HomeMy WebLinkAboutRPT 2 AUDIT COMM RPT. 04-02-90DATE:
TO:
FROM:
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MARCH 26, 1990
WILLIAM A. HUSTON, CITY MANAGER
RONALD A. NAULT, DIRECTOR OF FINANCE
REPORTS NO. 2
4-2-90
Inter - Com
SUBJECT: CITY OF TUSTIN AUDIT COMMITTEE'S ANNUAL REPORT AND
PRESENTATION OF CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORT
RECOMMENDATION:
Receive and file the attached Annual Report from the City's Audit
Committee and the Comprehensive Annual Financial Report.
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Ron d A. Nault
Finance Director
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Attachments
a:audcomm.rpt
DATE: MARCH 51, 1990 Inter - Com
TO:
FROM:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
WALTER T. SULLENS, CHAIRMAN, CITY OF TUSTIN AUDIT COMMITTEE
SUBJECT: ANNUAL REPORT OF THE AUDIT COMMITTEE AND SUBMITTAL OF THE
CITY OF TUSTIN'S COMPREHENSIVE ANNUAL FINANCIAL REPORT DATED
JUNE 30, 1989.
The City of Tustin Audit Committee has completed its second year
and has fulfilled the duties listed in Resolution No. 88-52.
The duties are detailed as follows:
1. REVIEW AND ADVISE ON THE SELECTION OF EXTERNAL AUDITORS.
The contract with Diehl, Evans and Company, Certified Public
Accountants, was extended one year to perform the June 30, 1989
audit. In addition, the Audit Committee has prepared a Request For
Proposal (RFP), in accordance with national standards for
distribution to CPA firms interested in bidding on the June 30,
1990 audit.
2. REVIEW AND ADVISE ON THE SCOPE OF THE AUDIT.
We asked Diehl, Evans and Company to perform additional audit work
on local cable t.v. companies and to review internal controls over
evidence in the Police Department property room.
The RFP details the scope of the audit for June 30, 1990.
3. REVIEW AND ADVISE ON ANY ACCOUNTING ISSUES WHICH MAY ARISE
DURING THE AUDIT.
No question of accounting issues was brought to our attention.
4. REVIEW AND ADVISE ON THE PROGRESS OF THE EXTERNAL AUDIT.
The June 30, 1989 audit ran smoothly.
5. REVIEW, EVALUATE AND COMMENT ON THE CITY'S FINANCIAL
STATEMENTS AND ON'THE AUDITOR'S REPORT.
Our external auditors, Diehl, Evans and Company have given a clean
opinion on the City of Tustin's financial statements. This means
that in their opinion, the financial statements present fairly, in
all material respects, the financial position of the City of
Tustin at June 30, 1989.
The City of Tustin's Comprehensive Annual Financial Report, as of
June 30, 1989, also contains historical and statistical data which
normally is not, and was not audited.
From an overall perspective, the Report is well crafted in that it
is well organized into three sections: Introduction, Financial,
and Statistical. It is readable. Not only does the choice of
words flow smoothly, but the movement from subject to subject also
flows smoothly. The front cover, done in peaceful earth tones, is
indicative of our farming community background.
In our opinion, our City's staff has given us a superior effort and
has turned out an exceptionally fine Report.
6. REVIEW AND EVALUATE THE AUDITOR'S MANAGEMENT LETTER AND
MANAGEMENT'S RESPONSES THERETO, INCLUDING THE ADEQUACY OF
MANAGEMENT'S ATTENTION TO CORRECTIVE ACTION.
We reviewed the Auditor's Management Letter and Management's
Response while in the presence of both. We are pleased to observe
Management's willingness to make changes and improvements in
accordance with the auditor's suggestions.
7. INQUIRE INTO AND OBTAIN ANSWERS TO ANY ISSUE OR ITEM IN
QUESTION INCLUDED IN THE FINANCIAL STATEMENTS.
We have inquired into various areas of City of Tustin finances and
are continuing to do so. Examples are: inquire into existence of
controls over consumable products such as vehicle parts and
accessories, gasoline, office supplies, folding chairs and computer
terminals; inquire into possibility of "tagging" desks, tables and
other fixed assets.
8. MAINTAIN A PUBLIC RECORD OF IT'S PROCEEDINGS AND REPORT TO THE
CITY COUNCIL AT LEAST ANNUALLY.
With the capable assistance of City staff, we have maintained a
public record of our meetings.
In concluding our Second Annual Report, we feel we have made a
positive contribution to the operation of the City of Tustin's
Finance Department.
We look forward to our involvement in the selection of the outside
auditors, which is up for bid, follow-up of unfinished items on our
agenda and any new business which will come before us.
Respectfully submitted,
Walter T. Sullens, Chairman
Audit Committee, City of Tustin
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