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HomeMy WebLinkAboutResolution - 1975 - Agreement - Mason, Nickles, & Warner - Auditing Services - 03/14/1985DGV:js RESOLUTION Resolution #1975 Agenda Item #30 March 14,1985 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 by and between the City of Lubbock and Mason, Nickels and Warner for auditing services, 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 14th day of March , 1985. ALAK HENRY, - R ATTEST: to Boyd, City Secretfiry APPROVED AS TO CONTENT: Robert Massengalef Assistant City Manager for Financial Services APPROVED AS TO FORM: uonaia u. Vandiver, Assistant City Attorney +owa 7.010 MASONS WARNER & COMPANY JR ...� 0000_. �... ..._�.. ......,......... CERTIFIED PUBLIC ACCOUNTANTS SUITE 400 TOWER OF THE PLAINS 5010 UNIVERSITY AVENUE P.O. BOX 36701 LUBBOCK'. TEXAS 794521 [B061 797-3251' Honorable B. C. "Peck" McMinn Members of the City Council and Larry J. Cunningham, City Manager City;,of Lubbock, Texas` Under the terms of our agreement with the City of Lubbock dated March 14, 1985, we respectfully submit for your consideration :the foljowings The fee for examination of the financial statements for the year ended September 30, 1986 of the various funds and agencies as specified in Section I of our agreement will be a maximum of seventy five thousand dollars ($ 75,000). The hourlyrates for personnel p el assigned to the 'City of Lubbock Audit will be: Partner $115.00 M anagen 85.00 Supervisor 64.00 Senior 53.00 Staff 43.00 If the above maximum fees are acceptable to the City, please sign one copy of this letter and return it to us. The additional copy is for your records. Ver y, yo s Larry nderson, CPA Partner APPROVED: . C. "Peck' McMinn, Mayor Date: October 7, 1986 I Robert Massengale, rector of Finance Date October 7, 1986 I MEMBERS f AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS I TEXAS SOCIETY OF CERTIFIEO PUBLIC ACCOUNTANTS Resolution #1975 STATE OF TEXAS COUNTY OF LUBBOCK THIS AGREEMENT made and entered into this 14th day of March , 1985, between the City of Lubbock, Lubbock County, Texas, hereinafter referred to as City, and Mason, Nickels and Warner, Certified Public Accountants, Lubbock, Texas, hereinafter referred to as Accountant. WITNESSETH• THAT for and in consideration of the mutual convenants and promises hereinafter contained, it is agreed between the parties hereto as follows: I. The Accountant agrees for the consideration hereinafter expressed, to make an independent examination of the financial statements of the City in accordance with the provisions of Chapter 1, Article IX,: Section 26 of the Charter of the City, said examination to include each and all of the matters and things provided for in said Section of said Charter, and to include any other things and matters that might be properly made in accordance with generally accepted auditing standards and that, to the extent necessary and practicable, the audit procedures on Governmental Accounting titled Governmental Accounting.Auditing and Financial Reporting or its equiva- lent shall be followed. The accountant shall work closely with the City and shall assist the City in preparing the financial.information necessary for the City to obtain a Certificate of Conformance from the Governmental Finance Officers Association. Although defalcations and similar irregularities may occasionally be disclosed by this type of examination, it is not designed for this purpose and should not be relied on to disclose fraud, should any exist. Accountants will report to City anything that appears to them during their examination to be unusual or abnormal. It is specifically understood by both parties to this agreement that the scope of the examination shall be sufficient so as to allow the Accountant to either render or deny an opinion on the financial statements. For purposes of this agreement, financial statements shall include only those statements necessary for compliance with generally accepted accounting principles. Accountant agrees to provide City with a letter of recommendations which may lead to better efficiency and operation. Upon request of the City, the accountant shall VII. If, during the course of this Contract, the City requires the services of Accountant on matters outside the scope of this agreement, then in each such case Accountant agrees it will submit.a new fee statement for such services and if accepted by the City Council will enter into a Contract with the City covering such additional work. In the event the City does not accept Accountants new fee statement, then in such event the City is free to engage another Accountant to perform such additional work. VIII. During the course of this Contract Accountant shall submit to City a detailed statement of all work performed by Accountant for City under this agreement. Such statement shall contain the classification of each person who has performed services under this agreement for the City together with a detailed hourly breakdown showing the services rendered and the time of each person rendering such service. Accountant further agrees to provide to the City on request additional information to justify any fee statement submitted for payment under this agreement to City. If requested, Accountant shall also provide a statement giving a detailed breakdown of services rendered by funds and/or agencies as described in Section III. IX. The Accountant may submit progress billing at selected intervals based on work performed. The City may withhold 10% of such billing until final approval of the Audit. X. It is further agreed between the parties that for the purposes of deter- mining the place of the Contract and the law governing the same, that this Contract is entered into in the City and County of Lubbock, State of Texas, and shall be governed by the laws of the State of Texas. ATTEST: CITY 0 LUB OCK Ranet a Boyd, City Secretary Al Henry, Mayor ED AS TO FORM: N N CKEL W ER 5 d G. Vandiver, Assistant City Attorney APP OVED AS TO CONTENT: obert Massengal , Assistant,City Manager for Financial Services (a) The Accountant shall prepare a fee statement showing the hourly rates for Accountant and Accountant's employees together with a total charge for the work to be performed by Accountant. (b) The statement referred to in paragraph ('a). above shall be submitted to the City Council for approval at least 30 days prior to Accountant undertaking the work contemplated by this agreement. (c) The Accountant shall submit a separate statement for his services for each year's service to be performed under this agreement. (d) The Council will consider Accountant's fee statement and either approve or reject same prior to Accountants performing services under this agreement. (e) If the City Council rejects Accountant's fee statement, Accountant may submit a revised statement to the City Council provided this can be accomplished prior.to the start of the time period to be covered by said fee statement. If there is not sufficient time to submit a revised fee statement or if the revised fee statement is rejected by the Council then in such event the original reject or the rejection of the revised fee statement, which ever is applicable, shall operate to cancel the entire agreement between the parties. The City shall then be free to either negotiate a new agreement with Accountant or to engage another Accountant for the purposes contemplated by this agreement. (f) If the City Council accepts the Accountant's fee statement, then such statement shall be attached to this agreement by the City Secretary and shall become a part of this Contract for all purposes. It is understood by the parties that a fee statement shall be submitted for each year that this Contract is in force and that the fee statement approved for the current year for which services are being performed shall always be the controlling fee statement and shall establish the consideration to be paid Accountant for the year in question. furnish work papers or other documentation upon which such recommendations are made. II. Said examination shall cover the fiscal.year period:from October 1, 1984, to September 30, 1985, with the exception of the Lubbock Firemen's Relief and Retirement Fund, which will cover the twelve-month period from January 1, 1985, to December 31, 1985. The Accounting Services shall be extended for an additional four periods, as stated above, unless cancelled by either party hereto. In the event of cancellation, notice shall be given to the other party on or before May 15 of the year cancellation is to be effective. III. Without imparing the provisions of the above referred to Section 26 of said Charter, said examination shall specifically include funds and agencies of the City of Lubbock as necessary to comply with reporting entity requirements as prescribed by generally accepted accounting standards and Governmental Accounting, Auditing and Financial Reporting The examination will also include the Lubbock. Firemen's Relief and Retirement Fund. Further, it is understood between the parties that the Accountant agrees to work with the Lubbock County Tax Appraisal District and its accountant as necessary to satisfy themselves with regards to the account- ing and reporting of the.City's ad valorem taxes. IV. The Accountant shall undertake the performance of the examination as soon as possible, and in no event later than the time prescribed by the above referred to Section 26, of the Charter of the City. The Accountant_ agrees to complete his report by January 31 following the close of the City's fiscal year. V. The City agrees to make available to the Accountant, at the expense of the City, the printing facilities of the City and any other facilities or personnel that will aid said Accountant in the conduct of the examination. VI. The City agrees to pay the Accountant for Accountant's services under this agreement as follows: