HomeMy WebLinkAboutAuditing Services Agreement 1994 4 TAUTGES, REDPATH & C0., LTD.
CEPTIFIED PUBLIC ACCOUNTANTS
September 19, 1994
LaVonne Wilson
Clerk- Treasurer
City of Oak Park Heights
14168 North 57th Street
Oak Park Heights, MN 55082
Dear LaVonne:
Enclosed are two copies of our standard Agreement for Auditing/Accounting Services for
the year ending December 31, 1994.
Similar to last year's contract, Section VII relates to the Federal Single Audit Act of 1984.
The federal law requires that the City have an Annual Federal Compliance Audit if the City
receives greater than $100,000 of federal grants or aids per year. The City may elect to
have individual program audits or a Federal Single Audit if federal aid exceeds $25,000 and
does not exceed $100,000. Please advise our office of your expected level of federal aid so
that we may plan for an expanded scope of audit as may be required.
Upon the approval of this agreement by your Council and execution, please return one
copy to our office and retain the other copy for your files. Your early consideration of this
contract will assist us in preparing our 1994/1995 audit schedule and will be greatly
appreciated. If you have any questions, please don't hesitate to call.
Sincerely,
TAUTGES, REDPATH & CO., LTD.
Robert J. Voto, CPA
4810 White Bear Parkway • White Bear Lake, Minnesota 55110 • 612/426 -7000 • FAX /426 -5004 • Member of HLB International
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AGREEMENT 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 TAUTGES, REDPATH & 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 ending December 31, 1994. The scope of the services includes the following:
• Financial audit of all funds and account groups of the City of the year ending December
31, 1994 in accordance with generally accepted auditing standards as set forth by the
American Institute of Certified Public Accountants and the standards set for financial
audits in the U.S. General Accounting Office's (GAO) Government Auditing
Standards.
• Opinion scope to cover the general purpose financial statements with an "in- relation -to"
opinion on the combining individual fund and account group financial statements.
• The State Legal Compliance Audit is included in the scope of service.
Such audit 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.
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II.
The Auditor's report and management comments shall be addressed to the City Council. Such
management comments shall contain specific disclosure and recommendations 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 make 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 1994 Annual Financial Report of the City shall be prepared in accordance with generally
accepted accounting principles. Should the City require assistance in preparing and compiling 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.
IV.
The City herewith engages the Auditors for the work specified and agrees to pay the Auditors
on the basis of:
Partner $94.00 per hour
Manager $85.00 per hour
Supervisor $71.00 per hour
Senior $59.00 per hour
Semi - Senior $48.00 per hour
Junior $39.00 per hour
Statistical Typists and
Report Processors $26.00 per hour
Charge per Copy of Financial Statements $25.00 per copy
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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 proceeding 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.
At the request of the City, 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.
Subject to the above conditions, 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.
VIII.
Auditor certifies that its officers are Certified Public Accountants, licensed by a regulatory
authority of the State of Minnesota.
Certificate No.
Robert G. Tautges 4350
James S. Redpath 5846
D. Kenneth George 7601
David J. Mol 9129
Norman C. Longsdorf 8423
Steven J. Wahlin 8160
The Auditor further certifies that it meets the independence standards as promulgated by the
General Accounting Office (GAO) Government Auditing Standards (1988 revision).
IN WITNESS WHEREOF, the City and the Auditors have executed this agreement the day and
year written below.
TAUTGES, REDPATH & CO., LTD. CITY OF OAK PARK HEIGHTS,
MINNESOTA
Certified Pu 'c Accountants
By. By.
David J. Mol, Vice President Mayor
Date: 9�GA�y Date:
By:
Clerk- Treasurer
Date: