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HomeMy WebLinkAbout7461RESOLUTION NO. 7461 A RESOLUTION TO ENTER INTO AN AGREEMENT FOR THE RENDERING OF PROFESSIONAL ACCOUNTING SERVICES TO THE CITY OF PUEBLO. BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, THAT: SECTION 1 The Agreement between the City of Pueblo, a Municipal Corporation, and McDonald, Holligan & McPherson,, Tnc_ , Certified Public Accountants for the rendering of professional accounting services to the City of Pueblo, dated August 19, 1994, 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 September 12 , 1994 BY: SAMUEL CORSENTINO Councilperson APPROVED: P id#nt of the Council ATTEST: Ci Clerk "T AGREEMENT THIS AGREEMENT, made and entered into this 12th day of SePtember 1 1994, 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 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 -128; 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 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 Accountants deem necessary for the years ending December 31, 1994, December 31, 1995 and December 31, 1996. 2. Interim work on the examination for the calendar years 1994, 1995 and 1996 shall 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 including those of the Governmental Accounting Standards Board of the Financial Accounting Foundation 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 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 th ` g test examinations will disclose shortages or other irregularities, should any exist. 4. The Accountants shall render the following reports: REF nU A UG 1.6 1'094 DEPT. OF a. An audit report containing financial statements for all funds in a form to between Accountants and City, including Accountants' opinion thereon. Such audit repo 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 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 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 Accountants. -2- d. Review adjusting journal entries and comments with appropriate City personnel before completion of field work. e. The Accountants shall also be available for consultation 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 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: Principal - $ 105 Supervisor - $ 80 Senior - $ 60 Junior 40 Clerical 30 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 $ 69,500.00 for 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 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, required them to make a substantially more detailed examination 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 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 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 the years ending December 31, 1994, December 31, 1995 and December 31, 1996, except that the rates per hour and the maximum fee for the 1995 and 1996 audit 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 six percent (6 %). The Accountants will inform the City, in advance on or before May 1, 1995 and May 1, 1996 and prior to commencing of audit work for 1995 or 1996 of such rate increase and additional audit time required and state a maximum fee. Either party may terminate this Agreement at any time as to the calendar year 1995 or 1996 by giving the other party thirty (30) days notice in writing on or before September 30, 1995 or September 30, 1996, whichever the case may be. 11. 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: Citj Clerk CITY OF PUEBLO, A MUNICIPAL CORPORATION By r id nt of the City Council APPROVED AS TO FORM: City Attorney ACCOUNTANTS: INC. -4- a\ a V •\ WA aaL.