HomeMy Public PortalAboutORD10086 BILL NO. 0 l
SPONSORED BY COUNCILMAN /
ORDINANCE NO. DO0
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT WITH LAGE,
EVERS AND COMPANY FOR THE AUDIT OF THE CITY RECORDS FOR THE
YEAR ENDING OCTOBER 31, 1983.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON,
MISSOURI, AS FOLLOWS:
Section 1. The Mayor and Clerk are hereby authorized and
directed to execute a contract with Lage, Evers and Company for the
audit of the City records for the year ending October 31, 1983 for the
sum of $13,000.
Section 2. The contract shall be substantially the same in form
and content as that contract attached hereto as Exhibit A.
Section 3. This Ordinance shall be in full force and effect from
and after the date of its passage and approval. $
Passed Ie2 y �7— -3 Approved
r i ing Office a or
ATTEST:
City Clerk
PERSONAL SERVICES CONTRACT
This Contract is made and entered into this /g"'- day of
1983, by and between the City of Jefferson,--Missouri, a municipal
corporation, hereinafter referred to as "City", and Lage, Evers and
Company, a partnership, hereinafter referred to as "Auditor".
In consideration of the covenants and agreements hereinafter set
forth, it is agreed as follows:
1. Auditor will perform the auditing services for the City as
described in the Audit Proposal dated September 13, 1983, which is
attached hereto as "Exhibit A", and incorporated herein.
2. At any point during the audit, if the Auditor encounters any
unusual situation which indicates that the audit cannot be completed
without increasing the scope of this agreement, the Auditor will
immediately notify the City of that situation.
3. The City I- will pay to the Auditor the sum of $13,000 for the
auditing services. The City will not pay the Auditor any additional
amounts either for the services described in this agreement, or for
any services outside the scope of this contract without the prior
written consent of the City Council, whether or not the Auditor had
performed any additional services. Payment will be made upon
completion of the services.
® IN WITNESS WHEREOF, the parties hereto have set their hands and
seals on the day first above written.
CITY OF JEFFERSON, MISSOURI
By:
ATTEST: OR
City Clerk
LAGE, EVERS AND COMPANY
U
By: ,
PARTNER
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AUDIT PROPOSAL
CITY OF JEFFERSON, MISSOURI
FOR THE YEAR ENDED OCTOBER 31, 1983
TABLE OF CONTENTS
PAGE
SCOPE 1
AUDIT APPROACH 2
ADDITIONAL PROFESSIONAL SERVICES 2
PROFILE OF THE FIRM 3
GOVERNMENTAL EXPERIENCE 4
PERSONNEL 5
FEES 5&h
TIMING 6
PRE-AUDIT WORK TO BE COMPLETED BY CITY 7&8
FSLage, Evers
& Company Certified Public Accountants
® 1913 William Street Jefferson City, Missouri 85101 314-835-0227
Village Green Shopping Center California, Missouri 85018 314-798-3210
September 13, 1983
Bob Cox, Director of Finance
City of Jefferson
City Hall
Jefferson City, Missouri 65101
SCOPE
We will examine the City's balance sheet as of October 31,
1983, and the related statements of revenue and expenses for the
year then ended for the purpose of expressing an opinion on them.
Our examination will be made in accordance with generally accepted
auditing standards and will include such auditing procedures as we
consider necessary to accomplish this purpose. This will be done
on the accrual basis of accounting.
Our examination will include various tests and procedures to
determine the reasonableness of the information presented in the
financial statements. The following is a list of the funds to be
included in our examination.
ANIk
qP 1. General Fund
2. Federal Revenue Sharing Fund
3. Park Fund
4. Airport Fund
5. Debt Service Fund
6. Police Training Fund
7. Central Maintenance Fund
8. Parking Fund
9. Library Operating Fund
10. Library Building Fund
11. General Long-Term Debt Group
12. Sewer Fund
13. Transit Fund
14. General Fixed Assets Group of Accounts
The audit is to be conducted in accordance with OMB Circular
A-102 Attachment P, which addresses the agency wide single audit
concept, as well as requiring compliance with grant terms and
conditions for the various Federal grant programs in which
Jefferson City participates.
Although defalcations and similar irregularities may occa-
sionally be disclosed by this type of examination, it is not
designed for this purpose and should not be relied on to disclose
fraud, should any exist.
We will, of course, report to you anything that appears to us
during our examination to be unusual or abnormal.
1
AUDIT APPROACH
In the areas where an overall test for reasonableness can be
utilized, this procedure will be followed. However, in areas
where this is not possible, we will do detailed testing, by
statistical sampling where feasible, of documentary evidence
supporting the transactions recorded in the accounts, and direct
confirmation of receivables and certain other assets and
liabilities by correspondence with selected parties. The
following is a partial listing of detail tests we will perform:
Cash Receipts Test - All Funds
Cash Disbursements Test - All Funds
Payroll Test - All Funds
Confirmation of Cash Accounts
Confirmation of Receivables
Confirmation of Payables
Other procedures we will perform include, but are not limited
to, the following:
Review of Internal Control Procedures and
review of various bookkeeping procedures.
These will be reported on as a part of our
report to management on internal control,
suggestions to management.
Our report format will follow the manual Governmental
Accounting, Auditing and Financial Reporting (CAAFR) , as required
by the AICPA and the Municipal Financial Officers Association
(MFOA).
We estimate the work to require about 575 hours. We plan to
have four people assigned to this audit.
ADDITIONAL PROFESSIONAL SERVICES
Our Firm also has the following services to offer to the
City:
Help in interviewing and selecting new employees
to work in the bookkeeping function. (Testing &
Interviewing).
Data Processing services in the following areas:
Payroll records and reporting
Mailing lists
Accounts receivable and billing
Financial Advisory services
2
PROFILE OF THE FIRM
Lage, Evers and Company began business in 1974 and through
steady growth has become a well-known and respected firm in
Central Missouri. Our concepts of service are: A professional
service can only be acquired from someone who is capable of
rendering that service; the successful performance of the service
depends on an understanding of the client's business; a profes-
sional relationship includes an obligation to raise questions and
suggestions; and a professional service includes both promptness
and thoroughness in responding to requests from the client.
Our expertise in serving businesses and the auditing experi-
ence of our partners and professional staff qualifies us to serve
as your accountants and auditors. Our philosophy of service
requires a close understanding of your business, and an involve-
ment on a regular basis with your management in order to maintain
an awareness of your financial and accounting objectives, goals
and needs; to assist in developing plans to obtain such goals; and
to monitor progress for developments which may affect planning and
year-end budgeting.
The size of Lage, Evers and Company is important to clients
for two reasons. First, the firm is small enough so that our
professional staff can maintain an intimate knowledge of a client's
businesses and needs. Second, the firm is large enough to have
specialists available in the various disciplines of the profession
- accounting, auditing, income taxes, management consulting
services, and data processing.
At the present time, the personnel of the firm are as follows:
Partners 4
Professional Staff 7
Para-Professionals 2
Office Support Staff 4
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All professional personnel are periodically evaluated for
technical competence and are tested as to potential leadership
qualities and aptitude. Training is accomplished through outside
professional development programs and internal training programs.
On the job training is enhanced by the active participation of
partners in the planning, review and "problem-solving" phases of
our work. The recruiting and retention of top-flight staff
personnel is made easier by knowledge that our staff will be
working on a direct interrelationship basis with our partners.
The partners of Lage, Evers and Company have both the techni-
cal background and the practical business experience required to
understand and contribute to client decisions in a consulting
capacity. The counsel our clients receive comes from the part-
ners' educational and business backgrounds, supplemented by our
experience with a wide spectrum of clients in an almost infinite
variety of industries and types of businesses.
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The reputation of our firm is also well known to local
® attorneys and bankers. If you desire, we would be pleased to
furnish a representative list of attorneys and bankers who have
personal knowledge of our work.
We attempt at all times to render a quality service for a
fair fee. If at any time you have a question concerning our
services or fees, please call it to our attention so that we can
discuss it. Our goal is to handle fees on an equitable basis, and
in an open manner which will result in our mutual agreement.
We appreciate the opportunity to submit the proposal to you.
There are many matters which cannot be adequately covered in
writing, and we would be pleased to have the opportunity to
respond to your questions.
We believe that we are well qualified to serve as your
accountant and auditor. If your work is entrusted to us, it will
receive our close and continued attention.
The work done on the audit would be performed from our
Jefferson City office.
We have performed auditing, accounting and management advisory
services for other municipalities. Our work has been reviewed by
the Missouri State Auditors Office staff, and has been found to be
among the highest of professional quality.
GOVERNMENTAL EXPERIENCE
NAME OF POLITICAL SUB-DIVISION CONTACT
City of Waynesville Jim Lincoln
City Admin.
774-6171
City of Rolla Leonard Martin
City Admin.
364-1835
City of Jefferson Bob Cox
Dir. of Fin.
634-4949
® 4
PERSONNEL
The following persons will supervise and perform the audit
procedures:
Elmer L. Evers - CPA, Audit Partner - Sixteen (16) years
public accounting experience. Has attended numerous seminars
related to fund and governmental accounting. Has supervised
audits of other cities and cooperatives performed by our firm,
including Federal grant programs. Is now serving as Secretary on
the Missouri State Board of Accountancy.
Dale Siebeneck - CPA, Professional Staff - Six (6) years
public accounting experience. Has supervised and assisted on many
audits of other cities performed by our firm, including Federal
grant programs.
Ron J. Bielecki - CPA, Professional Staff - Four (4) years
public accounting experience. One (1) year internal audit experi-
ence. One (1) year experience as officer trainee with the First
National Bank of Callaway County, Fulton, Missouri. Has assisted
on many audits of other cities performed by our firm.
Lynn J. Graves, CPA, Professional Staff - Four (4) years
public accounting experience. Four (4) years corporate accounting
experience as comptroller for a closely held conglomerate of ten
(10) companies. Has assisted on many audits of other cities
performed by our firm, including Federal grant programs.
All of the above persons are members of our Auditing Depart-
ment Staff. Likewise, they all hold degrees in accountancy, and
hold their CPA certificates.
FEES
We plan for your clerical staff to assist us with preparing
various schedules, typing confirmation letters, and pulling
support documents from the files. This would be in addition to
the normal year-end check list for them to use, to help them
complete their normal year-end accounting. These items should be
completed prior to us beginning the audit work.
We try to base our fees for audits on hours incurred, at our
normal hourly rates. This year, assuming the enclosed check list
of year-end accounting work is completed, our audit fee will be
$13,000, barring any unforeseen problems, such as fraud or
embezzlement. In such case, the additional work would be done at
your discretion on a per hour basis.
® 5
® If the normal year-end accounting work has not been complet-
ed, or if we discover defalcations or irregularities sufficient
enough to lead us to issue an adverse opinion, any additional work
needed to restate the financial statements so that they do present
fairly the results of operations of the City, would be done only
after discussing it with you and getting approval from the City
Council. The additional work required would be done at our normal
hourly rates in addition to the above figure. If we are required
to appear on your behalf regarding any legal matter, this also
would be done at our normal hourly rate.
TIMING
This report will be presented to and reviewed with the City
Council or City Administration on or before Janaury 31, 1984. We
tentatively plan to begin work on November 21, 1983.
If this proposal meets with your approval, please let us know
when we may schedule the time of the audit examination.
Thank you for giving us the opportunity of serving the City
of Jefferson.
Sincerely yours,
LAGE, EVERS AND COMPANY
ELMER L. EVERS ,
Audit Partner
APPROVED BY: DATE:
e 6
Lage, Evers
low &Company Certified Public Accountants
1913 William Street Jefferson City, Missouri 135101 314-835-0227
Village Green Shopping Center California, Missouri 85018 314-798-3210
September 13, 1983
Bob Cox, Director of Finance
City of Jefferson
City Hall
Jefferson City, Missouri 65101
Dear Bob:
In order for us to be more efficient in the examination of
the City for the year ended October 31, 1983, we recommend that
you provide the following information prior to our beginning field
work:
The general ledger should be in balance and as correct as
possible.
Prepare reconciliations for each bank account.
We will furnish bank confirmation forms to be filled in and
signed.
Prepare an aged schedule of accounts receivable-trade.
We will furnish accounts receivable confirmations to be
filled in and signed.
Prepare a schedule of accounts receivable, officers and
employees.
Prepare a schedule of bad debts written off during the year.
Prepare a schedule of notes receivables. Also, have the
notes available for our inspection.
Prepare an analysis of all transactions affecting marketable
securities during the period.
Prepare a schedule of all property and equipment additions
and retirements showing cost and for items sold, sales price.
Prepare a schedule of depreciation for the enterprise funds.
Prepare a schedule of accounts payable. Also, save the
creditors' regular monthly statements for October where
available. Please do not file the invoices to support the
accounts payable until after the audit.
Schedule interest income as follows:
Federal government obligations.
State and municipal other than Missouri.
Missouri state and municipal obligations.
Other interest income.
Prepare an analysis of the payments to the LAGERS pension
plan.
Have a copy of all leases for equipment rental contracts
available to us.
7
Have a copy of any employment contracts available to us.
Schedule all professional fees.
Have the payroll tax reports available for us.
A trial balance worksheet reflecting General Ledger balances
for each fund after all year-end adjusting entries.
* Prepare a schedule of insurance showing the following:
Policy number, coverage, term and premium paid. Also, have
the policies available for inspection. Include a listing of
prepaid insurance and accrued insurance.
Prepare a schedule of all construction in progress, contracts
payable, and retainage payable.
Prepare a schedule of all grants receivable, grant money
received during the year, and have the support documents
available for inspection.
*(Your insurance agent may prepare this for you. We will
provide a copy of a letter you may send to him.)
If you have any questions regarding the above items, please
don't hesitate to give us a call. Thank you for your cooperation.
Sincerely,
LAGS, EVERS AND COMPANY
ELMER L. EVERS
Audit partner
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