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Res 100-91 6/18/1991RESOLUTION NO._JW-- 9Z___ RESOLUTION PROVIDING FOR THE ANNUAL AUDIT FOR FISCAL YEARS ENDING 9-30-92, 9-30-93 AND 9 30-94 . AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH MATHIS, WEST AND HUFFINES. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS. THAT: That certain contract , a copy of which is attached hereto , between the City of Wichita Falls and Mathis, West and Huffines, for the independent audit of the City of Wichita Falls for a three-year period , is hereby approved . and the City Manager is authorized to execute the same for the City of Wichita Falls. PASSED AND APPROVED THIS THE je«' DAY OF (L-lte_2 19 1' v MAYOR ATTEST: t________________ CITY CLERK Page of Agenda Item No .____ ___ r Page 1 CONTRACT I. NAME OF CONTRACTING PARTIES This Contract is entered into on between the City of Wichita Falls, State of Texas, hereafter called the City and Mathis, West, Huffines & Co., P.C., hereafter called the Auditor. The City as referred to in this Contract shall mean the City Council or its designee. The parties hereto agree as follows: II. NAMED INDIVIDUALS A. Assignment of Named Individuals The Auditor shall assign each year before work is to be started the following in-charge and senior level individuals to the project described in this contract. Resumes of these individuals are attached. B. Changes in Staff The Auditor agrees that if additional in-charge and senior level personnel are to be used in performing the Contract that the Auditor will provide the city with their resumes and that if any of those persons are replacements of persons initially assigned that they will have qualifications equal to or exceeding those originally assigned. III. SCOPE OF WORK A. Audit ScopeP The audit shall be made of all funds and account groups of the City of Wichita Falls, Texas, which the City has direct or maintenance responsibility, including the appropriate GASS statements and interpretations as applicable. B. Audit Survey Prior to performing the audit, the Auditor will survey the City's accounting system to facilitate preparing a detailed audit program. C. Audit Standards and Procedures The audit shall be made in accordance with generally accepted auditing standards (GAAS) as prescribed by the American Institute of Certified Public Accountants (AICPA) , the Governmental Accounting Standards Board (GASB) , and in accordance with the Single Audit Act of 1984, and the provisions of OMB Circular A-128 or any subsequent revisions. Page 2 Statements of Auditing standards (SAS) shall be adhered to by the Auditor at all times during the term of this Contract. Prior to commencing the audit field work, the Auditor will contact the City Manager to discuss any areas or issues that the City Manager desires the Auditor to be aware of. D. Statements and Records to be Provided by Local Government Staff 1. The City staff and related departments shall have closed and balanced all accounts by fund for all funds to be examined by the Auditor by December 10th of each year. 2. A trial balance at the individual fund level will be delivered to the Auditor on or before December 10th of each year. The Auditor shall use these trial balances as a basis for their preparation of the financial reports and supporting schedules. Merging and grouping entries will be prepared by the Auditor in the report preparation. E. Certificate of Achievement The Auditor's staff shall develop and prepare the additional financial and statistical information, not subject to examination by the Auditor, but necessary to substantially conform to the principles and standards of public financial reporting prescribed by GASH. The Auditor shall prepare the financial report each year in a manner that will enable the City to seek the Certificate of Achievement for Excellence in Financial Reporting. F. Management Letter The Auditor shall observe the adequacy of the system of internal control. If weaknesses are noted, appropriate recommendations should first be reviewed with the appropriate public official and then included in a separate management letter issued to the City Manager and City Council. G. Disclosure of Irregularities The City authorizes the Auditor to disclose immediately all findings of suspected fraud or embezzlement to the City Council or appropriate law enforcement agency. H. Unqualified opinion The Auditor shall express an unqualified opinion on the financial statements of all funds and account groups. If unable to express an unqualified opinion, the Auditor should state the reasons for qualification, disclaimer, or adverse opinion. Page 3 I. Audit Report The Auditor shall provide 150 copies of the Comprehensive Annual Financial Report and 30 each of all other reports which should be printed on regular letter-size (8-1/2" x 11") paper, using both sides of the paper whenever possible. Fold-out sheets will not be acceptable, nor will split sheets be acceptable. Report covers for the Comprehensive Annual Financial Report will be provided by the City. All other report covers will be provided by the Auditor at his cost. The City will perform or pay for printing the financial pages of the report. Page appearance, font style, and report layouts will be selected by the City. The report shall be made to the Mayor and City Council by delivering copies to them at City Hall. The print ready draft copy of the Comprehensive Annual Financial Report and all other reports shall be delivered no later than January 30th of each year. IV. WORK SCHEDULE The Auditor shall conduct an audit of the records, accounts, and procedures of the City for the fiscal periods ending in 1992, 1993, and 1994. The Auditor will meet with the City as requested or as needed to keep the city informed as to audit progress and procedures performed. V. COMPENSATION AND TERMS OF CONTRACT A. The total payment to the Auditor for audit services to be rendered under this Contract shall not exceed $162,000 for the period with maximum annual payments as follows: Fiscal Comprehensive Single UMTA Year City Audit Audit Sec. 15 Total 1992 41,500 12,500 Included in 54,000 1993 41,500 12,500 Single Audit 54,000 1994 41,500 12,500 Fee 54,000 Total 124,500 37,500, N.A.162,000, B. Periodic billings shall be submitted as work progresses, but not more often than monthly. The Auditor shall submit hours worked by staff level, i.e. : shareholder, senior, junior, etc. and hours by categorical summary, i.e. : planning audit, evaluation of internal control, etc., using the reporting format provided by the City. C. city participation beyond those addressed in section VI and delay in delivery of report will result in reduction in billings at hourly rate based upon cumulative hours) billed for fiscal year in Section V. The City reserves the right to withhold payments if the draft ready copy of the report has not been delivered to the City by January 30th of each year. Page 4 D. It is anticipated that other accounting or consulting services may be • requested by the City council during the term of this contract. Such services, if needed, are not within the scope of this Contract and are not within the compensation outlined in V.A. above. E. Major revisions to the City's accounting system or other events that would change the scope could occur during the term of this Contract. Should such changes require a significant change in the number of man hours required to perform the annual audit, the Contract fee may be renegotiated by the Auditor or by the City. VI. LIMIT OF SERVICE FURNISHED TO THE AUDITOR The City's Department of Accounting/Finance will address questions pertaining to accounting procedures as addressed through the Director of Finance. The City's assistance shall be limited to providing location and filing sequence of information for all permanent records for audit sampling and replacement of records by the Auditor. All computer printed information will be made available for use by the Auditor. The City staff will provide account analysis from the existing transaction history files for any and all accounts selected for inquiry by the Auditor in the form of computer printout analysis. The City staff is not obligated to prepare audit" workpapers or obligated to perform audit assistance beyond what is outlined herein. The City Clerk shall keep on file, properly indexed for ready reference, all ordinances, resolutions, minutes of council meetings, contracts, leases and agreements. Records of this type will be available through that office. The City Attorney's staff will be available to provide legal counsel pertinent to the annual audit. A separate work space for three to five people will be made available for the Auditor in close proximity to the accounting records. Additional space will be provided as needed. VII. TERMINATION OF THE CONTRACT A. For Cause If through any cause, the Auditor shall fail to fulfill in a timely and proper manner the obligations under this Contract, the City shall have the right to terminate this Contract by specifying the date of termination in written notice to the Auditor at least 30 working days before the termination date, or at City's option, adjust billings as discussed in Section V.C. In this event, the Auditor shall be entitled to just and equitable compensation for any satisfactory work completed. Page 5 B. Termination by Either Party This Contract may be terminated by either party by giving written notice to the other party no later than 30 working days before the termination date. In this event, the Auditor shall be entitled to just and equitable compensation for any satisfactory work completed. VIII. CONFLICT OF INTEREST No elected official or employee of the City who exercises any responsibilities in the review, approval, or carrying out of this Contract shall participate in any decision relating to this Contract which affects his or her direct or indirect personal or financial interest. IX. COMPLETENESS OF THE CONTRACT This document contains all terms and conditions of this Contract, and any alteration shall be invalid unless made in writing, signed by both parties, and incorporated as an amendment to this Contract. There are no understandings, representations, or agreements, written or oral, other than those incorporated herein. IN WITNESS WHEREOF, the parties have signed this Contract as of the day and year first above written and agree to its terms. City of Wichita Falls By: Mayor By: City Manager Auditor Title: ATTEST: Vernal L. Huffines, C.P.A. - Shareholder Texas Certificate #6930, dated February 3, 1965 Educational Background Graduate of Midwestern State University, Wichita Falls, Texas, with B.B.A. , major in Accounting. Continuous professional education courses each year since 1965, exceeding forty hours each year. Continuing education courses have been sponsored by the American Institute of Certified Public Accountants, and the Texas Society of Certified Public Accountants. Member of American Institute of Certified Public Accountants, and Texas Society of Certified Public Accountants. Professional Background Twenty-eight years experience in public accounting, including all types of commercial and public accounts. Well known statewide for years of dedicated public service to the accounting profession. Currently serving a two-year term on the Executive Committee of the Texas Society of Certified Public Accountants (TSCPA) , Chairman of the Committee on Services Public Officials, and Committee member of the Committee on Nominations, Mid-Year Board Meeting Committee, and the 1979 and 1991 Annual Meeting • Committee. Currently very active in volunteer activities guiding the accounting profession in Texas, including: Coordinating officer of the TSCPA Communications Council, TSCPA Public Practice Council, TSCPA State Board of Directors, and member of the Southwest Practice Management Group. Activities include managerial and operational planning, budgeting, financial planning, and auditing for both profit and not-for-profit organizations, including the following: City of Wichita Falls, Texas First Baptist Church; Wichita Falls, Texas Wichita Falls Independent School District; Wichita Falls, Texas Nocona Independent School District; Nocona, Texas Byers Independent School District; Byers, Texas Olney Independent School District; Olney, Texas Midway Independent School District; Midway, Texas Bellevue Independent School District; Bellevue, Texas Washex Machinery Corporation; Wichita Falls, Texas First National Bank; Burkburnett, Texas Texas Bank and Trust; Wichita Falls, Texas The Hardin Foundation for Wichita County and Hardin Fund II; Wichita Falls, Texas Section 8 Housing Program (HUD) ; Wichita Falls, Texas Wichita Falls Community Mental Health and Mental Retardation Center; Wichita Falls, Texas Wichita County Chapter, American Red Cross; Wichita Falls, Texas Non-Appropriated Funds, United States Air Force; Sheppard Air Force Base, Texas Texas State Department of Public Welfare funded local aid programs; Wichita Falls, Texas v Charles P. Salter, III, c.P.A. - Shareholder Texas Certificate #14288, dated March 24, 1975 Louisiana Certificate #B-15639, dated July 31, 1981 Oklahoma Certificate #11052-R, dated October 22, 1990 Educational Background B.B.A., major in Accounting, University of Texas at Austin. Has attended on a regular basis approximately 40 to 50 hours per year of professional seminars sponsored by the American Institute of Certified Public Accountants and the Texas society of certified Public Accountants. Has received the Certificate of Educational Achievement in Governmental Accounting and Auditing. Member of American Institute of certified Public Accountants, Texas Society of Certified Public Accountants, the Government Finance officers Association, and the Texas Association of School Business Officials. Professional Background Has had eighteen years experience with two years of public accounting with a large national firm and sixteen years experience with a large local firm. Has had extensive field audit, supervisory, and in-charge experience on the following audits: City of Wichita Falls, Texas Wichita County, Texas Clay County, Texas Montague County, Texas Region IX Education Service Center; Wichita Falls, Texas City of Electra, Texas City of Jacksboro, Texas City of Saint Jo, Texas City of Dallas, Texas City of Mesquite, Texas City of Bellevue, Texas Midwestern State University; Wichita Falls, Texas Wichita Falls Independent School District; Wichita Falls, Texas Burkburnett Independent School District; Burkburnett, Texas Olney Independent School District; Olney, Texas Windthorst Independent School District; Windthorst, Texas Nocona Independent School District; Nocona, Texas Newcastle Independent School District; Newcastle, Texas Electra Independent School District; Electra, Texas Saint Jo Independent School District; Saint Jo, Texas Byers Independent School District; Byers, Texas Megargel Independent School District; Megargel, Texas Petrolia Independent School District; Petrolia, Texas Era Independent School District; Era, Texas Bellevue Independent School District; Bellevue, Texas Midway Independent School District; Midway, Texas The Housing Authority of the City of Wichita Falls; Wichita Falls, Texas Charles P. Salter, III, C.P.A. - Shareholder Professional Background (Cont,d. ) The North Central Texas Medical Foundation; Wichita Falls, Texas Wichita Falls Family Practice Residency Program; Wichita Falls, Texas Wilson Family Planning Clinic; Wichita Falls, Texas Catholic charities - Diocese of Fort worth; Fort Worth, Texas New Orleans Baptist Theological Seminary; New Orleans, Louisiana New Orleans Baptist Seminary Foundation; New Orleans, Louisiana Providence Housing Corporation; New Orleans, Louisiana First Baptist Church; Wichita Falls, Texas Fairway Baptist Church; Wichita Falls, Texas Lockney General Hospital; Lockney, Texas Wichita Falls Retirement Foundation; Wichita Falls, Texas Area Senior Citizens Center for Nortex Regional Planning Commission; Wichita Falls, Texas National Defense Student Loan Program, Vogue Beauty College; Wichita Falls, Texas Basic Educational Opportunity Grant Program, Vogue Beauty College; Wichita Falls, Texas Secondary Educational Opportunity Grant Program, Vogue Beauty College; Wichita Falls, Texas Bowie Memorial Hospital; Bowie, Texas Nocona General Hospital; Nocona, Texas Highland General Hospital; Pampa, Texas McLean General Hospital; McLean, Texas Archer County Hospital; Archer City, Texas Throckmorton County Hospital; Throckmorton, Texas E. L. Graham Memorial Hospital; Cisco, Texas r Gary W. Sims, C.P.A. - Audit Manager Texas Certificate #31343, dated April 1, 1983 Educational Background B.B.A., major in Accounting, minor in Business Administration, Midwestern State University, Wichita Falls, Texas. Has attended various seminars on governmental accounting and auditing topics. Has received the Certificate of Educational Achievement in Governmental Accounting and Auditing. Member of the American Institute of Certified Public Accountants, the Texas Society of Certified Public Accountants, the Wichita Falls Chapter of the Texas Society of Certified Public Accountants, and the Government Finance Officers Association. Professional Background Has had twelve years of public accounting experience with large local CPA firms. Has had field audit and supervisory experience on the following audits: City of Wichita Falls, Texas Wichita County, Texas City of Electra, Texas City of Jacksboro, Texas City of Saint Jo, Texas City of Bellevue, Texas Community Development Block Grant Program; Electra, Texas Region IX Education Service Center; Wichita Falls, Texas Clay County, Texas Montague County, Texas City of Abilene, Texas Civic Abilene, Inc.; Abilene, Texas Community Development Block Grant Program; Abilene, Texas West Central Texas Municipal Water District; Abilene, Texas Boys' Club of Abilene; Abilene, Texas Abilene Girls Home, Inc.; Abilene, Texas Community Action Program of Abilene; Abilene, Texas DOE Weatherization Program; Abilene, Texas Energy Crisis Assistance Program; Abilene, Texas Headstart Program; Abilene, Texas