SR-6I (2)
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MAY 12_
FIN CMD CT sd/F \FINANCE\ADMIN\STFRPTS\STRTAUD WPD
Council MeetIng May 12, 1998 Santa MonIca, California
TO Mayor and City Council
FROM City Staff
SUBJECT RecommendatIon to Authorize the CIty Manager to Negotiate and Execute
a Contract with KPMG Peat Marwlck To Provide Audit Services for the City
for Fiscal Years 1997-98 through 2001-02
INTRODUCTION
This IS to recommend that the City CouncIl authorize the City Manager to negotIate a
contract wIth KPMG Peat Marwlck to provide audIt services to the City of Santa MOnica for
the fiscal years endIng June 30, 1998 through June 30, 2002 at a cost not to exceed
$96,200 per year
Backaround
In March 1998, a Request for Proposal for audit services for a five-year period beglnnmg
wIth the fiscal year ending June 30, 1998 was sent to twenty-one accounting firms Four
firms submItted proposals
An Audit Proposal ReVIew Committee conslstmg of the ASSistant City Manager, the
Director of Resource Management, the Director of Finance, the City Treasurer/Revenue
Manager, the Accounting Manager, and the TranSit Administration Manager, evaluated the
four proposals that were received The proposals were evaluated on the baSIS of the fIrm's
Independence and the adequacy of profeSSional audIt personnel, auditIng expertise and
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MAY t 2 198
expenence to deal with the CIty'S financial complexity, audIt approach, and cost of audit
services Two firms were mVlted to make presentations to the Committee
As a result of the evaluation process, the Committee unammously recommended, and the
City Manager concurred, that KPMG Peat Marwlck be retamed
BudaetlFmanclal Imoact
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The Proposed Fiscal Year 1998-99 City Budget Will mclude suffiCient budget authOrity for
audIt services for the first year of thiS engagement
Recommendation
It IS recommended that the City Manager be authonzed to negotiate and execute a contract
With KPMG Peat Marwlck for audit services for fiscal years ending June 30, 1998 through
June 30,2002 at a cost not to exceed $96,200 per year
Prepared by Mike Denms, Director of Fmance
Candace Tysdal, Accounting Manager
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