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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 � n 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. � n 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 ' � n 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: