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HomeMy WebLinkAboutRes OB-045 (2)OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT RESOLUTION NO. OB - 045 AUTHORIZING WHITE NELSON DIEHL EVANS LLP TO PROCEED WITH AUDITING SERVICES FOR THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY FOR THE FISCAL YEAR ENDING JUNE 30, 2013 SUBMITTED BY: Paul S. Gibson, Finance Director DATE: June 24, 2013 CONTENTS: Resolution OB - 045 White Nelson Diehl Evans LLP correspondence Recommendation By Minute Motion that the Oversight Board: 1. Adopt Resolution OB-045 authorizing White Nelson Diehl Evans LLP to proceed with auditing services for the Successor Agency to the Palm Desert Redevelopment Agency for the fiscal year ended June 30, 2013 for inclusion in the City of Palm Desert's Comprehensive Annual Report; and 2. Authorize the City Manager to approve work to be performed up to an amount of $12,026 for the Successor Agency to the Palm Desert Redevelopment Agency. Background On April 12, 2012, the City Council authorized Contract No. C27540 with White Nelson Diehl Evans LLP to perform auditing services for the City and its entities that fall under the umbrella of City of Palm Desert. Staff finds that White Nelson Diehl Evans LLP has a professional staff that is knowledgeable in the accounting arena and feels comfortable in calling them when an accounting question arises. While the service was approved, it was not expressly taken to the Successor Agency for the Palm Desert Redevelopment Agency Board for specific approval at that time. It has since been approved at the June 13, 2013 Agency Board meeting. Staff requests that the Oversight Board for the Successor Agency to the Palm Desert Redevelopment Agency adopt Resolution No. OB-045, authorizing White Nelson Diehl G:\Finance\Niamh Ortega\Staff Reports\Auditors\SR-OB adopt res authorizing White Nelson Diehl Evans for auditing services.docx Staff Report Oversight Board Authorizing White Nelson Diehl Evans LLP to perform auditing services for the Successor Agency for fiscal years ending June 30, 2012, 2013 and 2014 Page 2 of 2 June 24, 2013 Evans LLP to proceed with auditing services for the Successor Agency to the Palm Desert Redevelopment Agency for the fiscal year ending June 30, 2013, and authorize the City Manager to approve work to be performed up to an amount of $12,026 for the Successor Agency to the Palm Desert Redevelopment Agency. Fiscal Impact Funds are budgeted in the appropriate fiscal year budgets. Submitted by: b/1/(1 Paul S. Gibson, Director of Finance Approval: n M. Wohlmuth, Executive Director 11 ON Cp - a-� VERIFIED BY Original on file with City Clerk's Office (a.o, CiitAs CBS BY OVERSI T BOARD G \Finance\Niamh Ortega\Staff Reports\Auditors\SR-OB adopt res authorizing White Nelson Diehl Evans for auditing services.docx RESOLUTION NO. OB- 045 A RESOLUTION OF THE OVERSIGHT BOARD OF DIRECTORS FOR THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY PROVIDING AUTHORIZATION TO PROCEED WITH AUDITING SERVICES FOR THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY FOR THE FISCAL YEAR ENDING JUNE 30, 2013 RECITALS: A. Pursuant to Health and Safety Code Section 34179(3), all actions taken by the Oversight Board for the Successor Agency to the Palm Desert Redevelopment Agency (the "Oversight Board") shall be adopted by resolution. B. There has been presented to this Oversight Board for approval to proceed with auditing services for the Successor Agency to the Palm Desert Redevelopment Agency for the fiscal year ending June 30, 2013. C. Contract No. C27540 with White Nelson Diehl Evans LLP was previously approved by the Successor Agency to the Palm Desert Redevelopment Agency Board at its June 13, 2013 meeting. The audit fee and procedures were incorporated and made a part of that report. D. Authorization to proceed will allow the City Manager to approve work to be performed up to an amount of $12,026 for the Successor Agency to the Palm Desert Redevelopment Agency audit to be included in the City of Palm Desert's Comprehensive Annual Financial Report. NOW, THEREFORE, THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. The Oversight Board hereby provides authorization to proceed with an audit of the Successor Agency to the Palm Desert Redevelopment Agency for the period ending June 30, 2013 to be included in the City of Palm Desert's Comprehensive Annual Financial Report. Section 3. The staff of the Successor Agency is hereby directed to provide the State Department of Finance ("DOF") written notice and information regarding the action taken by the Oversight Board in Section 2 of this Resolution. Such notice and information shall be provided by electronic means and in a manner of DOF's choosing. RES. NO. OB - 045 Section 4. The officers of the Oversight Board and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution. PASSED, APPROVED AND ADOPTED this 24th day of June, 2013 by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: ROBERT A. SPIEGEL, CHAIR RACHELLE D. KLASSEN, SECRETARY OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY WHITE NELSON DIEHL EVANS LLP Certifictl Public r.crOuntants SL Consultants April 19, 2013 Mr. Paul Gibson Director of Finance City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Mr. Gibson: Our engagement letter dated April 23, 2012 provides for an audit fee of $22,026 to audit the Redevelopment Agency/Successor Agency to the Palm Desert Redevelopment Agency (the Successor Agency) for the year ending June 30, 2013. The audit fee of $22,026 is separated into three components: (a) Palm Desert Housing Authority (b) Palm Desert Housing Authority 2013 $ 4,000 6,000 (c) Audit of Successor Agency's transactions for inclusion in the City's CAFR 12,026 $ 22.026 (a) Audit of the Palm Desert Housing Authority accounting records located in Lodi, California. (b) Compliance testing for 100 tenant files of the Palm Desert Housing Authority. (c) Audit of the activity of the Successor Agency's financial transactions for fiscal year 2013 for inclusion in the CAFR of the City of Palm Desert, and additional audit work for the separate audit of the Successor Agency. 1 2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893 (Vices located in Orange and San Diego Counties Mr. Paul Gibson, Director of Finance City of Palm Desert April 19, 2013 Page 2 Our procedures for the Successor Agency audit will include: • Audit the balances reported for cash, investments, receivables, payables, capital assets and long term liabilities as of end of the year. • Review the activity reported on ROPS. • Review the activities of the Successor Agency to ensure compliance with AB 26 and other relevant legislation enacted. • Preparation of a separate financial statement for the Successor Agency. If you have any questions, please let us know. Very truly yours, WHITE NELSON DIEHL EVANS LLP A.}—s: 0 Pc--ct.-- Nitin P. Patel, CPA Engagement Partner