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AMENDMENT NO. 1 TO
CITY SECRETARY CONTRACT NO. 46774
INDEPENDENT AUDIT ENGAGEMENT
Deloitte & Touche,L.L.P.
This Amendment is made and entered into by and between the CITY OF FORT
WORTH (the "City"), a Texas home-rule municipal corporation, acting by and through its duly
authorized Assistant City Manager, and Deloitte & Touche, L.L.P. ("D&T"), a limited liability
partnership, acting by and through its duly authorized Officer, each individually referred to
herein as a"party" and collectively referred to as the "parties".
WHEREAS, the parties have previously entered into City of Fort Worth City Secretary
Contract No. 46774 (the "Contract"), which was executed on the May 19, 2015; and
WHEREAS, the Contract provides the City with professional auditing services for the
independent audit for Fiscal Year 2015 in conjunction with the completion and publication of the
Comprehensive Annual Financial Report (CAFR); and
WHEREAS, the City and D&T now wish to amend the original Contract to increase the
estimated total cost of the contract amount by Fifty-One Thousand Dollars ($51,000.00).
NOW, THEREFORE, City and D&T, acting herein by and through their duly
authorized representatives, enter into the following agreement to amend the contract as follows:
1.
Fees. The estimated total cost of the services included in the engagement letter will be based on
personnel assigned and actual hours incurred, plus expenses. Based on the anticipated levels of
participation, the estimate of blended hourly rates, audit hours, and total costs for the City's basic
financial statements for fiscal year 2015 shall not exceed One Million Four Hundred Forty-Five
Thousand Four Hundred Dollars ($1,445,400.00).
2.
All other provisions of the Contract which are not expressly amended herein shall remain
in full force and effect.
Signature Page to Follow
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Executed on this the 14—day of , 20,�*
CITY OF FORT WORTH: DELOITTE & TOUCHE,L.L.P.
By: By:
-C-g-m 2ataina
S san lams Deloitte & Touche, L.L.P.
Assistant City Manager RtEM sfrMR A
Date: Date: U G4 & 0 «n
APPROVAL RECOMMENDED:
By: 461—/sf�
�Aaro B vos
Chief Financial Officer
ATTE : 'F®R�'
By:
M yser V
City Secretary $n 8
APPROVED AS TO FORM AND LE
By:
Guillermo (Will) S. Trevino
Assistant City Attorney
Contract Authorization:
M&C: C-24442,Approved 9/14/2010
P-11755 Approved 5/19/2015
P-1 1 95b,Approved 6/28/2016
1295 Form Certification: 2016-56917
Amendment No. 1 to CSC No.46774 OFFICIAL RECORD
Page 2 of 2 CITY SECRETARY
FT. WORTH, TX
M&C Review Page I of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FORT TIi
COUNCIL ACTION: Approved on 6/28/2016
DATE: 6/28/2016 REFERENCE **P-11890 LOG NAME: 13P15-0173AMEND AUDIT
NO.: SERVICES MJ FMS
CODE: P TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Execution of Amendment in an Amount Up to $51,000.00 to City Secretary
Contract No. 46774 with Deloitte & Touche, L.L.P., for the Independent Audit Services for
Fiscal Year 2015 in Conjunction with the Completion and Publication of the Comprehensive
Annual Financial Report Increasing the Annual Contract Amount Up to $1,445,400.00 (ALL
COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize an amendment in the amount of$51,000.00 to City
Secretary Contract No. 46774 with Deloitte & Touche, L.L.P., for the Independent Audit Services for
Fiscal Year 2015 in conjunction with the Completion and Publication of the Comprehensive Annual
Financial Report, increasing the annual contract amount up to $1,445,400.00.
DISCUSSION:
Deloitte & Touche, L.L.P. (Deloitte & Touche) was awarded a contract for financial audit services in
September 2010 (RFP 10-0401, M&C C-2442). On May 19, 2015, Council authorized audit services
for Fiscal Year 2015 (M&C P-11755) in conjunction with the completion and publication of the
Comprehensive Annual Financial Report. This Agreement enabled Deloitte & Touche to continue
services through conclusion of the audit for Fiscal Year 2015 in order to provide continuity during
implementation of our Enterprise Resource Planning software system. The audit has consisted of
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements. The audit has also included the City's compliance with certain provisions of
laws, regulations, contracts, and grant management.
The current contract amount of$1,394,400.00 is no longer sufficient to meet the needs described
above. Staff is recommending an increase of$51,000.00 to allow for completion of needed tasks and
assist the City with issues that arises throughout the year.
M/WBE Office- Deloitte & Touche is in compliance with the City's M/WBE Ordinance by committing
to an additional 22 percent M/WBE participation on this Amendment No. 1.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations, funds will be
available within the current operating budget of the General Fund. The funds will be transferred from
the Non-Departmental budget to the Financial Management Services Department through the use of
delegated authority.
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M&C Review Page 2 of 2
BQN\\
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID I I ID Year Chartfield 2
10100 1 09055005330500 $51,000.00
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID I I ID I I I Year (Chartfield 2)
10100 1 0132050 1 5330500 1 1 1 1 $51,000.00
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Jack Dale (8357)
Marilyn Jackson (2059)
ATTACHMENTS
Deloitte Touche LLP Form1295.pdf
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=22341&councildate=6/28/2016 7/9/2016
CERTIFICATE OF INTERESTED PARTIES FORM 1295
1 Of 1
Complete NOS.1-4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos.1.2.3,5,and.6 ifthere,are no interested parties. CERTIFICATION OF FILING
I Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number
of business. 2016-56917
Deloitte&Touche LLP
Dallas,TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 05/1712016
being filed.
City of Fort Worth Date Acknowledged:
3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,and provide a
description of the services,goods,or other property to be provided under the contract.
10-0401
Contract Amendment
4 Nature ofinterest
Name of Interested Party City,State,Country(place of business) (check applicable)
Controlling I intermediary
Samra,Reem Dallas,TX United States X.
5 Check only it there is NO Interested Party. ❑
6 AFFIDAVIT i swear,or affirm,under penahy of perjury.that the above disclosure is true and correct.
i�MARY P. ROANE ;
`�°•:,��r�`t+ Nofa;yPublic.StoteofTexos
2 ;�^•+?�COMM,Expires 05-23-20 t 13
_ '--.��,�•�.� Signature of authorized went bf contracting business entity
Notary ID 4511415
AFFIX NOTARY STAMP!'SEAL ABOVE
Swam to and subscribed before me,by the said ���' this the 4Q __,day of
20 to .to certify which,witness my hand and seal of office.
Signature er administering oath Printed nagie of officer administering oath Y of officer administering oath
Forms provided by Texas Ethics Commission www.ethicsstate.tx.us Version V1_0.1021
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FORT
COUNCIL ACTION: Approved on 5/19/2015
DATE: 5/19/2015 REFERENCE NO.: P-11755 LOG NAME: 13P15-0173 AUDIT
SERVICES DB
CODE: P TYPE: NON- PUBLIC CONSENT HEARING: NO
SUBJECT: Authorize Agreement with Deloitte & Touche LLP, in an Amount Up to $1,394,400.00 for
Independent Audit Services for Fiscal Year 2015 in Conjunction with the Completion and
Publication of the Comprehensive Annual Financial Report (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize an Agreement with Deloitte & Touche LLP, in an
amount up to $1,394,400.00 for independent audit services for Fiscal Year 2015 in conjunction with
the completion and publication of the Comprehensive Annual Financial Report.
DISCUSSION:
On September 14, 2010, the City Council awarded a contract for financial audit services to Deloitte &
Touche LLP (D&T) for one year with four options to renew, which included the audit for Fiscal Year
(FY) 2014 (M&C C-24442). The City's Financial Management Services Department will use the
Agreement proposed in this action to continue services through conclusion of the audit for FY 2015 in
order to provide continuinity during implementation of our Enterprise Resource Planning software
system. Under the proposed Agreement, D&T will be required to perform in accordance with
generally accepted auditing standards, the standards applicable to financial audits and the U.S.
Office of Management and Budget (OMB) Circular A-133 Compliance Supplement (OMB Circular A-
133).
The audit will include evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements. The audit will also include tests of the City's
compliance with certain provisions of laws, regulations, contracts and grant management.
In addition to the audit services, D&T will assist the City with issues that arise throughout the year.
PRICE ANALYSIS -The price offered by D&T is 9.7 percent higher compared to the price for the
contract awarded in September 2010 (M&C C-24442). The price increase is attributed to additional
hours for audit services. Staff reviewed the prices and determined the prices to be fair and
reasonable.
M/WBE - Deloitte & Touche LLP is in compliance with the City's M/WBE Ordinance by committing to
15 percent M/WBE participation on this Agreement. The City's M/WBE goal for this Agreement is 15
percent.
ADMINISTRATIVE CHANGE ORDER -An administrative change order or increase may be made by
the City Manager in an amount of up to $50,000.00 and does not require specific City Council
approval as long as sufficient funds have been appropriated.
AGREEMENT TERMS - Upon City Council approval, the contract will begin upon execution and
expire on completion of the 2015 audit, unless terminated earlier in accordance with its terms.
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'M&C Review Page 2 of 2
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that upon approval of this recommendation, the
execution of the contract noted above will have no material effect on the Fiscal Year (FY) 2015
budget. While no current year impact is anticipated from this action, funds will be requested in FY
2016 General Fund budget for this contractual obligation and prior to any expenditures being made,
the Financial Management Services Department has the responsibility to validate the availability of
funds.
BQN\15-0173\DB
TO Fund/Account/Centers FROM Fund/Account;Centers
GG01 531200 0101000 $1,394,400.00
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Jack Dale (8357)
Additional Information Contact: Doris Brent (2058)
ATTACHMENTS
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=20974&councildate=5/19/2015 7/9/2016
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FOR R it
COUNCIL ACTION: Approved on 9/14/2010
DATE: 9/14/2010 REFERENCE NO.: C-24442 LOG NAME: 13P10-0401 AUDIT
SERVICES MJ
CODE: C TYPE: NOW PUBLIC CONSENT HEARING: NO
SUBJECT: Authorize a One-Year Contract in an Amount Up to $1,051,200.00 with Deloitte and
Touche, LLP, for Independent Audit Services for Fiscal Year 2010 Comprehensive
Annual Financial Report and Single Audits with Options to Renew the Contract for Up to
Four One-Year Periods
RECOMMENDATION:
It is recommended that the City Council authorize a one-year contract in an initial amount up to
$1,051,200.00 with Deloitte and Touche, LLP, for independent audit services for Fiscal Year 2010
Comprehensive Annual Financial Report and Single Audits with options to renew the contract for up to four
one-year periods.
DISCUSSION:
The City of Fort Worth (City) Internal Audit Department will use the professional services agreement with
Deloitte & Touche LLP (D&T) to serve as independent auditors for the City's financial statements to ensure
conformity with generally accepted accounting principles. D&T will examine the City's compliance with
procedures established by the City Charter and City Ordinances. D&T will also perform certain limited
procedures involving required supplementary information by the Governmental Accounting Standards
Board (GASB) as mandated by generally accepted auditing standards as set forth by the American Institute
of Certified Public Accountants and Government Auditing Standards.
The Purchasing Division issued a Request for Proposals (RFP) on April 7, 2010 soliciting qualified firms of
certified public accountant firms to audit the City's financial statements for Fiscal Years 2010, 2011, 2012,
2013 and 2014. The evaluation factors included past experience and performance on comparable
government engagements, specific implementation of GASB Statement No. 34, the quality of the firms'
professional personnel to be assigned to the engagement, the quality of personnel to be available for
technical consultation, the adequacy of the firms' proposed staffing plan, sampling techniques, analytical
procedures to be used on the engagement, contract costs, and M/WBE participation.
An evaluation panel was made up of representatives from the Financial Management Services Department
and the Internal Audit Department. Five proposals were received in response to the RFP. Proposals were
received from BKD LLP, Deloitte & Touche, LLP, Grant Thornton, KPMG LLP and Weaver and Tidwell
LLP. The recommended service provider, Deloitte&Touche LLP, was deemed the most qualified to
perform the services. The recommendation was presented to the Audit and Finance Advisory Committee on
July 28, 2010. The committee is in favor of this action.
ADVERTISEMENT -This RFP was advertised in the Fort Worth Star-Telegram on April 7, 2010, April 14,
2010, April 21, 2010 and April 28, 2010.
PRICE ANALYSIS - Fees under the recommended agreement are approximately 8.5 percent less than
those under the 2009 Agreement due to a reduction of estimated hours. Estimated hours decreased due to
the City's improved internal controls. Prices for each year's audit are estimated as follows:
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M&C Review Page 2 of 2
Year Estimated Initial Estimated Estimated Total
Cost Contingency Cost
Funds
2010 $988,000.00 $63,200.00 $1,051,200.00
2011 $1,041,200.00 $60,000.00 $1,101,200.00
2012 $1,086,800.00 $60,000.00 $1,146,800.00
2013 $1,140,000.00 $60,000.00 $1,200,000.00
2014 $1,200,800.00 $50,000.00 $1,250,800.00
5 Year Total $5,456,800.00 $293,200.00 $5,750,000.00
ESTIMATED CONTINGENCY FUNDS—The estimated contingency fund dollars are based upon 450—480
additional audit hours for unanticipated issues that may arise.
AGREEMENT TERMS - Upon City Council's approval, the Agreement will begin upon execution and expire
September 30, 2011, unless terminated earlier in accordance with its terms.
RENEWAL OPTIONS -This Agreement may be renewed for up to four successive one-year terms at an
annual amount not to exceed $1,250,800.00 for each renewal year. This action does not require specific
City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's
obligation during each renewal term.
M/WBE - Deloitte and Touche, LLP, is in compliance with the City's M/WBE Ordinance by committing to 15
percent M/WBE participation. The City's goal on this project is 15 percent.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the General Fund. The Financial Management Services Director also certifies
that funds will be included in the City Manager's Proposed 2010-2011 Budget of the General Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
GG01 531200 0101000 $1,051,200.00
Submitted for City Manager's Office by: Karen Montgomery (6222)
Originating Department Head: Darlene Allen (6132)
Additional Information Contact: Jack Dale (8357)
Marilyn Jackson (2059)
ATTACHMENTS
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=13916&councildate=9/14/2010 7/9/2016