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HomeMy WebLinkAboutResolution - 052275D - Contract For Audit Services - Main Lafrentz & Co - 05_22_1975A KJ:dw RESOLUTION D5Z275 a 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 a CONTRACT FOR AUDIT SERVICES between the CITY OF LUBBOCK and MAIN LAFRENTZ & COMPANY, 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 22 day of May , 1975. ROY BAUS, 11 ATTEST: ell Treva Phillips, CJVY Secretary -Treasurer APPROVED AS TO FORM: red O. Senter, J . , City rney YOR CONTRACT FOR AUDIT SERVICES This Agreement, entered into as of the 22 day of May 1975, by and between the City of Lubbock, (Hereinafter called the "Owner and Main Lafrentz & Company, Independent Public Accountant of 280 Park Avenue, New ' York, New York 10017 with offices at First National -Pioneer Building, Lubbock, Texas 79401, (hereinafter called the "Contractor' WITNESSETH: WHEREAS the Owner under date of May 24, 1973, entered into a.Grant Contract with the United States of America acting through the .Department of Housing and Urban Development (hereinafter referred to as the "Govern- ment") for financial assistance under Section 703 of the Housing and Urban Development Act of 1965, to finance a portion of the development cost of a neighborhood facility, known as Project No. NFG-06-16-1007 (hereinafter called the "Project"); and WHEREAS, pursuant to said contract, the Government and the Comp- troller General of the United States or his duly authorized representatives have the right to audit the books and records of the Owner pertinent to its operations with respect to such financial assistance; and WHEREAS the Government has authorized the Owner to procure such an audit by an Independent Public Accountant in lieu of audit by the Government, subject to Government approval of the specific contract for audit entered into between the Owner and the Independent Public Accountant; -and WHEREAS the Owner desires the Contractor to conduct and perform such an audit; NOW, THEREFORE, the parties agree as follows: 1. The Contractor shall audit the accounts and records pertaining to the Project in accordance with generally accepted auditing standards and the auditing and reporting provisions of HUD Handbook IG 7350.3, Audit Guide for the Neighborhood Facilities Grant Program for use by Independent Public Accountants, herein called the Audit Guide. 2. If the Contractor determines that the Owner's books and records are not in sufficiently satisfactory condition for performing an audit, the Contractor shall disclose this deficiency to the Owner. If, the Owner cannot get its books and records ready for audit within 15 days, the Contractor shall notify the Government. Notification to the Government shall be by written communication addressed to the Regional Inspector General for Audit, Regional Office, Department of Housing and Urban Development, 1100 Commerce Street, Dallas, Texas 75202, with a copy to the Area Director, Area Office, Department of Housing and Urban Development, 2001 Bryan Tower, Dallas, Texas 75201. The Contractor shall await further instructions from the Regional Inspector General for Audit before continuing the audit. 3. Upon completion of the audit, an Audit Report consisting of those elements described in the Audit Guide shall be simultaneously submitted to the Regional Inspector General for Audit (16 copies) and to the local public official who signed the Neighborhood Facilities grant contract with the Government (5copies) as joint addressees. 4. The Audit Report shall be submitted within 45 days after receipt of notification by the Owner to proceed with the audit. 5. The Owner agrees to pay the Contractor as compensation for the services and report mentioned herein, a lump -sum. fee of $500.00, inclusive of all costs and expenses; provided, however, that the Owner by amendment of this contract may increase the lump -sum fee upon showing by the Con- tractor, agreed to by the Owner, that the Contractor has discovered con- ditions in the accounts of the Owner which require investigation consuming substantially more time than would generally be required to perform the prescribed audit. Such fee shall be payable after receipt and acceptance by the Government of the Audit Report. 6. Changes in the scope of the services of the Contractor to be per- formed under this contract, including any increase or decrease in the amount of the Contractor's compensation and any change in the time limitation for submission of the Contractor's report, which are mutually .agreed upon by and between the Owner and the Contractor, shall be incorporated into written amendments to this contract and shall be subject to the Government's approval. 7. The Contractor certifies that its principal officers are Certified Public Accountants, certified, licensed or registered by a regulatory authority of a State or other political subdivision of the United States. A statement identifying such certification or license shall be attached to this contract. 8. The Contractor,. during the period to be covered by audit, shall have no interest, direct or indirect, with respect to the Owner. which creates a conflict of interest. The following are conflicts of interest: a. Family relationships with officials of the Owner. b. Where the accountant during the period covered by the audit was connected as an officer or employee of the Owner. -2- 9. No member, officer of employee of the Owner, no member of the governing body of the locality in which the Owner's project is situated, and no other public official of such locaility or localities who exercises any res- ponsibilities or functions with respect to the Owner's project, during his tenure or for 1 year thereafter, shall have any interest, direct or indirect, in this contract or the proceeds thereof. 10. No member of or Delegate to Congress of the United States shall be admitted to any share or part of this contract or to any benefit that may arise therefrom. 11. The Contractor warrants that he has not employed any person to solicit or secure this contract upon any agreement for a commission, per- centage, brokerage, or contingent fee. Breach of this warranty shall give the Owner the right to terminate this contract, or, in its discretion, to deduct from the Contractor's fee the amount of such commission, percentage, brok- erage, or contingent fee. 12. The Contractor shall not assign or transfer any interest in this contract except that claims for monies due or to become due from the Owner under the contract may be assigned to a bank, trust company, or other financial institution. If the Contractor is a partnership, this contract shall inure to the benefit of the surviving or remaining members of such partner- ship. 13. The Contractor shall not -discriminate against any employee or applicant for employment because of race, color, religion, sex, age, or national origin. The Contractor shall take affirmative action to ensure that applicants are employed, and employees are treated during employment, without regard to race, color, religion, sex, age, or national origin. Such action shall include, but not be limited to, the following: employment, .upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. 14. For a period of 3 years after final payment under this contract, the Contractor shall make its workpapers, records, and other evidence of audit available to the Government and the Comptroller General of the United States or his duly authorized representatives. The Government and the Comptroller General shall be entitled to reproduce any or all of such docu- ments at their expense for which provision shall be made at the time the need for reproduction arises. 15. The Government's approval of this contract shall be evidenced by the signature of the Area Director at the end thereof. -3- • IN WITNESS WHEREOF, the Owner and the Contractor have executed this agreement the day and year first above written. CITY OF LUBBOCK 1 11 /IIL11,I i +/ BY ROY BASS, MAYOR ATTEST: ; Treva Phillips, Ci Secretary -Treasurer �. APPROVED AS TO FORM: Fred O. Sente , Jr., Ciy/Attorney MAIN LAFRENTZ & COMPANY BY F LEROY RICHARDSON Concurred: DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (Regional Inspector General for Audit) Date: (Name of Regional Office) Approved: (Area Director) Date: (Name of Area Office) '