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HomeMy Public PortalAboutResolution 2019-24, Accepting A Proposal From Office Of The Auditor of State To Conduct Annaul Examination Of Financial Operations Of The City For Fiscal Year Ended June 30, 2019 RESOLUTION 2019-24 A RESOLUTION ACCEPTING A PROPOSAL FROM THE OFFICE OF THE AUDITOR OF STATE TO CONDUCT THE ANNUAL EXAMINATION OF THE FINANCIAL OPERATIONS OF THE CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2019 WHEREAS, The City of Riverdale("City") is required by Chapter 11 of the Code of Iowa and Office of Auditor of State to conduct an annual examination of the operations of the City each year; and, WHEREAS, The Office of the Auditor of State("Auditor") has conducted the annual examinations of the City for the prior two years and has done so at a reasonable cost and provided effective feedback and met all requirements of the Code of Iowa; and, WHEREAS, The Auditor has proposed a cost estimate and timetable to the City for the examination of the City's operations for the fiscal year ending June 30, 2019, with said estimate being within a range from $4,900 to $5,300, in addition to the required $175 filing fee; and, WHEREAS, in lieu of soliciting proposals for a competent, external auditor, City staff find the proposed estimate of costs to be reasonable, and the processes and findings of the Auditor for the past two years to be useful and satisfactory, the City Clerk/Treasurer and City Administrator recommend Council acceptance of the Auditor's proposal. NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF RIVERDALE, SCOTT COUNTY, IN THE STATE OF IOWA: Section 1. That the proposal from the Auditor of State, State of Iowa,dated May 22, 2019, and providing an estimate of cost ranging from$4,900 to $5,300, in addition to the required$175 filing fee, shall become part of and is hereafter a part of this Resolution. Section 2. That the City Council accepts the recommendations of its City Clerk/Treasurer and City Administrator to accept said proposal from the Auditor of State. Section 3. That the City Clerk/Treasurer is authorized to execute acceptance of said proposal and so notify the Auditor of State. ASSED AND APPROVED this 23 day of .312X-c- , 2019. — IV- Ike Bawden,Mayor ATTEST: Ronal ullerlove, City Clerk Prepared by City Administrator Tim Long July 18, 2019 ,,,,u,N,, OFFICE OF AUDITOR OF STATE �ptt OFSI'4 ti;;%. � � . STATE OF IOWA O� 9j + State Capitol Building `� ����1�'' Rob Sand 47 -\ 671 Des Moines, Iowa 50319-0004 h,v') ? a s Auditor of State 1441 S1"-----;0 Telephone(515)281-5834 Facsimile(515)281-6518 May 22, 2019 r4*-) RECEIVED •'��/3 .7 �1� c►r Tim Long, City Administrator City of Riverdale 110 Manor Drive Riverdale, Iowa 52722 Dear Mr. Long: You have requested an estimate of the cost of an annual examination for the operations of the City of Riverdale for the year ending June 30, 2019. This letter will provide the estimate, as well as a number of reasons why this office could furnish valuable assistance and services to your City. Our practice consists entirely of governmental audits and examinations. Therefore, we possess a broad knowledge of practices and procedures utilized in other governmental units. This experience will be used to assist the City by proposing alternative practices or procedures, where appropriate, which may be more effective or cost-efficient than those presently used by the City. We will tailor the scope of our examination procedures according to the strengths in the system of internal controls existing at the City. The results of our procedures and our recommendations, if any, will be communicated to applicable City officials in a report. Our evaluation procedures should provide management with some excellent suggestions for improving operating procedures. We are very aware of the need to be cost efficient in our engagement and equitably bill for our services. Our fees are based upon the time spent on an engagement at hourly rates estimated to range from $55.25 to $96.50 per hour, depending on the level of experience and training of the individual assigned. We also bill for out-of-pocket expenses, at cost, and for the statutory filing fee. It is our practice to submit for payment one bill upon completion and release of the examination report. We anticipate performing fieldwork for the annual examination in the Fall of 2019. Report preparation and office review will be performed with delivery of an e-mailed copy of the final report by March 31, 2020. While these hourly rates may change from year to year, any changes in the hourly rates will not affect the total fees proposed by year. City of Riverdale May 22, 2019 Page 2 Based upon the information available, we estimate the cost to perform the annual examination for the year ending June 30, 2019, will range from $4,900 to $5,300, except as specifically agreed by the City of Riverdale and the Office of Auditor of State. This estimate does not include the required filing fee of$175 as provided for under Iowa Code section 11.5, subsection 10. The actual bill may vary depending on the actual number of hours required to complete the work, although any assistance provided by City personnel would help reduce the final cost. In addition to providing examination services to the City of Riverdale, you may request we perform additional services not addressed in this proposal. If this occurs, we will communicate with you regarding the scope of the additional services and the estimated fees. The Office of Auditor of State is actively involved throughout the year in providing technical guidance, assistance and training to government officials, employees and auditors. Our experience in these areas and our extensive local government auditing experience would be used to assist the City of Riverdale, both currently and in subsequent years, in operating as efficiently and as effectively as possible. We recognize the City may be able to contract for this examination at a lower fee. However, as previously stated, we believe the Office of Auditor of State is the leading authority to help assure the proper conduct of City affairs, which is the ultimate obligation of all City officials. We would fulfill our joint responsibilities in the most cost- effective manner possible. We-look-forward-to-the-opportunity-to-continue to_provide_-our-services to the.-City_of Riverdale. Please feel free to contact me or Ernie Ruben if we can provide any additional information. Sincerely, Marlys K. Gaston, CPA Deputy Auditor of State MKG/dld A•;'EPTAN'.- it.-.........4! / By,� Title MM)o' Date ei'2-3 '19