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HomeMy WebLinkAboutDIEHL, EVANS AND COMPANY - 1960-07-26044 r a, 1Y( x E <` CITY Or- HITN`. ING-1 ?tf BEAt:ki .%MlTow 5 u PDX, . f. [ii"� 30>9 �v4 INMM CZZM= 2-5 {'SUMAX'' VATEH ,, OF tnil UCEIPTS AND DISBURMMNTS EXHIBIT A V-x t7sBt7i:Si'tS EXUIZIT I3 IDS, t , 'a�iL'��s � w ,"...a�u�d„I�wnn=�w.• r .+.0 ..-. ., ��.L�. ., viz�tns:��Ps"fi�y1141%ta�Il� �.F,mrst �.�aw,.......,.. -. w.Y fir•}S r j IK � � ClP' OF HUi'WiC1N BEACH = _ COMT4EPii8 b Zr.. %mln Lion included detail examinations of revenues and tuts to RssT, ,� dealt with the city lrcttauzer< 'Dish �rsementa *ar tested by reference w, 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 6r /�j4,(0j}0r ipla wFsx�N�yQ'}Ify {. AI, I-M x 'c 2 p ,k. 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 A 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 ZP 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 y« ••Y#'7 ,0 yYF* �+'�i7h4i8k4 .. y.r '.+•.o+..o.a kw^574 M �f �e�c���.;�uuu,���..�� s,••��,p aaa. .,...«ew. .,. � t. �..,ea.� <,,.. ,,,t .s ACREMENx . (AUDIT SERVICES) THIS AGREEMENT wade and entereA. into by and between t1he City of } �r 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- r wpuld be -sufficient under ordinary circumstances, aud(tor agrees to w; provide the City with all Ascertainable facts r4ative to the extra_ k r- 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 T: y, 4 c 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. 1� n"Ita Z/k tsilli FXYVtw`FLYtYf` . Ck:.15 C. tSt£�iY,rv,Y' A. C :tz'A'tX.•'L�t PV147"a F:q.B.T NATiot4AL es.4NK Di.D6 SAt -rA 41JA:CAI-13' K yy l w• a } Kn R r «. � .. ,. 1 ? for Yl 'p''IP 4 0 r4'ic,a riM nverel Mya. 4iY.� .. . +�', r.+ •. wad t rr .+_°d: f�=2 .ir.. k ! ', e:•.4 w k :.;1. z C;:MI t :" s a ;;'b ..L` "t", n,?' 1 -I-z y. a... frm. '. ,a". �,.3 vtere a{ n� ?, £': t ri....w r zta cis:— ,}, �y� k0. � ♦ � �� t.AA +, f*}Y♦t �� try 3�. .�.�t ..L$"t :::J♦ M, } Y•# s. <. b .k� r rY.y 1i�1+ a 1< 4o'r. to 2,n to c:gc'�...te or t 1...,a y� n ro a' }'& :hitsnz ,!'tkaTd47 wo� d" j R � �p YAFikJ.�:• w F�#... �,.���Y1 �'`^fN',/Mu�.i�1L`C`.Y?iR'j}'','�.!$!;� c ''::...,... 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 r f.I 9 s 2 .1 L L:OS% ANOFLEWRIVt"K AM-M A EW.M C M" &-C. P A R C. ELLYA4!OS-C. P. A '3t% '•1'3Fi$"r NATIONAL. E...MK BLDG. k. a .. MFiy 27, 1R42 c ak t'd Citya�unci City of Huntington Beac2. F'Huntington Beach, California ,, •; �� 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 -- w Y� 0j9*44 Arts Wl AR611 .l �rtUsir�ffiw Yuwirc �eonursA�m i�r+ a.ism..,;..,�......:..�...�.,,::�,s,,s.w.t�:cr�};�... r�.a}�uit3��n��>ut._ ��.�,,,M, � .. ,.� _. ._,.• t 1.C3 ANaE'L$$ - r'ZiV.CRffittl4, �k-,r: T$LEK'.N 'NE 6t8? i{r'.,.iw - r'"rs C.O(CHL.C.P. A. R C Et3WARbS.,C P k• : WS PIRSTT NATIONAL 13A,NK HLDG, ,, t , b.P 22, 1940 t 4 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 I, r: w. i 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 aK.'4X113''R'111'4t1.f'U7 M4'�OtIK[+ttt;c: c._ r '{. WS A.IiS3'✓wJ..C54 .PF`/Li#9JOL; 4. RC;,eOWARO$$,C:P A. 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 ,�1-,yy YR•. yr 9124 "'CLPP1fCYNG BtB. . SrGttG 30p6 . yr • 5 :, Ate, �M)( TAX 0 Z R.C.EOWAROS.0 PA. x NS FIRST NATIONAL MANK .SLOG, yt M 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. s r, '�q y�p� j R +y y - ResJ,ectl.R,�V1 7 Umittea, I �i i zZ t; 3315 �� �yy���l' t° � 4t� L�lw.. ins. xw L'41a•++ `�„N..f. dl�r Y"'OlgYt M£ Fw r a 3 .a f, „� {' y��+Y f4-Cy=��e�y4 �7 '�: 4R4r 4+�4 s d. 4. bT R"..• _ y+"" 0.RvY'+6+y�,� ry } Y the fcI.low! a TP-ter+� rr+��.�� u �� Y �? �+ am i�k,�.-�+'!.e "' }` '�' '?' �'L :� � k✓'§ s;k � �, R� M � y of the :�alre- ii�,terPst4 Of the vc + On ` ` w7'rir"k�r.5 K.� �� ry the t 634 3 4, •5 C�