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Home My WebLink AboutResolution - 537 - Agreement - MN&W CPA - Federal & State Grant Audits - 06/12/1980p i DGV/pg RESOLUTION X6537 - 6/12/80 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement between the City of Lubbock and Mason, Nickels & Warner, Certified Public Accountants attached herewith which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 12th day of ,1980. t 'I P'l L Mc STERAlMiAYOlt 1 ATTEST: Evelyn Gaf gZ elity S a -Treasurer APPROVED AS TO FORM: �JC)A41A P --R Y-� Donard G. Vandiver, Assistant City Attorney RESOLUTION #537 - 6/12/80 ,'r STATE OF TEXAS § COUNTY OF LUBBOCK § THIS AGREEMENT made and entered into this 12th day of June, 1980, between the City of Lubbock, Lubbock County, Texas, hereinafter referred to as City, and Mason, Nickels & Warner, Certified Public Accountants, Lubbock, Texas, hereinafter referred to as Accountant. WITNESSETH: WHEREAS, the parties hereto did enter into an agreement on the 12th day of December, 1979, wherein Accountant did agree to perform certain audit examinations described in said agreement; and WHEREAS, said agreement did not provide for Accountant to perform audit examinations on any item, account or matter not covered by said aforementioned agreement; and WHEREAS, the City is in need of Accountants professional services to perform certified audits on certain specified Federal and State Grants, and WHEREAS, the aforementioned work required by City is outside the scope of services to be provided by Accountant under this agreement of December 12, 1979. NOW THEREFORE, the City and Accountants do hereby mutually agree as follows: I. SCOPE OF SERVICES 1. The Accountant hereby agrees to perform certified audits on the following Federal or State Grant projects operated by City: A. Department of Energy - Weatherization assistance for low income persons, Grant Contract No. 48005680 for the period of time from September 9, 1979 through February 29, 1980. 2. Accountant further agrees to commence and complete the audits in accordance to the following schedule: A. The audit for Department of Energy - Weatherization Grant shall commence upon execution of this agreement and be completed by August 31, 1980. 3. Accountant will deliver 10 copies of each audit report to the City upon completion of said work by Accountant. II. COMPENSATION 1. The City agrees to pay Accountant for services rendered under this agreement up to a maximum cost to the City for audit services rendered as follows: A. Department of Energy - Weatherization Grant (1,500 Dollars) METHOD OF PAYMENT The Accountant will submit progress billing at selected intervals based on work performed. The City may withhold ten percent of each such billing until final completion of the work at which time Accountant shall submit a detailed billing to City showing the hours expended by Accountant on each audit performed together with a request for final payment. IV. COOPERATION OF CITY The City agrees to make available to Accountant at the expense of the City the printing facilities of the City for use by Accountant in preparing reports contemplated herein. The City will also cooperate with Accountant in making its records and personnel available to Accountant for the purpose of his work under this agreement. V. Accountant agrees to conduct the audits which are the subject of this agreement in accordance with all applicable Federal or State Guidelines or audit procedures. VI. TERMINATION This agreement shall terminate upon delivery of the audit reports from Accountant to City as required in Paragraph I, sub -paragraph 3, of this agreement. ATTEST: CITY OF LUBBOCK Evelyn Ga fga, City S cr a -Treas. BILL McALISTER, MAYOR APPROVED AS TO CONTENT: MASON NICKELS & WARNER CertifieA Public ountants 6 /h e-.60-wt!=4 By: &A A . Robert Massengale, DiV. of Finance Partner APPROVED AS TO FORM: Donald G. Vandiver, Asst. City Atty. AUDITED FINANCIAL STATEMENTS CITY OF LUBBOCK, TEXAS D.O.E. WEATHERIZATION ASSISTANCE FOR LOW INCOME PERSONS GRANT February 29, 1980 SEP 22198Q CIiY SfC$ff'ARY i I om r- +�► AUDITED FINANCIAL STATEMENTS CITY OF LUBBOCK, TEXAS D.O.E. WEATHERIZATION ASSISTANCE FOR LOW INCOME PERSONS GRANT February 29, 1950 Am oft r MOW sioni -4 -i- MASON, NICKELS &.: WARNER CERTIFIED PUBLIC ACCOUNTANTS SUITE 4601 TOWER OF THE PLAINS 15010 UNIVERSITY AVENUE C P.O. BOX 36701 LUBBOCK, TEXAS 79452118063 797-3251 The Honorable Bill McAlister, Mayor Members; of the City Council Qity of. Lubbock, Texas We have examined the balance sheet of the D.O.E. Weatherization Assistance for Low Income Persons Grant of the City of Lubbock, Texas, as of February 29, 1986, related statements of revenues and expenditures and changes in and the fund balanceI'forilthe'six month period then ended. Our examination was made in iccordance:w th generally accepted auditing standards and the requirements of the CSA manual 2410-1 dated January, 19759 and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary'in the circumstances. 'In our opinion, the financial statements referred to above present fairly the financial position of the D.O.E. Weatherization Assistance for Low Income Persons" Grant of the City of Lubbock,Texas, as of February 29, 1980, and the results of its operations for the six month period then ended, in conformity "`" with $eneral:ly accepted accounting principles. 1 ,I. Lubbock, Texas August 299 1980 ,r. 3 Mk MEMEERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS I TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS ... _.F. �.`'�� _• �. rim... r+ -�r... ;. .. . . BALANCE SHEET CITY OF LUBBOCK TEXAS D.O.E.; WEATHERIZAT.ION ASSISTANCE FOR IOW INCOME PERSONS GRANT February 29, 1980 ASSETS Cash and investments $ 13,573 Due from federal government 1,410 Due from other funds 2,603, 17.586 LIABILITIES AND FUND BALANCE Due to other funds $ 15,559 Accounts payable 1j561 s 17,120 .4 Fund Balance 466 17.586 See notes to financial statements. .. 4' STATEMENT.OF,REVENUESV EXPENDITURES AND FUND BALANCE w. CITY OF.LUBBOCRV TERAS D,O,E. WEATHERIZATION ASSISTANCE FOR LOW INCOME PERSONS GRANT Six Months Ended February 280 1980 .. REVENUES D.O.E. Weatherization Grant Funds $ 24j570 Interest income 37 .,, 249607 EXPENDITURES: Personnel $ 8,436 Consultants and contract services 1,200 Travel 100 Space costs and rentals' 500 Consumable supplies 13,867 Other direct costs 38 Total Expenditures 24,141 Excess of Revenues over Expenditures 466 Fund balance at beginning of period -0- FUND BALANCE AT END OF PERIOD $ 466 r.. See notes to financial statements, 5 NOTES TO FINANCIAL STATEMENTS ,•• CITY OF LUBBOCK, TEXAS D.O.E.'.WEATHERIZATION ASSISTANCE FOR LOW INCOME PERSONS GRANT 'mk February 299 1980 ^� Note A'- Summary of Significant Accounting Policies Method of Accounting- The accounting records of the D.O.E. Weatherization Assistance for Low Income Persons Grant are maintained as part of the Grants Fund of the City of Lubbock. As such, they are maintained on the modified accrual basis, Revenues are recorded on a cash basis. Expenditures are recorded at the time liabilities are incurred. Note R Questioned Cost 'There were no questioned cost for the six months ended February 29, 1980. Ok Oft 6 No Text MASON, NICKELS & WARNER F CERTIFIEO PUBLIC ACCOUNTANTS SUITE 4601 TOV1/ER OF THE PLAINS 5010 UNIVERSITY AVENUE I P.O. B0X 36701 LUBBOCK. TEXAS 794521 16061 797-3251 The Honorable Bill McAlister, Mayor Members of the City Council City of. Lubbock, Texas In connection with our examination of the financial statements of the. City of Lubbock D.'O.`E. Weatherization Grant for the six months ended February 29, 1980, we Irevieweandhe following matters which we believe should be presented to you for Our comments were developed from observations made during" the course of our examination. They are not "intended, in any manner, to be:critical, or to`cast adverse reflections 'on the character or _ability of any ""'• employee orperson associated with the Lubbock Commuinity Services Department. Our intent' bridging these matters to your attention i8 to assist you with eontinued� ialprovment of the department's financial management. ! PERSONNEL CONTACTED The report was'discussed.with Peter Nuckells, acting director of the City of Lubbock.Community Services Departments and J. Robert Massengale,.finance director. They agreed with our report and'comments. ,.� SCOPE OF AUDIT II We have ox*amined the financial statements of the City of Lubbock D.O.E. 1.. We'atherization Grant for the six months ended February ;290 1980, and have iessued aur report thereon dated August 299 1980. As part of our examination, r „ we have made a study of those internal accounting and administrative control Procedures' of thegranteethat we considered relevant to the criteria 7m e'tablished by 'the Community Services Administration (CSA) as set forth in Sectign VI'dnd Appendix A of its Accounting System Survey and Audit Guide issued Janus !'' 1975. Our study including tests of compliance with such ^^ procedures as applicable to this grant, during the six months ended February 29, 198Q. SUMkARY OF AUDITOR'S OBSERVATIONS AND RECOMMENDATIONS Section 243!of :the Community Services 'Act of 1974 and related regulations require a review and evaluation of the adequacy of the accounting system and -internal controls of the grantee and its delegate agencies to safeguard its assets, check the accuracy and reliability of the accounting data, promote operating efficiency and encourage compliance with prescribed management �. -policies and such additional fiscal accounting and administrative requirements MEMBERS I AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS I TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS r Honorable Bill McAlistery Mayor as the'CSA may establish. We understand that procedures.in conformity with the Jim criteria referred to in the Scope of Audit section of this report are. considered by the Community Sevices Administration to be adequate for its purposes in accordance with such Act and related regulations and that procedures that are not in conformity therewith indicate some inadequacy for such purposes. Based on this understandingand on our studyg we believe that the .recepient's procedures were adequate for the purpose of the Community Services Administration. a.. This report is intended for use in connection with the grant to which the report, refers and should not be used for any other purpose. LubbocIct Texas August', z9, 1980 ,► ..� .F. dIft _ 2