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
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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.
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Sincerely,
PENA SWAYZE & CO.