ANNUAL AUDIT
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A G R E E MEN T
THIS AGREEMENT, made and entered into this 5th day of
September, 1991 by and between the CITY OF CLEARWATER, FLORIDA, a
municipal corporation, hereinafter referred to as "City," and
Coopers & Lybrand, a firm of certified Public Accountants, located
at 101 E. Kennedy Blvd., Suite 1500, Tampa, Florida 33602-5194,
hereinafter referred to as "Contractor;"
WITNESSETH
WHEREAS, the City is required by Article II, Section
2.01(c) (3) of the City Charter to provide for an annual audit of
its financial accounts; and
WHEREAS, the City participates in Community Development Block
Grant and other Federal Assistance programs which require
independent financial and compliance audits in accordance with
rules established by the U. S. Department of Housing and Urban
Development and other agencies; and
WHEREAS, the City maintains a self-insurance program and is
desirous of having an actuarial analysis performed on its general
and automobile liability accruals; and
WHEREAS, the Contractor is in the business of pUblic
accounting and providing casualty actuarial services, is fully
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qualified to meet the requirements of applicable City, state and
Federal law, and desires to perform the necessary services:
NOW, THEREFORE, the parties agree as follows:
1. This agreement relates specifically to the City's fiscal
year ending September 30, 1991. It is anticipated that this
agreement will be extended for the four additional fiscal years
ending 9/30/92, 9/30/93, 9/30/94, and 9/30/95. city Charter
section 2.01(c) (3) currently prohibits any single audit firm from
being employed for more than five consecutive years. The fees for
subsequent years are not expected to increase over the amounts
stated herein except for: (1) Unanticipated significant changes
in the City's future activities, financial requirements, or
actuarial analysis requirements and (2) a factor which recognizes
the impact of inflation on the contractor's cost of providing the
specified services. The extension of this contract for subsequent
years will be based upon satisfactory services provided by the
Contractor, the determination of which will be at the City's sole
discretion.
2. The Contractor shall express an opinion on the fair
presentation of the City'S general purpose financial statements in
conformity with generally accepted accounting principles, for the
fiscal year ended September 30, 1991. The Contractor shall also
express an opinion on the fair presentation of the City'S combining
and individual fund and account group financial statements and
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schedules in conformity with generally accepted accounting
principles. The Contractor is not required to audit the supporting
schedules contained in the comprehensive annual financial report,
however, the Contractor shall provide an "in-relation-to" report
on the supporting schedules based on the audit procedures applied
during the audit of the general purpose financial statements and
the combining and individual fund financial statements and
schedules. The Contractor is not required to audit the statistical
section of the report.
The Contractor shall also perform the required financial and
compliance audits associated with the Community Development Block
Grant and other Federal Assistance programs in accordance with the
Single Audit Act of 1984 (PL 98-502).
3. In performing the services described in #2 above, the
Contractor shall comply with the following:
o generally accepted auditing standards,
o the standards set forth for financial audits in the
u.s. General Accounting Office's (GAO) Government
Auditinq Standards (1988),
o the provisions of the federal Single Audit Act of
1984, and
o u.S. Office of Management and Budget (OMB) Circular
A-128, Audits of state and Local Governments,
o section 11.45 Florida Statutes,
o regulations of the state Department of Banking and
Finance,
o Rules adopted by the State of Florida Auditor
General for form and content of governmental unit
audits,
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o Audits of state and Local Governmental units
(Revised) - AICPA, and
o Chapter 73-600 of the Florida statutes referring to
Fire District Audit requirements.
4. Following the completion of the audit, the Contractor
shall issue the following reports:
o A report on the fair presentation of the financial
statements in conformity with generally accepted
accounting principles.
o A report on the internal control structure based on
the auditor's understanding of the control structure
and assessment of control risk.
o A report on compliance with applicable laws and
regulations.
o A report on the internal control structure used in
administering federal assistance programs.
o A report on compliance with laws and regulations
related to major and non major federal financial
assistance programs.
o A supplementary management letter if required to
comply with the regulations of the state of Florida
Auditor General.
5. The Contractor will assist the City in complying with
changes in reporting requirements to remain in conformity with
Generally Accepted Accounting Principles, and in continuing to meet
applicable requirements of the certificate of Achievement for
Excellence in Financial Reporting Program sponsored by the
Government Finance Officers Association.
6. The Contractor shall retain all working papers for a
minimum of three (3) years, unless notified in writing by the City
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of the need to extend the retention period. The Contractor shall
make working papers available, upon request, to the following
parties or their designees:
o City of Clearwater
o u.s. Department of Housing and Urban Development
o u.s. General Accounting Office (GAO)
o Parties designated by the federal or state
governments or by the City of Clearwater as part of
an audit quality review process
o Auditors of entities of which the City of Clearwater
is subrecipient of grant funds .
In addition, the Contractor shall respond to the reasonable
inquiries of successor auditors and allow successor auditors to
review working papers relating to matters of continuing accounting
significance.
7. The Contractor shall perform an actuarial analysis of the
City's general and automobile liability accruals, currently
accounted for as a part of the City's self insurance fund. The
analysis will include, but not necessarily be limited to, a
computation of the "IBNR" (incurred but not reported) liability
both for general and automobile amounts as of September 30, 1991.
The Contractor will assist the city in identifying all data needed
to comply with GASB statement Number 10.
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8. The Contractor shall complete performance under this
contract by March 15, 1992.
9. The Contractor shall bill the City and the City shall pay
the Contractor for the performance of the services under this
contract on the basis of the Contractor's normal and customary
charges for such services, plus ordinary out-of-pocket expenses
customarily stated separately by the Contractor in his general
practice, the same to be separately stated and itemized. The total
amount of this contract including out-of-pocket expenses
customarily stated separately by the Contractor in his general
practice, the same to be separately stated and itemized. The total
amount of this contract including out-of-pocket expenses shall not
exceed $81,000 for the Audit, and the required federal assistance
audits performed under the Single Audit Act, and $5,500 for the
actuarial analysis of the general and automobile liability
exposure. The City may, by amendment of this agreement, increase
these maximum fees and/ or extend the completion date upon the
Contractor's showing evidence of conditions which require
investigation consuming substantially more time than would
generally be required to perform the prescribed services. Progress
paYments will be made periodically for work completed to date based
on invoices submitted by the Contractor. The sum of such progress
paYments shall not exceed 90% of the maximum specified above. The
final paYment will be made within 30 days of receipt of the final
audit reports.
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IN WITNESS WHEREOF, the parties hereto have caused this
agreement to be executed the day and year first above written:
R1ta Garvey
Mayor-Commissioner
Approved as to form
and correctness:
~4~~'d
M.A. Galbra1th J.
City Attorney
Witnesses:
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CITY OF CLEARWATER, FLORIDA
By:
M1chael J. Wr1g
City Manager
Attest:
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COOPERS & LYBRAND
BY
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Attest:i\~\~ ~. 1\\ t"I-t<:.R,
NOTAR'f Pli"BLI . ta e 'at ;T;~ h
My commission expires March 30, 1992