HomeMy Public PortalAboutORD15963BILL NO. 2019-056
SPONSORED BY Councilman Mihalevich
ORDINANCE NO. 15°1 (o 3
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH EVERS &
COMPANY, CERTIFIED PUBLIC ACCOUNTANTS, LLC FOR AUDIT SERVICES.
WHEREAS, Evers & Company, Certified Public Accountants, LLC has become the
apparent lowest and best proposal for audit services.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF
JEFFERSON, MISSOURI, AS FOLLOWS:
Section 1. The proposal of Evers & Company, Certified Public Accountants, LLC is
declared to be the best proposal meeting specifications and is hereby accepted.
Section 2. The Mayor and City Clerk are hereby authorized to execute an agreement
with Evers & Company, Certified Public Accountants, LLC for audit services.
Section 3. The agreement shall be substantially the same in form and content as
that agreement attached hereto as Exhibit A.
Section 4. This Ordinance shall be in full force and effect from and after the date of
its passage and approval.
Passed: DCCT H2-0'' A l , aOl QI Approved: L o
Presiding Officer
ATTEST:
C Clerk
Mayor Carrie Tergin
APPROVED AS TO FORM:
EXHIBITA
CITY OF JEFFERSON
CONTRACT FOR PROFESSIONAL SERVICES
THIS CONTRACT, made and entered into the date last executed by a party as
indicated below, by and between the City of Jefferson, a municipal corporation of the
State of Missouri, hereinafter referred to as the "City", and Evers & Company,
Certified Professional Accountants, LLC, hereinafter referred to as the "Auditor".
WITNESSETH:
THAT WHEREAS, the City desires to engage the Auditor to render certain
services for the City's annual audits, hereinafter described in Exhibit A.
WHEREAS, Auditor has made certain representations and statements to the
City with respect to the provision of such services and the City has accepted said
proposal to enter into a contract with the Auditor for the performance of services by
the Auditor.
NOW THEREFORE, for the considerations herein expressed, it is agreed by
and between the City and the Auditor as follows:
1. Scope of Services. The City agrees to engage the services of the Auditor to
render services for the City's annual audits, hereinafter described in Exhibit A. In
the event of a conflict between this agreement and any attached exhibits, the
provisions of this agreement shall govern and prevail.
2. Compensation. The City agrees to pay the Auditor for services rendered
under this contract:
1St Year - $54,700.00
2nd Year - $56,340.00
3rd Year - $58,030.00
No change in compensation shall be made unless there is a substantial and
significant difference between the work originally contemplated by this agreement
and the work actually required.
3. Term. This contract shall commence on the 1st day of November, 2019, and
continue until the 31st day of October, 2020. This agreement shall automatically
renew for two (2) additional one (1) year renewal periods unless the City provides
Auditor a written notice of non -renewal at least thirty (30) days prior to the first day
of a renewal period.
4. Additional Services. The City may add to Auditor services or delete
therefrom activities of a similar nature to those set forth in Exhibit A, provided that
the total cost of such work does not exceed the total cost allowance as specified in
paragraph 2 hereof. The Auditor shall undertake such changed activities only upon
the direction of the City. All such directives and changes shall be in written form
and approved by the Director of Finance and shall be accepted and countersigned by
the Auditor or its agreed representatives.
5. Existing Data. All information, data and reports as are existing, available
and necessary for the carrying out of the work, shall be furnished to the Auditor
without charge by the City, and the City shall cooperate with the Auditor in every
reasonable way in carrying out the scope of services. The Auditor shall not be liable
for the accuracy of the information furnished by the City.
6. Personnel to be Provided. The Auditor represents that Auditor has or will
secure at its expense all personnel required to perform the services called for under
this contract by the Auditor. Such personnel shall not be employees of or have any
contractual relationship with the City except as employees of the Auditor. All of the
services required hereunder will be performed by the Auditor or under the Auditor's
direct supervision and all personnel engaged in the work shall be fully qualified and
shall be authorized under state and local law to perform such services. None of the
work or services covered by this contract shall be subcontracted except as provided in
Exhibit A without the written approval of the City.
7. Failure to Perform. Cancellation. If, through any cause, the Auditor shall fail
to fulfill in timely and proper manner its obligations under this contract, or if the
Auditor shall violate any of the covenants, agreements, or stipulations of this
contract, the City shall thereupon have the right to terminate this contract by giving
written notice to the Auditor of such termination and specifying the effective date
thereof, at least five (5) days before the effective day of such termination. The
Auditor may without cause terminate this contract upon 30 days prior written notice.
In either such event all finished or unfinished documents, data, studies, surveys,
drawings, maps, models, photographs, and reports or other materials prepared by
the Auditor under this contract shall, at the option of the City, become its property,
and the compensation for any satisfactory work completed on such documents and
other materials shall be determined. Notwithstanding the above, the Auditor shall
not be relieved of liability to the City for damages sustained by the City by virtue of
any such breach of contract by the Auditor.
8. Assignment. The Auditor shall not assign any interest in this contract, and
shall not transfer any interest in the same (whether by assignment or novation),
without prior written consent of the City thereto. Any such assignment is expressly
subject to all rights and remedies of the City under this agreement, including the
right to change or delete activities from the contract or to terminate the same as
provided herein, and no such assignment shall require the City to give any notice to
any such assignee of any actions which the City may take under this agreement,
2
though City will attempt to so notify any such assignee.
9. Confidentiality. Any reports, data or similar information given to or
prepared or assembled by the Auditor under this contract which the City requests to
be kept as confidential shall not be made available to any individual or organization
by the Auditor without prior written approval of the City.
10. Nondiscrimination. The Auditor agrees in the performance of the contract
not to discriminate on the grounds or because of race, creed, color, national origin or
ancestry, sex, religion, handicap, age or political affiliation, against any employee of
consultant or applicant for employment and shall include a similar provision in all
subcontracts let or awarded hereunder.
11. Independent Contractor. The Auditor is an independent contractor and
nothing herein shall constitute or designate the Auditor or any of its employees as
agents or employees of the City.
12. Benefits not Available. The Auditor shall not be entitled to any of the
benefits established for the employees of the City and shall not be covered by the
Workmen's Compensation Program of the City.
13. Liability. The parties mutually agree to the following:
a. In no event shall the City be liable to the Auditor for special, indirect, or
consequential damages, except those directly or approximately caused
by the City arising out of or in any way connected with this contract.
b. The Auditor shall indemnify and hold the City harmless from and
against all claims, losses and liabilities arising out of personal injuries,
including death, and damages to property to the extent caused by any
negligent act or omission on the part of the Auditor related to the
services performed under this contract.
14. Insurance. Auditor shall provide, at its sole expense, and maintain during
the term of this agreement commercial general liability insurance with a reputable,
qualified, and financially sound company licensed to do business in the State of
Missouri, and unless otherwise approved by the City, with a rating by Best of not less
than "A," that shall protect the Auditor, the City, and the City's officials, officers, and
employees from claims which may arise from operations under this agreement,
whether such operations are by the Auditor, its officers, directors, employees and
agents, or any subcontractors of Auditor. This liability insurance shall include, but
shall not be limited to, protection against claims arising from bodily and personal
injury and damage to property, resulting from all Auditor operations, products,
3
services or use of automobiles, or construction equipment at a limit of $500,000 Each
Occurrence, $3,000,000 Annual Aggregate; provided that nothing herein shall be
deemed a waiver of the City's sovereign immunity. An endorsement shall be
provided which states that the City is named as an additional insured and stating
that the policy shall not be cancelled or materially modified so as to be out of
compliance with the requirements of this section, or not renewed without 30 days
advance written notice of such event being given to the City.
15. Documents. Reproducible copies of tracings and maps prepared or obtained
under the terms of this contract shall be delivered upon request to and become the
property of the City upon termination or completion of work. Copies of basic survey
notes and sketches, charts, computations and other data prepared or obtained under
this contract shall be made available, upon request, to the City without restrictions
or limitations on their use. When such copies are requested, the City agrees to pay
the Auditor its costs of copying and delivering same.
16. Nonsolicitation. The Auditor warrants that they had not employed or
retained any company or person, other than a bona fide employee working solely for
the Auditor, to solicit or secure this contract, and that they have not paid or agreed to
pay any company or person, other than a bona fide employee working solely for the
Auditor, any fee, commission, percentage, brokerage fee, gifts, or any other
consideration, contingent upon or resulting from the award or making of this
contract. For breach or violation of this warranty, the City shall have the right to
annul this contract without liability, or, in its discretion, to deduct from the contract
price or consideration, or otherwise recover the full amount of such fee, commission,
percentage, brokerage fee, gifts, or contingent fee.
17. Books and Records. The Auditor and all subcontractors shall maintain all
books, documents, papers, accounting records and other evidence pertaining to costs
incurred in connection with this contract, and shall make such materials available at
their respective offices at all reasonable times during the contract and for a period of
three (3) years following completion of the contract.
18. Delays. The Auditor shall not be liable for delays resulting from causes
beyond the reasonable control of the Contractor; the Auditor has made no
warranties, expressed or implied, which are not expressly set forth in this contract;
and under no circumstances will the Auditor be liable for indirect or consequential
damages.
19. Illegal Immigration.
Prior to commencement of the work:
a. Auditor shall, by sworn affidavit and provision of documentation, affirm
its enrollment and participation in a federal work authorization
4
program with respect to the employees working in connection with the
contracted services.
b. Auditor shall sign an affidavit affirming that it does not knowingly
employ any person who is an unauthorized alien in connection with the
contracted services.
c. If Auditor is a sole proprietorship, partnership, or limited partnership,
Auditor shall provide proof of citizenship or lawful presence of the
owner.
20. Federal Funds to be Used. The City of Jefferson is a recipient of federal grant
funds. Therefore, the grant requirements in Exhibit B shall be fully considered in
preparing responses and performing work under any resulting award.
21. Notices. All notices required or permitted hereinunder and required to be in
writing may be given by first class mail addressed to the City of Jefferson
Department of Finance, 320 East McCarty, Jefferson City, Missouri, 65101, and
Evers & Company, Certified Professional Accountants, LLC, 520 Dix Road, Jefferson
City, Missouri, 65109. The date and delivery of any notice shall be the date falling
on the second full day after the day of its mailing.
CITY OF JEFFERSON, MISSOURI
Carrie Tergin, Mayor
Date: /0 -2-21 1
ATTEST:
iTxP444A.t,
EVERS & COMPANY, CERTIFIED
PROFESSIONAL ACCOUNTANTS,
LLC
Title. GO ai,t,toa
Date: Q/-1 1 q
ATTEST:
Cit37 Clerk ' Title:
APPROVED AS TO FORM:
5
EXHIBIT A
SPECIFICATIONS
CITY OF JEFFERSON
AUDIT SERVICES
The City of Jefferson, Missouri, is soliciting competitive sealed proposals for the city's annual
audit for the fiscal year ending October 31, 2019. It is the policy of the City to procure
professional accounting services through a process of negotiation preceded by:
1. An evaluation and comparison of past performance, appropriate references, prior
experience in other municipalities and expertise related to the City's specifications.
2. The identification of available professional services that may or may not have been used
by the city previously.
In light of this policy, specifications pertaining to the scope of the city's audit are listed below as
well as the criteria that will be used in evaluating the qualifications of firms submitting
proposals.
DESCRIPTION OF CITY AND RECORDS TO BE AUDITED
1. The City of Jefferson, Missouri, is Home Rule Charter and operates under the
Mayor/Council/Administrator form of government. The City's population is
approximately 43,000 and the fiscal year 2018 general fund and total budgets are
$32,807,390 and $65,435,038 respectively.
2. The funds and account groups in existence at November 1, 2018 are as follows:
Government Fund Types
General Fund
Special Revenue Funds
Parks & Recreation
Police Training
Lodging Tax Fund
JC Veteran's Plaza Trust Fund
City Hall Trust Fund
USS Jefferson City Submarine Trust
Woodland Cemetery Trust
Capital Projects Funds
Capital Improvement Sales Tax
1
Proprietary Fund Types
Enterprise Funds
Airport Fund
Parking Fund
Transit Fund
Wastewater Fund
Internal Service Fund
Workers Compensation Self
Insurance Fund
Self -Funded Health Insurance Fund
Fiduciary & Agency Fund Type
Tax Increment Financing Fund
3. The City financial records are computerized using Springbrook Financial Software on PC
servers with interfaced windows based personal computers with file transfer
capabilities.
SCOPE OF SERVICES
The audit shall include an examination of the financial and other records of the various
departments and funds of the City in accordance with U.S. generally accepted government
auditing standards, the laws of the State of Missouri, the standards for financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United
States; the Single Audit Act Amendments of 1996; and the provisions of the Uniform Grant
Guidance; and determination of major programs in accordance with the Uniform Grant
Guidance.
REPORTS REQUIRED
The following reports are required at the completion of the audit:
• An expression of the auditor's opinion on the fair presentation of the city prepared
general purpose financial statements in conformity with generally accepted accounting
principles (GAAP).
• A report on internal control and compliance in accordance with the Government
Auditing Standards issued by the Comptroller General of the United States; the Single
Audit Act Amendments of 1996; and the provisions of the Uniform Grant Guidance.
• The City of Jefferson has received the Certificate of Achievement for Excellence in
Financial Reporting from the Government Finance Officers Association for the past
several years. The audit shall include assistance to the City for compliance with all
current and new General Accounting Standards Board (GASB) regulations.
• A report of comments and recommendations to management.
• Any other reports or schedules which may be required by the Uniform Grant Guidance.
• The auditors will deliver the above-mentioned reports no later than April 10, to the
Director of Finance. During the audit, the auditor may be required to meet with various
elected or appointed officials to discuss the audit or related matters, a post -audit
conference with the Director of Finance to review the financial statements, compliance
reports and a draft of the report of comments and recommendation will be held no later
than April 1. The auditor may be expected to present copies of the reports and a
2
general explanation to the Mayor and City Council at an agreed upon regular council
meeting.
USE OF CITY FACILITIES AND PERSONNEL
Final Trial Balances will be available on or about January 10. The City will provide an adequate
work area for the auditing staff. City staff will be available to answer questions and for
consultation as needed. Minor clerical assistance will be provided (typing of confirmations,
refilling of documents, etc.) by the City. Information Technology Services will provide access to
appropriate files and programs for auditors' use.
3
•
CITY OF
TE PPE
F
Jefferson City, Missouri
THE THREE YEARS Edi
CTOB R 31, 2019, 2020 AND 2021
Presented By:
EVERS & COMPANY
Certified .Public Accountants, L.L.C.
520 Dix Road
Jefferson City, Missouri 65109
Contact:
Jo Moore, CPA
Audit Partner
(573) 635-0227
TABLE OF CONTENTS
PAGE #
EVALUATION OF AUDIT PROPOSALS CRITERIA
PROPOSAL SHEET (Pricing)
SCOPE 1-2
Audit Objectives 2 - 3
Audit Procedures — General 3 - 4
Audit Procedures — Internal Controls 4
Audit Procedures — Compliance 5
Management Responsibilities 5 - 7
Audit Administration, Fees, and Other 7 - 10
PROFILE OF THE FIRM 11 - 12
STAFF RESUMES & EXPERIENCE 13 - 16
GOVERNMENT RELATED CPE HOURS 17
GOVERNMENTAL EXPERIENCE 18
ADDITIONAL PROFESSIONAL SERVICES 19
FIRM QUALITY CONTROL 20
PROFESSIONAL ASSOCIATIONS 21
CHECKLIST OF INFORMATION TO BE PREPARED
BY THE CITY OF JEFFERSON 22 — 23
INDEX REFERENCING LOCATION OF RESPONSES TO
PROPOSAL CRITERIA
1. Prior auditing experience:
A. Does the firm have appropriate, specific references of
current government clients?
B. What is the firm's experience in municipal auditing?
C. Does the firm provide a listing of representative clients in
Missouri?
. Other services available:
REFER TO
PAGE(S)
18
18
18
A. Does the firm offer consulting services in areas such as data
processing, financial management systems, fixed assets
updates and GASB pronouncements? 19
B. Is the firm available for year-round consultation? 9
C. What emphasis did the firm give to the "letter of comments"
or "management letter" regarding the City's operations and
procedures?
3. Qualifications of staff to be assigned to the audit:
A. What are the municipal auditing qualifications for the staff to
be assigned to the audit? Has specific experience been indicated?
B. Does the firm provide its staff with continuing education in the
governmental sector?
C. Does the firm comment on continuity of staff to be assigned to
the City on future engagements?
D. What is the size of the firm or office?
E. What % of audit team is lower level staff or trainees
4
11-16
17
17
11
10 & 17
4. Commitment to governmental accounting and auditing:
A. Is the firm involved in governmental organizations/agencies
such as the GFOA and Missouri Municipal League?
CAFR participation?
REFER TO
PAGE(S)
21
B. Did the firm demonstrate a knowledge of and commitment to
generally accepted accounting principles as promulgated by
The AICPA, GFOA, GASB? 17, 20 - 21
C. Does the firm take part in seminars and training programs as
Instructors/participants? 17
D. Did the film indicate an appreciation for and knowledge of the
City's needs? 1 — 10
5. Audit Approach:
1. Is the audit approach specific and tailored to the City? 1 - 10
What is the firm's attitude toward assistance from City
employees during the audit? 22 - 23
Proposal Response
Offeror must complete, sign and return this document with his proposal information.
CITY OF JEFFERSON
Cost with City Preparation & Printing of
YEAR Comprehensive Annual Financial Report
1.2018-2019 $ 54,700
2.2019-2020 $ 56,340
3.2020-2021 $ 58,030
TOTAL COST THREE YEARS $ 169,070
Do you represent a disadvantaged business enterprise? YES NO X
Do you represent a woman owned business enterprise? YES NO X
NAME OF COMPANY: Evers and Company, CPA's, LLC
AGENT AND TITLE: Jo L. Moore, Partner
ADDRESS: 520 Dix Road
Jefferson City, MO 65109
TELEPHONE: 573-635-022
BIDDER SIGNATURE '2; dy 42-t,,
Form of Business: Sole Proprietorship X Partnership Corporation
NOTICE TO BIDDERS
_Limited Liability Corporation
Section 285.525-285.550 RSMo Effective January 1, 2009
Effective January 1, 2009 and pursuant to RSMO 285.530 (1), No business entity or employer shall
knowingly employ, hire for employment, or continue to employ an unauthorized alien to perform
work within the state of Missouri.
As a condition for the award of any contract or grant in excess of five thousand dollars by the state
or by any political subdivision of the state to a business entity, or for any business entity receiving a
state administered or subsidized tax credit, tax abatement, or loan from the state, the business entity
shall, by sworn affidavit and provision of documentation, affirm its enrollment and participation in
a federal work authorization program with respect to the employees working in connection with the
contracted services. Every such business entity shall sign an affidavit affirming that it does not
knowingly employ any person who is an unauthorized alien in connection with the contracted
services. [RSMO 285.530 (2)]
An employer may enroll and participate in a federal work authorization program and shall verify the
employment eligibility of every employee in the employer's hire whose employment commences
after the employer enrolls in a federal work authorization program. The employer shall retain a copy
of the dated verification report received from the federal government. Any business entity that
participates in such program shall have an affirmative defense that such business entity has not
violated subsection 1 of this section. [RSMO 285.530 (4)]
For vendors that are not already enrolled and participating in a federal work authorization program,
E -Verify is an example of this type of program. Information regarding E -Verify is available at
http://www.dhs.gov/xprevorot/programs/gc_1185221678150.shtm.
p p , a
I TONYA M. VANDERSLICE I
I Notary Public • Notary Seal `
State of Missouri. Callaway County f
Commission 1 16343085
4 My Commission Expires Jan 11, 2020 1
Affidavit of Compliance with Section 285.525-285.550 RSMo
For All Agreements in Excess of $5,000.00
Effective January 1, 2009
State of Missouri
County of Cole
) ss
Before me, the undersigned Notary Public, in and for the County of Cole
State of Missouri
, personally appeared
Jo L. Moore, CPA, Evers & Company CPA's, L.L.C.
(name), name of company), (a corporation), (a partnership), (a sole proprietorship), a limited liability company}
and is authorized to make this affidavit, and being duly sworn upon oath deposes and says as follows:
(1) that said company is enrolled in and participates in a federal work authorization
program with respect to the employees working in connection with the contracted services; and
(2) that said company does not knowingly employ any person who is an unauthorized alien
in connection with the contracted services.
The terms used in this affidavit shall have the meaning set forth in Section 285.500 RSMo., et seq.
Documentation of participation in a federal work authorization program is attached to this affidavit.
Signature /7i10_49 -le
Name
Jo L. Moore
II •th
Subscribed and sworn to before me this 6� day of
2.01
O M. Vanduslit i
Notary Pdblic
My commission expiresi,A,A. 11 , Ot 0(X
Elferify
Company ID Number. 236637
iiZaTMi 4 StCi
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4‘-./1k /v kJ.
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I V(RSIT t! \ StRVI CZ Of DMC
Information Required for the E -Verify Program
Information relating to your Company:
Company Name: Evers and Company CPAs LLC
Company Facility Address: 520 Dix Road
Company Alternate
Address:
Jefferson City, MO 65109
County or Parish: COLE
Employer Identification
NumbeNumber: 431121359
r:
North American Industry
Classification Systems
Code: 541
Parent Company:
Number of Employees: 20 to 99
Number of Sites Verified
for: 1
Are you verifying for mere than 1 site? If yes, please provide the number of sites verified for in
each State:
MISSOURI 1 site(s)
Page 12 of 131E -Verify MOU for Employer)Revision Dale 10/29/08
Company ID Number. 236637
SIC4r
d
/, SA �
c•VCJli1F 1! U VICL of DU
To be accepted as a participant in E -Verify, you should only sign the Employer's Section
of the signature page. If you have any questions, contact E -Verify at 888-464-4218.
Employer Evers and Company CPAs LLC
Jo Moore
Name (Please Type or Print) Title
Electronically Signed 08/1012009
Signature
Department of Homeland Security - Verification Division
USCIS Verification Division
Date
Name (Please Type or Print) Title
Electronically Signed 08/10/2009
Signature Date
Page 11 of 131E -Verify MOU tot EmployerlRevision Date 1029/08
Evers & Company, CPA'
Certified Public Accountants and Consultants
July 17, 2019
Honorable Mayor, City Council and
Margie Mueller, Director of Finance
City of Jefferson
320 E. McCarty Street
Jefferson City, MO 65101
SCOPE
L.L.C.
Richard E. Elliott
Dale A. Siebeneck
Jo L. Moore
Wendy M. Renner
Eldon H. Becker, Jr.
Bruce A. Vanderveld
Jessica L. Bridges
Bobbie J. Redmon-Murray
Elmer L. Evers, Emeritus
Jerome L. Kauffman, Emeritus
Keith L. Taylor, Emeritus
We are pleased to confirm our understanding of the services we are to provide the City of
Jefferson for the three years ended October 31, 2019, 2020 and 2021. We will audit the
financial statements of the governmental activities, the business -type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund
information, including the related notes to the financial statements, which collectively comprise
the basic financial statements, of the City of Jefferson as of and for the years ended October 31,
2019, 2020 and 2021. Accounting standards generally accepted in the United States of America
provide for certain required supplementary information (RSI), such as management's discussion
and analysis (MD&A), to supplement City of Jefferson's basic financial statements. Such
information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. As part of our engagement, we will apply certain limited procedures to City
of Jefferson's RSI in accordance with auditing standards generally accepted in the United States
of America. These limited procedures will consist of inquiries of management regarding the
methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We will not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance. The following RSI is
required by generally accepted accounting principles and will be subjected to certain limited
procedures, but will not be audited:
1. Management's Discussion and Analysis.
2. Pension Plan Related Schedules.
3. Budgetary Comparison Schedules.
4. Other Post Employment Benefit Related Schedules
520 Dix Road, Suite A • Jefferson City, Missouri 65109 • 573/635-0227 • FAX 573/634-3764
5886 Osage Beach Parkway, Ste. A • Osage Beach, Missouri 65065 • 573/348-4141 • FAX 573/348-0989
We have also been engaged to report on supplementary information other than RSI that
accompanies City -of Jefferson's financial statements. We will subject the following
supplementary information to the auditing procedures applied in our audit of the financial
statements and certain additional procedures, including comparing and reconciling such
informationdirectly to the underlying accounting and other, records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America and we
will provide an opinion on it in relation to the financial statements as a whole:
1. Schedule of Expenditures of Federal Awards.
2. Combining Non -Major Funds Financial Statements
3. Internal Service Fund/Agency Fund Financial Statements
4. Capital Assets used in Operation of Governmental Funds Statements
The following other information accompanying the financial statements will not be subjected to
the auditing procedures applied in our audit of the financial statements, and our auditor's report
will not provide an opinion or any assurance on that other information.
1. Introductory Section
2. Statistical Section
Audit Objectives
The objective of our audit is the expression of opinions as to whether your basic financial
statements are fairly presented, in all material respects, in conformity with U.S. generally
accepted accounting principles and to report on the fairness of the supplementary information
referred to in the second paragraph when considered in relation to the financial statements as a
whole. The objective also includes reporting on—
• Internal control over financial reporting and compliance with provisions of laws,
regulations, contracts, and award agreements, noncompliance with which could have a
material effect on the financial statements in accordance with Government Auditing
Standards.
• Internal control over compliance related to major programs and an opinion (or disclaimer
of opinion) on compliance with federal statutes, regulations, and the terms and conditions
of federal awards that could have a direct and material effect on each major program in
accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
The Government Auditing Standards report on internal control over financial and on compliance
and other matters will include a paragraph that states that (1) the purpose of the report is solely to
describe the scope of testing of internal control and compliance and the results of that testing, and
not to provide an opinion on the effectiveness of the entity's internal control or on compliance,
and (2) the report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the entity's internal control and compliance. The Uniform
Guidance report on intemal control over compliance will include a paragraph that states that the
purpose of the report on internal control over compliance is solely to describe the scope of testing
of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Both reports will state that the report is not suitable for any other
purpose.
Our audit will be conducted in accordance with auditing standards generally accepted in the
United States of America; the standards for financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; the Single Audit Act
Amendments of 1996; and the provisions of the Uniform Guidance, and will include tests of
accounting records, a determination of major program(s) in accordance with the Uniform
Guidance, and other procedures we consider necessary to enable us to express such opinions. We
will issue written reports upon completion of our Single Audit. Our reports will be addressed to
the Honorable Mayor and Members of the City Council of the City of Jefferson, Missouri. We
will make reference to Seaver and Forck, CPA's audit of Jefferson City Convention and Visitors
Bureau in our report on your financial statements. We cannot provide assurance that unmodified
opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our
opinions or add emphasis -of -matter or other -matter paragraphs. If our opinions are other than
unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to
complete the audit or are unable to form or have not formed opinions, we may decline to express
opinions or issue reports, or we may withdraw from this engagement.
Audit Procedures—General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements; therefore, our audit will involve judgment about the number of
transactions to be examined and the areas to be tested. An audit also includes evaluating the
appropriateness of accounting policiesused and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements. We will plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent
financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental
regulations that are attributable to the government or to acts by management or employees acting
on behalf of the government. Because the determination of abuse is subjective, Government
Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal
control, and because we will not perform a detailed examination of all transactions, there is a risk
that material misstatements or noncompliance may exist and not be detected by us, even though
the audit is properly planned and performed in accordance with U.S. generally accepted auditing
standards and Government Auditing Standards. In addition, an audit is not designed to detect
immaterial misstatements or violations of laws or governmental regulations that do not have a
direct and material effect on the financial statements or major programs. However, we will
inform the appropriate level of management of any material errors, any fraudulent financial
reporting, or misappropriation of assets that come to our attention. We will also inform the
3
appropriate level of management of any violations of laws or governmental regulations that come
to our attention, unless clearly inconsequential, and of any material abuse that comes to our
attention. We will include such matters in the reports required for a Single Audit. Our
responsibility as auditors is limited to the period covered by our audit and does not extend to any
later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded
in the accounts, and may include tests of the physical existence of inventories, and direct
confirmation of receivables and certain other assets and liabilities by correspondence with
selected individuals, funding sources, creditors, and fmancial institutions. We will request
written representations from your attorneys as part of the engagement, and they may bill you for
responding to this inquiry. At the conclusion of our audit, we will require certain written
representations from you about your responsibilities for the financial statements; schedule of
expenditures of federal awards; federal award programs; compliance with laws, regulations,
contracts, and grant agreements; and other responsibilities required by generally accepted
auditing standards.
Audit Procedures—Internal Control
Our audit will includeobtaining an understanding of the government and its environment,
including internal control, sufficient to assess the risks of material misstatement of the financial
statements and to design the nature, timing, and extent of further audit procedures. Tests of
controls may be performed to test the effectiveness of certain controls that we consider relevant
to preventing and detecting errors and fraud that are material to the financial statements and to
preventing and detecting misstatements resulting from illegal acts and other noncompliance
matters that have a direct and material effect on the financial statements. Our tests, if performed,
will be less in scope than would be necessary to render an opinion on internal control and,
accordingly, no opinion will be expressed in our report on internal control issued pursuant to
Government Auditing Standards.
As required by the Uniform Guidance, we will perform tests of controls over compliance to
evaluate the effectiveness of the design and operation of controls that we consider relevant to
preventing or detecting material noncompliance with compliance requirements applicable to each
major federal award program. However, our tests will be less in scope than would be necessary to
render an opinion on those controls and, accordingly, no opinion will be expressed in our report
on internal control issued pursuant to the Uniform Guidance.
An audit is not designed to provide assurance on internal control or to identify significant
deficiencies or material weaknesses. However, during the audit, we will communicate to
management and those charged with governance internal control related matters that are required
to be communicated under AICPA professional standards, Government Auditing Standards, and
the Uniform Guidance.
Our expertise in governmental accounting will allow us to help the City of Jefferson
improve their operations and procedures. Throughout the audit process, if we identify
areas needing improvement, we will make those suggestions to management. At the
discretion of the City we will meet with department heads and staff to review suggestions
and implementation.
4
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of
material misstatement, we will perform tests of the City of Jefferson, Missouri's compliance with
provisions of applicable laws, regulations, contracts, and agreements, including grant
agreements. However, the objective of those procedures will not be to provide an opinion on
overall compliance and we will not express such an opinion in our report on compliance issued
pursuant to Government Auditing Standards.
The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable
assurance about whether the auditee has complied with federal statutes, regulations, and the
terms and conditions of federal awards applicable to major programs. Our procedures will consist
of tests of transactions and other applicable procedures described in the OMB Compliance
Supplement for the types of compliance requirements that could have a direct and material effect
on each of the City of Jefferson, Missouri's major programs. The purpose of these procedures
will be to express an opinion on the City of Jefferson, Missouri's compliance with requirements
applicable to each of its major programs in our report on compliance issued pursuant to the
Uniform Guidance.
Other Services
We will also assist in preparing the schedule of expenditures of federal awards, and related notes
of City of Jefferson, Missouri in conformity with U.S. generally accepted accounting principles
and the Uniform Guidance based on information provided by you. These nonaudit services do
not constitute an audit under Government Auditing Standards and such services will not be
conducted in accordance with Government Auditing Standards. We will perform the services in
accordance with applicable professional standards. The other services are limited to the schedule
of expenditures of federal awards, and related notes services previously defined. We, in our sole
professional judgment, reserve the right to refuse to perform any procedure or take any action
that could be construed as assuming management responsibilities.
Management Responsibilities
Management is responsible for (1) designing, implementing, establishing and maintaining
effective internal controls relevant to the preparation and fair presentation of financial statements
that are free from material misstatement, whether due to fraud or error, including internal
controls over federal awards, and for evaluating and monitoring ongoing activities, to help ensure
that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring
that there is reasonable assurance that government programs are administered in compliance with
compliance requirements; and (4) ensuring that management and financial information is reliable
and properly reported. Management is also responsible for 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; for the preparation and
fair presentation of the financial statements, schedule of expenditures of federal awards, and all
accompanying information in conformity with U.S. generally accepted accounting principles; and
for compliance with applicable laws and regulations (including federal statutes) and the
5
provisions of contracts and grant agreements (including award agreements). Your responsibilities
also include identifying significant contractor relationships in which the contractor has
responsibility for program compliance and for the accuracy and completeness of that information.
Management is also responsible for making all financial records and related information
available to us and for the accuracy and completeness of that information. You are also
responsible for providing us with (1) access to all information of which you are aware that is
relevant to the preparation and fair presentation of the fmancial statements, (2) access to
personnel, accounts, books, records, supporting documentation, and other information as needed
to perform an audit under the Uniform Guidance, (3) additional information that we may request
for the purpose of the audit, and (4) unrestricted access to persons within the government from
whom we determine it necessary to obtain audit evidence.
Your responsibilities include adjusting the financial statements to correct material misstatements
and confirming to us in the management representation letter that the effects of any uncorrected
misstatements aggregated by us during the current engagement and pertaining to the latest period
presented are immaterial, both individually and in the aggregate, to the financial statements as a
whole.
You are responsible for the design and implementation of programs and controls to prevent and
detect fraud, and for informing us about all known or suspected fraud affecting the government
involving (1) management, (2) employees who have significant roles in internal control, and (3)
others where the fraud could have a material effect on the financial statements. Your
responsibilities include informing us of your knowledge of any allegations of fraud or suspected
fraud affecting the government received in communications from employees, former employees,
grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that
the government complies with applicable laws, regulations, contracts, agreements, and grants.
Management is also responsible for taking timely and appropriate steps to remedy fraud and
noncompliance with provisions of laws, regulations, contracts, and grant agreements, or abuse
that we report. Additionally, as required by the Uniform Guidance, it is management's
responsibility to evaluate and monitor noncompliance with federal statutes, regulations, and the
terms and conditions of federal awards; take prompt action when instances of noncompliance are
identified including noncompliance identified in audit findings; promptly follow up and take
corrective action on reported audit findings; and prepare a summary schedule of prior audit
findings and a separate corrective action plan. With regard to including the auditor's report in an
exempt offering document, you agree that the aforementioned auditor's report, or reference to
Evers & Company, CPA's, L.L.C., will not be included in any such offering document without
our prior permission or consent. Any agreement to perform work in connection with an exempt
offering document, including an agreement to provide permission or consent, will be a separate
engagement.
You are responsible for identifying all federal awards received and understanding and complying
with the compliance requirements and for the preparation of the schedule of expenditures of
federal awards (including notes and noncash assistance received) in conformity with the Uniform
Guidance. You agree to include our report on the schedule of expenditures of federal awards in
any document that contains and indicates that we have reported on the schedule of expenditures
of federal awards. You also " agree to include the audited financial statements with any
6
presentation of the schedule of expenditures of federal awards that includes our report thereon.
Your responsibilities include acknowledging to us in the written representation letter that (1) you
are responsible for presentation of the schedule of expenditures of federal awards in accordance
with the Uniform Guidance; (2) you believe the schedule of expenditures of federal awards,
including its form and content, is stated fairly in accordance with the Uniform Guidance; (3) the
methods of measurement or presentation have not changed from those used in the prior period
(or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any
significant assumptions or interpretations underlying the measurement or presentation of the
schedule of expenditures of federal awards.
You are also responsible for the preparation of the other supplementary information, which we
have been engaged to report on, in conformity with U.S. generally accepted accounting
principles. You agree to include our report on the supplementary information in any document
that contains, and indicates that we have reported on, the supplementary information. You also
agree to include the audited financial statements with any presentation of the supplementary
information that includes our report thereon. Your responsibilities include acknowledging to us
in the written representation letter that (1) you are responsible for presentation of the
supplementary information in accordance with GAAP; (2) you believe the supplementary
information, including its form and content, is fairly presented in accordance with GAAP; (3) the
methods of measurement or presentation have not changed from those used in the prior period
(or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any
significant assumptions or interpretations underlying the measurement or presentation of the
supplementary information.
Management is responsible for establishing and maintaining a process for tracking the status of
audit findings and recommendations. Management is also responsible for identifying and
providing report copies of previous financial audits, attestation engagements, performanceaudits,
or other studies related to the objectives discussed in the Audit Objectives section of this letter.
This responsibility includes relaying to us corrective actions taken to address significant findings
and recommendations resulting from those audits, attestation engagements, performance audits
or studies. You are also responsible for providing management's views on our current findings,
conclusions, and recommendations, as well as your planned corrective actions, for the report, and
for the timing and format for providing that information. With regard to the electronic
dissemination of audited financial statements, including financial statements published
electronically on your website, you understand that electronic sites are a means to distribute
information and, therefore, we are not required to read the information contained in these sites or
to consider the consistency of other information in the electronic site with the original document.
You agree to assume all management responsibilities relating to the financial statements,
schedule of expenditures of federal awards, and related notes, and any other nonaudit services we
provide. You will be required to acknowledge in the management representation letter our
assistance with preparation of the financial statements, schedule of expenditures of federal
awards, and related notes and that you have reviewed and approved the financial statements,
schedule of expenditures of federal awards, and related notes prior to their issuance and have
accepted responsibility for them. Further, you agree to oversee the nonaudit services by
designating an individual, preferably from senior management, with suitable skill, knowledge, or
experience; evaluate the adequacy and results of those services; and accept responsibility for
them.
Engagement Administration, Fees, and Other
We understand that your employees will prepare all cash, accounts receivable, or other
confirmations we request and will locate any documents selected by us for testing.
At the conclusion of the engagement, we will complete the appropriate sections of the Data
Collection Form that summarizes our audit findings. It is management's responsibility to
electronically submit the reporting package (including financial statements, schedule of
expenditures of federal awards, summary schedule of prior audit findings, auditors' reports, and
corrective action plan) along with the Data Collection Form to the federal audit clearinghouse.
We will coordinate with you the electronic submission and certification. The Data Collection
Form and the reporting package must be submitted within the earlier of 30 calendar days after
receipt of the auditors' reports or nine months after the end of the audit period.
We will provide copies of our reports to the City; however, management is responsible for
distribution of the reports and the financial statements. Unless restricted by law or regulation, or
containing privileged and confidential information, copies of our reports are to be made available
for public inspection.
The audit documentation for this engagement is the property of Evers & Company, CPA's, LLC
and constitutes confidential information. However, subject to applicable laws and regulations,
audit documentation and appropriate individuals will be made available upon request and in a
timely manner to a Cognizant or Oversight Agency for Audit or its designee, a federal agency
providing direct or indirect funding, or the U.S. Government Accountability Office for purposes
of a quality review of the audit, to resolve audit findings, or to carry out oversight
responsibilities. We will notify you of any such request. If requested, access to such audit
documentation will be provided under the supervision of Evers & Company, CPA's, LLC
personnel. Furthermore, upon request, we may provide copies of selected audit documentation to
the aforementioned parties. These parties may intend, or decide, to distribute the copies or
information contained therein to others, including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of five years after
the report release date or for any additional period requested by the Cognizant Agency, Oversight
Agency for Audit, or Pass-through Entity. If we are aware that a federal awarding agency, pass-
through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting
the audit finding for guidance prior to destroying the audit documentation.
We expect to begin field work January 13, 2020 and providing all of the work papers and
schedules to be prepared by City staff are completed and available to us on the first day of field
work, we will issue our report no later than April 10, 2020 to the Finance Director.
We try to base our fees for audits on hours incurred, at our normal hourly rates. Assuming the
checklist of year-end accounting work which we will provide after the contract is awarded is
completed, and barring any unforeseen problems such as fraud or embezzlement, our fees for
services will be as follows:
. Please refer to your "Proposal Sheet" at the beginning of this proposal for prices.
8
All billings are due and payable upon receipt. In accordance with our firm policies, work may be
suspended if your account becomes 60 days or more overdue and may not be resumed until your
account is paid in full. Service charges at the rate of 18% annually or 1.5% per month will be
applied to all past -due balances. Termination of services for nonpayment will result in the
engagement being deemed to have been completed upon written notification of termination, even
if we have not completed our report. You will be obligated to compensate us for all time
expended and to reimburse us for all out-of-pocket costs through the date of termination.
You may request that we perform additional services not contemplated by this engagement letter.
If this occurs, we will communicate with you regarding the scope of the additional services and
the estimated fees. We also may issue a separate engagement letter covering the additional
services. In the absence of any other written communication from us documenting such
additional services, our services will continue to be governed by the terms of this engagement
letter.
If you retain us to perform nonattest services, you must accept responsibility for making and
performing all management decisions and functions, designating a competent employee to
oversee the nonattest services, evaluating the adequacy and results of the services, accepting
responsibility for the results, and maintaining appropriate controls.
Our invoices for these fees will be rendered upon completion of the audit and presentation of the
reports and are payable on presentation. The fees are based on anticipated cooperation from your
personnel and the assumption that unexpected circumstances will not be encountered during the
audit. If significant additional time is necessary, we will discuss it with you and arrive at a new
fee estimate before we incur the additional costs. Service charges at the rate of 18% annually or
1.50% per month will be applied to all past -due balances. If we elect to terminate our services for
nonpayment, you will be obligated to compensate us for all time expended through the date of
termination.
Our firm policy on year-round consultation is:
1. For phone call discussions, we make our professional staff available, as you have needs, for up
to 30 minutes a month or six (6) hours a year at no charge. If the calls extend longer than 30
minutes, there probably will be a charge, at our standard hourly rates.
2. For meeting with the client, there usually will be a charge.
9
Audit
Professional
Jo Moore
Wendy Renner
Bobbie Murray
Irene Kellerman
Adrienne Wieberg
Connor Muenks
Jonathan Schneiders
Nikki Wrinkles
Anna Bartley
Title
Partner
Partner
Partner
Supervisior
Staff Accountant
Staff Accountant
Staff Accountant
Staff Accountant
Staff Accountant
Hourly
Rate
160
160
160
125
110
85
85
75
80
Approximate
Hours Total
45
80
90
80
60
35
40
55
40
Total
Discount
7,20Q
12,800
14,400
10,000
6,600
2,975
3,400
4,125
3,200
64,700
(10,000)
$ 54,700
We appreciate the opportunity to be of service to the City of Jefferson and believe this letter
accurately summarizes the significant terms of our engagement. If you have any questions,
please let us know. If you agree with the terms of our engagement as described in this letter,
please sign the enclosed copy and return it to us.
Very truly yours,
EVERS & COMPANY, CPA's, L.L.C.
(:)5
JO'MOORE, CPA
Audit Partner
RESPONSE:
This letter correctly sets forth the understanding of the City of Jefferson.
By:
Title: Date:
10
PROFILE OF THE FIRM
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 professional
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 political subdivisions and the auditing experience 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 involvement 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 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 business and
needs. Second, the firm is large enough to have specialists available in the various disciplines of
the profession which include, accounting, auditing, income taxes, management consulting services,
and data processing services.
The audit work will be performed from our Jefferson City office. At the present time, the
personnel of the Jefferson City office is as follows:
Staff in the Jefferson City Office
Women in Men in Total for
the Firm the Firm Total Entire Firm
Partners 3 2 5 7
Professional Staff 7 3 10 14
IS Support 1 1 1
Para -Professional Staff 1 1 6
Office Support Staff 5 5 7.
16 6 22 35
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 the knowledge that our staff
will be working on a direct interrelationship basis with our partners.
11
PROFILE OF THE FIRM
(Cont'd.)
The partners of Evers and Company have both the technical 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 partners' 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.
Our staff strives to keep involved and stay current on the various issues facing the municipalities in
our state. Several of our staff are members of the Missouri Municipal League and work closely
with that organization to provide current information to the municipalities in Missouri.
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 this 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 expertise of Evers and Company, CPA's in serving municipalities and other
governmental organizations will provide the City of Jefferson with auditors who have a
high degree of technical experience.
12
STAFF RESUMES & EXPERIENCE
JO L. MOORE, CPA - Audit Partner
Jo Moore is an audit partner in the Jefferson City office of Evers and Company CPA's. She joined
the firm in 1991 and has twenty-five years public accounting experience. She holds a Bachelor of
Science degree from Park College in Parkville, Missouri and a Master of Science in Taxation from
the Washington Institute for Graduate Studies in San Diego, California. Jo is a member of the
Missouri Society of Certified Public Accountants, the American Institute of Certified Public
Accountants and the Missouri Society of Association Executives. She has been an active member
of the Jefferson City Breakfast Rotary Club since 1993, serving on the Board from 1995 to 2003,
served as President for the 2001-2002 Rotary year and serving as District 6080 Secretary for the
2002-2003 Rotary year. In addition, she has also participated in various training courses and
speaking engagements.
Jo currently specializes in the audits of political subdivisions and not-for-profit organization audits
and their related tax reporting. Other areas of industry concentration are as follows: audits of
construction companies, credit unions, self-insured .insurance programs and neighborhood
assistance program audits. Jo also has extensive knowledge in insurance and claims processing.
Immediately prior to joining the firm, she was employed as Clamps Manager for a Third Party
Administrator handling insurance programs for several self-insured groups.
Similar Experience: City of Jefferson, City of Eldon, State Technical College of Missouri, City of
Jamestown, City of Versailles
WENDY M. RENNER, CPA — Audit Partner
Wendy is a certified public accountant in the Jefferson City office of Evers & Company, CPA's.
She joined the firm in December 2003 and has over twenty years combined experience in public,
governmental, and private sector accounting. She holds a Bachelor of Science degree in
Accounting and Business Administration with an emphasis in Human Resource Management from
Regis University, Denver, Colorado. Wendy also holds a Masters of Business Administration with
an emphasis in Accountancy from Lincoln University, Jefferson City, Missouri. Her major areas of
concentration with the firm are audits of not-for-profit organizations, local governments, special
purpose governments, and school districts. Wendy also prepares corporate, partnership, not-for-
profit, fiduciary, and individual tax returns.
Wendy is a member of the American Institute of Certified Public Accountants, the Missouri Society
of Certified Public Accountants, and the Government Finance Officers Association.
Similar Experience: City of Jefferson, City of Eldon, State Technical College of Missouri, City of
Jamestown, City of Versailles
13
STAFF RESUMES & EXPERIENCE
(Cont'd.)
BOBBIE MURRAY, CPA — Audit Partner
Bobbie Murray is an audit partner in the Jefferson City office of Evers & Company, CPA's. She
joined the firm in December 2003. Bobbie graduated from Lincoln University in December of
2001 with a Bachelor of Science degree in Accounting. In May of 2003 she received her
Master's in Business Administration with an emphasis in management from Lincoln University.
Her major areas of concentration with the firm are audits of not-for-profit organizations and state
and local govemments and preparation of corporate and not-for-profit tax returns. Bobbie is a
member of the American Institute of Certified Public Accountants and the Missouri Society of
Certified Public Accountants.
Similar Experience: City of Jefferson, State Technical College of Missouri
IRENE KELLERMAN, CPA — Audit Supervisor
Irene Kellerman is an audit supervisor in the Jefferson City office of Evers & Company, CPA's.
She joined the firm in January 2018. Irene graduated from Fontbonne University in May of 2006
with a Bachelor of Science degree in Accounting. Her major areas of concentration with the firm
are audits and reviews of for-profit entities, not-for-profit organizations, state and local
govemments and preparation of corporate tax returns. Irene's career began as an auditor for
CliftonLarsonAllen, LLP in St. Louis. After several years as an auditor she began to specialize in
the area of accounting and Federal and State income taxation of individuals and business entities,
mostly auto dealerships. Irene is a member of the American Institute of Certified Public
Accountants and the Missouri Society of Certified Public Accountants.
Similar Experience: City of Jefferson, State Technical College of Missouri, City of Jamestown,
City of Versailles
ADRIENNE WIEBERG, CPA — Senior Auditor
Adrienne Wieberg is a Staff Accountant in the Jefferson City office of Evers and Company.
Adrienne joined the firm in December 2014. She graduated from Lincoln University in
December 2014 with a major in Business Administration and Accounting and a minor in Legal
Studies. She earned her Masters of Business Administration with an Accounting Emphasis from
Columbia College in December 2016 and became a CPA in January 2018. She works on audit
reports for for-profit and nonprofit organizations, along with tax return entry for individuals,
partnerships, s -corporations, corporations, and nonprofit organizations.
Similar Experience: City of Jefferson, City of Eldon, State Technical College of Missouri
14
STAFF RESUMES & EXPERIENCE
(Cont'd.)
CONNOR MUENKS, CPA — Staff Auditor
Connor Muenks is a Staff Accountant in the Jefferson City office of Evers and Company CPA's.
He joined the firm in September 2017. Connor graduated from Westminster College in Fulton,
Missouri with majors in Business Administration and Accounting. He passed his CPA exam in
November 2017. Connor is assigned to the audit team and participated in tax preparation work
during the 2018 tax season. Prior to joining the firm, Connor obtained five years of experience in
business management through starting and owning his own business.
Similar Experience: City of Jefferson, State Technical College of Missouri, City of Jamestown,
City of Versailles
JONATHAN SCHNIEDERS — Staff Auditor
Jonathan Schnieders is a staff accountant in the Jefferson City office of Evers and Company
CPA's. He joined the firm in November 2017. Jonathan graduated from Lincoln University with
a Bachelor of Science degree in Accounting in 2012. He is currently heading back to Lincoln
University to obtain class requirements desired to sit for the CPA. Jonathan is assigned to the
audit team and will primarily focus on audit engagements. Jonathan has prior work experience
as an Accounting Specialist I with the State of Missouri. Also, Jonathan has work experience in
Real Estate, Financials, and Insurance.
Similar Experience: City of Jefferson, State Technical College of Missouri
NIKKI WRINKLES — Staff Auditor
Nikki Wrinkles is a Staff Accountant in the Jefferson City office of Evers and Company CPA's.
She joined the firm in August 2018. She graduated from Columbia College with a Bachelor's of
Science in Accountancy in 2018 and is looking to pursue her Master's Degree in Accountancy,
eventually leading to obtaining her CPA license. Nikki is currently assigned to the audit team and
will primarily focus on audit engagements and not for profit tax return preparation until the 2019
tax season at which time she will also participate in individual, and business tax return
preparation. Nikki has 5 years of prior work experience as a Fiscal & Budgetary Analyst II with
the MO State Highway Patrol. During her years with the Highway Patrol, she managed her
division's grants, expenses, and income.
Similar Experience: City of Jefferson, State Technical College of Missouri
15
STAFF RESUMES & EXPERIENCE
(Cont'd.)
ANNA BARTLEY — Staff Accountant
Anna Bartley is a Staff Accountant in the Jefferson City office of Evers and Company CPA's.
She joined the firm in June 2019. She graduated from Westminster College in Fulton, Missouri
with a major in Accounting and is studying to obtain her CPA license. Anna is currently
assigned to the audit team and will primarily assist on audit engagements and not-for-profit tax
return preparation until tax season, when she will also participate in individual and business tax
return preparation.
16
GOVERNMENTAL RELATED CPE HOURS
This is an up-to-date listing of the number of hours for each staff member over the last two years
ended December 31, 2018 towards their Govemmental Related Continuing Education:
Government
Partner/Professional Related Hours
Jo Moore 86
Wendy Renner 131
Bobbie Murray 84
Irene Kellerman 24
Adrienne Wieberg 45
Connor Muenks 26
Jonathan Schneiders 6
Nikki Wrinkles 4
None of the staff on the job will be trainees and all staff on the job will be classified as professional
staff The firm commits to continuation of partners and managers for the term of the engagement.
Staff members may be rotated in an effort to provide a fresh perspective on an annual basis.
17
GOVERNMENTAL EXPERIENCE
Our firm has performed many auditing, accounting and management services for other
municipalities. Listed below are some of these municipalities which we have served:
CLIENT NAME CONTACT
* City of Jefferson Shiela Pearce
(573) 634-6303 Chief Accountant
Dates of Services: 1998 to current
Services Performed: Audit and Consulting
State Technical College of Missouri
(573) 897-5000
Date of Services: 2011 to Current
Services Performed: Audit
City of Eldon
(573) 392-2291
Dates of Services: 1997 to current
Services Performed: Audit
City of Jamestown
(660) 849-2339
Dates of Services: 2009 to current
Services Performed: Audit
City of Versailles
(573) 378-4634
Dates of Services: 2011 to current
Services Performed: Audit
Missouri Municipal League
(573) 635-9134
Dates of Services: 2012 to current
Services Performed: Audit
Jenny Jacobs
Finance Director
Debbie Guthrie
City Administrator
Dawn Cassil
City Clerk
Bobbie Garber
Finance Director
Dan Ross
Executive Director
* Have received the GFOA's Certificate of Achievement for Excellence in Financial
Reporting:
18
ADDITIONAL PROFESSIONAL SERVICES
Our firm also has the following services to offer:
* Help in Interviewing and Selecting New Employees to Work in the Accounting
Function (testing and interviewing)
* Fixed Asset Management and Capital Budgeting
* Tax Planning Advisory Services for retiring employees
* General Ledger Accounting System - Computerized
* Consulting and Problem Solving Services on Topics Specifically Related to Not -For -
Profit and Governmental Agencies Under the Requirements of the Single Audit Act
* Data Processing Consulting Services in the following areas:
- Assistance with preparing the Comprehensive Annual Financial Report
application for the GFOA Certificate of Conformance
- Strategic long-range planning, tactical (project) planning, requirements definition,
analysis, design, development, and implementation of information systems
- Technical support of customer accounts; regularly providing consulting assistance
to clients concerning PC hardware and software support, as well as system
development methodology tools and techniques;
- Presenting and training clients on the subjects of PC software and system
development using CASE tools
* Litigation Support Services:
Providing support in public hearings and matters of litigation
* Offer the Services of a Certified Fraud Examiner, trained in the detection of fraud and
deficiencies in the internal control structure
* Cafeteria & Retirement Plan administration
* Agreed Upon Procedures to determine if a specific area of the City is operating as
designed (example: credit cards issued)
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FIRM QUALITY CONTROL
In an effort to maintain the highest possible standards of quality control, our firm promotes
continuing professional education programs and seminars. Our professional staff attends
conferences and seminars dealing with new auditing standards as they are introduced, and
participates in refresher courses to maintain an active, updated knowledge of the standards required
by our industry.
We have weekly in-house professional education sessions to introduce our entire firm members to
any information learned in outside seminars.
Our audit department in particular, follows a strict program of continuing professional education
that involves seminars to keep us knowledgeable in the latest changes in governmental audit
standards and the single audit act.
Our firm conducts a yearly Internal Inspection. Selected members of our firm review the audit and
accounting procedures that we use on a day-to-day basis to determine if we adhere to the standards
set forth by our profession.
Evers and Company also undergoes a voluntary peer review at least once every three years.
The peer review involves an inspection of various accounting and auditing records selected by the
peer review committee. These records and our procedures are reviewed to determine if our firm has
complied with the standards set forth by our profession and those set forth by the audited industries
regulating agencies.
The peer review is a voluntary action that is strongly encouraged by the AICPA. It is a required
procedure for any firm wishing to be a member of the Private Companies Practice Section. Many
regulating agencies require peer reviews for firms who audit entities receiving Federal Funds.
Our effort to promote continued education for our professional employees, along with our firm's
dedication to the highest standards of quality control, combine to provide your organization with
the professional advice that they need, to insure that they follow the regulations set up specifically
for their organizational type.
20
PROFESSIONAL ASSOCIATIONS
Dale Siebeneck and Jo Moore are members of the Association of Government Accountants.
The firm is a member of the Government Finance Officers Association.
All Certified Public Accountants in the firm are also members of the American Institute of Certified Public
Accountants and our fu -m is a member of the AICPA Private Company Practice Section. All partners are
members of the Missouri Society of Certified Public Accountants.
Evers and Company, CPAs, LLC is a member of the American Institute of Certified Public Accountant's
Governmental Audit Quality .Center. The Governmental Audit Quality Center (GAQC), which was
created in 2004, promotes the importance of quality governmental audits and the value of such audits to
purchasers of governmental audit services. GAQC is a voluntary membership center for CPA firms and
state audit organizations that perform governmental audits. GAQC was created to, among other things,
serve as a comprehensive resource on governmental audits for member firms, create a community of
firms that demonstrate a commitment to governmental audit quality, and provide an online forum tool for
members to share best practices and discuss governmental audit issues. Membership requires a firm's
commitment to audit quality in the critical area of governmental audits, including those performed under
Government Auditing Standards and the Single Audit Act amendments of 1996 and Title 2 U.S. Code of
Federal Regulators (CFR), Uniform Administrative Requirements Cost Principles, and Audit
Requirements of Federal Awards (Uniform Guidance). Additional information about the Center can be
accessed at http://gaqc.aicpa.org.
21
CHECKLIST OF INFORMATION TO BE PREPARED
BY THE CITY OF JEFFERSON
In order for us to be more efficient in the audit of the City of Jefferson for the year ended October
31, 2019, we ask that your staff complete the following information prior to our beginning
fieldwork, each year.
Have the general ledger posted and balanced for the entire year.
Prepare a trial balance worksheet reflecting balances after year-end adjusting entries have
been posted.
Prepare reconciliations for each bank account, for the last month of the year.
Prepare an aged schedule of accounts receivable:
Airport
Parking authority
Sewer
Employees
Miscellaneous
Grants
We will furnish accounts receivable confirmations to be filled in and signed.
Prepare a schedule of bad debts written off during the year.
Prepare a schedule of notes receivable. Also, have the notes available for our inspection.
* Prepare a schedule of insurance showing the following: Policy number, coverage, terns, and
premium paid. Also, have the policies available for our inspection.
Prepare confirmation letters to confirm your City's account balances. (We will provide
sample letters)
Prepare a schedule of municipal bonds on hand.
Have available the municipal court records for the entire year.
Prepare a schedule of all property and equipment on hand; any additions and retirements
showing costs, and for items sold, sales price. Show these items by fund, department and
grant.
Prepare a schedule of depreciation for the enterprise funds.
Prepare an analysis of all transactions affecting marketable securities during the period.
Have available the monthly reports showing the payments to the LAGERS pension plan.
Have a copy of any union contracts available to us.
Prepare a schedule of interest income as follows:
Federal government obligations
Missouri Statement municipal obligations
Other interest income
Prepare a schedule of notes payable showing dates, payee, original balance, audit date
balances, amount of periodic installment, rate of interest, and describe security.
Have a copy of all leases for office space and equipment rental contracts available to us.
22
Have a copy of any employment contracts with staff available to us.
Have all payroll tax reports available to us.
Prepare a schedule of all professional fees paid.
Have copies of the minutes of the Council and committee meetings available for our
inspection.
Prepare a schedule of prepaid insurance and accrued insurance.
Prepare a schedule of all construction -in -progress, contracts payable, and retainage payable
- grant projects or other projects.
Prepare a schedule of all grants receivable, grant money received during the year, and have
the support documents available for inspection.
Have a copy of grant contracts available for us.
Have available a copy of the budget report compared with cash receipts and disbursements,
for the General Fund and Special Revenue funds.
Prepare property tax worksheet for current and prior years for real estate, personal and MM,
property tax receivables, and current year collection and delinquent balances.
Proof of tax levy, including adjustments and abatements.
Prepare schedule of allowance for uncollectible taxes for current and prior years
(delinquent)
Have the various receivable items completed:
_ Financial institution tax
Sales tax
Gas tax
Motor vehicle sales tax
Tax liens
Franchise fees
Accrued interest receivable
Others
Have a schedule prepared for prepaid expenses and insurance.
Have the various payable items completed:
Accrued payroll
Contracts payable
Retainage payable
Various payroll withholding accounts
Various "Due To" and "Due From" other funds
Revenues received in advance — Parking Authority Fund
Prepare a schedule of Encumbrances by fund.
Prepare a schedule of construction in progress by fund.
Have inventory count sheets after pricing, available for us on the appropriate proprietary
funds.
* Your insurance agent may prepare this for you. We will provide a copy of a letter you
might send to them.
23
tEvers & Company, CPA's, L.L.C.
Certified Public Accountants and Consultants
April 26, 2019
To the Honorable Mayor and
Members of the City Council
City of Jefferson, Missouri
Richard E. Elliott
Dale A, Slebeneck
Jo L. Moore
Wendy M. Renner
Eldon H. Becker
Bruce A. Vanderreld
Jessica L. Bridges
Bobbie J. Redmon-Murray
Elmer L. Evers, Emeritus
Jerome L. Kauffman, Emeritus
Keith L. Taylor, Emeritus
We have audited the financial statements of the governmental activities, the business -type
activities, the discretely presented component unit, each major fund, and the aggregate
remaining fund information of the City of Jefferson, Missouri for the year ended October
31, 2018. Professional standards require that we provide you with information about our
responsibilities under generally accepted auditing standards, Government Auditing
Standards and the Uniform Guidance, as well as certain information related to the planned
scope and timing of our audit. We have communicated such information in our letter to you
dated October 23, 2018. Professional standards also require that we communicate to you
the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies.
The significant accounting policies used by City of Jefferson, Missouri are described in
Note 1 to the financial statements. As described in Note 1 of the financial statements, the
City of Jefferson, Missouri changed accounting policies related to other post -employment
benefits and interest capitalization by adopting Statements of Governmental Accounting
Standards (GASB Statements) No. 75 Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions and No. 89 Accounting for Interest Cost
Incurred Before the End of a Construction Period. We noted no transactions entered into
by the governmental unit during the year for which there is a lack of authoritative guidance
or consensus. All significant transactions have been recognized in the financial statements
in the proper period.
520 Dix Road, Suite A • Jefferson city, Missouri 65109 • 573/635-0227 • FAX 573/634-3764
5886 Osage Beach Parkway, Ste. A • Osage Beach, Missouri 65065 • 5731348-4141 • FAX 573/348-0989
Accounting estimates are an integral part of the financial statements prepared by
management and are based on management's knowledge and experience about past and
current events and assumptions about future events. Certain accounting estimates are
particularly sensitive because of their significance to the financial statements and because of
the possibility that future events affecting them may differ significantly from those
expected. The most sensitive estimates affecting the financial statements were:
Management's estimate of the allowance for doubtful accounts is based on historical
sewer, sanitation, and property tax revenues, historical loss levels, and an analysis of the
collectability of individual accounts. We evaluated the key factors and assumptions used
to develop the allowance in determining that it is reasonable in relation to the financial
statements taken as a whole.
Management's estimate of the useful life of fixed assets in order to calculate
depreciation expense is based on an analysis of the life of similar assets previously
owned. We evaluated the key factors and assumptions used to develop the useful life
of fixed assets in determining it is reasonable to the financial statements taken as a
whole.
Management's estimates of the fair market value of investments are based upon
closing prices reported by banking and financial institutions at October 31, 2018. We
evaluated the key factors and assumptions used to develop the fair market value of
investments in determining that they are reasonable in relation to the financial
statements taken as a whole.
Management's estimates of the loss reserves are based upon information from the third
party administrator. We evaluated the key factors and assumptions used to develop the
loss re`erves in determining that they are reasonable in relation to the financial
statements taken as a whole.
Management's estimate of the total OPEB liability is based upon actuarial
determinations. We evaluated the key factors and assumptions used to develop the
total OPEB liability in determining that it is reasonable in relation to the financial
statements taken as a whole.
Management's estimate of the developer contributions is based upon comparable
projects funded by the City. We evaluated the key factors and assumptions used to
value the developer contributions in determining that they.are reasonable in relation to
the financial statements taken as a whole.
Management's estimates of net pension aset, liability, deferred outflows and deferred
inflows related to pensions are based on LAGERS actuarial determinations. We
evaluated the key factors and assumptions used to develop the annual net pension
liability and deferred outflows and inflows related to pensions in determining that they
are reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and
completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements
identified during the audit, other than those that are clearly trivial, and communicate them
to the appropriate level of management. Management has corrected all such
misstatements. In addition, none of the misstatements detected as a result of audit
procedures and corrected by management were material, either individually or in the
aggregate, to each opinion unit's financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting,
reporting, or auditing matter, whether or not resolved to our satisfaction, that could be
significant to the financial statements or the auditors' report. We are pleased to report that
no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated April 26, 2019.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a
consultation involves application of an accounting principle to the City of Jefferson,
Missouri's financial statements or a determination of the type of auditor's opinion that may
be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles
and auditing standards, with management each year prior to retention as City of Jefferson,
Missouri's auditors. However, these discussions occurred in the normal course of our
professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to management's discussion and analysis, budgetary
comparison schedules, pension information and postemployment information, as identified
in the table of contents, which are required supplementary information (RSI) that
supplements the basic financial statements. Our procedures consisted of inquiries of
management regarding the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We did not audit the RSI and do not express an opinion or provide any
assurance on the RSI.
We were engaged to report on supplementary information, as identified in the table of
contents, which accompany the financial statements but are not RSI. With respect to this
supplementary information, we made certain inquiries of management and evaluated the
form, content, and methods of preparing the information to determine that the infonnation
complies with accounting principles generally accepted in the United States of America, the
method of preparing it has not changed from the prior period, and the information is
appropriate and complete in relation to our audit of the financial statements. We compared
and reconciled the supplementary information to the underlying accounting records used to
prepare the financial statements or to the financial statements themselves.
We were not engaged to report on other information, as identified in the table of contents,
which accompany the financial statements but are not RSI. Such information has not been
subjected to the auditing procedures applied in the audit of the basic financial statements,
and accordingly, we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the use of the Finance Committee, management,
mayor, and City Council of City of Jefferson, Missouri and is not intended to be and should
not be used by anyone other than these specified parties.
Very truly yours,
6(01.4.. ,62 , CC4s, LIG
Evers & Company, CPA's L.L.C.
EXHIBIT B
Federal Funds To be Used
The City of Jefferson is a recipient of federal funds; therefore, the following requirements shall
be fully considered in preparing bids and performing work under any resulting award.
No Obligation by the Federal Government.
(1) The Purchaser and Contractor acknowledge and agree that, notwithstanding any concurrence by the
Federal Government in or approval of the solicitation or award of the underlying contract, absent the
express written consent by the Federal Government, the Federal Government is not a party to this
contract and shall not be subject to any obligations or liabilities to the Purchaser, Contractor, or any
other party (whether or not a party to that contract) pertaining to any matter resulting from the
underlying contract.
(2) The Contractor agrees to include the above clause in each subcontract financed in whole or in part
with Federal assistance provided by FTA. It is further agreed that the clause shall not be modified,
except to identify the subcontractor who will be subject to its provisions.
Program Fraud and False or Fraudulent Statements or Related Acts.
(1) The Contractor acknowledges that the provisions of the Program Fraud Civil Remedies Act of 1986, as
amended, 31 U.S.C. § 3801 et seq. and U.S. DOT regulations, "Program Fraud Civil Remedies," 49 C.F.R.
Part 31, apply to its actions pertaining to this Project. Upon execution of the underlying contract, the
Contractor certifies or affirms the truthfulness and accuracy of any statement it has made, it makes, it
may make, or causes to be made, pertaining to the underlying contract or the FTA assisted project for
which this contract work is being performed. In addition to other penalties that may be applicable, the
Contractor further acknowledges that if it makes, or causes to be made, a false, fictitious, or fraudulent
claim, statement, submission, or certification, the Federal Government reserves the right to impose the
penalties of the Program Fraud Civil Remedies Act of 1986 on the Contractor to the extent the Federal
Government deems appropriate.
(2) The Contractor also acknowledges that if it makes, or causes to be made, a false, fictitious, or
fraudulent claim, statement, submission, or certification to the Federal Government under a contract
connected with a project that is financed in whole or in part with Federal assistance originally awarded
by FTA under the authority of 49 U.S.C. § 5307, the Government reserves the right to impose the
penalties of 18 U.S.C. § 1001 and 49 U.S.C. § 5307(n)(1) on the Contractor, to the extent the Federal
Government deems appropriate.
(3) The Contractor agrees to include the above two clauses in each subcontract financed in whole or in
part with Federal assistance provided by FTA. It is further agreed that the clauses shall not be modified,
except to identify the subcontractor who will be subject to the provisions.
Access to Records
The following access to records requirements apply to this Contract:
1. Where the Purchaser is not a State but a local government and is the FTA Recipient or a subgrantee of
the FTA Recipient in accordance with 49 C. F. R. 18.36(1), the Contractor agrees to provide the Purchaser,
5
the FTA Administrator, the Comptroller General of the United States or any of their authorized
representatives access to any books, documents, papers and records of the Contractor which are
directly pertinent to this contract for the purposes of making audits, examinations, excerpts and
transcriptions. Contractor also agrees, pursuant to 49 C. F. R. 633.17 to provide the FTA Administrator or
his authorized representatives including any PMO Contractor access to Contractor's records and
construction sites pertaining to a major capital project, defined at 49 U.S.C. 5302(a)1, which is receiving
federal financial assistance through the programs described at 49 U.S.C. 5307, 5309 or 5311.
2. Where the Purchaser is a State and is the FTA Recipient or a subgrantee of the FTA Recipient in
accordance with 49 C.F.R. 633.17, Contractor agrees to provide the Purchaser, the FTA Administrator or
his authorized representatives, including any PMO Contractor, access to the Contractor's records and
construction sites pertaining to a major capital project, defined at 49 U.S.C. 5302(a)1, which is receiving
federal financial assistance through the programs described at 49 U.S.C. 5307, 5309 or 5311. By
definition, a major capital project excludes contracts of less than the simplified acquisition threshold
currently set at $100,000.
3. Where the Purchaser enters into a negotiated contract for other than a small purchase or under the
simplified acquisition threshold and is an institution of higher education, a hospital or other non-profit
organization and is the FTA Recipient or a subgrantee of the FTA Recipient in accordance with 49 C.F.R.
19.48, Contractor agrees to provide the Purchaser, FTA Administrator, the Comptroller General of the
United States or any of their duly authorized representatives with access to any books, documents,
papers and record of the Contractor which are directly pertinent to this contract for the purposes of
making audits, examinations, excerpts and transcriptions.
4. Where any Purchaser which is the FTA Recipient or a subgrantee of the FTA Recipient in accordance
with 49 U.S.C. 5325(a) enters into a contract for a capital project or improvement (defined at 49 U.S.C.
5302(a)1) through other than competitive bidding, the Contractor shall make available records related
to the contract to the Purchaser, the Secretary of Transportation and the Comptroller General or any
authorized officer or employee of any of them for the purposes of conducting an audit and inspection.
5. The Contractor agrees to permit any of the foregoing parties to reproduce by any means whatsoever
or to copy excerpts and transcriptions as reasonably needed.
6. The Contractor agrees to maintain all books, records, accounts and reports required under this
contract for a period of not less than three years after the date of termination or expiration of this
contract, except in the event of litigation or settlement of claims arising from the performance of this
contract, in which case Contractor agrees to maintain same until the Purchaser, the FTA Administrator,
the Comptroller General, or any of their duly authorized representatives, have disposed of all such
litigation, appeals, claims or exceptions related thereto. Reference 49 CFR 18.39(1)(11).
7. FTA does not require the inclusion of these requirements in subcontracts.
Federal Changes
The contractor shall at all times comply with all applicable FTA regulations, policies, procedures and
directives, including without limitation those listed directly or by reference in the Agreement (Form FTA
MA(10) dated October, 2003) between Purchaser and FTA, as they may be amended or promulgated
6
from time to time during the term of this contract. Contractor's failure to so comply shall constitute a
material breach of this contract.
Civil Rights
The following requirements apply to the underlying contract:
(1) Nondiscrimination - In accordance with Title VI of the Civil Rights Act, as amended, 42 U.S.C. § 2000d,
section 303 of the Age Discrimination Act of 1975, as amended, 42 U.S.C. § 6102, section 202 of the
Americans with Disabilities Act of 1990, 42 U.S.C. § 12132, and Federal transit law at 49 U.S.C. § 5332,
the Contractor agrees that it will not discriminate against any employee or applicant for employment
because of race, color, creed, national origin, sex, age, or disability. In addition, the Contractor agrees to
comply with applicable Federal implementing regulations and other implementing requirements FTA
may issue.
(2) Equal Employment Opportunity - The following equal employment opportunity requirements apply
to the underlying contract:
(a) Race, Color, Creed, National Origin, Sex - In accordance with Title VII of the Civil Rights Act, as
amended, 42 U.S.C. § 2000e, and Federal transit laws at 49 U.S.C. § 5332, the Contractor agrees to
comply with all applicable equal employment opportunity requirements of U.S. Department of Labor
(U.S. DOL) regulations, "Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor," 41 C.F.R. Parts 60 et seq., (which implement Executive Order No.
11246, "Equal Employment Opportunity," as amended by Executive Order No. 11375, "Amending
Executive Order 11246 Relating to Equal Employment Opportunity," 42 U.S.C. § 2000e note), and with
any applicable Federal statutes, executive orders, regulations, and Federal policies that may in the
future affect construction activities undertaken in the course of the Project. The Contractor agrees to
take affirmative action to ensure that applicants are employed, and that employees are treated during
employment, without regard to their race, color, creed, national origin, sex, or age. Such action shall
include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment
or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and
selection for training, including apprenticeship. In addition, the Contractor agrees to comply with any
implementing requirements FTA may issue.
(b) Age - In accordance with section 4 of the Age Discrimination in Employment Act of 1967, as
amended, 29 U.S.C. § § 623 and Federal transit law at 49 U.S.C. § 5332, the Contractor agrees to refrain
from discrimination against present and prospective employees for reason of age. In addition, the
Contractor agrees to comply with any implementing requirements FTA may issue.
( c) Disabilities - In accordance with section 102 of the Americans with Disabilities Act, as
amended, 42 U.S.C. § 12112, the Contractor agrees that it will comply with the requirements of U.S.
Equal Employment Opportunity Commission, "Regulations to Implement the Equal Employment
Provisions of the Americans with Disabilities Act," 29 C.F.R. Part 1630, pertaining to employment of
persons with disabilities. In addition, the Contractor agrees to comply with any implementing
requirements FTA may issue.
(3) The Contractor also agrees to include these requirements in each subcontract financed in whole or in
part with Federal assistance provided by FTA, modified only if necessary to identify the affected parties.
7
Termination of Contract
a. Termination for Convenience (General Provision) The City ofJefferson may terminate this contract,
in whole or in part, at any time by written notice to the Contractor when it is in the Government's best
interest. The Contractor shall be paid its costs, including contract close-out costs, and profit on work
performed up to the time of termination. The Contractor shall promptly submit its termination claim to
the City of Jefferson to be paid the Contractor. If the Contractor has any property in its possession
belonging to the City of Jefferson, the Contractor will account for the same, and dispose of it in the
manner the City ofJefferson directs.
b. Termination for Default [Breach or Cause] (General Provision) If the Contractor does not deliver
supplies in accordance with the contract delivery schedule, or, if the contract is for services, the
Contractor fails to perform in the manner called for in the contract, or if the Contractor fails to comply
with any other provisions of the contract, the City ofJefferson may terminate this contract for default.
Termination shall be effected by serving a notice of termination on the contractor setting forth the
manner in which the Contractor is in default. The contractor will only be paid the contract price for
supplies delivered and accepted, or services performed in accordance with the manner of performance
set forth in the contract.
If it is later determined by the City ofJefferson that the Contractor had an excusable reason for not
performing, such as a strike, fire, or flood, events which are not the fault of or are beyond the control of
the Contractor, the City of Jefferson , after setting up a new delivery of performance schedule, may
allow the Contractor to continue work, or treat the termination as a termination for convenience.
c. Opportunity to Cure (General Provision) The City of Jefferson in its sole discretion may, in the case of
a termination for breach or default, allow the Contractor [an appropriately short period of time] in
which to cure the defect. In such case, the notice of termination will state the time period in which cure
is permitted and other appropriate conditions
If Contractor fails to remedy to the City of Jefferson's satisfaction the breach or default of any of the
terms, covenants, or conditions of this Contract within [ten (10) days] after receipt by Contractor of
written notice from the City ofJefferson setting forth the nature of said breach or default, the City of
Jefferson shall have the right to terminate the Contract without any further obligation to Contractor.
Any such termination for default shall not in any way operate to preclude the City of Jefferson from also
pursuing all available remedies against Contractor and its sureties for said breach or default.
d. Waiver of Remedies for any Breach In the event that the City of Jefferson elects to waive its remedies
for any breach by Contractor of any covenant, term or condition of this Contract, such waiver by the City
of Jefferson shall not limit the City of Jefferson's remedies for any succeeding breach of that or of any
other term, covenant, or condition of this Contract.
e. Termination for Convenience (Professional or Transit Service Contracts) The City of Jefferson , by
written notice, may terminate this contract, in whole or in part, when it is in the Government's interest.
If this contract is terminated, the Recipient shall be liable only for payment under the payment
provisions of this contract for services rendered before the effective date of termination.
8
f. Termination for Default (Supplies and Service) If the Contractor fails to deliver supplies or to perform
the services within the time specified in this contract or any extension or if the Contractor fails to
comply with any other provisions of this contract, the City of Jefferson may terminate this contract for
default. The City of Jefferson shall terminate by delivering to the Contractor a Notice of Termination
specifying the nature of the default. The Contractor will only be paid the contract price for supplies
delivered and accepted, or services performed in accordance with the manner or performance set forth
in this contract.
If, after termination for failure to fulfill contract obligations, it is determined that the Contractor was not
in default, the rights and obligations of the parties shall be the same as if the termination had been
issued for the convenience of the Recipient.
j. Termination for Convenience of Default (Cost -Type Contracts) The City ofJefferson may terminate
this contract, or any portion of it, by serving a notice or termination on the Contractor. The notice shall
state whether the termination is for convenience of the City of Jefferson or for the default of the
Contractor. If the termination is for default, the notice shall state the manner in which the contractor
has failed to perform the requirements of the contract. The Contractor shall account for any property in
its possession paid for from funds received from the City of Jefferson, or property supplied to the
Contractor by the City ofJefferson. If the termination is for default, the City of Jefferson may fix the fee,
if the contract provides for a fee, to be paid the contractor in proportion to the value, if any, of work
performed up to the time of termination. The Contractor shall promptly submit its termination claim to
the City of Jefferson and the parties shall negotiate the termination settlement to be paid the
Contractor.
If the termination is for the convenience of the City ofJefferson, the Contractor shall be paid its contract
close-out costs, and a fee, if the contract provided for payment of a fee, in proportion to the work
performed up to the time of termination.
If, after serving a notice of termination for default, the City ofJefferson determines that the Contractor
has an excusable reason for not performing, such as strike, fire, flood, events which are not the fault of
and are beyond the control of the contractor, the City of Jefferson , after setting up a new work
schedule, may allow the Contractor to continue work, or treat the termination as a termination for
convenience.
Incorporation of FTA Terms
The Recipient and contractor certify that terms in FTA C 4220.1E which replaces FTA C4220.1D will be
incorporated into contracts and sub -contracts.
Disadvantaged Business Enterprise
To the extent required by Federal law, regulation, or directive, the Recipient agrees to take the following
measures to facilitate participation by disadvantaged business enterprises (DBE) in the Project:
(1) The Recipient agrees and assures that it will comply with TEA -21 § 1101(b), 23 U.S.C. § 101 note,
and U.S. DOT regulations, "Participation by Disadvantaged Business Enterprises in Department
of Transportation Financial Assistance Programs," 49 C.F.R. Part 26.
9
(2) The Recipient agrees and assures that it shall not discriminate on the basis of race, color, sex,
or national origin in the award and performance of any third party contract, or subagreement
supported with Federal assistance derived from U.S. DOT or in the administration of its DBE
program and will comply with the requirements of 49 C.F.R. Part 26. The Recipient agrees to
take all necessary and reasonable steps set forth in 49 C.F.R. Part 26 to ensure
nondiscrimination in the award and administration of all third party contracts and
subagreements supported with Federal assistance derived from U.S. DOT. As required by 49
C.F.R. Part 26 and approved by U.S. DOT, the Recipient's DBE program is incorporated by
reference and made part of the Grant Agreement or Cooperative Agreement. The Recipient
agrees that implementation of this DBE program is a legal obligation, and that failure to carry
out its terms shall be treated as a violation of the Grant Agreement or Cooperative Agreement.
Upon notification by U.S. DOT to the Recipient of its failure to implement its approved DBE
program, U.S. DOT may impose sanctions as provided for under 49 C.F.R. Part 26 and may, in
appropriate cases, refer the matter for enforcement under 18 U.S.C. § 1001, and/or the
Program Fraud Civil Remedies Act, 31 U.S.C. §§ 3801 et seq.
Debarment and Suspension (non -procurement)
This contract is a covered transaction for purposes of 49 CFR Part 29. As such, the contractor is required
to verify that none of the contractor, its principals, as defined at 49 CFR 29.995, or affiliates, as defined
at 49 CFR 29.905, are excluded or disqualified as defined at 49 CFR 29.940 and 29.945. The contractor is
required to comply with 49 CFR 29, Subpart C and must include the requirement to comply with 49 CFR
29, Subpart C in any lower tier covered transaction it enters into. By signing and submitting its bid or
proposal, the bidder or proposer certifies as follows:
The certification in this clause is a material representation of fact relied upon by the City of Jefferson. It
if is later determined that the bidder or proposer knowingly rendered an erroneous certification, in
addition to remedies available to the City of Jefferson, the Federal Government may pursue available
remedies, including but not limited to suspension and/or debarment. The bidder or proposer agrees to
comply with the requirements of 49 CFR 29, Subpart C while this offer is valid and throughout the period
of any contract that may arise from this offer. The bidder or proposer further agrees to include a
provision requiring such compliance in its lower tier covered transactions.
Energy Conservation Requirements
The contractor agrees to comply with mandatory standards and policies relating to energy efficiency
which are contained in the state energy conservation plan issued in compliance with the Energy Policy
and Conservation Act.
10
Evers & Company, CPA's, L.L.C.
Certified Public Accountants and Consultants
November 4, 2019
To the Honorable Mayor and
Members of the City Council
City of Jefferson, Missouri
320 East McCarty St.
Jefferson City, MO 65101
Richard E. Elliott
Dale A. Siebeneck
Jo L. Moore
Wendy M. Renner
Eldon H. Becker, Jr.
Bruce A. Vanderveld
Jessica L. Bridges
Bobbie J. Redmon-Murray
Elmer L. Evers, Emeritus
Jerome L. Kauffman, Emeritus
Keith L. Taylor, Emeritus
We are engaged to audit the financial statements of the governmental activities, the business -type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of City of Jefferson, Missouri for the year ended October 31, 2019.
Professional standards require that we provide you with the following information related to our audit.
Our Responsibilities under U.S. Generallv Accepted Auditing Standards, Government Auditing
Standards, and the Uniform Guidance
As stated in our engagement letter dated July 17, 2019, our responsibility, as described by professional
standards, is to express opinions about whether the financial statements prepared by management with
your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted
accounting principles. Our audit of the financial statements does not relieve you or management of your
responsibilities.
In planning and performing our audit, we will consider City of Jefferson, Missouri's internal control
over financial reporting in order to determine our auditing procedures for the purpose of expressing our
opinions on the financial statements and not to provide assurance on the internal control over financial
reporting. We will also consider internal control over compliance with requirements that could have a
direct and material effect on a major federal program in order to determine our auditing procedures for
the purpose of expressing our opinion on compliance and to test and report on internal control over
compliance in accordance with the Uniform Guidance.
As part of obtaining reasonable assurance about whether City of Jefferson, Missouri's financial
statements are free of material misstatement, we will perform tests of its compliance with certain
provisions of laws, regulations, contracts, and grants. However, providing an opinion on compliance
with those provisions is not an objective of our audit. Also in accordance with the Uniform Guidance,
we will examine, on a test basis, evidence about City of Jefferson, Missouri's compliance with the types
of compliance requirements described in the U.S. Office of Management and Budget (OMB)
Compliance Supplement applicable to each of its major federal programs for the purpose of expressing
an opinion on City of Jefferson, Missouri's compliance with those requirements. While our audit will
provide a reasonable basis for our opinion, it will not provide a legal determination on City of Jefferson,
Missouri's compliance with those requirements.
520 Dix Road, Suite A • Jefferson City, Missouri 65109 • 573/635-0227 • FAX 573/634-3764
5886 Osage Beach Parkway, Ste. A 9 Osage Beach, Missouri 65065 9 573/348-4141 • FAX 573/348-0989
We gave significant consideration to nonaudit services provided or expected to be provided, which may
reasonably be thought to bear on independence, in reaching the conclusion that independence has not
been impaired.
Generally accepted accounting principles provide for certain required supplementary information (RSI)
to supplement the basic financial statements. Our responsibility with respect to Management's
Discussion and Analysis, Pension Plan Related Schedules, and Budgetary Comparison Schedules, which
supplement(s) the basic financial statements, is to apply certain limited procedures in accordance with
generally accepted auditing standards. However, the RSI will not be audited and, because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance,
we will not express an opinion or provide any assurance on the RSI.
We have been engaged to report on Schedule of Expenditures of Federal Awards, Combining Non -
Major Governmental Fund Financial Statement, Internal Service Fund/Agency Fund Financial
Statements, and Capital Assets used in Operation of Governmental Fund Statements which accompany
the financial statements but are not RSI. Our responsibility for this supplementary information, as
described by professional standards, is to evaluate the presentation of the supplementary information in
relation to the financial statements as a whole and to report on whether the supplementary information is
fairly stated, in all material respects, in relation to the financial statements as a whole.
We have not been engaged to report on the Introductory Section and Statistical Section, which
accompany the financial statements but are not RSI. Our responsibility with respect to this other
information in documents containing the audited financial statements and auditor's report does not
extend beyond the financial information identified in the report. We have no responsibility for
determining whether this other information is properly stated. This other information will not be audited
and we will not express an opinion or provide any assurance on it.
Planned Scone and Timing of the Audit
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to be
examined and the areas to be tested.
Our audit will include obtaining an understanding of the entity and its environment, including internal
control, sufficient to assess the risks of material misstatement of the financial statements and to design
the nature, timing, and extent of further audit procedures. Material misstatements may result from (1)
errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or
governmental regulations that are attributable to the entity or to acts by management or employees
acting on behalf of the entity. We will generally communicate our significant findings at the conclusion
of the audit. However, some matters could be communicated sooner, particularly if significant
difficulties are encountered during the audit where assistance is needed to overcome the difficulties or if
the difficulties may lead to a modified opinion. We will also communicate any internal control related
matters that are required to be communicated under professional standards.
We expect to begin our audit on approximately January D, 2020. Jo Moore is the engagement partner
and is responsible for supervising the engagement and signing the report or authorizing another
individual to sign it.
This information is intended solely for the use of the Honorable Mayor and Members of the City
Council and management of City of Jefferson, Missouri and is not intended to be and should not be used
by anyone other than these specified parties.
Very truly yours,
�-� Z 6�7n�. I eA4 JOILLG
Evers & Company, CPA's L.L.C.