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HomeMy WebLinkAbout8278RESOLUTION NO. R27R A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND MCPHERSON, BREYFOGLE, LICHLYTER & DAVELINE, P.C., CERTIFIED PUBLIC ACCOUNTS BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO that: SECTION-1 -. The Agreement between the City of Pueblo, a Municipal Corporation, and McPherson, Breyfogle, Lichlyter & Daveline, P.C., Certified Public Accountants for the rendering of professional accounting services to the City of Pueblo, dated November 24, 1997, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2: The President of the City Council is hereby authorized to execute same for and on behalf of the City and the City Clerk is authorized and directed to attest same and affix the Seal of the City thereto. INTRODUCED November 24 1997 BY: Marl es JonPS Councilperson APPROVED: u' Presiden f th,6 Council ATTEST: two] M AGREEMENT THIS AGREEMENT, made and entered into this 24th day of November, 1997, between the City of Pueblo, a Municipal Corporation, hereinafter called "City ", and McPherson, Breyfogle, Lichlyter & Daveline, P.C., hereinafter called "Accountants ", WITNESSETH: WHEREAS, the City desires the services of Accountants for the rendering of certain professional accounting and auditing services, who are knowledgeable in governmental accounting, auditing, Section 20 of Article X of the Colorado Constitution ( "TABOR ") federal grants and single audit concept and procedures as detailed in OMB's Circular A -133; and WHEREAS, the Accountants represent they are knowledgeable in such areas and qualified to render such accounting and auditing services. NOW, THEREFORE, the parties hereto agree as follows: 1. The Accountants will make an audit of the balance sheets, revenues, expenditures and budget comparison statements and related income and surplus statements of the funds of the City, including trust and agency, special revenue, debt service funds, and all other funds of the City and such other records as Accountants deem necessary for the fiscal years ending December 31, 1997, December 31, 1998, December 31, 1999, and December 31, 2000. 2. Interim work on the audit for each fiscal year shall commence as soon as practical and all field work required under this Agreement shall be completed by March 31 of the next fiscal year. Reports as set forth herein shall be completed and delivered by April 30 of the next fiscal year unless an extension of time has been approved by the City. 3. The audit will be made in accordance with generally accepted auditing standards and government auditing standards and practices and in accordance with the requirements of the Single Audit Act Amendments of 1996 and implementing regulations and, accordingly, will include such tests of the accounting records, internal control systems and such other auditing procedures as Accountants shall deem necessary and appropriate for the purpose of expressing an opinion on the statements presented in the required report. The Accountants do not, however, guarantee that such test examinations will disclose shortages or other irregularities, should any exist. 4. The Accountants shall render the following reports: a. An audit report containing financial statements for all funds in a form agreed to between Accountants and City, including Accountants' opinion thereon. Such audit report and statements should conform insofar as possible to current formats promulgated by the Governmental Accounting Standards Board, Government Finance Officers' Association, and the requirements of the Single Audit Act Amendments of 1996 and implementing regulations, including but not limited to OMB Circular A -133. Significant deficiencies in internal control or unusual financial transactions shall be reported as soon as possible after such matters have been observed by Accountants. b. A comprehensive letter of comments or suggestions to the City after review with appropriate officials of the City, which shall include, but not be limited to, the following matters: (1) A statement that in the tests made there was (or was not) noted any evidence of fraud or dishonesty. (2) Actions taken by the City on recommendations and findings included in prior audit reports. (3) The City's compliance with applicable laws and regulations, including whether City expended federal funds in accordance with applicable law, insofar as this can be determined without legal opinion. (4) Any serious inadequacies in financial controls and procedures, together with Accountants' recommendations. (5) Any inadequate record or records which do not comply with statutory or other requirements. (6) Any duplication and inefficiencies in account recordkeeping procedures and internal control practices. (7) Such other matters as shall be mutually agreed to by Accountants and the City. 5. The Accountants agree to: a. Type and reproduce the audit report with financial statements, statistical data and the suggestions letter and deliver twenty -five (25) copies thereof to the Director of Finance upon completion of the audit report. b. Type and reproduce a financial report complying with requirements of Single Audit Act Amendments of 1996 and implementing regulations and forward 18 copies thereof to the agencies designated by the Director of Finance. C. Keep documents and other records of the City being audited in an orderly manner for a period of five years, in the event reference must be made by City personnel while the documents are under control of Accountants. d. Review adjusting journal entries and comments with appropriate City -2- personnel before completion of field work. e. The Accountants shall also be available for consultation up to ten hours per month each fiscal year at no additional charge to the City. 6. Procedures for billings and payments shall be as follows: a. The Accountants shall submit all invoices for review directly to the Director of Finance of the City for approval and payment. Invoices will specify the number of hours spent by Accountants to the date of billing and the total amount of dollar charges based upon agreed rates per hour as set forth herein. Billing for reasonable out -of- pocket expenses (other than those included in the hourly billing rates) actually incurred by Accountants, if any, will be separately billed on invoices submitted. b. The Accountants may render interim bills to the City until completion of the engagement. The interim bills will be promptly paid by the City. C. Upon completion of the engagement, Accountants will itemize their charges showing total hours, dollar rate and dollar charges, out -of- pocket expenses and render a final billing accordingly. Compensation for Accountants shall be computed at a per hour rate as follows: TITLE RATE PER HOUR Principal - $105.00 Supervisor - $80.00 Senior - $60.00 Junior - $40.00 Clerical - $30.00 The above rates include Accountants' overhead costs and profit, general administrative costs, telephone, computer time, and other normal overhead costs and office expenses. Accountants agree that the maximum fee, including all labor and out -of- pocket expenses, shall not exceed $ 78, 100. 00 for each fiscal year subject to the provisions of paragraph 7 hereof. d. Subject to the limitations set forth above, hourly rate billing shall be paid only for hours reasonably and necessarily required for Accountants' performance under this Agreement with reasonable and efficient assignment of Accountant's personnel. 7. Should Accountants encounter a situation during the course of performing services under this Agreement that could not be anticipated at the time of this Agreement, and should such situation, in their opinion, require them to make a substantially more detailed audit than they had originally anticipated in order to satisfy themselves as to the reasonableness of the financial statements and, therefore, increase the cost of performing services under this Agreement over and -3- above the amount stated in paragraph 6(c) above, Accountants, prior to commencing such additional work, agree to submit to the City in writing an explanation of the problem encountered, recommendations as to procedures to be followed to complete services under this Agreement, and the estimated additional cost computed at the hourly rate stated in the preceding paragraph. 8. Any supplemental audits and reports that may be required for or in connection with compliance audits on federal grants and other special activity fund audits and reports, and that required by the Single Audit Act Amendments of 1996, will be billed at the hourly rates set forth in paragraph 6.c. to the particular funds or to the City if required. 9. Any additional reports not included within the purview of the other provisions of this Agreement required with respect to City's compliance with Tabor and prepared by Accountants at the specific request of the Director of Finance shall be billed at the hourly rate set forth in paragraph 6.c. Separate time records shall be maintained for such services. 10. This Agreement shall be effective for the audits of the City financial statements for fiscal years ending December 31, 1997, December 31, 1998, December 31, 1999, and December 31, 2000, except that the rates per hour and the maximum fee for the 1998, 1999, 2000 audits may be increased as such rates and fees relate to overall increases in Accountants' normal and customary rate schedule but in any event not to exceed three percent (3 %) over the rates and fees charged for the audit of the prior fiscal year. Accountants will inform the City, in advance on or before May 1 of the fiscal year to be audited, and prior to commencing audit work for that fiscal year, of any such rate increase, additional audit time, and state a maximum fee. 11. Either party may terminate this Agreement, at any time and for any reason, with respect to the audit of any or all fiscal years subsequent to fiscal year 1997 by giving to the other party written notice of such termination on or before September 30 of such fiscal year or years. 12. All financial obligations of the City under this Agreement for fiscal years subsequent to the current fiscal year are subject to funds being budgeted and appropriated specifically for such purpose. In the event City does not budget and appropriate funds specifically for such purpose, Accountants' sole and only remedy is to terminate this Agreement. 13. The Accountants, its officers, agents and employees, shall at all times be deemed independent contractors and not employees of the City, and Accountants shall be responsible for all their employees' withholding taxes, social security, unemployment, workmen's compensation, or other taxes and shall hold the City harmless for all claims for the same. ATTEST: City Cl CITY OF PUEBLO, A ICIPAL CORPORA ION By President of City C l ouncil n APPROVED AS TO FORM: City Attorney ACCOUNTANTS: McPHERSON, BREYFOGLE, LICHL,YTER & DAVELINE, P.C. By 5 µ -5-