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HomeMy WebLinkAboutResolution - 879 - Audit Agreement - MNW - Independent Examination Of Finacial Statements - 07/23/1981dP-. JUL ISM DGV:js RESOLUTION 879 - 7/23/81 See: Reso. #368 - 12/12/79 .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 Audit Agree- ment between the City of Lubbock and Mason, Nickels and 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 23rd day of July ,1981. r r I jtfLL MCALI TER, MAYOR "ATTEST: EvelynrGaf_ga, City gec y -Treasurer APPROVED -AS TO CONTENT: Robert Massengale, Dire for of Finance APPROVED AS TO FORM: Donald G. Vandiver, Asst. City Attorney RESOLUTION 879 - 7/23/81 See: Reso. #368 -.12/12/79 . CITY SECRETARY -TREASURER STATE OF TEXAS COUNTY OF LUBBOCK THIS AGREEMENT made and entered into this 23rd day of July 9 1981, between the City of Lubbock, Lubbock County, Texas, hereinafter referred to as City, and Mason, Nickels and Warner, Certified Public Accountants, Lub- bock, 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 accord- ance 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 equivalent 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 Con- formance from the Municipal Finance Officers Association. Although defalca- tions 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 agree- ment, 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 effi- ciency and operation. Upon request of the City the accountant shall furnish work papers or other documentation upon which such recommendations are made. II. Said examination shall cover the fiscal year period from October 1, 1980, to September 30, 1981, with the exception of the Lubbock Firemen's Relief and Retirement Fund, Community Development Block Grant, and the Library Grants, which shall be examined as is hereinafter stated. The Accounting Services shall be extended for an additional three 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 impairing the provisions of the above referred to Section 26 of said Charter, said examination shall specifically include the following funds agencies, and grants of the City: General Fund Capital Projects Fund Debt Service Fund Trust and Agency Funds Electric Revenue Funds Sanitation Revenue Fund Water Revenue Fund Sewer Revenue Fund Internal Service Fund Municipal Airport Fund Special Assessment Fund Grants Fund Special Revenue Fund (Revenue Sharing Fund) General Fixed Assets General Long Term Debt Statement of Accountability of the Tax Assessor -Collector Civic Lubbock, Inc. Lubbock General Athletic & Recreational Association Lubbock Board of City Development Lubbock Firemen's Relief & Retirement Fund Community Development Block Grant Library Grants Community Services Administration & Crisis Intervention Grants DOE Weatherization Grant Transit Operational Assistance Grant Revenue Sharing Compliance And Federal Grant Certifications, to the extent that required audit procedures are those necessary in rendering an opinion of the City's operations. Additional audit work necessary to render special re- ports, as required by a Federal grant, or additional grants requiring an audit by independent public accountants, shall be covered under this agreement and not require a separate contract. Further, it is understood between the parties that said City does not desire the Accountant to attempt confirmation of delinquent taxes by direct correspondence with the debtor in connection with the examination of the Tax Assessor -Collector's Office, and that such limitation of scope may cause the Accountant to qualify his opinion at least to that extent. c 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 of the funds and agencies by January 31 following the close of the City's fiscal year and deliver to the City a camera ready copy. 'The Community Development Block Grant shall be completed within 150 days of year end. Library Grant audits shall be completed by February 1. The Community Services and Crisis Intervention Grant and Revenue Sharing audits shall be completed by March 31. The DOE Weatherization Grant shall be completed within 90 days after the end of the contract period. The Transit Operational Assis- tance Grant shall be completed by January 31. 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: (a) The Accountant shall prepare a statement showing the hourly rates for Accountant and Accountants 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 years service to be performed under this agreement. (d) The Council will consider Accountants statement and either approve or reject same prior to Accountants performing services under this agreement. (e) If the City Council rejects Accountants 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 statement. If there is not sufficient time to submit a revised statement or if the revised statement is rejected by the Council then in such event the original reject or the rejection of the revised 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 Accountants 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 statement shall be submitted for each year that this Contract is in force and that the statement approved for the current year for which services are being performed shall always be the controlling statement and shall establish the consideration to be paid Accountant for the year in question. VII. If during the course of this Contract 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 statement for each 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 state- ment then in such event the City is free to engage another Accountant to per- form such additional work. VIII. During the course of this Contract Accountant shall submit to City a de- tailed statement of all work performed by Accountant for City under this agree - went. 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 statement submitted for payment under this agreement to City. 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. CITY OF LUBB B MCALIST R, MAYOR ATTEST. Evelyn Gaffga-, City e e ry-Treasurer APPROVED AS_TO CONTENT: Robert Massengale, rector of Finance APPROVED AS TO FORM: Donald G. Vandiver, Asst. City Attorney MASON, NICKELS & WARNER PARTNER ATTES