AGREEMENT TO PERFORM FINANCE-ACCOUNTS PAYABLE AUDIT SERVICESAGREEMENT TO PERFORM FINANCE /ACCOUNTS
PAYABLE AUDIT SERVICES TO CLEARWATER,
FLORIDA
CARR, RIGGS & INGRAM, LLC
THIS AGREEMENT, is entered into this 9th Day of October 2014, and effective
as of October 9, 2014, by and between CARR, RIGGS & INGRAM, LLC, "FIRM"
and the City of Clearwater, Florida, "CITY,"
NOW, THEREFORE, the parties hereto mutually agree as follows:
(1) Employment of FIRM. CITY agrees to engage the FIRM and the FIRM
hereby agrees to perform the services described in the CITY's Scope of
Work incorporated into this Agreement as Attachment A and FIRM'S
proposal dated October 8, 2014, (FIRM CITY OF CLEARWATER
LETTER), incorporated into this Agreement as part of Attachment A.
(2) Term. The services to be performed hereunder by the FIRM shall
commence on October 15, 2014 and shall terminate on or about
December 19, 2014, unless this Agreement is earlier terminated or
extended as provided for herein.
(3) Compensation. The CITY agrees to pay the FIRM an hourly sum based
on the estimated number of hours in the proposed scope of work and the
Firm's City of Clearwater Letter estimated to total not more than
$45,000.00, at an average hourly . rate - of . $185.00. FIRM _ agrees _ to
complete the project and all services provided herein for said hourly rate.
Should work require additional time (hours billed), this agreement may be
modified to incorporate those additional sums.
(4) Method of Payment. The FIRM shall bill monthly for hours completed to
date as described in FIRM'S Price Proposal. CITY shall pay invoices
within thirty (30) days of receipt. The City agrees to pay after approval
under the terms of the Florida Prompt Payment Act F.S. 218.70.
(5)
Changes. CITY may, from time to time require changes in the scope of
services of the FIRM to be performed hereunder. Such changes, which
are mutually agreed upon by and between CITY and the FIRM, shall be
incorporated in written amendment to this Agreement.
(6) Services and Materials to be Furnished by CITY. CITY shall furnish
the FIRM with all available necessary information, data, and material
pertinent to the execution of this Agreement. CITY shall cooperate with
Professional Services Agreement Page 1
(7)
the FIRM in carrying out the work herein and shall provide adequate staff
for liaison with the FIRM.
Termination of Agreement. The CITY at its sole discretion may
terminate this Contract by giving FIRM a ten (10) day written notice of its
election to do so and by specifying the effective date of such termination.
FIRM shall be paid for its services through the effective date of such
termination. Further, if FIRM shall fail to fulfill any of its obligations
hereunder, this Contract shall be in default, the CITY may terminate the
Contract, and FIRM shall be paid only for work completed.
(8) Information and Reports. The FIRM shall, at such time and in form as
CITY may require, furnish such periodic reports concerning the status of
the project, such statements, and copies of proposed and executed plans
and other information relative to project as may be requested by CITY.
The FIRM shall furnish CITY, upon request, with copies of all documents
and other material prepared or developed in relation with or as part of
project as set forth in the referenced scope of work.
(9)
Records and Inspections. FIRM shall maintain full and accurate records
with respect to all matters covered under this Agreement for a period of
four years after the completion of the project. CITY shall have free access
at all proper times to such records, and the right to examine and audit the
same and to make transcripts there from, and to inspect all program data,
documents, proceedings, and activities.
(10) Completeness of Contract. This contract and any additional or
supplementary document or documents incorporated herein by specific
reference contain all the terms and conditions agreed upon by the parties
hereto, and no other agreements, oral or otherwise, regarding the subject
matter of this contract or any part thereof shall have any validity or bind
any of the parties hereto.
(11) CITY Not Obligated to Third Parties. CITY shall not be obligated or
liable hereunder to any party other than the FIRM.
(12) Rights and Remedies Not Waived. In no event shall the making by
CITY of any payment to the FIRM constitute or be construed as a waiver
by CITY of any breach of covenant, or any default which may exist on the
part of the FIRM and the making of any such payment by CITY while any
such breach or default shall exist in no way impairs or prejudices any right
or remedy available to CITY in respect to such breach or default.
(13) Hold Harmless. Each party shall be responsible for its own acts and will
be responsible for all damages, costs, fees and expenses which arise out
of the performance of this Agreement and which are due to that party's
Professional Services Agreement Page 2
own negligence, tortuous acts and other unlawful conduct and the
negligence, tortuous action and other unlawful conduct of its respective
agents, officers, and employees.
(14) Insurance. FIRM agrees to maintain insurance during the term of this
Agreement: for comprehensive general liability in the amount of
$1,000,000 per occurrence and $2,000,000 in aggregate; automobile
liability insurance in the amount of $1,000,000; workers' compensation
insurance in the amount of $1,000,000 and professional liability in the
amount of $1,000,000. FIRM shall provide CITY with an insurance
certificate which names the CITY as an additionally insured.
(15) Personnel. The FIRM has all personnel required in performing the
services under this Agreement. All of the services required hereunder will
be performed by the FIRM or under FIRM'S supervision, and all personnel
engaged in the work shall be qualified to perform such services.
(16) Assignability. The parties hereby agree that FIRM may not assign,
convey or transfer its interest, rights and duties in this Agreement without
the prior written consent of CITY.
(17) Governing Law and Venue. The laws of the State of Florida shall govern
this Contract, and any action brought by either party shall lie in Pinellas
County, Florida.
(18) Notices. Any notices, bills, invoices, or reports required by this
Agreement shall be sufficient if sent by the parties in the United States
mail, postage paid, to the addresses noted below:
TO FIRM:
Name. Charles W. Whetstone, CPA
Title Partner
Agency Carr, Riggs & Ingram, LLC
Address 2111 Drew St
City, State Zip Clearwater FL 33765
TO CITY
Name. Robin I. Gomez
Title City Auditor
Agency City of Clearwater
Address 100 S Myrtle Ave, Rm 345
City, State Zip Clearwater FL 33756
Professional Services Agreement Page 3
IN WITNESS WHEREOF, CITY and the FIRM have executed this agreement as
of the date first written above.
Date:
Countersigned:
CITY OF CLEARWATER, FLORIDA
By: tzat,u4N, 6r 1444440.,--z
William B. Horne II
City Manager
Ap roved as t form: Attest:
Pamela Akin ' Rosemarie Call
City Attorney City Clerk
Attest:
Print Name:
Secretary
CARR, RIGGS INGRAM, LLC
By:
Print Name: Charles W. Whetstone
Title: Partner
Professional Services Agreement Page 4
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October 8, ZU14
Robin Gomez, City Auditor
City ofClearwater
100 S. Myrtle Avenue
Clearwater, FL337S6'SSZU
Dear Mr. Gomez:
The purpose of this letter is to set forth the understanding of our consulting engagement to assist the City
of Clearwater to perform an internal controls and process review of the accounts payable division of the
Finance Department to evaluate several concerns raised by the former City employee, Mr. William Tedder
in a letter dated September 21, 2014.
Our consulting services will include but not be limited to reviews of internal controls and process
procedures in the Accounts Payable division during the September 30, 2013 and September 30, 2014 fiscal
years as outlined in the scope of work prepared by Mr. Gomez. (Copy is attached).
Our testing and evaluation of procedures will include the use of data analytic software applications to
extract information from vendor master files and other internal computer data bases used to process
vendor payments. We will also interview current and former employees listed in Mr. Tedder's letter and
request copies of reports and documents referenced in Mr.Tedder's letter.
All findings and recommendations for process improvement from this consulting engagement will be
presented to the City Auditor, Director of Finance and the City Manager for review and acceptance.
Management is responsible for establishing and maintaining effective internal controls, including evaluating
and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following
laws and regulations, and ensuring that management is reliable and financial information is reliable and
properly reported. Management is also responsible or implementing systems designed to achieve
compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for
the selection and application of accounting principles.
All services to be performed by the City will be under the direction of Robin Gomez, City Auditor. Charles
Whetstone, CPA will be the engagement partner and coordinate all services to be performed by Carr, Riggs
& Ingram, LLC. We anticipate starting this engagement not later than October 15, 2014 and be completed
by December 19, 2014. Either party may terminate this agreement upon thirty days written notice. If you
terminate this engagement prior to its completion, you agree to compensate us for the time and charges
incurred to that date.
Robin Gomez, City Auditor
City of Clearwater
October 8, 2014
Page 2
The initial costs for this consulting engagement is estimated to range between $35,000 to $45,000 based on
our standard hourly billing rates listed below, however the full scope and amount of time required has not
been determined. If an expanded scope of work is required a revised consulting fee estimate will be
prepared for review and acceptance before the start of any expansion of the engagement.
Hourly rates
Partner $225
Manager $185
Senior Staff $120
Staff $ 95
IT Specialist $195
In the event of a dispute between the parties which arises out of or relates to this contract or engagement
letter, the breach thereof or the services provided or to be provided hereunder, and, if the dispute cannot
be settled through negotiation, the parties agree that before initiating arbitration, litigation or some other
dispute resolution procedure, they will first to try in good faith to resolve the dispute through non-binding
mediation. The mediation will be administered by the American Arbitration Association under its Dispute
Resolution Rules for Professional Accounting and Related Services Disputes. The costs of any mediation
proceedings shall be shared equally by all parties.
We sincerely appreciate this opportunity to be of service to the City of Clearwater. If this agreement is
acceptable, please sign the copy of this letter in the space provided and return to us.
Very truly yours,
Charles "Chad" Whetstone, CPA
Partner
Carr, Riggs & Ingram, LLC
Certified Public Accountants
2111 Drew Street
Clearwater, FL 33765
This letter correctly sets forth the understanding of the City of Clearwater, Florida.
Management signature:
Title:
Date:
City of Clearwater, Florida CITY AUDIT
FINANCE DEPARTMENT REVIEW/AUDIT—ACCOUNTS PAYABLE POLICY/PROCESS
1. Purpose:
A letter(see enclosure) from a recently retired Finance Department employee, a long-serving
accountant, in the accounts payable (AP)division pointed out some areas of concern specific to the
internal controls on various accounts payable processes (listed below). The letter references various
City accounts payable processes addressed in both Florida Statutes and City of Clearwater ordinances as
well as in the City's procurement policy and related processes.
The City of Clearwater seeks a local firm to perform a fairly quick (to complete within a month
or two) review of the issues identified to provide recommendations on enhancing internal controls and
other accounts payable process improvements. The following limited scope of work provides some
guidance on the requested engagement:
11. Scope of Work(incorporate on at least a sample basis, data/activity within the 2 most recent
fiscal years, ended Sept 30, 2013 and Sept 30, 2014:
1. Purchasing-A/P overview of statutes/ordinance/policy/procedures:
a. Review ordinance/policy compliance
b. Identify process improvements
2. Specific AP processes - Prompt payment- Paying equally—payment terms: net, net 30, epay—
were payment terms altered, compromised
Va. Avoiding interest payment for late payment versus non-payment for poor quality or a dispute
with vendor
-/b. Increasing electronic payments
,/I c. Duplicate payments
3. Turning over unclaimed payments to State of Florida:
a. Processes specific to City pension and compliance with State of FL statutes
4. Any other concerns/issues not addressed above. Clearwater A/P pay statistics:
FY 2012 FY 2013
Checks (# & $$) 14,400 $103,413,794 14,010 $100,436,569
Epay 1,263 $5,587,408 1,806 $5,682,041
Please provide an estimated time frame and cost.
City will provide access to all records necessary to complete review/audit.
Thank you.
Robin I. Gomez, City Auditor Robin I. Gomez