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HomeMy WebLinkAboutAudits - Yearly - Diehl, Evans and Company - 1965-1971 M F, M 0 R A N I) U M TO: See Distribution FROM: Brander D. Castle , Assistant Administrator DATE: June 10, 1971 Attached is the quarterly audit report and recommendations for the City of Huntington Beach. The Finance Director is requested to coordinate and implement the recommendations set forth therein. An effort will be made to immediately start the recommendations by the Recreation Department . The Finance Director will make every effort to comply with the points set forth under general and the Treasurer ' s Department will immediately bring up to date the cost control and assessment district bond ledgers . Copies of this memorandum will go to the City Council so your compliance with this request at the very earliest date is directed by the City Administrator. Brander D. Castle Assistant Administrator BDC:bwo attach. Distribution: City Council Finance Director Treasurer Recreation & Parks Director City Council City of Huntington Beach -2- April 13, 1971 Many municipalities budget appropriations higher than our maximum fee for the regular audit to enable them to utilize our services, as many of our clients do, in special studies and reviews. In some cases we are asked to provide a city with an outside independent viewpoint on a matter. In many other instances we perform functions which city personnel either do not have the time to perform or do not have the background to do so. We are broaching this subject at this time because we recognize that cities in general are facing prospects of inadequate revenue resources for the programs they desire to carry out. We can perhaps lend some assistance as another resource tool to city management on long range planning and budgeting and cost control programs, We are extremely pleased to be associated with the City of Huntington Beach in the capacity of independent auditors. We trust that we may continue to provide the city with a high level of professional assistance in all areas of financial responsibility. If you have any questions regarding this proposal or { if we can be of assistance in any way, please call on us at any time. If this proposal is satisfactory, please in your acceptance of k same by signature on the attached copy in the space provided. Very truly yours, DIEHL, EVANS AND COMPANY i 4 By \ � i F Accepted: By Title l DIEHL, EVANS AND COMPANY FLLISCERTIFIED PUBLIC ACCOUNTANTS BRYN C.DIEHL,C.P.A.(1925-1956� 1910 NORTH BUSH STREET OTHER OFFICES AT: RYN B.EVANS,C.P.A, 705 EAST MAIN STREET ' WIN-G. PETERS,C.P.A. SANTA ANA,CALIFORNIA 92706 _ SANTA ASTMAR M IN STREET DONALD H,PETERSON,C.P.A. KIMBERLY 2-4453 WALNUTS-ALIF ORNIA DONALD E.CALLAHAN,C.P.A. _ _ L.PETER SCHERER,C.P.A. 535 NORTH H STREET WARD M.GALLACH ER,C.P.A. - � - JOHN A.RAABERG,C.P.A. - LOMPOC,CALIFORNIA November 23, 1970 REGENT 6-9252 APPROd,EL+O'BY -:Ty CC)UNCIL City Council City of Huntington Beach �.-.••--- -•--•� Huntington Beach, California ctry CLERK I Gentlemen: In connection with our examination of the financial statements of the City of Huntington ,Beach for the year ended June 30, 1971, we have in accordance with our agreement, completed certain phases of our work covering the three months ended September 30, 1970. The scope of our interim examination to date included the following: 1. Items of a financial nature were excerpted from the Council minutes for subsequent tracing to the financial records. 2. Testing of cash receipts and disbursements,. on a sampling basis was commenced. 3. Tests were made of selected revenue accounts to as- certain that the receipts were.properly recorded in the accounting records and that proper control was being maintained in .the handling of-cash receipts. No items of significance came, to our attention in the areas tested which would warrant disclosure to the council at this time. Very truly yours, DIEHL, EVANS AND COMPANY By :� DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS ELLIS C.DIEHL,C.P.A.(1925-1956) _ OTHER OFFICES AT: 1910 NORTH BUSH STREET - - - BRYN B.EVANS,C.P.A. 705 EAST MAIN STREET WIN"G. PETERS,C.P.A. - SANTA ANA,CALIFORNIA 9270.6 - SANTA MARIA,CALIFORNIA DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 WALNUT 5-2579 DONALD- E.CALLAHAN,C.P.A. - - - L.PETER SCHERER,C.P.A. - - - 535 NORTH H STREET - WARD M.GALLACHER,C.P.A. LOMPOC,CALIFORNIA JOHN A.RAABERG,C.P.A. June 15, 1970 - - - REGENT 6-8252 City. Council City of Huntington Beach Huntington Beach, California Gentlemen: In connection with our examination of the financial statements of the City.of Huntington Beach for the .year ending June 30,. 1970, we have, in accordance with our agreement, completed certain phases of our work covering the nine months ended March 31, 1970. The scope of our interim examination to date included the following: 1. Items of-a financial nature were excerpted from the Council minutes for subsequent tracing to the financial records. 2. Purchasing procedures and controls were reviewed and detailed tests made of selected purchase orders. 3. Tests were made of selected revenue accounts to ascertain that the receipts were properly recorded in the accounting records. No items of sufficient significance came to our attention in the areas tested. to warrant disclosure- to the Council at this time. Very truly yours, DIEHL, EVANS AND COMPANY By ING RA CITY OF jKMW&4'tMV ---------- -------6-1------------------ CP CALIFORNIA TY CMay 5, 1970 0 y Diehl, Evans and Company 1910 North Bush Street Santa Ana, CA 92706 Gentlemen: The City Council of Huntington Beach, at its regular meeting held Monday, May 4, 1970, accepted your proposed maximum fee for audit for the fiscal year ending June 30, 1971, of $4,000.00. Enclosed herewith, is a duly executed copy of your letter submitting said proposal. Sincerely yours, Paul C. Jones City Clerk PCJ:aw Enc. DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS ELLIS C.DIEHL,C.P.A41925-1G56) OTHER OFFICES AT: 1910 NORTH BUSH STREET 705 EAST MAIN STt.-C- 6RYN 6.EVAN S,C.P.A.WIN O.►¢TERS,C.P.A. SANTA ANA,CALIFORNIA 92706 SANTA MA DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 DONALD E.CALLAHAN,C.P.A. WALNUUTT 5-257G 25F '�?tM�A L.PETER SCHERCR,C,P.A. April 15, 1970 33S NORTH H STREET WARD M.6ALLACHER,C.P.A. JOHN A.RAAGER6,C.P.A. LOMPOC,CALIFORNIA REGENT 6-6252 City Council City of Huntington.Beach P. 0. Box 190 Huntington Beach, California Gentlemen: We are reviewing our audit fees at this time to determine the adequacy of our fees for the audit of your city for the year 1970-71 so that you may know the basis on which to budget for the coming year. A study of our salary costs disclosed that these have increased approxi- mately 25% during the last two years only. This increase is profession-wide and results from a combination of cost of living increases and a shortage of qualified accounting personnel. Since we are establishing fees to be charged for work to be done a year to eighteen months from now we must presume that some additional increases in our costs will take place. Our fee for the audit for the year ending June 30, 1970 has previously been established at a maximum of $3,225400 and this will be the basis for our billing for the current year. However this fee does not appear to be sufficient to cover both the growth of the city and increases in our costs since total time charges for the regular audit of your city has averaged $4,590.00 per year for the last three years. We propose a new maximum fee for the audit for the fiscal year ending June 30, 1971, of $4,000.00. You will benefit from any time savings in that we will- bill you only for the actual time charges expended should they be less than the above. These charges will be based on the following per diem rates: Partner $30.00 Manager $20.00 - $25.00 Supervisor $16.00 - $19.00 Senior accountant $15.00 - $16.00 Assistant $12.00 - $15.00 Clerical $5.00 We believe this fee to be reasonable for an efficiently conducted audit. We complete nearly, one hundred governmental audits each year. As a result we have an experienced staff and have designed standard audit programs and reports. This allows us to spend relatively more time in actual field work checking on internal control and counseling city personnel on the development and maintenance of good accounting records and reports. City of Huntington B4Oh -2- �. April 15, 1970 If this proposal is satisfactory please indicate your acceptance of sank: by signature on the attached copy in the space provided. We are extremely pleased to be associated with the City of Huntington ;each in the capacity of independent auditors. We trust that we may continue to prov ,le the City of Huntington Beach with a high level of professional assistance in all areas of financial responsibility. If you have any questions regarding this proposal or if we can be of assistance with any accounting problems please call on us at any time. Very truly yours, DIEHL, EVANS AND COMPANY By • Accepted: Title DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS ELLIS C.DIEHL,C.P.A.(1925-1956) OTHER OFFICES AT: B RYN B.EVAN S,C.P.A. 1910 NORTH BUSH STREET 705 EAST MAIN STREET WIN G. PETERS,C.P.A. SANTA ANA,CALIFORNIA 92706 SANTA MARIA,CALIFORNIA DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 WALNUT 5-2579 DONALD E.CALLAHAN,C.P,A. L.PETER SCHERER,C.P.A. - 535 NORTH H STREET WARD M.GALLACHER,C.P.A. LOMPOC,CALIFORNIA JOH N A.RAABERG,C.P.A. [� RAYMOND V. FRAZIER,C.P.A. May 18, 1971 REGENT 6-8252 City Council City of Huntington Beach Huntington Beach, California �r� �ti �� �e- ✓v Gentlemen: In connection with our examination of the financial statements of the City of Huntington Beach for the year ended June 30, 1971, we have completed the following additional phases of our interim work: 1. Items of a financial nature were excerpted from the Council minutes for subsequent tracing to the financial records. 2. Testing of cash receipts and disbursements, on a sampling basis, was continued for the period reviewed. 3. Procedures for internal control of cash receipts were reviewed for selected revenue accounts. 4. Appropriations per the general ledger were reviewed for compliance to the 1970-71 budget and properly approved revisions. 5. Confirmations were sent out for selected utility accounts for agreement to city records. 6. Counts were made of selected city cash funds for agreement to control amounts. 7. Payroll procedures were reviewed and detailed tests were made of selected employees for agreement to city wage scales and that withholdings were in agreement with governmental regulations. As a result of our review we submit the following recommendations: Recreation Department: 1. Prenumbered receipts or numerically controlled tickets should be employed for all payments received. They are presently issued• only at the request of the payor, 2. Total monies received and deposited for a particular program should be reconciled to the total number of participants. 3. Consideration could be given to the use of a cash register in the recreation department. 4. The cash box should be kept in a safe-place overnight such as a vault or locked in a desk drawer, City Council City of Huntington Beach -2- May 18, 1971 General : 1. It was noted that monies collected by various department were being held for a considerable length of time. Deposits should be made to the city cashier on a timely basis, preferably daily. 2. For historical record purposes all departments making deposits to the cashier should obitain a validated deposit slip and maintain such on file. The finance department should maintain and control pre-numbered receipts received with the cash receipts summary. 3. Paid invoices should be stamped or perforated to prevent repayment. 4. As part of our interim examination we selected four special assessment district bond ledgers for balancing to the accounting records. In two of the districts the cash on hand per the bond ledgers did not agree with the accounting records. We recommend that all special assessment district bond ledgers be reconciled to the accounting records. It was also noted that the Treasurers office is behind in updating the cash control and assessment district bond ledgers. Very truly yours, DIEHL, EVANS AND COMPANY I by i i I I M E M 0 R A N D U M TO: Honorable Mayor and City Council TO: FROM: Doyle Miller, City Administrator DATE : April 26 , 1971 The attached letter from Diehl ,, Evans and Company, the city 's auditors , sets forth the maximum fee and the charges on which the fee is based for the fiscal year ending June 30 , 1972 . It is the recommendation of the Finance Director and the City Administrator that the proposal be accepted . Doyle ller ille City V ity ministrator DM: BWO attach . M 1: DIEHL, EVANS AND .COMPANY CERTIFIED PUBLIC ACCOUNTANTS ELLIS C.DIEHL,C.P.A.(1925-1956) - OTHER OFFICES AT: BRYN B.EVAN S,C.P.A. 1910 NORTH BUSH STREET - - � - � 705 EAST MAIN STREET WIN G. PETERS,C.P.A. ., SANTA ANA,CALIFORNIA 92706 SANTA ASTMAR M IN STREET DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 - WALNUT 5-2579 IFORNIA DONALD E.CALLAHA N,C.P.A. - L.PETER SCHERER,C.P.A. - 535 NORTH H STREET WARD M,GALLACHER,C.P.A.JOHNA. C.P.A. LOMPOC,CALIFORNIA IA RAYMOND V. FRAZIER,C.P.A. A ril 13� 1971 REGENT 6-8252 City Council City of Huntington Beach P. 0. Box 190 Huntington Beach,_ California Gentlemen: Most of our municipal clients are now preparing budgets for the 1971-72 fiscal year. Our contracts provide for any request for a change in the audit fee to .be made at this time so that the new fee can be reflected in the new budget. Our fee' for the 1970-71 audit has previously been established at $4,000 and this will be the basis for our billing for the current year. We have made a careful review of past years time charges and have conservatively es.timated the effect of increased salaries and other costs during the coming year to arrive at an estimate of total time charges for 1971-72. -Based on this estimate we propose 'a new maximum fee for the fiscal year ending June 30, 1972 of- $4,600. Our clients will .benefit from any time savings in that we will bill for only the actual time charges expended should they be less than the above. These charges will be based on the following per diem rates: Partner $30-35 Manager $22-27 Supervising Senior $20-25 Senior $16-19 Assistant $11-15 .Clerical $4-6 We believe this fee to be reasonable for an efficiently conducted audit. We complete approximately one hundred audits each year of governmental agencies. As a result we .have designed standard audit programs and reports. This allows us to spend relatively more time in actual. field work in auditing, checking internal control, and counseling with city personnel on the development and maintenance of good accounting records and reports. City Council City of Huntington Beach -2- April 13, 1971 Many municipalities budget appropriations higher than our maximum fee for the regular audit to enable them to utilize our services, as many of our clients do, in special studies and reviews. In some cases we are asked to provide a city with an outside independent viewpoint on a matter. In many other instances we perform functions which city personnel either do not have the time to perform or do not have the background to do so. We are broaching this subject at this time because we recognize that cities in general are facing prospects of inadequate revenue resources for the programs they desire to carry out. We can perhaps lend some assistance as another resource tool to city management on long range planning and budgeting and cost control programs. We are extremely pleased to be associated with the City of Huntington Beach in the capacity of independent auditors. We trust that we may continue to provide the city with a high level of professional assistance in all areas of financial responsibility. If you have any questions regarding this proposal or if we can be of assistance in any way, please call on us at any time. If this proposal is satisfactory, please indicate your acceptance of same by signature on the attached copy in the space provided. Very truly yours, DIEHL, EVANS AND COMPANY By i Accepted: I By i i Title I I I I � I rr' F i To �� Date 00 Bvs s /d cc-- TO ESV&c -s 17WVe ,;Z�z c i /,t//�2�5+��r•�•J o�- i2�Zo.�.r�S r.(O '?o Oe�-fc .�9k�� �JdJNEZErS�' �C�rxOt�✓X-to dr= Tam c a . rY �c Ve i �rZ�a-1�lr�� ifi��.�v✓rr� ,- PLEASE REPLY TO — Signed Date Signed Redif?rm SEND PARTS 1 AND 3 WITH CARBONS INTACT. 4S 465 PART 3 WILL BE RETURNED WITH REPLY. �• �4 City of Huntington Beach ra DATE APe• i i TO /5 QX-/K Ae,5y ZL O FROM 3,e/' -A/Dg-X C.4.5 ❑ FOR YOUR INFORMATION ❑ NOTE & FILE ❑ NOTE & RETURN ❑ PREPARE REPLY FOR ABOVE ❑ REPLY DIRECT K INVESTIGATE & REPORT ❑ CONTACT ABOVE ON THIS MATTER ❑ IN ACCORDANCE WITH YOUR REQUEST ❑ PLEASE CIRCULATE REMARKS i 126,EWs E 61 Je U5 veu le /Z&-c a 14 M+ EN�fI $y Fawo.ZPA-4Dere C31srt DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS E LLIS C.DIEHL,C.P.A.(1925-1956) OTHER OFFICES AT: 1910 NORTH BUSH STREET 705 EAST MAIN STREET B RYN B.EVANS,C.P.A. WIN G. PETERS,C.P.A. SANTA ANA,CALIFORNIA 92706 SANTA MARIA,CALIFORN IA DONALD H.PETERSON,C.P,A. Kim BERLY 2.-4453 WALNUT 5-2579 DONALD E.CALLAHAN,C.P.A. L.PETER SCHERER,C.P.A. 535 NORTH H STREET WARD M.GALLACHER,C..P.A. JOHN A.RAABERG,C.P.A. - LOMPOC,CALIFORNIA RAYMOND V. FRAZIER,C.P.A. April 13, 1971 REGENT 6-8252 City Council City of Huntington Beach P. 0. Box 190 Huntington Beach, California. Gentlemen: Most of our municipal clients are now preparing budgets for the 1971-72 fiscal year. Our contracts provide for any request for a change in the audit fee to be made at this time so that the new fee can be reflected In the new budget. Our fee for the 1970-71 audit has previously been established at $4,000 and this will be the: .basis for our billing for the current year. We have made a careful review of past years time charges and have conservatively estimated the effect of increased salaries and other costs during the coming year to arrive at an estimate of total time charges for 1971-72. Based on this estimate we propose a new maximum fee for the fiscal year ending June 30, 1972 of $4,600. our clients will benefit from any time savings in that we will bill for only the actual time charges expended should they be less than the above. These charges will be based on the following per diem rates: Partner $30-35 Manager $22-27 Supervising Senior $20-25 Senior $16-19 Assistant $11-15 Clerical $4-6 We believe this fee to be reasonable for an efficiently conducted audit. We complete approximately one hundred audits each year of governmental agencies. as a result we have designed standard audit programs and reports. This allows us to spend relatively more time in actual field work in auditing, checking internal control, and counseling with city personnel on the development and maintenance of good accounting records and reports. 3 MEHL. EVAmS AND COMPANY CCRfTIVIED PUBLIC ACCOUNVANTB (CLIf�C.®I(WL,C.rA.(t988•tNS8) ItD10 gOWT00 ®1d11P1 $TiR6[Y OYCtlgW(i>B90�Sfl®8: MOVN Q.TVANS,C.P.A. PC% (AST MAM OTR(BT WIN 6.P(T(RS,C.P.A. SAWTA ANA,CALIFORNIA 02700 t3�ITA 68A>8?A,S6M 19&'�BEiti�L,a CG ALO 6.CALLAHANPETERSON,C.P.A. (llCIOQRL�8�49$S WALNYT$-267a / Q9NAL0 (.CALLANAN,C.P.A. � L. G P(T(R OCNENtCALLACR,C.C A. April 15 1970 use NORTW 64 OV099T eAco® U.oALLAceICR,C.P.A. � s JOHN A.SAA®(Ra,C.P.A. a.CQOR+®G,Q�+b!® APpRO V B Mae aly o-eawn . ° c�vvcI City Council City of Huntington Beach19,-„� P. 0, Boat 190 - Buntington Beach, California Gentlemen: We are reviewing our audit fww at this t1m to determine the ada4mcy of our fees for that audit of your city for the year 1970-71 so that you may kam the basis on which to budget for the commies year. A study of our salary coasts disclosed that tbaee have increased affrmi- . } astely 252 during the last rw peace *sty, This increase is profession-wide and results from a combination of cost of living increases and a shortage of qualified accounting personnel. Since we are establishing tees to be ehused for work to be done a Yaw to eighteen months from now we w8t p mas that @am mWitional increases in our eosts will take place. Our gee for the audit for tho year endi4 .dune 30, 1970 has previously been established as a waxieaA of $3.225.00 and this will be the basis for our billing for the current year. However thin, fee does not appear to be sufficient to cover both the growth of the city crew increases in our costs since total tim charges for the regular audit of your city has averaged $4,590.00 per yanar for the last three years.. We propose a new maxis= few for the audit for the fiscal year eneliag .dune 30, 1971, of $4,000.00. You will benefit fr mm any time savings in. that we will bill you only for the actual tine chaargee expanded should they be leas than the above- These charges will be based on than following per diem rates: Partner . $30.00 Manager $20.00 - $25.00 Supervisor $16.00 m $19.00 Senior accountant $15,00 - $16.00 Assistant $12.00 - $15.00 Clerical $5.00 We believe this fees to be reasonable for an efficiently conducted audit. We complete nearly one hundred govicerene wtal suafits 'each year. As a result we have an experienced staff and have designed standard audit program and ieports. Thin allows us to spend relatively more tiem in actual field work checking on internal control and counseling city personnel on the development and maintenance of good accounting records and reports. City cf ilintington Beach, -2- April 15, 1970 If thin proposal is satisfactory please indicate your acceptance of same by signature on th,? attached copy in the space. provided. We are extremely pleased to be associated with the City of Huntington Beach in theusapazity of independent auditor€. We trust that we may cor,t..nue to provide the City of Huntington Beach with a high level of professicnal assistance in all. areas of finar.ciJ rr-spo^-ihilit:r If you have any questions regard `ng this proposal cr if we can be of assistance with any accounting problems please call on us at any time, Very truly yours.; D I EHL. EVAN S AND COMPANY By Accepted. Title =0 COWICIL DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS ELLIS C.DIEHL,C.P.A.(1925-1956) OTHER OFFICES AT: BRYN B.EVANS,C.P.A. 1910 NORTH BUSH STREET - 705 EAST MAIN STREET WIN G. PETERS,C.P.A. SANTA ANA,CALIFORNIA 92706 SANTA MARIA,CALIFORNIA DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 WALNUT 5-2579 DONALD E.CALLAHAN,-C.P.A. L.PETER SCHERER,C.P.A. 535 NORTH H STREET WARD M.GALLACHER,C.P.A. JOHN A.RAABERG,C.P.A. -LOMPOC,CALIFORNIA RAYMOND V. FRAZIER,C.P.A. February 20, 1970 REGENT 6-8252 Z44 City Council -r "-.,:City,of -Hurifington Beach Huntington Beach, California Gentlemen: In connection with .our examination of the financial statements of the City of Huntington Beach for the year ending June 30, 1970, we have, in accordance with our agreement, completed certain phases -of our work covering the six months . ended December 31, 1969. The scope of our interim examination to date included the following: 1. Items -of. a financial nature were excerpted from the Council minutes for subsequent tracing to the financial records. 2. Purchasing procedures and controls were reviewed and detailed tests made of selected purchase orders. 3. Tests were made of selected revenue accounts to ascertain that the receipts were properly recorded in the accounting records. No items of sufficient significance came to our attention in the areas tested to warrant disclosure to the ,Council at this time. Very .truly yours, DIEHL, EVANS AND COMPANY By t i i i i April 24, 1969 Diehl, Evans and Company 1910 North Bush Street Santa Ana, California 92706 Gentlemen: The hest Orange County Water Board, on April 23, 19692 approved the¢Audit Services Agreement for the fiscal year 1969-70. DA fully executed copy is attached for your files . Sincerely yours, Paul C. Jones Secretary PCJ:aw Enc. DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS ELLIS C.DIEHL,C.P.A.(1925-1956) OTHER OFFICES AT: B RYN B.EVANS,C.P.A. 1910 NORTH BUSH STREET 705 EAST MAIN STREET " WIN G. PETERS,C.P.A. SANTAANA,CALIFORNIA 92706 SANTA MARIA,CALIFORNIA DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 _ WALNUT 5-2579 DONALD E.CALLAHAN,C.P.A. _ _ L.PETER SCHERER,C.P.A. - 53S NORTH H STREET WARD M.GALLACHER,C.P.A. JOHN A,RAABERG,C.P.A. - LOMPOC,CALIFORNIA April 3, 1969 REGENT 6-8252 City Council City of Huntington Beach Huntington Beach, California Gentlemen: In connection with our examination of the"financial statements of the City of Huntington Beach for the year ending June 30, 1969, we have completed certain phases of our work covering the quarter.ended December 31, 1968. Our interim examination for the quarter ended December 31, 1968 included a review of various cash receipt and expenditure controls. 1 Receipts were tested by examination of prenumbered receipt number sequence and other remittance material as. compared to bank deposits. Expenditures were tested by examination of vendors' invoices, purchase -orders, approvals, and such other substantiating evidence deemed appropriate in the circumstances. Water billing procedures were reviewed and tests made of selected transactions. Council minutes, resolutions and ordinances were .reviewed for items of a financial nature. Nothing came to our attention in the areas covered by our tests which would warrant disclosure to the Council at this time. Very truly yours, DIEHL, EVANS AND COMPANY By Jeonr:.ls OUNCIL MiL o pt. 7P 'C, c &.7 . J 4 DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS E LLIS C.DIEH L,C.P.A.(1925-1856 OTHER OFFICES AT: BRYN B.EVANS,C.P.A. 1910 NORTH BUSH STREET 705 EAST MAIN STREET WIN G.PETERS,C.P.A. SANTA ANA,CALIFORNIA 92706 SANTA MARIA,CALIFORNIA. DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 - WALNUT 5-2579 DONALD E.CALLAHAN,C.P.A. (..PETER SCHERER,C.P.A. 535 NORTH H STREET WARD M.GALLACH ER,.C.P.A. JOHN A.RAABERG,C.P.A. December 24, 1968 LOMPOC,CALIFORNIA REGENT 6-8252 City Council By City of Huntington Beach """"' Huntington Beach, California , _ .......... ]g�q - Gentlemen: In connection with our examination of the financial statements of the City of Huntington Beach for the year ending June 30, 1969, we have . completed certain phases of our work covering the quarter ended September .30, 1968. Our interim examination for the quarter ended September 30, 1968 included a review of various cash receipt and expenditure controls. Receipts were tested by examination of prenumbered receipt number sequence and other remittance material as compared to bank deposits. Expenditures were tested by examination of vendors' invoices, purchase orders, approvals, and such other substantiating evidence deemed appropriate in the circumstances.. Council minutes, resolutions and ordinances were reviewed for items of a financial nature. Nothing came to our attention in•'the areas covered by our tests which would warrant disclosure' to the Council at this- time. Very truly yours, DIEHL,• EVANS AND COMPANY • ' By U COUNC(d DIEHL, EVANS AND COMPANY JUs 13 196b CERTIFIED PUBLIC ACCOUNTANTS �JJ ELLIS C.DIEHL,C.P.A.(1925-1956) 1910 NORTH BUSH STREET OTHER OFF CES AT: BRYN B.EVANS,C.P.A. 705 EAST MAIN STREET WIN G. PETERS,C.P.A. SANTA AN A,CA LIFORNIA 92706 SANTA MARIA,C4LIFORNIA DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 WALNUT 5-2579 DONALD E.CALLAHAN,C.P.A. - L.PETER SCHERER,C.P.A. - 535 NORTH H STREET - WARD M.GALLACHER,C.P.A. JOHN A.RAABERG,C.P.A. June 4 1968 LOREGENT6-825 NIA 7 - REGENT 6-6252 City Council City of Huntington Beach Huntington Beach, California Gentlemen: In connection with our examination of the financial statements of the City of Huntington Beach for the year ending June 30, 1968, we. have completed certain phases of our work covering the quarter ended March 31, 1968. Our interim examination for the quarter ended March 31, 1968, included a review of the reconciliation of fund cash balancesas reflected on the City finance department's records to balances as shown. by bank statements. Petty cash and change funds were counted and reconciled. Investments were reviewed and reconciled to book balances. Expenditures were tested by examination of vendors' invoices, purchase orders, approvals, and such other substantiating evidence deemed appropriate in the circumstances. Franchise, royalty, planning, and subdivision revenues were examined on a test basis for propriety of charges. Council minutes, resolutions and ordinances were reviewed for items of a financial nature. Nothing came to our attention in the areas covered by our tests which would warrant disclosure to the Council at this time. Very truly yours, DIEHL, EVANS AND COMPANY By 1 APR .G: .jIN9 DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS ELLIS C.DIEH L,C.P.A.(1925-1956) OTHER OFFICES AT: 1910 NORTH BUSH STREET BRYN B.EVANS,C.P.A. 705 EAST MAIN STREET WIN G. PETERS,C.P.A. SANTA ANA,CALIFORNIA 92706 SANTA MARIA,CALIFORNIA DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 WALNUT 5-2579 DONALD E.CALLAHAN,C.P.A. L.PETER SCHERER,C.P.A. - 535 NORTH H STREET WARD M.GALLACHER,C.P.A. JOHN A.RAABERG,C.P.A. April 1 1968 LOREGENT6-825CALIFORNIA ) REGENT 6-8252 City Council City of Huntington Beach Huntington Beach, California Gentlemen: In connection with our examination of the financial statements of the City of Huntington Beach for the year ending June 30, 1968, we have com- pleted certain phases of our work covering the quarter ended December 31, 1967. Our interim examination for the quarter ended December 31, 1967, included a review of the reconciliation of fund cash balances as reflected on the City finance department's records to-balances as shown by bank statements. Investments 'were reviewed and reconciled to book balances. Expenditures were tested by examination of vendors' invoices, purchase orders, approvals, and such other substantiating evidence deemed appropriate in the circumstances. Business license and building permit revenues were examined on a test basis for propriety-of charges. Council minutes, resolutions and ordinances were reviewed for items of a financial nature. f^ Nothing came to our attention in the areas covered by our tests which would warrant disclosure to the Council.at this time. •Very truly yours, DIEHL, EVANS AND COMPANY . f DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS ELLIS C,DIEHL,C,P.A.(1925-1956) OTHER OFFICES AT: 1910 NORTH BUSH STF'FEET BRYN B.EVANS,C.P.A. 705 EAST MAIN STREET WIN G. PETERS,C,P,A. SANTA ANA,CALIFORNIA 92706 SANTA MARIA,CAI_IFORNIA DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 WALNUT 5-2579 DONALD E.CALLAHAN,C.P.A. L.PETER SCHERER,C.P.A. ,535 NORTH H STREET - WARD M.GALLACH ER,C,P.A. LO NIA JOHN A,RAASERG,C,P.A. REGENT 6-8252 May 12, 1967 A 3'./ II The Honorable City Council 19---- - City of Huntington Beach Huntington Beach, California Gentlemen: In connection with our examination of the financial statements of the City of Huntington Beach for the year ending June 30, 1967, we have completed certain phases of our work covering the quarter ended March 31, 1967 . Our interim examination for the quarter ended March 31, 1967 included reconciliation of fund cash balances as reflected on the City finance department's records to balances shown by bank statements . Investments were reviewed and reconciled to book balances . Expenditures were tested by examination of vendors ' invoices, purchase orders, approvals, and such other substantiating evidence deemed appropriate in the circumstances. Payroll proced^u=res were examined and payroll expenditures were tested by examination of time sheets, approved rates, computations for gross pay and deductions, and checks issued. Interfund transfers were examined for propriety. Council minutes, resolutions and ordinances were reviewed for items of a financial nature. Very truly yours, DIEHL, EVANS AND COMPANY By ,�- 3 3 a•. DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS E LLIS C.DIEHL,C.P.A.(1925-1956) OTHER OFFICES AT: - BRYN B.EVANS,C.P.A. 1910 NORTH BUSH STREET 705 EAST.MAIN STREET WIN G.PETERS,C.P.A. - SANTA ANA,CALIFORNIA 92706 SANTA MARIA,CALIFORNIA DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 WALNUT 5-2579 DONALD E.CALLAHAN,C.P.A. L.PETER SCHERER,C.P.A. .. 535 NORTH H STREET WARD M.GALLACHER,C.P.A. March 25 1967 � LO M POC,CALIFORNIA JOHN A.RAABERG,C.P.A. REGENT 6-6252 ByFThe Honorable City Council City of Huntington Beach .APR 3 196719 Huntington Beach, California Gentlemen: In connection with our examination of the financial statements of .the City of Huntington Beach for the year ending June 30, 1967, -_we have completed certain phases of our work covering the quarter ended December 31, 1966. Our interim examination for the quarter ended December 31,. 1966, included reconciliation of fund cash balances as reflected 'on the City finance department's records to balances shown by bank statements. Investments were reviewed and reconciled to book balances. Expenditures were tested by examination of vendors' invoices, purchase orders, approvals, and such other substantiating evidence deemed appropriate- in the circumstances. Business license acid building permit revenues were examined on a test basis for propriety of charges. Council minutes, resolutions and.ordinances were reviewed for items of a financial.nature. Very truly yours, DIEHL, EVANS AND COMPANY By DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS ELLIS C.DIEHL,C.P.A.(1925-1956) OTHER OFFICES AT: I910 NORTH BUSH STREET B RYN B.EVAN S,C.P.A. 307 SOUTH LINCOLN STREET WIN G.PETERS,C.P.A. SANTA ANA,CALIFORNIA 92706 SANTA MARIA,CALIFORNIA DONALD H.PETERSON,C.P.A. KIMBERLY 2-44S3 WALNUT 5-2579 ROLIN E.CUMMINGS,C.P.A. DONALD E.CALLAHAN,C.P. A. 535 NORTH H STREET L.PETER SCHERER,C.P.A. LOMPOC,CALIFORNIA JOHN A.RAABERG,c.R A. November 30, 1966 REGENT 6-8252 ;statements The Honorable City Council City of Huntington Beach ByEC 1Huntington Beach, California Gentlemen: In connection with our examination of the finan of the City of Huntington Beach for the year ending June 30, 1967, we have completed certain phases of our work covering the quarter ended September 30, 1966 . Under the terms of our engagement, certain phases of our annual examination are con- ducted on an interim basis at quarterly intervals throughout the year. However, it is only at the close of the fiscal year, June 30, 1967, that our examination is sufficient in scope to permit us to express An opinion on the financial statements of the City. Our interim examination for the quarter ended September 30, 1966, included a review of the reconciliation of fund cash balances as reflected on the books of the City Treasurer to the fund cash balances recorded on the City Finance Department's records and balances shown by bank statements . ' Investments were reviewed and reconciled to book balances. Expenditures were tested by examination of vendors' invoices, purchase orders, approvals, and such other substantiating evidence deemed appropriate in the circumstances. Business. license revenues were reviewed for propriety of collections. Parks and recreation receipts were compared to potential receipts as indicated by attendance reports. Council minutes, resolutions and ordinances were reviewed for items of a financial nature. No other points of sufficient interest were disclosed during our interim examination to warrant reporting to the Council at this time. I Very truly yours, i DIEHL, EVANS AND COMPANY By DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS ELLIS C.DIEHL,C.P.A.(1925-1956) 1910 NORTH BUSH STREET OTHER OFFICES AT: BRYN B.EVANS,C.P.A. 307 SOUTH LINCOLN STREET WIN G.PETERS,C.P.A. SANTA ANA,CALIFORNIA 92706 SANTA MARIA,CALIFORNIA DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 WALNUT 5-2579 ROLIN E.CUMMINGS,C.P.A. DONALD E.CALLAHAN,C.P.A. 535 NORTH H STREET L.PETER SCHERER,C.P.A. LO M POC,CALIFORNIA JOHN A.RAABERG,C.P.A. May '!9, 196E 8:J Eat S�J! REGENT 6-8252 The honorable City Council City of Huntington teach unt.i.n for Beach, California cntlemeu In tonne;t on with bur examination of the financial statements of the City 6 Huntington Beach for the year ending .Tune 30, 1966, we have completed certain phases of out Toork dovbring the quarter ended march 31., 066. under the terms of our en�,a ient, .certain phases of our annual examination are con- acted on an interim basis .rat -quarterly intervals throughout the year. However. it is only at the close or' the fiscal year, .Tune 30, 1966, that our ex rnination . is sufficient in ✓cape to permit- us to express an opinion on the financial statements of the City;' Our interim o4amination for the quarter ended March al 19b6, included a review of the reconciliation of fund caah balances as reflacted on the books of the City Treasurer .to the fund cash balantps recorded on the City Finance epartmont's records and balances shown by bank statements. We also reviewed cash c6ll.ect oh activities of various City departments. e noted that receipts ate not turned over to the City Treasuker for deposit to the bank daily. too advocate daily deposits of all cash ireceipts from all City Depa;r� ments tea provide for stronger control. over City funds. 'the establishment of a: Central. Cniihicri.ng System sbluld correct this situation. xpenditurds %sere tested by examination of vendors" invoices, purchase orders, approvals,, and such other substantiating evidence dee od appropriate in the circtmstances 3 in.ves t nts were reviewed and reconciled to book balances. Council mi:nutds, resolutions and ord€nanc"' were revi.eved 4n4 excerpted for items of a findfidiAl nature for tracing, to the accounts. i City Cmualcil . .City o-i Hunt-ington .Beach -2- s Y-lay 1 , 1966 Revenues from �rnnchises were xest'ed with reference to applicable ifes,olutiQn7s, and a greements. No other -points of bufficient. aiiterest were disclosed during our interim e%p&miha.tion to warrant kdoorting to ;the Council at this time. Very trtlly your€a, DIEHL, EVANS AND C014PA 'Y By i I I AI DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS ELLIS C.DIEHL,C.P.A.(1925-1956) OTHER OFFICES AT: 1910 NORTH BUSH STREET . BRYN B.EVAN S,C.P.A. 307 SOUTH LINGOLN STREET WIN G.PETERS,C.P.A. - SANTAANA,CALIFORNIA 92706 SANTA MARIA,CALIFORNIA DONALD H.PETERSON,C.P.A. KIMBERLr 2-4453 ROLIN E.CUM MING S,C.P.A. WALNUT 5-2579 DONALD E.CALLAHAN,C.P. A. - 535 NORTH H STREET L.PETER SCHERER,C.P.A. JOHN A.RAABERG,C.P.A. - January26 1966 LOREGENT6-825CALIFORNIA' - � REGENT 6-8252 The Honorable City Council City of Huntington Beach By E Huntington Beach, California 96 �E0. . 1g Gentlemen: In connection with our examination 'of the .financial statements of the City of Huntington Beach for the .year ending June 30, 1966, we have com- pleted certain phases of our work covering the quarter ended December 31, 1965. Under the terms of our engagement, certain phases of our annual examination are conducted on an interim basis at quarterly intervals throughout the year. However, it is only at the close of the fiscal year, June 30, 1966, that our examination is sufficient in scope to permit us to express an opinion on the financial statements of the City. Our interim examination for the quarter ended December 31, 1965, included a reconciliation of fund cash balances as reflected on the books of the City Treasurer to the fund cash balances .recorded on the City Finance Departments records and balances. shown by bank statements. Our interim examination also included surprise cash counts of twelve of the sixteen petty cash funds located in the various. departments throughout the City. Very minor differences were noted in three-of the petty cash funds and we reviewed control procedures with the custodian. in each case. Our main concern is with the large number of petty cash funds in existence throughout the City: We suggest that a study aimed at the eliminating of all petty cash funds except at one central readily accessible _ .point be made. If the physical location of a department, whose activities require that they make numerous minor cash purchases, is such as to make it too costly to send their people to the. central point for cash, then an. Additional fund could be established for .each such department. -1- Q..,r.,ly P60-0d 4T - The Honorable City Council City of Huntington Beach -2- January 26, 1966 No other points disclosed during our interim examination were of sufficient significance to warrant reporting to the Council at this time. Very truly yours, DIEHL, EVANS AND COMPANY ByL�2 '' /1-� 1" -- p - -2 y DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS. ELLIS C.DIEHL,C.P.A.(1925-I956) OTHER OFFICES AT: 1 - -. B RYN B.EVAN S.C.P.A. 910 NORTH BUSH STREET- 307'S OUTH LINCOLN STREET WIN G.PETERS,C.P.A. SANTA ANA,CALIFORNIA 92706 SANTA MARIA,CALIFORNIA DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 RO LIN E.CUM MiNGS,C.P.A. WALNUT 5-2579 - DONALD E.CALLAHAN,C.P.A. - 535 NORTH H-STREET L.PETER SCHERER,C.P.A. LOM POC,CALI FORN IA JOHN A.RAABERG,C.P.A. November 30, 1965 REGENT 6-8252 Y E ' The Honorable City Council City of Huntington Beach By Huntington Beach, California UEC 20-_-1965y- Gentlemen: In connection with our examination of the financial statements of the City of .Huntington Beach for the year. ending June 30, 1966, we have completed certain phases of our work covering the quarter ended September 30, 1965. Under the terms of our engagement, certain phases of our annual examinations are conducted on an interim basis at quarterly intervals throughout the year, but it is only at the close of the fiscal year, June 30, 1966, that our examination is sufficient in scope to permit us to express an opinion on the financial statements of the City. The scope of our interim examination for the quarter ended September 30, 1965, included a reconciliation of fund cash balances as reflected on the records of the City Treasurer to the fund cash balances recorded on the City Finance Department's records . These adjusted fund cash balances as of September 30, 1965, were then reconciled to the amounts shown per the bank statements . Copies of the reconciliation of fund cash balances and the necessary adjusting entries were given to the City Treasurer and the Director of Finance for recording . into their respective financial records. Our interim examination also included testing of payroll procedures with reference to pay rates and authorized deductions. Our examination of supporting documents in personnel files .indicated that the files should be reviewed and payroll deduction authorizations be-brought up to date. Also that payroll transaction sheets should be filed up to date. It is recommended that all wage increases and reclassifications be supported by properly approved payroll transaction sheets . '1_ City Council City of Huntington Beach -2- November 30, 1965 We were assured that with the addition to the personnel staff the files would be brought up to date in the near future. Disbursements to vendors were also examined on a test basis and some suggestions for improvement of internal control were made to accounting personnel. No other points of significant interest were disclosed during our interim examination to warrant reporting to the Council at this time. Very truly yours, ?-y•� L �� i Goo - 'z�" ��`_ iGG� � DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS E LLIS C.DIEHL,C.P.A.(1925-1956) OTHER OFFICES AT: 1910 NORTH BUSH STREET B RVN B.EVANS,C.P.A. 307 SOUTH LINCOLN STREET WIN G.PETERS,C.P.A. SANTA ANA,CALIFORNIA 92706 A,CA ORNIA LIF DONALD H.PETERSON,C.P.A. KIMBERLY 2-4453 SANTA MARWALK WALNUT 5-2LIF ROLIN E.CUMMINGS,C.P.A, 579 DONALD E.CALLAHAN,C.P. A. November- 18, 1965 535 NORTH H STREET L.PETER SCHERER,C.P.A. LOMPOC,CALIFORNIA JOHN A.RAABERG,C.P.A. REGENT 6-8252 "�J y .DES. s 19 � City Council City of Huntington Beach Huntington Beach, California Gentlemen: Our annual audit report for the City of Huntington Beach for the year ended June 30, 1965 contained the following statement on page 21: "All depositaries except the United California Bank met this requirement. Collateral pledged by United Cali- fornia Bank was under the required amount by approxi- mately $290,000.00." Information received after completion of our audit work confirmed the fact that additional collateral was held for United California Bank by Title Insurance and Trust Company. Therefore, the following sentence should be substituted for the two sentences quoted above: "All depositaries had met this requirement at June 30, 1965." We hope this change will not cause you too much inconven- ience. Very truly yours, DIEHL, EVANS AND COMPANY By ( Cs�f ram.