Loading...
HomeMy Public PortalAboutResolution 2020-12, Approving Agreement With Bohnsack And Frommert To Provide Accounting Services For City Until June 30, 2021 RESOLUTION 2020- 12 A RESOLUTION APPROVING AN AGREEMENT WITH BOHNSACK AND FROMMERT TO PROVIDE ACCOUNTING SERVICES FOR THE CITY OF RIVERDALE UNTIL JUNE 30, 2021 WHEREAS, the City of Riverdale, Iowa ("City") is a Municipal Corporation, organized and operating under the laws of the State of Iowa; WHEREAS, the City Council must assure that the financial work of the City is completed by a competent employee or firm, and; WHEREAS, the Mayor and Administrator have reviewed the qualifications of the accounting and auditing firm Bohnsack and Frommelt who perform pubic accounting and auditing work in the State of Iowa, and; WHEREAS, the firm of Bohnsack and Frommelt have presented a proposal attached as Exhibit A to complete the work of accounts payable, bank reconciliation, financial reporting, utility billing and payroll until June 30, 2021 . NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Riverdale, Iowa authorizes the Mayor, Clerk and City Administrator to execute the agreement and take appropriate action to allow the firm Bohnsack and Frommelt to begin performing the accounting and financial work of the City as soon as possible. assed and approved this 28th day of January 2020. • hael Bawden, ayor ATTEST: V,4 a-14r 4 Aj) /(7,41 Mary Fr, nces Blevins, City Clerk-Treasurer City of Riverdale,Iowa 110 Manor Drive,Riverdale, Iowa 52722•(563)355-2511 •www.riverdaleiowa.com BBohnsack & Frommelt LLP Certified Public Accountants 1500 River Drive,Suite 200 Moline,Illinois 61265 www.governmentalservice.com January 14, 2020 To the Honorable Mayor and Members of City Council City of Riverdale, Iowa 52722 Attention: Lisa Kotter, City Administrator We are pleased to provide you with the professional services described below. This letter confirms our understanding of the terms and objectives of our engagement and the nature and limitations of the services we will provide. The engagement between you and our firm will be governed by the terms of this Agreement. Engagement Objective and Scope We will provide technical advice and assistance to the City of Riverdale, Iowa as requested by you during the year. This service includes all calls and meetings as well as specific tasks and projects requested for the City to enter, reconcile, report and maintain the financial records and systems of the City. Specifically, we will provide: • Disbursements/Accounts Payable: The City will receive all invoices, review invoices for propriety and account code expenditures. We will obtain the coded invoices, enter the invoices into the financial system and generate checks for each board meeting. The checks and supporting invoices will be provided to the City Administrator for the Mayor and/or members of Council to review and to sign. The City will distribute the invoices for payment after approval. Our understanding is the City pays bills twice a month. • Payroll: The City will maintain all personnel files including approved hourly rates and benefits. The City will gather completed and approved timesheets of all hourly employees. We will process payroll for the City. All City payroll checks will be provided to the City Administrator for the Mayor's signature and distribution. We will prepare payroll reports from the City's financial system and electronically file the necessary payroll returns. Our understanding is the City does not currently have a payroll calendar. We will work with the City Administrator to establish a payroll calendar. • Utility Billing and Accounting: The City will obtain the sanitary sewer consumption reports from Iowa Water. Quarterly, we will generate sanitary sewer bills for the City to mail. We will also establish a process to maintain utility billing records to report accounts receivable and delinquent accounts. All utility billing receipts will be receipted by the City. • Bank Reconciliations: We will prepare monthly bank reconciliations of the City's depository and investment accounts. The City Administrator will review the bank reconciliations. City of Riverdale, Iowa 21 • Other Services: We will assist the City with ensuring the City's chart of accounts follows the state of Iowa municipal chart of accounts requirements. We will prepare a financial reporting packet for the City Administrator to use for reporting to City Council. We will assist the City Administrator with quarterly financial analysis. We will prepare a City external financial reporting calendar to ensure compliance with state requirements. We will have a Partner of the Firm on site during the annual review from the State Auditor. In addition, when the State Auditor staff discuss the report and findings from the procedures performed a Partner of the Firm will be present. As a condition to our performing the services described above, you agree to: • make all management decisions and perform all management functions • designate an individual who possesses suitable skill, knowledge, and/or experience, preferably within senior management, to oversee the services; • evaluate the adequacy and results of the services performed; • establish and maintain internal controls and monitor ongoing activities with respect to the services provided; and • accept responsibility for the results of the services; You agree that management is responsible for the proper recording of transactions in the records, the safekeeping of assets, and the accuracy of the financial statements. This engagement is limited to the professional services outlined above and on Attachment A. Bohnsack & Frommelt LLP, in its sole professional judgment, reserves the right to refuse to take any action that could be construed as making management decisions or performing management functions. The professional services will be performed based on the information that you and others provide to us. We will not verify or audit the information that you and others provide to us. Our engagement cannot be relied upon to disclose errors, theft, fraud, or illegal acts. However, we will inform the appropriate level of management of any material errors, and of any evidence or information that comes to our attention during the performance of our engagement that fraud may have occurred. In addition, we will report to you any evidence or information that comes to our attention during the performance of our engagement regarding illegal acts that may have occurred. In the event we are requested to prepare financial reports or financial summaries, we will prepare the requested reports from information the City provides. The engagement approach and client responsibilities are included in Attachment A if we are requested to provide financial reports or summaries. By signing this Agreement, you acknowledge and agree to Attachment A requirements for financial statement preparation services. The objective of our engagement is to prepare financial statements based upon information that you provide to us. We will utilize information provided to us as the representations of management, without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with U.S. generally accepted accounting principles or the prescribed basis requested. The prepared financial statements and summaries will not be accompanied by a report. City of Riverdale, Iowa 31 Timing of Engagement This agreement will become effective upon City Council approval in January 2020 and remain in effect through June 30, 2021. This agreement may be renewed and extended on a year-to-year basis on the terms and conditions as set forth herein as agreed to by both parties annually. Should the City wish not to renew this agreement, written notice shall be given to Bohnsack & Frommelt LLP not less than thirty days prior to the expiration date. Bohnsack & Frommelt LLP and the City both may voluntarily resign from this agreement before the expiration of this contract. Professional Fees Our professional fee for the services described above is $2,500 per month. Services outside of the scope of this agreement will be billed at $75 per hour. This fee is based upon the complexity of the work to be performed, and our professional time to complete the work, as well as out-of-pocket expenses. In addition, this fee depends upon the timely delivery, availability, quality, and completeness of your records.You agree that you will deliver all records requested and respond to all inquiries made by our staff to complete this engagement on a timely basis. We will track the hours incurred to perform the procedures above. Both parties agree to meet in Spring 2021 to determine the hourly plan and associated billing to prepare for the possible renewal of the contract. We appreciate the opportunity to be of service to City of Riverdale, Iowa. Please date and sign the enclosed copy of this Agreement and return it to us to acknowledge your agreement with its terms. Respectfully, Bohnsack& Frommelt LLP ,. Mia Frommelt, Partner *************************************************************** RESPONSE: This letter correctly sets forth our understanding. City of Riverd -, o v= Approved b • . Title: 7 � 0, AZtVilin V Date: I I �q/ D I?eStf'tc 1 THIS PAGE INTENTIONALLY LEFT BLANK Attachment A January 14,2020 City of Riverdale, Iowa Engagement Approach and Client Responsibilities for Financial Statement Preparation In the event we are requested to prepare financial reports or financial summaries, we will prepare the requested reports from information the City provides. The objective of our engagement is to prepare financial statements based upon information that you provide to us. We will utilize information provided to us as the representations of management, without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with U.S. generally accepted accounting principles or the prescribed basis requested. The prepared financial statements and summaries will not be accompanied by a report. Engagement Approach We will conduct our engagement in accordance with the Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants ("SSARS") and comply with the AICPA's Code of Professional Conduct, including the ethical principles of integrity, objectivity, professional competence, and due care. Financial statement preparation differs significantly from an engagement to compile financial statements, or a review or audit of financial statements. Compilation procedures require the accountant to consider whether the financial statements appear to be appropriate in form and free from obvious material misstatements. A financial statement preparation does not include such procedures. In addition, a financial statement preparation also does not contemplate performing inquiry, analytical procedures, or other procedures ordinarily performed in a review. Finally, a financial statement preparation does not contemplate obtaining an understanding of the entity's internal controls, assessing fraud risk, testing accounting records by obtaining sufficient appropriate audit evidence through inspection, observation, confirmation, or the examination of source documents (for example, cancelled checks or bank images), or other procedures ordinarily performed in an audit. We are not required to, and will not, verify the accuracy or completeness of the information you will provide to us for the engagement or otherwise gather evidence for the purpose of expressing an opinion or a conclusion. Accordingly, we will not express an opinion or a conclusion or provide any assurance on the financial statements. Each page of the financial statements will include a legend with the following items: • A statement indicating that the financial statements have not been subjected to an audit or review or compilation engagement, and that no assurance is provided on them. • If applicable, a statement on whether the financial statements contain any known departures from U.S. generally accepted accounting principles (or other applicable financial reporting framework), including inadequate disclosure. • If applicable, a statement on whether the financial statements omit substantially all required disclosures. If we are unable to include a legend on each page, we will issue a disclaimer that makes clear that no assurance is provided on the financial statements. If we become aware of records, documents, explanations, or other information, including significant judgments, used in preparation of the financial statement that are incomplete, inaccurate, or otherwise unsatisfactory, we will bring this information to the attention of management and request additional or corrected information. 1 Attachment A January 14, 2020 City of Riverdale, Iowa Engagement Approach and Client Responsibilities for Financial Statement Preparation Our engagement cannot be relied upon to identify or disclose any financial statement misstatements, including those caused by fraud or error, or to identify or disclose any wrongdoing within the entity or noncompliance with laws or regulations. You agree that you are not and will not be entitled to rely on any advice given to you by us unless it is requested and provided in writing. Client Responsibilities The engagement to be performed is conducted on the basis that management acknowledges and understands that our role is to prepare financial statements in accordance with U.S. generally accepted accounting principles or in accordance with a basis of accounting you have specifically requested. Management has the following overall responsibilities that are fundamental to our undertaking the engagement to prepare your financial statements in accordance with SSARS: • the selection of the financial reporting framework to be applied in the preparation and fair presentation of the financial statements; • designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; • preventing and detecting fraud, including the design and implementation of programs and controls to prevent and detect fraud; • ensuring that City of Riverdale, Iowa complies with the laws and regulations applicable to its activities; • ensuring the accuracy and completeness of the records, documents, explanations, and other information, including significant judgments, that you provide to us for the preparation of financial statements; and • providing us with: access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters: additional information that may be requested for the purpose of the preparation of the financial statements; and unrestricted access to persons within City of Riverdale, Iowa of whom we determine necessary to communicate. Your management is also responsible for: • making all management decisions and performing all management functions; • designating an individual who possesses suitable skill, knowledge, and experience, preferably within senior management, to oversee our services; • evaluating the adequacy and results of the services performed; and • accepting responsibility for the results of the services. During the course of the engagement, we may assist management with judgments regarding amounts or disclosures to be reflected in the financial statements. We will discuss any such judgments with you, and you accept responsibility for those judgments. 2 Attachment A January 14, 2020 City of Riverdale, Iowa Engagement Approach and Client Responsibilities for Financial Statement Preparation You also acknowledge that independence is not required in order to provide financial statement preparation services in accordance with the SSARS. The performance of the preparation services may impair independence unless safeguards are met. We are available to discuss these safeguards with you if you anticipate the need for services that require independence, such as an audit or review of financial statements. 3