HomeMy Public PortalAboutORD14122 . BILL NO. 2006-92
SPONSORED BY COUNCILMAN Pope. Harvey. Vogel. Crane, Berry, Oetting
ORDINANCE NO. 14122
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH WILLIAMS-
KEEPERS, LLC FOR AUDITING SERVICES.
WHEREAS, Williams-Keepers, LLC has been selected as the firm best qualified to
provide professional auditing services;
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF
JEFFERSON, MISSOURI, AS FOLLOWS:
Section 1. Williams-Keepers, LLC Is hereby approved as the best qualified firm to
provide professional services and Its proposal is hereby accepted.
Section 2.The Mayor and City Clerk are hereby authorized to execute an agreement
with Williams-Keepers for 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.
Passed: Nov. 6. 2006 Approved:
Presiding Officer Mayor
ATTEST: APPROVED AS TO FORM:
�__2
ll?uA
ity C erk City ounselor
• ' Bill went Into effect 11/20/2006 without Mayor's signature (Charter Sec. 3.11(g))
&d 11122
CITY OF JEFFERSON
CONTRACT FOR AUDIT SERVICES
THIS CONTRACT is made and entered into the d �L G�
ay of 2006, by and
between the City of Jefferson,Missouri,a municipal corporation, hereinafter referred to as"City;'
and Willinms•Keepers 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. Scope of Services.
The City agrees to engage the services ofthe Auditor to perform the services as described in the Audit
• Proposal which is attnelied hereto as ExhibitA excluding the Fireman's Retirement and incorporated
herein.
2. Additional Services.
The City may add to Auditors 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 totnl cost.allowance
as specified in paragraph 6 hereof. The Auditor @)tall undertake such chnnged 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. Existing Data.
All information,data and reports as are existing,available and necessnry 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 tinder the Auditor's direct.
supervision and all personnel engaged in the work shall be fully qualified and shall be authorized
under stnto 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.
1!VLrn 1'i.V'KrrJM•nwrl.YU..M,.M.M+.rnnr Y..w1.N
G. Notice to Proceed.
The services of the Auditor shall commence as directed in the Notice of Proceed and shall be
underinken and completed in accordance with the schedule contained in Exhibit A.
G, Comuensntion.
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 eventwill the total compensation and reimbursement to be paid
to the Auditor under the terms of this contract exceed the stun of Thirty Thousand Dollars
($30,000.00) for the initial contract term, Thirty-Ono Thousand Dollars ($31,000.00) for the first
renewal of the contract,and Thirty-Two Thousand Dollars($32,000.00)for the second renewal of the
contract, for all services required unless specifically and mutually agreed to in writing by hot]) the
City and the Auditor. No change in compensation shall be made unless there is a substantial and significant
di0erence 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 orthis 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 tither 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 Auditorshall not be relieved ofliability
to the City for damages sustained by the City by virtue of any such breach of contract by the Auditor.
8. Assienment.
The Auditorsltall 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. Confidentiality.
Any reports,data or similar information given to or prepared or assembled by line 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 orate City.
10. Nondiscrimination.
The Auditor agrees in the perrarmauce of the contract not to discriminate on the grounds or because of race,
creed,color,national origin or ancestry,sex,religion,handicap,age orpoihical affiliation,against any employee
of Auditororapplicatttforemploymentandshallincludeasimilarprovision in ail subcontracts let or awarded
hereunder.
•
IaLYm rJnH'nNwYLnu.n.IX�,Y.pnV\b�nw,FOMf.M . 2 -
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 critic City.
12. Benefits Not Available.
The Auditor steal I not be entitled to any of the benefits established for tlic 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 fertile 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,orally other consideration,contingent upon or resulting from the
award or making of this Contract. For breach or violation of this warrunty,[lie City shall have tile right toannul
this Contract without liability, or, in its discretion, to deduct from the Contract price or consideration, or
otherwise recover the full amount ofsuch fee,commission,percentage,brokerage fee,gifts,orcontingent 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 rcspcctivc of7 ices at all reasonable times during the Contract and for a period of three(3)years following
completion of the Contract.
• 15. Delays,
The Auditor shall not be liable for delays resulting from causes beyond the reasonable control of the Auditor,
the Audllor 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 Will lams-Kecpers,LLC,3220 West Edgcwood
Drive,Jefferson City,Missouri,65109. The date of delivery of any notice shall be the second full day afterthe
day of its mailing.
17. Terms
This contract shall be in effecl from November 1,2006,through October 31,2007 for the audit of fiscal year
ending October 31,2006. 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 31,2007 and October 31,
2008 at the prices quoted for the respective terns.
- 3 .
IN WITNESS WHEREOF,the parties hereto have caused this Contract to be executed on the day and year
first written.
CITY OF J RSON WILLIAMS-KEEPERS LLC
P@Tdfer
/NtA►BEK Olu/LBi4
A ATTEST:
City Clerk U Title: Naruu l u.bUc,
APP D AS ORM: ` �fC�t R (Yl tneol ut
Cot Lt of COL(L
Comr) 6yuop\.
city c o CCm -11 O(o8d5239
• 4
A
uVf.n..nwNww..cn..n.o�.1.�.n..w.nw.a.wot.N
EXHIBIT A
PROPOSAL
FOR
PROFESSIONAL AUDITING SERVICES
CITY OF
` JEFFERSON,
1 MISSOURI
r� MAY 25, 2006
1
: 1
.I, _
KEEPERS LLC
0""WMMYCAccoWrtwn COMOwn
• � r r � x•14. v
. 1
1.
each year.the City staff will provide draft financial statements sufficiently in advance of those dates in
order to allow us adequate time to review the statements.
Because of our experience with i 1 entities who have prepared a CAFR and received the Government
Finance Officers Association Certificate of Achievement for Excellence In Financial Reporting awards
and our experience with entities who have implemented GASR 34,we will be available to provide you
advice and consultation during the financial reporting process.
MANAGEMENT LETTERS
Any potential internal control reportable conditions or other potentially significant matters we Identify
in the process of conducting our audits will be discussed with the Director of Finance and other
City personnel,as appropriate,to ensure we understand the situation and any mitigating factors.
As a stile,any such matters that we consider to be significant will be included in drafts and final
management letters for the City.
I Any items we feel should be communicated,but are not significant enough to include in the
aforementioned management letters,will be discussed informally with appmprlate personnel during
the course ofour engagement,and may also be communicated in writing.
J In addition,we believe one of the advantages of using a firm with our experience is the opportunity
to provide suggestions and comments related to potential improvements in the City's nperatinns and
procedures,in additinn to comments related to Internal control. We will discus%these additional
J• comments with appropriate personnel during nur engagement.
POST-AUDIT COMMUNICATION
JWe will meet with the Mayor,Director of Finance and other City personnel to discuss our audit
findings and present discussion drafts of our audit reports following completion of our fieldwork,no
J later than March 15. Upon Issuance of the final reports,we will present our reports to the Mayor and
City Council at a public meeting in April.
j AUDIT TEAM
Services to the City during the years covered by this proposal generally will he assigned to a team con-
sisting of an engagement partner,a concurring review and cornet partner,an in•chatge audit senior
and a number of other WK professionals from staff Assistants to audit seniors.
The engagement partner will have primary responsibility for the City's audit.The audit field work
will be planned primarily by the engagement partner and In-charge senior.'Ihe in-charge seninr will
perform the more difficult aspects of the engagement in consultation with the engagement partner,
and will direct and review the daily wnrk performed by the other audit staff on the engagement. 'ilne
engagement partner will have direct involvement in planning,supervision,review,and certain key
audit areas or procedures.
The In-charge senior will review the audit work performed by the staff auditors with particular em•
phasic on the areas of higher risk. The engagement partner will review the entire audit engagement,
paying particular attention to the risk sensitive areas of the audit and the areas in which significant
Judgments have been made by the In-charge senior,
siJMN '�
'the engagement partner and concurring review partner will have direct involvement in reviewing the
CAR to determine that it is presented in accordance with U.S.generally accepted accounting prin-
ciples and the GFORs requirements. Additional staff will be utilized to verify that numbers have been
correctly summarized from the City.;general ledger and financial reporting sofrwue system.
Staff are assigned to an engagement based on their experience. 'The following Is our preliminary esti-
mates of audit hours by staff level for the year ending October 31,2006. Our estimates will be refined
after our planning process.
' Hours
Partnorsdmemben 57
In•chargeauditor 119
I Other professional staff 183
Adminstrative support persnnncl 9
ITotal 368
These hours Include estimated first year hours to document your internal control and accounting
procedures,perform initial audit procedures,and other procedures generally required in the first year
` of an engagement, the total hours are generally lower in subsequent years.
`• PLANNING
` We will schedule audit planning work and any interim fieldwork to he done prior to final fieldwork
with the City's staff. We anticipate starting the audit at a mutually agreed upon date that will enable
I u to meet the delivery dates for draft and final reports as outlined In the City's request for proposal.
Currently,we anticipate perfnrming initial planning procedures in November and December,with
follow-up after we receive the trial halances.We would anticipate fieldwnrk to start In February,which
would allow a to meet the March 15 draft deadline.
We will hold a planning work session by the key members of our engagement team. During the
planning phase of our engagement,we will consult with City officials about the City&uperufuns
1 during the fiscal year in order to plan our audit procedures.
During our planning session we will typically:
•review fire-closing financial statements to familiarize ourselves with the Ciry&year-to-date
financial results in order to plan our audit scopes;
•document and review the City's accounting procedures and internal control;
J •conduct a fraud brainstorming session and interviews with selected Ciry staff,in compliance
with Statement no Auditing Standards 99,Cnmddrrarian afFraad/n a Finanrdal Smrrrnenr
Audir,
•determine efficient and effective audit procedures;
•Identify opportunities for use of ACL data extraction computer software;
•prepare a list ofichedula and documentation to he prepared by the City("PBC"listing),
+• with examples as necessary;
A:V.1 1 n
1 •
j�
• •identify confirmations needed for revenue receipts,receivables and investment securities,and
other cnrrespondcnce in order to help ensure responses are received In a timely manner;
•discuss any specific concerns with respect to the audit with the Director of Finance and,as
JJJ considered necessary,other City officials and staff,so they an be incorporated into our audit
plan;and
•adjust our time estimates and work assignment allocations among staA,as necessary.
RISKASSESSMENT
Our approach to risk asscssmau involves analyzing she results of our previous audits to assess,
1 with respect to the financial statements and major federal programs,past problem areas,areas of
ongoing significance regardless of past problems,and areas with low risk of material misstatement,
and the reasons why areas fall into these categories. In addition,we evaluate the client's current
circumstances,Including personnel,accounting systems,scope of operations,major Initiatives,etc.,to
assess what has changed in order to avoid false reliance on past results.
r We then plan our audit procedures that are critical to our opinion on the financial statements and our
J Single Audit reports to focus more effort on the higher risk areas,and avoid over-auditing low risk
areas, In addition,we plan any additional procedures necessary due to clicnr expectations,special
agreement with our client for additional services,or because of our desire to provide value above and
beyond rendering an opinion on the financial statements.
AUDIT FOCUS
Our knowledge of the Ciry's services and operations gained from prior experience as the Cityi
auditors,other similar local government audits and from review of the City's recent financial
statements Indian to us the primary areas of audit focus in a typical year include:
J •investments;
a capital assets;
•long-term debt;
•sales and property taxes;
•compliance with purchasing and expenditures policies and cuntrois;
•compliance auditing of major Federal programs;
•any special tramaetion or situations with financial management or reporting signifieauec;
•implementation ofpronouneements orthe Governmental Accounting Standards Board
(GASB);and
•reporting In the financial statements in accordance with U.S.generally accepted accounting
ail principles and GASB and the additional requirements of the GFOA for in Certificate of
Achievement for Excellence In Financial Reporting program.
Our firm and a number of the members of the engagement ream assigned to the City audit have
substantial experience In performing Single Audits undercurrent OMB Circular A-133 standards.
USE OF TECHNOLOGY
All of our auditors use laptop computers In the field to perform audits.We currently use a software
product called Engagement Manager to eliminate much of the paper documentation front our files
and to promote efficient preparation of schedules and mmiom and to link data. Doeuneots you
provide us In electronic format its well as those we prepare using Excel spreadsheets,word processing
and other specialized software products are Incorporated into our audit files and organized using
Engagement Manager.
k We also plan to explore opportunities for using ACL for Windows,a computer assisted audit
technique(CMT)program,to a limited extent initially and more extensively in subsequent years.
ACn main function is for data mining and sorting and testing Information from your financial
systems software and possibly other databases for analytical,control and compliance audit purposes.
WORKING WiTH CITY PERSONNEL
Our clients have frequently commented about the case ant working with us.We will schedule work
around your needs and remain sensitive to the timing that works best for your staff,while maintaining
an organized and disciplined audit process. We will attempt to minimize interruptions to your staff.
During the audit,we will lank for opportunities to share our knowledge with your staff to help them
Improve their productivity.
'ihe most efficient and cost-effective audit results from our clienti staff assisting during the audit by
providing and locating documentary evidence of balances to he reported In the financial statements,
providing schedules of certalu accounts or transactions,and being available during fieldwork to discuss
J operations and respond to questions.
the City will provide final trial balances around January 15 of each year.'Ihest trial balances will
have all adjustmcnts needed prior to transmittal.Any audit adjustments to the books and records we
may feel are warranted will he discussed with and fully explained to the CiO Director of Finance.
Recommendations to change accounting procedures or the way in which transactions arc recorded will
he discancd with the Director of Finance during the course of uur audit.
1
j
i
J
ENGAGEMENT TEAM rn
Z
PERSONNEL
jEach member of our engagement team has been selected based on the needs of the City's engagement,
both as to technical requirements and time period during which the engagement would be performed.
Our engagement team members,and ach members specific rule and main reason for selection for the
City's audit are as folluws:
Heidi A.Chick,CPA,engagement partner. Heidi will have prhnary responsibility Ibr the City's
audit.She will have overall supervisory rnpunsibiliry fin staff who will perlimn auditing pmcedures.
Particularly ftnr the first yeari engagcnurnt,she will asslst with any difficult technical Issues or prose.
dures. Heidi will be responsible for all areas requiring special,extensive knowledge and experience In
local government operations and accounting. She is one of WKi must experienced professionals lu
local government accounting and auditing.
Michael J.Oldelehr,CPA,concurring review and contact partner.Mike will have responsibility for rn
seeing that all services provided to the City are in accordance with ptufcssiunal standards,He will also
�1 provide technical and consulting assistance during the engagement and a final concurring review of
the financial statements..'
Butte Heidi and Mike have been selected became of their considerable experience In providing ac-
counting and auditing services to various types of iucal governments.
i Kelly M.Schwartze,In-charge senior. Kelly will provide day-to-day supervision of the audit staff and rn
J will also perform auditing procedures in the more difficult areas. Kelly has served as an audit senior
and staff auditor on previous local govermmcnt audits.
Additional rain members will be selected based on the needs of the City engagement,both as to tech•
nieal requirements and time period during which the engagement would be perfurmcd.
CONTINUITY PLAN
Our plan Is to have a transition of personnel assigned to future engagements that Is conducive in
an effective and efficient engagement and that Is not burdensome to the Ciry's staff who are directly
J Involved with the audimrs on-site. We have histurically had low turnover of nor professinnal staff In
comparison with nainnal accounting firms.
in the event of turnover that would affect our continuity plan,we would ensure those assigned have
the combination of auditing,accounting and tax experience and education appropriate to the needs rn
of thh engagement. in additinn,the engagement partner and/or the concurring review and consult-
Ing partner wtndd assume additional responsibilities,as neceixary,to cnmpemate for any unexpected
r turnover that potentially dkrul ns our continuity plan. D
While continuity and a smooth transition are generally considered to be an nbjecdvc,we art always
willing to disntss staffing changes requested by our clients.
r
w
We generally do not change the engagement partner assignment except as requested by our clients.
Otherwite,changes in the engagement partner might occur only if a person in a manager role an an
engagement becomes a partner in the Firm.
Biographies of Individuals we plan to consider assigning to the engagement arc Included in the follow-
Ingpages.
r
y
S`
1.
1
J
.$IifW`i� in
HEiDi A. CHICK, CPA
ENAGEMENT PARTNER
t Heidi's specialty areas with WK include governmental entities,construction,not-for•profits,employee
benefit plans,and business advisory services.Prior to joining WK In October 2001,she began her
career with Grant nomton In Wichita,Kansas,and then was the accounting and auditing partner for
a multi-office CPA firm In Nebraska.Heidi has been in the public accounting profession for 2n years
and worked with a variety of industries. Her previous audit experience includes the audits of counties,
municipalities,schnnl districts,special purpose and other types of governmental entities. She also has
had extensive experience in the Single Audit area. Heidi is the engagement partner In charge of WK's
30 private company retirement plan audits,along with several gnvcrnmcntal retirement plans.
As a partner with WK,Heidi oversees all engagements,quality control and technical resources for
i WK's audit assnciates.She also Identifies opportunities for assneiates'continued professional education
and has previously performed peer reviews, Effective January 1,2005,Heidi became W K's partner
in-charge of audit and accounting services.
( Heidi is a member of the firms Not•for•Prnfit team(which also encompasses the governmental sector),
Higher Education team,Construction Contraetnrz team,and Employee Benefit Plans team.
Heidi earned a Bachelor of Arts degree in French with a minor in business administration from
Western Illinnis University.She earned a Master of Bmineu Adminiuratlnn with an emphatic In
accounting at Fort Hays State University In Kansas and was a Kansas Gold Key recipient for the CPA
examination.
�• Heidi is a member of the American Institute of Certified Public Accountants and the Missouri
Society of Certified Public Accountant%.She Is also a member of the Government Finance Officers
jAssociation,Gnvcrnmrnt Finance Officers Association of Missouri,National Ascnciadnn of Women
Y in Construction,Wnmenk Network and the New Members Committee of the Columbia Chamber
of Commerce and is a graduate of the Columbia Chamber of Commerce 2004 Leadership Cnlumhia
program. She is also treasurer for the Boys and Girls Club of C,niumbla,
Y Heidi's continuing professional education during the past three yarn that Is relevant to this audit
include%the follnwing:
yHeidi's continuing prnfe0nna(education during the past titter years that Is relevant to this audit
includes the following.
•National Conference can Employee Benefit Plans(AICPA—2003,2004, 2005)
•GASB 341mplemcnntion(MSCPA)
•Governmental Accounting Conference(MSCPA—2003,2005)
•AKA Regional Roundtable(PKF—2003,2004,2005)
•Accounting for Financial Assets and Derivative Instruments(AIC:I'A)
•AC:I.Tnlning(WK)
•AKA Training(WK)
f •Governmental Accounting,ethics(MSCPA)
•Single Audit(WK)
1•
MICHAEL J. OLDELEHR, CPA
CONCURRING REVIEW AND CONTACT PARTNER
Mikes major area of emphasis is to meet the accounting,auditing,and business consulting needs
of the firms clients in the following industries:governmental,not-for-profit,construction and
manufacturing, and insurance.His responsibilities Include serving as engagement member as well
as team leader of the firms Construction/Manufacturing Team and Insurance Team,Mike is also a
member of the Nnt-For-Prnfit Team. He Asn serves on WK's Management Committee.Mike joined
the firm In 1976.
Mike also serves as engagement partner for the audits of the Public School Retirement System/Public
Edueatinn Employee Retirement System (PSR.S),Missouri Local Government Employcee Retirement
System (LAGERS)and Missouri Public Entity Risk Management Fund(MOPERM),as well as other
i governmental entities.
Mike earned a bachelor of science degree In accounting from Lincoln University in Jefferson
City,graduating summa cum laude.He serves as Treasurer of the Jefferson City Area Chamber of
Commerce and prnvides service as Treasurer of the Board of Directors of Hospice of Jefferson City&
Mid-Missouri,Inc.He is abn past president of the Jefferson City Host Lions Club.
Mike Ix a member of the American Institute of Certified Public Accountants and the Mlstnuri Society
i of Certified PublicAcmuntants.
• MikA continuing professional education during the put three years that is relevant to this audit
Includes the following.
•Yellow Houk Update(Institute of Internal Auditurs)
i •Governmental Accounting Conferences(MSCPA)
t •A&A'liaining(WK)
•AICPA!S Annual Accounting&Auditing(MS(;PA)
•Governmental &Nonprofit Annual Update(MSCPA)
1 •AC LTraining(WK)
•Governmental Accounting,ethics(MSCIIA)
•Actuarial Concepts(Hooke Seminars)
KELLY M. SCHWARTZE, IN-CHARGE AUDIT SENIOR
i Kelly's specialty areas include governmental,single audits,noto-for-profio construction and Insurance.
She works on all of the firms municipal government clients.
She has extensive experience with audits of governmental entities,Includingwork at the senior and
t staff level.
Kelly joined WK in December 2003 after graduating summa tuns laude from Central Missouri State
j University with a BSBA in accounting.
She Is a member of the Govctr rent Finance Officers Association and has recently completed CPE
training with the organization.
1•
jt,.,s\t
j ail. 1l t .i
Kelly's continuing professional education during the past three years that is rchwant to this audit
includes the following.
.' a Accounting&Auditing for State& Local Governments(Government Finance Officers
Association)
1 •SAS 70 Reports&Employee Benefit Plans(AICPA)
•1n•Charge Training(WK)
•ABCA Seminar•Yellmv Book (WK)
•Applying A•133 to nonprofit&governmental organizations(MSCPA)
•ACL Training(WK)
,. •Governmental accounting(AICPA)
J
.J;
l .
�J
J
1
1
1
I ..
WILLIAMS-KEEPERS LLC
I Williams-Kecpers LI.0(WK)is a certified public accounting firm formed approximately 80 years
ago in Columbia. Currently,we have offices in Jefferson City and Columbia.However,our firm does
not operate as two separate offices. Instead,our teams are comprised of staff from both of our offices,
ensuring the most appropriate mix of expertise is assembled for each engagement.
WK is further organized into service teams. Each team is designed to provide specialised services O
either for a functional area or an industry type. Train members are dedicated to their chosen spc- /
` cialty area and committed to perform with their team through frequent communication and training.
JCollaborating our efforts and skills within our trams ensures you will he served with the efficlency,
expertise and resources you need. rn
The following Is our current staffing by department and professlonal levels. T/
Tax
I Audit 22
I. Administration 32 rn
Financial Services
Total 100
Professional Leve6
I Partners 15
Managers I1
Supervisors 8
I Seniors 14
Staff 32
Seasonal y()
ITool 100
i
l
I �
BENEFITS WE PROVIDE OVER LARGE NATIONAL
AND LARGE REGIONAL FIRMS
WK Is an attractive alternative to large national and large regional accounting firms. We are able to
provide comparable quality and many of the services typically associated with large national and large
regional firms while still offering the benefits of a local firm. We believe we offer many significant
advantages to you compared with such firms including the following:
Excellent services for a lower cost. We provide variety atnd quality of services typi.
Bally associated with the large national and large regional firms;however,our stern.
dard hourly rata average approximately mm-half to two-thirds of a large national
or large regional firm partner ur staf member with comparable experience and our
travel costs are significantly lower.
Partner involvement. The engagement partner assigned to our audits typically
spends significantly more time In providing audit services than a national CPA firm
partner. 'ibis means that the avenge years of experience of the team weighted for
the time involved may significantly exceed that for an audit by these firms,
Additional services rarely provided by large national and large regional firms. The
fee structure of most large national firms and large regional firms can be a barrier to
providing general accounting assistance,informal consultation,and compliance as-
sistance at a reasonable cost. WK,however,provides a wide range of these services.
• BENEFITS WE PROVIDE OVER LOCAL FIRMS
WK is a unique alternative to local accounting firms in the Mid-Missouri arc&. We believe our signifi-
cant advantages over local firms include:
Multiple and varied services at every level. We offer the greater variety of services
that organizations like the City typically require in todays marketplace.This broad
base of services typically would allow you to utilize one firm for all of your proles.
.l sional accounting,attestation,tax and other related services,even as your needs
change.
Relevant expertise, We are ahle to assign professionals to your engagement who
have expertise relevant to the City. Through tpceiaiirxd continuing education and
specific experience in working with governmental entities,members of our team
stay ahream of the latest Issues facing you.
I PKF North American Network and PKF International affiliation. our PKF
North American Network and PKF International memberships provide us with a
national and world-wide pool of resources typically available only to a large national
accounting firm.'Ibis affiliation has proven very henefieid In accessing speeialixetl
skills and knowledge that we might nor have within our firm.
Quality eontro6 We ensure ongning quality by voluntarily subjecting our audit
and accounting practice to a regular review In connection with our memberships
In the AICI'A,and the AiCPNs Governmental Audit Quality Center,Employee
Benefit Plan Audit Quality Center,Center for Public Company Audit Firms and
Private Companies Practice Section,
I•
IQUALITY CONTROL AND RESOURCES
I WK has a written quality control document in place which describes our quality control with respect
to Independence,Integrity and objectivity;personnel management;acceptance and continuance ofcll-
ents;engagement performance;and monitoring for compliance with our quality control system. WK
is a member of the three current A1CPA divisions that arc designed to help ensure high quality audit
services—the Center for Public Company Audit Firms, the Governmental Audit Quality Center,and
the Employee Benefit Plan Audit Quality Center, WK undergoes a peer review by outside CPAs every
three years of our audit and accounting practice.Our peer review report for the year ended June 30,
2002 Is Included in the Appendix.Our peer review report for the year ended June 30, 2005 Is being
reviewed by the Center for Public Company Audit Firms and will be available for distribution upon
their approval.
M"MZ Because we recognize the complex name ofthe prae-
/K/North American Network rice of public accounting,we augmented our internal
MM�AwnMpnr1wrrwraM,w capabilities by becoming a member of PKF Nonh
American Network(PKF NAN). This affiliation has
I been of significant benefit to us in providing quality service to our clients, PKF NAN is an association
of approximately 90 independently owned public accounting firms that share client service,technical,
educational and marketing resources and expertise.
Through their affiliation with PKF International,PKF NAN members have ties to accountants and
business advisors at more than 160 firms in 117 countries outside of North America. Together,mem-
ber firms are able to serve individual and corporate clients representing a full range of industries and
I• business needs anywhere in the world. We regularly communicate by an e-mail network with PKF
NAN firms for the purpose ofobtaining the benefit of other members'experiences with Issues facing
our clients,and often partner on engagements when industry specific or other technical knowledge
I is needed, PKF NAN supplies assistance to us In the areas of technical standards,continuing profes-
sional development,and practice management. Membership is by Invitation to firms who can clearly
demonstrate their ability to maintain the highest professional standards. Acceptance is dependent
upon majority vote of exl%ting members In the appropriate geographical Incation%.
ICONTINUING EDUCATION
I Partners and members of our firma pmfculonal staff have the hencfit of a planned program of prnfes-
sinnal development and continuing education through conference%and seminars sponsored by PKF
and other national and state professional groups,"in hnu%e"seminars,and disciplined self-study. In
addition,our extensive client base provides ample opportunity fnr our staff to develop their skills in a
Istructured environment of close supervi%inn by experienced and talented profemlonah,
RELATED SERVICES AVAILABLE
WK offer%a full complement of services. We would he available to the City throughout the year for
Such services as well a Informal consultations. We have hriefly outlined some of these services heinw,
In addition,we will repnnd to your qutstinns by telephone throughout the year and feet will not he
charged for brief consultations.
Industry Audit and Accounting Specialists. 'llnc complexity of business and
governmental regulations often require an accounting profeniunalS thorough
I knowledge of an Industry and specific functional area. Because of our industry
teams,our professionals develop specialized knowledge.Including such area as
• governmental entities,employee benefit plans,non-profit organhations,college
1
and universities,municipalities,financial Institutions,construction contractors,
retail and wholesale businesses,medical practices,manufacturing companies and
other Industries. In addition to traditional audits o(finaneial statements,our
audit professionals also offer specialized attest and assurance services tailored to the
needs of an organization.WK can also assist in the implementation of new GASB
pronouncements,
Test Services. WK's tax department is equipped to offer assistance in the prepa-
ration of tax returns,dealing with taxing authorities,and performing advanced
tax planning and tax consultation in income,estate,girt,exempt organizations,
franchise,sales and payroll taxes at Irical,state,and federal levels. We maintain
extensive electronic research services and have ready access to professionals outside
nor firm through PKF.
Management and information Technology Services. Many organizations,as
support to their own internal staff,look to WK for management advisory services,
'Ibcbt services Include information teehnulogy consulting;plan implementation
and upgrading of PC plans;accounting systems implementation,training and sup-
port,Internal control rcvimvs;Independent feasibility studies;business and stntegie
planning;board reviews and retreats;litigation support;business valuations;and
employee benefit plan consulting and administration.
Investment Management Services.Through our affiliated company Williams.
Keepers Financial Services LLC and Its affiliation with Raymond James Financial
Services,Inc„we provide Investment planning,consulting and asset management
•. .. services, WK's professionals also utilize the many years of experience of WK Finan•
cial Service investment consultants by attending training sessions conducted by
them as well as accessing their knowledge of investments in serving the accounting,
tax and auditing needs of our clients.
1•
PRIOR EXPERIENCE
OVERVIEW C
I Governmental entities represent a significant segment ofour practice. We have provided audit and
other services to a wide variety of Missouri governmental entitles,including municipalities,cmtn• M
des,public employee retirement systems,public libraries,a public entity risk•pnnl,and many types of
I
single-purpose governmental entities. X
WK has a significant amount of experience in assisting state and local government entities with pre- 1
paring Comprehensive Annual Financial Reports that meet the stringent requirements of the Govern-
' merit Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting
awards program. We have audited I I entities that have received this award during our audit tenure.
Our PKF NAN membcnhip also pruvides us the opportunity to consult with PKF Network audit rn
partners who service on Special Review Committees of the GFOA Certificate ofAehievement Pro-
gram,Several of these individuals include John Dcland and Judy Gauthier of Wulf Ct Company LLP z
in Oak Brook,Illinois and Chris Deweese of Suttle&Stalnaker,PLCC in Charleston,West Virginia.
GOVERNMENTAL AUDIT QUALITY CENTER >
�• WK Is a member of the AICPA Governmental Audit Quality I--
�d��tyh, Center,which was created in 2004. -ihe Center was created
'cI to,among other things.serve as a comprehensive resource on
' governmental audits for member fitms,create a community of
firms that demonstrate a commitment to governmental audit quality,and provide an online forum
tool for members to share hest practices and discuss governmental audit Issues. Membership,which M
' is voluntary,requires a firms commitment in audit quality in the critical area of governmental audits,
Including those performed under GovernmrnrAudhin;Sranderdr and OMB Circular A.133,Audin of X
Sratr.Lora/Governntrna.and Nan-Profit Ordaniraclanr.
` Of 14 member firms headquartered in Missouri,WK is the only member fimt in Central Missouri.
` Additional information about the Center can be accessed at hnp://pgc.aicps.org. T
EMPLOYEE BENEFIT PLAN AUDIT QUALITY CENTER
MEff1<1 Be ftil WK is a member of the Center for Public Company Audit Finns
_ (the Center),a division of the American Institute ofCertificd M
AINlII Center
Public Accountants(AICPA).Membership is voluntary. Ilse
purpose of the Center is to promote CPA excellcnec through an Z
effective peer rcvicw and continuing education program. A peer review by outside CPAs Is required
every three years of each members audit and accounting practice. n
M
SPECIFIC EXPERIENCE
Listed below Is a reprcseniadve group of relevant audits we performed during the put three
years and appropriate officials to contact for a reference.We also audit approximately 30 ptivate
company retirement and welfare benefit plats.Additionally.WK wax recently named as auditors
for the Missouri State Employees Retirement System (MOSERS)and Missouri Department of
Trampurtation and Highway Patrol Employers Retirement System(MPERS)and will begin work on
both engagements later this year.
vein Type of
Frulix C ntn Phene Served Service
City of Fulmm(1)(21 Jatte Huhhard 573-592-3311 First year Audit
Chief Financial Offier (2006) Consulting
city of Mexico(1)(2) Roger Haynes 573.581.2100 More than 20 Audit
Dir,of Admin.Services Consulting
City of Macon(2) Allan Money 660.385.6421 5 Audit
City Administrator Consulting
City of Centralia Lynn Behrns 573.682.2139 hime than 20 Audit
City Adminwratur Comulting
City of Kirksville(I)(2) Laura B.Guy 660.627.1251 2 Audi[
. Finance Director
Cole County(1)(2) JAIMT.LePage 573-634.9122 2 Audit
Cole County Auditor
Missouri Local William Schwartz 573.636.9455 1 Audit
Government Employees Fsccutive Director Consulting
Retirement System
(LAGERS)(1)
Missouri State Gary Irwin,CGFM 573.632.6120 F(nt•year Audit
Emloyen Ratimmuu Chief Financial Officer engagement Consulting
System(MOSERS)(1)
Public School Ruiremcnt Steve Yoakum 573.634.5290 5 Audit
System/Public Education Executive Director Consulting
Employees Retirement
System(1)
County Employee$ Mrs Turley 573.623.9203 5 Audit
Retirement Fund Associate Executive Director
Mbwuri Public Entity David Kurmann 573.751.8276 3 Mtdit
Risk Management Fxecu[Ive Director Consulting
Fund
• 41
.r.1iV 1ti 1 c1
Missouri Cunsulidued Stuia Pitcher 573.526 4062 9 Amlit
Health true Plan(1) Manager or fiscal Affairs Comuldng
Missnuai Deveiopment pa nela Hill $73.751.9479 4 Audit
Finance Hoard(1) Asst,Director&Controller Consulting
(1)Receives the GFOA Ccrdfiate of Achimment for Excellence in Financid Reporting. We have previously
performed audits for uvezal other Ieal governmental units that roxived ehc GFOA certificate during our tenure '
u auditors.Including Ronne rounrys the Clty of JeNenron and the Golumhla public School District.
(2)Single Audits have been preformed by us for this cwhy. We have sho perfnrmed many Single Audits for not-
for-profit organizations.Eight to ten Single Audits arc performed for not•for•profic organizations In a typical year.
'?���iX A
Nip
1
PROPOSED FEES
Offeror must complete,sign and return this document with his proposal information. n
CITY
Cost with City
YEAR Financial Statement and Printing
I. 2005-2006 $30,000
Z. 2006-2007 $31,000
3. 2007-2008 $32,000
TOTAL BID THREE YEARS $93,000 (�
FIREMAN'S RETIREMENT
Cost with City
YEAR Financial Statement and Printing
1, 2005-2006 S 3,900
• 2. 2006-2007 $ 3,900
3. 2007.2008 $ 000 rn
TOTALBIDTHREEYEARS $11,700 rn
Do you represent a dindvantaged business? YES— NO X
NAME OF COMPANY Williams•Kccpers LLC
AGENT AND TITLE Michael J,Oldcichr.CPA,Mcmhcr Owner
ADDRESS 3220 W,Edgewood,Suite E
Jefferson City,MO 65109
PHONE (573)635.6196
DATE 1May�25 2006. '/
BIDDER SIGNATURE ' Ire ACC t►�I J�w �
Form nfHudnet+. _Sole Pmpricmnhip_putnenhip_Cnrpnmtlnn �(-UmltedlALWIty Catpnnunn !!�/
Our fees agreement is hued an the following assumption;and representations:
• we will have access to work papers that support the amounts and disclosures in the print
year's financial statements.Such work papers might include those in possession of the prior
years Independent auditor;
• the books and records will be ready for audit by a mutually agreed upon date:
• adjusting entries needed to correct the books and records,if any,will be minimal;
• the books and records and requested supporting schedules will be prepared by the City's staff
and will be ready for audit at prearranged dates,and the City's staff will be available and
provide reasonable assistance during our audit fieldwork;
• the City maintains,and makes available to us,adequate records and supporting
documentation to test financial transactions,assets and liabilities;
• the City will provide draft financial statements(Including managements discussion and
analysis),the Introductory and Statistical sections of the Comprehensive Annual Financial
Report,and the Schedule of Expenditures of Federal Awards.These will be provided in
advance of the March 15 due date to allow us adequate time to review the reports;
• the City will bind all reports;and
• there will be no significant or unusual changes in the Cirys size,federal programs,
accounting and regulatory requirements at services to be performed.Any such changes will
be discussed with the City in advance so that a renegotiated fee,If appropriate,an
be mutually agreed upon.
Ifsignificant additional time is necessary because of problems related to the above assumptions,we
• will discuss It with the Director of Finance before we Incur the additional costs. if additional time
Is required,we would arrive at a mutually agreeable fee arrangement and Issue a change order or
addendum to our contract. Typically,such additional fees would be based on our estimated time
requirements at our standard hourly rates far the personnel utilized(see subsequent information In
this fee section regarding current hnutly rates).
We would be pleased to provide additional professional services the City may require from time to
time which would not Interfere with our role is Independent auditors. We are available throughout
the entire year for questions and consultations. Questions that an be handled with minimal time on
our part generally would not he charged. Fees for services requiring mare than a minimal of time to
respond would be billed at our current standard hourly rates for the personnel used,or for a mutually
agreeable negotiated fee. Our billing rates are typically adjusted once annually at the beginning of a
calendar year, The following are typical ranges of rates for our partners and professional staff for 2006.
Hourly Rata
Partners/Member Owners 5160-210
Managers 130. 160
Supervisors 120- 130
Seniors Ito- 120
Staff level II 90- Ito
Staff Level I (beginning accountants) 85. 90
Adminstrativc Support 45. 70
Invoices for our fees will be rendered as work progresses and are payable upon presctttation.
•
APPENDIX B
• �5milh tali,11 fu ;iru .(,'t(: nq .. 11C
1'iv�dird I'nldi'.1r..unhinl,is r'rroa9dul.
To the Members of
Williams-Keepers LLC
and the SEC Practice Section Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of
Williams-Keepers LLC(the firm) in effect for the year ended June 30, 2002. A system of quality control
encompasses the rim'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 of 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. In addition,the firm has agreed to comply with the membership requirements
of the SEC Practice Section of the AICPA Division for CPA firms (the Section). Our responsibility is to
express an opinion on the design of the system, and the firm's compliance with that system and the
Section's membership requirements based on our review.
Our review was conducted in accordance with standards established by the Peer Review
Committee of the Section 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 or with the
• membership requirements of the Section 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 of
Williams-Keepers LLC in effect for the year ended June 30,2002,has been designed to meet the
requirements of 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 professional standards. Also, in our opinion,the firm complied during that year with
the membership requirements of the Section in all material respects.
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.
Hagerstown,Maryland
December 12,2002
• Attachment to the Peer Review Report of Williams-Keepers LLC
Description of the Peer Review Process
Overview
Member firms of the AICPA SEC Practice Section(the Section)must have their system of
quality control periodically reviewed by independent peers. These reviews are system and compliance
oriented with the objective of evaluating whether;
The reviewed firm's system of quality control for its accounting and auditing practice has
been designed to meet the requirements of the Quality Control Standards established by
the AICPA.
The reviewed firm's quality control policies and procedures were being complied with to
Provide the firm with reasonable assurance of complying with professional standards.
The reviewed firm was complying with the membership requirements of the SECPS in all
material respects.
The Section's Peer Review Committee(PRC)establishes and maintains review standards. At
regular meetings and through report evaluation task forces, the PRC considers each peer review,evaluates
• the reviewer's competence and performance, and examines every report, letter of comments,and
accompanying response from the reviewed firm that states its corrective action plan before the peer
review is finalized. The staff of the Transition Oversight Board, an independent oversight body, plays a
key role in overseeing the performance of peer reviews working closely with the peer review teams and
the PRC.
Once the PRC accepts the peer review reports,letters of comments, and reviewed firms'
responses, they are maintained in a file available to the public. In some situations,the public file also
includes a signed undertaking by the firm agreeing to specific follow-up action requested by the PRC.
That file also includes the frrzn's annual report which contains information regarding the number of firm
offices, firm professionals, and SEC clients for which the firm is principal auditor-of-record.
Planning the Review
To plan the review of Williams-Keepers LLC,we obtained an understanding of(1) the nature
and extent of the frrnN accounting and auditing practice, and(2)the design of the firm's system of quality
control sufficient to assess the inherent and control risks implicit in its practice. Inherent risks were
assessed by obtaining an understanding of the firm's practice,such as the industries of its clients and other
factors of complexity in serving those clients,and the organization of the firm's personnel into practice
units. Control risks were assessed by obtaining an understanding of the design of the firm's system of
quality control, including its audit methodology, and monitoring procedures. Assessing control risk is the
process of evaluating the effectiveness of the reviewed firm's quality control system in preventing the
performance of engagements that do not comply with professional standards.
•
• Performing the Review
Based on our assessment of the combined level of inherent and control risks,we identified
practice units and selected engagements within those units to test for compliance with the firm's quality
control system. The engagements selected for review included audits of clients performed under
Government Auditing Standards and audits of Employee Benefit Plans. The engagements selected for
review represented a cross-section of the firm's accounting and auditing practice with emphasis on higher-
risk engagements. The engagement reviews included examining working paper files and reports and
interviewing engagement personnel.
The scope of the peer review also included examining selected administrative and personnel
files to determine compliance with the firm's policies and procedures for the elements of quality control
pertaining to independence, integrity,and objectivity; personnel management;and acceptance and
continuance of clients and engagements. 1n addition,we tested compliance with the membership
requirements of the Section, including those pertaining to independence quality controls and concurring
partner review.
Prior to concluding the review,we reassessed the adequacy of scope and conducted an exit
conference with the firm management to discuss our findings and recommendations.
• K.UATAVK LLLLVIlWL1/1TILM111WULLLVI[M OIMIpIt0L1001.000
•