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Home My WebLink About31332 / 81-43May 7, 1981 # 4 3 x�soLUrroN r ro• �. • r• : �. � i • � �r 1��/YM S Ya1� � 71• 1:�Yul�� • ��,ul�� YG a Y�,. BE IT RESOLVED by the Cotrmm� Cotmcil of the City o£ Oshkosh that the proper City officials are hereby authorized and directed to waive bids and enter an an agzeement with Arthur Andersen & Co, 777 East Wiswnsin Avenue, Milwaukee, Wiscorsin 53202 extending for one year the audit �ntract at a cost of not less than $27,500.00 or irore than 529,500.00. HE IT F'JF�I�R RESOLVED that ironey for this purpose to be appmriated. �rom the 1982 budget. SUEw�ITaED BY .^."r -'=::i',"�� .L v �.L`_-�ti�C.-/lX-�I� -43- :.F. k.tyG{tY+ t::. QFK : OSNKQSN : ��z, � MEA90RANDUM T0: William D. Frueh, FROM: Richard H. Jansen, DATE: hiay 4, 1981 SUBJECT: 1981 Audit COUNCIL-MANAGER ADPAINI57RA7101 Gity Dfanager Director.of Administ��on I have met with representatives of Arthur Andersen f� Co. to� discuss a one year extension on the audit contract. The three year contract expires with the 1980 audit. The cost for the last year (1980) was $18,500 which included their three year bid price of $16;000 plus $2,500 for the Dfass Transit Audit that was bid separately. The 1980 bid was apportioned as fellows: City General, $10,3Q0; hiass Transit; $2,500;.Water and Sewer, $5,70-0. The proposal for the 1981 audit will be a minimum of $27,500 to a maximum of $29,500, depending on the amount of time the Department of Administration can devote to the audit, Tt is importarit that the Gity endeavor to keep the bid to the minimum because this would mean that the Cit'y would gain the necessary experience in doing the consoli- dated statements_ This would keep the audit cost at lower levels in the future. The bid would be broken down as follows: City General Water f� Sewer Utilities A1ass Transit $16,250 8,250 3,000 $��,� $17,400 8,850 3,250 $ �6 I have taken the bids of three years ago and projected an 8% increase per year to try to determine the aud.it cost for 1981. I also included the P+tass Transit Audit and consolidated statements at todays cost without inflation. This attached analysis projects bids at todays rates with an 8% inflation factor. It is my recommendation that the quotation of $27,5�� to $29,500 is within the price range for the 1981 audit and for the reasons stated in a previous memo. I would request the Common Council to waive bids and extend the contract one year. I have attached a copy of my bid analysis and letter from Arthur Andersen � Co. outlining their proposal for the audit. CIiV NALL • 275 CNURCH AVENUE • P. O. BOX 1130 • OSHKOSH, WISCONSIN 54902 � t . FIRht Clifton, G�nderson �, Co. Coglianese Deloitte, Haskins F, Sells Ernst $ Ernst Robert E. Stauffer F, Co. PROJECTED BIDS OF �� R FIR�� FROM BTD PROPOSALS OF SEPTII��ER 13, 1978 BASE PROPOSAL $19,100 20,300 22,400 22,0�0 19,300 INCREASE at 80 $24,0�0 25,600 28,200 27,700 24,300 CW, SOLIDATED TRAIQSTT STATII�4ENfS $2,500 $2,000 2,500 2,000 2,500 2,000 2,500 2,000 2,500 2,000 �TAL $28,500 30,100 32,700 32,200 28,800 Qthe: Censzderations: 1. There is no assurance that the other firms would opine on consolidated statements. 2. Q��,her�firms have little or no experience with consolidated statements. Thus they could not produce them at this low cost, if at all. 3. 'ihe City does nt�t yet have the eacperience with the preparation of consolidated statenents to take a leadership role. ARTHUR i113DERSEN Sc CO• 7�7 Eesr �Cxscovsis Avesue P. O. Box 121s MILWAUAEE,��ISCO�SIS 53201 (4k4) 273-5300 r�ay i, i9si Mr. Richard H. Jansen Director of Administration City of Oshkosh 215 Church Avenue Post Office Box 1130 Oshkcsh, Wisconsin 54901 Dear Mr. Jansen: As discussed with you, this letter constitutes our proposal to perforcn the examination of the financial statements of the City of Oshkosh for the year ending December 31, 1981. We would perform an examination of the financial statements of a11 funds and account groups of the City as necessary to express the opinions discussed in the next paragraph. Our examination would be made in accordance with generally accepted auditing standards, including such tests of the accounting records and such other auditing procedures as we consider necessary to enable us to express our opinion on the financial statements. We would express opinions on the consolidated financial statements and on the combined financial statements as the basic financial statemenCs of the City. We would also opine as to whether the co�bining and accounY group financial statements and the supplementary financial information is fairly stated in all material respects in relation to the combined financial statements taken as a whole, Our work would also include an audit in accoxdance with the Audit Guide and Standards for Revenue 5haring Recipients and we would issue the compliance opinion contemplated by Act and regulations, which is required to be filed once every three years. ARTHUR ANDEiiSEN Sc CO- . iSr. Richard H. Jansen - 2- May 1, 1981 We would examine and opine on the 2ransit System's schedules to be filed with the Urban Mass Transit Administration. The City's financial report to be filed with the StaCe of iJisconsin Department of Revenue and the Water Btility's annual report to be filed with the Public Service Commission would be prepared by City management and are not required to be audited. Sde would consult with management as to the reporting requirements. We would continue to consult caith and assist the City £n its efforts to obtain the MEOA Certificate of Conformance. Our examination would include a review and evaluation of the existing system of. internal accounting control to pxovide a basis for reliance thereon in determining the nature, timing and extent of selective audit tests to be applied to recorded transactions and data ior ceztain periods of the year. Primary reliance for the prevention and detection of errors or irregularities must be placed on such system of internal accoun�ing control because it is in constant operation and covers all pzriods and transactions. Such a system cannot eliminate, however, the possibility that errors or irregularities may occur. While there can be no gu2rantee that such errors or irregularities would be detected by us, c,e would plan our examination to search for errors or irregularities tha*_ cvould have a material effect on the financial statements. Any irregularities coming to our attention caould, of course, be reported to you. � � . . At the completion of our engagement, we would provide a management letter including comments and recommendations on internal controls, accounting procedures and other financial and operational matters. Our charges for the examination referred to above would be in the range of $27,500 to $29,500. This tange is dependent on the level of assistance which can be provided by City management. We are pleased to have this opportunity to be of continued service to you. Very truly yours, �9 � jf_ LU.� C��i'�i'L�',.G�� " � M ? � C'. O � b '� � A � N � - > a� v � �,.. � • O l,. . O U 6 � zi +� «f � O � H � +'i O � � U � � � U � -I� O �O rl ,-I � 'd +> N � O � � � lS ii�I[T�{�v;�' . ( �.-.... . - `` � \�_ � .,� � � x � � � �.. N r-i �` r� ti . �.. \U � �\ U