Agenda Packets - 1985/07/08 - Laserfiche WebLink

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Mr. Donald Brayer June 14, 1985 Page 2 Normal contingencies include: • Ability of the City to close its monthly accounting records at year-end and provide the auditors with the schedules and other data as detailed in Exhibit A attached to our standard agreement. • No substantial and material changes in the financial activity/complexity of the City over the 1984 levels. • Unusual circumstances (feasance) requiring a more detailed investigation than would be necessary under ordinary circumstances. We have been the city's external auditor for the past four years. Our Company policy is to limit our billings to the agreed amount. We do not exceed such amounts unless it has been agreed upon before we incur such costs. We intend to continue such policy. The City can rely upon our past record. Additionally, the above "not -to -exceed" amounts are specified in the attached Agreement (see Section V). The City's last Revenue Sharing Compliance Audit was for the 1982 calendar year. You will be required to have your next such audit for 1985. The city's actual cost for the 1982 compliance audit was $1,800. We estimate that the cost for the 1985 Revenue Sharing Compliance Audit will be approximately $2,000. We will agree to perform such audit for the "not -to -exceed" amount of $2,000. All of the above cost estimates are based upon actual historical data and our 0 four years experience in working with and for the City. Similar assurances were provided three years ago and we did keep our commitments. Additionally (and more important), we did not sacrifice service to your City nor your City Council. Your 1984 Management Report totals thirty-one pages of communication to your City Council on the financial operations and position of your City. Included in that Report is a section on the General Fund, including the General Fund Reserve Balance. This balance now exceeds the City's "designated" levels for the first time in the City's history. We cannot and do not claim responsibility for this achievement. However, over 70% of the present balance was developed over the past three years. Additionally, the subject of adequate reserve balances was a major topic when we reviewed our first Management Report with your city Council. Subsequent to that meeting, your City revised its formal policies on the levels of reserve balance to be maintained. We do take pride in having assisted the City in revising its formal policy which led to the development of such reser- ves. We expect to continue to provide your city Council with quality infor- mation and communication. 0