ANNUAL AUDIT (3)
,
I
I
A G R E E MEN T
THIS AGREEMENT, made and entered into this 2nd day of August,
1993 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, State and County 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 Contractor is in the business of public accounting,
is fully 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
(ir2: ~
/r1 /, /,. '. /.."
L~> ' / !
/4'..)
\~/
I
I
1. This agreement relates specifically to the City's fiscal year
ending September 30, 1993. This agreement may be extended for the two
additional fiscal years ending 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, or financial 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 read the City's comprehensive annual
financial report for compliance with GAAP and the applicable
requirements of the certificate of Achievement for Excellence in
Financial Reporting program of the Government Finance Officers
Association and assist the City in complying with new or existing
requirements. 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, 1993. 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
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
2
I
I
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, state, and County Assistance programs in
other agencies.
accordance with the Single Audit Act of 1984 (PL 98-502) and rules of
3. In performing the services described in #4 above, the
Contractor shall comply with the following:
generally accepted auditing standards
o
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,
o
Audits of State and Local Governmental units (Revised)
- AICPA,
o
Chapter 73-600 of the Florida statutes referring to
Fire District Audit requirements, and
o
Rules adopted by the State of Florida Auditor General
for audits of state grant and aid appropriations.
3
,
. ,
'- ~
.
I
I
As a part of the audit, the Contractor will consider the city's
internal control structure, as required by generally accepted auditing
standards and Government Auditinq standards.
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, including those relating to funds received
forma state of Florida grants and aid appropriation
pursuant to a grant or contract.
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.
o
A report on compliance with general compliance
requirements as required by the Single Audit Act of
1984 and OMB Circular A-128.
5. The Contractor shall retain all working papers for a minimum
of three (3) years, unless notified in writing by the City of the need
to extend the retention period. The Contractor shall make working
designees:
papers available, upon request, the following parties or their
o
City of Clearwater
4
, T
.
I
I
.
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.
6. The Contractor shall prepare and submit to the City no later
than August 30, 1993, a detailed schedule of the work that will be
performed by them under this contract and the date such work will be
completed. A schedule of Contractor/City meetings will be included,
such meetings to be held at least once per month until completion of
this contract. Weekly status meetings shall be held while the
Contractor is working at the City.
The Contractor shall complete interim work by September 30, 1993.
Such interim work shall include preparing a list of confirmations
needed and a list of schedules and work to be performed by the City
including the related date required.
The Contractor shall complete
performance under this contract by March 15, 1994.
10. 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
5
, - ,
I
I
"
separately stated and itemized. The total amount of this contract
including out-of-pocket expenses shall not exceed $84,500. The City
may, by amendment of this agreement, increase this maximum fee and/or
extend the completion date upon the Contractor's showing evidence of
conditions which require 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.
IN WITNESS WHEREOF, the parties hereto have caused this agreement
to be executed the day and year first above written:
ita Garvey
Mayor-Commissioner.
CITY OF CLEARWATER, FLORIDA
By:
Approved as to form
and correctness:
Attest:
Witnesses:
-
~~ab~
~ynt a E. Goudeau .~
o city Clerk
COOPERS & LYBRAND
U~yY- W~~~
cff~~4 Jt~
By:
Q WrMJrtfL 8~, p~
Attest:
6