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HomeMy WebLinkAboutAuditing Services Agreement 1985 AGRZZKM%a FOR AUDITING /ACCOUNTING SERVICES This agreement by and between the CITY OF OAK PARK HEIGHTS, MINNESOTA hereinafter referred to as the "City ", and the accounting firm of VOTO, REARDON, TAUTGES i CO., LTD., hereinafter referred to as the "Auditors ", WITNESSETH: In consideration of their mutual covenants and agreements as hereinafter set forth, the parties hereto contract and agree as follows: I . The Auditors agree to perform an audit of the financial statements and transactions of the City for the year ended December 31, 1985. Such audit and examination shall be made in accordance with generally accepted auditing standards and the minimum audit procedures prescribed by the Minnesota State Auditor pur- suant to the provisions of M.S.A., Chapter 6. Such audit and examination will include tests of the accounting records and such other audit procedures as are considered necessary to enable the Auditors to render an opinion on the fairness of the City's financial statements. It is not contemplated that the audit will be a detailed examination of all transactions nor that the audit will necessarily discover mis- conduct, should any exist. The Auditors will, however, promptly inform the City of any findings which appear unusual or abnormal. II. The Auditor's report and management comments shall be addressed to the City Council. Such management comments shall contain specific disclosure and recommen- dations with regard to the following: (a) Non- conformity with policy and procedures prescribed by Council Action, State Statutes, and /or Federal Rules and Regulations. (b) Non- conformity to generally accepted governmental accounting principles. (c) Defects in accounting policies and procedures that sake accounting and /or auditing time consuming and /or inefficient. (d) Any failure of the accounting department to prepare and distribute financial reports required or needed for administrative purpose. (e) Any other information deemed appropriate of City Council consideration. III. The 1985 Annual Financial Report of the City shall be prepared in accor- dance with generally accepted accounting principles and the "Minimum Reporting Requirements - City Financial Reporting" prepared and issued by the Office of the Minnesota State Auditor. Should the City require assistance in preparing and com- piling its financial data and records to meet these requirements, the Auditors agree to assist the City as required and as determined jointly by the Auditors and City Administration. Fees for such services (if required) shall be billed on the basis of the hourly rates contained herein, and shall be billed separate from audit fees. I v. The City herewith engages the Auditors for the work hereinbefore specified and agrees to pay the Auditors on the basis of: Partner $64.00 @ Hour D z Audit Supervisor /Manager $58.00 @ Hour s "s` Staff Auditors: Senior $40.00 @ Hour 3� Semi- Senior $32.00 @ Hour Junior $27.00 @ Hour = Statistical Typists and Report Processors $18.00 @ Hour Charge per Copy of Financial Statements $18.00 @ Copy f V. The Auditors shall provide the City with detailed statements as to the classifications and hours worked. Payments of the Auditor's fees shall be made by the City within thirty days after submittal of an itemized claim correctly showing the amount due the Auditors. Claims for payment will be submitted for payment upon completion of the interim audit; upon completion of the final field work; and, upon completion of the entire audit and submittal of the Annual Financial Report and the Auditor's Management Comments and Recommendations thereon. VI. If any circumstances disclosed by the audit and examination call for a more detailed investigation than would be necessary under ordinary circumstances, such circumstances will be called to the attention of the City authorities before pro- ceeding further with such investigation. If authorized to proceed further with an investigation in this area, compensation for these additional services shall be at the regular rates designated in this agreement. VII. The Auditors will expand the scope of the examination to comply with audit regulations as promulgated by the Single Audit Act of 1984 (P.L. 98 -502) if the City receives $100,000 or greater of federal aid during the year of audit. The audit scope will be expanded for compliance with said legislation unless the Auditors receive a written request to not expand the scope of the examination. Non - compliance with the Single Audit Act of 1984 will require disclosure in the Auditor's report and we will notify the City of potential sanctions for such non- compliance. � n we will expand audit reports issued to the City to meet federal reporting standards in the areas of: 1) our study and evaluation of internal accounting controls; 2) federal program identification; and, 3) our findings (if any) regarding non - compliance with federal regulations. Additional audit fees related to the expanded scope shall be billed on the basis of the hourly rates contained herein and shall be billed separate from other claims for payment. Auditor certified that its officers are Certified Public Accountants, licensed by a regulatory authority of the State of Minnesota. Certificate No. Robert J. Voto 2192 Timothy E. Reardon 4177 Robert G. Tautges 4350 James S. Redpath 5846 The Auditor further certified that it meets the independence standards as promulgated by the General Accounting Office (GAO) Standards for Audit of Government Organizations, Programs, Activities and Functions (1981 revision). IN WITNESS WHEREOF, the City and the Auditors have executed this agreement the day and year written below. VOTO, REARDON, TAUTGES & CO., LTD. CITY OF OAK PARK HEIGHTS, MINNESOTA Certified Public Accountants n By Gay �/I� By `% Mayor d/ Robert J. Voto, President _ Date: Date: 91 3. ' By Manager /Administrator Date: