HomeMy WebLinkAboutOrdinance 17585-06-2007Ordinance No. 17585-06-2007
AN ORDINANCE INCREASING APPROPRIATIONS IN THE GENERAL FUND IN
THE AMOUNT OF $453,000 AND DECREASING THE UNRESERVED,
UNDESIGNATED FUND BALANCE BY THE SAME AMOUNT, FOR THE
PURPOSE OF FUNDING FISCAL YEAR 2006 FINANCIAL AUDITING SERVICES
WITH DELOITTE & TOUCHE, LLP FOR THE FINANCE DEPARTMENT;
PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES IN CONFLICT HEREWITH; AND
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2006-
2007 in the Budget of the City Manager, there shall also be increased appropriations in the General
Fund in the amount of $453,000 and decreasing the unreserved, undesignated fund balance by the
same amount, for the purpose of funding Fiscal Year 2006 financial auditing services with Deloitte &
Touche, LLP, for the Finance Department.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid,
inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or
judgment shall in no way impair the remaining portions, sections, or parts of sections of this
ordinance, which said remaining provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 17142 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance
are in direct conflict with such other ordinances and appropriations, in which instance said
conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
ADOPTED AND EFFECTIVE: June 5 2007
Cit~r ®f F®rt W®rfh, 7°exas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/5/2007 -Ordinance No. 17585-06-2007
-.
DATE: Tuesday, June 05, 2007
LOG NAME: 13REVFY06AUD REFERENCE NO.: G-15746
SUBJECT:
Authorize Increased Fee and Execution of Engagement Letter with Deloitte &Touche, LLP, for
FY2006 Financial Audit Services and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached supplemental appropriation ordinance increasing appropriations in the General Fund
in the amount of $453,000 and decreasing the unreserved, undesignated fund balance by the same
amount;
2. Authorize the City Manager to execute an engagement letter with Deloitte &Touche, LLP for the FY2006
Audit; and
3. Authorize an additional $453,000 for independent auditing services by Deloitte &Touche, LLP for the
Fiscal Year 2006 Single Audit and Comprehensive Annual Financial Report, making the total estimated fee
for the FY2006 Audit $785,000.
DISCUSSION:
The purpose of this Mayor and Council Communication is to authorize execution of the FY2006
engagement letter and additional appropriations for independent audit services to be provided by the
external auditor, Deloitte &Touche, LLP, for the Fiscal Year ending September 30, 2006.
On April 6, 2004, (M&C C-20025) the City Council authorized a contract for financial auditing services to
Deloitte &Touche, LLP for audits of Fiscal Years 2004-2008. The original authorized fee for the FY2006
Audit was $299,882.
Deloitte &Touche, LLP has provided a revised fee estimate of $785,000 for the FY2006 Audit. The
revised fee is an increase of $453,000 over the current budget appropriation amount of $332,000. The
revised fee estimate, is based on the auditor's experience in conducting the FY2004 and FY2005 audits.
Listed below is a summary of estimated audit and budgeted fees for the FY2006 audit by fiscal year:
Estimated FY06
Audit Fees
Fiscal Year 2006
Fiscal Year 2007
Additional Appropriation
Totals
$ 299,882
$ 485,118
$ 785,000
Budgeted FY06
Audit Fees
$ 332,000
$ 453,000
$ 785,000
Logname: 13REVFY06AUD Page 1 of 2
M/WBE: Deloitte & Touche is in compliance with the City's M/WBE Ordinance by committing to 20 percent
M/WBE participation on the total amount paid by the City to their firm for the 2006 Audit. The City's goal on
the project is 20 percent.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached supplemental appropriation ordinance, funds will be available in the current operating budget, as
appropriated, of the General Fund. Upon approval, the unaudited, unreserved, undesignated fund balance
of the General Fund will be $5,628,478, which is the amount available above the minimum reserve fund
balance of $46,895,951 required by the City's Financial Management Policy Statements (i.e., 10 percent of
the current-year adopted budget expenditures less the annual transfer from the General Fund to the Debt
Service Fund).
TO Fund/Account/Centers FROM Fund/Account/Centers
GG01 531200 0901000 $453.000.00
Submitted for City Manager's Office by: Karen Montgomery (6222)
Originating Department Head: Richard Zavala (Acting) (8313)
Additional Information Contact: Mae Gray-Rossi (8325)
Logname: 13REVFY06AUD Page 2 of 2