HomeMy Public PortalAbout10) 7D Fourth Amendment to Agreement with Vavrinek, Trine, Day and CompanyAGENDA
ITEM 7.0 .
ADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
DATE: February 5, 2019
TO: The Honorable City Council
FROM: Bryan Cook, City Manager
By : Susan Paragas, Administrative Services Director
SUBJECT: APPROVAL OF A FOURTH AMENDMENT TO THE AGREEMENT WITH
VAVRINEK, TRINE, DAY & COMPANY, LLP FOR PROFESSIONAL
AUDIT SERVICES
RECOMMENDATION:
The City Council is requested to authorize the City Manager to enter into a fourth
amendment to the agreement for professional audit services with Vavrinek, Trine, Day
& Company , LLP (VTD) for Fiscal Year (FY) 2018-2019,(Attachment "A").
BACKGROUND:
1. On January 6 , 2016 , the City requested proposals from qualified Certified Public
Accounting (CPA) firms for a three-year contract to audit its financial statements
beginning with the fiscal year ending June 30, 2016, with the option to renew the
contract for an additional two fiscal years, for a total of 5 years (see Attachment "B").
2 . On April 5, 2016, the City Council authorized the City Manager to enter into an
agreement for professional audit services ("Agreement") with VTD for FY 2015-16 .
3 . On April 4, 2017, the City Council authorized the City Manager to enter into a first
amendment to the Agreement for professional audit services with VTD for FY 2016-
17.
4. On April 17, 2018, the City Council authorized the City Manager to enter into a
second amendment to the Agreement for professional audit services with VTD for
FY 2017-18.
5 . On January 2, 2019 , the City Council authorized the City Manager to enter into a
third amendment to the Agreement for professional audit services with VTD for the
FY 2017-18 GASB 75 accounting entries and related note disclosures .
City Council
February 5, 2019
Page 2 of2
ANALYSIS:
Government Code section 53891 requires the financial transactions of each local
agency to be submitted to the State Controller's Office ("SCO"). The State Controller's
Office Cities Financial Transactions Report ("CFTR") must contain underlying data from
audited financial statements prepared in accordance with generally accepted
accounting principles.
VTD prepared the FY 2016-2017 CFTR for the City last year and submitted it to the
SCO. It is being requested that Council approve the fourth amendment to the
Agreement for VTD ("Fourth Agreement") to perform the same work for the FY 2017-
2018 CFTR. It is anticipated that the City's Administrative Services Department will be
preparing the required report commencing with the FY ending on June 30, 2019.
The cost for this additional service from VTD is $3,700 (see Attachment "B") and will not
require additional appropriation as funding is available in the Financial Services
Division. The total revised VTD FY 2018-19 agreement amount, for the audit of the
year ended June 30, 2018, shall not exceed $60,790.
It is requested that the City Council authorize the. City Manager to enter into the Fourth
Amendment with VTD for FY 2018-2019 for the FY 2017-2018 SCO CFTR.
CITY STRATEGIC GOALS:
Actions contained in this report align with the City's strategic goal of good governance.
FISCAL IMPACT:
There is no fiscal impact for FY 2018-2019 as the additional cost of $3,700 is available
in account #01-920-48-4233. The total FY 2018-19 costs, with the Fourth Amendment,
shall not exceed $60,790.
ATTACHMENT(S):
A. Fourth Amendment to Agreement with VTD
B. SCO CFTR Engagement Letter
ATTACHMENT A
FOURTH AMENDMENT TO AGREEMENT FOR SERVICES
RIV #4838-6958-3880 v3
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by and between
the
CITY OF TEMPLE CITY
and
VAVRINEK, TRINE, DAY & COMPANY, LLP
Dated February 5, 2019
ATTACHMENT A
FOURTH AMENDMENT TO AGREEMENT FOR SERVICES
This Fourth Amendment to the Agreement for Services ("Fomih Amendment"), which is
dated for reference as indicated on the cover page, is hereby entered into by and between the CITY
OF TEMPLE CITY, a California charter city ("City"), and Vavrinek, Trine, Day & Company,
LLP ("Service Provider"), as follows:
RECITALS
A. On January 6, 2016, the City requested proposals from qualified Certified Public
Accounting (CPA) firms for a three-year contract to audit its financial statements beginning
with the fiscal year ending June 30, 2016, with the option to renew the contract for an
additional two fiscal years, for a total of 5 years.
B. On April 5, 2016, the City Council authorized the City Manager to enter into an agreement
("Agreement") for professional audit services with VTD for Fiscal Year ("FY") 2015-16.
C. On April 4, 2017, the City Council authorized the City Manager to enter into a first
amendment to the Agreement for professional audit services with VTD for the FY 2016-
17.
D. On April 17, 2018, the City Council authorized the City Manager to enter into a second
amendment to the Agreement for professional audit services with VTD for the FY 2017-
18.
E. On January 2, 2019, the City Council authorized the City Manager to enter into a third
amendment to the Agreement for professional audit services with VTD to include the
preparation of the required GASB 75, Accounting and Financial Reporting for
Postemployment Benefits other than Pensions, accounting entries and disclosures for the
FY ended June 30,2018.
F. On February 4, 2019, the City Council authorized the City Manager to enter into a fomih
amendment to the Agreement for professional audit services ("Fourth Amendment") with
VTD to include the preparation and submission of the State Controller's Office Cities
Financial Transactions Report for FY 2017-2018.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the promises made and recited herein, the
parties do hereby enter into this Fourth Amendment, which modifies and amends the Agreement
as follows:
1. AMENDMENT. The Agreement is hereby modified and amended as follows:
RIV #4838-6958-3880 v3
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ATTACHMENT A
SECTION 2. SCOPE OF SERVICES: In addition to the scope of services provided in the
Agreement and subsequent amendments, Service Provider is to perform services in the
preparation and submission of the State Controller's Office Cities Financial Transactions
Report for FY 2017-2018.
SECTION 4. COMPENSATION AND METHOD OF PAYMENT: Subject to any
limitations set forth in this Agreement, City agrees to pay Service Provider an additional fee
of$3,700 (see Attachment B) for a total compensation of$60,790 for the professional audit
services ofFY ended June 30,2018.
2. GENERAL PROVISIONS.
2.1 Remainder Unchanged. Except specifically modified and amended in this Fourth
Amendment and previous amendments, First, Second and Third, the Agreement remains in full
force and effect and binding upon the patties.
2.2 Integration. This Fourth Amendment consists of pages I to page 6 inclusive, which
constitute the entire understanding and agreement of the patties and supersedes all negotiations or
previous agreements between the parties with respect to all or any patt of the transaction discussed
in this Fourth Amendment.
2.3 Effective Date. This Fourth Amendment is effective on the date it has been formally
approved by the City Council and executed by the appropriate authorities of the City and Service
Provider.
2.4 Applicable Law. The laws of the State of California shall govern the interpretation
and enforcement of this Fourth Amendment.
2.5 References, All references to the Agreement include all their respective terms and
provisions. All defined terms utilized in this Fourth Amendment have the same meaning as
provided in the Agreement, unless expressly stated to the contrary in this Fourth Agreement.
IN WITNESS WHEREOF, the patties hereto have executed this Fourth Amendment to
the Agreement on the date and year first written above.
CITY:
RIV #4838-6958-3880 v3
DRAFT l/27/15
THE CITY OF TEMPLE CITY
By: __________________________ _
Bryan Cook, City Manager
ATTACHMENT A
ATTEST:
Peggy Kuo, City Clerk
APPROVED AS TO FORM
Eric S Vail, City Attorney
SERVICE PROVIDER:
Vavrinek, Trine, Day & Company, LLP
By:-----------
Name: _________ _
Title: _________ _
By: __________ _
Name: _________ _
Title: _________ _
NOTE: SERVICE PROVIDER'S SIGNATURES SHALL BE DULY NOTARIZED,
AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS
MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF
INCORI'ORA TION, OR OTHER RULES OR REGULATIONS
Al'PLICABLE TO SERVICE PROVIDER'S BUSINESS ENTITY.
RIV #4838-6958-3880 v3
DRAFT 1/27/15
ATTACHMENT A
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity
of that document.
ALL-PURPOSE ACKNOWLEDGMENT NOTARY FOR CALIFORNIA
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On -----,..,;;r.;-----'--"2"'0_, before me, --,"""""'""""",.,.,,..,..,..,='70":,...-=,.,.,.,""=""'=="'--a e Name And lrtle Of Offrcer (e.g. "Jane Doe, Notary Public')
personally appeared------------------------------
Name of Signer(s)
who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State
of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though this section is optional, completing this information can deter alternation of the document or fraudulent
reattachment of this form to an unintended document.
CAPACIT(IES) CLAIMED BY SIGNER(S)
Signer's Name:
Individual
Corporate Officer
DESCRIPTION OF ATTACHED DOCUMENT
Title(s) Title or Type of Document
Partner(s) Limited
General
Attorney-In-Fact Number Of Pages
Trustee(s)
Guardian/Conservator
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
RIV #4838-6958-3880 v3
DRAFT 1/27115
Date Of Document
Signer(s) Other Than Named Above
RIV #4838-6958-3880 v3
DRAFT 1127/15
INTENTIONALLY LEFT BLANK
ATTACHMENT A
lfAVR!NEK, TRINE, DAY /i; CO.,LLI>
Certified Public Accountants
Julia James
City of Temple City
970 I Las Tunas Drive
Temple City, CA 91780
ATTACHMENT B
VALUE THE~~
You have requested that we prepare the Cities Financial Transactions Repm1 (CFTR) that includes year-end balance
sheets and related schedules of revenues, expenditures, and other related information in the form prescribed by the
California State Controller for the fiscal year ended June 30, 2018. As a result of the filing instructions required by
the California State Controller the CFTR will not include related notes to the CFTR.
Our Responsibilities
The objective of our engagement is to prepare the CFTR in accordance with the form prescribed by the California
State Controller based on information provided by you. We will conduct our engagement in accordance with
Statements on Standards for Accounting and Review Services (SSARS) promulgated by the Accounting and
Review Services Committee of the AI CPA and comply with the AI CPA's Code of Professional Conduct, including
the ethical principles of integrity, objectivity, professional competence, and due care.
We are not required to, and will not, verify the accuracy or completeness of the information you will provide to us
for the engagement or otherwise gather evidence for the purpose of expressing an opinion or a conclusion.
Accordingly, we will not express an opinion, a conclusion, nor provide any assurance on the CFTR.
Our engagement cannot be relied upon to identifY or disclose any financial statement misstatements, including those
caused by fraud or error, or to identify or disclose any wrongdoing within the entity or noncompliance with laws
and regulations.
Management Responsibilities
The engagement to be performed is conducted on the basis that management acknowledges and understands that
our role is the preparation of the CFTR in accordance with the form prescribed by the California State Controller.
Management has the following overall responsibilities that are fundamental to our unde11aking the engagement to
prepare your CFTR in accordance with SSARS:
I) The selection of the prescribed form by the California State Controller as the financial reporting framework to
be applied in the preparation of the CFTR.
2) The design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the CFTR that are free from material misstatement, whether due to fraud or error.
3) The prevention and detection of fraud.
4) To ensure the City complies with the laws and regulations applicable to its activities.
5) The accuracy and completeness of the records, documents, explanations, and other information, including
significant judgments, you provide to us for the engagement to prepare the CFTR.
2151 River Plaza Dr .. Suite 308, Sacramento. CA 95833 P 916.570.1880 F 916.570.1875 W vtdcpa.com
City of Temple City
2018 Cities Financial Transactions Report
January 2, 2019
Page 2 of2
6) To provide us with-
• Documentation, and other related information that is relevant to the preparation and presentation of the
CFTR,
• Additional information that may be requested for the purpose of the preparation of the CFTR, and
• Unrestricted access to persons within the City with whom we determine it necessary to communicate.
As part of our engagement, we will issue a disclaimer that will state that the CFTR was not subjected to an audit,
review, or compilation engagement by us, and we do not express an opinion, a conclusion, nor provide any assurance
on it.
Other Relevant Information
We estimate that our fees for these services will be $3,700. The fee estimate is based on anticipated cooperation
from your personnel and the assumption that unexpected circumstances will not be encountered during the work
performed. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate
before we incur the additional costs. Our invoices for these fees will be rendered each month as work progresses
and are payable on presentation.
It is our policy to keep records related to this engagement for 7 years. However, Vavrinek, Trine, Day & CO., LLP
does not keep any original client records, so we will return those to you at the completion of the services rendered
under this engagement. When records are returned to you, it is your responsibility to retain and protect your records
for possible future use, including potential examination by any government or regulatory agencies.
By your signature below, you acknowledge and agree that upon the expiration of the 7 year period, Vavrinek, Trine,
Day & CO., LLP shall be free to destroy our records related to this engagement.
We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the significant
terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our
engagement as described in this letter, please sign the enclosed copy and return it to us.
Sincerely,
;/::.,~
Vavrinek, Trine, Day & Co., LLP
JA:Ikm
190066
RESPONSE:
This letter correctly sets forth the understanding of the City of Temple City.
By:-------------------------------
Title:------------------------
Date:-----------------