R-09-07-23-10G4 - 7/23/2009RESOLUTION NO. R -09-07-23-10G4
WHEREAS, the City of Round Rock, Texas (the "City") is a
participating and founding member of the Brushy Creek Regional
Utility Authority, Inc., (the "BCRUA"), and
WHEREAS, the accounting firm of Pena Swayze & Co., L.L.P. has
submitted an engagement letter to provide accounting services for
the BCRUA, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the City Council hereby authorizes the Brushy Creek
Regional Utility Authority to enter into an engagement letter with
Pena Swayze & Co., L.L.P. for accounting services, a copy of said
engagement letter being attached hereto as Exhibit "A" and
incorporated herein for all purposes.
The City Council hereby finds and declares that written notice
of the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this 23rd day of July, 2009.
ALAN MCGRAW, Mayor
ATTEST: City of Round Rock, Texas
SARA L. WHITE, City Secretary
0Awdox\SCCInts\0112\0905\MUNICIPAIAR90723G4.00C/rmc
11 PESTA SWAYZE & Co.,L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS
June 30,2009
Brushy Creek Regional Utility Authority
221 E. Main Street
Round Rock, Texas 78664
To Whom It May Concern:
EXHIBIT
This letter is to confirm and clarify the following professional services we will provide
for Brushy Creek Regional Utility Authority (BCRUA).
Accounting Services
1. We will develop accounting and internal control procedures for the
administration and reporting offinancial activities of the Authority.
2. We will enter all accounts payable invoices and prepare checks for
approval and signature.
3. We will record all cash receipts and deposits.
4. We will perform monthly bank reconciliations for each bank account.
5. We will perform monthly adjustingjournal entries as necessary.
6. We will prepare payroll, payroll tax deposits, and all required payroll reporting.
7. We will prepare required annual 1099's.
6. Prepare an unaudited (compiled) balance sheet and income statement
monthly to be presented at the subsequent board meeting.
7. Assist in preparing annual budget and monthly budget comparison.
8. Provide any other accounting assistance and administrative services as
expressly requested in writing.
Our Fees
Our engagement fees are based upon the amount of time required at our standard
billing rates for the personnel working on the engagement plus out-of-pocket expenses. Our
invoices for these fees will be rendered each month as work progresses and are payable on
presentation.
Partner $250 - $300
Manager 125 250
Staff 75- 100
MEMBER AMERICAN INSTITUTE AND TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
RO. BOX 250 ROUND ROCK. TEXAS 78680 512-255-2165 FAX 512-255-2466
Brushy Creek Regional Utility Authority
June 30,2009
Page Two
These services cannot be relied upon to disclose all errors, irregularities, or illegal
acts, including fraud or defalcations that may exist. We will inform you the appropriate level
of the Authority of any mateial errors, irregularities or illegal acts that come to our attention.
The term of this engagement shall be five (5) years from May 15, 2009, provided that
either party may terminate the agreement upon thirty (30) days written notice to the other. In
the event of termination BCRUA shall be liable for all undisputed fees owed for work
performed through the date of termination plus fees for work authorized after the date of
termination to assist with the transition to a new service provider.
We appreciate that you selected us as your certified public accountants, and we look
forward to a long and mutually beneficial association.
If the foregoing is in agreement with your objectives, please sign the enclosed copy of
this letter in the space provided and return it to us.
Sincerely,
P2ia Ca) I"; I— tt°.
Pena Swayze & Co., L.L.P.
Accepted By:
Date:
DATE: July 16, 2009
SUBJECT: City Council Meeting —July 23, 2009
ITEM: 1064. Consider a resolution giving the Council's consent to the Brushy Creek Regional
Utility Authority (BCRUA) to enter into an engagement letter with Perla Swayze
for accounting services.
Department:
Staff Person:
Justification:
Administration
Cindy Demers, Assistant City Manager
The BCRUA requires professional services to establish the accounting for and financial management of
the construction of the regional water system on behalf of the three cities. Services will include
accounting for all bond proceeds, construction contracts, payments to vendors and monthly and annual
reporting of all financial activity. Pena Swayze has provided this type of service for other similar entities
in the area and has previously served as external auditors for both the Cities of Round Rock and Cedar
Park. The term is up to a maximum 5 year period.
Funding:
Cost: The fees are based upon the amount of time required at the standard billing
rates per hour.
Source of funds: Utility Fund
Outside Resources: Pena Swayze & Company, LLP
Background Information: N/A
Public Comment: N/A