RPVCCA_CC_SR_2015_04_07_K_2014_Employee_Comp_&_Benefits_AnalysisCITY OF LiRANCHO PALOS VERDES
MEMORANDUM
TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS
FROM: KATHRYN DOWNS, ACTING FINANCE DIRECTOR
DATE: APRIL 7, 2015
SUBJECT: 2014 EMPLOYEE COMPENSATION AND BENEFITS
ANALYSIS — AGREED-UPON PROCEDURES REPORT
(Supports 2014 City Council Goal of Government
Efficiency, Accountability, Fiscal Control,
Transparency and Oversight)
REVIEWED: DOUG WILLMORE, CITY MANAGER (/AA---'
RECOMMENDATION
Receive and file the Independent Accountants' Report on Agreed -Upon Procedures
Performed with Respect to City Employee Compensation, for the calendar year ended
December 31, 2014 (Attachment A).
BACKGROUND AND DISCUSSION
On March 3, 2014, the City Council authorized the City's independent financial statement
auditor, Vavrinek, Trine, Day & Co., LLP (VTD), to complete Agreed -Upon Procedures
(AUP) for the calendar year 2014 Employee Compensation and Benefits Analysis
("Analysis").
VTD has completed the engagement and issued the report. Gross pay was traced from
the City's payroll system, to the W-2 filing, and to the Analysis. VTD sampled 20
employees, and traced amounts in the Analysis to supporting documentation. No
exceptions were noted.
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2014 Employee Compensation and Benefits Analysis — Agreed -Upon Procedures
Report
April 7, 2015
Page 2 of 2
Attachment
A — Independent Accountants' Report on
Respect to City Employee Compensation,
2014 (page 3 of the agenda item)
Agreed -Upon Procedures Performed with
for the calendar year ended December 31,
2
CITY OF RANCHO PALOS VERDES
Independent Accountants' Report on
Agreed -Upon Procedures Performed
with Respect to City Employee Compensation
For the Calendar year ended December 31, 2014
Attachment A
K,
U"4401,11,
Vaurinek, Trine, Day & Co., LLP
Certified Public Accountants
INDEPENDENT ACCOUNTANTS' REPORT
ON APPLYING AGREED-UPON PROCEDURES PERFORMED
WITH RESPECT TO CITY EMPLOYEE COMPENSATION
The Honorable City Council
of the City of Rancho Palos Verdes
Rancho Palos Verdes, California
We have performed the procedures enumerated below, which were agreed to by the City of Rancho Palos Verdes,
California (City) solely to assist you with respect to your evaluation of selected provisions of City employee
compensation for the calendar year ended December 31, 2014. The City's management is responsible for the
execution of the provisions related to the employment of City personnel. This agreed-upon procedures
engagement was conducted in accordance with attestation standards established by the American Institute of
Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the City.
Consequently, we make no representation regarding the sufficiency of the procedures described below, either for
the purpose for which this report has been requested, or for any other purpose.
The procedures performed and the results of those procedures were as follows:
Trace applicable information on the City employee compensation worksheet prepared by the City to
applicable Internal Revenue Service and Franchise Tax Board filings.
Result: We traced the gross pay information on the worksheet prepared by the City to the ADP Master
Control report. We obtained a reconciliation of the gross pay information on the worksheet to the W-2
filing. We traced reconciling items to the ADP Master Control report. We traced the reconciled amount
to the W-2 filing. No exceptions were noted.
2. Select a sample of twenty (20) employees from the following:
a. Five (5) management personnel — selected haphazardly
b. Five (5) part-time personnel including one (1) City Council member— selected haphazardly
c. Ten (10) full-time non -management personnel -selected haphazardly
For the selected sample, trace the following to City personnel records, contracts (if applicable), policies,
and other supporting documentation:
d. Payroll
i. Annual salary
ii. Overtime
iii. Auto allowance
iv. Bonus
v. Vacation buyout
vi. Health insurance in -lieu
8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com
FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO
e. City paid benefit costs
i. Pension benefits
ii. Insurance — including but not limited to medical, vision, and dental
iii. Medicare
iv. Retirement health savings account contribution
v. Deferred compensation
f. Benefits — Earned hours only
i. Wellness
ii. Administrative leave
iii. Sick leave
iv. Holidays
v. Vacation
vi. Compensatory time
Result: We selected a sample of 20 City employees including five management personnel, five part-time
personnel including one City Council member, and ten full-time non -management personnel. We traced
applicable provisions as listed above to supporting documentation. No exceptions were noted.
We were not engaged to, and did not conduct an audit, the objective of which would be the expression of an
opinion on the provisions of City employee compensation, related internal control, compliance with government
code, or elements, accounts or items specified above. Accordingly, we do not express such an opinion. Had we
performed additional procedures, other matters might have come to our attention that would have been reported to
you.
This report is intended solely for the information and use of the City Council and management of the City and is
not intended to be, and should not be, used by anyone other than those specified parties.
Rancho Cucamonga, California
March 23, 2015
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