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Home My WebLink AboutOrdinance No. 177 AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT FOR THE PURPOSE OF PREPARING AN AUDIT OF THE FINANCIAL STATEMENTS OF THE CITY OF THE COLONY FOR THE YEAR ENDING SEPTEMBER 30, 1981, WITH PEAT, MARWICK, MITCHELL & COMPANY; ATTACHING THE APPROVED FORM OF THE CONTRACT AS EXHIBIT "A"; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the City Manager of the City of The Colony is hereby authorized to execute on behalf of the City a contract for the purpose of preparing an audit of the financial statements of the City of The Colony for the year ending September 30, 1981, with Peat, Marwick, Mitchell & Company for a fee based on actual time expended not to exceed $10,500. The approved form of such contract is attached hereto as Exhibit "A", and made a part hereof for such purposes. SECTION 2. This Ordinance shall take effect immediately from and after its passage by the City Council of the City of The Colony, Texas. THIS ORD~INA~ WAS DULY PASSED BY THE CITY COUNCIL ON THE ~ DAY OF ¢-~'~~'~-~z - 1981. APPROVED /.'R'ICHARD TURNER; ATTEST:-) ' /if · J~/CE ~ARROLL, CITY SECRET~RY APPROVED AS TO LEGALITY OF THE FORM: CITY ATTORNEY ' ~at~ Ma Ceffified Pubhc Accountants Suite 155), 2001 Bryan Tower rwick, Mitchell &Co Dallas, Texas 75201 September 25, 1981 Hembers of the City Council City of The Colony, Texas The Colony, Texas 75056 Dear Council gembers: We are pleased to submit for your cons±derat±on our engagement letter setting forth the scope and objectives of engagement, estimate of hours, fees and timing pertaining to our examination of the financial statements of the City of The Colony for the year ending September 30, 1981. SCOPE ~ OBJECTI~S OF ENGAGEMENT Examination of Combined Financial Statements We will make an examination of the combined financial statements of the City of The Colony for the year ending September 30, 1981 and report thereon to the City Council. Our examination will be conducted in accordance with generally accepted auditing standards promulgated by the American Institute of Certified Public Accountants and, accordingly, will include such tests of the accounting records and such auditing procedures as we consider necessary in the circum- stances to express an opinion on the financial statements. Having regard to the test nature of our examination, you will appreciate that our audit will not necessarily disclose shortages or irregularities, should any exist. As requested by the City Council, we will meet with members of the City Council and City management to discuss the nature, purpose and results of the audit. These meetings could take place at the beginning of the audit and during the final phases of the examination prior to issuance of the required reports. Letter on Internal Controls and Accounting Procedures In connection with our examination of the financial statements mentioned in the preceding paragraph, we will review the City's system of internal control and accounting procedures and will issue a letter to the City Council outlining our comments and suggestions with respect to potential improvements in such system and procedures which come to our attention during the course of our examin- ation. Contents of the letter will be discussed with members of the City Council and City management prior to final issuance. '~"/ ~.t. Ma rwick, Mitchell & Cu Members of the City Council City of The Colony, Texas September 25, 1981 2 Additional Services In addition to the examination of the combined financial statements described above, we will also perform, as a part of the audit, the following special services: · Develop Financial Performance Criteria for the City, evaluate such criteria and issue a report on the results of the evalua- tion. Sample performance criteria were described in our letter to the City manager dated September 4, 1981. These criteria are a part of an overall effort to assist the City in continuing to improve financial management of the City's resources and opera- tions. · Assist in determining compliance requirements and systems to monitor such compliance with the Texas Park and Wildlife Depart- ment grant award for local park space development. Assist in the development of a detailed general fixed asset accounting system and the related procedures necessary to main- tain the system. ESTImaTE OF HOURS Following is an estimate of hours of effort required for each of the specified services to be performed: Hours · Examination of combined financial statements, reporting thereon and presentation of management letter on internal control and accounting procedures (see note 1) 280 · Development of Financial Performance Criteria and reporting thereon 24 · Assistance regarding compliance with Texas Park and Wildlife Grant (see note 2) 6 · Assistance regarding development and maintenance of general fixed asset records-(see note 2) 16 Notes: (1) It should be noted that the estimated hours include approximately 40 hours expended in the review of internal control and accounting procedures· (2) Such services to be provided as and when requested by the City. ~t. Marwick, Mitchell&Ca Members of the City Council City of The Colony, Texas September 25, 1981 3 FEES Our fees will be based on actual time expended at standard hourly rates based on the level of experience of the individuals assigned to the engagement. Fees, including all of the services set forth in the preceding section, will not exceed $10,500. The above estimate of fees is based on our obtaining assistance from personnel of the City in preparing working papers and schedules, locating documents, drafting of financial statements and providing such other assistance as deemed appropriate by ns and the City. Should we encounter any unforeseen circum- stances which would require an extension of our normal audit procedures, we would discuss them with you before proceeding. Any services provided outside of those set forth above will be billed separ- ately at the standard hourly rates for the individuals assigned. TIMING We will initiate and complete the examination in November 1981 with delivery of the report to the City Council on or before December 1, 1981. We appreciate the opportunity to work with the City of The Colony and trust that these arrangements will meet with your approval. Very truly yours, PEAT, MARWICK, MITCHELL & CO. Paul J. Mucf>6ni, Partner PJZ: 1 sb Enc. arwick, Mitchell&Crt i'Iembers of the City Council City of The Colony, Texas September 25, 1981 3 FEES Our fees will be based on actual time expended at standard hourly rates based on the level of experience of the individuals assigned to the engagement. Fees, including all of the services set forth in the preceding section, will not exceed $10,500. The above estimate of fees is based on our obtaining assistance from personnel of the City in preparing working papers and schedules, locating documents, drafting of financial statements and providing such other assistance as deemed appropriate by us and the City. Should we encounter any unforeseen circum- stances which would require an extension of our normal audit procedures, we would discuss them with you before proceeding. Any services provided outside of those set forth above will be billed separ- ately at the standard hourly rates for the individuals assigned. TIMING We will initiate and complete the examination in November 1981 with delivery of the report to the City Council on or before December 1, 1981. We appreciate the opportunity to work with the City of The Colony and trust that these arrangements will meet with your approval. Very truly yours, PEAT, ~RWICI(, MITCHELL & CO. Paul J. ~u~ni, Partner PJZ: 1 sb Enc. ACCEPTED: CITY OF THE COLONY, TEXAS By: Date: