HomeMy WebLinkAboutDIEHL, EVANS AND COMPANY - 1960-07-26044
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{'SUMAX'' VATEH ,, OF tnil UCEIPTS AND DISBURMMNTS
EXHIBIT A
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EXUIZIT I3
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ClP' OF HUi'WiC1N BEACH
= _ COMT4EPii8
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Zr.. %mln Lion included detail examinations of revenues and tuts to
RssT, ,� dealt with the city lrcttauzer< 'Dish �rsementa *ar tested by reference
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to aplrraved emands, variants, p&y oll records and tither supporting evidence..
" d cash ba-anc�O at,.June. 30, 1960 were reconciled :with the balances confirmed
ixeswt ti ua bg* the banEt.
Patagr4ph 53657 of the Govarn=nt Code of the Stag of California
" state, that6 "t q rsaag-k..et vAlue of tho n•:curittes securing acrive or '�nmctjve
deposits A411 fe at least, 10 percent in excess of the mount of the deposit,
. or►r�d ,b them bits: the-#outtt of the deposit 4,tall not e;ctecd the face value
#te tatal a unt of funda ton aeL' June 30, 1960' tzas $684,852AT,-
In or4e, to;c ly trit t `tile VIrGV4;"10"%A of the Gaveromertt Coda. noted sbo to
aiiidligiGtes *tot : . market vetlue-O£:,,Kt least $153,X17 38 is necessary. Aq of
Un ' 3 � 0 sctirit (V, lslscea intetsst ,hy the tocurClry first Nati,r?rcal 2o'.,ik.
C r `rar o. al es of o t' .t%t rhiclt'.i sop" xi a' s l*' l�it00 short; of e
eoltttr rnee tiaagC�e yet 'of apptc�„ritaaak'oly v2,17"4i?Q
`4�Son4f P1t4��T� -��krClr4 of.Stt�..400 wt t j0 yeor'4 etd�S�j J4ine, 30s x959
c `` r L ,i)
Year Fn3ed June 30
M creast '
1959
�
196C3
{Decrease)
''X�7iit2 V t:ri $
9W),223
E,00,23$
113,IL5
$'a1e& tBx Fi
Z04,543
123,161
24,218
,,,;
l icen$e . and peirmitx
98„2ez
145,5S
47,375
City ,fivnrt fines
9,637
13,508
3,871
=
inte�st on investmentss
5 $5{�
22,470
1662.tb
Franchise payments
2p,498
22,670
2,172
E
Beach' rentals and concessions
;.4,178
19, 900
5,122
71 to"rse rentals and fees
13,929
22,215
8,286
'1`rldlrkr park x`entiAls
t21,530
1294180
1,650
County at'Ii="�r4aza service
32,450
54,250
21,800
�Yol;ties a►t4 e4:c'sents
71,824
61,129
t1016953
ate ' i 1>d
26,265
22,114
(40151)
'Traci eugi.n4 firing atad inspection
$2.357
52,357
rez�rra�,menta.,-
enf�ineerin8 projects`
79,,030
17,000
(62,a30) ,
Parking neater collections
25,845
2i,391
1.,546
Stare` gas. tax agportiantwnt
gFr,2SCt
t36,2;ia
r�x �e�scl� Ii�ensa
a} +t t't q dent
48,553
52,140
3,387
8ubd v aton perk and
rzer-" tipn fens
2,850
76,900
74,050
Rater revenues
51., 803
seer. 4onneation fees
12,116
72,116
a�per. reirt'ss�t:s
49w432
7,51I4$y42%)
TOTAL
16'99 Sli
2 1 77 14&
487.633
The lncri�ase to tevonui s. is sncounted. "or as
i`allovs
G ,•'` : t,
s�ty$j�'4i4
�d,y�yxYNfydtyyl�Sy{334{tfk�3T+�ii
p
ign�iF,Y1.I1
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ipla wFsx�N�yQ'}Ify
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The property tax xj,te increased from $1.28, in 1956-59 to S1.33 in 195940
accounting far, increased taxes of approximately $37 000. increased assessed values
from 470,723,320 To $76,278,430 provided an additional $76,000,
K
Thu increase 'in 11censes and permits is Niue aJmost .entively to building
pe lts wt�ickr i,s irdice ive of the increased building activity in the city ever the
pa,,sf: year,
State Zas tC funds are appo,!tloned to the cities .on a p�pulat.ion basis
n acccirdance with Sections 194 __nd 2107 sf the btreeta and Itighua7s Code, The
experk(4tures of Ojese funds are closely supervised znd controlled, and are the
subject Q-F-speciel annual reports to the State Controller and State Division of
Higinvays. A mriximum. of 407. of the total gas tax money acorui'.g to th.e credit of
the>ty each yew may be open'; far maintenance purposes, The remainder is
restricted for construction of streets and highways. the city's Qppa>tionment of
as taxes are rgta$zreo in the State Treasury until they .are budgeted. After a formal
*7'.
r�"g+�r eonit�act;3s en�<ered iato betwee-n the City and the State,, the money to cover
601 't t4i 0t:, s depokltmd in the City Treasury. During One current year was
buu'g te:ii and.pa dtie the City.
r" Section 9751„.21 of 1t4o Cj;ty6rdtnance Carle each sumdivider umu4+'
S'0 fssr;,each lot $xi ;evev, develo,vea ecsntr� .ping ,over 5 lots.. �Th.ese £us�c�s
'ara.,restricedcar''ecuieitan af, land for parks, > id recreatiu purposes xrrt2je'.
x
zaig o, yeax''tt-s ';fkacadr� abu�ti fed tie $76, 9'00 as ca+�red n,2, $S#5 in the pr4ee�iing
Map tare 35 4 %d i6 ,,6� the t�c�ntingtar. belch Aturaicipa7t '=code the pity
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A04 t t , liu tin art B ea Rate I3eAprrrtr zit snr, tar tlurtt%ctn4ir` . Bearer
atiairtrf'uptds 3t.-c96C tit ca�1.y revenua.s� dbivar� Pram these
�A"p� yW ��h�. tM1 .. I�j� ,p�.�ftY�. j �y� a.�(r�7�.. �{ (� Y. ��(� y �i �p }y�y rE
, AVO �Jw`iu : L1it iovia 1f u'Sil�5'+r!in�abl.����fa of 1M �.L�i,w- ZAe+�. r kf+�w
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N> 0FT
x end turns are couVared by department for the years ended .Tune 30,
1959
and;, 060 46 veil ows
Year Ended June �Q�
Increase
=F,
1959
1960
Dearease '
, endral Covernment, Depart. ntal-
'tl ty-Clerk and Admlaistration
33,408
60,326
$ 6,918,
City %ea;,,uret
4,584,
5,253
669
;; city Attorney
13,707
14,205
493
,
1'3 anstiz g Department
19,795
2l' im
1,307
'r01 lar,CQ 3 s o3ce
8,668
Z10-ction depart' nt
3,036
2,724
(3 2)
love nt butldiogs
13,092
16,307
3,215
'Amicipat tratIer park
38,76J
38.,Z33
<628
4uaitial court butldtAg
4,104
16,664
12,560
'rttersi, 'OoverricIfou-degar=eatai;
" Deft dervice
56,182
59,394
3,212
die ti r rct
72,910
80,947
8,037
0otu Uxl ty promotion
22,546
21,913
f623
hourance and ourety bonds
39,87E
36"978
(2,898)
fn pecCidn(
3,8GF
13,831
(36)
uest O04 Couuty Water Board
rl,506
11905
Pith Otiopral
33,$93
41,635
7,142
rublte'' Ufetlr:
polke del)9rtmetm
187,2ZO
233,635
46,4? j
dire'de�p rt di
107,945
13s,189
27,144
80,i *tmaat
20, Q1 i
1+4,�'33
24,517
vi:1 de ez�
14
36
12
zil�iaexii�'�tFd Btdctbmfstraio3,339
53,223
t58,116
,8tx���a� ntoi.°� �ir�,r�, acid �traet,
,
1,84,633
299445
1,141412
taz r'f it_lt:s. ' ;:
5,685
7,261.
1.,576
,
a*d;4isposat
3,741
31,583
27,842
" at, FoIligau c� 'ana 4isp6' ' 1
74,50
83,1.9I
}
t&,688
A"ulce 5@4
2,Q43
30fl2,1b
v
f�i,__ ra�tt,¢y ��f {
r• �+
t}
4
277, 231'
Yllir-
la�lt3,5$
^i4+�yyk.�±'�}
�3JJ5,,676�
yr,+i.;(,
vu*.}w:Fi
' 1+k�,hlt,,fry.fyw�,nyypp,.,'roA,{jy�
AB}6x
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••Y#'7 ,0
yYF* �+'�i7h4i8k4 ..
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'.+•.o+..o.a
kw^574 M
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ACREMENx
.
(AUDIT SERVICES)
THIS AGREEMENT wade and entereA. into by and between t1he City of
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hereinafter referred to as "City" and DIEHL, WANS
AND COKFANY, hereinafter referred to as "Auditor", both of whom understand
t,
�cs fallo�s :
'
4
1. Team of Agreement. This agreement shall be a continuing agree-
ment subject to cancellation by City or Auditor upon sixty days
`
writtu4 notice prior to July first of any year.
2. Duties of Auditor. Auditor small:
A. Audit all of the books, e-ords, fuoe and all rather tinancia
documents and information of City for each fiscal year ending ;dune 30th,
including a. verification of fund balances at the beginning of the audit;
period. Akidit<all of the books, records, funds and all other financial
documents and inf irmation of 1911 Improv=ent A4t assessmetct districts
under the jurisdiction of the City Troasurer during the yeaz.
The Audit stall be made in actordanae with generally accepted
Municipal Cash Audit StAodards, and shall specifically fallow, to the
extent applicable, the audit procedures recommeeded by the California
tommAttez on Municipal Accounting as detailed in a p>sblz.tzit on. entitled
l{chetk .twist fir the, Audit of the Financial Records of a Wifurnia city",
E
,
hegeinsaftor referred to as "Check List",, dated rtarrh 1 6, and published
by the League of California Cities and CAl,ifoxrniEa Society of Certified
Accourtantsy provideai, however, the: scope of, .at.Adi,t shall not be
limited to that provided in tlti� aforementioned.publication in the event
thn the potstitular circumstuoaes 'vrtrreat extensioo thereof.
Irk tho--i weq that circumstances ditsclogod• by the audit indicete
thAt Aor detAllod t#fic tt on is required in addition to that:-Whi�ah
WAN$ AN6 o*P+ANY,
.t-
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wpuld be -sufficient under ordinary circumstances, aud(tor agrees to
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provide the City with all Ascertainable facts r4ative to the extra_
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ordinary ciircumstanees, together with as estimate o£ the additional
.'JI,
coat thereof', it being expressly understood between the parties
�reto that fees: relating to such eXtensiq%k,z of verifieatIon pro-
:
ceduregs are -additional rites, as i-.es relating thereto are
not coAt pla_ed as being ,- cpe of services to be per--
-formed undar this contract.
B. Supply to City .a letter M*ytry on trotstive cash audits.
C . Supply to City on annual, audits repo?, t prepared in accordance
Frith the recommendations contained in the Check Ust,
1
f,
D. Deliver each letter or audit report not later than ninety
days following the closing of the kook~ of City for the period
i
coverP4 by said letter or report.
E,. Submit audit reports contemplated herein to City Council
together with x-ot less than OlAt copies Gh�reof
t; eest . b Cie City S%ala pay Aue totr the suer of
Doi l t; at zsob urn s may be s}abge ae t y zgr ed to s provided r�
aectidn c of this pant for the services performed by Aveitbr; such
payment: to be made as fnl lows
A. ewfoui'C of the to ,al ftount upon the delivot:y to dnd
etc e��' once by the City Cour.;41 of each tentative cash Audit zaade
dMrtnj.the raurse al" the fis;tel year?
Ht die' etk 44iuilth of the total amount upon the delivery
2.i,
to 4a, �.;e _acceptance by the City Coi cil of the final audit; rv"rt
far the cztt~ir fiscal y or.-
C le is: toted by botTi part �:e� 't #tst art Adjustment in the 'fee:.
'VOil Iie n6oegsaty Rioter rive k rite if the 'City PT the Mditot
rMOM, MWO, AND P.OMPAN't
dcsire to propose an adjustment in the total payment required of
the City under the terms of this agreem:aat, either Marty may submit
- In writing prior to se-venty-five days before the first of July of
any year the prnposec ;hange in fee. Upon receipt of the ,mitten
proposal the other party ohal.l accept or reject it with.iz fifteen
h
days. upon acceptance of the proposal the receiving, party shall
so sigaaify by sigxaizxe a ropy thereof. tt signed fee thac►ge proposal
sh=ll constitute an :amendmentto this agrerme4t.'
r
4. Default. if Auditor shall U41 to make any audit delivery, as
herein required, the City may, at its option, cancel this contract
and upon givi;ig notice to Auditor of such cancellation discontinue
Auditor's .services, without further liability to ,Auditor for services
rendered or contractual rights hereunder, or City may elect to enforce
this Agreement }ry requiring, Auditor's compliance with the terms hereof..
S. Amen its. This agreement may be Fzwevided or modified only by
: rltten agreement signed by both parties and failure on the part of,
alther party to enfory c any provision of the Agreement shulY not be
con,atraed: as a wAiver of the right to rampel enforcement of .such
pr.Qvisloa or provis:oins,
6. A!ss�,i&nmeot. khiz ,,Agreement; shall not be assigned b� DIEHL, EVANS
AND CQ2tFANY. without the wVittera .ansent of City,
f Y ptatices,. All notices. herein :required shill be in wr€t:in4, and
deli.veted In person or si*nt by re lsrored mail, posta4e prepaid,
IROl����atTTi�ionshs�i of Paryatits.pxtL that the contractu&j
Lyill{
iays[kunderstcr{od}
..�1 LaUt,4003hik of the a?�udi,tor to L.he Ctty .i� t#dal. of i�idtip�:s..d}.:�.4 C.i}[]4+r43ArtN,4Y
tfw. imz v✓-E the parties have hereunto aet their hands on this:
/4,
CITY OF TY
By
MOANY
qP
(AMIT SERVICES)
i
THIS AGREEMENT :wade and entered into by and between the City of
'Huntington Beach hereinafter referred to as "City" Awl DIEHL, EVANS
.�.
7;.-'
uditor" both of whom underst,sud
AND COMPANY.f hereinafter referred to as "a3
•
.
as €allows
1, Term of A reeement. Yhi,s agreement shall be a continuing agree-
ment subject to carrgellation by Oity or Auditor upon sixty days
writtou notice prior to July first of acaf yc r,
2. Duties of Auditor. Auditor aha►il:
E`
A. 4i.t t: all of the boons, recor4a,, funds and all other financial
documents and information of Oity for each fiscal year ending Jur-e 30t s,
'
including a verifi,cae:lon of fund ba] noes at the beginning of the audit
period, ,Audit all of 'tbt� books, records, funds and all other financial
rb
documents and information of 1911 Improvement hcl assessment districts
vndel t«e jurisdiction sat the City 'treasurer during thca year,
The: av dit shrill be grade in Accordance vithi generally accepteal
Municipal Audit standards, aid shall apecifi;:41ly follow, to the: extent
applicable, the audit 'paroceduros reto amended by the California Commitzge
on Aunic,iptal Accounting as: detailed it a publication entitled "Check
Ust :for tho Audit of the 'Financial Records .,f as Cali.forr;ia city",
f
<<
hereinafter referred to as "Check List'% dated March 1965, .and pub? i,ahed
'
by the Ipague of Caxli£oru a Ctti,as and Californi.a Society of Certified
n
Pulilic Atcvuntaaats; provided, however, thfr scope of Audit shall zuot be
{ Iimt to that ptov4(,W,to the atfat ntioned publication in the evettt
4
tl *t thn ps,rttcgl#r caret s warrant astens:tnn thereof.
% thax n�rent 'moat oir;%Oseances disclosed by the au4t inalioste
,
thait,;imore det Ied +tsrificacia is required to additicaUro thmt �thia~ii
}tiS4K "btetf�rtiY
Jiiia:.'� d'Y& �1'Iid1J9�
�
.;{. r,,,,y : •.xs,bV.AUF`mlidlit&ivAum:ii:, .,.i. ...v.di. a_.a.....4,a,.
-••r'tim3'e�iKiYtWl:.a9xul.,aa.s .. ' .._ _.-. .., ,ic,L"'
.si:1i
wotjld be sufficient under orci o ry cirtumstancen, auditor, agrees to
r
r
provide the City with all ascertsizva`bla fac�ti relative to the extra-
orclti)ary ci.rcunsta oceso 'together with an estimate of the additional
cast thereof, it being expressly understood between the parties hereto
that fees reisting, to such extensions of variticst_Da procedures are
x-
additional fees~. as ebe services rel,at:tug thereto sre not contemplated
as being K thin the scope of services to: be performed under this
>
contract.
1�:e Supply ;to City a letter ___Suazt4rl w.^, on tentative interim auditti,
w
C. Supply to City annual. 4udi t reporL prepared i.n accordan.cc
Stith the reco=endations contained irk the Check Li.s.tk
D.. Deliver ::ach letter. or audir report not later than nibety
day following the of the books of city for the: 'period
covered by said letter or report.
E. Su# mi.t audit reports cootemplate4 herein to City Council
together with not less than copies for quarterly audits and
copies for annual :Nadi is
City shall pay tho Auditor on a per diem basks
as follows-.
Per diem rate
per hour
Fr gcipa 10.00
Supervi#*ice, 0 `
,: �
Set�.iF air kh.�,+tcs���pnt<pnyty:.1�t
.lut+itroiaccountant
Cleri al.. '' _fir • v..M�
.
horsed *on the est utated timli -veguire4 the auditor guaxan e+et n a maximum
annual cs�. of I':�tf�ir
It is pe�ts�`3�+� bruin peartiea that An -W,ustment in the, fee
E,
wii e,nsscsrr a y 06mr�tto 014, if aKoe City of the auditor
desire to propose an adjustment in the total aayment required of
TM
the Cityucsder the terms of this agiceerrent, eith er party may submit
in Writing prior to seventy-five days before the first of July of
Q
any year the proposed chainge. in fee. Upon receipt of the written
C
proposal, the: other party shall accept or reject it within fifteen
F yyy .
days. t;4n acceptance of the proposal the receiving party ahsl.l
so signify by signing, a copy thereof. A signed.€ee change proposal
shell censti,tute an amendment to this agreement.
3
f
4. Default. If Auditor shall fail to make any audit delivery, as
hereft required, the City may, at its option, cancel this contract
r-
and upon giving notice to Auditor of such cancellation discontibue
�
Auditor's servicis, without furthwr liability to Auditor for sevvjtces,
t=
.--:
rendered or contractual rights hereunder, or. City may elect to enforce
i
this Agreement by requiring Auditor's compliance with the terms .hereof.
S. Amendment. This Agreement may be amended or modified only by
written agreement signed by both parties and iailoxxe on the pert of
either party, to enforce any provision of the Agreement sha;l.l not be
construed as a waiaer of the right ro cospei enforcement of such
provision or provisions.'
6. ;ssi nment. This ,Agreement shall not be az;ssipe-4 by 91FM, ;e.ttANS
.ANO COMPANY without the vr,ittan tnsent of City.
7. EALices. A.H notices he eit 'required shall be in. writing, and
d.�li�rered in person or sent I;Y registered` mail., postage prepaid.
`
�. kelaeionshi ofPatx._'i s. it u understood that the contractual
relatiO00.1p' of the Auditor. W clime City Ls that of independent contractor,
I $! vas 01 11tho paticti.es have nere.:"aca vet L4,oir hands on this
A,UDf«pa CITY fW1, IIUP INGTO 'B
��.
*BY
V4 HL, ZYA" .gran COMPANY
„r..«...,:t
�y� ,}y§
AGczla� MNT
(AUDIT SERVICES)
THIS AGREEMENT made and entered into by and between the City of Huntinaton
S
hereinafter referred to as �"City" and DIEHL, EVA:NS AND re^
�
inafter referred to as 'Auditor", both of whom understand as follows:
�11 �
1, Term of Agreement. This agreement shall be a continuing agree_
w
ment subject to cancellation by City or Auditor upon sixty slays
written notice prior to July first of any year..
{
z
2. Duties of Auditor. Auditor shall:
A. ,audit all of the books, records, funds and all other
F,
financial documents and information of City for each fiscal
year ending June 30th, includxytg a verification of fund bal-
a
4nces at the beginning of the audit period.
The audit shall be made in accordance with generally
ac4epted Auditing Standards, and shall specifically follow,
to the extent appl>oable, the audit procedures reco=ended
by the California Committee on Municipal Accounting qs de_
M1»y
tailed in a publication entitled "Check List for the Audit
of the Financial records of a California City", hereinafter
xiL-f'erre,d to as "Check List", datea March, 1956, acid published
by the League of California Cities and California Society
of Certified Public Accountants, provided., however, the scope
of audit shall riot be limited to that provided in the afore-
mentioned publication in the av,.tnt that the particular
irtum5tar'ces. ttrra t extension .riereof.
the } vdnt that circumv.:ances disclosed by the audit
indicate That hose detailed; verification is Vequiwed in
addition to that which would be sufficient under ordinary
circumstances, Auditor agrees to provide the City with all
ascertainable 'facts relative to the extraordinary circum-'
stances, together with an estimate of the additional cost
thereof, it being expressly understood between the parties
hereto that fees relating to such extensions of verification
procedures are additional fees, as the services relating
? }
thereto ere not contemplated as bei:nt within the scope of
,*
services to be performed under this contract.=�
B. Sueply to City a letter after completion of interim
audit work.
C. Suppiy to City copies of an annual audit report
pregared in accordance with generally accepted auditing
standards.
n-.. Deliver erch letter or audit report not later than
ninety hays 'following the closing of the books of the City
j
for thericad covered by said letter or report.
3. Payment bv:City. City shall pay the Auditor on a per diem
�+
basis as follows:.
Rate Per Hour
Partner $22.00 - $26.00
Audit Manager $16„00 - $18.00
Senior accountant $12..�?0 - $16.00
Assistant accountant $ 9.00 - $'12.OG
$6.00
Clerical
Based upon the estimated time required the Auditor guarantees a
maximum annual fe:a of 3,225.00 ,
G
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it is expected by both parties that an adjustment in the fee
will be necessary from time to time, If t1he City or the Auditor
� m
g
desire to propose an adjustment in the total payment required of
the City under the terms of this agreement; either party may sub-
mist in writing prior to seventy-five dgys before the first of July
r
of any year the proposed change in fee. Upon receipt of the written
�
proposal the other party shall accept or reject it within:fifteenY.
days. Upon acceptance of the proposal the receiving party shall
so signify by signing a copy thereof. A signet fee change pro-
'
posal shall constitute an amendment to this agreement.~
4. Default. If Auditor shall fail to make any audit delivery,
as hcreiT 'required, the City may, at its option, cancel this
contract and upon giving notice to Audicor of such cancellation
discontliue Auditor's services, without further liability to Auditor
for services rendered or contrictural rights hereundpx, or City may
elect to enforce this Agreement by requiring Auditor's compliance
with the terms hereof,
5, Amendment, This Agreement may be amended or modified only by
written agreement signed by both parties and failure on the part
of either party to enforce azy provision of the Agreement shall
not be construed as a waiver of the right to compel enforcement
of such provision or provislons>
5, Assfgnment. This Agreement shall not be assigned by MtHL,
VANS ANDCOSPANY without the w_itten consent of the City.
7. No_tices. All, notices herein required shall be in. writtng,
and delivered i.n.person or sett by regiatered mail., postage
prepaid
t
k
8., Relationship of Parties. It is understood that the contractual
relationship of the Auditor to the City is that of independent
r,
contractor.
ORIGINAL COPY
for Master File
BE RETURNED
,AT
'A
(AUUT SERVICES)
TO CITY CLERK
THIS 1GREEMIT made and entered intic, by and betwen the City of unr.J24),=n
Beach hereinafter referred to as "City" and DIEH1, EVANS AND COPeANY, here-
iAafter referrod to as "Auditor", both of whom understand as follows:
1. Term of A regiment. This agreement shall be a continuing agree-
ment subject to cancellation by City or Auditor upon sixty dayf,
written notice prior to July first of any year.
2, Duties of Auditor, Auditor shall:
A� Audit all of the books, re.-ords, funds and all other
financial documents and information of City fo.: each fiscal
year ending June 20th, including a verification of fund bal-
once$ at the beginning of the audit period.
The audit shall be made in accordance with generally
accepted Auditing Standards, and shall specifically follow,
to the extent applicable, the audit procedures recommended
by the California Coozittee on MunicipalAccounting as de-
tailed In, a publication entitled "Check List for tiie Ardit
of the Vin,apgial Records of a California City", hereinafter
' referred to ak; "Check List", dated Harch, 156, and published.9
by the League of California ritiea and California Society
of Certified Tublic Accountants, provided, however, the scope
of audit shall not he limitAd, to that provided in the afore-
mentioned publication in the event thzt the particular
eircumstonces warrant evuension thereof.
Xn the W;ent that tireowstaocea 4istlose4 by, the audit.
;*,od-le-ota that more detailed verification is required in
NAVAM
r addition to that vh+ch would be sufficient under ordinary
circumstances, Agditcr agrees to provide the City with all
c'
ascertainable facts relative to the extraordinary circum-
stances, together with an estimate of the additional cost
`
thereof, it being expressly understood between the parties
hereto that fees relating to such extensions of verification
procedures are additional fees, as the services relating
thereto are nor contemplated as being within the scope of
services to be performed under this Contract.
i H, Supply to City a litter after completion of interim
audit work,
C. soi:ply to City 20 copies of an annual audit r-port
prepared in accordance with generally accepted auditing
standards.
D. Deliver each letter or audit report not later than
ninety days foll.owung the closing of the 'books of the City
for the period covered by said, letter or report.
3. Paayment by City, City shall pay the Audsfor on a per diem
basis as follows`,
Rate Per Hour
ParMr. ex $20,00 — $25-00
.Audit Hanager $1.5.00 - $18,00
Senior accountant $12,0 — $:14.00
Assistant accountant $11.00
Clericel, $5.00
Lased upon the estimated tiw-e required the Auditor guarantees a
maximum annual Zee of Z 625.00
n
A Auk.,
It is expected by both parties that an adjustment in the fee
will be necessary from time to time. 1£ the City or the Auditor
desire to propose an adjustment in the total payment required of
the City under the terms of this agreement, either party may sub-
t '
mit in writing prior to seventy-five nays before the first of July
P,,
�k
of any year the proposed change in fee. Upon receipt of the written
R
the other
proposal party shall accept or reject it within fifteen
days, on acceptance of the proposal the reeeiving party shall
so signify by signing a copy thereof, A signed fee change pro-
posal shall constitute an amendment to this agreement.
4. Default. If auditor shall fri.l to make any audit delivery,
as herein required, the City tray, at its option, cancel this
contract and upon giving nnice to Auditor of such cancellation
disceantinue Auditor's se:ui.ces, without further liabilit; to Auditor
for services rendered or contrzctural. rights :hereunder., or City may
elect to enforce (,his. Agreement by requiring Auditor's compliance
with the terms hereof.
Amendment.„�This Agreement may ..a amended or modified only by
vritteu agreement signed by both parties and failure on the part
of neither pF.rty to enforce any provision of the Agreement shall
not: be construed as a waiver of t:he right to compel enforcement
of such provision Pr provisions,
6. Assent. This Agreement zshall not be assigned by DU7HL,
VAS A14D COXPAW without the written consent of the City.
L Notes s,. All notices hereinrequired shall be in 1;�triting,
... and delivered in person or sent lay registered mail, postage
x
,' .a��wPu'4462{a
•:�_ Je . .. ;RANI'
n
8. Relationship of Partie„ It
is understood that the contractual
`
rtiationship of the Auditor toj
the City is that of independent
;
contractor.
IN WIT14ESS IMREOF the parties
have hereunto their hands on this
6th day of May
19 68
s AUJITO
CITY OF HMINGT . ,
y -
E"
Mayor
ATTEST:
s:-
city
.-ifiROYFIa RY CITy CUa7NCTL
AGREEMM
00
,
(AUDIT SERVICES)
w
THIS A6ttJ4&tEN'T made and entered into by and between the City of
Huntington Beach ,hereinafter referred to as "City" and DiEHL, $VAAS
AND COMPANY, hereinafter referred to as "Auditor", both of whom. understand
` as follows. ,
1:.. Term of Agreement. This agreement shall be a continuing
agreement subject to cancellation by City or Auditor upon
sixty bays written notice prior to July first of any year.
2. Duties of Auditor. Auditor shall:
A. Audtt all of the books, records, funds and all other
financial documents and infbtmati.on of City for oach.fiscp-1
year ending .dune 30th, including a verification of fund bal-
ances at the beginning of tht audit period.
The audit sba)t be made in accordance with generally ac-
cepted Auditing Standards, and shall specificalty fallow, to
the extent applicable, the audit procedures recommended by the
Caiiforxxi.a Committee on Municipal Accounting as detailed it a
publication entitled "Check Dist for the Audit of the financial
Records of a California City", hereinafter referred t( as "Check
Lisel, dated March 1956, and published League of
Ca4 fornia Cities and California $ocie4 mortified Public
Accountauts., provided, however, the scope of audit shah, not
be limited to that provided in the aforementioned publi ati.on
in the event that the particular circumstances warrant extension,
thet'cof.
I�
N the event that circumstances disclosed by the audit
indicate that. more detailed verification is required in �Ld-
^ '•
dl.tion to that which would be suUicient under ordinary
circumstances:, Auditor agrees to provide the City with all
ascertainable facts relativa to the extraordinary circumstances,
togetNer with an estimat'n of the additional cost thereof, it
being expressly understood between the parties hereto that
i fees relating to such exteasi.ons of verification procedures
fare addicional fees, as the services relating thereto are not
contemplated as tieing within the scope of services to be per-
formed Mader this contract.
tB. Supply to city a letter Quarterly on tentative
interim audits.
C. Supply to City an annual audit report prepared in
accardar?:e with the recomwendations contained in the Check
List,
D. Deliver each letter or e;udi.t report not later than
ninety days fbiilowing the ciosing of the books of the City
:tor the period covered by said letter or report.
l;. Sutwit audit reports contemplated herein to the City
Council together -wi.th not less thav, 12 copies for
gzmrterly audits and 1 R copies for anauai audits.
3, Pa ens _ City shall pay the Auditor oa a per diem
basis as ollovst-
11
S
date Per Hour
Partner $ 16 XA)
!�
Supervisor t2,Ct3
Senior accountant 10.00
140
Semi -senior accountant 9.00
,*
Junior accountant 8,00
�
Clerical: 3100
Based upon the estimated time required the Auditor guarantees
Y..
a maximum annual fee of
4
It is expected by both parties that an adjustck.nt in the
fee will be necessary from time to time, If the City or the
Auditor desire to propose an adjustment in the total payment
required of the City under the terms of this agreement, either
party w%y submit in writing prior to seventy-five days before
the first of July of any year the propos+-4 change kn fee. Upon
receipt of the 4ri.ttea proposal, the other party shall accept
F
or reject it within fifteen dayo, Upon acceptance of the
proposal the receiving party shall so signify by signing a
copy thereof. A signrd fee change proposal shall constitute
un amendment to thie agreement.
4 Default. Sf Auditor shall fail to make any audit delivery, as
herein required, the City may, at its option, cancel this contract
and upon giving notice to Auditor of such cancellation discontinue
Auditorls 8ervi.ces without further liability to Auditor for servicea
rendered or contractual rights hereunder, or City may elect to
enforce this Agreement by requiring AudLtor's compliance with the
terms hereof, '
�a��S1+:W.(eSa�gAidv4tl�.nklu;"" .:.
5. Amendment. This Agreement may be amended or modified only''
by written agreement signed by both parties and failure on the
part of either party to enforce any provision of the Agreement
shall not be construed as a waiver of the right to compel en -
forcemeat of such provision or provisions.
`
6. AssignMp This Agreement shall not be assigned by DIM,
VANS MID COWANY without the written consant of the City.
7. Notices. All notices herein required shall be in writing,
�r .
and delive ed in person or sent by registered mail,, postage
x
prepaid.
8, Relation h p of Parties, It is understood that the con-
tractu�i relatirnship of the ,auditor to the City is that of
independent contractor.
STD{ WITNESS VHMOF the p,%rties have hereuntu s-_hei.r hands on
this 3 rd day of Ma`t' l9
AUDITOR CITY O
I-
ELLIS C-OtEHL,G.P.A. (,5ws-M$0)
B RYN 8,:E; ANS,G.P.A.
WIN. G. PF.TERS,C,p. A,
ROLifJ E.CUMM{NE,S•, C. P. A.
4COR4 E S• RONRI(;, C. P.A..
40HH A. RAAHERG, C. P: A,
Bear CienL:
DIEHL,EJANSAND COMPANY
CERTIFIED PUBLIC .ACCOUNTANTS
,t'r
OTHCR OFFICES AT:
flt.
$QS NORTH Bk RC!i ST'RE'ET
SANTA ANA,CALIFORNIA
307 SOUTH LINCOLH STAE.ET
SANTA MARIA,CALIFORNIA
}
KIRscRtY 2-4453
WAk>+ur 5-E579
535 NOR+H HSTREET
�!
LOMPOC,:CALIFORN'A
h ".
Rc4c.r a-62"
t
Current cbrmges :n the penalty provisions of the Internal Revenue Cade
makes It-, important that you give particular attention to the Code requirements in
respnti%� ,_ rformation returns (Forms 1099) on payments made in the course of business
tc otlie)s. A sum*nary of the requirements for ailing such returns is attached. £or
1962 there is no change from prior years in these requirements.
In toe past the civil penalty for failure to file a form 1099 was $1,00 for
eac:b such form with a maximum of $1,000.00. Because of the nominal amount of penalty
where only a few information returns were required it is probable ghat this section
of the law may not have been observed as meticulously as it should be. The penalty
for failure to file is unchanged for IS162 but Section 6109 of �-he Code requires that
an esnplpyer's idertii<ication be used on all returns. statements ur documents. This
requirement includes form 1099. Penalty for failure to include such identifying
number if $5,00 for each such omission. This inadvertent oma ssion of twenty required
10991s, could carry a penalty of $120 00 - $1.00 for each failure to file and $5.00 for
each. number thus omitted.
We suggest that you do the following:
1, If an employer's idGntific4tion number has not previously been
required make immediate application for one on form SS-4 obtain-
able from the Social Security Administration or t:le Internal
Revenue Service. This number will be required on all tax returns, Q =
.etc.. as zaell as the information returns.
2 Review your records so that ti-e requirt;nents for filing form 1099
in each 'instance will be met> Fiscal year clients are reminded
that these intormation returns are for the Calendar Year.
3. lfe sure to timely file the required form 1099s and the related
sucsory farm 1096 with the:
Direetar, Western Service Center
1�uildi'ig 230, toaeral Depot
Ogden, Utah
lme!,I�, filing it on or befakv 'february 28, 1963.
Your observance of the above steps will insure avoidance of the possible
;r
penalties im respect to fili-cgs for the Year }.962. It is important that you fully
familiarize yourself with the requirements for filing these information returns silica
there will be a further enlargement of the penalty area in respect to payments in
1953. For instance the payee's identifying number will also be required. Failure to
supply it carries a penalty of $5.00 for each omission.
For 1963 the penalty for failure to file an i.nfor•-:�tion return in respect
to dividends and certain interest items is increased to $10.00 for each required
form. Failure to furnish the recipient a statement also carries a $10.00 penalty.
Thus failure to file information returns in respect to five stockholders receiving
$10.00 or more dividends in 1963 could result in the following penalty,
Failure to file the information returns $10.00 each
Failure to furnish the stockholders a statement '0.00 each
Failure to include Employer's identification
number 5.00 each
Failure to furnish payer's number 5.00 each
Total for each 530,00
Five stockholders - total penalty $15000
To repeat, it is important that the procedures previously outlined for
1962 be followed; avrangements be made to obtains the proper ide-tification number,
nos:;-ret names and addresses in respect to 1963 transactions; proper acrumulation
ox' amounts ultimately reportable on the information returns.
If any question arises, we shall be pjca ed to have you call us, We
are resorting to communicating with you in the form of this letter because of the
time element involved. We are currently reviewing our files and will prepare an
application for identificariou number for all partnerships, estates, trusts, and
corporations where our files indicate that none is in existence. We will forward
this to you for signature in the meat future. If you wash us to prepare your
information returns, it would be of co sidera;ble help to contact us as soon as
pos6ible and furnish us with .a list of names, addresses, and amounts of rent,
coamisstons, professional fees- interest, etc., as outliners in the attact° d
sugh-;%any of requirements, paid during 1962.
Very truly yours,
DIEHL, EVANS AND COMPANY
Every
person (whia,h terra iry Ludes partnerships, trusts, Pstates,
corporations, etc.) matting payments in the course of a trade or btasiness to
another person shall
make a separate information return for the total of
•:a^h payments during the calendar year..,.
Payments referred to are as follows
'
-t[ y V;,
z (a)
Salaries, wages, fees, (including professional fens such
'
as legal, audit, architect, etc,), commissions and other
compensation for personal services in excess of $600.00
and not included oa a form W-2.
;s'' a
1. Note that if amounts reported on a W-2 plus other
compensation. exceed $600.00, Form 1.099 is required
regardless of amount not int!luded on the W-2.
2. Travel and expense allowances for 'which itemize
accounting .is not required of the recipient are
inpluded.
3. Fair market value of property other than money is
included.
4. Compensation paid a partner by a partnership Ls
not included.
interest, rents, royalties, annuities, pensions and all
other fixed or determinable income totalling $600..00 or
stare to any person other than a zorpor.atian.
(c)
Dividends of $10.00 or more,
(d)
Patronage dividends, rebates or refunds, of $100.00 or
more.
items
tNar need not be reported are;
(a)
Wages re;porteal on. form W--2.
(b)
Payments of any type (other than patronage dividends,
rebates, or refunds) to a`corporation.
(c)
Paym&nts to a non-resident alien reported on 'Fora 1042,
(d)
%stributiotns or .salaries o members of a partnership
reported .tin Form10ix.
(a)
Distributions to beneficiaries of trusts or estates
reported oea form 1041.
SUiMARY OF REQUIREMENT FOR
FILING FORM 1099
(CONTINUED)
�
(f)
Rent paid by a tenant to a real estate agent,
,^ �
(g)
Payments made by a broker to his customers.
`
(b)
interest on corporation bonds including tax-free
f n;
covenant bonds reported on Form 1042.
`
(i)
Undistributed capital gains of regulated invest-34
went companies ;reported on Fora 2439.
(Y M
h
w
h
irls •T i,,=�, {' 4.
}
Mid ,. X
1
April 24, 1969it
�
Diehl,,. vx""!. ns and Company
1910 North Bush Street
ata Anal California32706
ntl.
Re are retoming here with, as executed copy of the
a8reoment, for auditing for the City of unntln too
y$(�
B och for the 1 -70 f so"- . year,
Paul t Jones
City cl k
Enc..
kirk .
.•
. ,. ... �iS t ..f::er-ey. .,_ .. -.., ...ISAiY'..R:VLe11iiLervY tw'. .�:r._. ,.0 ... r .•u ,.
.:. &^v
DJ EH L, EVANS AND COMPANY
�
CERTIFIER PUBLIC ACCOUNTANTS
VWS C. WtNL, C--,A. fR25-19!je) OTHER OFFICt,5 A7:
&RYN $.t`rANS,C PA IQ)C# Ni]liTF4 BUS" $tREEi
e�
>C$ EASr MAM 4tRCr-t
WEN G. Ptrt R5, C.P A.. SANTA ANA, CALIFORNIA 92706 S.at17'A t6Aq(RtA.GAORls iA
ZONAW H. PETtli5ON, C• P A.
.
hlkbC-A.V P-44•36 WhL S-2LIFtfF
bitNALD £. tALidktAYta +«',. P.&,
+ °Y
,i
L. PcIzA 5tXtItz%C. P,A. April 13, 1969
635 NOR7YI H 57}tE£t
WAR D . AA8E Ckl ittfiC..?: A,
-
-'
OOi{tF A,RA,Aflt4G,C.>, A. LOMPQt,.CALfFi9fifl#R,
REcEN7 4.8252
t
Mr. Moyle illerc, City Administrator
�.
City of Huntington Beach
f
City Hall
;
Huntington Beach, California
Dear !fr. killer;
1�e are reviewing our audit agreements at this time to. deternine
the adequacy of our fees for the audit of your City so that you may knew
the basis ozx which to budget for the year 1969-70. This review is
occasioned by several factors:
1. professional level accounting help is in great demand and
in short supply.. We find that all public accounting firms
are paying increased wage rates for stuff personnel, much
greater than would be expected for cast of living increases
2, Other overhead costs of our firm .are increasing at least
equal to cost of living increases..
3, Tlie activi.t es, of our clients its increasing, sometimes by
efpansion into new areas' such as enterprises, sometimes by
f,xpansion of the accounting system in procedures adopted
to conform to recommendations of the National Committee on
Governmental Accountiag, and in almost every case by ex-
pansion of services rendered to taxpayers and a resulcant
requiremeat for more personnel, new revenues, bond issues etc.;
The first tvo factors effect our per diem rates and the third
affects the hours of audit time for future audits,all of which necessitates'
our request for consideration of revisions in the maximum fee established
for the audit of ,your City.
Our fee far the audit for the year ending. June 30, 1969 has previously
been eata`41ished at a aiaximrzf, of �2,625„.00 and this will be the basis for
our billing for the current year,
We propose a n =aximam fee for the audit for the fiscal year *..
ending Jung 30, 1.970 of 43,225.0- We dl.l of course bill, you only for the
actu4 ti%a charges extended should they, be less than the 'sbove,
doe ti ..-.�."b.a_.. o_.
:
.. ..
•
M1
City of Huntington Beadz%- April 13, 1969
If the terms of the enclosed agrei..ment are satisfactory to the City
z: Council one executed copy will be sccfficient for our files,. if you have
any questions regarding the enclosec! agreement or if we can. be of assistance �
with slay Accounting problems please call on us at any time.
Very truly yours,
DIEHL, EVANS AIM WyfPANY Y
By
Ett$ C. iYiC3AAr C.`? C;ilh2ffi-t£35G%
skyu S. tk%K .G'. P, A,
iY*NV,4
L. Prlr& a $". cotR,t, 0t A:,
W)k40 x:Orle.A.:HtR,C.FA.
JOHN. A.RAADVR0, C-> A
QtEHL, EVANS ANO COMPANY
CERTIFtEO PUSLICACCOUNTANTS
'lwo NC,1Fi Y'tt S; SH wYKtt£T
SANT A-i'4ik CALIFORNIA 92706
WMBER:.Y 2.4453
i'r. Moyle KI LleZ
City .Admiaist«:ro- k' r
City* of llun.tlu ton BAach
P> 0. Boxy 190
Huntington Beach, California
Dear air; killer:
April. 15, 196$
T.4..
OT}4ZR $FFtCCS AT.
r"
^13 tASI MAW STAF;£T
SANTA MARIA,CeWORNIA
'
'fYAa2+ur 5-257'8
t'
535 NORTH H STREVT
x5MPx7C.CALIFgRNL4
RtcExr
Vo are reviewing our agreements at this tilaa in relation to increased
ge rates .. r qualified personnel as well, as increases In overhead costs
h`
k These factors affect our per diem rates and require consideration of
revisions In the maximum fee previously established for the audit of your City.
E
Re propose a change in our maximum annual fee of $12MO which 'will
increase the previous maximum to $2,,625.W We awe ve inserted this amount in
1 the standard.audit agreement, encloser]. Should our exemnation require less
ticte than anticipated you will, of course, be billed only for the actual time
incurred but not in excess of $2,625.ftil'.
Ve are extremely pleased to be associated with the City ,of HuntingtonI
'Beach in e tapacity of iodependetlt auditors, We trust that we May continsle to �
provldct the: City of lluntington Beach with a 'high level of professional assistance.
in all areas of financial responsib,ll,it7., it is to this end that we have developed
a specialized staff of profosslonal. accountants In the field of government accounting.
btoad experience in governmental accounting has al.loved us to offer for
c,7oat ta;tlon and assistance the comnlnexd knowledge aztd many yearx of experience
of a staff of municipal experts.
If the teraas of tho enclosed agreement are satisfactory to the City t ounall
one executed e py v411 be suffici.e4t for our files. if, you have any questio-as
regar4ing the enclosed agreement or If we can ba of assistance with any accounting
problems, pl.e'Ise tal.l on ass at any t tme .
Very truly yours
+ r y 4 f f llll H;DVL, S AND C01HPA1�X
1 f'
M,4YO 40 64,
f
j
DCEHL, EvANs AND COMP
CER-n FJ' D :PUBWO ACCOUNTANTS
ELMS C..DIEHL, C. P, A,tM,5-1956} OTHER Ag FtL£S AT.
1910 NORTH BUSH STREET
,r
6R*MB,EVAN5,C.RA.. 307 SOUTH )ANCOLN STREET
WiN G.,PtTL'RS, C,P, A. SANTA ANA,CALIFORN.}A 92706 SAWA MARIA,CALIF0R:N1A
y
+
9CHAZ •* H.PETERSON,C.P..A, KINSCA-V 2-44 %3 WALWUT
R4LIN C.CUMMSNSFS,C.P. A,
:. DUNA47k C.CAL1,AHA4,C,P A. T_
b L,PzTER 3CMrAER,C.R A SrS NORTH Ai STREET
NIA
,
,
' JGHN A,RAA11E;M,C P. A, May 19, .. 1966 6 -
'8as
825
REasNT s:z
�Y
�$+
The 'Honorable City Council
f
City of Runtington Beach t1t, € t*..tl , ,,vL;'_ArU t,
;` m
'Huntington Beach, Cali,fornx a �',.. "`x '`0
� �
F,
tentlemen;
�z
In connectji,a with our exemination of the financial statements of the
City of Huntington Beach for the Year ending ,tune 30, 1966, we have completed
is certain phases of out=,,;Lie covering the ouar'ter ended March 71, 1966. Under
the terms of our engagement, certain phi of our annual examination are con-
1 ducted on as interiv basis at quarterly irvals, throughout: the year, However,
it is only at the close of the fiscal yes. , June 30, 196(, that our examination
iA sufficient in scope to permit us to express an opinion on the financial
statements of the City.
Our interim exa-%i;natian for the quarter coded March 31, 1966, included
a rp-view of the reconciliation of fund caste balances as reflected on the books
of the, City° Treasurer to the fund cash balances recorded on the City Finance
N-.partmentls records a -ad balances shown by bank statements.
We also reviewed cash collection activities of various City dppartzents.
We noted that receipts are not turned over to the City 'Treasurer for deposit to
the bang da .l t., We advocat:o daily deposits of all rash receipts from all City
Departments :to provide for strongrf control over City funds. The establishment
of & Central Cashiering System should correct this situation
Expenditures were ;tested Dy examination of vendors' invoice, pucchase
orders, approvals, and such other substantiating evidence deemed appropariato in
the circumstances.
Investments were reviewed and reconciled to book balances.
ff
l
DIEHL, EVi Ns AND COMPANY
...
66G tfOaYl+ 9rts;ss StH4TT
,. -:�
SANTA ANA. CALIF,
KaM8XAtV 2-4457
December 31, 1962
� =,
.
City Council
,
City of Huntington Beach
Runt ngton Beach, California
Gentlemen
Ta connection with our recent examination of the financial
statements of the Cite of Huntington. Beach for the year ended .Tune 30,
1962, we cotavleted certain, tests of the Treasurer's ,.ash accountability,
k
This vas a normal part of our regular e'xami•aation and included a. recon-
ciliation of Treasurer's cash balances to amounts co:-dirmed direct to
N '
us by the banks., 'Revenues we're exa ti.n�;ed by re;eret oe to remittance
;advises, numri.call.y controlled revenue dorur*eits and miscellaneous
Treasurer's receipts.. Tests were Wde to .assure th:4t reve:eues received.
'by the Trausurer were ptoperly deposivee With the tank. Disbursements
'
were tested by reference to appm,,ed de -lauds, varratts, payroll records,
s;
vendors invoices, and other .upportigg, evidence.
Our examination also included test of 1911 Pict Special Asses-
sment Funds to th.6 extent deemed necessary to aasuro accountability for
these ,funds and compliance with pertinent legal requiremetts relative
to cash accountability.
r
In our opi,ni.on,, the fin€ itial statereats included in our report
for the year ended .lane 30, 1962, fairly paws tt tl,e Treasurer's cash
balances at :that date and the results of fund transactions for tine year
theta ended,
l
Very truly yours,
lDIEHL, EVa4ns A's3D COMi mw
v i)
ej
yg �j yam; �a�y
- a City Huntington Beach '.
Califomia
{ t
August 15, 196
Diehl Evans and Comp
$06 N. Birch, Stroet,..
Santa ,n v C if or iu
t its r George Ftohrig
Dom 91 a
The City Council of the City of ffuntingtoA
Beat ,j at their regular meeting hold August 6th,
1962, directed that your Comp* as Auditors
for the City, he requeat-ed to caaftr-t audit
or the boo" of the City, Troasurar as ok June.
30th4 1962.
T o City Treasurer, 'Witlias V. Clegg, re-
tired as of that data, and Urn. Betty L. IDiekoft
> we;$ appointtd by the Council l Aetiug City
It will be appreciated it your ,cirri will
handrC 'i S�tB i a t ,�'+CSu earliest Q+CABA'�*e1'�ion000
x.
i.mearo y ,yours }
Paul C. Janes
City, Cler
to
t
t
ee.
zHl_ EVANS AND COMPANY
�
� C[]P`r#t=tH23 F4041C A'C#"..41U?2'ri4N7S.
8`Li4 iNfi#f SM 0'Hi F� uTY1Ci`[
SAN`t'A ANA. CAt„ F.
April 2, 1562
h
-. VAUI James, Clty Clerk r,
City Of MIntingtotx Beach
City Hall.
rstixi ttsia 11eacPa, cal.iforn,ia
` Dear Hc. .lanes
�e are rosentl cia as a-udltors for a
� Y od � � plar6xissatcly thirty ..
municipalities. $4acently, we hn:tc boco c;xncerned with the procedures by
vhich ;°rose of these tities are nak.in fr m petty cash. While
we have not experienced acty di>ff"cu.ltias in this area to date, we feel, that
r_ertain measures shrruld be Initiated to prec«ude ttie possibility of any "
unfortmate exparleaces in tie fut xre
As you my be ava re, the gt-yerimim tode provides that all expen-
ditures, other than pfnyroll., and certain 'eposir ref.x0s, auth-arized from a
treasu; is eapartzentat tr-sst fund, r-,vivi, )e aapvr(,ted 11l thelegislative
body Rtior to issuing a warra^xt., mile:vs tivey evnft'r,- to a budget r1dopted by
ordinance, In which case they ray be appr *ved In the past few
year's* he evor# it"has . bee -me tontwn pratt£ce aftong j-hies to allow certain
itaor expenditures to he vaiv from an, ItVrett �ke'tty cash account which is
k reir#aarsed by S*neral warrant at sorry future elttte<
Re, of course, are oot gaalffted to parrs ran the legality of this
practice, a however, -we have no objectl,>n fret: an accounting standpolat pro-
vided that certain procedures are cl-,sel.y adhered to `a the operation of the
petty cash accou.-it. 6ubstontially, Chase Are as follows,
1. The number of petty cosh 4i:sburse nts should be ;kept tc to r,;tni=wr.
2. Bach disbtarses#unt andtxlI be limited to a stinor ammaat,
a. All`disb;urteomts should be retarded on a potty cash voucher and approved
iq a- responailxle official
, Petty task 'vouchers should be tupported by Invoices, sales tickets or sou
other such evIdeoce. when possible,
5H A Ustian� should he attached to the �rtizbursa at vcotlaer for revie�; by
the counc t showlm the rai„ pient purpose, and atcaoult of each expenditure,
If thetouneil rtvi.etvs arty a re igter f the w:a,rt�#srts this lis:ticx� should
he '-oupplement to the warrant rogirtcr
-6," FAch petty '54'oh Vouchor should be adequately outilated to prevent reuse
`.ti'� dy..>...,_<.. ...3..`.,x«.1`tv�tN:Liv:�iS�tilAef,:tiFa"S3,Yrrn•.. ......... ... ..._._._>,.... ....
7. Control over the petty
cash OvA rhould be vested inone individual and
u-tWer no c rcuosta.ic&o
eliculd It be cc -mingled with undeposited receipt..;
�
Special attentive will be gf:ren to this area Li our .future examina-
tions; to assure t1tat sct c .,ate prvc•rdt.res are in effect to properly conteol
this type VL'nC T! trle
tI )st th-vt t!As C1L'Y;§t1 v411 �'d of ssistaklct to you
.in euaWating toe ad-g nacy
of y dur pzosettt pr-Nce4ureai
Very truly* yours,
DIM, Z ANS A" COMPAVY
i
COUNCILMEN
DONALD A. SHIPLEY
MAYOR
ERNEST H GISLER
ROBERT M- LAMBERT
-tAKE R, STEWART
THOMAS H WELCH
PAUt- C. JON:ES
CITY C<ERn
JANIES D PLUNKLTT
'CITY ATTORKLY
BETTY AIEN.OFF
TREASURER.
OFFICIALS 7
DDYLE HEELER
ADM �+ SNI$M. ATtVF: OFFft:♦R
CITY OF 'r a� veacl
.......... ....... ,...... � .�.........r.......... -----------
P.0 BOX 190 CnLIF0RNIA
92648
April 27, 1966
MEMORANDUM
To: Doyle F4iller, City Administrator
From- F. B. Arguello, Director of Finance
Sub J Independent Audit Agreement
BRANDER O.CASTLE
ASSISTANTAOiIINISTRATOR.
rF
JAMES R. WHEELER
DIRECTOR OF PUSUC WORK$
FRANK H. ARGUELLO
e''-.--
V INAUCE DIRECTOR
jOHN SELTZER'
POLICE CHIEF
`
DELBERT G. HIGGINS
#
FIRC CHIEF
ViNCENT L MOORHOUSE
yyvxy�
+q• ng`'
LIFEOUARO CHIEF
OLLIN C. CLEVELAND
� t
BUILDING DIRECTOR
atM
EDWARD R- STANG
WATER ffUPER-4T9NOEHT
as '
I have perused the audit service contract presented by Diehl,
Evans and Company and find that it is in order.
Since 1963, 1 have had ,several discussions with our auditory
and have, until goat managed to convince them that the 'Z, 000
maxium was sufficient. They have been willing to wait until
we had a better picture of our possible progress and; direction
before enterinI.,, into fee adjustments. Ile have now reached
this point and we have reached a mutual agreement that a
2)500 maximum is more eguit,ablc to both parties. `Je evil'., of
course, be billed by the a.udi.tore only for actual time
incurred. 'but not in excess of the $2,5CO fee limit.
If the City Council should desire some change in the field o
audit perf;rmance, ,it is possible that the Council might prefer
to discuss 'this matter farther with some of the partners of the
firm. in this event, a discussion meetiig could be set at some
early future rate. if the Council would prefer to enter into the
contract as .> uImitten there all copies should be executed and
returned to this office or distribution.
Very truly yours,
Frank B. Ar llo
dcDirector of Finance
DiF.HL,EvANS r+NG COMPANY
'
CERTIFIED PUBLIC ACCOUNTANTS
CLL(S C. OICHL.C.R' A.r192S+1956): OTHE t OFFICES AT:
r '
-
I91P NORTH GUSH STREET
SPY S. EVANS. C, R. A. 307 SOUTH LINCOLN STREET
WI N G, PETERS, C. R A. SANTA ANA, CALIFORNIA 9Z706
,SANt'A MARIA,CALI F'ORNIR
DONALD H. PLTERSON.C.i2 A, K)"ERLI 2-AAS3 1//ALHu's S-Z:S7H
'
'
ROUN E.CUHMINOS,.C.P, A.
DONALD E, CALLAHAN C.P. A. April 14,. 1966 53S t+ORTH H STREET
- +
GL �
J
L.PETER SCHERER C PA. LOMPOC,CALIfORN1A
JOHN A. RAABERG, C.R A.
REo[N7 6.82S2
"
City of f intingtork Beach
City Ball
�#
Tiunting"_on llezch, California
Attention: Mr. Du lc M ller t City Administrator
Centl.emen-
The present maximum fee arrangement for audit services Getween your
�
City and Diehl, Evans and Con:prany has been in Fyffe^t since 1964.
tvre have contracts in effect with almost sixty municipal and special
�
governmental agencies. As provided in these contracts it is 'necessary from
j
time to time to review the, maximum ;annual fft�es. Several fact ors affect the
k
fee requirement;
1. Growth and increases) activity withiai our clients organization.
Z. increased complexity of reporting requirements,
3. Increased gage rates necessary to attract and bold capable menibers
on our staff.
in our audit of your records, time chargas, have exceeded the maximum fee
as s�;aw>•: belcaz�i:
year Tinge Charges Maximum FPO Difference
�
1963-64 12,42 ,63 S2,000,0r) $423.63
1964-65 $3'711.58 $2,000.00 $1.,733.88
Vle propose a change in our maxim= annual foe of $500.00 whir h will
incre so the -previous =wz1,Szuw to $2,5 C.M T,*e have inserted this amount in
the standard audit agrtmm!nt, enclosed;. Should our extamivation require less
.time than anti.ci,patod you will of course, be ',filled only for the actual time
incurred 'hut not in excess of 2,500,=
T?e aretreciely pkt-a sed to be associated with the city of Huntington Beach
in. the ±tcapacit7 of independent auditors. ,fie trust thi t 90 may continue to
provide the City of I1untioe,con Beach -witha high level 'of professional assistance
City of Huntington 'Be � - April 14, 1966 �k
to,r
in all areas of financial responsibility. It is to this end that we have developed Ai
a specialized staff of professional accountants in the field of government accounting, r
Our broad experience in governmental accounting has allowed us to offer for
consultation and assistance the combined knowledge and many years of experience gym.
of a staff of municipal experts. �
if the terms of the enclosed agreement �,=e satisfactory to the City Council one
executed copy will 3e sufficient for our files. if you have any questions regarding ,4
the enclosed agreement or if ve can be of assistance with any accounting; problems,
please call on us a^ any time.
�v }r
Very truly yours
m.
T
TigC. d
Enclosures
b
f
Statement on
z
t
Competitive Bidding for Audit Services
k iwv"y 3iS iY 73iE, it'a M 1C�13ai1 ��tfpUFt6 nix 41' '11M,': toitM � o{i�{:� 6F 1'U 14JWk 2 .n. �.9
Specica Bulletin 1961A Price 25 Cents Apa t I, 18f i
A JOINT STAMM ON
} C01PETITI9E BIDDING FOR. AUDIT SERVICES TO GOVERMENTAL AGENCIES
BY THE
GF &%4L CO211 TEE ON ACCOUNTING,
XMCIPAL FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANtiIlA
AND THE
COh =EE ON LOCAL GOVMMMAL ACCOUNTING,
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTAN'rS
Competitive bidding can be an effective too;. in government when properly
used.
It enables a governmental agency to obtain cavmodit es of the highest
possible quality at the lowest possible price.
This is a useful method only if the items pmrchased can be measured by
exact specifications. A regwtst for 'bids on a commodity or item of equipment,
for example, can specify quality, grade and other recognized, specifications
for which acceptable standards have been formulated and the delivered
co odity or equipment can be tested to ensure compliance ,dth these standards.
Units of measurement and performance for construction pr-ojeAs can also be
determined and specified.
Competitive bidding, however, is not an effective procedure in arranging
for an independent audit.
It is not effective for the simple 'reason that an audit is not something
which can be covered by rigid specifications. An audit is a professional
service requiring professional independence,skM and judgment. An independent
auditor should have as much latitude as he :may find necessary to be assured
that the records are in order and that the system of accounts is functioning
properly,
'rot mazy govermental agencies contime to call for competitive bids in
obtaining the servir�es of independent certified public accountants,
' Wote: This Is a revision of the A AIA Joint 5tatemant published in WOA.
Special Bulletin 1:955B, April 16, 1955,
i
�I
This confusion of principle, incidentaLLY, is confined a most exclusively
t to independent auditing services. It is not common practice for government
officials to advertise for bids in order to engage appraisers in condemnation
actions,, lavyers to represent them in court, or architects or engineers to
prepare pans and, supervise construction of a building or a highway.
It may be that _ public. officials continue to use competitive bidding in
the belief that it is legally required red with respect to professional services, � :-�
If this impression exists, legal opinion should be sough'c axe order to settle
the questions
ty
If selected by a process of competitive bidding, the independent auditor
will approach his work with an awareness that he has somewhat demeaned his
5; profession in accepting an engagement on a bid basi:a Moreover, he v ll.
generally be hampered by either overly detailed or inadequate specifications
�ddch he bad no part in fravii.ng and therefore_ =y be r � er�v3,rezi: to perform. troxic
-which, in .his professional judgment, need not be done, or preeLuded from doing
imrk which he knows ought to be done.
Independent auditors should not be subject to arbitrary dictation in
matters pertaining to their -work, and auditing should not be placed: on the
lowest possible standard of performance which can be made acceptab2,e.
This statement is not intended to thal.l.enge the right of governmental
officials to obtain some estimate of their expenses.. Once a govern-
mental agency has decided to engage an independent auditor,it ought to discuss
the engagement vith the auditor It beli.evez to be the boat qual fled tc render
the most satisfactory service. Ai"ter the independent auditor has surveyed
the fiscal records and. 1de»tified the principal ,probl.ems,it should be possible
to develop an understanding on the scope of his audit and on the ;length of
time which id1l be required for its compl.ati.on. The .independent auditor should
then be in a position, if required, to give an estimate of the cost of the
service wbi.ch is not }rely to be exceeded unless he encounters unforeseen
problems
This approach to the: selection of an Didependent, auditor, refl.ectir4 a
legit gate concern for costs, is perfectly reasonable and acceptable. But no
one gains -- indeed, everyone is 111. ely to louse -- when au.;itors :are selected
by compet,itiva 'bidding: an the 'basis of the lowvat posstble price„
It would be in the beat Anterest of concomed for politioal sub-
divisions en.+ploying & certified public acao=tant or firm of certified public
accountants to ;do so in the same way in which they would select an attorney,
doctor, or *User professional advisor -- choose the =e in whom they have
confidence, di=as the work to be dir,,e kNrd agxee on the basis for the fee.
r.3flt,a �n us<n.
GERA .D WS PEASLE l! k
CSYMPIOD PUSWC ACCOU{TAN7
!`
tz� THIatlsrrt-rl6 ffS'R�ET
t� `" g,'�,�
-
SEAL.,. StACH. CALIFORNIA
s
April 19, 196 Z
o-
City of Huntington Beach
Huntington Beach
rW.
} Aye'
California
Attention, ,Mr. .Doyle W aer
h
City Administrator
f. .
Gentlement
Yt: is a p?easu,. to present for your consideration the attached rec I=_
mendat on for accounting procedures in. the Water Department of the
City, of Huntington Bead, California. 'You will, appreciate that those
rectari mexidatio.ns are in the nature of a, general outline of steps to be
Estimates of cost are shown for each stop based on the probable, time
required to accomplish the workat a per diem rate of $75. 00. The
total cost is estimated at $750. 40 based on total time required of 10
clay.
It is expected that employeses of the City will be utilized wherever pos-
sible to assist in the completion, of the project in order to hold the cost
to a minimum.
Completion of the ork can be a.ccornplish+ed by July 1, 1961, and the
system be in operation for your next: fiscal year.
Resp"tfully submitted
CZ, WY Peasley, C. P. A,
Enclosure
x
ii;ECCJ1V MENDA.TIorr*
'
�M.
That the Water Department of the City of Huntington Beach have
� A,
established for it a complete set of accounting records that will
t
reflect the investmentin facilities, recognize depreciations., provide
a ,guide to financing, and give an .accurate accounting of revenues
" z
$
and expenses in order that realistic water rates can be maintained.
a
Steps to accomplish above recommendation with estimated time
�
requirement;
}
1. Survey present procedures, forms and office -
facilities. I day
Z. Prepave a detailed manual setting forth the:
c
procedures to be followed and forms to be used
in recording, the various accounting transactions
of the Department. 4. days
x 3,, $et -up the necessary ledgers, records and
record therein. the -results of the r oerat on
of the Water Department from Its snception
through June 30, 196=. 4 days
s It will be necessary for the. City to furnish a
detailed list of al . receipts and disbursements
affecting the Water Department for they above
mentioned period.
4. Follow up and s tpesrvise the installation of the „
re, cOmmended procedures, I ds.y
fn conversation with Mrs Doyle 'Miller it was _suggested that for a, time
it rnlght be advisable for me to come in periodically and past the ledgers
a and; prapare statements; Should, this meex with your approval 1 would be
available for this wort at the same per diem, rate..
F•
ilk
z
f"
ME:HL, b:vANS AND COMPANY
"
- CERTIFIED POSLIC ACCOUNTANTS.
806 NORTH. BIRCH. STREET
:
r ..
SANTAANA,CALIFORNIA
,.
.;
KIMOCALY ".4483
March 23, 1961
!
t'
,fir. Paul, Jones, City Clerk
�
City of Huntington Beach
Huntington Beach, California
'hear 'Mr.. Jones;
,
A
In rftgard to our recent discussion with reference to awendment of
the budget ordinance, we are of course, riot qualified to comment
Y
on the legal aspects of the 'problem. These should be .referred to
the city attorney. However, it appears from an accounting viewpoint,
that in order to provide additionel authorization for expenditures in.
those departments which have exceeded: the; budget, it will be
necessary to mend the budget by ordinance.. We understand, that
this is passible clue to the fact tbat ;actu8l ,revenues haavo- exceeded
estimates. Tt will also be ner.,Nssary to amend budget estimates of
revenues to cover the„ increased appropriation for expenditures.
',ate vo ld like to point out that eucunbranc-, accounting, which the city
has not r-t adopted, is essexatial to rigid 'budgetary accounting..
ordinarily the :adoption of cxacumbrance accounting precedes the use of
the proceuure wherein the budget is adopted by ordinance. E:-I,cumbrance
accounting providos a Twathod of controlling purchases for which funds
may not be lej;aal'ly available,
if we can be of any assistance in elstablishing, am enr-utibr?ance system
or if yov would lie to disouta this problem further please call. We
wr1.11 'b2 every happy to pro -vide you with any assistance you may require.
Vary truly yours,
j
DIEHL, VANS AND CM -ANY
'i
By, .L'r, Go
DIEHL, EvANS AND COMPANY
CERTIFIED PUBLIC-Accouu'rANT5
SANTA ANA, CALIPORNIA
XIM$CALY 2-4453
Kay 1, 1961
r"";-.
Mrs. Raul ,Jones, City Clerk
City of Huntington Beach
Huntington Bea,,A, Californ'
As per our telephone conversation of recent date,. T am writing
to confirm our audit arrangements for the year ending June 30, 1962- As
1 discussed with you, i feel that a fee arrangement on a per aiem rate
with 4 guaranteed maximums would be of benefit to the City as any savings
to time would be passed on to the City. As you are attiare, our present
agreement provider? for a flat fee of $1,100.00 per year for auditing
services. Our current schedule of per diem rates are as followa.:
par them rate ! r
oer hour
Principal S 10,100 j
Supervising CPA. 9.00 !
t; Senior accowntant 00
Semi-senier accountant 7�00
duslior accountant 6.00
Clerical 2.50
On the nbasia of the foregoing rater it is anticipated that our
feo for the year 1961-62 will be substantially the same as for the year
1960.61. 'We are prepared to gua,rautee a maxl.m= fee of $1r200.00 -which
would include aA reasooable amount of consultation in regard, to your
Accounting problems which are graving with the City] as well as assistance
in proparation of year ead reports you are required to file, with the State.
I am ancYosing one copy of an Agreement providing for the above
=, difktatians. If tbes. changes meet with your Approval such additional
copies as required should be prepared and necessary action _taken by the
cotxlsci3 .
i Am look -Lop A corward to our meeting on Wednesday in anticipation
of g vixxg what assistance i can in regard to your current budgeting problems.
Yours very truly-,
I?IUL, VANIt A10 COMPANY
w.wXw w�4�A
xf +a ch
-madngt�' 'Pity
r,
i
� w, 5
' . •" Calif!
mia
M'
�
y
Cep, 7114lu Street
Ow auozr.# Diehl EvAns =d comps art
OAg` n on e amtnaion OX Our 4000'auts. Ta to o -
fgdlt *ould you ploao f"ranh d1root3z, to
om a: -SW of a4axa-ttietf hold afo ke4ping
you foSt, Our nocount ao or J�mo G
aaa6 z*il yodireotl to Dishy
vaus, and� �
Vorv, troIr yourej,
4-OA
city of Huntington Beach
anforma
gtable TIMSt 00*pial
xx a SpyStreet-0
Los Avzelorp WITOxinia
Oontliment
to s cOompwoll are
in an . Imivaton O car 4�z40* x
0�otion t oro $, hf woed 70aplease rwm4ah dir'ZO-tly
o ttwz a wMing or the socurkfizz uoa sA truat ioy
` garZUno 30,0,1 1p to saouv4ablofui�aa�0
� t6n zoaoh with: 3eou"`t `f
.: indio4fe vAr ot one av, vmIX a
lease zedl you reply direejtlto Didblp 3-!VO
stmpe4 addrosood ovalo e in birkolomedfor your cat -von
or truly' yours
jT*A6 04 Mille
x
v
HCalifornia
untington
City, Of
jury IV# 1961
too tank
Our 1-cht g and COM�O? l arc, r�♦y�p vT
4 4k ��i4i�4R i �.'k✓R�
' Of our a
ivtlto the
Oawi'V L .
pcao
�r F:
�% p �x
1 Minor
DfEHL, EVVANS AND COMI# ANY
CERTIFIED POULTG ACCOUNTANTS
e0fs -NORTH 61RCH-,TMr_ZT
SANTA ANA,CALIFORMA
XIM&CRtY 4-4453
June 28, 1960
W. Hoyle Milier, City Administrator }
i i ty Of Huntington Beach
i°utiugton. Beach, California
Mr. ller .
We LF>ae made a review of our cost record in connection with
our audit of the city's records. We find that the audit fee has not
itseres,sed since some gnknown time prior to 1954. our cost record also
shoes that the fear has not been, covering the time devote4 to the Jcb �
since April, 1958. To date :the record reflects a total deficit of
$980.00. We have been negligent, in not bringing; this to your attention,
sooner. For several quarters the audit time has been approximating
$125.€0 per quarter.
We propose a fee adjustment from $150,OD to M5.00 per
quarter. Ve also propose a separate fee arrangement .for the audit of
water department recorda. Based on your anticipated water consumers
and our estimate of time required to audit them, ve propose au audit
fee of $50.00 per quarter for the 144ter Fund.
In April., 1960, the League of California Cities and Calif-
ornia Society of Certified Public Accountants published a. booklet
entitled "Suggested Contents fOr r1ty Audit Contract*% We have
.prepared a contract for audit seivtces based on the recommendations
contained in this booklet and submit it for your consideration.
Very truly yours,
,fig, z
EVANS AND COMPANY
F April 26, "1957Gd
s , cc
APR
i
� i � t..aa{{ ERyy
City Council
City of Huntington ;Beach
HuzntingtoA gaach, California
i
Gentlemen;
We have exgxtned the Accounts and retords Of tl�o
ciTy or i3'Gi+ nimu BEACH
for the nine mantIns ended Marrh 31, 1957.
Out examinutiou v;ia "ade in accordsncc Stith generally
L accepted aueiting standards and tneluded such teXts of the agdaunting
records As va conoidered.neteasary to the circumstances. Certain
phases of our audit are condu(;ted a anu4lly at the close of the fiscal
year uhi,ch would f teluds in4epondent confirmation of bank bslances,
collatoral sceurities, property taxesi state Apportionments and otherso
%hus out intcri= �,p=inatio+n consist' primUily of an zuudit of casts
receipts, cUburs to and and halances As :recorded "a the books
of aq0ouvm,
In sour opinion, the sacdompany iRg statement of condition r
of fuazds presenta fairly t'he cash position of the City of Uuntingtou
Beach as at r»:. 31, M7, sand tha cash recci.pts and aiisburs=ents
for rha ninfi- fsaath.a pariod then ended as recorded in the departz 94
tat
,=d genaral rc orris of the 3t}* and s x%jsct to the a ception rtBerdiag
our inkar#= exuainat on mention44 above*
a espectfu'lly su%amitbed,
DIM, $VOS AND CONFAN
�3' !ram ,�. ��•, .'�'
Certified Public Accountant,
E
4.
''•.'T 1..4
a--r ..°
T
CITY OF HUNTINGTON B�.ACt
STAT 'NT OF CCtt3DITI.ON OF MMS
;
For The Nine Months Ended. March 31:, 1957
Fund
Fund
Bal s aee Transfers
BalAnce
July 1.1956 Ajc�s In out
Di,abursemenZr
fir, 3
Goter4l V47,641.64 $594,815.43 $ 75,247.51 2,879,96,
$ 738,4€30.83
�176,4Z3.71� .
Music & Promotion ( 8,669.12) 36,546 19
82,047.11
( 54,1694iO'
Sgecial Recreation 302.31 24,634,16
$ 5,041 44 ",
Library 3,005.67 25,025,76
32,410.16
{ 4131,043):
Trash -- Safety 19, 545. 52 18, 490.1t7 19, 545.92
s;
Spacial Gas To 69,274.99,274.99
'
In lieu Motor
Vehicle 31,112.34 2,376.50 31,112,34
Z,376.std
h
PazXing meter Z4F 3{11 13 39, 4�43.82 24, 301,03
-
19, 543 Iraz
Special Capital
outlay 86w286.2.5 101,535.72
770436.08
110,385.89
Rest or gt County
Water Board 1y272.32 208.22
964.10
West cxange Count~
%tacos Board
Cnsaat °ansoLiotn 20,076 32 26,453,02 72,SG5,9I
154,963.43
1955 V ater 1lssn4
itoripst and
04(wPt ion , 64, 366.42 3,127.70 7,821.13
74, $64,2$
753,00
1955 &tatr r Bond
sal,se. 174,49.07 7Z,565.41 7,6Z1..13
30`.00
239,203 85
Ras't Otange Count
Water Board
MaaintenaTme; aat i
`4 e1'r4E2io t rune d .......«� i
'. ��1I.97
3s475,81
10TAL TMS $914,007,16 $856,446.4Z $158,514.$1 $158,514,51
$k,194,0
7a437.74 k,
00h and :Oe wait !d Banks
8ecyu�r t Nactonal .8a ak sad Jos An$alea
tf
•i
}ty�F1
�£�a'�.�i�
Regu�I ��p`r��i .c�.�
/ 0 y
T04Deposit0
Qt iA� i4k li4Tt 8
490j 616, 57
$i1T14fdYYfdsd-
F 5 Tr to 3111aa - BAua Val Oo 107
9.9 227.00
1Sa *tugtgZiTl�'.
1^nea.w
n
. _:.
y
? I� raalta€ r d
13 405.63
516J01*74
r , `.:i7S.iiE. ��AscFer i4�..t N�ANY
�' I
i 's%d;:lnn k:�a`sy,.. , „a �,•.J,.c..«s:nn��`'I�ciktn)ur�",3iiYtuYC.kzMuiv,...... ..
,.ufa , a.
CITY OF HUNTING' '"' 9EACA
,.gin ......
STtAT'MNT OF CSYDr.30H OF 7=5
For The Nine Months Ended March 31, 1957
Fund
and
�rBlitYiCE! Trausfer8
$ala3sce
s
,lu, 17 1,1956 Uce3t:s In out
Disbursements
Har.3
General $247,641.64 $594,815.43 $ 75,247.51 $ 2,879.96
738,40O,23
�176,423.,.79.
Husk 6, Promotion ( 3,669,12) 36,546.39
82,047" 11
( 54,169.04).
Special Recroati_on 302.31 24 ;34.16
29#977.91
( 5,O43.441)
Library 3;005.67 25,025.76
32,410.16
4078,73)'
Traffic Safety 15,545.92 18,490.10 19,545.92
-
18,490.10
ga
Special Gas Tax 69,Z74,99
69,274.99
In Lieu Motor
Vehicle 31,112.34 2,376.50 .31,112.34
w
2,376.50
Parking Meter 24, 301, 0:3 19, 643.82 24, 301,03
19, 643.82" '.
Y
Special Capital
Outlay $6,286.25 101,535.72
77,436.08
110,385.83
West Orange County
Water Board. 1,212,32 - 288.22
984,1:0
Hest Orange County
s
'Rater Board
Construati-a 201.,076.32 26,453.02 72,565.91
154,963.43
1955 Water Band
Intorest and
'Redemption 64,368.42 3.127.70 7,821.13
74,564>25
753.00
1955 Water Bond
Sale 174, 00 ,07 72,565.91 7,821.15
30.00
239, 203 „85
Weat Ortwgrt County
Rater '8aard -
X4tntezance and
Operation Fund - 3 797.82 2 879.96
3 201.97
3 475.81
LOIN, S $914tOO7.16 $$056,446.42 $158,514.53 $158,514,51
$1,194„015.84
y
$576,437.74
'FM,8 IN ;CUSTODY OF CrtY 'M6ASURV.R
Cansh Funds ,On '.b osit In Saal&a
4
8ecur;i,ty.Z4rat Natt xsaiBank of ;ter Angeles
}ipantin too leach 'Aranch<
'Roppl r Account
$ 490,616,37
Tbt� la On De aslt In Banks
$ 49O,`616,37
Cages tnwas
�04 g, W0,4011w, sill8a NO y 16, 19,57
99,227.00
Tom- Cash '`unfit To Cu totly,of, Treasurer
$ S$9�8�a3t37
y'' #lt�"4,R2S� Ahi'�faY
a D}rHL, EVANS AND COMPANY
CERTIFIIED PUBLIC ACCOUNTANTS
$OB NORTH ;S BIRCH TREETGE
SANTA ANA, CALIFORNIA
'
KIMBCFLY 2-4453 E9 �7 y
>s
February 2, 195 ��
1 CITY CLER,;
,
City Council y}N
City of `iiuntington Beach
Huntington California
` Beach,
Gentlemen, -
We have made recommendations t1lat *.systems re',+iew be made of the
records and books of account of the City and the procedures used in maintaining
them, We have reviewed our recommendations generally with your administrative
officer and at his request are submitting a brief outline of the work proposed
4 and our estimate of the total cost thereof including machine, forms and tees.
We propose to make a complete surrey and review of all reeorda and
procedures emy oyed in the office of the City Clerk and accounting department.
Based on this surrey we propose to accomplish the following:
1, Establ.lsh a ,good system of internal Control
2. Prepare a new chart of accounts designed to provide
management with financial information a8 to proper
accountability and as an effective to,l for sound
economical administration.
3. Design and install an efficient and effective system
4 of machine bookkeeping, which would include:
a. Revenue acoopnting
b. Disbursemt-nt accounting
c. Fund accounting
d, Budgetary accounting
e. Payroll accounting
f. Cost accounting
S. Equipment acco4 ating
We estimate that equipment, forms and time required to accomplish
the above, would cost approximately $8,000.00, This equipment should render
service for at least ten years,
We would not expect machine accounting to reduce the present personnel, ,
r
requiremouts but Ve would definitely expect to provide more information and to
accomplish more with the same number of people. The big advantage r>f machine
4"ourating %)ald ba that the preseuta persoonel o-�4&d be in position to absorb a
great deal more voluma'of trahsacttons resulting :From future growtt, of the City
tbaa would be. possible under the present system,
u: Very truly ya r;s,
.t
DngL, EVANS AND CMIPAM
Cotrtffivd ?ot4icAccountant
Cali:fornid
.Y.
CITY OF HUNTINGTON BEACH
STATEMENT OF CONDITION OF FUNDS
For
the Three months
Ended September 30, 1956
Fund
F d
i4axlance
Transfers
Balanco ,, ;
Funds July 1, 14',
Receipts
In
Out
Disbursements.
Sept. 30,1956
General 4 147,641.64
144,828.25
74,959.29 8
- 0 -
$
252,350.31
$ 21S,078.87
Musia annd
j
Promotion { 8,669,12)
1,716.19
- 0 --
- 0 -
54,314.2.1
{ 61,,267.141
Special
Aecreation 302.31
2,018.04
- 0 -
v 0 -
10, 956.67
{ 8,636.32)
Library 3,005,67
1,328.05
- 0 -
- 0 -
10,153.90
{ 5,820.18)
µ..:.
Traffic Safety 19,545.92
5,831.60
- 0 -
19,545.92
- 0 -
5,831..60
Special Gap Tax 69,274-.99
- 0 -
- 0 -
- 0 -
- 0 -
69 214.99
'
In Lieu Hocor
Vehicle 30,112.34
- 0 -
- 0 -
31,112.34
-.0 -
- 0 -
Parking,Ifeter 24,301.03
14,189.65
- 0 -
24,301.03
- 0 -
14,189.65
a
Special Capital
Outlay 86,286,25
1,190.62
- 4 -
- 0 -
11,766.95
75,701,-_F.92
wast Orange
County Vater
Zoar 3 i,.ti2=32
0 -
- 0
- 0 -
390.00>
882.32'
West orange
County grater
Board Cons-
truction, 201,076.32
0 -
- 0 -
- 0 -
138,989.04
62,087.28
r
1955 Water
.`,
Bonds, I. R. 64,168,42
2,256.99
- 0 -
- 0 -
60,252,00
6,373.41
Waiter Bonds
Construction 1744$,� 9.:Ol
_, .0
_ 0 -� �
0
d t3 -
174 489.07
" TAi. FUNDS $ 914,007',1v�.
6 173,359,39 $
74,959,29 t
74,959.29
$
,539,173.08
3 546,193.4?
ff`JP3DS lSTODY OF, CIV ARVASURER.
Cash an.D.pos�it :ice
Socur 3tyiFlr'st l ationaal
Banl of 'Los Angales
Runtingt qn. Beach ranclh:
Rtgulai` Account
$
257,532.94
Tbue Deposit
�
'200 000*000
t1ar
e�
57,532,94Tctal
0M;h Fonds ltivested
alasury, B111`n, -
No. November 15,
1956
99,342.00
rtal, C,aal: rn 4r, ,in
custodv of Treasures
6
556,874.94
-'� 44:rrants Cutstaod n8
8.681.47
�s
i
�h
DIEHL, EVANS ANO COMPANY
'CZATIFCED PUBLIC ACCOUNTANTS
806 NORTH BIRCH STREET
SANTA ANAL CALIFORNIA
r RECEIVED
Ei.IMBERLY 2.445, 3 DEC tf 79;$6 `aF
Decezoer 17, 1956 -i1 { RL
CtTYICLFR
S"
City council
City of Huntington Reach
Huntington Beach, California ;
�#7
R""
Gentlemen: i,
'2,
d
We wish to bring to your attention a situation which has been j
u gradually developing over a long period cf time and which has now been
accentuated by the current annexation proceedings and the related' �
expected increase in volume of financial transactions. The situation j
to which we refer is the City's accounting system, and the methods,
procedures 4;,-J equipment used to maintain it. In our opinion, the
increase in volume of trausactions, the change in requirements in
regards to State reporting, and other changes in organization, problems
and transactions has given rise to a need for a systems review. Most
business organizations find it worthwhile to have a systems review
periodically si:ice the procedures, systems and available equipment are
continually changing and improving. A systems review has been especially
important to municipalities in the past few years because of the many
changes and increased volume that they have experienced.
We have considered or some time recomending that you change
from manual accounting to machine Accounting. This was primarily based
on the fact that you are maintaining complete budgetary accounting in
addition to your regular cash records. In view of this fact and the
prospective increase in volume we recormaend that the pur^?nase of an
accounting machine be considered together with a general systems review.
Very truly yours,
DIEHL, EVANS AND COMPANY
By
CertifiTd Ixublic Accountant
California
t
-
Balance
March
Disbursements
l 1 6
t
General Fund
r,6q ,159.05
170.70E-55
Suecial Revenue Funds
i
Music and Promotion
$ 6'�.71=97 '•
�` (2:�54•:.
Special Recreation
2,696.79
(j,?16.7)
Library
Traffic Safety
29,7;6.55
(3:4109.22)
Special Gas Tax
2�
1 3.0. 75
66,5Q3.75
.,
In Lien flax
3, 059.17
Parking lister
1
x
Total. S-oecial. Revenue ids
41,gCr7.�#�
Capital Improvement Funds
A
4
Species Capital Outlay'
West Orange County Water Bond
1Q8,142.7a5,057•?O
West Orange County Water Bond Construction
956.25
56s,597-91
1,602,32
162,792.i6
;
1955 Water Bond
Total Capital Improvement
$ 6q6 g1.97
I �'6.2. 07 ah
}'
Interest and Redemnt on. xunds
1955 Water Bonds
_ 0 _
3g,pa6.93
TOTAL YMS
1.1 76, 2So.l:a
g63,in.49
s
3
i
k.
i
r�
r ,,3 �'
T.. ... t,
r.
a.
e; rary�.sypIlis
.
453
00
,� . ,♦ 3,
...+�.�.........u�y...
�,.: ti�-+mar
,�,.,..,,,..�r..,..,, m.,...�..
.„�.,.,,�`, 'ir�t,',...�.,'�,.
f�IwrM
Y�rt�, Y,�{r
•
* 'p
••LPi d'^'t'-4`.S.
"�Y l+k'fJ4 Ls'p �aL
IAA '4=''}'J�Tyt�;�,.q'�'k
�
517,756,13
rk��
56
may. ,q�Y+^t„�i$nr��'��
BPS.
aP�.l�
•r��T 1�4k �+
�tY!,4r..
+^r'�..'r+�.n." r�
'T'T�43f.�
�..��'...^r•^�Ct �.wY3.�
+�� �'y 'Y`� u«"u
K-W�.`fas', 4M: r�w+ww�,..
r
r .
rf
'�7iti a�
t�.
tkt
f
CITY OF �iP TT33G'1'� "1
STAMM= pYCQNMM,, ,o
For the Six Monthd Perlod -
r
General
9-Decirall, lt-Vi `oi I4t xs:,o'�
3 uc�io snci 'rU�otio7a
2r 62.79
Speaial Recreation
P, 6 j,Al
Librailv
?t 006-3T
II-Iraff le Safety
Specla] Gas Tax-
1l33.27
In L:.eu Tay
?7 $55"gg
etar
2-«14p, $
Total Special. Ievmzrxs �.*nos
� C�.a.�%L"
rovement tde
Spe: lad Capital rya tlay
fast Ora ge C6=ty Itater InM
?« 55R57
'grit CmAge Co=ty 'Water Bond Coast ton
� 31, 64..65)
watt'r 110,141
0
T{itq, C'anita I
lal&74,a
b�,l
Interest .&.AeC.e:D Ch F=ds
1 5 t$ Bow.1S
TO
4'T,679s7:9
all
J'z
yy
-�% _.
OWL
it 31k 1955
a n s f
e r s
December
Tom,
From
Disbursements
as?
Init
15, 10 76
193 �'I-
y aajj' �jj
CQ (j
1-09-12
=�.1 r t � •,f
°7F :'v r 1..[',:.
Y .4 R y 0
`, 3 p: +;,a.. GaT
: ` 1"),), 004
636
+Rr�w1 40. 7
J+ i` 1a1 M1`L3grip
;1
Y
5 , ,53.a 2 ^ + iyj ,' 7 M'� 113.�4 091
.Tawr. woo..+•-w.���•rrw� ��wrww�.x.�rnrw.. w+�w�r�.n .+��•�^+•
S� '
' 1
t
W-,q
CITY OP-MM.
STATY=iT OF ccwpx o
'For the Three Months Nsxiod Seri,
i.
kr`v
(,
f
G'ESY4£'la9E l Y�]7id
opt ial
sic 44d oxx
y{' 3 t.8YS#ftn8i#e T't9xf
f
woxit Oratga Co=ty water solid
"
sffi Oxus Ca to wutor Band co tructioti
'ot ter BorA
Total Capital, 1p _ t
lh=ds_
i,6
k:
•IIJ
1t
k
—.}
Balance
§�' t
Fes.
Transfers
SQL:*atnbBT
Rsiiats
'�'t�
From,
Diaburaamsnts
30, 1q95_-
fa
.7
6S.
..
f`
i�
644.37
y1L1J?F :R4
_ Sy
3y{Vy}7�v✓<Q
Yo3Y 4�.
xf, �p;pfy".(�I
` 955r,
q,.
SA
to
!
y "ice
Iq . IA7 _
+ftT,
$ 97
M
69p�I?.43
59.097.14
( 1,371.E )
+;.Qp�:..-....�'�....�..y..��..... _....
Qom! �J
W 6!„fVQY03.
Y C.el N�L.I*
p (] �y ,[(j
IS, 19f6Z
�r
I"r,V7
` F+T�b}o5
[tr.L.3.
�2 6.25
�, �
6, :4€
15,3 -?9
,32 ,,
103.676.75
S80 000,00
_
3a__„_ �.'��k�t�:
11, 910L.!5
�i�i?� �ari8.21
tfi✓',14�
54 3Y, 116-'�u,3.,
194-3 04?
154,340 72
P6,928AI.6
jT
J
S`
r
v,
n
SSA�aa;Y'vA
12
Et4l5II.AICHL
DX
C:�Fi 7't t<'f CT3 istig41C AC2GOU M'rAN't'
3> 1949
City Cau1141
Mt7 of R=tingtoo ;beech.
Rutivatoa Beach, California
rreatlemew
i14VC.WYA".rJ4. Na
In connection with: ovr quarterly exa.:duatloa of tho, d. svr�. .;,,ol
recox*e of the City of mntizZto:). Beach, we have Via, an extended da:awl
e-711tadrgat Aoki of the ac
was it, vies- ofthe serious t eriousI7�.2: ens of the preaex tbe City Court and cDepartment. -T�3g o 4heCity � i
Court,
i
The Court 6oakets ware checke(. in detail to tbz cash, book area all
cash- "book totals compared, v.th tbs isposit with the City Treasurer. The
:Police Department' a J#41 legii�ter together wltU ptllioe offiaere traffic
eitation.v wA oaplairste were tra4ei to the Court dockets.
As of April , 3 #S, Yaio, tivas time dnt� of bur ex zaatiaa, tlsaro
a di fferez:a of $110.50 In tao a400 ants of the City JuAge ohi oh ve could
got lomto. To were a m1ble to contcvct vbo City Jedgo and. ,it is possible
that. this but covai havo 'been-,epooi.te& in error in so otbar A.'ecount"
We dUc sued, this ` ,wtor vith:. Ur. Re Brio eA %bo ?All visit ttw Olty
Judge es soon ae-pv&otioa and too if 'thin =&tter can a4jwt-90..
Vollov Via "co=$ndation of last yeex,'a agate %k tacco'vAt
was ,opened, 11 the City Judge "or the depotit of oortt,.o Court f'u s. After
d{tsa sss�oo with zo r City, tturn *, a, new derivatis-i bas been given to
"a a000unt vlach he fools -will giva more proteovion to the City To Dave
fu=3shel this =ting Judge a list off' open eases he b as aasu has that
An n p 'gill be s&e to dtsprso of these docke'IK.;, 'fie belleTo Oat s6equate
s-ttpt bavo tow -Data taken, to die the f'in"eiol transactions of rho Court
riurtag .the Osenee of tts City Jar
E -
n
y
44X AtFacg t" RIVERA1bL•
CAXOHONM Wei
ht C r-OWARCS C.Iq A
MIS FdR$fi NAVONAL SAW, IBLD43
Itece:asber ��, l.�l
��
yap} g
.
city of. R.=tin on N43x" cb
7 ..•. �'R.. �.'
a u*::tin tctr: Beach, Calitorraia
`
Gentlemen,
Ire havk m e an ear —=.ration of the re,:*nis =int,,.i ea bg the
x:
i'z3--io,,xs -lepartmeists of the CITY 07 2S�`�..��I"Lln`M. �`..� H for 'the perloQl July
.'
1, 1941 to Sec tenber 30, l .zl,, lra connection with our work, we detemmined
that tho various y'7.,eimrtIIients and Iii ividuals caaarged. %Tith coll.act'axaw,
rev,,rmo had accountel for the total rateit;isl inco=e and that this inco4e
vat dapoaiMed, with the City xreasurer.
Ve keve ex ml.ned the records maintained bar the : ity l t�veer
in connection with weed olcar inr and have a,�=urtecl for the cash collect -
lots ma4o b this Depertaent tn*- ;alto conf'irzedl that the a zp..,i6 ltemc
were charted oA the 1941-4� tax roll. Del.izru,ent 1'e rial ?all rentals,
mentioned. by is in a prevoua report, were cancelled *opon athaxx ty of
the Oouncil In Julj, i94,1. At the tizo of ouu, ex� min—ation, Plar tam
B4-aoh conces!aio z rentals score podd to date sw1th -aae ox,16ption of the
contrccts with al i'`r 1. Zin�r and. *rrayne Z* Lo&,,*
e aj: taouated: for the ticimt sales at the dtacce ray.lion and
as this dop,�rtment bas been Plosadi for the t1w beiw,, we bratT,)tt our
e=mit4tioa 4o=,, to date :,qd, ccouxt)d for ll unsasea tickoLts nnd. cac,-
�
on han&� All pe=lts iazue . at the k nto Cat+ voro d:%haoke Z we the
i"Ome con irae'.d as htvink- been depouite . with the City Trea:,-O^er.
Variolas post;; 0"12 Tu,4ds ' tawai'u�dl by the reveral departmun.te of,t
01ty, Tern cifttnte and 'proporlr rtzoxa it ei. a,,irioZ, the, courzo of our
examirlWon. Our .eulit procei`�e irsttivAed Pn e Ir4ion of the
accounts zraintaized by the Oity I ibrrAry.
Ditbttrzem.enta froz the operating fut4s. have been confixmee,
by ==s of approva& domnds,. swarr ita mid !a, tho City- Irreasurer ani
avecial fi cial ,authori.ze'tlons 1tz the mi.rr.tes of the council ryetix8t,
ZW.Aer4s =.0 from the intbrest a l since funtz during tho- period
-4vlor .ex lzsation were supported by c r .fled IzOnds -%d i.aatere,�t coupons
psa MO trIth the i.ty "�' ur r. ITe ea reconlz led. the City re a'Auror's
ta4-. aeoolzt With the i' 'bal'anic'.s$,, or, Sho-. n by tl Ee 4ax'ty O eritty r000rj "a.
The ity's be coupt ,ma1 o oollataml dopositei by the ' ztk to tctiure
vueb ids or's -,Omfi od by alroat roz=vniaatlon ad th the "d d ak. At t:oe
time uf oUr e omir Lion there was siefi3Oeat aillaUT4 60W3 sited by the
�4 �, tt? zeet et� roqui `emeo s.
1000tttvlt submitted,
=;
DIP; 4M hM
E;,
56teM and L 6ml2any
Licztr�ccd �G� c�ccoa�tctSutEs,
Slti11R8T NJtTiOpr:.4eANKBLRYe.
c��anfa c�na, �aii j
October 29, 1943
Gity, Cleric
`
t�iasgton Beach, California
Huntington
k
�
Dr.
On October 10, 1943, an announcement
was 4I`.nAe in the L^et4spapere of the ;iia solxntion of
the ptar'tner abip of Diehl. and. Xwar%is. it ras, not
feasill:e -to give fial in.fo=ation in this atuamice-
t
menu and thug letter is writtea for 'kne purpose Of
furnni>x'hitg a54itioual information,
of four 11 tnnera l Sri -Is C. Mehl, P. C. FAWArid k
are* fra 4 the p€+rtneri dp avi has orene& ofCites Ar
his oor.. -Z..t other tbrea have or,,zanize& a «aaw partner-
ship tan aperale 'unier the n e of DIM gQ colw y,
wb&.c rem%i lu the origiWal. location 8mi h" the
same telephone -4 ber.. _.11 evoloyees of the-rormer
p inership rzmain with 11'. ehl arA GUMD=Y. j
I1Ib zt be ass=e& that it is or.r desire �] I
to, t"oAtinw to serye IOU.
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Junes 29, 1941
City Council
City ek Beach
{�1
3 ,i : ,
;.
lhwti.ngton Beach, California
kid Mlle, en**
We have m,wat�d��e(� a Aotailed examination of the books and. records
of the CiIf O iz���dkUttF:Y B70ZR, for the quarter ending Mauch -AI, 1 1.
�
A conlete, audit 4r.as made of &II dderar'--mentel records and:
the ta~W itcome a own by these records to have been ctll,.cted was eon--
firma& -ps having been ii,e{2ositea vri.th the City Treasurer. Char p.eidir alto
Inclilc ed an examination of the recorda maintained I iy the Public Library.
Revenue from the Dance Pavilion wAs confirmed r means of records naein-*
used by, the City Tre%wer and t as unused prey-auz�bered adm esion tickets.
DWi,s ar�sezpnts from th-e o erestiag funds have been rorif'yiol
/�
'ye��ai, S9t a%�.1dJe. pall i`ayi'}.�.�y�, ta, 1VAt -pur
jUn��.Yzea:as
mmMMtii$$'cp�ff'ethoir /{.rlbxar �Rs +ry
yd�ix.mane.,
/�. y!l,�.yt'{iyioW'.1y�+Qq y.
i..z�.fo ces. and :�`s <M•:v.1+ ob e€ to attached to the d,:u 1F.uda. '"he Crl tv .i.�.'T+ asuiS: .e
had c cellski bonds and coupons on fill to support the payneats made
frci the latterest, fl.nl V:n3 inr fiinds.
Ws roconoil#a this 'TreavirWs bunk account and confi=ed
that 'there was aouey n , deposit It the bank to cower the funds as O'hown
by One City OUrk' s records.
The record of reeaxW s for the. Vemorlol Fail shows tb& follcw-
Ing rimtsl e Still unpaid.
Date R e served ?lama Asna?x�zt
4�4'1 2- 1-40 Townsend Club
t + nh4o 41 rl Scout s . �� ✓
t at,*'
' Ountieoon reach Firs 'Dapt,. 5,00
Othor re is that arc 4elinqta6 at are shown below.
Olifi Z. Xing, for the year enaine,
Tharwx S. 14rr4Tor the v`eafr loogin ring
t 1943 D, fto quarter
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MFiy 27, 1R42
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Citya�unci
City of Huntington Beac2.
F'Huntington
Beach, California
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S,n tiaaaen;
,
!n accordance sai'tli ahg 'ueims r.f our exployment, vo— have
8
made an examination of the boo -z r-na accounts of the GlIff 0? Fi'+.NT1?fi?"O
„f
nACF. for the three months period P. ,adinar iieceaber 31, 10140.
Ire have exazi.nP4 in ?etaail that v_rl.ax s depaartmenl,z61 recrrd:s
ana h."e a:ccoui aid for Tire total amount of revenue these de -oar meats
are charged with col.lectliw. We have uat. as yet, vole a detailed
coitfirmat.ion of the currant tax roil an it is customary ro complete
this of the ex"inAtt4n at the clog r or t: e a pcond Installment
cvl3eatirs.ns.. We have conf'irmel that the -Pcord.ed collection of
currenLt taxer. has been dEeoo s'za;ed with the �itv 'Trea saver, We have
also the^iced the delinquent tax collections aand alto the payments mode
under the pertial. may; `agent :,lnn.
We bave aeonunted for the tickets invuea to th.a da~-nce
t
pavilion by meaus of .onP,� �?e�osite? wi`� -the Citv raaastXrar and unused
pre—nu!nlbered tidkots, lteveuue from 't? e dunce *pavilion was furtber con.
rv(.
i{?i„rcEd '`�.iby g�g5^mentr, rzw; a to the wolleCtor of fn"�ernR t Revenue for Yed,eral.
A
t ,n L4oµssiV.asy..
Ati
�Xaazxlued, the records ,ma!ntained by the City Jtadge in
etai.l. Flaaai: fourd allrecurdred fiuoi' tired 'bail forfeit�ires properly
accounted fear. O p grotind permits were verified by meant of dirolioae,to
recejota on file iu the o.ffloe of the City Glertt. We notice that during
.
Ode winter zonthe the few collect -ores zado are Field for some time before,
being daapoalt,ed and we bellc-,ve a letter pl:en would be to furnish this
Mepartz ut, with a, small petty na.#sta rand with whic-b to mc%e cbonge so
that the total co,'Jectipnz, may be deposited, thus eliminating the: nec—
essity of vithhot 41 tg ahrrent ,col"lectlons for the purpose of mal
il4ur examintLtion. also in,clutid an inspectlo,x of the records
r"jratatined Vy i s Git ibxa sy. die notice that ret.ty ctag'h d almrsomente
n'I OWN..Y
City council.
City of Huntington Bead
are enterecl in a separate peat er-.sb book and are not sumorted by
receirts for Payment. Tbis matter was �Iscussed -41th, the Lbrzlrlan
"d lv-eea-f ter these ex'oenditures will be t.mymnrtel by such bills arO.
receir,te.
Ditbureements from thr varinus oreratiig confirmed
b,v means of approved demands zn! cancel lel warrantr on Me, with the City
T-teasurer. Cancelled boxes and interest coupons t,.Pry on file to
the ta; zpnts trade from the Interest and rinkinp, Panda,
In attempting so mzd,.� a test ft.eck- o-f" the invoicef; in the
Oh"-ber of Co=prcp offIce , marporting, the 4m-,n=is W1.0z tiara 'ity.,
-Pere unable to rendily exv=fne V-ese tbnrfros PnA we have recommetldeA
to the kearerory tb,%t *zerenlfter the demand Med with Vitv be
sunported by original invOceo ani bills.
The fund 'br-lances Ps r.hovzz by Vri- Clerk's records were
roconellpd. with the City Trean�trWs ltnr.,� accou-1r.S in OrdIt'r to lete=ine
that %tfter6 ras money on Aerwilt to rover t-,e Pxnds as 6hown by the Clerk's
recordt.
L'Ghk AN0Et.M.9
TL4fitsW dNL�'. fi,$f
3M rtR$T NA7tDNAL SAME $LUri_
Marcin 3, 194'
Citjv cousicil
{ City of Ifuntilngton Beach
Rlxat'-14ton Beach, California
Gentlemen;
In accordance with the terms of our employmen.1, we have made
an examina.tiot of the books and raeords of the CITY OF RLINTl11121T X BEACH
f-r the three mor-th.s period from July 1, l940 to Septlember 30, 1940.
e have made a detailed ea�tunta�erhon of departmental records
In order .to determine that the income from treys departments ba?, 'been
,4 properly accounted, for. We inspected the records of del.ingreat tax
collectioas ena the partial payment plan record to see if redemption
certificatehail: `bean issue; .fora tax delin zuenci es paid In Tull . p$3rrmeats
.
seeds tinder the partial pa;rment plan xera confirmed: by means of duplicate
receipts and the record of the in3ividu l accoants maintained by 't*-e
Deputy Tax Colleetar. Ca.= ground termite -mere acouunted for thro'ug- A
-l3oatt receipts on file*
receipts from the dance povilion. 'metre checked by, moms of pre -
numbered, p.:intod. tickets. The tickets charged. to the cashier of the
dance psviliot have 'bean properly a tcounted for and there is a very good
;record being msintain?d that, shows the tie lcets delivered to the pavilion
and the tickets settled for at the time the money is d.apo;",;_l with the
CityTreasurer*
'Ole examined the harges made by the V�nglneasr for weed .cleaning
and conf'irzed that all charges tat paid vore delivered to the Tax Collector
to be ;added to the ZQ40.41 t= roll, We iarpected the records maintained
by the Public Library and confirmed tho total recel,pts an Drell cd expense
for sa'larlas., bataitis, supplies, etc.
'We examined the records maintained by the City' Judea and accounted
for the Ucoms from fines and bail forfeltu es by means of the court dockets
and the recorded reaelpt# It the cash book. Clerical errors were adjusted
4-aria the courses of our,examin4tioa. We are showing below the activity of
We department for the 'three months perio4 onding September 30, 1:3401
city council
City of Ruttington Beach - 2 -
March ? 3041
r,
Traffic
Other
Violations
Violatl^ns
$
.
cases Docketed
191
109
Nola-rappearancea
26
11
Pines assessed but not yet
g h
paid in full
13
4
hY}
y'
Cases continued and still open
2
l
:-
Onsets suspended,
19
15
Cases dismissed after violation
corrected
4
29
,
t
To Juvenile Court
6.
Disbursements from the various operating funds were confirmed
by Deans of 'approved uemoAds and cancelled warrants on file. Ve accounted
fog the payments from the interest and sinking fz• i4 by means of the cancelled
interest coupowa on file.
'Wo reconciled the fund balances as shown by the Clem-t s records
With the Treasurer's record, and also vrith the bank statevAnt, on Trlle in.
Order to deteMine that there was money, on deposit to cover the funds ears
shovu by the records.
Respectfully sultitted,
AerSfled 3'abll Accountant
California --
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b.P 22, 1940
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city council
7, .r
City of Ruating ton Beach
i
Huntington 3eact4, Oalifovnia
gentlemen
;
In accordance with your inotructions, we have nta.s an examina•tiou of the
t
records of this City Treastzrer of the CITT OF kMTT GT iI3 BUCH covering the
_
perlod from Jily 1, 1939 to 3 oril, 15, 1940.
festal Income recei'pted f,r, by the City- Treaz7arer was confirmed, as having
been deposited in the ta--- to the -relit of the City. Disbursements made
from s.a Traasarerts sank -account were supported, by �;roperiy slZued. r*P-n s
and cancelUd coupons on file.. The auxiliary record showing the detail; of
Ethe
1 1q act Street Improvement INands was reconciled with the ftmd balance
as shown by the records.
The a;ttached stmtemt*nt, which shows the recotDts and disbursements in total,
also s4ows that ~stare wan .money on deposit or in transit to cover the funds
as shown by the backs. We also azaminecl the 191.1 .act Aasessmsn+ accounts;
t16.72 is s-y.e the bondholders on asaossmtnts paid by the property holders
bat for which coupons have not yet been prosented. There is on I:epusit,;
in a separate .fund in the bank, $35.16 to cover 'these ` aymonts, differ-
ence representing pessrities and interest which has accruo4 to the City
over as per3oi of years.
We have coa rmed: the beak 'aalsnces by direct comrmmi;cation with, the bank
ttnd we: have also Confirmed. that the Treass ver held suffic' ent collateral
to cove zr the deposits. The collateral securing the City's fluids is on
deposit with. the Los Angeles Trust and Sofe Deposit Gump a"d was con•-
f'i ed by .direct contact vi.th this eoraprtn7,
c
Wig inspected the. Cos Bonds and, the ?Ol,i.c gall Sonds owned by the 01ty arA
4old for the'Craa Deserve
'�� A ��
��f'$t�BGtf���,`ty subs4ii.ttedr
DML Aar i BDWOW$
By
Cer ea x
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CITY OF MTIITGTON BUCK
Ciff MASUM
April 15, 3,94o
Clerk's Balance;' ialy 1, '1939
14,54o.o6
ReoelPts -+ Su2T 1, 1939 to April 15, ig4o
1�7,6o2a-
+. `..
r
309¢142.27'
Disbursam, JUIY 1, 1939 to 43p i1 15, iq,4o:
opera' 4 lanas
$ 197,so6.61
I,i rar7 ?uxd
s , 537. 43
Interest and Sn;vng finds
36,t38a.
fr
.
Total Diabcraem(mts for the 'te3riod
?22,424.61
Balance w #.2ri1 15, 1 0
s6,717.6o
t+adh Account of City Treasuror
Can Deposit ..
SacuritA ,Arse National Bank of
ios Angoles -
0"6, 13.•9�'
Cash in Transit (Deposi April 16, ig4o)
g96.4o
Total
$87 755.99
Iieduet - Olmtstanding Varrants
1,039-M
6a,717.6o
4
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316 F;R4TT 'AT4Ci1Y.Ct IIANn ALDO
December 16, 194
rnyvtT
Y'
GN. LRIQihiZVeA
amity of Huntington: Beach
z .tington peach, Cslifornlr
Gentlemen;
Ravitg had the privilege of serving the wity of
s
Huntington Bench during past 7ee7rs through an annual andit,
It ocOurs to us that we might be abzc to better Aerve the
City through an audit of the rzaords at the end of each
This w rvire would include a quert orl.,y report
consloting of a. Statement of Candition of FUds at the end
of thi: quarter together vrith 4 letter co=ontirg oa the
activities of they various. d,epartmente. A coarplete detailed
report of receipts and disburvemente vsoul.d be Filed at the
er..& of the fiscal. year.
The advantageo of an, audit performed on
quarterly basi s -414 inC2ud.e information being submittel
to the Coxnail during the period in which the transactions
occutrea .rather than, at they e:ud of the year when, al.L trans—
actions zIays been completed and, the books closed. -Alto, ei
greater asi3tstance opm, be g=,ien to the varioat depavtmeota
3n: fol,loming vioper accounting proceaure.
e quart;er2X audit goad cast ver.v little more
thou an, annual, mdita To area pletssnd to a price of
90,0 t per quarter.,
1jI/l��.eaIstle Tool free to hall: on us for fanr addition
::
�•i�K rf4�t�yA,6 £x.�s SYAF+4T:lr-y'
'.
!Res'3eWulul:y s'ubmated,
p�Irieaxtzli.c ' cautstent
YW f ti� ..ak, ry
.a;;%Aa
-flg. �t1ctL.CE'3 OD'i"AGl: YIVERatOF-, OFCICtC
7:qt C' K`.C4APPtAfi 8L�?5 �7+".E 7KX7H �'[yiECY
+, ` 7
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YR•. yr 9124 "'CLPP1fCYNG BtB. . SrGttG 30p6
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yr •
5 :, Ate, �M)( TAX 0 Z
R.C.EOWAROS.0 PA.
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NS FIRST NATIONAL MANK .SLOG,
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January 27, 193
,
v
City Council
Clay of Puntington Beach
Huntington Beano, California
Gentlemen,
In accordance with your instructions, we
have made an examination of the records of the City
Treasurer of the GITZ OF UNTINGTON BEAM, covering the
per.kod from JiLly 1, 1-439 to December 31, 193%-
We have confirmed. that the, total income
receipted for by t'7e City- Treasurer during the period
was deposited in the hank to the credit of the City and
that ail disbursements were made upon 'Proper authority..
All payments made for the retirement of the public debt,
and interest payments thereon, were supported by the
cancelled boac'19 and interest coupons on file.
We have reconciled the total fund balances
as shown by the City Cleri.1 a records ,with the City Treas-
urerl a bank acco=t an%% have confirmed the bmk account
by direct communication with the depository. At December
31k 1939, the City Treasurer && sufficient collateral
srcairity, for funds on deposl.t in the bank to sweet legal
requ3rer�antrc
Zt, have also inspected and accoaante+i, for the
City owned bonds hold :for the Gas Reserve.
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