Loading...
HomeMy WebLinkAbout13567 RESOLUTION NO. 13567 A RESOLUTION APPROVING AN ENGAGEMENT LETTER BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND ANTON COLLINS MITCHELL LLC, CERTIFIED PUBLIC ACCOUNTANTS, RELATING TO PROFESSIONAL AUDITING SERVICES AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Engagement Letter between the City of Pueblo, a Municipal Corporation, and Anton Collins Mitchell, LLC, Certified Public Accountants, for the rendering of professional services to the City of Pueblo dated November 28, 2016, 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 the Engagement Letter on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix the seal of the City thereto and attest the same. SECTION 3. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution which are necessary or desirable to effectuate the transactions described therein. SECTION 4. This Resolution shall become effective immediately upon passage and approval. INTRODUCED: November 28, 2016 BY: Ed Brown City Clerk’s Office Item # M-1 Background Paper for Proposed Resolution COUNCIL MEETING DATE: November 28, 2016 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Roni Kimbrel, Finance Director SUBJECT: A RESOLUTION APPROVING AN ENGAGEMENT LETTER BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND ANTON COLLINS MITCHELL LLC, CERTIFIED PUBLIC ACCOUNTANTS, RELATING TO PROFESSIONAL AUDITING SERVICES AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE SAME SUMMARY: Attached is a proposed Resolution that would authorize the City to execute an Engagement Letter with Anton Collins Mitchell, LLP to perform professional auditing services for the City of Pueblo for fiscal years 2016 – 2018. PREVIOUS COUNCIL ACTION: None BACKGROUND: The current engagement between the City and McPherson, Breyfogle, Daveline & Goodrich, PC (MBDG) ended with the auditing services for the fiscal year ended December 31, 2015. Through the Request for Proposal (RFP) process, the City has selected the CPA firm of Anton Collins Mitchell, LLC to perform the annual audit for the years 2016 - 2018. FINANCIAL IMPLICATIONS: Anton Collins Mitchell, LLC's fees, including expenses, will not exceed the following amount each audit year:  $92,500 for the year ended December 31, 2016  $94,000 for the year ended December 31, 2017  $95,500 for the year ended December 31, 2018 BOARD/COMMISSION RECOMMENDATION: Not applicable. STAKEHOLDER PROCESS: Not applicable. ALTERNATIVES: Select another of the RFP respondents. RECOMMENDATION: City staff recommends approval of this Resolution. Attachments: Engagement Letter A ACM Anton Collins Mitchell LLP Accountants&Consultants November 10, 2016 Roni Kimbrel City of Pueblo, Colorado 1 City Hall Place Pueblo, Colorado 81003 rkimbrel@pueblo.us Dear Roni Kimbrel: This agreement to provide services (the "Agreement") is intended to describe the nature and scope of our services. Objective and Scope of the Audit Anton Collins Mitchell LLP ("ACM" or "we") are pleased to confirm our understanding of the services we are to provide the City of Pueblo, Colorado (the "City" or "you") for the years ending December 31, 2016, December 31, 2017 and December 31. 2018 ("Audit Years"). We will audit the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, except for Pueblo Urban Renewal Authority, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements of the City as of and for each of the Audit Years. Accounting standards generally accepted in the United States of America provide for certain required supplementary information ("RSI"), such as management's discussion and analysis ("MD&A"), to supplement the City's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the City's RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1) Management's Discussion and Analysis. 2) GASB-required supplementary pension and OPEB information 3) Budgetary comparison schedules —general fund and major special revenue funds We have also been engaged to report on supplementary information other than RSI that accompanies the City's financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain Denver I Boulder I Northern Colorado I Laramie 2015 Clubhouse Drive,Suite 203 Greeley,Colorado 80634 November 10, 2016 City of Pueblo, Colorado Page 3 of 12 additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America and will provide an opinion on it in relation to the financial statements as a whole: 1) Combining and individual non-major fund financial statements and schedules for the non-major governmental and enterprise funds 2) Budgetary comparison schedules for other funds 3) Local Highway Finance Report 4) Schedule of expenditures of federal awards The following other information accompanying the financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and for which our auditor's report will not provide an opinion or any assurance: 1) Introductory section 2) Statistical section Responsibilities of ACM We will conduct our audit in accordance with auditing standards generally accepted in the United States of America (" GAAS"). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement, whether caused by error or fraud. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall basic financial statement presentation. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the basic financial statements, whether due to error or fraud. Our work will be based primarily upon selected tests of evidence supporting the amounts and disclosures in the basic financial statements and, therefore, will not include a detailed check of all of your City's transactions for the period. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements may not be detected exists, even though the audit is properly planned and performed in accordance with GAAS. Our audit will also be conducted in accordance with the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of Uniform Guidance, and will include tests of accounting records, a determination of major program(s) in accordance with Uniform Guidance, and other procedures we consider necessary to enable us to express such an opinion and to render the required reports. Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and agreements applicable to major programs. Our procedures will consist of the applicable procedures described in the OMB's compliance supplement for the types of compliance requirements that could have a direct and material effect on each of the City's major November 10, 2016 City of Pueblo, Colorado Page 4 of 12 programs. As required by the Single Audit Act Amendments of 1996 and Uniform Guidance, our audit will include tests of transactions related to major federal award programs for compliance with applicable laws and regulations and the provisions of contracts and agreements. The purpose of these procedures will be to express an opinion on the City's compliance with requirements applicable to major programs in our report on compliance issued pursuant to Uniform Guidance. Also, an audit is not designed to detect errors or fraud or violations of laws or governmental regulations that are immaterial to the basic financial statements or to major programs. However, we will inform you of any material errors or fraud that come to our attention. We will also inform you of possible illegal acts that come to our attention unless they are clearly inconsequential. We will also include such matters in the reports required for a Single Audit. In addition, during the course of our audit, basic financial statement misstatements relating to accounts or disclosures may be identified, either through our audit procedures or through communication by your employees to us, and we will bring these misstatements to your attention as proposed adjustments. At the conclusion of our engagement we will communicate to those charged with governance (as defined below) all uncorrected misstatements. The term "those charged with governance" is defined as the person(s) with responsibility for overseeing the strategic direction of the City and obligations related to the accountability of the City, including overseeing the financial reporting process. For your City, we agree that the City Council meets that definition. In making our risk assessments, we consider internal control relevant to the City's preparation and fair presentation of the basic financial statements in order to design audit procedures that are appropriate in the circumstances and to evaluate compliance with requirements applicable to major programs, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses in internal control. However, we will communicate to you and the City Council in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements we identify during our audit. We are also responsible for communicating with those charged with governance what our responsibilities are under GAAS, an overview of the planned scope and timing of the audit, and significant findings from the audit. Responsibilities of Management and Identification of the Applicable Financial Reporting Framework Our audit will be conducted on the basis that you and the City Council acknowledge and understand that you and the City Council have responsibility (1) for the preparation and fair presentation of the basic financial statements in accordance with accounting principles generally accepted in the United States of America; (2) for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of basic financial statements that November 10, 2016 City of Pueblo, Colorado Page 5 of 12 are free from material misstatement, whether due to error or fraud; (3) for identifying and ensuring that the City complies with the laws and regulations applicable to its activities; and (4) to provide us with access to all information of which you are aware that is relevant to the preparation and fair presentation of the basic financial statements, such as records, documentation and other matters. You acknowledge and understand your responsibility for the preparation of all supplementary information in accordance with the applicable criteria. You also agree to include our report on the supplementary information in any document that contains the supplementary information and that indicates that we have reported on such supplementary information. You also agree to present the supplementary information with the audited basic financial statements, or, if the supplementary information will not be presented with the audited basic financial statements, to make the audited basic financial statements readily available to the intended users of the supplementary information no later than the date of issuance of the supplementary information and our report thereon. Management is responsible for adjusting the basic financial statements to correct material misstatements relating to accounts or disclosures, after evaluating their propriety based on a review of both the applicable authoritative literature and the underlying supporting evidence from the City's files; or otherwise concluding and confirming in a representation letter (as further described below) provided to us at the conclusion of our audit that the effects of any uncorrected misstatements are, both individually and in the aggregate, immaterial to the basic financial statements taken as a whole. As required by GAAS, we will request certain written representations from management at the close of our audit to confirm oral representations given to us and to indicate and document the continuing appropriateness of such representations and reduce the possibility of misunderstanding concerning matters that are the subject of the representations. Expected Form and Content of the Auditor's Report At the conclusion of our audit, we will submit to you a report containing our opinion as to whether the basic financial statements, taken as a whole, are fairly presented based on accounting principles generally accepted in the United States of America. If, during the course of our work, it appears for any reason that we will not be in a position to render an unmodified opinion on the basic financial statements, we will discuss this with you. It is possible, that because of unexpected circumstances, we may determine that we cannot render a report or otherwise complete the engagement. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or decline to issue a report as a result of the engagement. If, in our professional judgment, the circumstances require, we may resign from the engagement prior to completion. Client Acceptance Matters ACM is accepting the City as a client in reliance on information obtained during the course of our client acceptance procedures. Randy Watkins has been assigned the role of engagement partner and is responsible for directing the engagement and issuing the appropriate report on the City's basic financial statements. November 10, 2016 City of Pueblo, Colorado Page 6 of 12 Ownership of Working Papers The working papers prepared in conjunction with our audit are the property of ACM, constitute confidential information, and will be retained by us in accordance with ACM's policies and procedures for a period of seven years. Engagement Administration At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings. It is management's responsibility to submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, auditors' reports, and corrective action plan, if applicable), along with the Data Collection Form to the federal audit clearinghouse. We will coordinate with management the electronic submission and certification. If applicable, we will provide copies of our report for management to include with the reporting package management will submit to pass-through entities. The Data Collection Form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors' reports or nine months after the end of the audit period. Reproduction of Audit Report If the City plans any reproduction or publication of our report, or any portion of it, a copy of the entire document in its final form, should be submitted to us in sufficient time for our review and written approval before printing. You also agree to provide us with a copy of the final reproduced material for our written approval before it is distributed. If, in our professional judgment, the circumstances require, we may withhold our written approval. Posting of Audit Report and Financial Statements on Your Web Site You agree that, if you plan to post an electronic version of the financial statements and audit report on your Web site, you will ensure that there are no differences in content between the electronic version of the financial statements and audit report on your Web site and the signed version of the financial statements and audit report provided to management by ACM. Availability of Records and Personnel You agree that all records, documentation, and information we request in connection with our audit will be made available to us (including those pertaining to related parties), that all material information will be disclosed to us, and that we will have full cooperation of, and unrestricted access to, your personnel during the course of the engagement. You also agree to ensure that any third party valuation reports that you provide to us to support amounts or disclosures in the financial statements a) indicate the purpose for which they were November 10, 2016 City of Pueblo, Colorado Page 7 of 12 intended, which is consistent with your actual use of such reports; and b) do not contain any restrictive language that would preclude us from using such reports as audit evidence. Assistance by Your Personnel and Internet Access We also ask that your personnel prepare various schedules and analyses for our staff. However, except as otherwise noted by us, no personal information other than names related to City employees and/or customers should be provided to us. In addition, we ask that you provide high- speed Internet access to our engagement team, if practicable, while working on the City's premises. This assistance will serve to facilitate the progress of our work and minimize costs to you. Other Services We are always available to meet with you and/or other executives at various times throughout the year to discuss current business, operational, accounting, and auditing matters affecting your City. Whenever you feel such meetings are desirable, please let us know. We are also prepared to provide services to assist you in any of these areas. As part of our engagement, we will assist with the preparation of the City's financial statements schedule of expenditures of federal awards and the related notes of the City in conformity with U.S. generally accepted accounting principles and the Uniform Guidance. We will also assist in the preparation of GASB 34 conversion entries and assist in preparing accounting entries to convert certain funds to GAAP basis reporting. Independence Professional and certain regulatory standards require us to be independent, in both fact and appearance, with respect to your Company in the performance of our services. Any discussions that you have with personnel of ACM regarding employment could pose a threat to our independence. Therefore, we request that you inform us prior to any such discussions so that we can implement appropriate safeguards to maintain our independence. In order for us to remain independent, professional standards require us to maintain certain respective roles and relationships with you with respect to the non-attest services described above. Prior to performing such services in conjunction with our audit, management must acknowledge its acceptance of certain responsibilities. We will not perform management functions or make management decisions on behalf of your Company. However, we will provide advice and recommendations to assist management of the Company in performing its functions and fulfilling its responsibilities. The Company agrees to perform the following functions in connection with our performance of the non-attest services: ® Make all management decisions and perform all management functions with respect to the non-attest services provided by us. November 10, 2016 City of Pueblo, Colorado Page 8 of 12 ® Assign a Company representative with the suitable skill, knowledge and/or experience to oversee the non-attest services and evaluate the adequacy and results of the services. O Accept responsibility for the results of the non-attest services. The services are limited to those outlined above. We, in our professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as making management decisions or performing management functions. The Company must make all decisions with regard to our recommendations. By signing this Agreement, you acknowledge your acceptance of these responsibilities. Dispute Resolution Procedure If any dispute, controversy, or claim arises out of, relates to, or results from the performance or breach of this Agreement, excluding claims for non-monetary or equitable relief (collectively, the "Dispute"), either party may, upon written notice to the other party, request non-binding mediation. A recipient party of such notice may waive its option to resolve such Dispute by non-binding mediation by providing written notice to the party requesting mediation and then such parties hereto shall resolve such Dispute by binding arbitration as described below. Such mediation shall be assisted by a neutral mediator acceptable to both parties and shall require the commercially reasonable efforts of the parties to discuss with each other in good faith their respective positions and different interests to finally resolve such Dispute. If the parties are unable to agree on a mediator within twenty (20) days from delivery of the written notice, either party may invoke the mediation service of the American Arbitration Association (the "AA A"). Each party may disclose any facts to the other party or to the mediator that it, in good faith, considers reasonably necessary to resolve the Dispute. All communications made between the parties or to the arbitrator shall be subject to Rule 408 of the Colorado Rules of Civil Procedure relating to Compromise and Offers of Compromise and prohibited and permissible use of thereof. Except as agreed to in writing by both parties, the mediator shall keep confidential all information disclosed during mediation. The mediator shall not act as a witness for either party in any subsequent proceeding between the parties. Unless waived, such mediation shall conclude after the parties have engaged in good faith settlement negotiations, but nonetheless are unable to resolve the Dispute through the mediation process. The attorneys' fees and costs incurred by each party in such mediation shall be borne solely by such party, except that the fees and expenses of the mediator, if any, shall be borne equally by the parties. Any Dispute not resolved first by mediation between the parties (or if the mediation process is waived as provided herein) shall be decided by binding arbitration. The arbitration proceeding shall take place in Pueblo, Colorado. The arbitration shall be governed by the provisions of the laws of the State of Colorado shall be applied without reference to conflicts of law rules. In any arbitration instituted hereunder, the proceedings shall proceed in accordance with the then current Arbitration Rules for Professional Accounting and Related Disputes of the AAA, except that the Arbitration Panel (as defined below) shall permit discovery that is consistent with the scope of discovery typically permitted by the Colorado Rules of Civil Procedure and/or is otherwise customary in light November 10, 2016 City of Pueblo, Colorado Page 9 of 12 of the complexity of the Dispute and the amount in controversy. Any Dispute regarding discovery, or the relevance or scope thereof, shall be determined by the Arbitration Panel (as defined below). The arbitration shall be conducted before a panel of three (3) persons, one selected by each party, and the third selected by the two party-selected arbitrators (the "Arbitration Panel"). The party- selected arbitrators shall be treated as neutrals. The Arbitration Panel shall have no authority to award non-monetary or equitable relief, but nothing herein shall be construed as a prohibition against a party from pursuing non-monetary or equitable relief in a state or federal court. The parties also waive the right to punitive damages and the arbitrators shall have no authority to award such damages or any other damages that are not strictly compensatory in nature. In rendering their award, the Arbitration Panel shall issue in writing findings of fact and conclusions of law. The Arbitration Panel shall not have authority to grant an award that is not supported by competent evidence or that is based on an error of law. and such absence of competent evidence or such error of law may be reviewed on appeal to vacate an award based on the standard of review otherwise applicable in the Colorado Appellate Court, and without regard to any heightened standard of review otherwise applicable to an arbitration decision rendered by the AAA. The confidentiality provisions applicable to mediation shall also apply to arbitration; provided, however, it is specifically recognized that an award is not subject to the confidentiality provision. The award issued by the Arbitration Panel may be confirmed in a judgment by any federal or state court of competent jurisdiction. No payment of any award or posting of any bond of any kind whatsoever is required to be made or posted until such Dispute is finally determined. In no event shall a demand for arbitration be made after the date on which the initiation of the legal or equitable proceeding on the same Dispute would be barred by the applicable statute of limitations or repose. For the purposes of applying the statute of limitations or repose, receipt of a written demand for arbitration by the AAA shall be deemed the initiation of the legal or equitable proceeding based on such Dispute. A party may file a demand for arbitration during mediation to avoid the application of the foregoing bar, and if filed in such circumstances, the parties agree to continue the arbitration pending mediation. Fees Our fees will be billed at the hourly rates set forth in our proposal filed with respect to City RFP Project No. 16-038. We agree, however, that our gross fee including costs and expenses, will not exceed the following amount each Audit Year $92,500.00 for the year ended December 31, 2016 $94,000.00 for the year ended in December 31, 2017 $95,500 for the year ended in December 31, 2018 The fees are based on anticipated cooperation from City personnel and the assumption that unexpected circumstances will not be encountered during the audit for each year. If significant additional time is necessary, we will discuss it with you and management and arrive at a new fee estimate before we incur the additional costs. Government Auditing Standards require that we provide you with a copy of our most recent November 10, 2016 City of Pueblo, Colorado Page 10 of 12 external peer review report and any letter of comment and any subsequent peer review reports and letters of comment received during the period of the contract. Our 2016 peer review report accompanies this letter. Either we or the City may terminate our engagement and this Letter at any time and for any reason, with respect to the audit of any or all fiscal years subsequent to fiscal year 2016 by giving to the other party written notice of such termination on or before September 30 of such fiscal year or years. We acknowledge and agree that (a) all financial obligations of the City under this engagement letter for audit of fiscal years subsequent to the audit of fiscal year 2016 are subject to funds being appropriated and budgeted for such purposes; (b) in the event City does not budget and appropriate funds specifically for such purpose, our sole and only remedy is to terminate this agreement; (c) we, our officers and employees are independent contractors and not employees of the City and we are responsible for all their withholdings, FICA, employment and other taxes and workers' compensation coverage and benefits, and will hold the City harmless for all claims therefore; and (d) the State-mandated or Related Contract Clauses attached hereto as Exhibit A are incorporated herein as if set out herein in full and for the purpose thereof, we are the "Contractor". Payment Responsibilities Bills generally are rendered monthly and presented to you for services performed in the prior month and are due and payable within 30 days of the date of the billing statement. Assignment ACM shall have the right to assign its rights to perform a portion of the services described above to any of its independent Alliance members, affiliates (including, where applicable, member firms of the international BDO network), agents, or contractors (a "Permitted Assignee") with the City's prior consent. If such assignment is made, the City agrees that, unless it enters into an engagement letter directly with the Permitted Assignee, all of the applicable terms and conditions of this agreement shall apply to the Permitted Assignee. We agree that we shall not permit the Permitted Assignee to perform any work until it agrees to be bound by the applicable terms and conditions of this agreement. We further agree that we will remain primarily responsible for the services described above, unless we and the City agree otherwise, and we will properly supervise the work of the Permitted Assignee to ensure that all such services are performed in accordance with applicable professional standards. From time to time, and depending on the circumstances, Permitted Assignees located in other countries may participate in the services we provide to the City. In some cases, we may transfer information to or from the United States or another country. Although applicable privacy laws may vary depending on the jurisdiction, and may provide less or different protection than those of the City's home country, we require that all Permitted Assignees enter into contractual agreements to maintain the confidentiality of the City's confidential information and observe our policies concerning any confidential client information that we provide to them. Miscellaneous November 10, 2016 City of Pueblo, Colorado Page 11 of 12 This Agreement is only intended to cover the services specified herein, although we look forward to many more years of pleasant association with the City. This engagement is a separate and discrete event and any future services will be covered by a separate agreement to provide services. Many banks have engaged a third party to electronically process cash or debt audit confirmation requests, and a few of those banks have mandated the use of this service. To the extent applicable, the City hereby authorizes ACM to participate in this electronic confirmation process through the third party's Web site (e.g., by entering the City's bank account information to initiate the process and then accessing the bank's confirmation response). Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable laws, regulations, or published interpretations, but if any provision of this Agreement shall be deemed prohibited, invalid, or otherwise unenforceable for any reason under such applicable laws, regulations, or published interpretations, such provisions shall be ineffective only to the extent of such prohibition, invalidity, or unenforceability and such revised provision shall be made a part of this Agreement as if it was specifically set forth herein. Furthermore, the provisions of the foregoing sentence shall not invalidate the remainder of such provision or the other provisions of this Agreement. This Agreement may be transmitted in electronic format and shall not be denied legal effect solely because it was formed or transmitted, in whole or in part, by electronic record; however, this Agreement must then remain capable of being retained and accurately reproduced, from time to time, by electronic record by the parties to this Agreement and all other persons or entities required by law. An electronically transmitted signature to this Agreement will be deemed an acceptable original for purposes of consummating this Agreement and binding the party providing such electronic signature. Written Advice While we are, of course, available to provide you with (accounting, tax and business planning) services, it is our policy to put all advice upon which a client might rely into a written memorandum prior to you relying on such advice. We believe this is necessary to avoid confusion and to make clear the specific nature of our advice. You should not rely on any advice that has not been put into writing for you. / /� November 10, 2016 City of Pueblo, Colorado Page 12 of 12 We appreciate the opportunity to be of service to the City of Pueblo, Colorado and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, Anton Collins Mitchell LLP By: 11"11111��. � R. .dy W.. kins, Audit Partner Acce. -. l - .:F 2016 by PU LO, a Municipal Corporation President of City Council ATTEST . .�11 City erk [SEAL]