HomeMy WebLinkAboutAgenda Packet - October 1, 1986 - CC A
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. 213 East Foothill Boulevard • P 0 Box WWW • Azusa, California 91702-1395 • (818) 334 5125 •
FINANCE DEPARTMENT
AGENDA ITEM
TO: HONORABLE MAYOR AND MEMBERS
OF THE CITY COUNCIL ‘;g
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FROM: GEOFF CRAIG, DIRECTOR OF FINANC; *
DATE: OCTOBER 1, 1986
SUBJECT: AUDIT OF JONES INTERCABL, , INC.
Background
At the regularly scheduled meeting of the City Council on September 15, 1986 Council
amended the Azusa Municipal Code to provide the City the right to audit all firms
paying any specialized fees or taxes to the City.
Findings
An information item was submitted to Council at its meeting of September 2, 1986
advising Council of the failure of Jones Intercable, Inc. to comply with all terms of
their franchise agreement, specifically the filing of a financial statement prepared
by a Certified Public Accountant.
The City has since received a financial statement from Jones Intercable, Inc. The
statement was prepared by a Certified Public Accountant in Colorado. There is a
large discrepancy between the financial statement and the amount declared on their
report forms to the City, which are currently submitted on a quarterly basis.
Fox & Company, which was subsequently purchased by Grant Thornton International,
reviewed the records of Jones Intercable, Inc. in 1983, but due to the sale of Cable
Services of Azusa, Inc. to Jones Intercable, Inc. et al effective November 30, 1982
their procedures were limited. Records of Jones Intercable are being maintained
in Colorado. Of the documents verifying the franchise fee, which were given to the
auditors, none were certified.
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Grant Thornton International (Fox & Company) would normally be called upon by the
City to perform this audit, but they are completely occupied with their audit of the
City's books for the past fiscal year. For this reason, staff would recommend that
Council authorize Conrad & Associates to carry out the audit at a cost of approximately
$5,000. Conrad is a well-known firm performing such audits and staff anticipates
that the results will be excellent.
Recommendation
It is recommended that Council authorize the firm of Conrad & Associates to perform
a three-year audit of Jones Intercable Inc. for the purpose of determining whether
adequate franchise fees have been paid to the City.
GJC:SA:pap