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HomeMy Public PortalAboutORD10517 BILL NO. SPONSORED BY COUNCILMAN e� ORDINANCE NO. AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT WITH WILLIAMS-KEEPERS CERTIFIED PUBLIC ACCOUNTANTS FOR THE AUDIT OF THE CITY RECORDS FOR THE YEAR ENDING OCTOBER 31, 1985. 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 Williams-Keepers Certified Public Accountants for the audit of the City records for the year ending October 31, 1985 for the sum of $13,250. 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. Ask Passed 8,sue Approved 0 Presiding Offi r Mayor ATTEST: PA aztz:!�& City Clerk PERSONAL SERVICES CONTRACT This C�tra1 is made and entered into the day of i(.�1' 1985, by and between the City of Jefferson, Missouri, a municipal corporation„ hereinafter referred to as "City", and Williams—Keepers Certified Public Accountants, 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 auditing services for the City as described in the Audit Proposal, 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 final copy of the audit will be submitted to the Finance Director by February 6, 1986, with the audit delivered to the City Council on February 17, 1986. 4. The Auditor will hold a pre—audit conference with the City staff and a second pre—audit conference with the federal cognizant agency. 5. The Auditor will hold an exit conference with City staff. 6. The City will pay the Auditor a total sum of $13,250 for the auditing services. This will be paid 754 after acceptance by the City Council and 254 after acceptance by the cognizant agency. 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. -2_ IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the day first above written. CITY OF JEFFERSON, MISSOURI By: MAYOR :ATT'EST:` City Clerk Williams-Keepers Certified Public Accountants .�.�I..:.d:.� ,.-.�.... By: .. ARTNER I AUDIT PROPOSAL FOR CITY OF JEFFERSON CITY, MISSOURI WILLIAMS-KEEPERS CERTIFIED PUBLIC ACCOUNTANTS To be considered for the Examination of Records and Accounts of � . CITY OF JEFFERSON CITY for the period November 1, 1984 through October 31, 1985 ; to r C O N T E N T S Page Letter Scope of services to be performed 2-3 Audit approach Additional professional services y Firm profile 6 Related governmental experience 6-8 Audit staffing, estimated hours required and .fees 9 Resumes 10-12 Brochure AML WILLIAMS - KEEPERS CERTIFIED PUBLIC ACCOUNTANTS 107 ADAMS STREET JEFFERSON CITY, MISSOURI 68101 314 638.6196 The Honorable Mayor and Members of the city Council Y Y City of Jefferson City, Missouri WILLIAMS-KEEPERS is pleased to have this opportunity to present a proposal for auditing the funds under the control of the City of Jefferson City for the period, November 1, 1984 through October 31, 1985, as set forth on pages 1 and 2 of the Request for Proposal. WILLIAMS-KEEPERS has extensive experience in auditing governmental agencies and organizations throughout the State of Missouri. A summary of that experience is attached. Such experience, available to the City at the local level, can represent savings to the City in the consultation time which we believe is a vital requirement of an effective audit of the City. Members of our staff would expect to meet with the administrative staff of the City of Jefferson City on a schedule which would provide the flexibility needed by the City and the auditors. Aga Emil G. Ortmeyer, partner, and Michael J. Oldelehr, manager, would be in charge of the audit field work, final review, and presentation of the completed audit report and management letter. We sincerely hope the WILLIAMS-KEEPERS proposal meets your approval. We appreciate the opportunity to be considered to provide professional services to the City, Very truly yours, WILLIAMS-KEEPERS -1- SCOPE OF SERVICES TO BE PERFORMED 1. A review and evaluation of the internal control of the City will be made to determine the audit steps necessary for the performance of the examination and extent of detail testing necessary. 2. Our examination will be made in accordance with generally accepted auditing standards and will include such tests of the accounting records, and such other auditing procedures as we consider necessary, based on the evaluation of the internal control system. 3. We will test for compliance with Federal, State and Local Regulations to insure the proper administration and uses of public funds and assets, to include the requirements of OMB Circular A-128 as it applies. 4. We will make recommendations during the audit field work to City Staff of alternative procedures or principles of accounting, if any exist, to help in more efficient accounting or auditing. Further, we will make written rec- ommendations in the form of a management letter of any weaknesses in internal control and/or noncompliance with applicable Federal, State or Local Regu- lations. These recommendations will be discussed with City Staff prior to inclusion in the management letter. The City will furnish an adequate work area for the auditing staff. City staff will be available to answer questions, prepare schedules , and make available all documents and records required by the audit farm during the examination. Also, data processing programs and files must be made available as appropriate for the period(s) under examination. 5. We will issue our opinion on the financial. statements as a whole, based on the results of our review of internal controls, audit- procedures, tests of trans- actions and other procedures we consider necessary. We will also issue our report on the study and evaluation of internal control systems and our report on compliance with Federal and State laws, regulations, or agreements governing individual programs, in accordance with OMB Circular A-128. It is not contem- plated that we will make a detailed examination of transactions. Reliance must be placed upon adequate methods of internal accounting controls as your principal guard against irregularities which a test examination may not dis- close. 6. We will adhere to recommendations of the American Institute of Certified Public Accountants in its various publications in designing the audit program. Also, Statement 1, Governmental Accounting and Financial Reporting Principles and Statement 2, Grant Entitlement, and Shared Revenue Accounting and Reporting by State and Local Governments will be used as the basic principles of goverrmental accounting and reporting. Your report will conform to the standards of financial reporting promulgated by the Municipal Finance Officers Association and the National Committee on Governmental Accounting so that MFOA certifica- tion may be pursued if you desire. ' -2- 7. Our examination of the records and subsequent preparation of the financial statements and required notes will begin no later than December 2, 1985 and be completed by January 31, 1986. We will deliver two (2) copies of the financial statements to the Director of Finance no later than January 31, 1986 !unless an extension of time is requested and approved by both parties involved. A post audit conference will be held with the Director of Finance for the purpose of reviewing the completed financial statements and draft of the management letter no later than February 6, 1986. Presentation of twenty (20) copies of the reports and general explanation to the Mayor and City Council will be presented at-the February 17, 1986 Council meeting. 8. The working papers developed during the audit will be retained for a five year period and made available, upon request, to other independent auditors. -3- AUDIT APPROACH Our examination will be conducted in accordance with generally accepted auditing standards as defined in "Standards for Audit of Governmental Organizations, Programs, Activities, and Functions", developed by the Comptroller General, dated February 27, 1981, and will be directed toward the expression of an opinion on the fairness of the financial statements of the City. Our audit programs, which are individually tailored to each client, are developed only after an in-depth review and understanding of the accounting and administrative proceddres and personnel. This also requires an appreciation for the particular environment in which the audit is being conducted. Our audit approach encompasses the philosophy that auditing should be viewed as a contributing factor to better business and administrative practices. We believe that audits, when properly conducted, should uncover any weak financial practices, inefficiencies, and potential problem areas. Our audit programs are designed to accomplish these objectives. At the conclusion of each engagement, a letter is prepared outlining our obser- vations regarding the client's operations. These letters typically contain com- ments regarding the system of internal control, any operating inefficiencies and cost reduction opportunities along with our recommendations for implementation of corrective action. In many instances, these letters have had a significant impact on improving the client's operations. To assure that all our clients receive constant attention under a responsible experienced partner, our firm uses the concept of the engagement partner. It is his responsibility to insure that all the resources of the firm that can properly be brought to bear are available to serve each client. By directing all services through one partner, the client needs to contact only one individual and can be assured that the partner will coordinate all available services. Our firm is located in the City, therefore, we are in a unique position to offer on- going assistance as may be required from time to time during the year. This consultation is being offered at no additional charge. We would like to emphasize that since our inception in 1928 we have operated under our philosophy that in addition to the expected qualifications of technical competence, independence and integrity, an accounting firm must also have an imaginative, creative and practical approach to new developments and problems which are being encountered everywhere by businesses and governmental organizations today. We feel that this approach is, in large part, responsible for our firm growth over the years. t -4- ADDITIONAL PROFESSIONAL SERVICES In addition to financial/compliance audits increasingly required by federal and local statutes, our expertise extends into additional areas often required by our clients. Examples are: 1. Programs to solve problems resulting from increasing costs and decreasing sources of governmental revenue. 2. The recruitment and training of personnel. 3. The development of modern management practices, related cost controls, and counsel in updating out-moded constitutions, charters, or local laws which often inhibit such improvements. 4. Programs to develop financial information and management systems oriented to today's management needs. S. Operational auditing to determine the efficiency, effectiveness, and econo- mies of governmental programs, including review of both accounting and administrative controls. 6. Participating in public hearings and liaison with financial and/or legal counsel in order to define a project and its objectives, in order that an understanding and acceptance of recommendations can be accomplished. 7. Cooperative working arrangements with city, county, or state planners, legal counsel and financial consultants in the development and financing of capital improvement programs. 8. Data processing consultation services to include but not limited to: hardware configuration, micro computer augmentation, software selection and internal control reviews in the computer environment. f FIRM PROFILE Williams-Keepers is a local Missouri firm of Certified Public Accountants and management consultants established in 1928. The firm presently has Missouri offices in Columbia, Jefferson City, Mexico, and Roll.a. Overall direction of the firm is accomplished by a four-member Management Committee. Operational management of each office is assigned to that office's designated partner-in--charge. Additional committees in the areas of accounting, auditing, management advisory services and taxation provide guidance and direction for the firm. The Jefferson City office will have the primary responsibility for this engagement and the composition of this office-is as follows: Partners 6 Managers 2 Seniors 4 Professional Staff 5 RELATED GOVERNMENTAL EXPERIENCE The accounting methods employed by the City of Jefferson City and the nature of the funds maintained require the firm selected under this proposal to possess substantial Experience and expertise in: 1. Fund accounting and auditing. 2. Profit oriented business accounting and auditing. 3. Non-profit oriented business accounting and auditing. 4. Accounting and auditing of various Federal programs. 5. Accounting and auditing of various State programs. 6. Auditing of accounting systems that utilize EDP equipment. Presently, Williams-Keepers is serving clients in each of these areas, and several governmental units have engaged the firm to audit and to express an opinion on their financial statements. Therefore, our firm has the necessary experience and expertise to complete effectively the audit set forth in this proposal. -6- RELATED GOVERNMENTAL EXPERIENCE (Continued) O'illiams-Keepers has had extensive experience in the auditing of various types of governmental units. Listed below is a representative group of city and other govern- mental audits and official to contact. In addition to opinion audits, we also perform special assignments for these clients on a continuing basis. Name and Location Year(s) Official to Contact Position Telephone # City of Mexico 1984 Mark Pentz City Manager 314-581-2100 Mexico, Missouri 65265 1983 1982 City of Rolla 1984 Leonard Martin City Adm. 314-364-1835 Rolla, Missouri 65401 1983 City of E1Dorado Springs 1984 Patsy Baker Treasurer 417-876-6150 E1Dorado Springs, Mo. 64744 City of Centralia 1984 Alfred Figuly City Adm. 314-682-2849 Centralia, Missouri 65240 1983 1982 City of St. Robert 1984 Joe Weber City Clerk 314-336-3911. St. Robert, Missouri 65583 1983 1982 City of Macon 1983 Gerald Maloney City Clerk 816-385-3373 Macon, Missouri 63552 1982 1981 City of Trenton 1985 Nick McHargue Mayor 816-359-2013 Trenton, Missouri 64683 1984 Trenton Municipal Utilities 1985 Gary Whorton Manager 816-•359-2281 Trenton, Missouri 64683 1984 1983 Lincoln University 1985 Dr. Thomas Jenkins President 314-751-2325 Jefferson City, Missouri 1984 1983 Northeast Missouri State 1985 Dave Rector Director of 81.6-785-4163 University 1984 Computer Services Kirksville, Missouri 1983 City of Montgomery, 1984 Michael. Johnson City Adm./Clerk 314-564-3160 Montgomery City, Missouri 1983 1982 Name and Location Year(s) Official to Contact Position Telephone # Mik ity of Wellsville 1984 Alvie Tarrants Treasurer 314-684-2184 Wellsville, Missouri 1983 1982 City of Salem 1983 Nadine Victor City Clerk 314-729-4117 Salem, Missouri 1982 City of Owensville 1983 Jim Biestelkamp City Clerk 314-437-2812 Owensville, •Missouri 1982 This list does not include audits of special districts and various audits of agencies and divisions of the Federal government, all which we have also performed. Om -8 AUDI1 STAFFING, ESTIMATED HOURS REQUIRED AND FEES We consider this engagement a very important project and will provide services and assistance from resources throughout our entire organivation. Consistent with our policy, the audit and all related services will be under the overall supervision of Emil G. Ortmeyer, engagement partner, in the Jefferson City office with consultant services from other offices as required. In addition to our professional staff the services of Linda Smith, CPA, manager, of our in-house data processing department will be utilized in those areas which require expertise in data processing. The audit field work will be directly supervised by Emil G. Ortmeyer, partner in our Jefferson City office. Other members of the professional staff will be used to perform this engagement based upon their prior experience and the experience level needed in various phases of the engagement. At the present time we anticipate using Michael J. Oldelehr, CPA, manager, and staff accountants as needed. Resumes of Messrs. Ortmeyer and Oldelehr are included for your review. These same key personnel would be used for each of the subsequent years unless some unforeseen circumstance would arise. Estimated hours required - Estimated Range Classification Hours__ of Fees Partner 24 $ 65-•80 Manager 80 $ 40-•55 Professional Staff 350 $ 15--35 Our fees are based upon hourly per diem charges for each classification of per- sonnel. The maximum audit fee for each of the three (3) years with annual renewal for the two (2) subsequent years follows: FYE Maximum 1985 $13,250 1986 $14,200 1987 $15,300 This maximum fee does not cover any unusual circumstances that could possibly develop whereby substantial additional work would be required. If such conditions develop, we would review our findings with the appropriate administrative person- ' nel. We would not proceed upon any additional work without prior approval. EMIL G. ORTMEYER JR. , CPA RESUME Emil G. Ortmeyer, Jr. graduated from Lincoln University in 1974 with a Bachelor of Science degree in accounting. After graduation, he was employed by Williams- Keepers and successfully completed the CPA examination in Missouri in 1979. He is a member of the American Institute of Certified Public Accountants (AICPA), the Missouri Society of Certified Public Accountants (MSCPA) and the Central Chapter of MSCPA. He presently serves on the governmental accounting committee of the Missouri Society of Certified Public Accountants of which he has been an active member for 4 years. Details Employment 9-74 to present Employee of Williams-Keepers achieving audit manager status in gn 1980 and partner status effective January 1, 1986. 1960-1974 Various nonaccounting positions. Education 1969-1974 Lincoln University Degree - B.S. in Accounting G.P.A. - 3.00 Continuing Education Completed 40 hours or more continuing professional education each of the last five (5) years. Included in above are: 1. Governmental Accounting Seminar (MSCPA) dated April 26, 1985. 2. Governmental Accounting Seminar (MSCPA) dated April 21, 1984. 3. Governmental Accounting Seminar (MSCPA) dated April 22, 1983. Personal Birthdate July 26, 1942, Jefferson City, Missouri. Active in Community Services Programs - 1. Jefferson City West Rotary 2. Chamber of Commerce 3. Jefferson City Area United Way Committee i -10- Related Work Experience Related audit experience includes audits of the following entities: Missouri School districts (included any federal programs administered) Various non-profit organizations Governmental agencies and programs Municipalities Colleges and universities CPA Certificate # 6537 _11_ MICHAEL J. OLDELEHR, CPA AUL RESUME Michael J. Oldelehr graduated summa cum laude from Lincoln University in 1976 with a Bachelor of Science degree, majoring in accounting. He was employed by WILLIAMS- KEEPERS in 1975 and completed the CPA examination in 1978. He is a member of the American Institute of Certified Public Accountants (AICPA), the Missouri Society of Certified Public Accountants (MSCPA) , the Central Missouri Chapter of Missouri Society of Certified Public Accountants and the Florida Insitute of Certified Public Accountants. Details Employment 10-75 - present Employee of Williams-Keepers achieving audit manager status in 1983. 1970 - 1975 Various non-accounting positions while attending school. Education 1968 1972 Valedictorian - Fatima High School, Westphalia, Missouri _ 1972 1973 Attended University of Missouri Rolla 1973 - 1976 Lincoln University, graduating summa cum laude in 1976 with a Bachelor of Science degree in accounting Continuing Education Completed 40 or more hours of continuing professional education each of the last five (5) years including several governmental courses. Personal Birthdate June 27, 1954, Jefferson City, Missouri. Related Work Experience Related audit experience includes audits of the following entities: Missouri school districts (included any federal. programs administered) Various non-profit organizations Governmental agencies and programs Municipalities CPA Certificate # 6110 -12-