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<br /> <br />From: CUTSOGEORGE Sue L <br />Sent: Thursday, May 26, 2011 11:26 AM <br />To: TINTLE Robert D <br /> <br />Subject: FW: Questions around the outside auditor work re compliance with the bond resolution <br /> <br />Robert – I was looking up on TOTs the account code for bond issuance costs, as we are in the process of <br />renewing our line of credit for the street bonds. I happened to notice that $5000 was charged to bond <br />issuance costs for the auditor’s work. As you will see from the string of notes below, our legal counsel <br />advised us (and we subsequently told council) that we cannot use street bond proceeds to pay for the <br /> <br />auditor costs. Can you pls take a look and post that charge elsewhere in PW’s budget. <br /> <br />Thanks. Sue <br />From: Lauren SOMMERS [mailto:Lauren.SOMMERS@harrang.com] <br />Sent: Tuesday, June 10, 2008 9:38 AM <br />To: CARLSON Becky A; CUTSOGEORGE Sue L <br />Cc: CRONIN Finn J; LIDZ Jerome (Harrang) <br /> <br />Subject: Re: Questions around the outside auditor work re compliancewith the bond resolution <br /> <br />Becky and Sue, <br /> <br /> <br />As the resolution is currently written, use of the bond proceeds is limited to "costs related to preservation <br />of streets and off-street bike and pedestrian paths, and payment of bond issuance costs" so the proceeds <br /> <br />could not be used to pay for the auditor. <br /> <br /> <br />Lauren <br /> <br /> <br />>>> "CARLSON Becky A" <becky.a.carlson@ci.eugene.or.us> 6/9/2008 8:54 PM >>> <br />Sue, before I forget, I thought I'd jot down my thoughts to George Poling's questions from tonight, which I <br /> <br />heard as: <br /> <br /> <br /> From where would the fees for the outside auditor be paid -- out of bond proceeds? <br /> <br /> <br /> How much would this cost? <br />This is in reference to a resolution provision providing for an outside auditor who would "ascertain and <br />report on whether the bond proceeds were used for the authorized purposes and in compliance with the <br /> <br />restrictions set forth above." <br />My response (to which Lauren and Finn can add or comment): <br />The fees paid for an outside auditor to review and report on the use of the bond proceeds would not be <br />paid from the proceeds themselves, but instead would be paid from the Public Works Department <br />operating budget. It is estimated that this specified procedures contract would cost less than $2,000 each <br /> <br />time a report was requested. <br />Finn, you might want to bounce this fee estimate off of our current audit engagement manager, but my <br />thought was that we would have everything laid out, documented and cross-referenced for these folks so <br />that they could go through and, literally in a couple of hours, verify that the project expenditures were <br />made in compliance with authorized purposes and restrictions of the bond resolution. We'd also write the <br />proposed specified procedures engagement language and checklist for them, if they wanted. What we <br /> <br />don't want to do is quote an audit fee that costs more than our current "pothole program". <br /> <br />~becky <br />2 <br />