HomeMy WebLinkAbout911221.tiff AGREEMENT
Between
WELD COUNTY
and
ANDERSON & WHITNEY, P.C.
PROVIDING FOR AN AUDIT OF
COUNTY RECORDS FOR FISCAL YEARS
1991 And 1992
KNOW ALL MEN BY THESE PRESENTS: That WELD COUNTY, a Body Corporate and
Politic, and a Political Subdivision of the State of Colorado, hereinafter
referred to simply as COUNTY, through its Board of County Commissioners,
which term shall include their successors and assigns,
AND
ANDERSON & WHITNEY, P.C. , Certified Public Accountants doing business
or authorized to do business in the State of Colorado, hereinafter referred
to simply as AUDITOR.
WITNESSETH, that, for and in consideration of the mutual terms and
conditions, promises, covenants and payments hereinafter set forth, COUNTY
and AUDITOR hereby agree as follows:
ARTICLE I
PREAMBLE
In order to establish the background, context and frame of reference for
this Agreement and to manifest the objectives and intentions of the
respective parties herein, the following statements, representations and
explanations shall be accepted as predicates for the undertakings and
commitments included within the provisions which follow and my be relied upon
by the parties essential elements of the mutual considerations upon which
this Agreement is based.
1. 1. Section 14-4 of the Weld County Home Rule Charter and Section 29-
1-603, CRS, require that the COUNTY shall provide annually for an
audit of the accounts and finances of the COUNTY.
1.2. Weld County, pursuant to Board policy and approved guidelines
undertook a selection process in seeking a firm to perform the
required financial audit.
1.2.1 The committee to which a part of this responsibility was
delegated selected a firm deemed to be most qualified and
made its recommendation to the Board of County
Commissioners on August 28, 1991.
ACo067 a � 911221
1.2.2 On August 28, 1991, the Board of County Commissioners,
with the committee's recommendations, established a fee
and contract provisions governing the professional
service to be performed.
1.2.3 On August 28, 1991, the Board of County commissioners
voted to hire the firm of ANDERSON & WHITNEY, P.C. to
audit the COUNTY records.
ARTICLE II
DEFINITIONS
2.1 COUNTY -- Weld County, a body politic and a political subdivision of the
State of Colorado, specifically the Board of County Commissioners.
2.2 AUDITOR -- ANDERSON & WHITNEY P.C. , Certified Public Accountants.
2.3 FINANCIAL AUDIT -- Financial statement audits determine (1) whether the
financial statements of an audited entity present fairly the financial
position, results of operations, and cash flows in accordance with
generally accepted accounting principles, and (2) whether the entity has
complied with laws and regulations for those transactions and events
that may have a material effect on the financial statements.
2.4 AUDITOR'S REPORT ON AUDIT OF FINANCIAL STATEMENTS -- Weld County desires
the auditor to express an opinion on the fair presentation of its
combining and individual fund and account group financial statements and
schedules in conformity with generally accepted accounting principles.
The auditor is not required to audit the combining and individual fund
and account group financial statements and supporting schedules.
However, the auditor is to provide an "in-relation-to" report on the
combining and individual fund financial statements and supporting
schedules based on the auditing procedures applied during the audit of
the general purpose financial statements. The auditor is not required
to audit the statistical section of the report. The auditor is not
required to audit the schedule of federal financial assistance.
However, the auditor is to provide an "in-relation-to" report on that
schedule based on the auditing procedures applied during the audit of
the financial statements.
2.5 FINANCIAL STATEMENTS -- A combined, combining and individual fund
balance sheets operating statements - budget and actual, statements of
cash flows - proprietary fund types and similar trust funds, notes to
financial statements and required supplementary information.
2.6 AUDITOR'S LETTER OF COMMENTS AND RECOMMENDATIONS -- A letter to the
COUNTY containing various comments and recommendations by the AUDITOR
based upon a review of the COUNTY'S system of internal accounting and
operating controls and other findings.
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2.7 AUDITING SERVICES -- The services related to performing an audit as
defined in Article 2.3, including examination and review procedures that
may be requested by the COUNTY as extra work and which involve
exclusively the use of the AUDITOR'S auditing staff.
ARTICLE III
TERM
3.1 This Agreement shall commence on the date that this instrument is fully
executed by both parties. The initial term of this Agreement shall be
for the period of the fiscal year 1991, and renewable at the option of
the COUNTY for five (5) consecutive years.
ARTICLE IV
SCOPE OF AUDIT
4.1 FUNDS AND ACCOUNT GROUPS as maintained by Weld County.
4. 1.1 The AUDITOR shall assist in the preparation of the COUNTY'S
annual financial report and include an opinion in its report
regarding COUNTY'S financial statements and supplemental
financial schedules. The financial statements shall be
prepared in conformance with the primary funds and account
groups as described in the GASB codification. Funds may be
combined to the extent permitted by the GASB codification.
4.1.2 A Single Audit shall be done in accordance with generally
accepted auditing standards, the standards set forth for
financial audits in the U.S. General Accounting Office's (GAO)
Government Auditing Standards (1988) , the provisions of the
federal Single Audit Act of 1984 and U.S. Office of Management
and Budget (OMB) Circular A-128, Audits of State and Local
Governments.
4.2. SPECIAL REPORTS -- Special reports shall be prepared for the following
as required by, and in accordance with, authoritative literature
existing during the period audited.
4.2. 1 Retirement
4.2.2 Treasurer
4.2.3 County Fair
4.2.4 Grand Jury Audit of Treasurer, as required
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Included in the County CAFR are the following:
4.2.5 Road and Bridge Revenue and Expenditures
4.2.6 Public Trustee
The AUDITOR shall furnish an opinion in its report on these financial
statements.
4.3 COMPLETION OF WORK -- AUDITOR shall complete all audit work and provide
the Audit Report to COUNTY within one hundred fifty (150) days after the
last day of each fiscal year.
4.3. 1 COMPLIANCE REPORT: The AUDITOR shall prepare and submit to
the Board of County Commissioners of Weld County a report on
compliance with laws and regulations. The report on
compliance shall include all material instances of
noncompliance. All nonmaterial instances of noncompliance
shall be reported in a separate management letter, which shall
be referred to in the report on compliance.
At the conclusion of the audit field work, the independent
certified public accountant shall discuss with the head of
each county agency and the Board of County Commissioners, all
of the auditor's comments which will be included in the report
for the areas within their responsibility. If the officer is
not available to discuss the auditor's comments, their
discussion is presumed when the comments are delivered in
writing to his office.
The officer's written statement of explanation or rebuttal
concerning the auditor's comments, including corrective action
to be taken, shall be filed with the governing body of the
COUNTY within twenty (20) days of the delivery of the
financial audit report.
4.3.2 The AUDITOR shall communicate in a letter to management any
reportable conditions found during the audit. A reportable
condition shall be defined as a significant deficiency in the
design or operation of the internal control structure, which
could adversely affect the organization's ability to record,
process, summarize, and report financial data consistent with
the assertions of management in the financial statements.
4.3.3 A tentative separate letter of comments and recommendations
shall be delivered to the Director of Finance and
Administration for the COUNTY'S report. The Director of
Finance and Administration of the COUNTY and each separate
officer as noted shall forward to the AUDITOR a written
response to the letter no later than two (2) weeks following
receipt of same. Failure of the Director of Finance and
Administration and each separate officer to so respond within
two (2) weeks shall be deemed acceptance by the COUNTY and
each separate officer of the draft as submitted. The COUNTY
and each of the separate officers as may be required and
AUDITOR may meet and discuss differences of fact contained in
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the letter within this two-week period. No later than two (2)
weeks after receipt of the comments of the COUNTY and
responsible officers as maybe required, AUDITOR shall deliver
to the Board of County Commissioners.
4.3.4 AVAILABILITY OF RECORDS -- COUNTY agrees that certain books
and records may be made available prior to the time when
others may be made available and that certain funds may be
audited and such audit for those funds completed prior to the
time that other funds are so audited and completed. It is
contemplated that those funds audited separately and reported
separately will be completed and the report furnished as soon
as possible. In any event, the completed report shall be
furnished to the COUNTY not later than one hundred fifty (150)
days after the last day of the fiscal year.
4.3..5 EXTENSION OF TIME -- It is recognized by the parties that the
purpose in having the aforesaid one hundred fifty (150) day
requirement for the submission of audit reports is to make
such reports meaningful and to give the County Commissioners
the earliest possible notice concerning any matters raised or
revealed by such audit. It is also recognized by the parties
that issues arising in the audit may require more time than
the one hundred fifty (150) day period.
COUNTY agrees that provision must be made for instances during
the audit where time extensions will be requested in order to
resolve problems that may be revealed in any particular fund
or account. However, it is understood and agreed that in the
event AUDITOR finds that such one hundred fifty (150) day
period is not sufficient for completion of the audit, AUDITOR
shall immediately so notify COUNTY and shall request
additional time for completion of the audit, setting forth
with specificity the facts upon which such request is
predicted and the reasons why additional time will be needed.
Whether a time extension will be granted is solely at the
discretion of COUNTY.
It is recognized by the parties that the AUDITOR will need an
auditing period after receipt of the Working Trial Balance and
supporting schedules. COUNTY agrees to grant AUDITOR an
extension of time, if requested by AUDITOR, equal to the
number of days after March 1st that the Working Trial Balance
and requested schedules are delivered by COUNTY to AUDITOR.
4.4 AUDIT STANDARDS -- Unless higher standards are set forth elsewhere in
this Agreement, each audit shall be done in conformity with audit
standards, excluding the review of economy and efficiency of operations
and program results, set forth in the publications: Government Audit
Standards, Comptroller General of the United States, the American
Institute of Certified Public Accountants (AICPA) , Industry Audit Guide,
Audits for State and Local Governmental Units, AICPA standards and
procedures, Governmental Accounting Standards Board, Codification, the
Single Audit Act of 1984 (Publication No. 98-502) , Office of Management
and Budget (OMB) Circular A-128, and the provisions of OMB's "Compliance
Supplement for Single Audits of Grants to State and Local Governments",
01 .4. '926
Supplement for Single Audits of Grants to State and Local Governments",
and auditors' reports on compliance and internal accounting control
rendered thereon. Requirements of Federal and State agreements and
statutory audit requirements will be conformed with as each may be
applicable.
4.5 COOPERATION WITH STATE AUDITOR AND CONSULTING FIRMS -- Where applicable,
ANDERSON & WHITNEY, P.C. as the COUNTY'S principal auditors shall
coordinate their work and cooperate with the State Auditor of the State
of Colorado, and with any and all consulting firms under contract to
Weld County.
4.6 IRREGULARITIES -- Should irregularities or other unforeseeable
conditions be encountered which might necessitate the extension of the
auditing work beyond the scope of normal auditing procedures, the
AUDITOR agrees to advise the Board of County Commissioners in writing
of the circumstances, and to request an increase in the total fees be
made available before significant additional costs are incurred. Any
request for additional fees shall be in writing and shall contain a
detailed explanation of the unforeseen conditions or irregularities, and
why the additional fees are necessary.
4.7 ILLEGAL ACTS -- The AUDITOR is aware that illegal acts may be discovered
during the audit. However, because of the concept of reasonable
assurance and because the auditor will not perform a detailed
examination of all transactions, there is a risk that material errors,
irregularities or illegal acts, including fraud or defalcations, may
exist and not be detected. The AUDITOR agrees to immediately disclose
the discovery of any and all illegal acts to the Board of County
Commissioners, and if significant additional work is necessitated, to
request that additional fees be made available before significant
additional expenses are incurred. Any request for additional fees shall
be in writing and shall contain a detailed explanation of why that
appropriation is necessary.
4.8 STANDARD OF CARE -- In the performance of the audit, the AUDITOR shall
be bound by and shall make the examination in accordance with generally
accepted auditing standards.
ARTICLE V
EXTRA WORK
5. 1 EXTRA WORK TO BE SPECIFICALLY REQUESTED BY COUNTY -- The AUDITOR, upon
receipt of a written request from the COUNTY, shall perform such
additional auditing services as defined in Article 2.7 as may be
required. This may include a review of the efficiency and economy of
operations, systems of internal control, operating and management
procedures and effectiveness in achieving program results.
The purchase of specialized services or extra audit services required
by special federal or state reporting requirements shall require
submission of a written proposal by the AUDITOR for agreement and
approval by COUNTY. Such extra work shall be covered by separate
purchase orders. The cost of such specialized services shall be
computed and billed in accordance with the provisions of Article VII of
this Agreement, except that those services such as the mathematical
verification of refunding bond redemption schedules, as well as related
services which are normally billed on a per unit basis, may be quoted
and billed per unit.
ARTICLE VI
WORK PAPERS
6. 1 For a period of ten (10) years after completion of any work provided for
herein, the AUDITORS shall make its work papers, records, and other
evidence and documents relating to such work available for inspection
and copying by the COUNTY and by the auditors retained by the COUNTY who
succeed ANDERSON & WHITNEY, P.C. to the extent necessary to support the
balance set forth in the most recent financial statements of the COUNTY
on which the AUDITOR has reported. Any records determined by the County
Attorney for Weld County to be public records under Colorado Law, shall
be made available to the COUNTY, successor C.P.A. Firms, and to the
general public. Any copying done shall be at the expense of the copying
party. Other requests for access to such documents will be considered
by the AUDITOR, but the AUDITOR has no obligation to grant them.
ARTICLE VII
COMPENSATION
7.1 MAXIMUM FEE FOR FISCAL 1991 AND 1992 -- AUDITOR has exercised its best
efforts in attempting to estimate the time requirements and, based upon
that estimate, has established a fee for fiscal 1991, based on its
applicable hourly rates, which shall not exceed $58,950.00. Likewise,
the fee for fiscal year 1992 shall not exceed $58,950.00 subject to
the terms of Article 7.3 following.
7.2 HOURLY FEES -- The following schedule of hourly fees shall apply to all
accounting and auditing services done for the term of this contract by
the AUDITOR, whether under this Agreement or for extra work requested
by the Board of County Commissioners.
Partner $75.00 per hour
Manager $50.00 per hour
Supervisor $30.00 per hour
Senior Accountant $30.00 per hour
Assistant Accountant $25.00 per hour
Non-professional
(Report reproductions, etc. ) $25.00 per hour
Cr? I '7'1'a
7.3 FEE FOR SECOND THRU FIFTH YEAR'S AUDIT -- After the Audit Report for
fiscal year 1991 has been delivered to the COUNTY by the AUDITOR,
AUDITOR or COUNTY may request a meeting with the other for the purpose
of reviewing the time requirement and related matters affecting the
degree of difficulty to be expected in preparing the audit for
subsequent fiscal years. Said request shall be in writing and shall
fully set forth the reasons and circumstances supporting the request for
a change, if any, in the fee provided for in Section 7.1 hereof. The
parties agree, however, that the maximum fee for the second year may be
increased only upon a showing by the AUDITOR of extreme and unforeseen
circumstances. The maximum fee for each year of the balance of the
Agreement will be mutually agreed upon and established in an amendment
to the Agreement. Fee changes must be submitted by August 1st of each
year to COUNTY by the AUDITOR.
7.4 BILLING -- The COUNTY shall cover this Agreement with a purchase order.
AUDITOR shall submit a monthly billing for all fees and expenses
occurring during the preceding month attributable to the audit against
this purchase order. These billings shall reflect the total hours of
work performed pursuant to the staff categories listed in Article 7.2.
Such billings shall also itemize any authorized reimbursable expense
and the task or tasks with which such expense is associated.
The statement shall show a summary of fees and expenses with accrual of
the total and credits for portions paid previously, and shall allocate
the billing costs to the appropriate fund or combination of funds. Each
statement shall show the proportion of the guaranteed maximum payment
that has been expended though previous billings.
7.5 PAYMENT -- COUNTY agrees to promptly process each monthly statement
received from AUDITOR and it shall make its best effort to remit
billings within thirty (30) days of receipt of AUDITOR'S monthly
statement.
7.6. RECORD KEEPING -- AUDITOR agrees to keep such records and accounts as
may be necessary in order to record complete and correct entries as to
personnel hours charged and any expenses for which AUDITOR expects to
be reimbursed. Such books and records will be available at all
reasonable times for examination and audit by COUNTY.
7.7 NO ADDITIONAL COMPENSATION FOR EXPENSES -- The AUDITOR shall not be
reimbursed for any travel, per diem, photo copying, telephone bills, or
related expenses unless incurred at the specific request of the COUNTY.
7.8 COMPENSATION FOR EXTRA AUDITING SERVICES -- Compensation to the AUDITOR
for extra auditing services shall be based upon the hourly rates
provided in Article 7.2 above, and shall be subject to the other
provisions of this Article.
ARTICLE VIII
GENERAL
8.1 NO ASSIGNMENT BY AUDITOR -- This Agreement, or any interest herein,
shall not be assigned, transferred or otherwise encumbered, under any
circumstances by AUDITOR. However, the Agreement shall run to the
COUNTY and to any of its successors.
8.2 AUDITOR SHALL BE FAMILIAR WITH ALL APPLICABLE LAWS -- The AUDITOR shall
familiarize themselves with and comply with the provisions of any and
all Federal, State and County Orders, Statutes, Ordinance, Charter, Bond
Covenants, Administrative Code, Rules and Regulations which may pertain
to the work required under this Agreement, including specifically those
which pertain to "Conflicts of Interest" and "Employment
Discrimination".
8.3 TERMINATION -- It is understood and agreed that this Agreement may be
terminated upon thirty (30) days written notice by either party.
8.4 REPRESENTATIVES OF COUNTY -- While the AUDITOR has agreed to communicate
periodically with the Board of County Commissioners, it is recognized
that questions in the day-to-day conduct of the audit will arise. The
Director of Finance and Administration of Weld County is hereby
designated as the representative of Weld County through whom all
communications pertaining to the day-to-day conduct of the audit shall
be addressed. The Director of Finance and Administration may, from time
to time, designate one or more o£ his staff to perform all or part of
the functions required hereunder and shall so advise the AUDITOR.
AUDITOR may communicate directly with Treasurer since he is an
independently elected official of the COUNTY.
8.5 REPRESENTATIVES OF AUDITOR -- The AUDITOR shall inform the Director of
Finance and Administration of the name of the representative of the
AUDITOR to whom matters involving the conduct of the audit shall be
addressed.
8.6 ALL PRIOR AGREEMENTS -- It is agreed that no deviation from the terms
hereof shall be predicated upon any prior representations or agreements
whether oral or written.
It is further agreed that no modification, amendment or alteration in
the terms or conditions contained herein shall be effective unless
contained in a written document executed with the same formality and of
equal dignity herewith.
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IN WITNESS WHEREOF, the parties above named have executed this agreement
on the day of SiejtibliL , 1991.
BOARD OF COUNTY COMMISSIONERS
ATTEST: WELD COUNTY, CO ORADO
Clerk to the Board BY:
Gor le,rman
BY: n,�igy'S ��
eputy Clerk
CONTRACTOR:
ANDE(R/nS/�,OON & WHITNEY,, P.C.�
BY: ciq a L,�na,c l&f
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