HomeMy WebLinkAboutOrdinance 21741-05-2015 Ordinance No. 21741-05-2015
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE GENERAL FUND IN THE AMOUNT OF $91,890.00, FROM AVAILABLE FUNDS
GENERATED FROM SALES TAX REVENUE, FOR THE PURPOSE OF FUNDING
INDEPENDENT AUDITING SERVICES FROM DELOITTE AND TOUCHE, LLP FOR THE
FISCAL YEAR 2014 SINGLE AUDIT AND COMPREHENSIVE ANNUAL FINANCIAL
REPORT; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL 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 2014-2015 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
General Fund in the amount of$91,890.00, from available funds generated from Sales Tax Revenue, for the
purpose of funding independent auditing services from Deloitte and Touche, LLP, for Fiscal Year 2014
Single Audit, the Comprehensive Annual Financial Report, the Budget Report Audit.
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 i
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. 21457-09-2014 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said prior ordinances and appropriations are hereby expressly repealed.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.
VED FORM A LEGALITY: C! ECRETARY
Denis VcElroy, As tant City Attorney Mary J. Kayser
ADOPTED AND EFFECTIVE: May 12, 2015
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City of Fort Worth, Texas
Mayor and Council Communication
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i COUNCIL ACTION. .Approved.oln 5%1.2/2015 Ordinance No. 21741=05-2015
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DATE: Tuesday, May 12,2015 REFERENCE NO.: **G-18469
LOG NAME: 131NCREASE FY2014 AUDIT FEES
SUBJECT: i
! Authorize Additional Compensation in the Amount of$91,890.00 to be Paid to Deloitte and Touche, LLP,
j for the Fiscal Year 2014 Single Audit and Comprehensive Annual Financial Report and Adopt f
Appropriation Ordinance (ALL COUNCIL DISTRICTS) i
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RECOMMENDATION:
It is recommended that the City Council:
1. Authorize an additional $91,890.00 for independent auditing services by Deloitte and Touche, LLP, for
Fiscal Year 2014 Single Audit, Comprehensive Annual Financial Report and Budget Report Audit making
the total estimated cost for the Fiscal Year 2014 Audit $1,292,690.00 pursuant to City Secretary Contract
No. 45954 including the audit finding and audit charge; and i
2. Adopt the attached appropriation ordinance increasing appropriations in the Financial Management
Services portion of the General Fund in the amount of$91,890.00 and reducing the Non-Departmental
appropriations by the same amount for the increase in audit fees. i
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to authorize an increase in fees of '
$91,890.00 for independent audit services provided by the external auditor, Deloitte and Touche, LLP
(Deloitte and Touche), for the Fiscal Year (FY) ending September 30, 2014. f
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On September 14, 2010, (M&C C-24442) the City Council awarded the contract for financial audit services
to Deloitte and Touche for one year with four options to renew. This M&C C-24442 reflected a fee for the
fourth renewal (FY 2014 audit) in the amount of$1,250,800.00 (estimated initial cost of$1,200,800.00
plus $50,000.00 estimated contingency funds).
The executed fourth renewal (City Secretary Contract No. 49594) reflected an estimated audit fee of
$1,272,690.00 for audits of 13 major grant programs. Material findings occurred during the review of the
Guinn School and the Summer Food Service Program grants, escalating the City from low-risk to non-low
risk. Because of this elevation, additional grants had to be tested resulting in an additional charge of !
$10,000.00. The Financial Management Services Department also engaged Deloitte and Touche to
complete an audit on the adoption of the FY 2014 and FY 2015 budget in accordance with the terms of the I
City's Charter. The cost for these additional services was $5,000.00 per year for a total of$10,000.00. I
The final cost for all FY 2014 audit services totaled $1,292,690.00. However, the adopted FY 2015
General Fund budget included appropriations of$1,200,800.00 for the FY 2010-approved base fee but the I
previously approved contingency. Approval of this M&C will appropriate the additional required funds. i
An amendment to City Secretary Contract No. 49594 will be required. However, because the cost of the
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Logname: 13INCREASE FY2014 AUDIT FEES Page 1 of 2 �.
amendment is less than $50,000.00, the City Manager is authorized to execute the amendment under
Section 2-9 of the City Code and additional City Council authorization is not required.
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FISCAL INFORMATION /CERTIFICATION:
Upon approval of these recommendations, the Financial Management Services Director certifies that
funds are available within the existing appropriations for this expenditure, as depicted in the table
below. Specifically, the Fiscal Year 2015 budget includes appropriations in the amount of$550,000.00 for
Other Contractual Services in the General Fund, Non-Departmental and $289,756.00 has been expended
as of May 6, 2015.
ORGANIZATIONAL EXISTING TRANSFER REVISED
FUND UNIT APPROPRIATION AMOUNT APPROPRIATION
General Fund Non-Departmental $72,405,353.00 ($91,890.00) $72,313,463.00
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General Fund Financial Mgmt. Services $ 9,935,655.00 $91,890.00 $10,027,545.00
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f FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
GG01 412102 0134010 $91,890.00 GG01 539120 0909109 $91,890.00
CERTIFICATIONS:
Submitted for City Manager's Office by. Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Stephen Nesbitt (8337)
Logname: 13INCREASE FY2014 AUDIT FEES Page 2 of 2