SR-05-13-1980-6PSanta Monica, Califo—iia
TO: Mayor and City Council
FROM: City Staff
SUBJECT: City of Santa Monica Audit
INTRODUCTION
This report concerns the award of bid for the City of Santa Monica Audit.
The recommended bid is the low bid for a five year period in the amounts
of $33,500 for fiscal year ending June 30, 1980; $33,500 for fiscal year
ending June 30, 1981; $33,683 (9.5% increase) for fiscal year ending
June 30, 1982; $40,168 (9.5% increase) for fiscal year ending June 30,
1983; and $43,984 (9.5% increase) for fiscal year ending June 30, 1984.
Funds for audit are to be appropriated by the City Council each year on
the adoption of the new budget.
BACKGROUND
Staff requested proposals from 300 certified public accounting firms to
audit City of Santa Monica's financial transactions for fiscal years
ending June 30 and to express opinions on the financial statements so
prepared. In addition to the general City financial statements, the
audit includes the preparation of separate reports for (1) Community
Development Block Grant Programs; (2) Revenue Sharing funds; and (3)
Section 15 requirements of the Urban Mass Transportation Act.
A total of eight (8) proposals were received ranging from the low bid
of $33,500 to $53,000 for the first year of multiple year contracts.
All of the firms are large and prestigious CPA firms and the proposals
were excellent in the understanding of the job requirements, the quality,
the recommended approach and the scope of work proposed.
Therefore, acceptance of the low bid of Peat, Marwick, Mitchell & Co. is
in the best interest of the City of Santa Monica, MAY 1 3 1 tlo
1 of 2
TO: Mayor ai'. ity Council May 8, 1980
RECOMMENDATION
It is recommended that the City Manager be authorized to execute an
agreement with the firm Peat, Marwick, Mitchell & Co. to perform the
City of Santa Monica Audit for 5 years.
Prepared By: Kay Watanabe
Acting Director of Finance
R.N. Aronoff
Purchasing Agent
Attachment
2of2
PROPOSAL FROM AUDIT FIRM RANKING BY LOWEST BID
I. Peat, Marwick, Mitchell & Co
II. Main Hurdman & Cranstoun
III. Arthur Andersen & Co.
Ernst & Whinney
For Fiscal For Fiscal For Fiscal For Fiscal For Fiscal
Yr. Ending Yr. Ending Yr'. Ending Yr. Ending Yr. Ending
6 -30 -80 6 -30 -81 6 =30 -82 6 -30 -83 6 -30 -84
33,500 33,500 36,683 40,168 43,984
(9.5) Incr (9.5),Incr (9.5) Incr
34,300
35,000
35,000
V. Linford, Jensen, Bradford & Co. 38,000
VI. Price Waterhouse & Co. 42,500
VII. Goode & Kiernan 44,980
VIII. Deloitte Haskins & Sells 53,000
34,600 37,300
Cost of Liv
Incr 10 -15% .
Cost of Liv Cost of Liv Cost of Liv Cost of Liv
Incr Incr Incr Incr
41,800
47,500 53,000 59,500
44,980 44,980.
Cost of Liv Cost of Liv Cost of Liv Cost of Liv
Incr Incr Incr Incr
Reference:
Contract No. 3483
(CCS)