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
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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
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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
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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".
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• 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.
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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
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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:
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- SPECIAL REVENUE FUNDS
- Federal Revenue Sharing
- Special Purpose Accounts
- State Planning Assistance Grant
- Recreation Center Grant
- Park Facilities Grant
- Landscape Grant
- DEBT SERVICE FUNDS
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- 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.
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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
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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
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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
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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.
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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.
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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
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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
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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
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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.
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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.
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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.
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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.
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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
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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:
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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.
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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.
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CITY
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ATTEST:
CAROL A.-EVANS, CITY CLERK
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY -
CITY ATTORNEY
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WTTNES�-F \
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
COUNSEL TO GRANT THORNTON
Agree.Thornton
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CITY AF TAMARAC
By:
NbrN ABRAMOWITZ, MAYOR
(SEAL)
By:
T
N P. KELLY, TY MANAGER
GRANT ORN'99
By: �.
'Burt mmer, Managing Partner
Dated:
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NOTE: The Attorney for Grant Thornton
declined to sign this Agreement.