HomeMy WebLinkAboutCC Resolution 9564 (Auditing Services)RESOLUTION NO. 9564
A Resolution Authorizing the Signing of a
Contract, Lease or Agreement
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows:
The MAYOR and CITY CLERK are authorized to execute, on behalf
of the City of San Rafael, an extension of the agreement with
C.G. Uhlenberq for audit services (for 3 vears - fiscal vears
1995/96 throucrh 1997/98).
A copy of the original agreement and the extension are attached and
by this reference made a part hereof.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby
certify that the foregoing resolution was duly and regularly
introduced and adopted at a Reaular meeting of the City
Council of said City held on Mondav the 4th
day of March , 19 96 , by the following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Phillips, Zappetini & Mayor Borc
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
/� of
JEA:E M.LEONCINI, City Clerk
It R I nb INA L
AGREEMENT
FOR AUDITING SERVICES
This Agreement is made and entered into this 4th day of
MARCH , 1996. , by and between the CITY OF SAN RAFAEL
(hereinafter "CITY"), and C. G. UHLENBERG & CO. (hereinafter
"CONTRACTOR").
RECITALS
WHEREAS, the City desires to engage the services of a
contractor to perform the annual audit of the City and
WHEREAS, Contractor represents that it has the expertise,
experience and willingness to perform said audit,
AGREEMENT
NOW, THEREFORE, the parties hereby agree as follows:
1. PROJECT COORDINATION.
A. CITY. The City Manager shall be the representative
of the CITY for all purposes under this Agreement. The Finance
Director is hereby designated the PROJECT MANAGER for the CITY, and
said PROJECT MANAGER shall supervise all aspects of the progress
and execution of this Agreement.
B. CONTRACTOR. CONTRACTOR shall assign a single
PROJECT DIRECTOR to have overall responsibility for the progress
and execution of this Agreement for CONTRACTOR. --16F�R v T
is hereby designated as the PROJECT DIRECTOR
for CONTRACTOR. Should circumstances or conditions subsequent to
the execution of this Agreement require a substitute PROJECT
DIRECTOR for any reason, the CONTRACTOR shall notify the CITY
within ten (10) business days of the substitution.
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2. TERMINATION
A. Cause. Either party may terminate this Agreement
for cause upon ten (10) days written notice mailed or personally
delivered to the other party, and the notified party's failure to
cure or correct the cause of the termination notice, to the
reasonable satisfaction of the party giving such notice, within
thirty (30) days of the receipt of said notice.
B. Effect of Termination. Upon receipt of notice of
termination, neither party shall incur additional obligations under
any provision of this Agreement without the prior written consent
of the other. CONTRACTOR shall be due all fees related to work
performed prior to termination.
C. Return of Documents. Upon termination and if
requested, any and all CITY documents or materials provided to
CONTRACTOR and any and all of CONTRACTOR's documents and materials
prepared for or relating to the performance of its duties under
this Agreement, shall be delivered to CITY as soon as possible, but
not later than thirty (30) days after request.
3. OWNERSHIP OF DOCUMENTS.
CONTRACTOR
The written documents and materialsrepared by the
CONTRACTOR in connection with the performance of its duties under
this Agreement, shall be the sole property of CITY. CITY may use
said property for any purpose, including projects not contemplated
by this Agreement.
4. INSPECTION AND AUDIT.
Upon reasonable notice, CONTRACTOR shall make available
to CITY, or its agent, for inspection and audit, all documents and
materials maintained by CONTRACTOR in connection with its
performance of its duties under this Agreement. CONTRACTOR shall
fully cooperate with CITY or its agent in any such audit or
inspection.
5. ASSIGNABILITY.
The parties agree that they shall not assign or transfer
any interest in this Agreement nor the performance of any of their
respective obligations hereunder, without the prior written consent
of the other party, and any attempt to so assign this Agreement or
any rights, duties or obligations arising hereunder shall be void
and of no effect.
6. INSURANCE.
A. During the term of this Agreement, CONTRACTOR shall
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maintain, at no expense to CITY, the following insurance policies:
1. A comprehensive general liability insurance
policy in the minimum amount of one million ($1,000,000) dollars
per occurrence for death, bodily injury, personal injury, or
property damage;
2. An automobile liability (owned, non -owned, and
hired vehicles) insurance policy in the minimum amount of one
million ($1,000,000) dollars per occurrence;
3. If any licensed professional performs any of
the services required to be performed under this Agreement, a
professional liability insurance policy in the minimum amount of
one million ($1,000,000) dollars to cover any claims arising out of
the CONTRACTOR's performance of services under this Agreement.
B. The insurance coverage required of the CONTRACTOR by
Section 10. A., shall also meet the following requirements:
1. The insurance shall be primary with respect to
any insurance or coverage maintained by CITY and shall not call
upon CITY's insurance or coverage for any contribution;
2. Except for professional liability insurance,
the insurance policies shall be endorsed for contractual liability
and personal injury;
3. Except for professional liability insurance,
the insurance policies shall be specifically endorsed to include
the CITY, its officers, agents, and employees as additionally named
insureds under the policies;
4. CONTRACTOR shall provide to PROJECT MANAGER,
(a) Certificates of Insurance evidencing the insurance coverage
required herein, and (b) specific endorsements naming CITY, its
officers, agents and employees, as additional insureds under the
policies;
5. The insurance policies shall provide that the
insurance carrier shall not cancel, terminate or otherwise modify
the terms and conditions of said insurance policies except upon
thirty (30) days written notice to CITY's PROJECT MANAGER;
6. If the insurance is written on a Claims Made
Form, then, following termination of this Agreement, said insurance
coverage shall survive for a period of not less than five years;
7. The insurance policies shall provide for a
retroactive date of placement coinciding with the effective date of
this Agreement;
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8. The insurance shall be approved as to form and
sufficiency by PROJECT MANAGER and the City Attorney.
C. If it employs any person, CONTRACTOR shall maintain
worker's compensation and employer's liability insurance, as
required by the State Labor Code and other applicable laws and
regulations, and as necessary to protect both CONTRACTOR and CITY
against all liability for injuries to CONTRACTOR's officers and
employees.
D. Any deductibles or self-insured retentions in
CONTRACTOR's insurance policies must be declared to and approved by
the PROJECT MANAGER and the City Attorney. At CITY's option, the
deductibles or self-insured retentions with respect to CITY shall
be reduced or eliminated to CITY's satisfaction, or CONTRACTOR
shall procure a bond guaranteeing payment of losses and related
investigations, claims administration, attorney's fees and defense
expenses.
7. INDEMNIFICATION.
CONTRACTOR shall indemnify, release, defend and hold
harmless CITY, its officers, and employees, against any claim,
demand, suit, judgement, loss, liability or expense of any kind,
including attorney's fees, arising out of or resulting in any way,
in whole or in part, from any acts or omissions, intentional or
negligent, of CONTRACTOR or CONTRACTOR's officers, agents and
employees in the performance of their duties and obligations under
this Agreement.
8. NONDISCRIMINATION.
CONTRACTOR shall not discriminate, in any way, against
any person on the basis of age, sex, race, color, religion,
ancestry, national origin or disability in connection with or
related to the performance of its duties and obligations under this
Agreement.
9. COMPLIANCE WITH ALL LAWS.
CONTRACTOR shall observe and comply with all applicable
federal, state and local laws, ordinances, codes and regulations,
in the performance of its duties and obligations under this
Agreement. CONTRACTOR shall perform all services under this
Agreement in accordance with these laws, ordinances, codes and
regulations. CONTRACTOR shall release, defend, indemnify and hold
harmless CITY, its officers, agents and employees from any and all
damages, liabilities, penalties, fines and all other consequences
from any noncompliance or violation of any laws, ordinances, codes
or regulations.
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10. NO THIRD PARTY BENEFICIARIES,.
CITY and CONTRACTOR do not intend, by any provision of
this Agreement, to create in any third party, any benefit or right
owed by one party, under the terms and conditions of this
Agreement, to the other party.
11. NOTICES.
All notices and other communications required or
permitted to be given under this Agreement, including any notice of
change of address, shall be in writing and given by personal
delivery, or deposited with the United States Postal Service,
postage prepaid, addressed to the parties intended to be notified.
Notice shall be deemed given as of the date of personal delivery,
or if mailed, upon the date of deposit with the United States
Postal Service. Notice shall be given as follows:
TO CITY: Mr. Ransom Coleman, Finance Director
(Project Director)
City of San Rafael
1400 Fifth Avenue
P.O. Box 151560
San Rafael, California 944915-1560
TO CONTRACTOR: Jeffrey J. Ira, Partner
C. G. Uhlenberg & Co.
647 Veterans Blvd.
Redwood City, CA 94063
12. INDEPENDENT CONTRACTOR.
For the purposes, and for the duration, of this
Agreement, CONTRACTOR, its officers, agents and employees shall act
in the capacity of an Independent Contractor, and not as employees
of the CITY. CONTRACTOR and CITY expressly intend and agree that
the status of CONTRACTOR, its officers, agents and employees be
that of an Independent Contractor and not that of an employee of
CITY.
13. ENTIRE AGREEMENT -- AMENDMENTS..
A. The terms and conditions of this Agreement, all
exhibits attached, and all documents expressly incorporated by
reference, represent the entire Agreement of the parties with
respect to the subject matter of this Agreement.
B. This written Agreement shall supersede any and all
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prior agreements, oral or written, regarding the subject matter
between the CONTRACTOR and the CITY.
C. No other agreement, promise or statement, written or
oral, relating to the subject matter of this Agreement, shall be
valid or binding, except by way of a written amendment to this
Agreement.
D. The terms and conditions of this Agreement shall not
be altered or modified except by a written amendment to this
Agreement signed by the CONTRACTOR and the CITY.
E. If any conflicts arise between the terms and
conditions of this Agreement, and the terms and conditions of the
attached exhibits or the documents expressly incorporated by
reference, the terms and conditions of this Agreement shall
control.
14. SET-OFF AGAINST DEBTS.
CONTRACTOR agrees that CITY may deduct from any payment
due to CONTRACTOR under this Agreement, any monies which CONTRACTOR
owes CITY under any ordinance, agreement, contract or resolution
for any unpaid taxes, fees, licenses, assessments, unpaid checks or
other amounts.
15. WAIVERS.
The waiver by either party of any breach or violation of
any term, covenant or condition of this Agreement, or of any
ordinance law or regulation, shall not be deemed to be a waiver of
any other term, covenant, condition, ordinance, law or regulation,
or of any subsequent breach or violation of the same or other term,
covenant, condition, ordinance, law or regulation. The subsequent
acceptance by either party of any fee, performance, or other
consideration which may become due or owing under this Agreement,
shall not be deemed to be a waiver of any preceding breach or
violation by the other party of any term, condition, covenant of
this Agreement or any applicable law, ordinance or regulation.
16. COSTS AND ATTORNEY'S FEES.
The prevailing party in any action brought to enforce the
terms and conditions of this Agreement, or arising out of the
performance of this Agreement, may recover its reasonable costs
(including claims administration) and attorney's fees expended in
connection with such action.
17. APPLICABLE LAW.
0
The laws of the State of California shall govern this
Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement
as of the day, month and year first above written.
CITY OF SAN RAFAEL CONTRACTOR
Al ert /'oro, �ay� By.
Name: Jeff re J. Ira
Title: Partner
ATTEST:
Q .
Jdzine M. Leoncini, Ci y Clerk
APP D FORM:
G ry Ragolanti, City Attorney
18. COMPENSATION OF CONTRACTOR
City agrees to pay Consultant, based upon the number of
ours expended, an amount not to exceed $37,500, pursuant to the
9 terms and conditions outlined in contractor's proposal dated
February 16, 1996. If actual time is less than estimated, the
fees will be reduced accordingly.
19. Contractor shall perform the duties and obligations as
de c ed
F in Exhibit A attached hereto and incorporated herein.
Services/Professional Services
Contract Form 1 (1-95)
7
C. G UHLENBERG & "0.
CERTIFIED PUBLIC ACCOUNTArN TS
ROBERT E. BARSANTI. C.PA PEGGY H. CHEN. C.PA. JEFFREY J. IRA. C.PA.
February 16, 1996
City of San Rafael
Finance Department
ATTN: Randy Coleman
1400 Fifth Avenue
P. O. Box 151560
San Rafael, CA 94915-1560
We are pleased to have this opportunity to submit our proposal to provide your City's
auditing services. Our understanding of the work outline in the RFP is that we will
audit the general purpose financial statements (the Redevelopment Agency and the
Child Care Program), review the Appropriations Limit Calculation and provide a
management letter. We are confident C. G. Uhlenberg & Co. is the best qualified
firm to serve as your independent auditors. A brief list of reasons include:
• Governmental clients, with a balanced mix of cities, special districts,
school districts and others, represent over 85 percent of our audit practice.
• Our staff members are well trained and have all worked extensively with
governmental clients. Experience we have gained working with other
similar clients will benefit the City of San Rafael.
• Our primary objective is to give you dependable, reliable and timely
service. We will meet all deadlines within your specified time -frame.
• The people selected to serve the City will be sensitive to your workload.
We understand you and your staff must keep up with your current work as
well as deal with the audit.
• We are available twelve months of the year to serve our audit clients. You
are important to our firm. We promise a high level of involvement and
enthusiasm at all levels.
647 Veterans Boulevard, Redwood City, CA 94063
Phone (415) 365-2323 / Fax (415) 365-8394
City of San Rafael
February 16, 1996
Page 2 of 2
We are secure in our belief that our firm is the best qualified to meet your needs.
Once you have examined our proposal and contacted our references, we feel you will
agree.
This proposal is a firm and irrevocable offer for 60 days.
We look forward to being of service to you.
Very truly yours,
C. G. UHLENBERG & CO.
By
effre J.
Audit Approach
Our audit approach has been developed based on
-our experience as auditors for numerous local
governments. We have gained an in-depth
working knowledge and understanding of the
3 special needs and concerns of a city such as
yours. Our focus is on quality during all phases
of the audit, from the planning stage through the
workpaper and review process resulting in the
APPROACH finished product -- your financial statements and
TO THE management letter.
AUDIT Segmentation, Staff Levels and Hours
The CGU audit approach includes the following
elements:
Jeffrey J. Ira, the partner in charge of
this engagement will meet with the
Finance Director and the Deputy
Finance Director for an entrance
conference once a contract has been
signed. He will then meet with
Katherine Wong and Jennifer
Dermon-Shetz, the manager and
supervisor assigned to this
engagement, to discuss your City's
needs and some ideas for the
planning phase.
2. We have four phases to our audit
approach, with each phase having
specific objectives in mind.
Significant aspects of each phase are
outlined as follows:
C. G. UHLENBERG & CO. Page 10
a. Phase I, planning, is designed to evaluate your operating and accounting
procedures. This phase will be completed prior to the year-end closing of
your books and will provide the basis for a significant portion of our letter to
management. At the conclusion of this phase, we intend to provide the
Finance Director and Deputy Finance Director with a Year -End List detailing
the information which will be needed in order to facilitate the completion of
the audit in a timely manner with as little disruption to your day-to-day
operation as possible. If all items on the List are completed prior to
beginning phase II, we can usually complete the audit within the allotted
time -frame or earlier. We are willing to meet with management and discuss
our findings at the completion of phase I if you wish.
(1) We obtain our understanding of the internal control structure,
control environment, and accounting system through:
• Inquiries of appropriate management and staff personnel.
• Inspection of the City's documents and records.
• Observation of the City's activities and operations to
corroborate the results of inquiries.
• Testing of the controls to determine they are operating as
planned.
• Performance of preliminary analytical review on interim
financials. The analytical review entails comparing similar
information for the same time frame from the prior year and
also comparing current year-to-date information to the
budget to determine areas that may need additional
attention during Phase II.
b. Phase II is designed to complete our year-end audit procedures on the funds
and accounts of the City. The approach for phase II will be based on the
results of phase I. Audit programs will be tailored for your City's needs.
This work will begin after the closing of your books, sometime after August
1 St.
(1) Sample size and selection is based on your City and other similar
clients, as well as, our use of the PPC Guide to Audits of Local
Governments.
(2) We use Fastg, Lotus 1-2-3 for Windows Release 4, WordPerfect
and Microsoft Word for Windows software on laptop units for
work on the audit. Canon Bubble Jet and HP Laser Jet printers are
used on site for printing workpapers, schedules and memos.
%-- C. G. UHLENBERG & CO. Nage 11
(3) We have the capability to use Paradox or Monarch (software
programs) which allow us to download information from the City's
computerized general ledger so we work with your data.
(4) Analytical procedures during phase II involve comparing current
data to prior year and budget data. calculate dollar and
percentage variances and investigating differences. With our
history with the City, we can also analyze trends and relationships
of the various financial statement components.
(5) Laws and regulations that will be subject to audit will be
determined based on inquiry, review of revenue and expenditures
and familiarity we gain with the City, and with State and Federal
compliance requirements. Sample selection for compliance work
will be based on the respective compliance and audit guides, PPC
Audit Guides, our experience and judgment. and other various
sources.
c. Phase III is designed to complete all applicable compliance auditing required
for the City. This phase is completed in conjunction with phase II. This is
the time we will complete work for the Redevelopment Agency, Measure B,
Single Audit and the Appropriations Limit.
d. Phase IV consists of preparing and/or reviewing your financial statements to
determine if they are in conformity with generally accepted accounting
principles and standards of the Governmental Accounting Standards Board.
A preliminary management letter will be submitted by October 31, 1996. The
reports and management letter will be delivered no later than November 15th
following the fiscal year end. Audit report presentation will be scheduled for
any date thereafter at the City's preference.
Recommendations for Improved Management and Operations
We feel we have accumulated valuable knowledge in the field of governmental accounting and
auditing which has allowed us to offer a wide range of specific recommendations in the past to
increase the efficiency and effectiveness of other audit clients. With our background, we can
provide services which may be very beneficial to you presently and in the future. You, as our
client. can look to us for informed support year-round in all areas of interest or concern. In the
course of our engagement with the City of San Rafael, we will provide prompt, knowledgeable
answers to your questions regarding all aspects of accounting, finance, management, and operations.
.i
C. G. UHLENBERG & CO. Page 12
Identification of Potential Audit Problems
We do not anticipate any potential audit problems. The quality of the City of San Rafael's
accountingprocedures. dedication of City staff and management and the excellent rapport that was
demonstrated with our firm when we were your audits previously do not lead us to believe there will
be significant audit problems. If anything were to come to our attention during the course of the
audit, it would be reported to the proper management level, Finance Director and City Manager
and/or City Council, depending on the nature of the problem.
Control Risk Assessment
As part of our audit approach, we use questionnaires as a basis of our testing to gain an
understanding of the control environment and assess its overall effectiveness to plan the audit (to
identify the types of potential misstatements and factors that affect the risk of material
misstatement) and to consider the effect on the audit plan. This allows us to gain an understanding
of certain control procedures related to significant audit areas while obtaining an understanding of
the control environment. Based on our understanding of the control environment, the accounting
system and control procedures, control risk is assessed using our matrix and any modifications, if
any, are made to our audit programs.
EDP System Review
As part of our audit, we will conduct a complete review of the City's EDP system. This review will
also include a comprehensive overview of the activities of the MIS department. If any key
schedules are prepared on microcomputers we will also examine controls and security as it relates to
each independent workstation.
The key to our examination is the participation of the accounting and/or MIS manager. This is the
first person we will interview regarding the EDP system, and many of our subsequent audit steps
will be determined as a result of the information received.
Our standard procedures dictate that we determine the most efficient and non -intrusive method by
which we can gather the information needed for our review. Therefore, when a data download is a
commonplace activity in the EDP department, we will usually request information on diskette. -On
the other hand, if this is not a common practice it can place an inordinate demand on the EDP
personnel. In such cases, we will utilize printouts and other system documentation to supplement
our interview findings.
Each of our staff has been allocated a notebook computer. Additionally, ink jet printers are brought
to each audit site. This allows our staff to take full advantage of our governmental audit software,
and also provides us with the opportunity for the use of any client data which can be downloaded.
We have found that this increases efficiency tremendously. It enables us to put large amounts of the
City's information at our staff's disposal without disturbing City personnel. We have sent staff into
the field with the records of a city's disbursements for the year already loaded onto their notebook
computers.
%_-T C. G. UHLENBERG S CO. Page 13
We have a (Treat deal of experience in working with advanced EDP systems, and are often retained
to assist clients in establishing computer procedures and controls. This experience makes us
especially well-suited to conduct EDP examinations. When there is specific testing to be
performed. Mr. Barsanti will assign specific staff to do the testing and then personally review the
results. Mr. Barsanti will also prepare any management points or recommendations which are made
as a result of the examination.
Analytical Procedures
:analytical procedures are used at three points of time during our audits, during planning, during the
conduct of substantive tests of transactions and balances, and during final review of the completed
financial statements. Analytical procedures are used by our staff to obtain knowledge of conditions
and events, indicate the presence of possible misstatements, provide substantive evidence of
Balances and assess the financial condition of the City.
This will be accomplished during the three stages of the audit by using comparisons, trend analysis
of proofs of totals. As we obtain knowledge about the City, we will be able to direct our attention to
areas requiring greater audit emphasis as well as provide substantive evidence in support of
recorded account balances.
�� C. G. UHLENBERG & CO. Page 14
Audit Scope
We understand the scope of our services to the
City of San Rafael for the fiscal year ending June
30, 1996, 1997, 1998 and each of the two option
years to include:
Audit of the general purpose
financial statements of the City and,
depending on the results of the audit,
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express an ;opinion on the fair
presentation of its general purpose
financial statements in conformity
A UDIT
with generally accepted accounting
►SCOPE
principles. Our audit of your
financial statements will be
AND
conducted in accordance with
generally accepted auditing standards
WORKPLAN
prescribed -by the American Institute
of Certified Public Accountants, the
standards for financial audits set
forth in the U. S. General
Accounting Office's Government
Auditing Standards (1994), the
provisions of the Single Audit Act of
1984 and the provisions of U. S.
Office of Management and Budget
(OMB) Circular A-128, Audits of
State and Local Governments.
2. Periodic meetings with the Deputy
Finance Director and/or Finance
Director to keep the City informed
about the progress of the audit.
3. Perform technical review of the
comprehensive annual financial
report.
4. Preparation and issuance of the
following reports and financial
statements:
t{�'T C. G. UHLENBERG & CO. Pa;e 15
• CAFR for the City of San Rafael's General Purpose Financial Statements
• Cite of San Rafael Redevelopment Agency
city of San Rafael Child Care Grant
• City of San Rafael Single Audit Report (as required)
• Gann Appropriation Limit Letter
:A written report with respect to the adequacy and effectiveness of the City's current
accounting procedures and controls based on our understanding of the control structure
and assessment of control risk. This report will include comments on significant
clran!ues (trends) in the funds' balance sheets, operations, inadequacies, internal control,
and ether matters deemed appropriate.
0. :\ttcndance at City meetings to discuss the audit or the management recommendations
:is requested.
' C. G. UHLENBERG S CO.
_ I
PuQe 16
We are members of the AICPA Quality Control
Review Program. We have received an unqualified
opinion as to onr system of quality control at C. G.
Uhlenberg & Co. The review included specific
government engagements and also an engagement
that included a Single Audit. Please see Appendix 1
for a copy of the most recent report.
In addition, we have had external quality reviews by
the State Controllers Office and the Federal
SDepartment of Education. Based on these reviews,
our audits substantially complied with generally
accepted auditing standards and the standards for
financial and compliance audits contained in the
QUALITY U.S. General Accounting Office's Standards for
Audits of Governmental Organizations Programs,
REVIEW Activities, and Functions; issued by the U.S.
General Accounting Office; the Single Audit Act of
1984; and the provisions of OMB Circular A-128,
Audits of State and Local Governments.
We have not been subject to any disciplinary action
against the firm during the past three (3) years or
previously, with any state regulatory bodies or
professional organizations.
�`T
C. G. UHLENBERG & CO. Page 17
Rates and Hours
Level of
Personnel Rate Hours
Partners
$100-135
20
Manager
65- 75
40
Supervisor
55- 60
200
Seniors
55
175
Staff
50
175
7. Total hours/price
1
610
Cost Data: Our professional fees are based on
FEES/ actual time devoted to an engagement, at hourly
rates related to the experience levels of the
individuals performing the work. While our rate
COMPENSATION structure is comparable to those of other public
accounting firms, we believe that the quality of our
people and the efficiency of our audit techniques
enable us to provide services of unsurpassed quality
and value.
The following estimates assume an annual inflation
rate of between 2.5 and 3.0 percent. If the rate of
inflation as reflected in the Consumer Price Index
(CPI) in any subsequent year is less than two
percent or more than seven percent, we would
expect to adjust our fee accordingly. Also, unless
there is a substantial change in the City's operations
or audit requirements, or a significant change in the
rate of inflation, we commit that our maximum fees
will not exceed the prior year's fee increased with
relation to the CPI, should the City wish to extend
the contract beyond the proposal period.
The above fee estimates are based on established
hourly rates and estimates of time and expense. If
actual time or expense is less than the estimates,
our fee will be reduced accordingly.
Additionally, these estimates are based upon the
assumption that we will not encounter extraordinary
problems which would substantially extend the
scope of the audit. Should we encounter
• C. G. UHLENBERG & CO. Pacye 19
unexpected major problems during the course of our work or should the City request additional
services not covered by the proposal, these matters will, of course, be discussed with the City's
officials in order that appropriate arrangements may be agreed upon.
Fees and Billing Sequence
Anticipated
Service Hours Expended 1995/96
1. City of San Rafael
General Audit/Letter/
Gann Limit
2. Redevelopment (including
California Compliance Audit)
3. Child Care Grant
4. Single Audit
Total
1996/97 1997/98
410
$24,900
$ 25,525
$ 26,165
100
6,100
6,250
6,400
60
4,000
4,000
4,000
40
2.500
N/A
N/A
610
$ 37.500
$ 35.775
$36.565
Manner of Payment: The City will be invoiced for our services as work progresses, but not more
often than once per month. Invoices will separate labor from other expenses and will reflect total
hours worked by each classification. We understand there will be ten percent withheld from each
billing pending delivery of the final reports.
Additional Professional Services: Rates for additional services, should they become necessary,
would be billed at the same rate as those identified under Billing Rates on the previous page. Any
work not outlined in the RFP and our proposal would only be performed if agreed to in writing by
the City of San Rafael prior to the additional work being performed.
WC. G. UHLENBERG & CO. Page 20
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7.
FEES/
COMPENSATION
C. G. UHLENBERG & CO.
Rates and Hours
Level of
Personnel Rate Hours
Partners
$100-135
20
Manager
65- 75
40
Supervisor
55- 60
200
Seniors
55
175
Staff
50
175
Total hours/price 610
Cost Data: Our professional fees are based on
actual time devoted to an engagement, at hourly
rates related to the experience levels of the
individuals performing the work. While our rate
structure is comparable to those of other public
accounting firms. we believe that the quality of our
people and the efficiency of our audit techniques
enable us to provide services of unsurpassed quality
and value.
The following estimates assume an annual inflation
rate of between 2.5 and 3.0 percent. If the rate of
inflation as reflected in the Consumer Price Index
(CPI) in any subsequent year is less than two
percent or more than seven percent, we would
expect to adjust our fee accordingly. Also, unless
there is a substantial change in the City's operations
or audit requirements, or a significant change in the
rate of inflation, we commit that our maximum fees
will not exceed the prior year's fee increased with
relation to the CPI, should the City wish to extend
the contract beyond the proposal period.
The above fee estimates are based on established
hourly rates and estimates of time and expense. If
actual time or expense is less than the estimates,
our fee will be reduced accordingly.
Additionally, these estimates are based upon the
assumption that we will not encounter extraordinary
problems which would substantially extend the
scope of the audit. Should we encounter
Page 19
unexpected major problems during the course of our work or should the City request additional
services not covered by the proposal, these matters will, of course, be discussed with the City's
officials in order that appropriate arrangements may be agreed upon.
Fees and Billing Sequence
I i a
Anticipated
Service Hours EXDended 1995/96 1996/97 1997/98
1. City of San Rafael
General Audit/Letter/
Gann Limit 410 $24,900 $25,525 $ 26,165
2. Redevelopment (including
California Compliance Audit)
100
6,100
6,250
6,400
3. Child Care Grant
60
4,000
4,000
4,000
4. Single Audit
40
2.500
N/A
N/A
Total
610
$,37.500
$ 35.775
$ 36.565
Manner of Payment: The City will be invoiced for our services as work progresses, but not more
often than once per month. Invoices will separate labor from other expenses and will reflect total
hours worked by each classification. We understand there will be ten percent withheld from each
billing pending delivery of the final reports.
wAdditional Professional Services: Rates for additional services, should they become necessary,
would be billed at the same rate as those identified under Billing Rates on the previous page. Any
work not outlined in the RFP and our proposal would only be performed if agreed to in writing by
the City of San Rafael prior to the additional work being performed.
WC. G. UHLENBERG & CO. Page 20
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Elm
Jeffrey J. Ira, CPA
Partner in Charge of Engagement
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1
1
IC. G. UHLENBERG & CO.
Jeffrey is a graduate of Humboldt State
University with a B.S. in Business with a
concentration in Accounting. He is a CPA
licensed in California, a member of the AICPA,
the California Society of CPAs, the GFOA and
the CSMFO. Jeff joined our firm in 1984 as
audit manager and has been a partner since
1987. Jeff is a member of the GFOA Special
Review Committee, with responsibility for
reviewing CAFRs for award of the Certificate of
Excellence in Financial Reporting.
As Partner -in -Charge of this engagement, Jeff
will have overall responsibility for review
services to the City of San Rafael. He has
eighteen years of professional experience and
has participated in a variety of audit and
consulting engagements with Bay .Area cities
and towns including the following:
City of Berkeley
City of Pleasant Hill
City of San Bruno
City of Menlo Park
City of San Rafael
City of Sunnyvale
Recent Continuing Professional Education
• Financial Reporting, 1994
• Governmental Accounting, Reporting and
Auditing Update, 1995, 1994, 1993 and
1992
• How to Use PPC Audit Guide for State &
Local Governments, 1993
• Financial Reporting Update, 1993
• Interpersonal Communication Skills, 1995
Page 4
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Robert E. Barsanti, CPA
Consulting Partner
IW C. G. UHLENBERG & CO.
Robert is a graduate of the University of San
Francisco with a B.S. in Business with a
concentration in Accounting. He is a CPA
licensed in California, a member of the AICPA,
the California Society of CPAs, and the GFOA.
Bob joined our firm in 1967 and has been a
partner since 1975.
As Consulting Partner of this engagement, Bob
will have overall responsibility for review of the
financial statements. He has thirty years of
professional experience and has participated in a
variety of audit and consulting engagements
with Bay Area cities and towns including the
following:
City of Berkeley
City of Half Moon Bay
City of Pittsburg
Town of Portola Valley
City of San Bruno
Recent Continuing Professional Education
• Advanced Governmental Accounting,
1995
• Financial Reporting, 1994
• Governmental Accounting, Reporting and
Auditing Update, 1994, 1993 and 1992
• How to Use PPC Audit Guide for State &
Local Governments, 1993
• Financial Reporting Update, 1993
Page 5
Katherine Wong, CPA Katherine is a graduate of California State
Manager University at Hayward. Her degree is in
Business Administration with a concentration in
Accounting. Katherine started her career at
CGU in 1992, completing three audit seasons
before joining a firm in private industry for a
brief time. She has recently rejoined our firm.
Katherine will be responsible for the final
workpaper review and technical review as well
as assisting as needed. Relevant municipal
experience includes the following:
City of Berkeley
City of Menlo Park
City of San Rafael
City of Pittsburg
Town of Portola Valley
Recent Continuing Professional Education
• Advanced Governmental Accounting,
1995
• Governmental Accounting, Reporting and
Auditing Update, 1995
• Audits of State and Local Governmental
Units, 1994
• Financial Reporting and the GFOA
Certificate of Achievement, 1995
• A Practical Approach to Non -Statistical
Sampling, 1993
• Cash Flow Statement Presentation,
Preparation and Use, 1993
• Introduction to Governmental Accounting,
1992
• Audit Planning, 1995
• Interpersonal Communication Skills, 1995
IW C. G. UHLENBERG & CO. Page 6
Jennifer Dermon-Shetz, CPA
Supervisor
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C. G. UHLENBERG & CO.
Jennifer graduated from California State
University, Sacramento with a B.S. in Accounting.
Jennifer joined CGU in 1993 and has three seasons
of governmental audit experience. Prior to her
employment at CGU, Jennifer worked as a
manager in retail where she acquired valuable
experience supervising staff and dealing with the
public, both skills which she can use in public
accounting. Jennifer assists with the workpaper
review and assists the senior and staff accountants
as needed. She has worked on various
governmental audit engagements including special
districts. Some clients that Jennifer has served
follow:
City of Berkeley City of Pittsburg
City of Menlo Park City of San Bruno
Town of Windsor City of Pleasant Hill
Recent Continuing Professional Education:
• Advanced Governmental Accounting,
1995
• Interpersonal Communication Skills, 1995
• Redevelopment Financial Management
and Reporting, 1995
• Audits of State and Local Governmental
Units, 1994
• Intensive Workshop for Professional Staff,
'1994
• Using AICPA Accountant's Trial Balance,
1993
• Using AICPA Accountant's Financial
Statements, 1993
• A Practical Approach to Non -Statistical
Sampling, 1993
• Cash Flow Statement Presentation,
Preparation and Use, 1993
• Introduction to Governmental Accounting,
1993
Page 7
71
1
Leslie Shintani
Senior Accountant
C. G. UHLENBERG & CO.
Leslie graduated with honors from the University
of California at Santa Barbara. Her degree is a
B.A. in Business Economics with a concentration
in Accounting. She is a Golden Key National
Honor Society life time member and.has passed all
parts of the CPA exam. Leslie joined the staff at
CGU in 1994 and has two years of governmental
audit experience. Her experience includes the
following clients:
Her municipal experience includes, but it not
limited to the following:
City of Berkeley
City of San Bruno
City of Pleasant Hill
City of San Rafael
Recent Continuing Professional Education
• Audits of State and Local Governmental
Units, 1994
• Intensive Workshop for Professional Staff,
1994
• Using AICPA Accountant's Trial Balance,
1994
• Using AICPA Accountant's Financial
Statements, 1994
• A Practical Approach to Non -Statistical
Sampling, 1995
• Effective Auditing, 1995
• Introduction to Governmental Accounting,
1994
• Redevelopment Financial Management
and Reporting, 1995
Page 8
CJ
City of Pleasant Hill
Rich Ricci, Finance Director
Tel. (510) 671-5219
C. G. UHLENBERG & CO.
City of Sunnyvale
Sonja Gupte, Accounting Manager
Tel. (408) 730-7375
Page 9
Staff Accountants
Two staff accountants will be assigned based on availability and experience. We guarantee
only one first-year staff will be assigned to the City of San Rafael. All other staff
accountants will have in excess of one year governmental audit experience.
Professional Education and Training
Each partner and all staff receive the required 80 hours of CPE every two years with at least
24 hours of CPE in Governmental Auditing. As stated in our introduction we use a
combination of seminars, group study and self -study to accomplish these goals.
References
The best evidence that we can offer of the expertise of C.G. Uhlenberg & Co. is the
satisfaction of our clients. To assist you in evaluating our capabilities, we provide
'
references that you may contact for additional information as to the quality of our services.
These clients were all audited by our firm last year (fiscal year ended June 30, 1995).
City of Berkeley City of San Bruno
Eric Tsao, Acting Finance Director Molly Smith, Finance Director
Tel. (510) 644-6477 Tel. (415) 877-8280
City of Menlo Park Town of Windsor
Uma Chokkalingam, Finance Director Michael Moon, Administrative Services
1
Tel. (415) 858-3443 Director
Tel. (707) 838-1000
City of Pleasant Hill
Rich Ricci, Finance Director
Tel. (510) 671-5219
C. G. UHLENBERG & CO.
City of Sunnyvale
Sonja Gupte, Accounting Manager
Tel. (408) 730-7375
Page 9