HomeMy WebLinkAboutContract 12879 STATE OF TEXAS GI-1-Y SEC,,ETARY
CONTRACT- No_Zj.SZ
COUNTY OF TARRANT §
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THIS AGREEMENT is entered into this + d a y of ,
A.D. , 1983, by and between the City of Fort worth, a munik-,ipal IC11-tr-
poration ( "City" ) , acting by and through Ruth Ann McKinney, its duly
authorized Assistant City Manager, and Arthur Andersen & Co. , Certi-
fied Public Accountants, ( "Auditor") , acting by and through William
B. Dillon, its duly authorized Partner.
W I T N E S S E T H :
WHEREAS, the City desires to engage the services of Auditor for
a complete audit of City' s finances for the period ending September
30, 1982, and for each year thereafter, through September 30, 1986,
as hereinafter set out; and
WHEREAS, Auditor is a properly licensed certified public
accountant, licensed on or before December 31 , 1979, and said Audi-
tor meets independence standards of the U.S. General Accounting
Office (GAO) Standards for Audit of Governmental organizations,
Programs, Activities and Functions (1481 revision) ; and
WHEREAS, the City desires that the Auditor conduct and perform
such annual audits;
NOW, THEREFORE, the parties do hereby mutually covenant and
agree as follows:
1 .
The City agrees to engage the Auditor and the Auditor hereby
agrees to perform the following services for the City's five fiscal
years ending on September 30 of 1982, 1983, 1984, 1985 and 1986:
1 .1 Auditor shall examine combined financial statements of all
funds and account groups of the City, and shall also exam-
ine the financial statements of the City transportation
system ( "Citran" ) and the City Retirement Fund. The exam-
inations will be made in accordance with the generally
accepted auditing standards as included in Statements of
Auditing Standards published by the American Institute of
Certified Public Accountants.
1 .2 Where applicable and material to the financial statements
referred to in 1 .1 , Auditor shall examine for compliance
with procedures established by Charter, ordinance and
State and Federal laws and regulations, in accordance with
the GAO Standards for Audit of Goverrduental Organizations,
Pros o rams, Activities, and Functions (1 9
81
revision) ,
the h
e
GAO Guidelines for F i nanc i al and Com 31ance Audits of Fed-
erally-Assisted Pro rams, an At ta me t P of OMB Circul ar
No- A0 2, n fom Adm i n i s tr a t i v e Re uj r em ent s for Grants-
In-Aid
to Sta te an Loc al Governments.
1 .3 Auditor shall prepare financial statements and footnotes,
and will type and print separate and additional reports
and opinions for Citran and the Retirement Fund, of which
25 copies will be furnished to the City.
2.
The City will provide services, materials and support to Audi-
tor, as follows:
2.1 City staff will use its best efforts to complete its clos-
ing including all adjustments necessary to complete the
Annual Financial Report by November 30, following the end
of each fiscal year.
2.2 City shall use its best efforts to prepare and provide a
draft of the Annual Financial Report by December 31 fol-
lowing the end of each fiscal year to Auditor. City staff
will type and print the Annual Financial Report after re-
lease by Auditor. Twenty-five (25) copies will be fur-
nished to the Auditor.
2 .3 The City accounting staff will provide the Auditor with
appropriate information, explanations, and audit schedules
requested through the Controller of Accounts.
2 .4 The City internal audit staff will provide approximately
200 hours of time to assist the Auditor in the audit each
year.
2.5 The City legal staff will provide appropriate and reason-
able legal counsel pertinent to the audit as requested by
the Auditor.
2 .6 The City will provide work space for five Auditor staff
members in close proximity to the accounting records.
2 .7 The City will provide reasonable Data Processing services
pertinent to the audit as requested by the Auditor.
3 .
In performing the services provided in Section 1 , above, Audi-
tor will adhere to the following schedule:
CA
3 .1 Auditor may comm{7�rc�eo o�r e the books are closed by
the City Staff.
3 .2 Auditor shall release the Annual Financial Report for
printing no later than thirty days from completion of the
City' s draft.
3 .3 Auditor shall submit the management letter and Citran re-
port no later than thirty days after release of the Annual
Financial report. Auditor shall provide its reports on
the Retirement Fund and (pursuant to attachment P of Cir-
cular A-102) Grant Funds, by March 31 following the City's
fiscal year.
3 .4 This audit schedule is dependent upon the City's closing
and other services and materials to be furnished by the
City. Any delay of or other departure from such services
will require a revision of the audit schedule. Any such
revision in the audit schedule will be negotiated.
4.
Records and working papers shall be maintained as follows:
4 .1 Auditor shall retain all workpapers for a minimum period
of five (5) years.
4 .2 All schedules and records prepared by the City in support
of the financial statements are the property of the City.
Copies will be made upon request for Auditor' s working
papers.
4 .3 Auditor shall make its working papers available for exami-
nation by authorized representatives of federal and state
agencies and any other audit firm which may succeed the
Auditor following the completion of this contract.
5.
Upon completion of the audit, copies of the audit reports shall
be submitted to the Mayor and City Council , with the exception of
the Retirement Fund report, which is to be addressed to the Board of
Trustees of the Retirement Fund.
5 .1 Reports of examinations of financial statements
a) must state the scope of the examination and that the
audit was performed in accordance with generally
accepted auditing standards, and
b) must include an opinion as to whether the statements
conform to generally accepted accounting principles.
5.2 Reports of compliance examinations must include a state-
ment that the examination was conducted in accordance with
applicable auditing standards.
5.3 A separate management letter is required which shall in-
clude a statement of audit findings and recommendations
affecting the financial statements, internal control ,
accounting, data processing system, legality of actions,
other instances of noncompliance with laws and regula-
tions, and any other material matters coming to Auditor's
attention during the examinations. Findings of noncompli-
ance or ineligible expenditures shall be presented in suf-
ficient detail to enable City Staff to clearly understand
the same.
6 .
City agrees to pay Auditor as compensation for the services and
report provided hereunder, a sum in the respective fiscal years not
to exceed the following:
Fiscal year 1981-82 - $78 ,000
Fiscal year 1982-83 - $81 ,000
Fiscal year 1983-84 - $84 ,000
The fee for each of the remaining two years shall be negotiated dur-
ing Fiscal Year 1983-1984.
6 .1 If during the period of this contract, the operations of
the City materially change from those existing at Septem-
ber 30, 1981 , a modification of the above fees will be
negotiated.
6 .2 Payments hereunder shall be made to Auditor on a monthly
basis following receipt by the City of Auditor's bill for
services performed during the preceding month. Invoices
shall detail work accomplished for the invoice period. No
more than one invoice per month shall be submitted. The
City shall retain fifteen percent (15%) of the total an-
nual fee until all work has been satisfactorily completed
and accepted by the City Council .
6.3 The Auditor shall provide City supplemental professional
services at no cost and in addition to the audit ser-
vices. Auditor will provide experienced personnel time
and/or professional training representing fees of approxi-
mately $10,000 over a three-year period at Auditor's nor-
mal billing rates.
6 .4 Auditor shall be available to provide assistance to City
in matters related to the examinations but not covered
under the provisions of this agreement. Such services, if
and when necessary, will be provided at rates to be
negotiated between Auditor and the City.
7 .
Auditor shall indemnify, hold harmless and defend City, its
officers, agents, servants and employees from and against any and
all damages or claims or suits for damages or fines arising out of
or in connection with Auditor' s failure to perform the services
herein in accordance with generally-accepted auditing standards.
Likewise, Auditor covenants and agrees to, and does hereby
indemnify, hold harmless and defend City, its officers, agents,
servants and employees, from and against any and all claims or suits
for property loss or damage and/or personal injuries, including
death arising out of or in connection with the performance or
attempted performance of this agreement.
8 .
Auditor shall perform all work hereunder as an independent con-
tractor, and not as an officer, agent or employee of the City. Aud-
itor shall be responsible for the acts and omissions of its offi-
cers, agents, employees, contractors and subcontractors; and the
doctrine of respondeat superior shall not apply as between City and
Auditor.
9.
Auditor shall promptly inform the City of any indication of
defalcation or other irregularities that may come to its attention
in connection with Auditor' s examinations.
10.
Auditor covenants and agrees that it shall not assign all or
any part of its rights, duties or responsibilities under this con-
tract without the prior written consent of the City.
11 .
Should any action, whether real or asserted, at law or in
equity, arise out of the terms of this agreement, venue for said
action shall lie in Tarrant County, Texas.
-4-
IN WITNESS WHEREOF, the City and Auditor have executed this
agreement the day and year first above written , in Fort Worth,
Tarrant County, Texas .
ATTEST : CITY OF FORT WORTH
ASAL
gi-ty/Secretary Ru Ann McKinney
Assistant City Manager
APPROVED AS TO FORM AND LEGALITY:
City Attorney
DATE : 3
ARTHUR ANDERSEN & CO.
1-4
William B. Dillon
Partner
APPROVED BY CITY COUNCIL
/
Cit, secrets
to
STATE OF TEXAS
COUNTY OF TARRANT §
BEFORE ME , the undersigned authority, a Notary Public in and
for the State of Texas on this day personally appeared Ruth Ann
McKinney, known to me to be the person whose name is subscribed
to the foregoing instrument, and acknowledged to me that the same
was the act of the City of Fort Worth and that she executed the
same as the act of said City of Fort Worth for the purposes and
consideration therein expressed and in the capacity therein
stated.
GIVEN UNDER MY HAND AND ffL OF OFFICE, this ? day of
A.D. , 19
Nota Public in and for
the State of Texas
'YLVIA GLOIMP, Notary Publia
buy CoxnniLaiou Expired Suuai 2& j$_0A
STATE OF TEXAS S
COUNTY OF TARRANT §
BEFORE ME , the undersigned authority, a Notary Public in and
for Tarrant County, Texas, on this day personally appeared
William B. Dillon, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me
that he executed the same for the purposes and consideration
therein expressed, as the act and deed of Arthur Andersen & Co. ,
and in the capacity therein stated as its duly authorized
Partner.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of
' A.D. , 19 .3 . _o_
Notary 1 is in and /for
the State of Texas
City t1l" FUrt VVY-th) Evans
Thlyor and, Council Corn-unriunication
DATE =W1 CE suwEcy Proposed Five Year Contract fcr PAGE
Audit by independent CPA F'
6122n'82 C-6372
On May 14, 1981, the City received proposals for performing an independent audit
of the City financial records including all City funds, the Retirement Fund,
CITRAN and a single audit of ail Federal grant programs. Requests for Proposaks,
were sent to eleven firms and eight of these firms responded. The written
pro a Mile were initially evaluated by a staff committee and the two highesT.
Aiking firms then made an oral presentation to the City Council Audin CommitvEe.
The Audit Committee composed of Mayor Pro Tem Richard Newkirk, Councilmen Herman
Stute and Russell Lancaster have selected the firm of Arthur Andersen and Cal
to serve as independent auditors for the five-year period ending w0h the audit
of the 1985-86 Fiscal Year.
Fo2iniapnoin
Funds to provide payment for the first year of the proposed contract are being
included in the 1982-83 Annual Budget, Funding for the remaining four years will
be included in the appropriate annual budget for each year,
Recommendations
The Audit Committee makes the following recommendations, with which the staff
concurs:
E That Arthur Andersen & Co. be eqyged to perform an independent audit of
of the financial records of the City of Fort, Wbrth including the Retirement
Fund, CITRAN, and a single audit of all Federal grant programs;
2. That Arthur Andersen & Coa be paid $78,000 for the first year, $81,000 for
jai;, second year and $84,000 for the third year. At the end of the third
year a price will be determined by negotiation for the last two years of
the contract; and
3. That the City Manager be authorized to execute a contract with Artbur Arde.-r's=e .
& Co. , in -accordance with the above.
MCM:plw
SUBMITTED FOR
CITY IMANAG ER'S I WSWSMON Sy COUNC�L PROWSSED BY
I OFFICE BY: 7 APPROVED
OTWEP (DESCRISF.,
DEPARTMENT HEAD:
M. C, Nfatson MY SECRETAPY
ORMA�TiOl
FOR AC M-ONAL I�NF
Cc T T, 3
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