HomeMy WebLinkAbout970144.tiffAGREEMENT
Between
WELD COUNTY
and
HUNT, SPILLMAN, AND ASSOCIATES, P.C.
PROVIDING FOR AN AUDIT OF
COUNTY RECORDS
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
HUNT, SPILLMAN, AND ASSOCIATES, 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 may be relied upon by the parties
essential elements of the mutual considerations upon which this Agreement is based.
anamt a
1.1
Section 14-4 of the Weld County Home Rule Charter and Section 29-1-603, CRS,
require that COUNTY shall provide annually for an audit of the accounts and
finances of 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 September 25,1996.
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1.2.2 On September 25, 1996, 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 September 25, 1996, the Board of County commissioners voted to hire
the firm of HUNT, SPILLMAN, AND ASSOCIATES, P.C., Certified
Public Accountants 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 -- Hunt, Spillman, and Associates, P.C., Certified Public Accountants.
2.3 FINANCIAL AUDIT -- The examination of documents, records, reports, systems of
internal control, accounting and financial procedures, and other evidence to
ascertain whether the statements prepared from the accounts present fairly, in all
material respects, the financial positions and the results of financial operations of
the various funds, types and account groups of the governmental unit in accordance
with generally accepted accounting principles applicable to governmental units and
on a basis consistent with that of the preceding year and as required for reporting
in Section 29-1-603, CRS, wherein financial audit is defined as "an examination of
financial statements in order to express an opinion on the fairness with which they
present financial position, results of operations, and changes in financial position in
conformity with generally accepted government accounting principles and an
examination to determine whether operations are property conducted in accordance
with legal and regulatory requirements".
2.4 AUDITOR'S REPORT ON EXAMINATION OF FINANCIAL STATEMENTS -- The
report prepared by AUDITOR covering the audit or investigation made by him. The
report shall include, but not be limited to:
2.4.1 a statement of the scope of the audit;
2.4.2 explanatory comments (if any) concerning exceptions by AUDITOR as to
application of generally accepted auditing standards;
2.4.3 signed opinions; and
2.4.4 explanatory comments (if any) concerning verification procedures. The
AUDITOR'S signature shall follow item 2.4.3 or 2.4.4, whichever appears
last.
2.5 FINANCIAL STATEMENTS -- A balance sheet, statement of revenues and
expenditures, compared with budget authorization, statements analyzing changes
in fund balances or retained earnings, or other statements of presentation of
financial data, including accompanying notes, derived from the accounting records.
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2.6 AUDITOR'S LETTER OF COMMENTS AND RECOMMENDATIONS -- A letter to
COUNTY containing various comments and recommendations by AUDITOR based
upon a review of COUNTY'S system of internal accounting and operating controls
and other findings.
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
COUNTY as extra work and which involve exclusively the use of 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 1996, 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 AUDITOR shall assist in the preparation of 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 GAAFR. Funds may be combined to the extent
permitted by the Industry Audit Guide.
4.1.2 A Single Audit shall be done in accordance with generally accepted auditing
standards, the provisions of "Standards for Audit of Governmental
Organizations, Programs, Activities, and Functions" promulgated by the U.S.
Comptroller General as they pertain to financial and compliance audits, 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", and auditors' reports on compliance and internal accounting
control rendered thereon.
4.2 SPECIAL REPORTS -- Special reports shall be prepared for the following
as required by, and in accordance with, federal audit guides existing during the
period audited.
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4.2.1 Public Trustee
4.2.2 Treasurer
4.2.3 County Fair
4.2.4 Grand Jury Audit of Treasurer, as required
4.2.5 Road and Bridge Revenue and Expenditures
4.2.6 Weld County Retirement Plan
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 LETTER -- AUDITOR shall prepare and submit to COUNTY
a letter reporting on COUNTY'S compliance with laws and regulations,
noncompliance with which could have a material effect on the COUNTY'S
financial statements.
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 containing the AUDITOR'S comments 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
AUDITOR'S comments, including corrective action to be taken, shall be filed
with the governing body of COUNTY within twenty (20) days of the delivery
of the financial audit report.
4.3.2 MANAGEMENT CONTROL LETTER -- A tentative separate Management
Control letter shall be delivered to the Director of Finance and Administration
for 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 Management Control 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 the Management Control letter within this two-week period.
However, AUDITOR shall deliver said Management Control letter to the
Board of County Commissioners no later than two (2) weeks after receipt of
the comments of COUNTY and responsible officers as may be required.
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4.3.3 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 fumished to COUNTY
not later than one hundred fifty (150) days after the last day of the fiscal
year.
4.3.4 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 predicated 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 Standards for Audit of Governmental Organization, Programs
Activities and Functions 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, the provisions of "Standards for Audits
of Governmental Organizations, Programs, Activities, and Functions" promulgated
by the U.S. Comptroller General as they pertain to financial and compliance audits,
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", and
auditors' reports on compliance and internal accounting control rendered thereon.
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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, Hunt, Spillman and Associates, 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 -- AUDITOR is aware that illegal acts may be discovered during
the audit. However, it is recognized that the audit cannot be relied upon to assure
the discovery of illegal acts, nor is the audit primarily or specifically designed to
disclose defalcations and other illegal acts, though their discovery may result. 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, 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 -- AUDITOR,
upon receipt of a written request from 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 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
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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 five (5) years after completion of any work provided for herein,
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 AUDITOR to
the extent necessary to 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 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 1996 AND 1997 -- AUDITOR has exercised its best
efforts in attempting to estimate the time requirements. Based upon that estimate,
AUDITOR has established a maximum fee for fiscal 1996 and fiscal 1997, based
on its applicable hourly rates, subject to the terms of Article 7.3.
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.
Stockholder
Manager
Supervisor
Senior Accountant
Assistant Accountant
Non-professional
(Report reproductions, etc.
$100 per hour
$ 75 per hour
$ 60 per hour
$ 55 per hour
$ 50 per hour
$ 25 per hour
7.3 FEE FOR SECOND THRU FIFTH YEAR'S AUDIT -- After the Audit Report for fiscal
year 1996 has been delivered to COUNTY by AUDITOR, either party 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
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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 (fiscal 1997) may be increased only upon a
showing by 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 AUDITOR.
7.4 BILLING -- 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.
The statement shall show a summary of fees and expenses with accrual of the total
and credits for portions paid previously. Each statement shall show the proportion
of the guaranteed maximum payment that has been expended through previous
billings. The final billing shall include an allocation of the total billed by fund.
7.5 PAYMENT -- COUNTY agrees to promptly process each monthly statement
received from AUDITOR and to endeavor 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 -- 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
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 COUNTY and to any of its
successors.
8.2 AUDITOR SHALL BE FAMILIAR WITH ALL APPLICABLE LAWS --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".
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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 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 shall be addressed. 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 of his staff to perform all or part of
the functions required hereunder and shall so advise AUDITOR. AUDITOR may
communicate directly with Treasurer since he is an independently elected official of
the COUNTY.
8.5 REPRESENTATIVES OF AUDITOR -- AUDITOR shall inform the Director of
Finance and Administration of the name of the representative of 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.
IN WITNESS WHEREOF, the parties above named have executed this agreement
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
r to the Boar
BY
Barbara J. Kirkmeyer, Chair
CONTRACTOR:
HUN ILLMAN AND ASSOCIATES, P.C.
BY.
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