HomeMy WebLinkAbout6460RESOLUTION NO. 6460
A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF
PUEBLO, A MUNICIPAL CORPORATION, AND McDONALD, HOLLIGAN
AND McPHERSON, INC., CERTIFIED PUBLIC ACCOUNTANTS
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO that:
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The Agreement between the City of Pueblo, a Municipal Corporation,
and McDonald, Holligan and McPherson, Inc., Certified Public Accountants
for the rendering of professional accounting services to the City of
Pueblo, dated October 16, 1989, a copy of which is attached hereto,
having been approved as to form by the City Attorney, is hereby approved.
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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 13 , 1989
BY MIKE OCCHIATO
Councilman
APPR -
r sident of Council
ATTEST:
City Clerk
AGREEMENT
THIS AGREEMENT, made and entered into this 16th day of
October , 1989, between the City of Pueblo, a Municipal
Corporation, hereinafter called "City ", and McDonald, Holligan &
McPherson, Inc. , hereinafter. called "Accountants ", WITNESSETH:
WHEREAS, the City desires the services of the Accountants for
the rendering of certain professional accounting services, who are
knowledgeable of governmental accounting, auditing, federal grants
and single audit concept and procedures as detailed in OMB's
Circular A -128; and
WHEREAS, the Accountants represent they are qualified to
render such accounting services.
NOW, THEREFORE, the parties hereto agree as follows:
1. The Accountants will make an examination of the balance
sheets, revenue expenditures and budget comparison statements and
related income and surplus statements of the funds of the City,
including trust and agency, special assessment, bond and bond
sinking funds, firemen's pension fund and police pension fund, and
all other funds of the City and such other records as the
Accountants deem necessarX for the years ending December 31, 1989
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and December 31, 1990. AID !fibc.F v3F4? 3 , lq-,/, �k) / &1
2. Int �}��� on the examination for the calendar years
1989 and 199 Bail a commence as soon as practical and all field
work required under this Agreement shall be completed by March 31
of the next calendar year. Reports as set forth herein shall be
completed and delivered by April 30 of said next calendar year
unless an extension of time has been approved by the City.
3. The examination will be made in accordance with
generally accepted auditing and public accounting standards and
practices and in accordance with the requirements of the Single
Audit Act of 1984 and implementing regulations and, accordingly,
will include such tests of the accounting records, internal
control systems and such other auditing procedures as the
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 irregu-
larities, 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 the Accountants and the
City, including the Accountants' opinion thereon. Such audit
report and statements should conform insofar as possible to
current formats promulgated by the National Committee on
Governmental Accounting, Government Finance Officers' Association,
and the requirements of the Single Audit Act of 1984 and
implementing regulations, including but not limited to OMB
Circular A -128. Significant deficiencies in internal control or
unusual financial transactions shall be reported as soon as
possible after such matters have been observed by the Accountants.
b. A comprehensive letter of comments or suggestions
to the City after review with appropriate officials of the C.ity,
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 statutes
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 the 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 the 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 of 1984 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
examined 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 the Accountants.
d. Review adjusting journal entries and comments with
appropriate City personnel before completion of field work.
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e. The Accountants shall also be available for consul-
tation up to ten hours per month each calendar 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 the 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 the 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 the Accountants shall be computed
at a per hour rate as follows:
TITLE RATE PER HOUR
Principal -
$
loo
Supervisor -
$
75
Senior -
$
55
Junior -
$
35
Clerical -
$
25
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 $ 66;eee:eo�Ss,c�va��' each calendar 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 the 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 examination than they had originally anticipated in
order to satisfy themselves as to the reasonableness of the
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financial statements and, therefore, increase the cost of
performing services under this Agreement over and above the amount
stated in paragraph 6(c) above, the Accountants, prior to
commencing such additional work, agree to submit to the City in
writing an explanation of the problem encountered, recommendations
as to procedure 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 examinations 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 of 1984, will be billed at
the hourly rates established above to the particular funds or to
the City if required.
9. This Agreement shall be effective for the audits of the
City financial state is for_ t)j ea, � r.s ending December 31, 1989
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and December 31, 19 exce�3 3 / / � / 't
he rates per ho.ur and the
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maximum fee for. the 199 audit may be increased as such rates and
fees relate to overall increases in the Accountants' normal and
customary rate schedule but in any event not to exceed six percent
(6%).
The AccQQ tars ill inform the City, in advance on or
before May 1, 199f x and
y pr or to commencing of audit work for 19909/�''%!�'?/
of such rate increase and additional audit time required and state
a maximum fee. Either party ma�y,� q� m a,�e_ this Agreement at any
time as to the calendar. year 199^ by g `i��tt''if`g the other party thirty
(30 ) days notice in writing on or before September 30, 199040,2 %»/- -/
10. 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.
APPROVED AS TO FORM:
City Att t l6y
CITY OF PUEBLO,
A MUNICIPAL CORPORATION
B
Pres /ident of the City Council
ACCOUNTANTS:
li Pherson Inc.
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