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HomeMy WebLinkAboutCity of Tamarac Resolution R-90-031Temp. Reso. #5681 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-90- A RESOLUTION AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO EXECUTE AN AGREEMENT WITH GRANT THORNTON PROVIDING FOR AN AUDIT OF THE CITY'S GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 1989, 1990 AND 1991; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: That the appropriate City officials are hereby authorized to execute an Agreement with Grant Thornton providing for an audit of the City's General Purpose Financial Statements for the Fiscal Years ending September 30, 1989, 1990 and 1991, a copy of said agreement being attached hereto as "Exhibit 1". SECTION 2: This Resolution shall become effective upon adoption. PASSED, ADOPTED AND APPROVED thisv2 day of , 1990. ATTEST: CAROL A. EVANS CITY CLERK I HEREBY CERTIFY that I have approved this RESOLUTION as to form. ALIM F. OF INTERIM CITY ATTORNEY 31 1 3 33 34 35 RECORD OF COUNCIL VOTE MAYOR ABRAMOWITZ _� DISTRICT 1: C/M R HR DISTRICT 2: C/M Siln= DISTRICT 3: C/M H P'FM N DISTRICT 4: V„ ,,, /M BEND �,,. AGREEMENT BETWEEN THE CITY OF TAMARAC, FLORIDA AND • GRANT THORNTON PROVIDING FOR AN AUDIT OF THE CITY'S GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 1989, 1990 AND 1991 r� f.T0145fv�" BETWEEN THE CITY OF TAMARAC, FLORIDA AND GRANT THORNTON PROVIDING FOR AN AUDIT OF THE CITY'S GENERAL PURPOSE FINANCIAL STATEMENTS FOR FISCAL YEARS ENDING SEPTEMBER 30, 1989, 1990 AND 1991 0 This is an agreement between: THE CITY OF TAMARAC, FLORIDA, its successors and assigns, hereinafter referred to as the "CITY", GRANT THORNTON, doing business or authorized to do business in the State of Florida hereinafter referred to as "AUDITOR". 2 0 ie-�o - 31 • GENERAL In order to establish the background, context and frame of reference for this Agreement and to generally express the objectives and intentions of the respective parties herein, the following statements, representations and explanations are predicates for the undertakings and commitments included with the provisions which follow and shall be construed as essential elements of the mutual considerations upon which the Agreement is based. 1.1 Florida Statutes Chapter 11.45 provides that if by July 1 in any fiscal year a local governmental entity has not been notified that a financial audit for the fiscal year will be performed by the Auditor General, each munici- pality with either revenues or expenditures of more than $100,000 shall require that an annual financial audit of its accounts and records be completed, within 12 months after the end of its respective fiscal year, by an independent certified public accountant retained by it and paid from its public funds. 0 3 jC_qo- 31 is 1.2 The CITY's revenues and expenditures for the fiscal year ending September 30, 1989 and thereafter will exceed $100,000. 1.3 In anticipation that the Auditor General will not perform a financial audit for the fiscal year ending September 30, 1989, the CXTY hereby appoints the AUDITOR to conduct an examination of the CITY's general purpose financial statements for the fiscal year ending September 30, 1989 for the purpose of expressing an opinion on the fairness with which such statements present financial position, results of operations, and 0 changes in financial position in conformity with generally accepted governmental accounting principles and to conduct an examination to determine whether operations are properly conducted in accordance with legal and regulatory requirements. TERM AND AUDIT PERIOD 2.1 Audit Period - This Agreement shall commence on the date that this instrument is fully executed by both parties. The terms of this Agreement shall be for the fiscal 4 • years ending September 30, 1989, 1990 and 1991 with an option by CITY to renew the contract for an additional two years. SCOPE OF AUDIT 3.1 Funds and Account Groups - The audit contemplated by this Agreement shall cover all funds, account groups and entities controlled by or dependent on the CITY. It is understood that the determination of "controlled by or dependent on" is based on criteria included in the National Council on Governmental Accounting Statement 3 - Defining the Governmental Reporting Entity. The scope of the audit covered by this agreement shall be the general purpose financial statements for the City. Applicable funds included within the general purpose financial statements are as follows: =e):QN15) `M;jijZ1o7 - SPECIAL REVENUE FUNDS - Federal Revenue Sharing - Special Purpose Accounts - State Planning Assistance Grant - Recreation Center Grant - Park Facilities Grant - Landscape Grant - DEBT SERVICE FUNDS • 5 e_ 90 - 3 - 1975 General Obligation Bond - 1986 General Obligation Bond -- 1987 General Obligation Bond - 1980 Fire Station Loan - CAPITAL PROJECTS FUNDS - Drainage Improvement - City Hall Construction - Police Facilities Construction - Public Service Building Construction - Parks and Recreation - Traffic Improvements - Recreation Center Construction -- ENTERPRISE FUNDS - Utilities East Fund - Utilities West Fund (including sub funds) - INTERNAL SERVICE FUNDS - Management Information Services - Central Purchasing/Stores Fleet Services Self -Insurance Vehicles (Insurance Services) • - Self -Insurance Health - Self -Insurance Workers' Compensation - TRUST AND AGENCY FUNDS - General Agency - Employees' Time Pool Bank Pension Trust Fund* (General Employees Pension Trust) (Police Officers Pension Trust) (Firefighters Pension Trust) - Deferred Compensation Fund - TREASURERS FUND - GENERAL FIXED ASSET ACCOUNT GROUP - GENERAL LONG-TERM DEBT ACCOUNT GROUP *The City's Pension Trust Funds will have to be audited for PERS requirements (separate financial reports) by firm selected by Pension Board. Their working papers, schedules, correspondence, etc. will be made available for City auditors review. 6 0 C1 e-5a-3 3.2 Audit Standards - Unless higher standards are set forth elsewhere in this Agreement, the audit shall be conducted in accordance with (a) generally accepted auditing standards as promulgated by the American Institute of Certified Public Accountants (AICPA) including the AICPA's Industry Audit Guide, Audits of State and Local Governmental Units, (b) Government Audit Standards (excluding the review of economy and efficiency of operations and program results) as published by the Comptroller General of the United States, (c) Chapter 11.45, Florida Statutes and Rules of the Auditor General, State of Florida, Chapter 10.550 and, (d) OMB Circular A-128 (the Single Audit Act of 1984), as applicable. 3.3 Reports - The CITY management recognizes that they are responsible for the fair presentation of the CITY's Comprehensive Annual Financial Report (CAFR). The AUDITOR shall provide advice and consultation on the application of statements and rules of the Governmental Accounting Standards Board, NCGA, the Auditor General of the State of Florida, Government Finance Officers Asso- ciation (GFOA) as applicable to the Certificate of Achievement for Excellence in Financial Reporting and • 7 4- 96 - 3 l other authoritative bodies in the preparation of the • CITY's CAFR and, unless unusual conditions not now foreseen make it impracticable to do so, shall render an opinion on the fairness with which the general purpose financial statements present the financial position of the CITY at September 30, 1989, 1990 and 1991 and the results of operations and changes in financial position for the years then ending in accordance with generally accepted accounting principles and an "in relation to" opinion on the combining and individual funds and supplementary schedules. In addition to the opinion on the general purpose finan- 0 cial statements, the AUDITOR shall also render reports on the following matters: - Report on internal accounting controls and -other matters based solely on a study and evaluation made as part of the examination of the general purpose finan- cial statements. -- Report on compliance based on the examination of the general purpose financial statements performed in accordance with the standards for audit issued by the 8 e �o - 31 0 U.S. General Accounting Office. - Report on compliance with laws and regulations related to major or nonmaJor federal financial assistance programs, if applicable. - Report on supplementary information schedule of federal financial assistance, if applicable. - Report on internal controls (accounting and admini- strative) based on a study and evaluation made as a part of the examination of the General Purpose 0 Financial Statements and the additional tests required by the Single Audit Act of 1984, if applicable. 3.4 Number of Reports - AUDITOR agrees to provide fifty (50) reports to be bound and delivered to CITY. 3.5 Printing and Binding - AUDITOR agrees to provide print- ing and binding of reports. 3.6 Irregularities - Should irregularities or other unfore- seeable conditions for the CITY be encountered which might necessitate the extension of the auditing work 0 9 e- �G_3f beyond the scope of normal auditing procedures, the AUDITOR agrees to advise the CITY COUNCIL in writing of the circumstances and the estimated additional audit time and fees required to resolve the condition. 3.7 Illegal Acts - It is recognized by the CITY and the AUDITOR that an audit conducted in accordance with generally accepted auditing standards is not specific- ally or primarily designed to assure the discovery of fraud, defalcations or illegal acts, although their discovery may result. The AUDITOR agrees to immediately notify the CITY COUNCIL if any such matters are dis- covered. Any additional audit work requested by the COUNCIL in connection with further investigation of such acts shall be deemed to be extra work or additional services under paragraph 6.1 of this Agreement. • 10 0 C� • 0 COMPLETION OF WORK 4.1 Assignment Timing and Deliverables SCHEDULE MEETINGS Late June Formal entrance conference to Early with management to discuss July scheduling, audit approach, preliminary audit work plan, and any new developments. Mid to Preliminary field work -- Late July informal "touch base" meetings with operating personnel and management to gather information and discuss the progress of the engagement. Mid -August Formal meeting with manage - to Mid- ment to review the audit September planning memorandum, including client prepared schedules, and to discuss in detail what has been accomplished to date, and what remains to be done during the year --end field work. e- 20 DELIVERABLES - Preliminary Work Schedule - Preliminary Audit Work Plan - None - Audit Status Memorandum Mid- Year-end field work -- -- None October informal progress sessions to Early with management to discuss December the status of the audit work and financial statements. Mid- Exit conference with - Draft of Auditors December affected department heads, Reports the City Manager, and the - Draft of Manage - Finance Director to review ment and drafts of the financial Internal Control 11 e-�o-31 statements, management and Letter internal control letter and to resolve any outstanding matters. Early None - Final Auditors' to Mid-- Reports January - Management and Internal Control Letter Mid- to Presentation of reports to - None Late City Council January 4.2 CITY Closing Date -- The CITY shall close its books and records and provide to the AUDITOR general ledger trial balances of all funds and account groups and supporting schedules by the 15th day of November, each year. It is • recognized by the parties that the AUDITOR will need a minimum of 65 working days after receipt of such supporting schedules to complete the audit. Should the CITY fail to provide such schedules to the AUDITOR on the required date, the AUDITOR shall be granted an extension of time equal to the number of days after November 15th that such schedules are delivered by the CITY to the AUDITOR. The CITY commits that all general ledger accounts will be properly analyzed and reconciled, all bank accounts will be reconciled and balanced to the general ledger 12 ie,�0^5( 0 accounts and that all funds will be balanced and closed. The CITY commits to prepare all schedules necessary for the audit, including consolidation of funds, detail fund trial balances, lead schedules and account analyses. The City further commits to prepare the Comprehensive Annual Financial Report for submission to the GFOA's Certificate of Achievement for Excellence in Financial Reporting Program and the Annual Report required by the State of Florida. 4.3 Resolution of Audit Comments - At the conclusion of the audit field work, the AUDITOR shall make a reasonable 0 effort to discuss with the CITY Manager and Finance Director or their designees all of the proposed comments which may appear in the audit report. Written statement of explanation or rebuttal concerning the AUDITOR's comments, including corrective action to be taken, shall be filed with the governing body of the CITY and with the Auditor General within thirty (30) days of the delivery of the financial audit report. 4.4 Oral Presentation by Auditor - No later than thirty (30) days after delivery of the audit report, the AUDITOR 0 13 ,(-20-31 shall attend a public meeting with the CITY COUNCIL to . discuss any recommendations on internal control or operational improvements arising out of the conduct of the audit. WORKING PAPERS 5.1 Retention of Working Papers - For a period of six (6) years after completion of any work provided for herein, the AUDITOR shall make its working papers, records, and other evidence and documents relating to such work available for inspection and copying by the CITY and by . the auditors retained by the CITY who succeed the AUDITOR to the extent necessary to support the balances set forth in the financial statements on which the AUDITOR has reported. No reports, information, or data given to or prepared by the AUDITOR shall be made avail- able to any individual or organization without prior written approval of the City. Any copying done shall be at the expense of the copying party. Other requests for access to such documents will be considered by the AUDITOR, but the AUDITOR has no obligation to grant them. 14 11 e-` 0-31 EXTRA WORK OR ADDITIONAL SERVICES 6.1 Extra work -- The AUDITOR, upon receipt of a written request from the CITY shall perform such additional auditing or other professional services as may be requested. This may include a review of the efficiency and economy of operations, systems of internal control, operating and management procedures and effectiveness in achieving program results. The purchase of specialized services or extra audit work shall require submission of a written proposal by the AUDITOR for agreement and • approval by the CITY. Such work shall be covered by separate purchase orders. 6.2 Compensation For Extra Work - Compensation to the AUDITOR for extra auditing services shall be based upon the hourly rates provided in Paragraph 7.2 and shall be subject to other payment provisions of Paragraph 7.3 and 7.4. 0 15 X 20-31 r _1 LJ COMPENSATION 7.1 Audit Fee - The basic audit fee for the services defined in Section 3 of this Agreement shall be based on the lessor of (a) the actual time required at the AUDITOR's standard billing rates for the level of personnel providing the service or (b) the following fees: 1989 - $31,000, 1990 - $32,500, and 1991 - $34,800 (a total of $98,300 for three years). out-of-pocket costs, such as travel, per diem, telephone, etc. shall not be billable to the CITY as a part of either category (a) or (b) unless incurred at the specific request of the CITY. 0 Audit fees shall be adjusted upward or downward, as the case may be, for services performed or not performed in connection with any additional funds or any deleted funds from those generic fund types defined in Paragraph 3.1, or any significant changes to such generic fund types. The AUDITOR shall submit a written estimate of any fee adjustment to the CITY COUNCIL within 30 days after any such change becomes known by the AUDITOR. Any adjustment to the basic audit -fee shall be mutually agreed upon, in writing, by the parties to this agree- ment. 16 0 0 f,-,�a-31 7.2 Fees For Extra Work or Additional Services - The follow- ing schedule of hourly fees shall apply to all extra work or additional services: These rates are effective through July 31, 1990. Partner $190 per hour Manager $150 per hour Computer Audit Specialist $125 per hour Senior $ 95 per hour Staff $ 55 per hour Secretarial $ 50 per hour Based on the nature of auditing special projects and the time of year, AUDITOR agrees to negotiate fees subject to arrangements made at the time requested. 7.3 Billings -- The AUDITOR shall submit to the CITY a monthly invoice for fees incurred during the preceding month attributable to the audit or special services provided. The billing shall allocate the costs to the appropriate fund applicable. 7.4 Payment Terms - The CITY agrees to promptly process each monthly statement received from AUDITOR, and shall make its best effort to remit billings within thirty (30) days of receipt of AUDITOR's monthly statement. 0 17 9-- 0-31 • INSURANCE 8.1 The AUDITOR shall provide for and maintain in force at all times during the period of service to the CITY such insurance, including workers' compensation, employers' liability, comprehensive general liability and profes- sional liability as required by law and as normally carried by the AUDITOR. TERMINATION 0 9.1 All notices required hereunder shall be by first class mail, except that any Notice of Termination shll be mailed via U.S. mail, return receipt requested and any notice required hereunder shall be addressed to the party intended to receive same at the following addresses: 18 0 1� -qa -31 0 CITY City Manager City of Tamarac 7525 Northwest 88th Avenue Tamarac, Florida 33321 AUDITOR Grant Thornton Suite 1100 Broward Financial Centre 500 East Broward Boulevard Fort Lauderdale, Florida 33394-3095 9.2 Termination of Services - It is understood and agreed that should the AUDITOR fail to fulfill in a timely and proper manner the obligations agreed to herein, the CITY shall have the right to terminate its contract by • specifying the date of termination in a written notice to the AUDITOR at least thirty (30) working days before the termination date. AUDITOR shall be compensated through the date of termination based on the hours incurred at the AUDITOR's billing rates stated in Paragraph 7.2, or the pro-rata amount of work compared to the fee set forth in Paragraph 7.1, whichever is lower. 0 19 6-?0-31 The AUDITOR shall have the right to terminate this • Agreement by giving written notice to the CITY not later than 120 days before the end of the next fiscal year. ASSIGNMENT 10.1 Assignment of Work - This Agreement, or any interest herein, shall not be assigned, transferred or otherwise encumbered, under any circumstances by AUDITOR without prior written consent of the CITY. However, the Agreement shall run to the CITY and to any of its . successors. EXECUTION 11.1 This document shall be executed in two (2) counterparts, each of which shall be deemed an original. IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the respective dates under each signature. 20 CITY L ATTEST: CAROL A.-EVANS, CITY CLERK APPROVED AS TO FORM AND LEGAL SUFFICIENCY - CITY ATTORNEY r 1 LJ [011JWXN�Y.[�h7 WTTNES�-F \ APPROVED AS TO FORM AND LEGAL SUFFICIENCY: COUNSEL TO GRANT THORNTON Agree.Thornton 0 CITY AF TAMARAC By: NbrN ABRAMOWITZ, MAYOR (SEAL) By: T N P. KELLY, TY MANAGER GRANT ORN'99 By: �. 'Burt mmer, Managing Partner Dated: 21 NOTE: The Attorney for Grant Thornton declined to sign this Agreement.