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
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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: