insurance Marketing HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
P.O. box 4459 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
Orange CA 92613-4459 COMPANIES AFFORDING COVERAGE
F... Jar•.es Ellis COMPANY
A CNA Ins. Co.
phameNe 714-997-9100__Flo�Ne.
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Irvine CA 92714
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COVERt.GES
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW RAVE BEEN ISSUED TO THE RdSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY RECUIREMENT. TERM OR CONDITION CF ANY CCMTRACT OR OrMER DOCUMENT WITH RESPECT TO WHICH THIS
CERT FICATE MAYBE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCR'BED HEREIN 13 SUBJECT TO ALL THE TEIIYS,
EXCL'.'SICNS AND C0401TIORIS OF SUCH POUCtES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CD I TYPE OF INSURANCE POLICY NUMBER
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DATE IMMIDDIM
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02/07/97
02/07/98
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10 DAY NOTICE CF CANCELLATION FOR NON-PAYMENT OF PREMIUM./ ADDITIONAL
INSUFED PER THE ATTACHED 118157A.
CERTIFICATE HOLDER CANCELLATION
CIHB003 SHOULD ANY OF THE ABOVE DESCRIBED POLICES BE CANCELLED BEFORE THE
EXPIRATION DATE n1EREOP, THE 133LPOO COMPANY MLL i+»rI.I.+PORIP"AIL
CITY OF HUNTINGT'ON BEACH, ITS L0 DAY3 WRITM NOTGE TOTHecrArFTCATE HOLDER NAMED TO THE LEFT,
AGENTS,OFFICER3 G EMPLOYEES
GREG BROW
2000 MAIN STREEET B
HUNTINGTON BEACH CA 92648 AurTloRa:ORe TA
Ili. James Ellis
ACORt 2RS (1195) VACORD CORPORATION 1988
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PROPOSAL OF SERVICES
TO PERFORM AGREED -UPON
AUDITING PROCEDURES
FOR THE
CITY OF HUNTINGTON BEACH
Submitted by:
CONRAD &: ASSOCIATES, L.L.P.
1100 Main Street, Suite C
Irvine, California 92714
November 8, 1996
CONTACT PERSON - MICHAEL A. HARRISON, PARTNER
PHONE NO. (714) 474-2020
FAX NO. (714) 263-5520
CONRAD & ASSOCIATES, L.L.P. CALIFORNIA LICENSE NO. X3447
CONRAD &: ASSOCIATES, L.L.P. FEDERAL IDENTIFICATION NO.95-3389106
L
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N RAID
L 1ESSOCI 1TLs11_.L.P
A PARTNERSHIP INCLUOINa PROT(SS•ONAL CORPORATIONS
Gregory Brown, Development Specialist
Economic Development Department
City of Huntington Beach
2000 Main Street
Huntington Beach, California 92648
Dear Mr. Brown:
CERTIFIED PUBLIC ACCOUNTANTS
November 8, 1996
1I00 MAIN STREET. SUITE C
IRVINE, CALIFORNIA 92674
(714) 474-2020
Conrad & Associates, L.L.P. is pleased to respond to your request for proposal to provide
compliance auditing for various bond financed multi -family housing projects within the City of
Huntington Beach.
In preparation of this response, I discussed the scope of work with you. We are familiar with the
scope of work to be performed from previously performing agreed upon compliance procedures
at each of the site locations in 1993 which are in the current scope of work requested.
Conrad & Associates, L.L.P. is uniquely qualified for the following reasons which are set forth
below or in the paragraphs that follow:
• Our firm and the audit team to be assigned to the audits of the bond programs, as
set forth hereii, are experienced in performing compliance auditing and tenant
eligibility testing of low income housing projects.
• Mr. Michael Harrison, Partner and Mr. Steven Dobrenen, Supervisor, specifically
have performed audit testing of Section 8 Housing Voucher and Certificate
Programs and of Senior Housing and Section 202 Multi -family projects. Each of
the audits involved eligibility testing and recertification of tenant eligibility.
• Our firm serves as the independent auditors for 29 Southern California cities and
the related Redevelopment Agencies of those cities. As auditors of each of the
Redevelopment Agencies, we perform compliance auditing with respect to the
Health and Safety Code.
• Our firm, Mr. Harrison and Mr. Dobrenen are vastly experienced in the review
and interpretation of complex bond documents. In two of our audit clients alone,
the Cities of Brea and Pomona, the Agency and Financing Authority have more
than $500,000,000 in outstanding indebtedness.
r
MEM3ERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMSER OF AMERCAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
V
Gregory Brown, Development Specialist
Economic Development Department
City of Huntington Beach
Page Two
• Our firm currently performs audits of several mortgage revenue bond programs of
our City clients, including multi -family programs. We also perform compliance
tests with asset coverage tests in accordance with restrictive covenants of bond
indentures.
• In addition to the auditing and general consulting services we performed for our
City and Agency clients which aggregated in excess of 30,000 professional hours
in 1995, we also perform significant financial and compliance auditing for
CALPERS, the State Office of Criminal Justice Planning, the Orange County
Transportation Authority, U.S. Departments of Labor, Health and Health and
Human Services.
ABOUT CONRAD & ASSOCIATES, L.L.P.
In Appendix A, we have outlined background about the make-up of personnel in our firm and
our firm's participation in quality control.
STAFFING AND SUPERVISION
Mr. Michael A. Harrison, Partner, will be responsible for the planning and review of the
compliance audits to be performed. Mr. Steven Dobrenen, C.P.A., Supervisor, will be the
engagement manager and will work with Mr. Harrison in the management of the engagements.
Resumes of Mr. Harrison and Mr. Dobrenen are included as Appendix B.
REFERENCES OF LOCAL GOVERNMENT CLIENTS
In Appendix C, we have included local governmental clients where our firm has served as
auditors in 1995.
OBJECTIVES AND SCOPE OF WORK
We will perform the following tasks with respect to the projects to be audited:
1. Review regulatory agreements and restrictive covenants of each individual bond
issue.
2. Draft an audit program of agreed upon procedures and other control procedures
which should be in place at the project.
3. Communicate and establish arrangements with Iandlord for site visit.
4. Review City files for compliance reports filed by the landlord.
z
V
Gregory Brown, Development Specialist
Economic Development Department
City of Huntington Beach
Page Three
5. Perform on -site control review and eligibility testing of low income tenants.
6. Write final audit report of agreed upon auditing procedures and findings of each
audit.
7. Communicate results of written reports to Director of the Economic Development
Department.
We plan to perform random sampling of approximately 50% of low income tenants or a
minimum of 20 tenants per site at the following locations:
1.
Five Point Senior Villas
2.
Harbor Gateway
3.
Huntington Beach Breakers
4.
Huntington Village
5.
R.ivermeadows
6.
Seabridge Villas
TINTING OF THE WORK TO BF PERFORMED
Because of having a predominant June 30 year end practice, we are in the midst of our busy
season and have made staffing commitments to existing City clients where we serve as their
independent auditors. We would therefore like to have a planning meeting on December 18,
1996 and commence actual field site visits on January 6,1997. We would have draft reports of
all six sites by February 14, I997 and finalize all reports by February 19, 1997. We have
factored this `off season" timing into a favorable cost to the City of Huntington Beach.
COST OF SERVICES
For each of the seven projects to be audited, we have estimated that each site location will
require approximately 33 hours including planning, site visits, meeting with City officials,
review of documents and drafting findings and final reports. We would agree to a not to exceed
fee of $1,650 per site location or $9,900 for all six locations to be audited.
4-
Gregory Brown, Development Specialist
Economic Development Department
City of Huntington Beach
Page Four
INSURANCE
As required by the City of Huntington Beach's resolution, Conrad &: Associates, L.L.P. can
furnish insurance certificates and/or evidence of insurance in the amounts and types required by
the City of Huntington Beach.
We appreciate this opportunity to serve the City of Huntington Beach and look forward to the
assignment with enthusiasm. You may contact me at (714) 474-2020. If this meets with your
approval, you may sign and return a duplicate of this as our engagement letter.
Very truly yours,
CONRAD & ASSOCIATES, L.L.P.
Michael A. Harrison, C.P.A.
Partner
-L
MAH:dac
Enclosure
Accepted:
CITY OF HUNTINGTON BEACH
By:
Title:
V Date:
L
APPENDIX A
ABOUT CONRAD & ASSOCIATES. L.L.P.
Conrad & Associates. L.L.P. is located in Irvine, California and has a staff of forty (40) individuals.
including thirty-five (35) professionals. Four of the firm's seven partners devote more than 75% of
their time in managing governmental audit and general consulting engagements related to
governmental clients. Three of the firm's partners have extensive "Big 6" public accounting
experience in addition to extensive local firm experience. Two of our tax partners have advanced
degrees in law and taxation as well as being CPA's. Ibis tax expertise adds an additional dimension
for our local governmental clients in areas of taxation affecting local governments. Since 1971,
Conrad & Associates, L.L.P. has specialized in governmental and nonprofit accounting and
auditing. For the past 25 years, the firm has been performing accounting and audit services to the
private and public sector and not -far -profit organizations.
A breakdown of our firm's personnel by level of experience is as follows:
Partners
7
Managers/Supervisors
5
Seniors
13
Staff
1 I
Clerical/Bookkeepers
4
40
Conrad & Associates, L.L.P. is licensed to practice in the State of California and has complied with
all applicable California Board of Accountancy requirements. The firm's employees have met all of
the State's Continuing Education requirements, and the firm is in compliance with CPA
requirements of the Private Companies Practice Section of the AICPA.
A Quality Control Firm
For over 16 years, Conrad &: Associates, L.L.P. has been one of the few local CPA firms which has
subjected its audit and accounting practice to the scrutiny of the peer review program administered
by the Private Companies Practice Section of the American Institute of Certified Public
Accountants (AICPA). As a member of the Private Companies Practice Section of the AICPA, our
audit procedures and working papers are regularly examined by another CPA firm in the firm -on -
firm peer review program. In addition, all aspects of the firm's quality control practices have been
reviewed, including the firm's commitment to extensive training programs. In every member firm,
each member of the professional staff must enroll in continuous professional education courses.
Each is required to take at least 120 hours of classes over a three-year period. Courses cover a wide
spectrum of professional and technical subjects, often prepared by the AICPA, to help the
practitioner maintain his professional expertise. The following policies and procedures are
evaluated during the peer review.
1. How a firm implements independence requirements
2. How personnel are assigned
3r
APPENDIX A. CONTINUED
3. Provision for consultation when technical assistance is required
4. How field work is supervised
S. Hiring practices
6. Continuing Professional Education programs
7. Promotion of personnel
8. Decisions on obtaining and retaining clients
9. Internal inspection of the firm's work
This means that when the City of Huntington Beach selects our firm to perform services for you,
you will know that our firm has agreed to comply with the strict membership requirements of the
section to which we belong and has agreed to have our compliance with those requirements
reviewed by others. Thus, there is greater assurance that our personnel are adequately trained and
up-to-date on professional developments relating to governmental as well as commercial auditing.
Accordingly, membership in this Division provides additional assurance that our firm will comply
with professional accounting and auditing standards. The Governmental Accounting Office (GAO),
in their 1994 revisions to the "Yellow Book% Government Auditing Standards require CPA firms
performing governmental audits to participate in quality control "peer" review. We are proud of the
fact that Conrad & Associates received an unqualified opinion on the quality of its accounting and
auditing practice for each of its quality control reviews. Conrad & Associates, L.L.P. has
participated in voluntary peer review since 1979. A copy of those opinions, together with
California Society of Certified Public Accountants Peer Review Program (CSCPA) approval of the
results of the review, are included in Appendix B. We would like to indicate that during our most
recent quality control review several government audits, including single audits of cities and other
governmental entities, were reviewed by the review team who found our work to substantially
comply with all professional standards. Additionally, our firm has had numerous federal and state
desk reviews and field reviews of our audits done by the State Office of Criminal Justice Planning,
the U.S. Departments of Labor, Health and Human Services, Environmental Protection Agency and
the California State Controller's office. In all instances the federal or state agencies indicated their
satisfaction with our work. Our firm has never had a record of substandard audit work.
As a local CPA firm, our office contains approximately 7,000 square feet of space for the 40
individuals in our firm. To accommodate our clients, we have an in-house IBM Data Processing
z- System and numerous IBM compatible personal computers, and utilize Microsoft Word for the
production of reports and other written documents of the highest duality. Our field audit staff teams
are equipped with lap -top computers and our audit staff are proficient in several soft -are programs.
V
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APPENDIX B
RESUMES OF KF.Y PERSONNEL
€=
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MICHAEL A. HARRISON, C.P.A.
Engagement Partner
California CPA Certificate No. 19299E Date Issued - 9/28/73
EDUCATION
B.A. Accounting - California State University, Fullerton
PROFESSIONAL EXPERIENCE
9 1/2 years - KPMG Peat Marwick (Senior Manager)
16 years - Conrad R: Associates, L.L.P. (Partner)
Total Auditing Experience - 25 1/2 years
Total Supervisory Experience - 24 years
RELATED EXPERIENCE
The following audits were performed under Mr. Harrison's supervision.
Mr. Harrison's experience in the performance of single audits under Circular A-102 and Circular A-
128 and in the financial audits of local governmental units entities and other related entities include
the following:
Organizational Wide Audits of California Cities
(All Funds and Account Groups)
City
Duties Performed
Dates Performed
City of Brea
Partner
06/92-06/95
City of Westminster
Partner
06/81-06/89
r-
City of Carlsbad
Partner
06/81-06/83
City of Rancho Mirage
Partner
06/82-06/87
City of Indio
Partner
06/93-06/95
6:
City of Rialto
Partner
06/82-06/90
City of Buena -Park
Manager/Partner
06n8,
06/82-06/89
C• City of San Jacinto
Partner
06/91-06/95
City of Vista
Partner
06/83-06/90
91
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C.
Michael A. Harrison, (Continued)
4rzanizational Wide Audits of Catifmia Cities fAll Funds and Account Groups), Continued
C?tY
12uties Performed
Dates Performed
City of Delano
Partner
06,91-06194
City of Stanton
Partner
06183-06187
City of San Clemente
Manager
06n7-06179
City of Commerce
Manager
06n7-06180
City of San Marcos
Partner
06183-06187
City of Escondido
Partner
06183-06188
City of Santa Ana
Partner
06184-06187
City of South Gate
Partner
06/84-06/88
City of Do,.Nmey
Partner
06195-06187
City of Desert Hot Springs
Partner
06185-06190
City of La Verne
Partner
06188-06192
City of Azusa
Partner
06187-06/92
City of Palm Springs
Partner
06/86-06195
City of Norwalk
Partner
06/96-06i95
City of Los Alamitos
Partner
06186-06/88
City of Beaumont
Partner
06186-06191
City of Banning
Partner
06187-06191
City of San Gabriel
Partner
06188-06195
City of Highland
Partner
06189-06195
City of Hemet
Partner
06/89-06/93
City of Gilroy
Partner
06189-06193
City of Temple City
Partner
06194
City of Claremont
Partner
06f83-06188
V
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46
Michael A. Harrison, (Continued)
udits of California Redevelopment Aeencies (All Funds
Aizency Duties Performed
Brea Redevelopment Agency Partner
Indio Redevelopment Agency Partner
Santa Ana Redevelopment Agency Partner
Rialto Redevelopment Agency Partner
Rancho Mirage Redevelopment Agency Partner
Cathedral City Redevelopment Agency
Buena Park Redevelopment Agency
Claremont Redevelopment Agency
Delano Redevelopment Agency
San Jacinto Redevelopment Agency
Carlsbad Redevelopment Agency
San Clemente Redevelopment Agency
Commerce Redevelopment Agency
Westminster Redevelopment Agency
San Marcos Redevelopment Agency
South Gate Redevelopment Agency
Stanton Redevelopment Agency
Downey Redevelopment Agency
Desert Hot Springs Redevelopment Agency
La Quinta Redevelopment Agency
Santee Redevelopment Agency
Norwalk Redevelopment Agency
Partner
Manager/Partner
Partner
Partner
Partner
Partner
Manager
Manager
Partner
Partner
Partner
Partner
Partner
Partner
Partner
Partner
Partner
Dates Performed
06/92-06/95
06/93-06/95
06184-06/87
06/82-06/89
06/82-06188,
06/92
06187-06/95
06/78-06/79,
06/82-06/90
06/83-06/88
06/91-06/93
06/91-06/95
06/82-06/84
06/77-06/79
06177-06/80
06/83-06/89
06/83-06/97
06/84-06/88
06/84-06/87
06/85-06/87
06/85-06/90
06/92
06/91-06/95
06/86-06/95
G
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Michael A. Harrison, (Continued)
Audits of California Redevelopment Aeencies (Ali Funds), (Continued
Agency
Duties Performed
Dates Performed
Palm Springs Redevelopment Agency
Partner
06/86-06/94
Banning Redevelopment Agency
Partner
06/87-06/91
Azusa Redevelopment Agency
Partner
06/87-06/92
Gilroy Redevelopment Agency
Partner
06/89-06/90
Hemet Redevelopment Agency
Partner
06/89-06/92
Highland Redevelopment Agency
Partner
06/90-06/95
Temple City Redevelopment Agency
Partner
06/94
Audits of Special Districts and Authorities
Duties
Dates
Entity
Tyne of Entity
Performed
Performed
Palm Springs Public Financing
Financing Authority
Partner
06/90-06/95
Authority
Yorba Linda Water District
Special District
Partner
06/81-06/91
Los Alamitos County Water District
Special District
Partner
06/88-06/93
Orange County Water District
Special District
Partner
02/86-02/88
Mesa Consolidated Water District
Special District
Partner
06/83-06/86
Azusa Agricultural Water
Non -Profit Corp.
Partner
06/87-06/93
Water Facilities Authority
Joint Powers Authority
Partner
06/85-06/93
Tri-Cities Park Authority
Joint Powers Authority
Partner
06/92-06/95
Orange County Civic Center Authority
Joint Powers Authority
Partner
06/82-06/85
Brea Public Financing Authority
Joint Powers Authority
Partner
06/92-06/95
Transportation System
Joint Powers Authority
Partner
12/86
Development Authority
AI
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E.
E41
Michael A. Harrison, (Continued)
Audits of Special Districts and Authorities, (Continued)
Duties
Dates
Entity
T g of Entity
Performed
Performed
Palm Springs Public
Financing Authority
Partner
06/85-06/95
Facilities Corporation
Norwalk Civic Improvement
Financing Authority
Partner
06186-06/92
Corporation
Los Angeles County/City of
Financing Authority
Partner
06/86-06/88
Downey Regional Public
Recreation Authority
Downey Civic Center Corporation
Financing Authority
Partner
06185-06/87
Downey Water Facilities Corp.
Financing Authority
Partner
06/85-06/87
Community Development Commission
Financing Authority
Partner
06/87-06/88
of the City of Escondido
Capistrano Bay Community Services
Special District
Partner
06/92-06/93
El Barrio Park Authority
Joint Powers Authority
Partner
06/83-06/88
Banning Public Facilities Corporation
Financing Authority
Partner
06/87-06/91
Capistrano Beach Sanitary District
Special District
Partner
06/85-06194
Buena Park Library District
Special District
Partner
06/88-06/89
Southeast Water Coalition
Joint Powers Authority
Partner
06/93
Audits of Public Housin Authorities
uthori
Duties Performed Dates Performed
Santa Ana Housing Authority
Partner
1984-88
Hawaiian Gardens Housing Authority
Partner
1994-95
Pomona Housing Authority
Partner
1995
Norwalk Housing Authority
Partner
1986-1995
Carlsbad Housing Authority
Partner
1982-84,
1993-95
L
Michael A. Harrison, (Continued)
Audits, of Public Housing Authorities, (Continued)
Authority
County of Riverside Housing Authority
Baldwin Park Housing Authority
South Gate Housing Authority
Duties Performed
Partner
Partner
Partner
PROFESSIONAL AFFILIATIONS AND LEADERSHIP_ QUALITIES
Dates Performed
1983-84
1983-84, 1995
1981-83
Mr. Harrison is a member of the AICPA, Government Finance Officers Association and California
Society of CPA's. Mr. Harrison is a member of the Governmental Accounting and Auditing
Committee of the Long Beach/Orange County Chapter of the California Society of CPA's.
Mr. Harrison has been a speaker at California Society of CPA's workshops and to the California
Society of Municipal Finance Officers on technical and non -technical matters. Mr. Harrison has, for
the past 15 years, served on the Professional and Technical Standards Committee of the California
Society of Municipal Finance Officers. The members evaluate annually the excellence of
Comprehensive Annual Financial Reports of California cities. Mr. Harrison, who was with KPMG
Peat Marwick for 9 1/2 years prior to joining Conrad &: Associates in 1980 instructed numerous
KPMG Peat Marwick courses, including:
1. Regional Staff Audit Training Courses - Staff Accountants - Instructed all modules of this
five day regional audit training course
2. Regional Staff Audit Training Courses - Senior Accountants - Instructed all modules of this
five day regional audit training course
3. Regional Government Audit Training - Advanced - Instructed this three day course on
governmental accounting and auditing for senior accountants and management
.= 4. California Government Audit Training - Basic - Instructed this one day course on
governmental accounting and auditing in all of KPMG's seven California offices
Mr. Harrison has been the coordinator and/or co -coordinator of Conrad & Associates, L.L.P. In -
House Governmental Audit Training Seminars for the past 15 years. He has extensive knowledge
• of local governmental accounting and auditing issues and serves as an instructor semi-annually in
the firm's CPE training.
Mr. Harrison served as the firms liaison during their past four quality control reviews in which
Conrad & Associates, L.L.P. received an "unqualified opinion" on the quality control of the
x
accounting and audit practice.
td
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Michael A.1larrison, (Continued)
PROFESSIONAL AFFILIATIONS AND LEADERSHIP QUALITIES. (CONTINUED
The following is a list of selected continuing education courses attended by Mike Harrison during
the past four years.
Date Sponsor Topic
01/23/92 California Society of Municipal Update on Public Employees Retirement
Finance Officers (CSMFO)
01/29/92 CSMFO
02/12/92 California Society of CPA's
02/26-28/92 CSMFO
04/27-28/92 Conrad & Associates, L.L.P.
06/18/92 Cal Society of CPA's
07120-22/92 Conrad &: Associates, L.L.P.
10/22/92 CSMFO
01/05/93 Cal -State University Fullerton
02/02/93
CSMFO
02/26/93
Conrad & Associates, L.L.P.
04/26-27/93
Conrad & Associates, L.L.P.
05/03-05/93
Government Finance
Officers Association
07/26-28/93
Conrad & Associates, L.L.P.
08/19/93
California Redevelopment
Association
08/26/93
Cal Society of CPA's
10/07/93 Cal Society of CPA's
System
Investment Challenges of the 90's
Safety and Security of Securities
Portfolios
1992 Annual Conference
1992 Governmental Auditing Seminar
GASB #11, AQMD Audit Update and OC.IP
Grant Auditing
1992 Governmental Audit Training
Seminar
Popular Reporting Update for Cities
Update on Taxation of Employee Benefit
Plans
Update from State Board of Equalization
Performing Pre -Award Pricing Reviews
1993 Local Governmental Audit Seminar
Annual Conference on Governmental
Finance
1993 Local Governmental Audit Training
1993 Financial Reporting Workshop
FASB #116 and 117 - Current Issues of
Non -Profit Organizations
Employee Benefit Issues Update
L
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Nlichael A. Harrison, (Continued)
PROFESSIONAL AFFILIATIONS AND LEADERSHIP QUALITIES (CONTINUED)
12/02/93 City of Brea AB 1290 Redevelopment Legislative
Seminar
12/14/93
Cal -State University Fullerton
Accounting and Auditing Update
02128-3/l/93
Cal Society of Municipal
Financial Futures -California Society
Finance Officers
of Municipal Finance Officers Annual
Conference
04118-20/94
Conrad & Associates, L.L.P.
1994 Local Government Audit Training
07/25-27/94
Conrad & Associates, L.L.P.
1994 Local Government Audit Training
09/22/94
Cal Society of Municipal
AB 1290 and the annual filing of RDA
Finance Officers
Statement of Indebtedness
09/28/94
Cal Society of CPA's
GASB Update
12/13/94
Cal -State University Fullerton
Accounting and Auditing Update
01/19/95
Cal Society of Municipal
LAIF Investment Pool Safety
Finance Officers
02/24/95 Cal Society of CPA's
04125-26/95 Conrad &: Associates, L.L.P.
07/24-26/95 Conrad &: Associates, L.L.P.
08/07/95 Chapman University
11/01/95 Cal Society of CPA's
12106/95 Cal -Society of CPA's
12/19/95 Cal -State University Fullerton
Accounting Focus Group
01/22/96 Conrad & Associates, L.L.P.
02/07/96 Cal Society of CPA's
Reporting Investment Losses Update
on CCMA White Paper
Local Government Audit Training
1995 Session I
Local Govemment Audit Training
1995 Session II
Chapman Non -Profit Seminar
Understanding Chapter 9 Municipal
Bankruptcy
Current Tax Developments for Nonprofits
and Tax Exempt Organizations
Accounting and Auditing Update
Accounting for Nonprofits: Contributions
and Financial Statements
Non-profit Investment Guidelines
L
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Michael A. Harrison, (Continued)
PROFESSIONAL AFFILIATIONS AND LEADERSHIP QUALITIES. (CONTMUEM
02/25-27196 CSMFO Annual Conference
04/25-26/96 Conrad & Associates, L.L.P. 1996 Local Government Audit Training
a.
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EDUCATION
STEVEN DORRENEN, C.P.A.
Engagement Supervisor
California CPA Certificate 62712E
Bachelor of Science - Business Administration (Accounting) -
Biola University, La Mirada, California
PROFESSIONAL EXPERIENCE
61/2 years - Conrad & Associates (Staff/Senior/Supervisor)
RELATED EXPERIENCE
Mr. Dobrenen has been assigned responsibility for numerous audits/special assignments. This
experience has encompassed financial and compliance audits of grants, contracts, cooperative
agreements, and initial pricing proposals; indirect cost audits; performance audits; recipient
capability audits; single audits; and quality control reviews. Each of these audits included a review
of the entity's internal controls and financial management system.
Audits of California Cities includin in le audits Under OMB Circular A-128
city
t Brea
Hemet
Highland
Norwalk
Cathedral City
Banning
f: Palm Springs
Hawaiian Gardens
City of Whittier
Audits of California Redevelopment Agencies
tr
Agency
Brea Redevelopment Agency
Cathedral City Redevelopment Agency
Palm Springs Redevelopment Agency
C Banning Redevelopment Agency
Hawaiian Gardens Redevelopment Agency
Hemet Redevelopment Agency
Whittier Redevelopment Agency
Responsibilities Dates Performed
Senior/Supervisor
06/92-06/95
Staff/Senior
06/89-06/91
Staff
06189-06/90
Staff
06/89
Staff/Senior
06/89-06/93
Staff/Senior
06/89-06/91
Staff/Senior
06/90-06191
Senior/Supervisor
06/89-06/95
Senior/Supervisor
06/94-06/95
Responsibilities Dates Performed
Senior/Supervisor
06/92-06/95
Staff/Senior
06/90-06/93
Staff
06/90
Staff/Senior
06/90-06/91
Senior/Supervisor
06/89-06/95
Senior
06/91
Senior/Supervisor
06/94-06/95
1L
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Steven Dobrenen, (Continued)
Audits of Special Districts and Authorities
Entity
Yorba Linda Water
Norwalk Child Development
Program
Tyne of EntiriL,
Special District
Type of
Audit Responsibilities
Financial Staff
Local Government Financial & Staff
Compliance
Audits of Non -Profit Oreanizations
Or ang ization
Orange County Council of Campfire
Orange YMCA
Sutton Foundation
Responsibilities
Staff/Senior
Staff
Staff
COMPUTER SKILLS AND PROFESSIONAL INVOLVEMENT
Dates
Performed
06189
06/89-06/90
Dates Performed
12/89-12190
06189
06/89
Mr. Dobrenen is proficient in IBM compatible computers including Lotus 1-2-3, Word Perfect,
Accountants Trial Balance and Prentice Hall's Government Fund Accounting Software FAST-G.
Mr. Dobrenen is a member of the American Institute of Certified Public Accountants and California
Society of Certified Public Accountants.
CONTINUING EDUCATION TRAINING
The following is a summary of pertinent continuing education courses attended by Mr. Dobrenen
during the past six years.
Date tensor Topic
01424-26190 GFOA Intermediate Governmental Accounting
05/07-08/90 Conrad & Associates
L
07/30-31/90 Conrad & Associates
05/06/91 Conrad & Associates
07/15-1719I Conrad & Associates
E
10/18/91 Conrad & Associates
1990 Local Government Seminar
1990 Local Government - Audit Seminar
Internal Control Structure
1991 Local Government Audit Seminar
Strengths and Weaknesses of a Business
License Ordinance
21,
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Steven Dobrcnen, (Continued)
CONTINUING EDUCATION TRATNTNG,{CONTTNUED�
Date Sponsor imiE
04/27-28/92 Conrad & Associates 1992 Local Government Audit Training
07/20-22/92 Conrad & Associates 1992 Government Accounting and
10/22/92
CSMFO
04/26-27/93
Conrad & Associates
07/26-28/93
Conrad & Associates
12/02/93
City of Brea
01/19/94
Cal RDA Association
04/18 20194
Conrad & Associates, L.L.P.
07/25-27/94
Conrad & Associates, L.L.P.
04/25-26/95
Conrad & Associates, L.L.P.
07/20/95
CSMFO
07/24-26/95
Conrad & Associates, L.L.P.
01/22/96 Conrad & Associates, L.L.P.
04/24-26/96 Conrad & Associates, L.L.P.
1y
C.
Audit Training
Popular Reporting Update for Cities
1993 Government Audit Training
1993 Local Government Audit Training
AB 1290 Redevelopment Legislative Seminar
The Community Redevelopment Law
Reform Act of 1993
1994 Government Audit Training
1994 Government Audit Training
Local Government Audit Training
1995 Session I
Municipal Debt Disclosures
Local Government Audit Training
1995 Session II
Accounting for Nonprofits: Contributions and
Financial Statements
Local Government Audit Training
1996 Session I
G
V
APPENDIX C
Conrad & Associates. L.L.P. as a firm, under the direction of partners Mr. Ken AI -Imam and Mr.
Michael A. Harrison, are vastly experienced in the audits of local government units (all funds audit
examinations of cities including single audits performed under OMB Circular A-128, financial and
compliance audits of California Redevelopment Agencies, audit examinations of public housing
authorities, joint powers authorities and special districts). Among the Iocal government entities
which Conrad &: Associates, L.L.P. has served during the past fiscal year are the following:
All Funds Examinations of California Cities
City of Brea (Approximate budget $130 million) During 1992, our firm was selected as auditors
among a wide field of competition for this Orange County City. The City has a very active
redevelopment agency. During fiscal year 1992, the Brea Financing Authority issued nearly
$200,000,000 in tax allocation and lease revenue bonds and defeased four previous issues of the
Redevelopment Agency. The Agency has numerous owner participation and developer disposition
agreements with significance to the annual audit. The city has a regional shopping mall and
-receives various sources of grant funding subject to the single audit. The City has received the
Certificate of Achievement for Excellence in Financial Reporting in 1993 and previous years and
has submitted its CAFR for the year ended June 30, 1995 for review by the Government Finance
Officers Association. The City received the GFOA Certificate for Excellence in Financial
Reporting for its 1994 CAFR.
Cily of Palm Springs (Approximate budget S85 million) Conrad &: Associates, L.L.P. has served
as auditors for this Coachella Valley City since 1986. The Palm Springs Redevelopment Agency,
which is part of the reporting entity of the City, has ten project areas. The City operates the Palm
Springs Regional Airport and receives various federal funding, including FAA grants subject to the
single audit under OMB Circular A-128. Other enterprise funds of the City include the Wastewater
and Golf Course activities. The City has received the CSMFO Award for Outstanding Financial
Reporting and the GFOA Certificate of Achievement for Excellence in Financial Reporting for its
1989-1994 CAFR's, and has submitted its 1995 CAFR under each of those award programs.
City of Norwalk (Approximate budget $56 million) Conrad & Associates, L.L.P. has performed
the audit of this Los Angeles County city from 1986 through 1995. We have performed a single
audit in accordance with OMB Circular A-128 for each of those years. Our audits include the
Norwalk Financing Authority and Norwalk Redevelopment Agency. The City receives grant
funding from the U. S. Department of Housing Development for the Section 8 Housing assistance
x- program as well as CDBG and other federal funding. funded
The City also operates a state child
care program and a Senior Citizens action program. For each of the years 1986 through 1994, the
City has received the CSMFO Award for Outstanding Financial Reporting and the GFOA
Certificate of Achievement for Excellence in Financial Reporting. The City has submitted its 1995
CAFR under each of the foregoing programs.
ti,
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APPENDIX C. (CONED)
City of Costa Mesa (Approximate budget of S95 million) Conrad & Associates, L.L.P. was
selected to serve as independent auditors in fiscal 1991. Included in the audit are the operations of
the Costa Mesa Financing Authority, the Costa Mesa Redevelopment Agency and the Costa Mesa
Sanitary District. The City also operates a municipal golf course and receives various sources of
Federal funding subject to single audit under OMB Circular A-128. The City has received the
CSMFO Award for Outstanding Reporting and the GFOA Certificate of Achievement for
Excellence in Financial Reporting for its 1994 CAFR and has submitted its 1995 CAFR under each
of the foregoing programs.
City of Azusa (Approximate budget of $41 million) Conrad & Associates, L.L.P. has conducted
the audit examinations of the City of Azusa and Azusa Redevelopment Agency since 1987. The
City operates several enterprise activities including water, sewer and an electric utility. The Agency
has entered into several developer disposition agreements which include rebates of sales taxes. The
City has received the Certificate of Achievement for Excellence in Financial Reporting for its 1994
CAFR and has again submitted its 1995 CAFR to GFOA for review recognition.
City of Buena Park (Approximate budget of $59 million) During 1982, our professionals assisted
the City in implementing NCGA Statement #3 to incorporate changes in the "Reporting Entity".
Additionally, in connection with a fixed asset appraisal performed by an outside appraisal firm, we
successfully completed audit procedures and assisted the City in recording of those assets on their
books. With the appraisal and audit work, the City was able to remove previous accountants' report
qualifications relating to the incompleteness of fixed asset records. Conrad & Associates, L.L.P.
further assisted the City finance department in upgrading its annual financial report which has been
submitted under both the CSMFO Award Programs and the Government Financial Officers
Association (GFOA) Certificate of Achievement Program. For fiscal years 1983 through 1992, the
City has been awarded the GFOA Certificate of Achievement and the CSMFO's Outstanding Award
for fiscal 1983-92.
City of Cathedral City (Approximate budget $20 million) Conrad & Associates has conducted the
audit examination of the City, Redevelopment Agency and the Community Services District of
Cathedral City. A single audit in accordance with OMB Circular A-128 was conducted for fiscal
1986 through 1995. The City was active in financing an Auto Mail through various debt issues and
has extensive special assessment and redevelopment agency financing. The Agency has also
entered into various developer disposition agreements having audit significance.
City of San Gabriel (Approximate budget $11 million) Conrad & Associates, L.L.P. conducted the
audit examination of this Los Angeles County City for fiscal 1988 through 1995. A single audit in
accordance with OMB Circular A-128 was also conducted for each year. The 1990 through 1994
CAFR received the CSMFO Outstanding Award and GFOA's Certificate of Achievement for
1 Excellence in Financial Reporting. The 1995 CAFR has again been submitted for review under the
CSMFO and GFOA Award Programs.
CJ1y of La Verne (Approximate budget $20 million) Conrad & Associates, L.L.P. conducted the
audit examination of this City for fiscal 1988 through 1995. The City and Agency have several
owner participation agreements, multiple issues of long-term debt outstanding, and operates both a
C water and sewer utility. A single audit in accordance mith OMB Circular A-128 was also
conducted for each year. The City received the CSMFO Award for outstanding financial reporting
for each of the past five fiscal years.
� �
V
APPENDIX C. (CONTINUED)
Cite of Gilroy (Approximate budget $35 million) Conrad & Associates, L.L.P. has conducted the
audit examination of this Santa Clara County City for fiscal 1989 through 1995. During fiscal 1992
we assisted the City in a conversion to full governmental GAAP for all its funds. During 1989 we
also conducted a management audit of the City's waste disposal contractor, and single audits in
accordance with OMB Circular A-128 for 1989 through 1995.
Town ofAnnle Valley (Approximate budget $15 million) Conrad &. Associates, L.L.P. was
selected to serve as independent auditors for this relatively new City in San Bernardino County for
1991-1995. The City has a Water District and several special assessment districts. Our staff is also
providing technical support and assistance in various areas to the City staff. The City received the
CSMFO Award for outstanding reporting and the GFOA Award for excellence in financial
reporting for its 1993 and 1994 CAFR's.
City of Highland (Approximate budget $6 million) Conrad & Associates, L.L.P. currently serves
as the auditors of this relatively new incorporated City in San Bernardino County. We completed
the examination of the City for the years ended June 30, 1989 through June 30, 1995. During 1990
we assisted the City in developing accounting policies and establishing fund structure for a newly
formed Redevelopment Agency. The City has received the GFOA and CSMFO awards for its
CAFR during each of the past six years.
City of Hemet (Approximate budget $20 million) Conrad & Associates, L.L.P. was selected
during 1989 to serve as auditors of this Riverside County City. We have completed our audit of the
City, Redevelopment Agency and the single audit in accordance with OMB Circular A-128 for the
years ended June 30, 1989 through 1995. The City has several internal service fund activities and
operates refuse and water utility enterprise funds.
City of Hamaiian Gardens (Approximate budget $15 million) Conrad & Associates, L.L.P. tivas
selected in late 1990 to serve as auditors of this Los Angeles County. City. Our firm completed the
1989 through 1994 audit examinations of the City, Redevelopment Agency and Public Financing
Authority. We also conducted single audits in accordance with OMB Circular A-128. We have
provided technical assistance to the City and Redevelopment Agency in accounting matters, and
performed special reviews at the Agency's request of the validity of the Redevelopment Agency's
tax increment increase from 1988 to 1989. The Redevelopment Agency has engaged in several debt
issues, including those involving the advance refunding and defeasance of debt.
City of Santee (Approximate budget $15 million) Conrad & Associates, L.L.P. was selected in
1991 to perform the audit examinations of this City in San Diego County. We have completed the
1991-1995 audits of the City, Redevelopment Agency and Single Audit of Federal grant programs
in accordance with OMB Circular A-I28.
City_of San Jacinto (Approximate budget $10 million) Conrad & Associates, L.L.P. was selected
in I991 to perform as auditors for this Riverside County City. The City has a Redevelopment
Agency, numerous special assessment districts and water and sewer enterprise activities. We have
also assisted the City in preparation of State Controller reports for the Agency and City during
fiscal 1991 and 1992.
V
APPENDIX C. (CONTINUED)
City of Rancho Mirage (Approximate budget $18 million) Conrad &: Associates professionals
under Mr. Harrison's direction, performed the examination of this desert City from 1982 through
1988. The City receives significant hotel -motel bed taxes and has numerous special assessment
districts subjected to audit. Our firm was again selected in I992 to perform the audit examinations
of the City, Agency, Financing Authority and single audit. The City has received award recognition
under the CSMFO and GFOA Award programs for excellence in Financial reporting for its 1993
and 1994 CAFR and submitted the 1995 CAFR for consideration to CSMFO and GFOA.
City of La Quinta (Approximate budget $30 million) Conrad &: Associates, L.L.P. was selected in
1992 to serve as auditors of this Coachella Valley City. Included within the audit are the La Quinta
Redevelopment Agency and La Quinta Financing Authority. The City has submitted its 1995
CAFR for recognition under the CSMFO award program.
City of Indio (Approximate budget $2S million) Conrad & Associates, L.L.P. %vas selected in 1993
to serve as independent auditors for this Coachella Valley City. Our firm has also assisted the City
in technical issues relating to the Redevelopment Agency, pass -through agreements and the Indio
Financing Authority.
City of Carlsbad (Approximate budget $80 million) Conrad &: Associates, L.L.P. was selected in
1993 to serve as auditors for this San Diego County City. The scope of the audit includes the
Carlsbad Housing Authority, Carlsbad Redevelopment Agency and the Encina Joint Powers
Financing Authority. Conrad & Associates, L.L.P. previously served as auditors from 1981-83 for
the City.
City of Whittier (Approximate budget $60 million) We were selected in 1994 to perform the audit
of this Los Angeles County City, its Redevelopment Agency and Public Financing Authority. The
City's enterprise activities include sewer, water and solid waste. We assisted the City in addressing
issues relating to its landfill closure and post -closure cost. The City received the CSMFO and
GFOA awards for excellence in financial reporting for its 1994 CAFR and has again submitted its
1995 CAFR under these award programs.
City of Temple City (Approximate budget $12 million) Conrad &: Associates, L.L.P. is under
contract through 1998 to perform the audit of the City, Redevelopment Agency, Financing
Authority and Single Audit under OMB Circular A-128. We also have provided other technical
assistance in the preparation of State Controllers Reports, Employee Benefit Plan tax returns and
other budgetary assistance.
Cily of Bell (Approximate budget $12 million) We were selected in 1994 to perform the audit of
this Los Angeles County City, the Bell Redevelopment Agency and Surplus Property Authority.
We also perform a single audit under OMB Circular A-128.
City of Pomona (Approximate budget $112 million) We were selected to perform the 1995-99
annual audits of this Los Angeles County City. We are completing the audit of the City, Agency,
Housing Authority, Financing Authority and Single Audit. The City is submitting its 1995 CAFR
under the GFOA award program.
i
V
APPENDIX C. (CONTINUED)
Cityof Hesperia (Approximate budget $30 million) We were selected in 1995 to perform the audit
of the Hesperia Water District, City of Hesperia, Hesperia Fire Protection District and Hesperia
Redevelopment Agency. We are also assisting the Fire Protection District in special internal
control related issues.
CLty of Diamond Bar (Approximately budget $10 million) We were selected in 1995 to perform the
audit of this Los Angeles County city. We have also performed special cable television audits for
the City during 1995.
City of Escondido (Approximate budget $100 million) During 1983 through 1988,
Conrad & Associates performed the audit examination of this northern San Diego County City.
The City operates numerous proprietary activities, including Water and Sewer. The City receives
various grant funding sources, including Community Development Block Grant Funds. Single
audits were performed for fiscal 1985, 1986, 1987 and 1988 under OMB Circular A-128. In 1995
the City again selected our firm to serve as auditors through 1997. The CAFR for I995 has been
submitted under both the CSMFO and GFOA award programs.
Audits of Special Districts and Authorities
Dates
Name of Entitv
T e of Entity
Performed
Azusa Agricultural Water
Non -Profit Corporation
06/87-06/94
Banning Public Facilities Corporation
Financing Authority
06/87-06/89
Big Bear Community Services District
Special District
06/94-06/95
Big Bear Regional Wastewater Agency
Joint Powers Authority
06/94-06/95
Brea Public Financing Authority
Financing Authority
06/92-06/95
Buena Park Library District
Special District
06/88-06/89
Capistrano Bay Community Services
Special District
06/91-06/95
Capistrano Beach Sanitary District
Special District
06/84-06/94
Coachella Valley Association of Governments
Joint Powers Authority
06/93-06/95
Coachella Valley Joint Powers Insurance Authority
Joint Powers Authority
06/93-06/95
Community Development Commission of
Financing Authority
06/87-06/88
the City of Escondido
06/95
Downey Civic Center Corporation
Financing Authority
06/85-06/87
Downey Water Facilities Corp.
Financing: Authority
06/85-06/87
El Barrio Park Authority
Joint Powers Authority
06/83-06/88
C.
APPENDIX C, (CONTINUED)
Audits of Special Districts and Authorities. (Continued
Dates
Name of Entity_
Tyne of Entity
Performed
Encina Joint Powers Financing Authority
Joint Powers Authority
06/93-06/95
Encinitas Fire Protection District
Special District
06/92
I-5 Consortium
Joint Powers Authority
06/94-06/95
Indio Public Financing Authority
Financing Authority
06/93-06/95
La Quinta Public Financing Authority
Financing Authority
06/92-06/95
Los Alamitos County Water District
Special District
06/88-06/94
Los Angeles County/City of Downey
Regional Public Recreation Authority
Financing Authority
06/85-06/87
Mesa Consolidated Water District
Special District
06/83-06/86
Mojave Desert and Mount Integrated
Waste Management Authority
Joint Powers Authority
06/93-06/94
Norwalk Civic Improvement Corporation
Financing Authority
06/86-06/91
Orange County Civic Center Authority
Joint Powers Authority
06/82-06/85
Orange County Water District
Special District
02184-02/88
Palm Springs Financing Authority
Financing Authority
06/86-06/95
Palm Springs Public Facilities Corporation
Financing Authority
06/85-06/95
San Elijo Joint Powers Authority
Joint Powers Authority
06/92-06/95
Santa Margarita/Dana Point Authority
Joint Powers Authority
06/94
Southeast Water Coalition
Joint Powers Authority
06/92-06/93
Transportation System Development Authority
Joint Powers Authority
12/86
Temple City Financing Authority
Financing Authority
06/94
Tri Cities Park Authority
Joint Powers Authority
06/92-06195
Vista Fire Protection District
Special District
06183-06190
Water Facilities Authority
Joint Powers Authority
06/85-06/95
Yorba Linda Water District
Special District
06181-06191
L
APPENDIX C. (CONTINUED)
Clients Receivinp, GFOA/CSMFO Award for Financial Reporting
Conrad &: Associates, L.L.P. has a proven track record in assisting cities in the upgrading of their
financial reporting. A number of our clients have received the "Certificate of Achievement for
Excellence in Financial Reporting" issued by the Government Finance Officers Association
(GFOA) and the "Certificate of Award for Outstanding Financial Reporting" issued by the
California Society of Municipal Finance Officers (CSMFO). In addition, both Mr. Harrison and
Mr. Al•Imam serve as technical reviewers in the CSMFO award program. The following cities
received financial reporting awards during the period of time that we served as their auditors:
GFOA Award CSMFO Award
Town of Apple Valley
X
X
City of Carlsbad
X
X
City of Vista
X
X
City of Buena Park
X
X
City of Desert Hot Springs
X
X
City of Norwalk
X
X
City of Palm Springs
X
X
City of San Gabriel
X
X
Water Facilities Authority
X
City of Hemet
X
City of Highland
X
X
City of La Verne
X
City of Costa Mesa
X
X
City of Rialto
X
X
City of Carlsbad
X
X
City of San Marcos
X
X
City of Downey
X
X
City of Santa Ana
X
X
City of Brea
X
X
City of Azusa
X
City of Rancho Mirage
X
X
=- City of Diamond Bar
X
City of La Quinta
X
Experience with Redevelonment_Agencies
�- Conrad & Associates currently or has previously performed financial and compliance audits of the
following redevelopment agencies:
Indio Redevelopment Agency
Brea Redevelopment Agency
Santa Ana Redevelopment Agency
Buena Park Redevelopment Agency
Rancho Mirage Redevelopment Agency
Stanton Redevelopment Agency
Rialto Redevelopment Agency
L
V
APPENDIX C, (CONTINUED)
Experience with Redevelopment Agencies, (Continued)
San Marcos Redevelopment Agency
Azusa Redevelopment Agency
Vista Redevelopment Agency
South Gate Redevelopment Agency
Downey Redevelopment Agency
Temple City Redevelopment Agency
San Jacinto Redevelopment Agency
Westminster Redevelopment Agency
Norwalk Redevelopment Agency
Palm Springs Redevelopment Agency
Carlsbad Redevelopment Agency
Cathedral City Redevelopment Agency
Desert Hot Springs Redevelopment Agency
Escondido Redevelopment Agency
Banning Redevelopment Agency
La Verne Redevelopment Agency
Gilroy Redevelopment Agency
Hemet Redevelopment Agency
Highland Redevelopment Agency
Costa Mesa Redevelopment Agency
Delano Redevelopment Agency
La Quinta Redevelopment Agency
Whittier Redevelopment Agency
Bell Redevelopment Agency
Pomona Redevelopment Agency
Hesperia Redevelopment Agency
Our experience with redevelopment agencies is extensive and includes the following:
+ Assistance in the accounting for developer disposition agreements (DDA`s) and
owner participation agreements
+ Computations of obligations under pass -through agreements
• Assistance in the use of tax -sharing agreements as an economic incentive
+ Consultations regarding the financial benefit to the City resulting from
redevelopment activities
• Tax increment financing of projects
+ Consultations regarding low -moderate income housing requirements
k;. + The establishment, merging, and adding of project areas
• The use of rehab loans in redevelopment agencies
L
ter... ...
APPENDIX C. CO►VTiNUED
Experience with Redevelopment Ag
gencies.Continued
• Assistance in issuance (and refundings) of Tax Allocation Bonds
• The establishment of redevelopment fund structure
• Use of City loans and advances
Experience in Auditing Public Housing Authorities and Programs
Name of Housing Authority Tune of Audit Dates
Pomona Housing Authority A-128 Single Audit 6195
Hawaiian Gardens Housing Authority
Norwalk Housing Authority
Carlsbad Housing Authority
County of Riverside Housing Authority
Baldwin Park Housing Authority
Santa Ana Housing Authority
South Gate Housing Authority
OW
A-128 Single Audit
A-128 Single Audit
A-129 Single Audit
PHA Financial and Compliance Audit
PHA Financial and Compliance Audit
A-1021A-128 Single Audits
PHA Financial and Compliance Audit
6194-6/95
6/86-6/95
6193-6/95
6/82-6/83
6/83
6/83-6/88
6/81-6/83