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HomeMy WebLinkAbout6304f RESOLUTION N0. 6304 A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND BROWN, CLARK AND ASSOCIATES, CERTIFIED PUBLIC ACCOUNTANTS BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO that: SECTION 1: ?, The Agreement between the City of P, lo, a Municipal Corporation, and Brown, Clark and Associates, Certified Public Accountants, for the rendering of professional accounting services to the City of Pueblo, dated December 19, 1988, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. CFf TTnKi 9 The President of the City Council is hereby authorized to execute same for andon behalf of the City and the City Clerk is authorized and directed to attest same and affix the Seal of - the City thereto. INTRODUCED December 12 , 1988 BY $X4UEL CORSENTINO City Councilman APPROVED. 1 Pr i ent of the Council ATTEST: r City Clerk — * d-- AGREEMENT This agreement made and entered into this da y of 12 F ealn3Eg_ 1988, between the City of Pueblo, a Municpal Corporation, hereinafter called the City, and Brown, Clark & Associates, hereinafter called the Accountants, WITNESSETH: WHEREAS, the City desires the services of the Accountants for the rendering of audit services, who are knowledgeable of governmental accounting, governmental auditing and financial and compliance audits as contained in Standards for Audit of Governmental Organizations Programs, Activities and Functions issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A -128. WHEREAS, the Accountants represent they are qualified to render such accounting services. NOW, THEREFORE, the parties agree as follows: 1. The Accountants will audit the general purpose financial statements of the City as of and for the year ended December 31, 1988. Combining statements by fund type, individual fund or account group statements will be subjected to auditing procedures applied in the audit of the basic financial statements. Statistical data, for the Comprehensive Annual Financial Report, will be prepared by the City and not be audited. 2. The audit will be made in accordance with generally accepted auditing standards and those standards required by the single audit act, which shall include the standards for financial and compliance audits contained in Standards for Audit of Governmental Organizations P rograms, Activities and Functions issued by the U.S. General accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A -128, Audit of State and Local Governments and will include tests of the accounting records of the City and other procedures the Accountants consider necessary to enable them to express an unqualified opinion that the financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles and to report on the City's compliance with laws and regulations and its internal controls as required for a Single Audit. If the Accountants opinion is other than unqualified the Accountants will fully discuss the reasons with the City. 3. At the conclusion of the audit, the Accountants will request written representations from the City about the financial statements and related matters. -1- i 4. An audit is based primarily on the selective testing of accounting records and related data. Because the Accountants will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud or defalcations, may exist and not be detected by the audit. If in the course of the audit the Accountants should discover evidence pointing to nonfeasance, misfeasance or malfeasance on the )art of an officer or employee of the City of Pueblo, they reserve the right to promptly make a report of such discovery to the appropriate law enforcement authorities and /or appropriate Federal officials, in accordance with the Single Audit Act of 1984, and related Federal pronouncements. A copy of the audit report and any related workpapers may also be provided to such law enforcement authorities and /or Federal officials for appropriate follow -up action. The Accountants will also inform the City promptly of any findings which appear to be unusual or abnormal. 5. The City will provide the Accountants with the basic information required for the audit and the City is responsible for the accurancy and completeness of that information. The Accountants will advise the City about appropriate accounting principles and their application and will assist in the preparation of the City financial statements, but the responsibility for the financial statements remains with the City. This responsibility includes the maintenance of adequate records and related controls, the selection and application of accounting principles, and the safeguarding of assets. 6. The City will close its financial records in accordance with its normal year end procedures. The Accountants will commence their field work as soon thereafter as practical. Accountants may perform interim work before year end closing. The Accountants will deliver their report to the City no later than June 25. 7. The Accountants will type the audit report, financial statements, schedule of federal financial assistance, and other reports and schedules as required by the Single Audit Act. The City will prepare and type any letters of transmittal and statistical data. The City may direct the Accountants to reproduce the above items in the quantity as requested by the City at City expense. 8. Procedures for billings and payments shall be as follows: a. Accountants fees will be based on the actual time spent at Accountants standard hourly rates, plus out -of- pocket costs. Hourly labor billing shall be paid only for hours of labor reasonably and necessarily required for Accountants performance under this agreement. b. Invoices for these fees will be rendered each month as work progresses directly to the City Finance Department for approval and payment. -2- C. Upon completion of the engagement the Accountants will itemize their charges showing total hours, dollar rate and dollar charges, out -of- pocket expenses and render a final billing accordingly. d. Accountants agree that the maximum fee, excluding out -of- pocket reproduction cost, shall not exceed $22,500 for the 1988 audit subject to the provision of paragraph 9 hereof. 9. Should the Accountants encounter a situation during the course of the audit that could not be anticipated at the time of this Agreement, and should this situation, in their opinion, require them to made a substantially more detailed examination that they had originally anticipated, the Accountants, prior to commencing such additional work, agree to submit to the City an explanation of the problem encountered, recommendations as to procedure to be followed to complete the audit and the estimated additional cost computed at standard hourly rates. 10. Accountants shall maintain all audit workpapers for a period at least three years from the date of the report, or longer if requested by the City or the federal cognizant agency. The City and other federal audit agencies shall have access to such workpapers. 11. This agrement shall be effective also for the audits of the City financial statements for the years ending December 31, 1989 and December 31, 1990 except that the maximum fee shall be $23,300 for 1989 and $24,200 for 1990. 12. Either party may terminate this agreement as to the calendar years 1989 and 1990, or both years, by giving the other party thirty (30) days notice in writing on or before September 30 of the calendar year for which the audit is to be performed. -3- 13. The Accountants 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: C4tC rk CITY OF PUEBLO, A MUNICIPAL CORPORATION By Pre ide e nt of ity Council APPROVED AS TO FORM: City Attorxi y ACCOUNTANTS: BROWN, CLARK & ASSOCIATES r By Q10