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HomeMy Public PortalAboutORD16361BILL NO. 2023-023 SPONSORED BY Councilmember Hensley ORDINANCE NO. R.P3tof AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH EVERS & COMPANY, CPAS, LLC, FOR AUDIT SERVICES. WHEREAS, Evers & Company, CPAs, LLC has become the apparent lowest and best offer 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, CPAs, LLC is declared to be the best proposal meeting specifications and is hereby accepted. Section 2. The Mayor and the City Clerk are hereby authorized and directed to execute an agreement with Evers & Company, CPAs, LLC for audit services. Section 3. The agreement shall be substantially the same in form and content as the agreement attached hereto as Exhibit A. Section 4. The Ordinance shall be in full force and effect from and after the date of its passage and approval. Passed: Juitj 17) 2023 Presiding 0 ATTEST: Approved: Ju.ty I9 �,POD, Mayor Ron Fitzwa APPROVED AS TO FORM: 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 Public 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: P 1 Fiscal Year (2023)-$75,750.00 2"d Fiscal Year (2024)-$79,050.00 3rd Fiscal Year (2025) -$82,500.00 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 November 1, 2023, and continue until October 31, 2024. This agreement shall automatically renew for two (2) additional one (1) fiscal 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. 2 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, though City will attempt to so notify any such assignee. 9. Confidentialitv. 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. 3 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, 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 4 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 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. [Signatures to Follow on Next Page] CITY Of JEFFERSON, MISSOURI R011 Fitzw , . ayo z Date: 07 18 3 ATTEST: ; 4 1 , .40 "1, 1 1 '! 4 APPROVED AS TO FORM: City At orne CPA's LLC 5 FVF,RS & COMPANY, E-ER+fFfEH & �dj-- Title: Audit PaAuer Date: 06/20/2023 ATTEST: Title: EXHIBIT A CITY OF JEFFE1MN Jefferson City, Missouri FOR THE, YEAR ENDED OCT Si, 2023 Presented By: EVERS & COMPANY Certified Public Accountants, L.L.C. 520 Dix Road Jefferson City, Missouri 65109 Contact Wendy M. Renner, CPA Audit Partner (573) 635-0227 May 30 2023 To the Honorable tv layor and Members of th e City Council C ity of Jefferso n, M isso ur-i TransmiUal Le tter Richard E. Ellio tt Dale A . Siebeneck Wendy M. Renner Eldon H. Becker, Jr. Jessica L. Bridges Bobbie J . Redmon-Murray Kevin B. Johnson Theresa E. Price Elmer L. Evers, Emeritus Jerome L. Kauffman, Emeritus Keith L. Taylo r, Emeri tus Bruce A. Vanderveld, Emeritus Jo L. Moore, Emeritus Evers and Com pany, CPA's, L.L.C. is plea se d to subm it a proposa l to the C ity of .Jefferson, M isso uri. The objective of our audit is th e exp ress io n of an opinion as to whet her your financia l s tat ements are fairly pr ese nted, in al l material respects, in conformity with U.S. ge nera ll y accepted acco untin g princip les and to repo rt on t he fairne ss of the supp lementa ry informat ion when considered in relation to Uw financial statements as a who le. The objective also includes reporting o n: • Internal control over financ ial reporting a nd compl iance with provisions of laws, regula ti ons, contracts. and award agreements, noncompliance with which cou ld have a material effect on the financial statements in accordance w ith Government Auditing Standar ds. • Int ernal control over compl ia nce re lated to major programs and an opinion (o r disclaimer of opinion) on comp li ance with federal statutes, regulations, and the terms and co ndition s offederal awards that cou ld have a direct and material effect on eac h major program in accordance with the Si ng le Aud it Act Amendmen ts of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Adm inislrative Requirements, Cost Principles, and Audit Requirements for Federal !hFards (Uniform Guidance). 520 Dix Road, Suite A • Jefferson City, Missouri 65109 • 573/635-0227 • FAX 573/634-3764 5886 Osage Beach Parkway, Ste. A • Osage Beach. M1ssouri 65065 • 5731348-4141 • FAX 5731348-0989 The Government Auditing Standards report on internal con~ol. over financial reporting 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 internal 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. Unifo1m 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 Board of Regents of City of Jefferson, Missouri. 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 opinion is 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 an opinion, we may decline to express an opinion or issue reports, or we may withdraw from this engagement. Evers & Company, CPA's L.L.C. is committed to perform the services in accordance with the time period detailed in the request for audit proposal. Wendy Renner is the engagement partner and is responsible for representing the fmn. 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: ' Partners Professional Staff IT Support Para-Professional Staff Office Support Staff Sincerely, EVERS & COMPANY, CPA's, L.L.C. Jefferson City, Missouri Audit Partner 4 8 2 2 5 21 ATTACHMENTA-PROPOSALFORM (Only l:lSe this form if submitting a hard-copy bid) Proposer shall provide firm, faed pricing to provide audit services for the City of Jefferson. p . . h ll . l d ll . d l d l rzczngs a znc u e a assoczate costs to inc u e: abor, supplies, travel, etc. Item FYEnding FYEnding FYEnding # Item Description October31, October31, October31, 2023 2024 2025 ' Annual Financial Report 1. without GFOA Submission $75,750 $79,050 $82,500 OPTION A: Annual "2. Comprehensive Financial Report with GFOA . $77,92~ $81,325 $84,890 Submission SUBCONTRACTORS All subcontracto~s shall be listed. if the bidder intends to use subcontractors. Discount for prompt pa~ment on invoices only._%_ days .. Dis~ount ~U not be evaluated. The prices contained in this proposal are firm for~ days. . . Do you represent a disadvantaged business enterpri$e? YES _NO __!_ Do you represent a woman-owned-business enterprise? YES_ NO..!_ "fYe are a woman majority owned business. J/We the undersigned do herby certify that the information presented in this bid is true" and accurate. and agree. to provide the specified products and services ai the price and time in· accordance with the ierms and specifi~ations stated herein if awarded the bid . . NAMEOFCOMPANY EVERS & COMPANY, CPAS LLp AGENT AND TITLE WENDY M. RENNER, CPA ADDRESS 520 DIX ROAD, JEFFERSON CITY, MO 6510~ TELEPHONE 573-635-0227 DATE 5/30/23 EMAIL ADDRESS wrenner@eversc: -~ SIGNATURE OF PROPOSi:m. {b1Jul1t =~i./<. .1/~ . ... ATTACHMENT E-ANIT·COILUSION STATEMENT ANTI-COLLUS19N STATEMENT STATE 0~ _M_I ..... S-...SO;...,;;U....;..;R.;.;..I ------....J) COUNTYOF~C~OL=E~------------~) ----~wmiD==~Y~M~·-=RE=NN==E=R~1 ~C=P~A~---------------------------b~gfimtdmy&Wom deposes· and says that he is MEMBER of . EVERS & COMPANY 1 CPA'S LLC . Tn'LB OF PERSON SIGNING NAME OF PROPOSEll . that all statements made. and facts set out· in the bid for the above project are true and correct; and that the Proposer (the person, finn, association, or corporation making s~id bid) has.not, either directly or indirectly, entered into aqy agreement, participated in any collusion, or otherwise taken any action in restraint offtee competitive bidding in connection with such bid of any contract which results from ~ts acceptance .. Affiant further certifies that Proposer is not financially interested in, or financially affiliated With, any other Proposer for the above project (BY) /klbdf »(l(u,ffl) (BY) ____________ _ Swomtobeforemetl!is$2'/JJ dayof~~:;v;. 2023.~ · ~dfb«RMv . NotaryPub~ ~ /1 M . ·. . f}JAJo .·;/} :J.Dti3 . . y coiDD11Sston ~xpues: -~----i~..;,._ __ O--:.., _______ _ MELISSA J. BRANDT·OUDEMHOEFFER. Notary Publtc • Notary Seal Cole County • State of Missouri Commission Number 156l6143 My Commission Expires Jun 18. 20i3 • ~sr~ (·. ~-',=·~~.:E .. ~¥.e .. ·. rl. ~.. _ , ' ~ I 7ta---~~------------••·•arn u A na•rn or ou '} ( ( .. · Company ID Number: 236637 lhf~rmatlon.R~quired for file E-Verify·.Program .. . . Information ref*tlng to.your Conip~ny: · Company Name: Evers and Company CPAs LLC Co~~~F~lli-A~dres~~5-~~m_x_R~~~d~~~~~~~~~~~~~~~~~~~ Jefferson City. MO 65109 · Comp~ny· ~~~~r.nate. · A~~.res•=---=---------=--------~:..._ ______ _ County or Parish: COLE ----------------...._----------------------------~ Employer Identification · Number: 431121359 ------------------------------------------------- North American Industry · · Classification Systems Code:~S-4_1 __ ---------------------------------------------- Parent Company:_---------------------------------- Number of f:mployees:...;.2...:..0...:..to.:.... 9_9-----------------....:.....---------------- Number of Sites Verified · for: 1 ----.-~--------------------------~----------~ Are· you verli\flng .for mot&·tlian 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 Employe~Revision Date 10129/08 8M . ( ,~-VerifY------------'""¥.~ • Company 10 Number: 236637 ( ( 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, conta~t E-Verify at 888-464-4218. Employer Evers._~nd-Comp~ny C~As.LLC Jo·Moore Name (Please Type or Print) TiUe Eledtron/cal/y Signed 08/10/2009 · Signature · -=-oa-=-te------------- Department' of Hoinelan·d Security-Verification Division . . .\ USCIS Verification DIVIsion Name (~lease Type or.Prlnt) Title Elsctronlca//y SljJned 08/10/2009 Signature · =oa-'!"te------------- Page 11 of 13IE.Verify MOU for EmpfoyerjRevision Date 10129108 May 30,2023 To the Honorable Mayor and Members of the City Council City of Jefferson, Missouri L.L.C. Richard E. Elliott Dale A. Siebeneck Wendy M. Renner Eldon H. Becker, Jr. Jessica L. Bridges Bobbie J. Redmon-Murray Kevin B. Johnson Theresa E. Price Elmer L. Evers, Emeritus Jerome L. Kauffman, Emeritus Keith L. Taylor, Emeritus Bruce A. Vanderveld, Emeritus Jo L. Moore, Emeritus We are pleased to confirm our understanding of the services we are to provide for City of Jefferson for the year ended October 31, 2023. The tetms of this agreement represent a one year extension of the three year engagement originally dated May 30, 2023. Audit Scope and Objectives We will audit the financial state1nents 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 year ended October 31, 2023. Accounting standards generally accepted in the United States of America provide for certain required supplementary inforn1ation (RSI), such as managetnent'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 Governn1ental 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 A.Jnerica (GAAS). 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 inforn1ation 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 573/63+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 accompames 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 informatipn directly to the underl~g accounting and other records used to prepare the financial statements or to the financial statements themselves, and other 8;dditional procedures in accordance with GAAS; and we will provide an opinion on it in relation to the :fin8ncial statements as a whole:· 1. Schedule of Expenditures of Federal A wards. 2. Combining Non .. Major Funds Financial Statements 3. Internal Service Fund/ Agency Fund Financial Statements The objectives of otir audit are to obtain reasonabl~ assurance about whethet the financial statements as a whole are free from material misstatement, whether due to fraud or error, and issue an auditor's report that ~eludes our opinions about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP, and report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as whole. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit c.onducted in llCCOrdance with GAAS and Goveminent Auditing Standards will.always detect a material misstatement when it exists. Misstatements, including omissions,.can.arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment of a reasonable user made based on the financial statements. The objectives also include 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). Audit_ors' Responsibilities for the Audit of the Financial Stateme:t:tts and Single Audit We will conduct our audit in accordance with GAAS; the standards for financial audits contained· in .Governme~t Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendnients 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 Uniform Guidance, and other · procedures we consider necessary to enable us to ex:Press such opinions. As part of an audit in B.CQOrdance with GAAS and Government Auditing Standards, we exercise professional judgment and maintain l>rofessio~ skepticism throughout the audit. 2 We will evaluate the appropriateness of accounting policies used and the reasonableness of significant · accounting estimates made by management We will also evaluate the overall presen~tion of the financial statements, including the disclosures, and determine whether. the financial statements ~present the underlying transactions and events in a manner· tlfat achieves fair presentation. 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 ofla~. or governmental regulations that are attributabl~ to the government or to acts by'. management or employees acting on behalf of the government. Because the determination of waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures . to detect waste or abuse in financial audits nor do they expect auditorS to provide reasonable assurance. of detecting waste or 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 an unavoidable risk. that some material misstatements or noncompliance may not be detected by us, even though the audit is properly planned and performed in accordance with GAA:S 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 on major programs. However, we will inform the apP.ropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to our attention. We wDl also inform ·the . appropriate level of management of any violation~ of laws or governmental reguiations that come to our attention, unless clearly inconsequential. We will include such matters in the reports required for a Single Audit. Our respon.Sibility as auditors is limited to the· period covered by our audit anci does not. ext~nd to any later periods for' which we are not engaged 8:8 auditors. We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that ·raise substantial doubt about the government's ability to continue as a going concern for a reasonable period of time. · Our procedures will int?lude tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected individuals, funding so~s, creditors, and ~cial institutions. We will also request written representations from your attorneys as part of the engagement. Our audit of financial statements does not relieve you of your responsibilities. Audit Procedures-Internal Control We will obtain an understanding of the government and its environment, including the system of internal . control, sufficient to identify and assess the risks of material misstatement of the financial. statements, whether due to error or fraud, and to design and perform audit.procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinioQS. The risk of not detecting a material misstatement resulting from fraud is higher tb:an for one resulting from error, as ~ud may involve colluSion, forgery, intentional omissions, misreprese~ta.tion, or the override of internal control. Tests of controls may be performed to test the effectiveness o~ certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to 3 . preventing and detecting misstatements resulting· from. illegal acts and other noncompliance ~atters 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 purs~t 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 requilements applicable to each major federal aviard 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 pr9vide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we wip. express no such opinion~ However, during the audit, we will communicate to management and those charged with governance internal control related matters that are req~ed to be communicated under AI CPA professional ~dards, Government Auditing Standards, and the Uniform Guidance. Audit Procedures-CompUance. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatem~nt, we will perform tests of City of Jefferson' compliance with provisions of applicable laws, regulations, ~ntracts, and agreements, including grant agreements. However, the objective of those procedures will Ii.ot 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 pro~. Our procedures will consist of tests of transactions and other applicable proCedures described in the ONJB Compliance Supplement for the types of compliance requiremen~ that could have a direct and material effect on each of City of Jefferson' major programs. For federal programs that are included in the Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the Compliance Supplement identifies as being subject to audit. The purpose of these procedures will be to express an opinion on City of Jefferson' compliance ~th requirements applicable to each of its major programs in our report on compliance issued purs~t to the Uniform Gui~ce. Other Serviees We will also assist in preparing the schedule of expenditures of federal awards and related notes of City of Jefferson in ·cOnformity with 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 Standalds. We will perform the services in accordance with applicable professional standards. The other services are limited to the sehedule 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 procedures or take any action ~t could be construed . as assuming uianageQlent responsibilities. 4 You agree to assume all inanagement responsibilities for the schedule of expenditures of federal awards and related notes and any other nonaudit services we provide. You will be required to acknowledge in the ~ement representation letter our assistance with preparation of the schedule of expenditQies of federal awards and related notes and that you have reviewed and approved the schedule of expenditures of federal awards .and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to over8ee the nonaudit services by designating an individual, preferably from senior ~ement, with suitable skill, knowledge, or experience; evaluate the adequacy ~d results of those . services; and accept responsibility for them. · Responsibilities of Management for the Financial Statements and Single Audit Our audit will be conducted on the basis that you acknowledge and understand your responSibility 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 appropri•e goals and objectives are met; (2) following laws an(\ 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, re~ations, contracts, and grant agreements. You are also responsible for the selection and application of acco\mting principles; for the preparation and fair presentation of the financial statements, schedule of expenditures of federal awards, and all accompanying information in conformity with accounting principles generally accepted in the United States of America; and for compliance with applicable laws and regulations (including federal statutes), roles, and the 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. You are also responsible for making drafts of financial statements, schedule of expenditures of federal awards, all financial records, and related information available to us and for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers). You are also responsible for providing us with (1) access to all infomiation of which you are aware that is relevant to ·the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related-party relationships. and transactions, and other matters; . (2) access to personn~l, accounts, books, records, suppo~g docwnentation, and other information as needed to perform an audit under the Uniform Guidance; (3) additional information that we may reqqest 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. At the conclusion of our au~it, we will require certain written .representations from you about the. financial statements; schedule of exp~nditures of federal awards; federal award programs; compliance with laws, regulations, contracts, and grant agreements; and . related matters. · 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: 8re jmmaierial, both individually and in the aggregate, to the financial statements of each opinion unit taken 8$ a whole. 5 Ypu are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for infoiming us about all known or suspected fraud affecting the government involving (1) maDagement, (2) ~mployees who have signifiCant roles in i.itternal 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 ·governrilent received in communications from employees, former employees, grantors, regulators, or others. In addltion, you are· responsible for identifying and ensuring that "the government complies with applicable laws, regulations, . con1racts, agreements, and grants. You are also responsible for taking timely and appropt:iate steps to remedy fraud and noncompliance with pro~sions of laws, regulations, contracts, and grant ~ments . · that we report. Additionally, as required by the Uniform Guidance, it is management's responsibility to . eyaluate. 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. You are responsible for identifying all federal awards received and understanding and complying with the compliance· requirements. and for the pr.eparation of the schedule of expenditures of federal awards (including notes and noncash assistance received, an.d COVID-19-related concepts, -such as lost revenues,.· · if applicable) in conformity with the Uniform· Guidance. You agree to include our report on the schedule· of expen(Utures 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 ~cial statements with any presentation of the schedule of expenditures of federal awards that includes om report thereon. OR make the audited financial statements readily available to intended· users of the . sch~ule of . expenditures of federal awards no later than the date the schedule .of expenditures of feder~ awards i~ issued with our report thereon. Your responsibilities include acknowledgfug to us in the Written . representation letter .that (1) you are responsible for presentation of the schedule of expenditures of federal ~wards 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 th~ Uniform Guidance; (3) ~e methods of measurement or pres~ntation have not c~ged from those used in the prior period (or, if they have chang~ the reasons for such c~g~); and (4}youhave ~closed to us any sigmficant assumptions or interpretations tinderlying 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 p~ciples (GAAP). You agree to include our report on the supplementary information in any document tha~ contains, and indicates that we have reported on, the supplementary information. You also agree to in~lude the audited financial statements with any presentation of~e supplem~ntary 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 th~ prior perio4 (or, ·if they have changed, the reasons for such changes); and ( 4) you have disclosed tQ ~ any· si~cant ~ptions or interpretations underlying the measurement or .presentation of ~e supplementary · · inforination. · 6 -Management is responsible for establishing and maintaining a process for traclc4lg the status of audit _findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits, or other studies related to ~e objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and· recommendations res~ting from those audits, attestation engagements, performance audits, or studies. You are also reSponsible for providing management's views on OW' current findings, C?Onclusions, and recommendations, as well as your planned corrective actions for the report, and for the timing and format for providing that information. 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 elect:rQnically submit the reporting package (including financial statements, schedUle of expenditures of federal awards,· summary schedule of prior audit findings, auditor's 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 auditor's reports or nine months after the end .of the audi~ period. We will provide copies of our reports to the City of Jefferson, Missouri; however, management is r~ponsible 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 Pl:lblic inspection. · The audit documentation for this engagement is the property of. Evers & Company, CPA's, L.L.C. ~d constitutes confidential information. However; subject to applicable laws and J;egulations, audit documenta~on and_ appropriate individuals will be made available upon request and in a timely manner to OVersight Agency 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, L.L.C. 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 iirformation 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 aqy additional period requested by the Oversight Agency. If we are aware that a federal · awarding agency, pass-through entity, or auditee is conte~ting an audit finding, we will contact the party(i~) contesting the audit fin~g for guidance prior to destroying t!te au~t documentation.· . Wendy M. ReDQ.er is the engagement partner and is ~ponsible for supetvising the engagement and signing the reports or authorizing another individual to them .. 'W_e expect to _begin our· audi~ on _ approximately Deeember_ll, 2023. · .7 .. Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses will not exceed amounts in the following schedule: · · Optionl Option2 2023 . $75,750 $77~25 2024 "$79,050 $8~,325 2025 $82,5~0 $84,890 Our standard hourly rates vary according to the degree·of responsibility involved and the experience level of the personnel ~igned to your audit ~ invoices for ~ese fees will be rendered each month as work progresses and are payable on presentation. In accordance with our :firm policies, work may~ suspended if y~ur 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 inonth will be applied. to all past-due balances. If ·we elect to t~ our services for nonpayment, our engagement will. be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will Jje obligated to compensate us for all time expended and to re4nburse us for all out~f-pocket costs through the date of termination. · The above fee is based on anticip~ted cooperation from your personnel and the assumption that unexpected· circumstances will not be encountered during the audit If significant additi9nal time is necessary, we will discuss .it with you and arrive at a new fee ·estimate before we incut . the additional costs. · · Reporting We will issue written reports upon completion of our financial statem~t and Single Audit Our reports ~ be addressed to. the Mayor and Board of Aldermen of City of Jefferson. Circumstances may arise in which our report may differ from its expected fo~ and content based on the ·results of our aUdit · Depending on the nature of these circumstances, it may be necessary for~ to modify our opinions, add a separate section, or ~ an· emphasis-of-matter or other-matter paragraph to our auditor's report, or if . necessary, with~w from this en~ement If our opinions ~e other than unmqdjfied, w:e will discuss the reason8-with you iii advance. If, for any reason, we are unable to complete the ~udit or are unable to form or have not formed opinions, we may decline to express opil)ions or issue reports, or we may withdraw fro~ this engagement. · The Government Auditing Standards report on internal control over financial reporting and on oompliance and other matters win state 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 . ~t performed in .accordance with Government Auditing Standards in considering th~ entity's internal . control and compliance. The Uniform Guidance report on internal control over compliance will state that · tlie purpose of the report on internal control over compliance is solely to 4escribe .the scope of testing of ·internal eontrol over compliance and the results of that testing based on the requirements of the Uniform . Guidance. Both reports ~ state that the report is not suitable for ~y· oth~r purpose. 8· Audit Hourly Approx.imate Professional Title Rate Hours Total · Wendy Renner Partner 175 95 $ 16,625 Bobbie Murray Partner 175 95 16,625 Adrienne Finely Manager 150 90 15,000 Jordan Frisby Supervisor 145 90 13,050 Kelsey Ryerson Staff Accountant · 95 50 4,750 Connor Muenks Staff Accountant 145 45 6,525 Nikki Ryan Staff AccoWltant 130 55 7,150 Pat Badell Staff Accountant 130 55 7,150 Total 86,875 Discount {11,125} $ 75,750 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 attached copy and return it to us. Very truly yours, EVERS & COMPANY, CPA's, L.L.C. Jefferson City, Missouri WENDY M. RENNER, CPA Audit Partner RESPONSE: This letter correctly sets forth the understanding of the City of Jefferson. Officer signature: _______________ _ Title:. ______________ _ Date:. ________ _ 9 CHECKLIST OF INFORMATION TO BE PREPARED I 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, 2023, 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 ofbad 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, term, and __ _ premium paid. Also, have the policies available for our inspection. . · __ Prepare confirmation letters to confilm 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 depreciati~n for the enterprise funds. Prepare an analysis of all transactions affecting marketable secmities during the period ~ve 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 availabl~ .~us. · 20 Have a copy of any employment contracts with staff available to us. ·Have all payrott tax reports available to us. __ Prepare. a sch~W.e of all professional fees paid Have copies of the minutes of the Coun~ and committee meetings available for our inspection. . . Prepare a schedule of prepaid insurance and accrued ~ce. . __ Prepare a schedule of all construction-in.:.progress, con1racts 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 documc;m.ts available for inspection. · Have a copy of grant contracts available for us . . __ Have available a copy of the budget report compaled with cash receipts and disblll'Sements, for the General Fund ~ Special Revenue :fimds. . Prepare property tax worksheet for c~t and prior years for real estate, personal and~ property tax receivables, and. current year collection and delinquent balances. · Proof of tax levy, including adjustments and abatements. Prepare schedule of allowm:tce for uncollecnole taxes for cmrent and prior years ( delinguent) · · . __ Have the various receivable items completed: Financial institution tax Sale8tax Gastax . 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 fimds Revenues re~ived in advance-Parking Authority Fund __ Prepare a schedule of Encumbrances· by fimd. __ Prepare a schedule of construction in progress by fund. . Have inventm:y 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. 22 6 EXHIBIT B-FEDERAL CLAUSES No Government Obligation to Third Parties - ( 1) The City and contractor acknowledge and agree that, notwithstanding any concurrence by the US Government in or approval of the solicitation or award of the underlying contract, absent the express written consent by the US Government, the US Government is not a party to this contract and shall not be subject to any obligations or liabilities to the City, the 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 FT A assistance. 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 USC 3801 et seq. and USDOT regulations, "Program Fraud Civil Remedies," 49 CFR 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 FT A 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, submittal, or certification, the US Government reserves the right to impose the penalties of the Program Fraud Civil Remedies Act ( 1986) on the contractor to the extent the US Government deems appropriate. (2) If the contractor makes, or causes to be made, a false, fictitious, or fraudulent claim, statement, submittal, or certification to the US Government under a contract connected with a project that is financed in whole or in part with FTA assistance under the authority of 49 USC 5307, the Government reserves the right to impose the penalties of 18 USC 1001 and 49 USC 5307(n)(1) on the contractor, to the extent the US Government deems appropriate. (3) The contractor shall include the above two clauses in each subcontract financed in whole or in part with FT A assistance. The clauses shall not be modified, except to identify the subcontractor who will be subject to the provisions. Access to Records and Reports -The following access to records requirements apply to this contract: 1. Where the City is not a State but a local government and is an FT A recipient or a sub grantee of FT A recipient in accordance with 49 CFR 18.36(i), the contractor shall provide the City, the FTA, the US Comptroller General or their authorized representatives access to any books, documents, papers and contractor records which are pertinent to this contract for the purposes of making audits, examinations, excerpts and transcriptions. The contractor shall also, pursuant to 49 CFR 633.17, provide authorized FT A representatives, including any PMO contractor, access to the contractor's 7 records and construction sites pertaining to a capital project, defined at 49 USC 5302(a)1, which is receiving FT A assistance through the programs described at 49 USC 5307, 5309 or 5311. 2. Where a City which is an FT A recipient or a subgrantee of FTA recipient in accordance with 49 USC 5325(a) enters into a contract for a capital project or improvement (defined at 49 USC 5302(a)(1)) through other than competitive bidding, the contractor shall make available records related to the contract to the City, the Secretary of US DOT and the US Comptroller General or any authorized officer or employee of any of them for the purposes of conducting an audit and inspection. 3. The contractor shall permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed. 4. The contractor shall maintain all books, records, accounts and reports required under this contract for a period of not less than three (3) 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 City, FT A Administrator, US Comptroller General, or any of their authorized representatives, have disposed of all such litigation, appeals, claims or exceptions related thereto. Re: 49 CFR 18.39(i)(l1 ). Federal Changes -The contractor shall comply with all applicable FT A regulations, policies, procedures and directives, including without limitation those listed directly or by reference in the Master Agreement between the City and FTA, as they may be amended or promulgated from time to time during the term of the contract. The contractor's failure to comply shall constitute a material breach of the contract. Civil Rights Requirement -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, section303 of the Age DiscriminationActof1975, 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 FT A 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 CFR Parts 60 et seq., (which implement Executive Order No. 11246, "Equal Employment Opportunity," as amended by Executive Order No. 11375, "Amending 8 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 FT A 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 FT A may issue. (c) Disabilities -In accordance with section 1 02 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 CFR Part 1630, pertaining to employment of persons with disabilities. In addition, the contractor agrees to comply with any implementing requirements FT A 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 FT A, modified only if necessary to identify the affected parties. Termination- a. Termination for Convenience (General Provision) the City may terminate this contract, in whole or in part, at any time by written notice to contractor when it is in the City'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. If the contractor is in possession of any of the City's property, the contractor shall account for same, and dispose of it as the City directs. b. Termination for Default [Breach or Cause] (General Provision) If the contractor does not deliver items in accordance with the contract delivery schedule, or, if the contract is for services, and 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 may terminate this contract for default. Termination shall be affected by serving a notice of termination to the contractor setting forth the manner in which contractor is in default. The contractor shall only be paid the contract price for supplies delivered and accepted, or for services performed in accordance with the manner of performance set forth in the contract. 9 If it is later determined by the City that 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 contractor, the City, after setting up a new delivery or 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 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 shall state the time period in which cure is permitted and other appropriate conditions. If the contractor fails to remedy to the City's satisfaction, the breach or default or any of the terms, covenants, or conditions of this contract within ten (1 0) days after receipt by the contractor or written notice from the City setting forth the nature of said breach or default, the City shall have the right to terminate the contract without any further obligation to the contractor. Any such termination for default shall not in any way operate to preclude the City 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 elects to waive its remedies for any breach by contractor of any covenant, term or condition of this contract, such waiver by the City shall not limit its remedies for any succeeding breach of that or of any other term, covenant, or condition of this contract. e. Termination for Default CSupolies 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 may terminate this contract for default. The City shall terminate by delivering to contractor a notice of termination specifying the nature of default. The contractor shall 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 termination had been issued for the City's convenience. Breach of Contract 1. In the event of material breach of the contractual obligations by the contractor, the City may cancel the contract. At its sole discretion, the City may give the contractor an opportunity to cure the breach or to explain how the breach will be cured. The actual cure must be completed within no more than 1 0 working days from notification, or at a minimum the contractor must provide the City within 1 0 working days from notification a written plan detailing how the contractor intends to cure the breach. 2. If the contractor fails to cure the breach or if circumstances demand immediate action, the City will issue a notice of cancellation terminating the contract immediately. If it is determined the 10 City improperly cancelled the contract, such cancellation shall be deemed a termination for convenience in accordance with the contract. 3. If the City cancels the contract for breach, the City reserves the right to obtain the equipment, supplies, and/or services to be provided pursuant to the contract from other sources and upon such terms and in such manner as the City deems appropriate and charge the contractor for any additional costs incurred thereby. 4. The contractor understands and agrees that funds required to fund the contract must be appropriated by the General Assembly of the State of Missouri for each fiscal year included within the contract period. The contract shall not be binding upon the City for any period in which funds have not been appropriated, and the City shall not be liable for any costs associated with termination caused by lack of appropriations. Disadvantaged Business Enterprise (DBE) - a. This contract is subject to the requirements of Title 49, Code of Federal Regulations, Part 26, Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs. The national goal for participation of Disadvantaged Business Enterprises (DBE) is 10%. The City's overall goal for DBE participation is listed elsewhere. If a separate contract goal for DBE participation has been established for this procurement, it is listed elsewhere. b. The contractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of this contract. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the municipal corporation deems appropriate. Each subcontract the contractor signs with a subcontractor must include the assurance in this paragraph (see 49 CFR 26.13(b)). c. Since no separate contract goal has been established, the contractor will be required to report its DBE participation obtained through race-neutral means throughout the period of performance. d. The contractor is required to pay its subcontractors performing work related to this contract for satisfactory performance of that work no later than 30 days after the contractor's receipt of payment for that work from the City. In addition, the contractor may not hold retainage from its subcontractors or must return any retainage payments to those subcontractors within 30 days after the subcontractor's work related to this contract is satisfactorily completed or must return any retainage payments to those subcontractors within 30 days after incremental acceptance of the subcontractor's work by the City and contractor's receipt of the partial retainage payment related to the subcontractor's work. e. The contractor must promptly notify the City whenever a DBE subcontractor performing work related to this contract is terminated or fails to complete its work, and must make good faith efforts 11 to engage another DBE subcontractor to perform at least the same amount of work. The contractor may not terminate any DBE subcontractor and perform that work through its own forces or those of an affiliate without prior written consent of the City. Incorporation of Federal Transit Administration (FT A) Terms -All US DOT -required contractual provisions, as stated in FT A Circular 4220.1 F, are hereby incorporated by reference. Anything to the contrary herein notwithstanding, all FT A mandated terms shall be deemed to control in the event of a conflict with other provisions contained in this contract. The contractor shall not perform any act, fail to perform any act, or refuse to comply with any request that would cause the City to be in violation ofFTA terms and conditions. Government-wide Debarment and Suspension (Non procurement)-The City agrees to comply with the requirements of2 C.F.R. part 180, subpart C, as adopted and supplemented by U.S. DOT regulations at 2 C.F.R. part 1200, which includes the following: (a) It will not enter into any arrangement to participate in the development or implementation of contracts with any contractor that-is debarred or suspended except as authorized by: 1 U.S. DOT regulations, "Nonprocurement Suspension and Debarment," 2 C.F.R. part 1200, 2 U.S. OMB, "Guidelines to Agencies on Government-wide Debarment and Suspension (Nonprocurement)," 2 C.F.R. part 180, including any amendments thereto, and 3 Executive Orders Nos. 12549 and 12689, "Debarment and Suspension," 31 U.S.C. § 6101 note, (b) It will review the U.S. GSA "System for Award Management," https://www.sam.gov, if required by U.S. DOT regulations, 2 C.F.R. part 1200. The contractor also will comply with federal debarment and suspension requirements when hiring subcontractors, and will review the "System for Award Management" at https://www.sam.gov, if necessary, to comply with U.S. DOT regulations, 2 C.F.R. part 1200, and (2). Buy America -The contractor shall comply with 49 USC 53230) and 49 CFR 661, stating that federal funds may not be obligated unless steel, iron, and manufactured products used in PTA- funded projects are produced in the United States, unless a waiver has been granted by FT A or the product is subject to a general waiver. General waivers are listed in 49 CFR 661.7, and include software, microcomputer equipment and small purchases (currently less than $150,000) made with capital, operating, or planning funds. Separate requirements for rolling stock are stated at 5323G)(2)(C) and 49 CFR 661.11. Rolling stock must be manufactured in the US and have a minimum 60% domestic content for FY20 16 and FY20 17, a minimum 65% domestic content for FY20 18 and FY20 19 and a minimum 70% domestic content for FY2020 and beyond. A bidder or offeror shall submit appropriate Buy America certification to the City with all bids on FTA-funded contracts, except those subject to a general waiver. Proposals not accompanied by a completed Buy America certification shall be rejected as nonresponsive. This requirement does not apply to lower tier subcontractors. Lobbying-Byrd Anti-Lobbying Amendment, 31 U.S.C. 1352, as amended by the Lobbying Disclosure Act of 1995, P.L. 104-65 [to be codified at 2 U.S.C. § 1601, et seq.]-Contractors who apply or bid for an award of $100,000 or more shall file the certification required by 49 CFR part 20, "New Restrictions on Lobbying." Each tier certifies to the tier above that it will not and has 12 not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier shall also disclose the name of any registrant under the Lobbying Disclosure Act of 1995 who has made lobbying contacts on its behalf with non-federal funds with respect to that federal contract, grant or award covered by 31 U.S.C. 1352. Such disclosures are forwarded from tier to tier up to the City. Clean Air - 1) The contractor shall comply with all applicable standards, orders or regulations pursuant to the Clean Air Act, 42 USC 7401 et seq. The contractor shall report each violation to the City and understands and agrees that the City will, in tum, report each violation as required to FT A and the appropriate EPA Regional Office. 2) The contractor shall include these requirements in each subcontract exceeding $150,000 financed in whole or in part with FT A assistance. Clean Water -The contractor shall comply with all applicable standards, orders or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 USC 1251 et seq. The contractor shall report each violation to the City and understands and agrees that the City shall, in tum, report each violation as required to FT A and the appropriate EPA Regional Office. The contractor shall include these requirements in each subcontract exceeding $150,000 financed in whole or in part with FTA assistance. Energy Conservation -The contractor shall comply with mandatory standards and policies relating to energy efficiency, stated in the state energy conservation plan issued in compliance with the Energy Policy & Conservation Act. Recycled Products -The contractor agrees to comply with all the requirements of Section 6002 of the Resource Conservation and Recovery Act (RCRA), as amended (42 U.S.C. 6962), including but not limited to the regulatory provisions of 40 CFR Part 247, and Executive Order 12873, as they apply to the procurement of the items designated in Subpart B of 40 CFR Part 24 7. Access Requirements for Persons with Disabilities -The contractor shall comply with 49 USC 5301 (d), stating federal policy that the elderly and persons with disabilities have the same rights as other persons to use mass transportation services and facilities and that special efforts shall be made in planning and designing those services and facilities to implement that policy. The contractor shall also comply with all applicable requirements of Sec. 504 of the Rehabilitation Act (1973), as amended, 29 USC 794, which prohibits discrimination on the basis of handicaps, and the Americans with Disabilities Act of 1990 (ADA), as amended, 42 USC 12101 et seq., which requires that accessible facilities and services be made available to persons with disabilities, including any subsequent amendments thereto. Domestic Preference for Procurements As appropriate, and to the extent consistent with law 13 (including 2 C.F.R. §200.322)~ the VENDOR should, to the greatest extent practicable, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States. This includes, but is not limited to iron, aluminum, steel, cement, and other n1anufactured products. Prompt Payment -The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than 30 days from the receipt of each payment the prime contract receives from the City. The prime contractor agrees further to return retainage payments to each subcontractor within 30 days after the subcontractor's work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the City. This clause applies to both DBE and non-DBE subcontracts.