HomeMy WebLinkAboutTime Warner Cable Franchise Agreed Upon-Procedures Review for YE 12/31/2003City of Palm Desert
STAFF REPORT
Council Meeting of June 9, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PAUL S. GIBSON, DIRECTOR OF FINANCE/CITY TREASURER
SUBJECT: Time Warner Cable Franchise Agreed Upon -Procedures Review for
the Year Ended December 31, 2003
DATE: June 9, 2005
Attachments: Independent Accountants' Report (Confidential), Internal Memorandum
RECOMMENDATION:
By Minute Motion:
1) Receive and file the Agreed Upon -Procedure Review for the Time
Warner Cable for year ended December 31, 2003 (Confidential); and
2) Waive the late penalties.
BACKGROUND:
In July 2004, Lance Soli & Lunghard, LLP was contracted to perform an agreed upon -
procedure review for the franchise fee agreement between the City and Time Warner
Cable for the year ending December 31, 2003. The agreed upon -procedure was in
accordance with verification standards established by the American Institute of Certified
Public Accountants. During this process, staff has had numerous meetings with the
auditors regarding the findings and supporting documentation Time Warner Cable
needed to provide. Because of these delays, the City received the report in February
2005.
In conducting their review, the auditors preformed 10 procedures that were agreed upon
by the Finance and Community Service Departments. Attached are the auditors'
procedures and findings.
With regard to Finding 3.4, the City has contacted Time Warner Cable staff for
supporting documentation to determine if the City is owed any franchise fee. When
supporting documentation is received, the City will take the appropriate action on the
information obtained.
Staff Report
Time Warner Cable
June 9, 2005
Page 2of2
In reference to Procedure and Finding Number 7, the Community Service Department
staff does not support penalizing Time Warner with the two late fees described in the
report. Attached please find an internal memorandum from the Community Service
Department to the City Manager indicating their reason for the waiver and the City
Manager's concurrence.
Schedule A of the Independent Accountants' Report show that Time Warner had an
underpayment of franchise tax of $586.68. City will be invoicing Time Warner for this
finding amount.
Staff recommends that the City Council receive and file the Agreed Upon -Procedure
Review for Time Warner Cable for the year ended December 31, 2003, and waive the
late penalty fee.
Respectfully submitted,
PAUL S. GIBSON,
DIRECTOR OF FINANCE/TREASURER
SHEILA LLIG N,
ACM COMMUNITY S CES
ROBERT KOHN,
DIRECTOR OF SPECIAL PROGRAMS
Reviewed and conur,
CARLOS L. ORTEGA,
CITY MANAGER