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Home My WebLink AboutO-1986-1517 . .' ORDINANCE NO. 1517 AN ORDINANCE AUTHORIZING AND APPROVING A CONTRACT BY AND BETWEEN PEAT, MARWICK, MITCHELL AND COMPANY, CERTIFIED PUBLIC ACCOUNTANTS, AND THE CITY OF LA PORTE, TEXAS, FOR AUDITING SERVICES TO BE RENDERED TO THE CITY OF LA PORTE FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 1986; 1987; AND 1988; AND AUTHORIZING THE EXPENDITURE OF $24,000.00 APPROPRIATED IN ACCOUNT NO. 001-600-601-507 OF THE FISCAL YEAR 1986-1987 GENERAL FUND BUDGET. WHEREAS, the Finance Officer has certified to the City Council that there is available for appropriation in the hereinafter mentioned Account a sum for the purpose hereinbelow stated; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: SECTION 1. That the City Manager of the City of La Porte, Texas, is hereby author i zed to sign, and the City See retary to attest that certain contract, a copy of which is attached hereto and incorporated herein by reference, by and between the City of La Porte, Texas and Peat, Marwick, Mitchell and Company, Certified Publ ic Accountants, for aud i ting serv ices to be rendered to the City of La Porte for the fiscal years end ing September 30, 1986; 1987; and 1988. SECTION 2. The City Counc il has found and determined and does hereby find and determine that the execution of said amended contract would be to the benefit of the citizens of the City of La Porte, Texas, and hereby approves the form and substance thereof, a copy of which is attached hereto. e . SECTION ~. That there is hereby appropriated out of Account No. 001-600-601-507 the amount of Twenty-Four Thousand and No/100 Dollars to defray the costs and obligations of the City under said contract for the audit of the fiscal year end ing September 30, 1986; and the Mayor and the City Manager are hereby authorized to draw warrant, check or voucher in said amount, or so much thereof as may be necessary, aga inst sa id Account, to pay and discharge the legal obligation of the City of La Porte, Texas, chargeable thereto. SECTION 4. The City Council officially finds, determines, recites ~~d declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meet ings Law, Article 6252-17, Texas Rev ised C i v il Statutes Annotated; and that this meeting has been open to the public as required by law at all times during which this Resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. PASSED AND APPROVED this the /5?1- day of October, A.D., 1986. CITY OF LA PORTE /~~ 2 ;. . e e ATTEST: ~~ CHERIE BLACK CITY SECRETARY ~ KNOX W. ASKINS CITY ATTORNEY 3 .."' .... t. , e e AUDITING SERYICES AGREEMENT This agreement made this 13ft day of tJclv~/' , 1986, by and between the Cay of La Porte, a municipal corporation of the County of Horns, Stote of Texas, hereinafter called .City. and Peat, Marwick, MHche11 ond Co., a partnership doing business in the State of Texas, hereinafter called -Auditor., WHEREAS, the firm of Peat, Marwick, Mitchell and Co. has been duly selected by the City os the AudHor to prOVide auditing services to the Cay of La Porte for each of the fiscal years ending September 30, 1986, September 30, 1967 and September 30,1966; and, WHEREAS, a is agreed that the Auditor wHl provide audits in occordance with generally accepted auditing standards that result in opinions on the various financial statements of the Clty of La Porte; NOW, THEREFORE, for and in consideration of the mutual convenants, promises and agreements contained herein, the Audltor and the Ci ty do hereby covenant and agree os f 0 I lows: 1. It is agreed that the Audltor will conduct on examination of the financial statements containing all funds and account groups maintained by the City for each of the flscal years ending September 30, 1966, September 30, 1967 and September 30,1966. The combined financial statements maintained by the Cay will be produced in accordance with pronouncements of the Government Accounting Standards Boord and also in compliance with the Single Audit Act of 1984, Public Low 98-502, os implemented by the United States Office of Managment and Budget, Circular .0.-128, AlIdits of Stote tlntI Loco/6oJ'ernments. e e 2. Auditor will perform audits in accordance with generally accepted auditing standards as promulgated by the American Institute of Certifie.d Publtc Accountants that result in opinions on the V6riOUS fin6nci61 statements of the City of La Porte. Auditor also agrees to assess the strengths and weaknesses in internal accounting control and other operating controls, and identify opportunities to improve the efficiency and effectiveness of the accounting and operating processes. Auditor will provide the City Council of the City of La Porte with reports on the Auditors'.comments aod r~cpmmendations regarQing internal accounting control and other operating controls noted during the course of the Auditors' examination. of the financial statements of the City of La Porte, hereafter called the management letter. If conditions are discovered which lead the Auditor to believe that material errors, defalcations or other irreglllanties may exist, or if any other circumstances are encountered that require extended services, the Auditor will promptly advise management, No extended services ~r:e to be.performed unless they are authori.zed by the Ci ty admi ni strat ion. 3. Auditor agrees to select the necessary procedures to test the City of laPorte's compliance with laws and regulations related to Federal financial as.sistance programs.. Additionally, Auditor agrees to perform a study and evaluation 0.1 the City of laPorte's internal accounting and administrative controls used in administering Federal financial assistance programs. Auditor wPl prepare reports expressit:lg.an opinion on the .city of LaPorte's compliance with laws and regulations related to Federal financial assistance' programs and the City of laPorte's internal accounting and administrative controls used in administering Federal financial assistance programs. Auditor will also be available to meet with the City's Federal cognizant audit agency. 4. Auditor agrees to maintain a year-round dialogue with management of the City in order to provide business advice and solutions to problems as needed. . . .. 5. Auditor agrees to provide os port of the flscal year 1966 audit additional flnancial services' yalued'"at approximately.$5,OOO in mutually agreed-upon areas at no cost to the City. 6. In consideration of the services to be performed by the Auditor .~(tCO, H~cal year, the Ci ty agrees .t(} toropensate the Audi tor for the services rendered based upon.a-fee:of.FHteen-Thousand Dollars ($15,000), plus'out-of-pocket expenses not to.exceed flfteen percent (151) of professional fees. The rates for additional services, if any, requested by the City will be as follows: a) Partner - $150 '. ....-. -b) Manager - 80 . iC) -Senior. . - 60... " ".:' d) Staff 40 . . I .. . 7. Auditor is to maintain prQfessionall1abi1ity insurance coverage in connection with the work to be performed on behalf of the City under this contract. - . ~ .' .' .c:. .' B . Should the City at any time become dissatisfied with the Auditor's performance under this _~greement, the CHy moy terminate this agreement by giving to Auditor thirty (30) days written notice of said termination. The City sholl be the sole judge os to whether the performance of the Auditor is satisfactory. Auditor will be compensated for work performed to date of dissatisfaction and termination, plus $5,000 for recovery of costs associated with the transition of the Auditor. e . 9. The Auditor may terminate this agreement by glvlng to the City thlrty (30) days written notlce of sald termlnation. The Auditor must " provld'e to the Cny Coimcn of the 'CHy of Lo Porte probable justjflcat10n for the"termlnation of thlS agreement. The AudHor will be sole judge as to the probable justiflcation for the termlnation of thlS agreement. Audltor wlll be compensated for work performed to date of termlnatlon. . :~..:'.:.. ", ~ r .~..(.:.. :.." I' .10~' do ._~. .. " .'':'. :. I~'. ~ ; ~. I . _'.. : . -" ; A-ny notices to be gfven hereunder' by either party to the other may be effected eHher by personal dell very in writing or by registered or certified mail, postage prepaid wHh return receipt requested. Mail notices shall be addressed to the addresses of the parties as follows: Ci ty of La Porte 0- c/o Richard Hare - Assistant City Manager P.O,Box1115 . La Porte, Texas 77571 Peat, Marwick, MHchell and Co. c/o Gary J. Miglicco - Partner 1 Corporate Plaza 2525 Bay Area Boulevard Houston, Texas 77058 I". . e 11. 41 The fallure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferre~ shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasi on. IN WITNESS WHEREOF, the City 6nd Auditor h6ve executed this agreement on the date and year fi rst above wri t ten. dtY;~, 4(IC7~KtP;- CITY OF LA PORTE .... , . '. I" PEAT, MARWICK, MITCHELL AND CO. ",- "-Jr: