HomeMy WebLinkAbout1987-022 Contract for AuditGERALD W. BURNS
CERTIFIED PUBLIC ACCOUNTANT
1744-B E. McANDREWS RD.. MEDFORD, OR 97504
503-773-2011
June 17, 1987
Bob Nelson
City of )mhiand
ZO E blain
Ashland, Oregon 97520
Encloaed please find the contract for the 1986-87 audit for the City o'?
Ashland revised per our discussion. The terms, conditions, and hourly rate
are the same as the 1985-86 contract, but the overall fee and required audit
hours have been changed to be consistant with the 1987--90 contract.
Please sign a copy and return to me. If I can be of ~my further
assistance, please call.
G¥1B/cjb
k,'nc].osures
10/trns
· ms, CPA
GERALD W. BURNS
CERTIFIED PUBLIC ACCOUNTANT
1744-B E. McANDREWS RD, - MEDFORD, OR 97504
503-773-2011
CONTRACT FOR AUDIT OF OREGON MUNICIPALITY
TIIIS CONTRACT, made this ~ day of ~ , 1987, in
accordance with the requirements of Oregon Revised Statues 297.405 throuffh
297.555 between the firm of Gerald W. Burns, CPA, of Medford, Oregon, and
the City of Ashlmld, Oregon, provides as follows:
]. It is hereby agreed that Gerald W. Burns, CPA, shall conduct an
audit of the accounts and fiscal affairs of the City of Ashland, Oregon, for
the year beginning July 1, 198S and ending June 30, 1987, in accordance with
the Minimum St~]dards for Audits of Municipal Corporations as prescribed by
law. The audit shall be undertaken in order to express an opinion upon the
financial statements of the City of Ashland, Oregon, and to determine if the
City has complied substantially with appropriate legal provisions.
2. Gerald W. Burns, CPA and Municipal Auditor, agrees that the
services he has contracted to perform under this contract shall be rendered
under his personal supervision, and that the work will be performed with
care mid diligence.
3. It is understood and agreed that, should unusual conditions arise
or be encountered whereby the services of Gerald W. Burns, CPA, are
necessary beyond tile extent of the work contemplated, written notification
of such unusual conditions shall be delivered to the City of Ashland,
Oregon, who shall instruct Gerald W. Burns, CPA, in writing concerning such
additional services, and that the signed copy of such notification and
instruction shall be delivered immediately to the Secretary of State by the
Party issuing the same.
4. The audit shall be started as soon after this contract is executed
as is a~reeable to the Parties hereto and shall be completed and a written
report thereon delivered within a reasonable time. Ten (10) copies of such
report shall be delivered to the City of Ashland, Oregon, and its
CONTRACT FOR AUDIT OF OREGON MUNICIPALITY -
CITY OF ASHLAND, OREGON
Page 2
form and content shall be in accordance with, and not less than, that
required by the Minimum Standards for Audits of Oregon Municipal
Corporations.
5. It is understood and agreed that the City of Ashland, Oregon, is
responsible for such financial statements as may be necessary to fully
disclose and fairly present the results of operations for the period under
audit. It is understood that Gerald W. Burns, CPA, shall dx'aft such
financial statements for the City of Ash]and, Oregon. The cost of preparing
such financial statements shall be included in the fee for conducting the
audit as set forth in Paragraph 7.
6. It is understood and agreed that this contract shall be effective
when signed, and may continue from year to year thereafter.
7. In consideration of 'the faithful performance of the conditions,
covenants, and undertaking herein set forth, the City of Ashland, Oregon,
hereby agrees to pay Gerald W. Burns, CPA the approximate sum of $25,000.00
to audit the City's accounts. The total amount to be determined based on
the total number of hours expended at an average of $33.00 per hour.
8. It is understood and agreed that this contract shall include an
audit of the Ashland Community Hospital accounts. The fee for this audit
service will approximate $12,000.00 based on the total number of hours
expended at an average rate of $33.00 per hour and is included in the fee
estimate contained in Paragraph 7.
9. It is understood and agreed that this contract shall inclnde an
audit of the Ashland Parks and Recreation Commission accounts. The fee for
this audit service will approximate $3,500.00 based on the total number of
hours expended at an average rate of $33.00 per hour and is included in the
fee estimate contained in Paragraph 7.
10. The fee estimate contained in Paragraph 7 includes up to 62 hours
time to review the City's compliance with terms of Federal funding
agreements under the single audit act. It does not include time to review
the City's compliance with terms of agreements relating to participation in
programs funded by other governmental agencies, if it is required by the
terms of funding grants. It also includes the time required 1o perform
limited reviews to assure other granting agencies that reports filed with
those agencies agree to the accounting records of the City of Ashland,
CONTRACT FOR AUDIT OF OREGON MUNICIPALITY -
CITY OF ASHLAND, OREGON
Page 3
Oregon. These limited reviews are required to be included under the Minimum
Standards for Audits of Municipal Corporations. I am unable to estimate the
time necessary for a full compliance review of any grants in addition to
Federal grants until I have ascertained the extent of your City's
involvement in such programs. Therefore, the fee for this portion of the
audit will be determined based on the total number of hours expended at an
average of $23.00 per hour.
11. It is understood and agreed that this contract shall include
consulting services that may be performed by Gerald W. Burns, CPA concerning
fiscal matters, budgeting and accounting procedures for the City of Ashland,
Oregon, the Ashland Parks and Recreation Commission and the Ashland
Con,unity tlospital. The fee for such consulting services would be based on
the total number of hours expended at an average of $4.00 per hour higher
than the average audit service hourly rate for each fiscal year included in
this audit contract.
]2. If, as the auditing or consulting work progresses, it becomes
apparent that the hours required are less than 10% in excess of the planned
estimate, the City Administrator, the Parks and Recreation Commission
Director, or the Hospital Administrator is authorized to approve the change
in fee estimate based on the additional hours required.
13. If, as the audit or consulting work progresses, it becomes apparent
that 'the hours required are more than 10% in excess of the planned estimate,
the reasons shall be determined and the pcovisions as outlined in Paragraph
3 shall be referred to. The total fee estimate, and required hours, shall
then be reevaluated based on such changed conditions.
14. The City of Ashland, Oregon, hereby affirms that proper provision
for the payment of such fee has been, or will be, duly made and that funds
for the payment thereof are, or will be, legally available. The City of
Ashland, Oregon, also agrees that payments will be made as work progresses,
based on monthly statements rendered by Gerald W. Burns, CPA. Payments will
be made within 30 days of billing. Late payments fees of 1-1/2% of amount
unpaid shall be due and payable if payment is made after 30 days of billing.
CONTRACT FOR AUDIT OF OREGON MUNICIPALITY -
CITY OF ASHLAND, OREGON
Page 4
GERALD W. BURNS, CPA
I) ATE
CITY OF ASHLAND, OREGON