HomeMy Public PortalAboutORD14273 BILL NO. 2007-97
® SPONSORED BY COUNCILMAN Ferguson
ORDINANCE NO. /q. ;), —/ 3
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH EVERS AND
COMPANY CPA'S, LLC, FOR CITY AUDITING SERVICES.
WHEREAS, Evers and Company CPA's, LLC has become the apparent lowest and best
bidder on the City Auditing Services project;
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF
JEFFERSON, MISSOURI, AS FOLLOWS:
Section 1. The bid of Evers and Company CPA's, LLC is declared to be the lowest
and best bid and is hereby accepted.
Section 2.The Mayor and City Clerk are hereby authorized to execute an agreement
with Evers and Company CPA's, LLC for City Auditing 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. yy �
Passed: � � , a Approved: /yUy ?
residing Officer Mayor
I
EST: PPROVED AS TO FORM:
ity Clerk City Counselor
i
CITY OF JEFFERSON
AMENDMENT TO CONTRACT FOR AUDIT SERVICES
WHEREAS,the City of Jefferson,Missouri,a municipal corporation,with offices at 320 East McCarty,
Jefferson City, Missouri, 65101, hereinafter designated"City," entered into a Contract with Evers &
Company, CPA's, with offices at 520 Dix Road, Jefferson City, Missouri, 65101, hereinafter referred
to as "Auditor," on November 7, 2007; and
WHEREAS, the Contract was for technical and professional services related auditing of financial
records of the City; and
WHEREAS, both parties wish to extend the agreement for the second of two additional one-year
renewal periods as stipulated in Paragraph 17 of the agreement dated November 7, 2007.
NOW, THEREFORE, be it agreed by the parties that the agreement is hereby renewed for the first
of the two additional one-year periods to end October 31, 2009.
IN TESTIMONY WHEREOF,-the parties have hereunto set their hands and seals this day of August,2008.
CITY OF JEFFERSON,MISSOURI EVERS & COMPANY, CPA'S
CcQc
May Title:
ATTEST: ATTEST:
ity Clerk = Secretary
I
APP AS FO
City Counselor
UMontract.File-e\Professional Services\evere&co\nme.ndment 2009-09.wpd
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• CITY OF JEFFERSON
CONTRACT FOR A UDIT SER VICES
THIS CONTRACT is made and entered into the 1, day of November,2007,by and between the City
of Jefferson,Missouri,a municipal corporation,hereinafter referred to as"City,"and Evers and Company
CPA's, LLC, hereinafter referred to as "Auditor."
WITNESSETH:
WHEREAS,the City desires to engage the Auditor to render certain technical and professional services
described in Exhibit A; and
WHEREAS, the Auditor 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. Scone of Services.
The City agrees to engage the services of the Auditor to perform the services as described in the Audit
Proposal which is attached hereto as Exhibit A excluding the Fireman's Retirement and incorporated
• herein.
2. Additional Services.
The City may add to Auditor's 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 6 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 Finance Director and shall be accepted and countersigned by the Auditor or its agreed
representatives.
3. Existina 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.
4. Personnel to be Provided.
Auditor represents that the 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
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contract shall be subcontracted except as provided in Exhibit A without the written approval of the
• City.
5. Notice to Proceed.
The services of the Auditor shall commence as directed in the Notice of Proceed and shall be
undertaken and completed in accordance with the schedule contained in Exhibit A.
6. Compensation.
The City agrees to pay the Auditor in accordance with the terms set forth in Exhibit A, which shall
constitute complete compensation for all services to be rendered under this contract. The final
payment will be subject to receipt of a requisition for payment and a statement of services rendered
certifying that the Auditor fully performed all work to be paid for in conformance with the contract.
It is expressly understood that in no event will the total compensation and reimbursement to be paid
to the Auditor under the terms of this contract exceed the sum of Thirty Thousand Dollars
($30,000.00) for the initial contract term, Thirty-Five Thousand Dollars ($35,000.00) for the first
renewal of the contract,and Thirty-Six Thousand Dollars($36,000.00)for the second renewal of the
contract, for all services required unless specifically and mutually agreed to in writing by both the
City and the Auditor. Payment for the services related to the audits of Highway 179 Corporation Debt
Service Fund shall not exceed Two Thousand Five Hundred Dollars($2,500.00)for the initial contract term,
Two Thousand Six Hundred Dollars($2,600.00)for the first renewal of the contract,and Two Thousand Seven
Hundred Dollars($2,700.00)for the second renewal of the contract. 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.
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. Either party may without cause terminate this contract upon thirty(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. Confdentiality.
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.
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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 orpolitical affiliation,against any employee
of Auditor 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
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 nor be covered
by the Workmen's Compensation Program of the City.
13. Nonsolicitation.
The Auditor warrants that he has 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 it has 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.
• 14. Books and Records.
The Auditor and all his 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.
15. Delays.
i
The Auditor shall not be liable for delays resulting from causes beyond the reasonable control of the Auditor;
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.
16. Notices.
All notices required to be in writing may be given by first class mail addressed to the City of Jefferson,320 East
McCarty Street,Jefferson City,Missouri,65101,and Auditor at Evers and Company,CPA's,LLC, 520 Dix
Road,Suite A,Jefferson City,Missouri,65109. The date of delivery of any notice shall be the second full day
after the day of its mailing.
17. Term.
This contract shall be in effect from November 1,2007,through October 31,2008 for the audit of fiscal year
ending October 31,2007. With the consent of both parties,the contract may be extended on an annual basis for
two(2)additional one(1)year periods for the audit of fiscal years ending October 31,2008 and October 31,
2009 at the prices quoted for the respective terms.
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• IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed on the day and year
first written.
CITY OF JEFFERSON EVERS AND COMPANY CPA's,LLC
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Partner
I�
EST: ATTEST:
City ClerV Title:
4/;frJ�ss
APP AS O FORM:
City CAcknsfilor
•
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U:\(;eu F'il a\Pmf mi..I 9e jme\mere&m\eudit mry 2DD-,M.vpd
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C Ty/
OF
E F,
FE R� /ON
Jefferson City, Missouri
FOR THE THREE YEARS ENDED
OCTOBER 31 , 2007, 2008 AND 2009
..
Presented B y:
... .... ::..........
EVERS & COMPANY
Certified Public Accountants, L.L.C.
520 Dix Road
Jefferson City, Missouri 65109
Contact:
Dale A. Siebeneck, CPA
Audit Partner
(573) 635-0227
TABLE OF CONTENTS
PAGE#
EVALUATION OF AUDIT PROPOSALS CRITERIA
PROPOSAL SHEET(Pricing)
SCOPE...........................................................................................I......................... 1
AuditObjectives.................................................................. 2
Management Responsibilities................................................... 2 --3
Audit Procedures—General..................................................... 3 -4
Audit Procedures—Internal Controls.......................................... 4 - 5
Audit Procedures—Compliance................................................ 5
Audit Administration, Fees, and Other........................................ 5 -7
Timing of Events................................................................. 7 - 8
PROFILE OF THE FIRM................................................................ 9- 10
STAFF RESUMES & EXPERIENCE................................................. 11 - 13
GOVERNMENT RELATED CPE HOURS.........,................................ 14
GOVERNMENTAL EXPERIENCE............... ..
ADDITIONAL PROFESSIONAL SERVICES........................................ 17
FIRM QUALITY CONTROL............................................................ 18
PROFESSIONAL ASSOCIATIONS................................................... 19
,_. ..�.
..........
CHECKLIST OF INTORMATION TO BE PREPARED
BY THE CITY OF JEFFERSON...................................................... 20-21
PEERREVIEW REPORT............................................................... 22
LETTEROF COMMENT.............................................................. 23
EVALUATION OF AUDIT PROPOSALS
• CRITERIA
REFER TO
PAGE(S)
1., Prior auditing experience:
A. Does the firm have appropriate, specific references of
current government clients? 15 - 16
B. What is the firm's experience in municipal auditing? 15 - 16
C. Does the firm provide a listing of representative clients in
Missouri? 15 - 16
2. Other services available:
A. Does the firm offer consulting services in areas such as data
processing, financial management systems, fixed assets
updates and GASB pronouncements? 10 & 17
B. Is the firm available for year-round consultAtion? 7
C. What emphasis did the firm give to the"letter of comments"
or"management letter" regarding the City's operations and
procedures'? 4 & 5
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? 11 - 13
B. Does the firm provide its staff with continuing education in the .,.'-,
governmental sector? 14
C. Does the firm comment on continuity of staff to be assigned to
the City on future engagements? 11 & 14
D. What is the size of the firm or office? 9
E. What % of audit team is lower level staff or trainees 14
REFER TO
•
PAGE(S)
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? 16 - 19
B. Did the firm demonstrate a knowledge of and commitment to
generally accepted accounting principles as promulgated by
The AICPA, GFOA, GASB? 14— 16 & 19
r.
C. Does the firm take part in seminars and training programs as
Instructors/participants? 10 & 14
D. Did the firm indicate an appreciation for and knowledge of the
City's needs? 1 — 6 & 10
5. Audit Approach:
1. Is the audit approach specific and tailored to the City? 1 - 6
2. What is the fine's attitude toward assistance from City
employees during the audit? 2 - 5
•
PROPOSAL SHEET
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. 2006 - 2007 $ 30,000
2. 2007 - 2008 $ 35,000
3. 2008 - 2009 $ 36,000
TOTAL BID THREE YEARS $ 1019000
HIGI4WAY 179 CORPORATION
Cost with City Preparation & Printing of
YEA 1t Comprehensive Annual Financial Report
1. 2006 - 2007 $.-_2..,500
2. 2007 - 2008 4.. . $ 2,600
3. 2008 - 2009 $--2,7 0 0
TOTAL BID THREE YEARS $ 7,S00
•
•
FIREMAN'S RETIREMENT
Cost with City Preparation & Printing of
YEAR Comprehensive Annual Financial Report
1. 2006 - 2007 $ 2,440
2. 2007 - 2008 $ 3,000
3. 2008 - 2009
TOTAL BID THREE YEARS $ R 540
Do you represent a disadvantaged business? YES —NO
NAME OF COMPANY F.VF.RS 4 COMPANY, CPA'S, L.L.C.
AGENT AND TITLE DALE SIEBENECK, CPA — AUDIT PARTNER
ADDRESS 920 -DTX RQAD,VSUITE A
JEFFERSON CITY, Mo 65109
SIGNATURE OF BIDDER
Form of Business: _.-Sole Proprietorship ,Partnership _Corporation X Limited Liability Corporation
Evers & Company, CPAs, L.L.C.
Certified Public Accountants and Consultants Elmer L. Evers
• Jerome L. Kauffman
Richard E.Elliott
Dale A. Siebeneck
Keith L.Taylor
Jo L. Moore
September 10, 2007
Steve Schlueter,Director of Finance
City of Jefferson
320 E.McCarty Street
Jefferson City,MO 65101
SCOPE
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, 2007, 2008 and 2009. 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, which collectively comprise the entity's basic financial statements, of the City of
Jefferson as of and for the years ended October 31, 2007, 2008 and 2009. The following
supplementary information accompanying the basic financial statements 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.
Also, the following additional information accompanying the basic financial statements will be
subjected to the auditing procedures applied in our audit of the financial statements upon which
we will provide an opinion in relation to the basic financial statements:
1. Schedule of expenditures of federal awe s.
I
• 520 Dix Road • Jefferson City,Missouri 65109 • 57.,/635-022 SAX.5.73%6'4-3%6.1
'Jiilcge Green:"hopping'_:;nter + 1021 W. Buchanan Street, Ste. 10 • California,Missouri 55018 + 573/796-221 ',72"i yn 3451
4571 Hwy. 54,Suite A • Gsage Sect^,`v ilzscun 55065 • :173/348-4141 YA;C
Mvmher&CI,ftAtjiliatvdOt xv:FWortdmid:
Audit Obiectives
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 additional information referred to in the first paragraph
when considered in relation to the basic financial statements taken as a whole. The objective also
includes reporting on-
* Internal control related to the financial statements and compliance with the provisions of
applicable laws, regulations, contracts, agreements, and grants, noncompliance with which could
have a material effect on the financial statements in accordance with Government Auditing
Standards.
• Internal control related to major programs and an opinion (or disclaimer of opinion) on
compliance with laws, regulations, and the provisions of contracts or grant agreements that could
have a direct and material effect on each major program in accordance with the Single Audit Act
Amendments of 1996 and OMB Circular A-133,Audits of States, Local Governments, and Non-
Profit Organizations.
The reports on internal control and compliance will each include a statement that the report is intended
for the information and use of the audit committee, management, specific legislative or regulatory bodies,
federal awarding agencies, and if applicable, pass-through entities and is not intended to be and should
not be used by anyone other than these specified parties.
Our audit will be conducted in accordance with U.S. generally accepted auditing standards; 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 OMB Circular A-
133, and will include tests of accounting records, a determination of major program(s) in accordance with
Circular A-133, and other procedures we consider necessary to enable us to express such an opinion and
to render the required reports. If our opinion on the basic statements or the Single Audit compliance
opinion is other than unqualified, we will fully 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 to issue a report as a result of this engagement.
Manalzement Responsibilities
Management is responsible for establishing and maintaining internal controls, including monitoring
ongoing activities; for the selection and application of accounting principles; for the fair presentation in
ai ate financi&statements'ifs"!1'rl—�pw2ftpeeliro nancial~position of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fiend information of the City of Jefferson and the respective changes in financial position and,
where applicable, cash flows in conformity with U.S. generally accepted accounting principles; and for
federal award program compliance with applicable laws and regulations and the provisions of contracts
and grant agreements. Management is responsible for the basic financial statements all
accompanying information as well as all representations contained therein. �•W .`.
• II
2
Management is responsible for making all financial records and related information available to us,
including identifying significant vendor relationships in which the vendor has the responsibility for
program compliance and for the accuracy and completeness of that information. Management's
• responsibilities include adjusting the financial statements to correct material misstatements and for
confirming to us in the 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 taken 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, or illegal acts affecting the government
involving (1) management, (2) employees who have significant roles in internal control, and (3) others
where the fraud or illegal acts 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 entity
complies with applicable laws,�regulations, contracts, agreements, and grants. Additionally, as required
by OMB Circular A-133, it is management's responsibility to follow up and take corrective action on
reported auditing findings and to prepare a summary schedule of prior audit findings and a corrective
action plan. The summary schedule of prior audit findings should be available for our review.
Management is responsible for establishment and maintenance of a process for tracking the status of
audit findings and recommendations. Management is also responsible for identifying for us previous
audits or other engagements or 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 or other engagements to studies. You are also
responsible for providing management's views on our current findings, conclusions, and
recommendations, as well as your planned corrective actions, and the timing and format related thereto.
As part of the audit, you will prepare a draft of your financial statements, schedule of expenditures of
federal awards, and related notes. In accordance with Government Auditing Standards, you will be
required to review and approve those financial statements prior to their issuance and have a responsibility
to be in a position in fact and appearance to make an informed judgment on those financial statements.
Further, you are required to designate a qualified management-level individual to be responsible and
accountable for overseeing our services.
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. We will plan and perform the audit to obtain reasonable rather than
absolute 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 entity or to acts by management or employees
acting on behalf of.the...entity. Because the determination of abuse is subjective, Government Auditing
Standards do not expect auditors to provide reasonable assurance of detecting abuse. As required by the
Single Audit Act Amendments of 1996 and OMB Circular A-133, our audit will include tests of
transactions related to major federal award programs for compliance with applicable laws and regulations
and the provisions of contracts and agreements.
•
Because an audit is designed to provide reasonable, but not absolute assurance 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. 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 you of any
material errors and any fraudulent financial reporting or misappropriation of assets that come to our
attention. We will also inform you of any violations of laws or governmental regulations that come to
our attention, unless clearly inconsequential. 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, creditors,
and financial 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
also require certain written representations from you about the financial statements and related matters.
Audit Procedures—Internal Controls
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. 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 OMB Circular A-133, 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 OMB
Circular A-133.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies.
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 professional .standards,
Government Auditing Standards, and OMB Circular A-133.
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f
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.
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of City of Jefferson's compliance with applicable laws and
regulations and provisions of 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.
OMB Circular A-133 requires that we also plan and perform the audit to obtain reasonable assurance
about whether the auditee has complied with applicable laws and regulations and the provisions of
contracts and grant agreements applicable to major programs. Our procedures will consist of tests of
transactions and other applkcable procedures described in the OMB Circular A-133 Compliance
Supplement for the types of compliance requirements that could have a direct and material effect on each
of the City of Jefferson's major programs. The purpose of those procedures will be to express an opinion
on the City of Jefferson's compliance with requirements applicable to each of its major programs in our
report on compliance issued pursuant to OMB Circular A-133.
Audit Administration,Fees, and Other
We may from time to time, and depending on the circumstances, use third-party service providers in
serving your account. We may share confidential information about you with these service providers, but
remain committed to maintaining the confidentiality and security of your information. Accordingly, we
maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal
information. In addition, we will secure confidentiality agreements with all service providers to maintain
• the confidentiality of your information and we will take reasonable precautions to determine that they
have appropriate procedures in place to prevent the unattthorized release of your confidential information
to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be
asked to provide your consent prior to the sharing of your confidential information with the third-party
service provider. Furthermore, we will remain responsible for the work provided by any such third-party
service providers.
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, �appropriations of and sign the Data
Collection Form that summarizes our audit findings. We will provide copies of our reports to the City;
however, it is management's responsibility to submit the reporting package (including financial
statements, schedule of expenditures of federal awards, summary schedule of prior audit findings,
auditors' reports, and a corrective action plan) along with the Data Collection Form to the designated .
federal clearinghouse and, if appropriate, to pass-through entities. The Data Collection Form and the
reporting package must be submitted within the earlier of 30 days after receipt of the auditors' reports or
nine months after the end of the audit period, unless a longer period is agreed to in advance by the
cognizant or oversight agency for audits. At the conclusion of the engagement, we will provide
information to management as to where the reporting packages should be submitted and the number to
submit.
The audit documentation for this engagement is the property of Evers & Company, CPA's, L.L.C. and
constitutes confidential information. However, pursuant to authority given by law or regulation, we may
• be requested to make certain audit documentation available 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, 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 information
contained therein to others, including over governmental agencies.
The audit documentation for this engagement will be retained for a minimum of five years after the
report release 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. -T
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.
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 each month as work progresses and are payable on
presentation. The above 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.
6
i
u
t 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.
Audit Hourly Approximate
Professional Rate Hours Total
Dale Siebeneck a $140 31 $ 4,340
Jo Moore 140 77 10,780
Wendy Renner 95 80 7,600
Chastity Menz 95 46 4,370
Bobbie Redmon 95 29 2,755
Linette Sommerer 95 53 5,035
Julie McMillian 95 30 2,850
Jessica Bridges 80 30 2,400
40,130
Discount 10130)
Timing of Events
A pre-audit conference will be held with the City's staff and myself, at a mutually convenient
time, after this agreement is signed. We would be available to begin the work as early as
December 2007 or a mutually agreed upon start date. We will deliver all reports listed in the
Request for Proposal no later than April 15, 2008 to the Director of Finance. A post-audit
conference will be held with the Director of Finance to review the financial statements,
compliance reports and a draft of the report of comments and recommendations no later than
April 1, 2008. We will present copies of the reports and a general explanation to the Mayor and
City Council in April.
Government Auditing Standards require that we provide you with a copy of our most recent
external peer review report and any letter of comment, and any subsequent peer review reports
and letters of cone, eALrecebved during the period.9f the contract. Our 2005 peer review report
accompanies this letter.
•
7
•
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,
j EVERS & COMPANY, CPA's, L.L.C.
LSJi ,.
DAI-E A. SIEBENECK, CPA
Audit Partner
RESPONSE:
This letter correctly sets forth the understanding of the City of Jefferson.
By:
Title: Date:
..,,.,. ,w.............. .............
_ ....... .
•
s
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:
Partners 5
Professional Staff 8
IS Support 1
Para-Professional Staff 5
Office Support Staff 4
All professional personnel are periodically evaluated for technical competence and are tested as to
potential leadership qualities and aptitude. Training is accomplished through outside profess alr
development programs and internal training programs. On the job training is enhanced by t aPi'�'cnv-e
participation of partners in the planning, review and "problem-solving" phases of our work. The
opmad.retention of top-flight staff personnel is made easier by the knowledge that our staff
.._;.,..,,...... ..........:, ''with will be working on a direct interrelationship basis with our partners.
•
9
PROFILE OF THE FIRM
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.
Dale Siebeneck, Audit Partner, served as the Interim Finance Director for the City of
Jefferson in 1995.
•
i 1)
STAFF RESUMES & EXPERIENCE
Once an audit team is assigned, we do not rotate staff. We plan on usin g the same team of
auditors from year to year.
I
DALE A. SIEBENECK, CPA, CGFM - Audit Partner
Dale A. Siebeneck is an audit partner in the Jefferson City office of Evers and Company. Dale
joined the firm in 1977 and has a total of twenty-nine years public accounting experience. He holds
a Bachelor of Science degree with a major in accounting from Lincoln University. Dale is a
member of the Missouri Society of Certified Public Accountants, the American Institute of
Certified Public Accountants, the Missouri Society of Association Executives, the Missouri
Municipal League, Downtown Rotary Club of Jefferson City and has been designated a Certified
Government Financial Manager. He se"rved as the Interim Finance Director for the City of
Jefferson and has served the community on numerous boards and various positions. In addition, he
has also participated in numerous training courses, speaking engagements and has written articles
published by various industry trade associations.
Dale specializes in the audits of construction companies and their special tax treatment,
governmental accounting and auditing, not-for-profit audits and their related tax reporting and
management advisory services. Other areas of industry concentration are as follows: Audit of
credit unions, automobile dealers, medical, oil jobbers, corporate tax and business evaluations,
commercial rental enterprises and construction material suppliers.
iSimilar Experience: City of Jefferson, Camden County Commission, City of Waynesville, City of
Osage Beach, City of New Bloomfield
JO L. MOORS, CPA - Audit Partner
Jo Moore is an audit partner in the Jefferson City office of Evers and Company. She joined the
firm in 1991 and has sixteen years public accounting experience. She holds a Bachelor of Science
degree from Park College in Parkville, Missouri. 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,Ro�otary since 1993, serving on the Board fro 1995 to 2003, served as Pre 'ds&nt for
the 2001-20 ear and serving as 7�istrict 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. Jo also has extensive knowledge in insurance and claims processing.
fnvnediately prior to joining the firm, she was employed as Claims Manager for a Third Party
Administrator handling insurance programs for several self-insured groups.
Similar Experience: City of Jefferson, Camden County Commission, City of Odessa, City of
Waynesville, City of Osage Beach, City of New Bloomfield, City of Grain Valley
•
11
STAFF RESUMES & EXPERIENCE
(Copt'd.)
•
WENDY A RENNER, CPA - Manager
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 twelve years combined experience in
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, state and local governments
and school districts. Wendy also prepares corporate, partnership, not-for-profit and fiduciary tax
returns.
Wendy is a member of the American Institute of Certified Public Accountants, the Missouri Society
of Certified Public Accountants and the American Society of Women Accountants.
Similar Experience: Camden County Commission, City of Grain Valley, City of Eldon, City of
Odessa, City of New Bloomfield, City of Rolla
BOBBIE REDMON, CPA— Supervisor
Bobbie is a certified public accountant 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 governments and preparation of corporate and not-for-profit tax returns.
Similar Experience: City of Jefferson, Camden County Commission, City of Waynesville, City of
Osage Beach, City of New Bloomfield, City of Grain Valley
�.,'""un_.° °,may,.,......:..........�.�ypq,�,,,,.w-.,:>...:...... ..
CHASTITY MENZ, CPA— Senior Stx ceotant
Chastity is a certified public accountant in the Jefferson City office of Evers and Company. She has
a Bachelor of Science degree in accountancy from Lincoln University. Chastity joined the firm in
December of 1999 as an intern and was moved to the au ' de artment on a full-time basis in May
of 2002. Her major areas of concentration with the firm are audits o not- o proft roi ganizations
and state and local governments and preparation of corporate and not-for-profit tax returns.
Chastity is currently working toward completing her Master's in Business Administration degree
with an emphasis in accounting at Lincoln University.
Similar Experience: City of Jefferson, Camden County Commission, City of Odessa, City of
Waynesville, City of New Bloomfield, City of Grain Valley
12
i
I
STAFF RESUMES & EXPERIENCE
(Cont'd.)
•
LINETTE SOMMERER, CPA— Staff Accountant
Linette Sommerer is a staff accountant in the Jefferson City office of Evers and Company CPA's.
She joined the firm in August 2006. She has Bachelor of Science & Masters of Science degrees
in accounting. She obtained her CPA license in September 2005, was a staff auditor for 1 '/z
years at central bank�and then moved to system administrator for bank secrecy unit.
Similar Experience: City of Waynesville, City of New Bloomfield, City of Grain Valley
JULIE A. McMILLIAN, CPA-.,,Staff Accountant
Julie A. McMillian is a certified public accountant in the Jefferson City office of Evers and
Company CPA's. She joined the firm in May of 1998 and has over eleven years of public
accounting experience. She holds a Bachelor of Science degree in Accounting from Truman State
University, Kirksville, Missouri. Her responsibilities include monthly client write-up, preparation
of payroll for various clients, and preparation of corporate, partnership, and not-for-profit tax
returns. Julie also assists in the areas of individual tax work as well as auditing and software
consultation.
Julie is a member of the American Institute of Certified Public Accountants.
• Similar Experience: Provides accounting, consulting, & auditing for City of Holts Summit, City of
New Bloomfield,Public Water Service Districts: 2,3, and 4
GAYLE HAYDEN — Staff Accountant
Gayle Hayden is a staff accountant in the Osage Beach office of Evers and Company CPA's. She
joined the firm in January, 2006. She holds a Bachelor of Science in Business Administration
with an emphasis in Accounting from Columbia College. She was a comptroller with a franchise
automobile dealer for 14 years.
Similar Experience: Camden County Commission
TAMMY MEISENHEIMER - Staff Accountant
Tamrny'Njeisenheimer is a staff accountant in the California office of Evers and Company, CPA's.
She joined the frm m October, 1986. She holds a Bachelor of Science degree in accounting from
the University of Missouri, Columbia. Her experience includes audits of governmental entities,
not-for-profit and for-profit entities; financial accounting and reporting; bookkeeping; preparing
payroll and payroll tax reports; and preparation of various individual and business tax returns.
Similar Experience: Camden County Commission, City of Rolla, City of Odessa, City of California
•
13
1
GOVERNMENTAL RELATED CPE HOURS
This is an up-to-date listing of the number of hours for each staff member over the last three years
towards their Governmental Relating Continuing Education:
Government
Partner/Professional Related Hours
Dale Siebeneck 139
Jo Moore 149
Wendy Renner 172
Chastity Nichols 63
Bobbie Redmon 154
Linette Sommerer 44
Jessica Bridges 23
Julie McMillian 76
None of the staff on the job will be trainee's and all staff on the job will be classified as
professional staff.
14
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 Steve Schlueter
(573) 634-6303 Director of Finance
Dates of Services: 1998 to current
Services Performed: Audit and Consulting
* Camden County Commission Carolyn Lorraine
(573) 346-4440 Presiding Commissioner
Dates of Services: 1998 to current
Services Performed: Audit and Accounting
City of Odessa Wade Sanders
(816) 520-5577 Administrator
Dates of Services: 1990 to current
• Services Performed: Audit
City of Waynesville Bruce Harrill
(573) 774-6171 Administrator
Dates of Services: 1980 to current
Services Performed: Audit and Consulting
_ .
* City of Osage Beach Kam Badoloto
(573) 302-2000 Director of Finance
Dates of Services: 2000 to current
.. """wServices Performed: Audit
City of Eldon Debbie Guthrie
(573) 392-2291 Assistant City Administrator
Dates of Services: 1997 to current
Services Performed: Audit
•
15
GOVERNMENTAL EXPERIENCE
CLIENT NAME CONTACT
City of Holts Summit Cheryl Fletcher
(573) 896-5600 City Clerk
Dates of Services: 1998 to current
Services Performed: Accounting
City of New Bloomfield Terry Shaw
(573) 491-3614 Mayor
Dates of Services: 2001 to current
Services Performed: Audit
City of Grain Valley Jill Shato
(816) 229-6275 Finance Director
Dates of Services: 1999 to current
Services Performed: Audit
* Have received the GFOA's Certificate of Achievement for Excellence in Financial
Reporting.
•
16
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)
• Financial Advisory Services (investments asset management)
• 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)
•
17
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. We submit to a quarterly governmental update video
service and our staff attends governmental updates presented by the Missouri Society of Certified
Public Accountants and the American Institute of Certified Public Accountants. In addition, a
member of our staff teaches Governmental Accounting at William Woods College.
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
• review is conducted by a committee of outside accpuntants, organized by the Accountants Global
Network International.
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 and the AGN. It is
a require atombea-der of the Private C
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
edication to the highest standards of quality control, combine to provide your City with the
professional advice that they need, to insure that they follow the regulations set up specifically for
their organizational type.
A copy of our most recent peer review is attached to the back of this proposal.
•
18
f
PROFESSIONAL ASSOCIATIONS
The members of our firm have been active with the Missouri Society of Certified Public
Accountants. Elmer Evers has served on the Society Board of directors for a three-year term, and
has served on the Central Chapter of Missouri Society of CPA's Board of Directors for five years,
serving as an officer each year. As a result of his outspoken insistence that the profession uphold
high professional standards, he was appointed to the Missouri State Board of Accountancy by
Governor Kit Bond. Mr. Evers has served as the President of that Board.
Elmer Evers, Dale Siebeneck, and Jo Moore are members of the Association of Government
Accountants. Mr. Evers is a Certified Fraud Examiner, certified by the National Association of
Certified Fraud Examiners.
The firm is a member of the Missouri Municipal League and 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 firm is a member of the AICPA Private Company Practice Section.
We are also a member of the Accountants Global Network International which handles our firm's
peer-review program.
19
__:............. w._.
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, 2007, 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 famish 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, term, 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 fluid, department and
grant.
ciation for the enterprise funds.
Prepare an analysis of all transactions affecting marketable securities during the period.
Have available the monthly reports showingthe payments to the LAGERS pension plan.
Have a copy of any union contracts available to us.
Prepare a schedule of interest income as follows:
tions
Missouri Statement municipal o6 iga
_ 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.
•
20
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
M ous payroll lIMP(Slv8irig 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.
•
21
Accountants Global Network '
"Sharing Specialized Knowledge and Support"
November 15,2005
To the Partners of
Evers and Company,CPA's,L.L.C.
And the Center for Public Company Audit Firms Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of Evers and
Company, CPA's, L.L.C. (the firm)applicable to non-SEC issuers in effect for the year ended August 31,
2005. The firm has informed us that it did not audit SEC-issuers for the year ended August 31, 2005. A
system of quality control encompasses the firm's organizational structure and the policies adopted and
procedures established to provide it with reasonable assurance of complying with professional standards.
The elements of quality control are described in the Statements on Quality Control Standards issued by
the American Institute of Certified Public Accountants (the AICPA). The design of the system, and
compliance with it, are the responsibilities of the firm. Our responsibility is to express an opinion on the
design of the system, and the firm's compliance with that system based on our review.
Our review was conducted in accordance with standards established by the Peer Review Committee of the
Center for Public Company Audit Firms and included procedures to plan and perform the review that are
summarized in the attached description of the peer review process. Our review would not necessarily
disclose all weaknesses in the system of quality control or all instances of lack of compliance with it since
it was based on selective tests. Because there are inherent limitations in the effectiveness of any system of
quality control, departures from the system may occur and not be detected. Also, projection of any
evaluation of a system of quality control to future periods is subject to the risk that the system of quality
control may become inadequate because of changes in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.
In our opinion, the system of quality control for the accounting and auditing practice applicable to the
non-SEC issuers of Evers and Company, CPA's,L.L.C. in effect for the year ended August 31, 2005,has
been designed to meet the requirements of the quality control standards for an accounting and auditing
practice established by the AICPA, and was complied with during the year then ended to provide the firm
with reasonable assurance of complying with applicable professional standards.
As is customary in a peer review, we have issued a letter under this date that sets forth comments relating
to certain policies and procedures or compliance with them. The matters described in the letter were not
considered to be of sufficient significance to affect the opinion expressed in this report.
J nis C.Nesterak
am Captain
• NORTH AMERICA
2851 South Parker Road,Suite 850-Aurora,CO 80014
Phone:(303)743-7880-Fax:(303)743-7660
http://www.agn.org
24 2
• t
Accountants Global Network
"Sharing Specialized Knowledge and Support"
November l 5,2005
To the Partners of
Evers and Company,CPA's,L.L.C.
And the Center for Public Company Audit Finns Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of Evers and
Company, CPA's,L.L.C.(the firm) applicable to non-SEC issuers in effect for the year ended August 31,
2005 and have issued our report thereon dated November 15,2005.The matters described below were not
considered to be of sufficient significance to affect the opinion expressed in that report, which should be
read in conjunction with this letter.
Engagement Performance
Comment — The firm's quality control procedures require that in certain circumstances prior to the
issuance of the financial statements and the auditors' report thereon, a second partner, not otherwise
associated with the engagement, will evaluate the appropriateness of financial statement disclosures and
the auditors' report and provides checklists for documenting such review. Our review disclosed two
instances in which a second partner review of engagements was required by firm policy but had not been
performed. The letters of comments issued in connection with the firm's two previous peer reviews also
noted the failure to comply with the second partner review policy.
Recommendation—The firm should remind appropriate personnel of the second partner review policy and
emphasize the importance of complying with the policy and the completion of the second partner review
checklist to document compliance with firm policy in this area.The firm should monitor compliance with
this policy during its next internal inspection.
Independence,Integrity,and Objectivity
Comment — The firm's quality control policies and procedures require its personnel to adhere to the
independence, integrity and objectivity rules, regulations, interpretations, and rulings of the AICPA. We
noted several instances in which the firm did not comply with the documentation requirements of
Interpretation 101-3 of the AICPA Code of Professional Conduct regarding key aspects of a non-attest
services engagement. Through discussion with firm personnel we were able to assure ourselves that the
firm was in compliance with the requirements (other than documentation)of Interpretation 101-3.
Recommendation — We recommend that the firm revise its work programs to specifically address the
documentation requirements in the planning stages of an engagement.
f esterak N
aptain
NORTH AMERICA
2851 South Parker Road,Suite 850-Aurora,CO 80014
Phone.(303)743-7880-Far.(303)743-7660
http://www.agn.org
23
FINANCE DEPARTMENT_
PURCHASING DIVISION
SUBJECT: Proposal No. 2359 -Audit Services
Finance Department, Opened October 2, 2007
PROPOSALS RECEIVED:
Evers & Company CPA's,LLC,
Jefferson City,MO Year 1 Year 2 Year 3
City of Jefferson $30,000.00 $35,000.00 $36,000.00
Highway 179 Corporation $ 2,500.00 $ 2,600.00 $ 2,700.00
The.RFP was sent to eleven firms, advertised in the News Tribune and posted on the City
web site.
FISCAL NOTE:
Funds have been requested in the 2007-2008 budget in various accounts to pay for these
costs.
PAST PERFORMANCE:
Evers & Company, CPA's, LLC has provided services to the City for a number of years
in the past.
RECOMMENDATION:
Staff recommends award of the contract to Evers & Company, CPA's, LLC of Jefferson
City, Missouri for the audit of the City of Jefferson accounts in the amount of$30,000.00 and for
the Highway 179 Corporation account in the amount of$2,500.00 for year one of the request.
The agreement may be renewed for up to two additional one year periods at the prices submitted
for years two and three if the City chooses to renew.
ATTACHMENTS - SUPPORTING DOCUMENTATION
Signatur k- W"
Purchas g 4ent Finance Director