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R-85-705 - 4/11/1985, RESOLUTION NO. 700 WHEREAS, it is necessary to retain an accounting firm to perform an annual audit for the City for fiscal year 1984 - 1985, and WHEREAS, the firm of Pena, Swayze and Company has submitted a proposal to provide the accounting services to perform an audit, and WHEREAS, the Council wishes to accept said proposal, Now Therefore, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor of the City of Round Rock, Texas, is hereby authorized and directed to execute on behalf of the City, a proposal from Pena, Swayze and Company for accounting services, a copy of such proposal being attached hereto and incorporated herein for all purposes. RESOLVED this // of ATTEST: J006RES , 1985. MIKE ROBINSON, Mayor City of Round Rock, Texas 1 1 r, PENA SWAYZE & CO. CERTIFIED PUBLIC ACCOUNTANTS Hon. Mike Robinson, Mayor City of Round Rock Round Rock, Texas Dear Sir: April 9, 1985 This letter is to confirm our understanding of the arrangements for the services we are to perform for the City of Round Rock for the year ended September 30, 1985. We will perform an examination for the purpose of expressing an opinion on the fairness of the presentation of the Comprehensive Annual Financial Report. Our examination will be conducted in accordance with generally accepted auditing standards. It will include a review of the system of internal accounting controls, analytical reviews and tests of the transactions and balances to the extent we believe necessary. Our procedures will include tests, by statistical sampling, if feasible, of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories and fixed assets, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected creditors, legal counsel and banks. Although defalcations and similar irregularities may occasionally be disclosed by this type of examination, it is not designed for this purpose and should not be relied on to disclose fraud, should any exist. We will, of course, report to you anything that appears to us during our examination to be unusual or abnormal. As you know, management has the primary responsibility for properly recording transactions in the records, for safeguarding assets and for preparing accurate financial statements. Our basic audit function is to add reliability to those financial statements. As a result of our review of your system of internal accounting controls, we will report to you any material weakness we observe. We will try to initiate ideas or observations that we believe will help achieve the objectives of the City. We will also be pleased to respond to inquiries you might have about financial or other business matters. MEMBER AMERICAN INSTITUTE AND TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS P 0 BOX 250 ROUND ROCK, TEXAS 78680 512/2552165 Hai. Mike Robinson, Mayor April 9. 1985 Page 2 Your office is to furnish the necessary and customary clerical staff to assist us in preparing detail trial balances and supporting schedules. City personnel will prepare certain schedules in advance of our beginning interim and year -end work. We also understand that your staff will assist us by locating and submitting to us invoices, cancelled checks and other documents and records which we request. Our fees are based on the time required by the individuals assigned to the engagement, plus direct expenses. Individual hourly rates vary according to the degree of responsibility and skill required. We estimate that our time requirement will be 375 to 400 hours and the fee for our engagement will be $15,000 to $18,000. If you intend to publish or otherwise reproduce the financial statements and make reference to our firm name, you agree to provide us with printers' proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. If this letter defines the arrangements as you understand them, please sign and date the enclosed copy and return it to us. If not, please let us know what changes are needed. CONFIRMED BY: r Mayor Mike Robinson 4/4/-1.s Date PENA SWAYZE & CO. ummommucAccouwArm Sincerely, PENA SWAYZE & CO.