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CONTRACT 3886A Amendment CLOSEDAgreement No. 3866A 3866 FIRST AMENDMENT TO AGREEMENT NO. 3866 BETWEEN THE CITY OF EL SEGUNDO AND MAYER HOFFMAN McCANN P.C. THIS FIRST AMENDMENT ( "Amendment ") to Agreement No. 3866, executed on or about November 1St, 2008 (the "Agreement "), is made and entered into this 1 st day of October 2013, by and between the CITY OF EL SEGUNDO, a general law city and municipal corporation existing under the laws of California ( "CITY "), and MAYER HOFFMAN McCANN P.C., a Missouri Corporation ( "CONSULTANT "). The Parties agree to amend the Agreement as follows: 1. Section 1(C) of the Agreement is amended to read as follows: "As additional consideration, CITY agrees to pay CONSULTANT a sum not to exceed one hundred sixty nine thousand one hundred forty two dollars ($169,142) for CONSULTANT's services. CITY may modify this amount as set forth below. Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in the attached Exhibit `B," which is incorporated by reference." 2. The term of the Agreement is extended for three (3) years with two (2) years extension option authorized upon mutual consent of the parties. Therefore, Section 8 of the Agreement is amended to read as follows: "The term of this Agreement will be from October 1St, 2013 to September 30th, 2015. The City Manager's sole discretion, for an additional two (2) years not to exceed $25,000 for each subsequent year the agreement is extended. Unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances: A. Completion of the work specified in Exhibit "A "; B. Termination as stated in Section 16." 3. Attached Exhibits "A," and `B," which are incorporated by reference, are added to the Agreement for the extended term. 4. This Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date. 5. Except as modified by this Amendment, all other terms and conditions of the Agreement remain the same. Page 1 of 2 Agreement No. 3866A 3866 j," i w ITN,liSS WITEREOF the parties hereto twe execrated this iMtract dw day laxid jwar first hercinabove wfiften, CITY )o C 'reg l City', anager TTES-r- Tracy Weav City Cterk MAYER kROFMAN PkeluCANN RC Marcus DD-avis Sharcholder Taxpayer ID No, 43-1947695 MIT'4 OVEMA5 1110"I'T"'", -,z M A K D , I I a0zlIe'y R By: 1;1�) Karl H. City Attorney Fla ge 2 of 2 Agreement No. 3866A Exhibit A Nature of Services Required A. General The City of El Segundo is soliciting the services of qualified firms of certified public accountants to audit its financial statements for the three fiscal years ending September 30, 2013, 2014, and 2015, with the option of auditing its financial statements for each of the two (2) subsequent fiscal years (2016 and 2017). These audits are to be performed in accordance with the provisions contained in this request for proposals. B. Scope of Work to be Performed The City of El Segundo desires the auditors to express an opinion on the fair presentation of the City's general purpose financial statements in conformity with generally accepted accounting principles. The City of El Segundo also desires the auditors to express an opinion on the fair presentation of the City's combining and individual fund and individual account group financial statements and supplemental schedules in conformity with generally accepted accounting principles_ The auditors are not required to audit the supporting schedules contained in the comprehensive annual financial report. However, the auditors must provide an "in- relation -to" report on the supporting schedules based on the auditing procedures applied during the audit of the general purpose financial statements and schedules. The auditors are not required to audit the statistical section of the report. The auditor is also required to audit the schedule of expenditures of federal financial assistance. This information should be subject to the auditing procedures applied in the audit of the basic financial statements and in accordance with Governmental Auditing Standards, the federal Single Audit Act and (OMB) Circular A -133. The auditor is to provide an opinion of the fair presentation of this schedule in relation to the basic financial statements taken as a whole. C. Auditing Standards to be Followed To meet the requirements of this request for proposals, the audit shall be performed in accordance with generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants; the standards for financial audits set forth in the U.S. General Accounting Office's Government Auditing Standards; the provisions of the federal Single Audit Act of 1984 as amended; and the provisions of the U.S. Office of Management and Budget (OMB) Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. D. Reports to be Issued Following the completion of the audit of the fiscal year's financial statements, the audit firm shall issue the following reports: 1. The City of El Segundo desires the preparation of the City Comprehensive Annual Financial Report (CAFR) in full compliance with GASB 34 and all other GASB Agreement No. 3866A pronouncements. The audit firm will render their auditor's report on the basic financial statements which will include the Government -Wide Financial Statements and the Fund Financial Statements. The City will print the final CAFR for distribution. 2. The City of El Segundo will continue to send its CAFR to the Government Finance Officers Association of the United States and Canada for review in its Certificate of Achievement for Excellence in Financial Reporting program, and to the California Society of Municipal Finance Officers for review in its Award for Outstanding Financial Reporting program. The auditors will be required to provide special assistance to the City of El Segundo to meet the requirements of those programs. 3. A separate Single Audit Report on grant activities, internal controls over financial reporting and compliance performed in accordance with the U.S. Office of Management and Budget (OMB) Circular A -133, Audits offtates, Local Governments, and Non -Proms Organizations. The report will include the appropriate schedule of expenditures of federal awards, footnotes, findings and questioned costs, including reportable conditions and material weaknesses, and follow up on prior audit findings where required. 4. A separate management letter (SAS l .14) that include disclosures of material and non- material weaknesses in internal controls, disclosures of violations of finance - related legal and contractual provisions, and auditors recommendations for financial and program management improvements. City staff comments addressing any issues disclosed, such as a material weakness, will be incorporated in the report. 5. A separate management letter (SAS 115) that includes an overview on the scope of the audit and the firms' responsibility under U.S. GAAS; any misstatements, audit adjustments or significant audit findings; and any difficulties encountered during the audit including disagreements with management. 6. A separate report on the City's calculation of the Gann Limit. 7. The Annual State Controller's Report for the City of El Segundo. E. Special Considerations I. The City of El Segundo desires an additional 50 hours of executive time for research and assistance concerning accounting and other technical matters each year. These hours are above and beyond the professional time associated with the audit. F. Working Papers Retention and Access to Working Papers All working papers and reports must be retained, at the auditors' expense, for a minimum of five (5) years, unless the firm is notified in writing by the City of El Segundo of the need to extend the retention period. The auditors will be required to make available all original working papers for examination, upon request, to the City of El Segundo or any federal and state agencies designated by the City. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. Agreement No. 3866A G. Irregularities and Illegal Acts Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the following parties: Director of Finance; City Manager; and the City Attorney. Agreement No. 3866A m t y ME Out -of- packet expenses. Mileage 1,900 Total all - inclusive maximum price — September 30, 2013 $� The above fee assumes one major program for Single Audit purposes. The fee for each additional major program required to be audited is $2,000. ., Standard Queued Hours Hpurly R tee Hourly bates IQ lI Shareholders 38 $282 $175 $ 6,460 Managers 70 197 -120 6,400 Senior Associates 208 141 95 18,760 Associates 174 112 85 14.790 Subtotal 4W 49,410 Total for services described in Section HE of the RFP 4,500 Out -of- packet expenses. Mileage 1,900 Total all - inclusive maximum price — September 30, 2013 $� The above fee assumes one major program for Single Audit purposes. The fee for each additional major program required to be audited is $2,000. ., Out -of- pocket expenses, Mileage 1 900 Total ail - inclusive maximum price — September 30, 2014 $15-55M The above fee assumes one major program for Single !audit purposes. The fee for each additional major program required to be audited is $2,000. Standard Quoted Hours Hourly Rates Flourfy Rates Total Shareholders 38 $282 $175 $ 6,460 Managers 70 197 120 8,400 Senior Associate=s 208 141 95 19,760 Associates 174 112 85 14,790 Subtotal AN 49,410 Total for services described in Section HE of the RFP 4,500 Out -of- pocket expenses, Mileage 1 900 Total ail - inclusive maximum price — September 30, 2014 $15-55M The above fee assumes one major program for Single !audit purposes. The fee for each additional major program required to be audited is $2,000. Agreement No. 3866A - � Standard Quoted Hours Hourly Rates Houma Rates Total Shareholders 38 $298 $180 $ 6,840 Managers 70 209 123 8,610 Senior Associates 208 149 98 20,384 Associates 174 118 87 15,138 Subtotal 40 50,972 Total for services described in Section HE of the RFP 4,600 Out -of- pocket expenses: Mileage 1,950 Total all - inclusive maximum price — September 30, 2015 $� The above fee assumes one major program for Single Audit purposes, The fee for each additional major program required to be audited is $2,100. Schedule of Professional Fees end E eense Sontemb r 30. 201 Standard Quoted Hours Hourly Rates Hourly Rates Total Shareholders 38 $306 $185 $ 7,030 Managers 70 215 126 8,820 Senior Associates 208 153 101 21,008 Associates 174 121 89 15,486 Subtotal 420 52,344 Total for services described in Section HE of the RFP 4,700 Out -of- pocket expenses: Mileage 2,000 Total all- inclusive maximum price — September 30, 2016 $ The above fee assumes one major program for Single Audit purposes. The fee for each additional major program required to be audited is $2,200. Agreement No. 3866A Kk • • Subtotal 49Q Total for services described in Section HE of the RFP Out -of- pocket expenses: Mileage Total all- inclusive maximum price — September 30, 2017 The above fee assumes one major program for Single Audit purposes additional major program required to be audited is $2,200. Total $ 7,220 9,030 21,632 15.834 53,716 4,800 2.050 $0.5ffi The fee for each Fee by Audit Component The following table details the fixed fees, by fiscal year, for each component of the audit Standard Quoted Description Hours Hourly Rates Hourly Rates Shareholders 38 $315 $190 Managers 70 221 129 Senior Associates 208 157 104 Associates 174 124 91 Subtotal 49Q Total for services described in Section HE of the RFP Out -of- pocket expenses: Mileage Total all- inclusive maximum price — September 30, 2017 The above fee assumes one major program for Single Audit purposes additional major program required to be audited is $2,200. Total $ 7,220 9,030 21,632 15.834 53,716 4,800 2.050 $0.5ffi The fee for each Fee by Audit Component The following table details the fixed fees, by fiscal year, for each component of the audit The above fees assume one major program for Single Audit purposes, Year Ending September 30, Description 2013 2014 205 2016 2017 Basic Financial Statements $45,110 $45,110 $46,502 $47,694 $48,876 Single Audit 9,000 9,000 9,270 9,550 9,840 Gann Limit 500 500 515 530 545 State Controllers Report 1,200 1,200 1,235 1,270 1,305 SAS 114 - - n SAS 117 Total $$ $ $SZ522 $ $ The above fees assume one major program for Single Audit purposes,