Ordinance No. 10,948ORDINANCE NO. 10,948
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AUTHORIZING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO
ATTEST TO (I) AN ASSIGNMENT OF THE AGREEMENT FOR FINANCIAL
AUDITING SERVICES WHICH ASSIGNS SUCH AGREEMENT FROM
SANDERSEN, KNOX & BELT, LLP, TO BELT HARRIS & ASSOCIATES, LLLP;
AND (II) THE FIRST AMENDMENT TO THE AGREEMENT FOR FINANCIAL
AUDITING SERVICES WITH BELT HARRIS & ASSOCIATES, LLLP, FOR
ADDITIONAL SERVICES ASSOCIATED WITH RISK ASSESSMENT;
AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN IN AN AMOUNT NOT
TO EXCEED ONE HUNDRED THIRTEEN THOUSAND FOUR HUNDRED
EIGHTY-NINE AND NO/100 DOLLARS (SI 13,489.00); AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Bay town hereby authorizes and directs the
City Manager to execute and the City Clerk to attest to an Assignment of the Agreement for Financial
Auditing Services, assigning such agreement from Sandersen, Knox & Belt, LLP, to Belt Harris &
Associates, LLLP. Said assignment is attached as Exhibit "A" and incorporated herein for all intents and
purposes.
Section 2: That the City Council of the City of Baytown hereby authorizes and directs the
City Manager to execute and the City Clerk to attest lo the First Amendment to the Agreement for
Financial Services with Belt Harris & Associates, LLLP, for additional services associated with risk
assessment, Said amendment is attached as Exhibit t£B" and incorporated herein for all intents and
purposes.
Section 3: That the City Council of the City of Baytown authorizes payment to Bell Harris
& Associates. LLLP, in an amount not to exceed ONE HUNDRED THIRTEEN THOUSAND FOUR
HUNDRED EIGHTY-NINE AND NO/100 DOLLARS ($113,489.00) in accordance with the amendment
authorized in Section 2 hereof.
Section 4: That the City Manager is hereby granted general authority to approve a decrease
or an increase in costs by TWENTY-FIVE THOUSAND AND NO/100 DOLLARS ($25,000.00) or less,
provided that the amount authorized in Section 3 hereof may not be increased by more than twenty-five
percent (25%).
Section 5: This ordinance shall take effect immediately from and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ, and PASSED by the affirmative $te of the City Council of the City of
Baytown this the I21'1 day of August, 2008.
ATTEST:
KAYT/HljE DARNELT, City Clerk
APPROVED AS TO FORM:
. DONCARLOS, M'ayor
IACIO RAMIREZ, SIC Qity Attorney
\\cobsrvl\Lcg;i]\Karen\i;iles\CityCoSiH««\OrLliriiinces1>2IHJ8\ALigiist 1ZvAssigiimcnt&AriiiindmentorAuditingServiccsAgreement.doc
Exhibit "A'
ASSIGNMENT OF
AGREEMENT FOR FINANCIAL AUDITING SERVICES
STATE OF TEXAS §
§
COUNTY OF HARRIS §
This Assignment of Agreement for Financial Auditing Services (this "Assignment") is
made this 7^ day of "SuX y , 2008, by and among the City of Baytown, a
municipal corporation located in Harris and Chambers Counties, Texas (the "City"), Sandersen,
ICnox & Belt, LLP, a Texas limited liability partnership, (the "Assignor") and Belt Harris &
Associates, LLLP, a Texas limited liability limited partnership (the "Assignee").
WHEREAS, the Assignor entered into an Agreement for Financial
Auditing Services (hereinafter referred to as the "Agreement"), a copy of which
is attached hereto as Exhibit "A" and made a part hereof for all purposes, with
the City of Baytown for auditing services (hereinafter referred to as the
"Services"); and
WHEREAS, the Agreement states that the Assignor may not sell, assign,
or transfer any of its rights or obligatioas under the Agreement, in whole or in
part, without prior written consent of the City; and
WHEREAS, the Assignor desires to assign the Agreement to Belt Harris
& Associates, LLLP; and
WHEREAS, the Assignor desires to assume the obligations under the
Agreement; and
WHEREAS, the Assignor by executing the Assignment hereby
acknowledge that it understands and accepts the terms of the Agreement;
NOW, THEREFORE, in consideration of the foregoing and in consideration of the
mutual promises, covenants and agreements herein contained, which consideration is hereby
acknowledged and received as good and valuable consideration, and the parties agree hereto as
follows:
I.
Assignment and Assumption
The Assignor hereby assigns, and the Assignee hereby agrees that they understand and
accept the terms of the Agreement.
Subject to the conditions listed herein, the City hereby consents to the assignment of all
of Sandcrsen, Knox & Belt, L.L.P's rights and obligations under the Agreement to Belt Harris &
Associates, LLLP and the assumption of such rights and obligations by Belt Harris & Associates,
Assignment of Agreement for Financial Auditing Services. Page I
LLLP. It is expressly agreed that the consent given in this article is subject to the following terms
and conditions:
(a) The City shall have the authority to collect any amounts due and owing to the
City, which may have arisen prior to the effective date of this Assignment, from
Belt Harris & Associates, LLLP;
(b) The City shall have the authority to, and shall not be deemed to have waived the
right to, pursue and/or resolve any and all matters outstanding at the time of this
Assignment, including, but not limited to, any breach of contract concerns, with
Belt Harris & Associates, LLLP;
(c) The City shall have the authority to require strict compliance with any and all
terms of the Agreement;
(d) The Assignor shall assume all obligations and liabilities under the Agreement
accruing prior to and after the date of the effective date of this Assignment;
(e) The Assignor or any person or entity acting by, through, or on behalf of the
Assignor shall not contest the City's authority to impose these additional
conditions on the consent granted herein.
III.
No Expansion of Rights
Notwithstanding any language in the Agreement or this Assignment to the contrary, the
City's consent granted herein shall not be deemed to expand the rights and privileges specified in
the Agreement and originally granted to Sandersen, Knox & Belt, L.L.P.
IV.
Notice
All notices required to be given under this Assignment or the Agreement shall be given in
writing either by telecopier, overnight, or facsimile transmission, certified or registered mail at
the respective addresses designated hereinbelow or at such other address as may be designated in
writing by Belt Harris & Associates, LLLP or the City. Notice given by mail shall be deemed
given three (3) days after the date of mailing thereof to the following addresses:
BELT HARRIS & ASSOCIATES. LLLP
Belt Harris & Associates, LLLP
Attn: Robert Belt, CPA
730 North Post Oak Road, Suite 401
Houston, TX 77024
CITY
City of Baytown
Attn: City Manager
P.O. Box 424
Baytown, TX 77522
Assignment of Agreement for Financial Auditing Services. Page 2
V.
Further Assurances
The Assignor, the Assignee and the City shall execute such additional agreements as may
be reasonably necessary in the option of the City to reflect the foregoing assignment, assumption,
and consent among the parties hereto.
VI.
Scverahilitv
All parties agree that should any provision of this Assignment be determined to be invalid
or unenforceable, such determination shall not affect any other term of this Assignment or the
Agreement, which shall continue in full force and effect
VII.
Ambiguities
In the event of any ambiguity in any of the terms of this Assignment or the Agreement, it
shall not be construed for or against any party hereto on the basis that such party did or did not
author the same.
VIII.
Agreetrient Read
The parties acknowledge that they have read, understand and intend to be bound by the
terms and conditions of this Assignment.
IX.
Authority
The officers executing this Agreement on behalf of the parlies hereby represent that such
officers have full authority to execute this Agreement and to bind the party he/she represents.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
copies, each of which shall be deemed to be an original, but all of which shall constitute but one
and the same Assignment on the _2j day of t?u \ y , 2008, the date of
execution by the City Manager of Ihe City of Bayiown.
ASSIGNOR:
Sanderson, Knox & Bell, LLP
By:.
&<
(Printed Name)
(Title)
Assignment of Agreement for financial Auditing Services. Page 3
ASSIGNEE:
Belt Harris & Associates, LLLP
By:. (Zuru-
ATTEST:
KAYTHIE DARNELL
City Clerk
APPROVED AS TO FORM:
IGNACIO RAMIREZ, SR.
City Attorney
(Printed Name)
(Title)
CITY OF BAYTOWN:
By:
GARRISON C. BRUMBACK
City Manager
STATE OF TEXAS
COUNTY OF HARRIS §
Before me, the undersigned notary public, on this day personally appeared
\ ScW , the fA,u>^*>. Uj>, ■9a«-A--Hawof the Sanderscn, Knox &
Belt, LLP, in its capacity as Owner of the Properly, known to me to be the person whose name is
subscribed to the foregoing instrument and acknowledged to me that he executed the same for the
purposes and consideration therein expressed.
Assignment of Agreement for Financial Auditinii Services. Page 4
SUBSCRIBED AND SWORN before me this 2F{ day of Toly 2008.
HEAIHBR CARLSON
Notary Public, State of Texas
My Commission Expires
March 13.2011
Notary Public in and for the
State of Texas
STATE OF TEXAS
COUNTY OF HARRIS
Before me, the undersigned notary public, on this day personally appeared
the tvwnc^;^ ou.A^t.r of Bell Harris & Associates, JLLLP,
known to me to be the person whose name is subscribed to the foregoing instrument and
acknowledged to me that he executed the same for the purposes and consideration therein
expressed.
SUBSCRIBED AND SWORN before me Ibis _2i day of "jo \ i 2008.
*$?$'& HEAtHER CARLSON **jQv£?\ Notary Public. State of Texas y
My Commission Expires
March 13, 2011
Notary Public in and for the
Stale of Texas
Smices\A*sij.THn<:ni.!fe»c
Assignment pf Agreement for Financial Auditing Services. Page 5
Exhibit "A"
AGREEMENT FOR FINANCIAL AUDITING SERVICES
STATE OF TEXAS §
§
COUNTY OF HARRIS §
WHEREAS, on the _l_ day of ?uv%» , 2007, the City of Baytown, hereinafter
referred to as the "City," received the proposal from Sandersen, Knox & Belt, L.L.P., a Texas
corporation, hereinafter referred to as the "Auditor," for the performance of the audit of the general
purpose financial statements of the City of Baytown, Texas, and related entities, for the fiscal years
ending September 30,2007,2008, and 2009, hereinafter the "Agreement"; and
WHEREAS, based upon such proposal, the Auditor and the City desire to enter into an
agreement specifying the terms and conditions of such audits; and
NOW THEREFORE, for and in consideration of the foregoing premises and the mutual
covenants and agreements herein contained, the Parties hereto do hereby mutually agree as follows:
I.
Auditor's Obligations
The Auditor shall diligently perform all services specified in Exhibit "A," which is attached
hereto and incorporated herein for all intents and purposes. These services shall be for the fiscal
years ending September 30, 2007, 2008, and 2009, and are expressly subject to the contingency
specified in Article IX. It is expressly understood and agreed that should there be a conflict between
the terms contained in Exhibit "A" and those contained in this Agreement, the terms of this
Agreement shall control.
The Auditor and the City understand and agree that this Agreement includes an option to
renew for an additional three years after the expiration of this Agreement on terms and conditions
acceptable to the parties at the time of the renewal.
n.
Fees
The Auditor hereby commits to performing the financial auditing services required herein by
the City's Director of Finance at a fee not to exceed the amount stated below for each audit, based
upon the actual time spent at the Auditor's standard hourly rate, plus travel and other out-of-pocket
costs:
•Major Grant Programs, which ore generally programs in which over $300,000 is expended during
the fiscal year, are required to be tested as major programs. Auditor's fees are based on the number
of major programs. The number of programs is not known at this time, but three programs have been
listed for illustrative purposes.
Total $12,000 j $12,720 i $13,483 !
* * Includes basic preparation of report (MD&A and tronsmittal narrative to be provided by the City, as
well as specific data). Optional Continuing disclosure section not included.
The Auditor shall invoice the City each month as work progresses. The City shall, in turn,
pay the Auditor for its services actually performed within 30 days after receipt of an invoice or
receipt of services, whichever is later.
ffl.
Indemnity
THE AUDITOR AGREES TO AND SHALL INDEMNIFY, HOLD HARMLESS
AND DEFEND THE CITY, ITS OFFICERS, AGENTS AND EMPLOYEES
FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, DAMAGES,
CAUSES OF ACTION, SUITS, AND LIABILITY OF EVERY KIND,
INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, AND
ATTORNEYS1 FEES, FOR DAMAGE TO ANY PROPERTY, LOSS OF
REVENUE, OR ANY OTHER INJURIES OR DAMAGES ARISING OUT OF
OR IN CONNECTION WITH THE SERVICES PERFORMED BY THE
AUDITOR PURSUANT TO THIS AGREEMENT, THE CONDUCT OR
MANAGEMENT OF THE AUDITOR'S ACTIVITIES, OR FROM ANY ACT
OR OMISSION BY THE AUDITOR, ITS AGENTS, EMPLOYEES, OR
SUBCONTRACTORS, WHERE SUCH DAMAGES, LOSSES OR INJURIES
ARE CAUSED BY THE JOINT OR SOLE NEGLIGENCE OF THE AUDITOR.
IT IS THE EXPRESSED INTENTION OF THE PARTIES HERETO, BOTH
THE AUDITOR AND THE CITY, THAT THE INDEMNITY PROVIDED FOR
IN THIS PARAGRAPH IS INDEMNITY BY THE AUDITOR TO INDEMNIFY
Agreement for Financial Auditing. Services. Page 2
AND PROTECT THE CITY FROM THE CONSEQUENCES OF THE
AUDITOR'S SOLE OR JOINT NEGLIGENCE. FURTHERMORE, THE
INDEMNITY PROVIDED FOR IN THIS PARAGRAPH SHALL HAVE NO
APPLICATION TO THE CITY FOR ANY CLAIM, LOSS, DAMAGE, CAUSE
OF ACTION, SUIT AND LIABILITY WHERE THE INJURY, LOSS OR
DAMAGE RESULTS FROM THE SOLE NEGLIGENCE OF THE CITY,
UNMIXED WITH THE FAULT OF ANY OTHER PERSON OR ENTITY.
In the event that any action or proceeding is brought against the City by reason of any matter
from which the City is indemnified herein, the Auditor further agrees and covenants to defend the
action or proceeding by legal counsel acceptable to the City. This article shall survive the expiration
or termination of this Agreement.
IV.
Payment
The City shall pay the Auditor only for services actually performed and accepted. Such
payment shall be within thirty (30) days after the City's receipt of an invoice for such services or
upon receipt and acceptance of the services, whichever is later. Any payment terms provided for in
Exhibit "A" are superseded by this Article, regardless of any conflict.
V.
Release
By this Agreement, the City does not consent to litigation or suit, and the City hereby
expressly revokes any consent to litigation mat it may have granted by the terms of this Agreement
or any other contract or agreement, any charter, or applicable state law. Nothing herein shall be
construed so as to limit or waive the City's sovereign immunity. The Auditor assumes full
responsibility for its work performed hereunder and hereby releases, relinquishes and discharges the
City, its officers, agents, and employees from all claims, demands, and causes of action of every
kind and character, including the cost of defense thereof, for any injury to or death of any person
(whether they be either of the parries hereto, their employees, or other third parties) and any loss of
or damage to property (whether the property be that of either of the parties hereto, their employees,
or other third parties) mat is caused by or alleged to be caused by, arising out of, or in connection
with the Auditor's work to be performed hereunder. This release shall apply with respect to the
Auditor's work regardless of whether said claims, demands, and causes of action are covered in
whole or in part by insurance.
Agreement for Financial Auditing Services. Page 3
VI.
Insurance
Throughout the term of this Agreement, the Auditor at its own expense shall purchase,
maintain and keep in force and effect insurance against claims for injuries to or death of persons or
damages to property which may arise out of or result from the Auditor's services, whether such
services be by the Auditor, its agents, representatives, volunteers, employees or subcontractors or by
anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them
may be liable.
The Auditor's insurance coverage shall be primary insurance with respect to the City, its
officers, agents and employees. Any insurance or self-insurance maintained by the City, its officials,
agents and employees shall be considered in excess of the Auditor's insurance and shall not
contribute to it All coverage for subcontractors shall be subject to all of the requirements stated
herein.
The following insurance shall be required under this Agreement and shall meet or exceed the
minimum requirements set forth herein:
1. Commercial General Liability
■ General Aggregate: $1,000,000
■ Per Occurrence: $500,000
■ Coverage shall be at least as broad as ISO CG 00 01 10 93
■ No coverage shall be deleted from standard policy without notification of
individual exclusions being attached for review and acceptance.
2. Business Automobile Policy
■ This coverage shall be required only if the Auditor provides vehicles for its
employees.
■ Combined Single Limits: $1,000,000
■ Coverage for "Any Auto"
3. Errors and Omissions
■ Limit $1,000,000
■ Claims-made form is acceptable. Coverage will be in force for two years
after services are completed and accepted by the City
4. Workers' Compensation
■ Statutory Limits
■ Employer's Liability $500,000
■ Waiver of Subrogation required.
Prior to any services being performed, the Auditor shall file with the City valid Certificates
of Insurance and endorsements acceptable to the City. Such Certificates shall contain a
provision that coverage afforded under the policies will not be canceled, suspended, voided,
Agreement for Financial Auditing Services. Page 4
or reduced until at least thirty (30) days' prior written notice has been given to the City via
certified mail, return receipt requested.
The Auditor shall also file with the City valid Certificates of Insurance covering all
subcontractors.
The following are general requirements applicable to all policies:
> AM Best Rating of A-;VD or better.
> Insurance carriers licensed and admitted to do business in State of Texas will be
accepted
> Upon request of and without cost to City of Baytown, certified copies of all insurance
policies and/or certificates of insurance shall be furnished to City of Baytown's
representative. Certificates of insurance showing evidence of insurance coverage shall
be provided to City of Baytown's representative prior to any work being performed at
the site.
> Liability policies must be on occurrence form.
> Each insurance policy shall be endorsed to state that coverage shall not be suspended,
voided, canceled or reduced in coverage or in limits except after thirty (30) days' prior
written notice by certified mail, return receipt requested, has been given to the City.
> The City, its officers, agents and employees are to be added as Additional Insureds to all
liability policies.
> Upon request and without cost to the City, certified copies of all insurance polices and/or
certificates of insurance shall be furnished to the City.
> Upon request of and without cost to City of Baytown, loss runs (claims listing) of any
and/or all insurance coverage shall be furnished to City of Baytown's representative.
vn.
No Assignment
The Auditor shall not sell, assign, or transfer any of its rights or obligations under this
Contract, in whole or in part, without prior written consent of the City.
vra.
Termination
The City, besides all other rights or remedies it may have, shall have the right to terminate
this Agreement with or without cause upon ten (10) days' written notice from the City Manager to
the Auditor of the City's election to do so. Furthermore, the City may immediately terminate this
Agreement if the Auditor breaches the terms hereof. A breach of this Agreement shall include, but
not be limited to, the following:
1. failing to pay insurance premiums, claims or other charges;
Agreement for Financial Auditing Services. Page 5
2. failing to pay any payments due the City, State or Federal Government from the
Auditor or its principals, including, but not limited to, any taxes, fees, assessments,
liens, or any payments identified in this Agreement;
3. the institution of voluntary or involuntary bankruptcy proceeding against the
Auditor;
4. the dissolution of the Auditor;
5. the viol ation of any provision of this Agreement; and/or
6. the abandonment of the Agreement or any portion thereof and discontinuance of the
Auditor's services or any portion thereof, as determined by the City Manager.
Upon delivery of any notice of termination required herein, the Auditor shall discontinue all
services in connection with the performance of the Agreement. Within ten (10) days after receipt of
the notice of termination, the Auditor shall submit a final statement showing in detail the services
satisfactorily performed and accepted and all other appropriate documentation required herein for
payment of services.
K.
Contingency
It is expressly understood and agreed by both the Auditor and the City that this Agreement
for fiscal years 2008 and 2009 are contingent upon funds being appropriated by the City Council of
the City of Bay town for financial auditing services. Should funds not be appropriated, this
Agreement shall become null and void and both parties shall be relieved of any and all obligations
hereunder without liability to the other party or to any other person or entity, with the exception of
the liabilities assumed by the Auditor pursuant to Articles in and V hereof.
X.
Notice
Unless otherwise provided in this Contract, any notice provided for or permitted to be given
must be in writing and delivered in person or by depositing same in the Unites States mail, postpaid
and registered or certified, and addressed to the party to be notified, with return receipt requested, or
by delivering the same to an officer of such party. Notice deposited in the mail as described above
shall be conclusively deemed to be effective, unless otherwise stated in this Contract, from and after
the expiration of three (3) days after it is so deposited.
For the purpose of notice, the addresses of the parties shall be as follows unless properly
changed as provided for hereinbelow:
Agreement for Financial Auditing Services. Page 6
CITYOFBAYTOWN
Attn: City Manager
P.O. Box 424
Baytown, Texas 77522-0424
SANDERSEN, KNOX & BELT, L.L.P.
Attn: Robert Belt, CPA
730 N. Post Oak Road, Suite 202
Houston, TX 77024
Each party shall have the right from time to time at any time to change its respective address
and each shall have the right to specify a new address, provided that at least fifteen (15) days' written
nntina ic rviiron rtf cu*»ti notir oAAraee in tVia r»th»r narfu notice is given of such new address to the other party.
XL
Non-waiver
Failure of either party hereto to insist on the strict performance of any of the agreements
herein or to exercise any rights or remedies accruing thereunder upon default or failure of
performance shall not be considered a waiver of the right to insist on and to enforce by an
appropriate remedy, strict compliance with any other obligation hereunder to exercise any right or
remedy occurring as a result of any future default or failure of performance.
xn.
Choice of Law and Venue
This Agreement shall in all respects be interpreted and construed in accordance with and
governed by the laws of the State of Texas, regardless of the place of its execution or performance.
The place of making and the place of performance for all purposes shall be Baytown, Harris County,
Texas.
Xffl.
Severability
All parties agree that should any provision of this Agreement be determined to be invalid or
unenforceable, such determination shall not affect any other term of this Agreement, which shall
continue in full force and effect.
XIV.
No Third-Party Beneficiaries
This Agreement shall not bestow any rights upon any third party, but rather, shall bind and
benefit the Auditor and the City only.
Agreement for Financial Auditing Services. Poge 7
XV.
Entire Agreement
This Agreement contains all the agreements of the parties relating to the subject matter
hereof and is the full and final expression of the agreement between the parties.
XVI.
Ambiguity
In the event of any ambiguity in any of the terms of this Agreement, it shall not be constnied
for or against any party hereto on the basis that such party did or did not author the same.
xvn.
The officers executing this Agreement on behalf of the parties hereby represent that such
officers have full authority to execute this Agreement and to bind the party he represents.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
jies, each of which shall be deemed to be an original, but all of which shall constitute but one and
agreement, this \_ day of 1T\sv\«. , 2007.
ROBERT D. LEIPER, Interim Cfly Manager
LORRI COODY.XiW Clerk
APPROVED AS TO FORM:
NACIO RAMIREZ, SRT, Qity Attorney
SANDERSEN, KNOX & BELT, L.L.P.
ROBERT BELT, CPA
Partner
Agreement for Financial Auditing Services. Page 8
STATE OF TEXAS
COUNTY OF HARRIS
Before me on this day personally appeared Robert Belt, in his capacity as Partner of
Sandersen, Knox & Belt, L.L.P., on behalf of such corporation, known to me to be the person whose
name is subscribed to the foregoing instrument and acknowledged to me that he executed the same
for the purposes and consideration therein expressed.
SUBSCRIBED AND SWORN before me this __|_ day of ,2007.
HEATHER CARLSON
Notary PubHc, State of Texas
My Commission Expires
Mown 13. 2011
Notary Public in and for the State of Texas
R:\KarenTi!c»\Contrectt'Auditing Servicc^Sandencn Belt Knox Auditing Services Agrccmcnt2007-2OO9.doc
Agreement for Financial Auditing Services. Page 9
Exhibit "A"
The Auditor shall perform auditing and specified financial services to the City for the years
ending September 30, 2007, 2008, and 2009. The Auditor will audit the financial statements of
the governmental activities, the business-type activities, each major fund, component units and
the aggregate remaining fund information of the City as of and for the years ending September
30,2007,2008, and 2009, which collectively comprise the City's basic financial statements. The
Auditor will also audit separately issued financial statements for BAWA in conformity with
TCEQ reporting guidelines.
Also, the document the Auditor submits to the City will include the following additional
information that will be subjected to the auditing procedures applied in the Auditor's audit of the
financial statements:
1. Management's discussion and analysis; and
2. Schedule of expenditures of federal awards.
In accordance with Government Auditing Standards (revised), the City will be required to
review and approve those financial statements prior to their issuance and have a responsibility to
be in a position in fact and appearance to make an informed judgment on those financial
statements. Further, the City is required to designate a qualified management-level individual to
be responsible and accountable for overseeing the Auditor's services.
With regard to the electronic dissemination of audited financial statements, including financial
statements published electronically on the City's internet website, the City understands that
electronic sites are a means to distribute information and, therefore, the Auditor is not required to
read the information contained in these sites or to consider the consistency of other information
in the electronic site with the original document.
Audit Objectives
The objective of the Auditor's audit is the expression of an opinion as to whether the City's
financial statements are fairly presented, in all material respects, in conformity with U.S.
generally accepted accounting principles and to report on the fairness of the additional
information referred to in the first paragraph when considered in relation to the financial
statements taken as a whole. The objective also includes reporting on:
Internal control related to the financial statements and compliance with laws,
regulations, and the provisions of contracts or grant agreements, noncompliance,
which could have a material effect on the financial statements in accordance with
Government Auditing Standards.
Internal control related to major programs and an opinion {or disclaimer of
opinion) on compliance with laws, regulations, and the provisions of contracts or
grant agreements that could have a direct and material effect on each major
Exhibit "A." Page 1
program in accordance with the Single Audit Act Amendments of 1996 and OMB
Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations.
The reports on internal control and compliance will each include a statement that the report is
intended for the information and use of the audit committee, management, specific legislative or
regulatory bodies, federal awarding agencies, and if applicable, pass-through entities and is not
intended to be and should not be used by anyone other than these specified parties.
The Auditor's audit will be conducted in accordance with US. generally accepted auditing
standards: the standards for financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States: the Single Audit Act Amendments of 1996: and
the provisions of OMB Circular A-l 33, and will include tests of accounting records, a
determination of major programs) in accordance with Circular A-133, and other procedures the
Auditor consider necessary to enable it to express such an opinion and to render the required
reports. If the Auditor's opinion on the financial statements or the Single Audit compliance opinion is other than unqualified, we will fully discuss the reasons with the City in advance. If,
for any reason, the Auditor is unable to complete the audit or is unable to form or have not
formed an opinion, the Auditor may decline to express an opinion or to issue a report as a result
of this engagement.
City's Responsibilities
The City is responsible for establishing and maintaining internal control and/or compliance with
the provisions of applicable laws, regulations, contracts, agreements, and grants. In fulfilling this
responsibility, estimates and judgments by the City are required to assess the expected benefits
and related costs of the controls. The objectives of internal control are to provide the City with
reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized
use or disposition, that transactions are executed in accordance with the City's authorizations and
recorded properly to permit the preparation of financial statements in accordance with generally
accepted accounting principles, and that federal award programs are managed in compliance
with applicable laws and regulations and the provisions of contracts and grant agreements.
The City is responsible for making all financial records and related information available to the
Auditor. The Auditor understands that the City will provide it such information required for the
Auditor's audit and that the City is responsible for the accuracy and completeness of that
information. The Auditor will advise the City about appropriate accounting principles and their
application and will assist in the preparation of the City's financial statements, including the
schedule of expenditures of federal awards, but the responsibility for the financial statements
remains with the City. As part of the Auditor's engagement, the Auditor may propose standard,
adjusting, or correcting journal entries to the City's financial statements. The City is responsible
for reviewing the entries and understanding the nature of any proposed entries and the impact
they may have on the financial statements. That responsibility includes the establishment and
maintenance of adequate records and effective internal control over financial reporting and
compliance, the selection and application of accounting principles, and the safeguarding of
assets. The City is responsible for adjusting the financial statements to correct material
Exhibit *A." Page 2
misstatements and for confirming to the Auditor in the representation letter that the effects of any
uncorrected misstatements aggregated by the Auditor during the current engagement and
pertaining to the latest period presented are immaterial, both individually and in the aggregate, to
the financial statements taken as a whole.
The City is responsible for the design and implementation of programs and controls to prevent
and detect fraud, and for informing the Auditor about all known or suspected fraud affecting the
government involving (a) management, (b) employees who have significant roles in internal
control, and (c) others where the fraud could have a material effect on the financial statements.
The City is also responsible for informing the Auditor of the City's knowledge of any allegations
of fraud or suspected fraud affecting the government received in communications from
employees, former employees, grantors, regulators, or others. In addition, the City is
responsible for identifying and ensuring that the entity complies with applicable laws and
regulations. Additionally, as required by OMB Circular A-133, it is the City's responsibility to
follow up and take corrective action on reported audit findings and to prepare a summary
schedule of prior audit findings and a corrective action plan. The summary schedule of prior
audit findings should be available for the Auditor's review prior to the beginning of the
Auditor's audit Meldwork.
Audit Procedures—General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements; therefore, the Auditor's audit will involve judgment about the number
of transactions to be examined and the areas to be tested The Auditor will plan and perform the
audit to obtain reasonable rather than absolute assurance about whether the financial statements
are free of material misstatement, whether from errors, fraudulent financial reporting,
misappropriation of assets, or violations of laws or governmental regulations that are attributable
to the entity or to acts by management or employees acting on behalf of the entity. As required
by the Single Audit Act Amendments of 1996 and OMB Circular A-I33, the Auditor's audit will
include tests of transactions related to major federal award programs for compliance with
applicable laws and regulations and the provisions of contracts and grant agreements. Because an
audit is designed to provide reasonable, but not absolute assurance and because the Auditor will
not perform a detailed examination of all transactions, there is a risk that material misstatements
or noncompliance may exist and not be detected by the Auditor. In addition, an audit is not
designed to detect immaterial misstatements or violations of laws or governmental regulations
that do not have a direct and material effect on the financial statements or major programs.
However, the Auditor will inform the City of any material errors and any fraudulent financial
reporting or misappropriation of assets that comes to the Auditor's attention. The Auditor will
also inform the City of any violations of laws or governmental regulations that come to the
Auditor's attention, unless clearly inconsequential. The Auditor will include such matters in the
reports required for a Single Audit. The Auditor's responsibility as auditors is limited to the
period covered by the Auditor's audit and does not extend to matters that might arise during any
later periods for which the Auditor is not engaged as auditors.
Exhibit "A." Page 3
The Auditor's procedures will include tests of documentary evidence supporting the transactions
recorded in the accounts, and may include tests of the physical existence of inventories, and
direct confirmation of receivables and certain other assets and liabilities by correspondence with
selected individuals, creditors, and financial institutions. The Auditor will request written
representations from the City's attorneys as part of the engagement, and they may bill the City
for responding to this inquiry. At the conclusion of the Auditor's audit, the Auditor will also
require certain written representations from the City about the financial statements and related
matters.
Audit Procedures—Internal Controls
In planning and performing the Auditor's audit, the Auditor will consider the internal control
sufficient to plan the audit in order to determine the nature, timing, and extent of the Auditor's
auditing procedures for the purpose of expressing the Auditor's opinions on the City's financial
statements and on its compliance with requirements applicable to major programs.
The Auditor will obtain an understanding of the design of the relevant controls and whether they
have been placed in operation, and the Auditor will assess control risk. Tests of controls may be
performed to lest the effectiveness of certain controls that the Auditor considers relevant to
preventing and detecting errors and fraud that are material to the financial statement and to
preventing and detecting misstatements resulting from illegal acts and other noncompliance
matters that have a direct and material effect on the financial statements. Tests of controls
relative to the financial statements are required only if control risk is assessed below the
maximum level. The Auditor's tests, if performed, will be less in scope than would be necessary
to render an opinion on internal control and accordingly, no opinion will be expressed in the
Auditor's report on internal control issued pursuant to Government Auditing Standards.
As required by OMB Circular A-133, the Auditor will perform tests of controls to evaluate the
effectiveness of the design and operation of controls that the Auditor consider relevant to
preventing or detecting material noncompliance with compliance requirements applicable to each
major federal award program. However, the Auditor's tests will be less in scope than would be
necessary to render an opinion on those controls and, accordingly, no opinion will be expressed
in the Auditor's report on internal control issued pursuant to OMB Circular A-133.
An audit is not designed to provide assurance on internal control or to identify conditions.
However, the Auditor will inform the governing body or audit committee of any matters
involving internal control and its operation that the Auditor considers to be reportable conditions
under standards established by the American Institute of Certified Public Accountants.
Reportable conditions involve matters coming to the Auditor's attention relating to significant
deficiencies in the design or operation of the internal control that, in the Auditor's judgment,
could adversely affect the entity's ability to record, process, summarize, and report financial data
consistent with the assertions of management in the financial statements. The Auditor will also
inform the City of any non-reportable conditions or other matters involving internal control, if
any, as required by Government Auditing Standards and OMB Circular A-133.
Exhibit "A." Page 4
Audit Procedures—Compliance
The Auditor's audit will be conducted in accordance with the standards referred to in the section
titled Audit Objectives. As part of obtaining reasonable assurance about whether the financial
statements are free of material misstatement. The Auditor will perform tests of the City's
compliance with applicable laws and regulations and the provisions of contracts and agreements,
including grant agreements. However, the objective of those procedures will not be to provide an
opinion on overall compliance and the Auditor will not express such an opinion in the Auditor's
report on compliance issued pursuant to Government Auditing Standards.
OMB Circular A-133 requires that the Auditor also plan and perform the audit to obtain
reasonable assurance about whether the auditee has complied with applicable laws and
regulations and the provisions of contracts and grant agreements applicable to major programs.
The Auditor's procedures will consist of the applicable procedures described in the OMB
Circular A-133 Compliance Supplement for the types of compliance requirements that could
have a direct and material effect on each of the City's major programs. The purpose of those
procedures will be to express an opinion on the City's compliance with requirements applicable
to each of its major programs in the Auditor's report on compliance issued pursuant to OMB
Circular A-133.
Audit Administration, and Other Fees
The Auditor understand that the City's employees will prepare all cash, accounts receivable, or
other confirmations the Auditor requests and will locate any invoices selected by the Auditor for
testing. At the conclusion of the engagement, the Auditor will complete the appropriate sections
of and sign the Data Collection Form that summarizes the Auditor's audit findings. The Auditor
will provide copies of the Auditor's reports to the City: however, it is management's
responsibility to submit the reporting package (including financial statements, schedule of
expenditures of federal awards, summary schedule of prior audit findings, auditors' reports, and
a corrective action plan) along with the Data Collection Form to the designated federal
clearinghouse and, if appropriate, to pass-through entities. The Data Collection Form and the
reporting package must be submitted within the earlier of 30 days after receipt of the auditors'
reports or nine months after the end of the audit period, unless a longer period is agreed to in
advance by the cognizant or oversight agency for audits. At the conclusion of the engagement,
the Auditor will provide information to management as to where the reporting packages should
be submitted and the number to submit.
The audit documentation for this engagement is the property of Robert Belt, CPA and constitutes
confidential information. However, pursuant to authority given by law or regulation, the Auditor
may be requested to make certain audit documentation available to Oversight Agency for Audit
or its designee, a federal agency providing direct or indirect funding, or the U.S. General
Accounting Office for purposes of a quality review of the audit to resolve audit findings, or to
carry out oversight responsibilities. The Auditor will notify the City of any such request. If
requested, access to such audit documentation will be provided under the supervision of Robert
Belt, CPA. Furthermore, upon request, the Auditor may provide copies of selected audit
Exhibit "A." Page 5
documentation to the aforementioned parties. These parties may intend, or decide, to distribute
the copies or information contained therein to others, including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of three years after
the date the auditors1 report is issued or for any additional period required by law or requested by
the Oversight Agency. If the Auditor is aware that a federal awarding agency, pass-through
entity, or auditee is contesting an audit finding, the Auditor will contact the party(ies) contesting
the audit rinding for guidance prior to destroying the audit documentation.
Fees for the Auditor's services specified in the Agreement are based on the actual time spent at
the Auditor's standard hourly rules, plus travel and other out-of pocket costs such as report
production, typing, postage, etc. The Auditor's standard hourly rates vary according to the
degree of responsibility involved and the experience level of the personnel assigned to the City's
audit
Exhibit "A." Page 6
Exhibit "B"
FIRST AMENDMENT
TO THE
AGREEMENT FOR FINANCIAL AUDITING SERVICES
STATE OF TEXAS §
§
COUNTY OF HARRIS §
This First Amendment ("First Amendment") to that certain "Agreement for Financial
Auditing Services" between the City of Baytown (the "City") and Belt Harris & Associates,
LLLP, successor in interest to Sandersen, Knox & Belt, LLP (the "Auditor") dated
, 2008, is made by and between the parties on the date hereinafter last
specified.
WITNESSETH:
WHEREAS, the City and Auditor entered into an Agreement for Financial Auditing
Services on June 1, 2007 (the "Agreement"); and
WHEREAS, the City desires the Auditor to perform additional auditing services based
upon new standards issued by the AICPA Auditing Standards Board (ASB), Statement on
Auditing Standards (SAS) Nos. 104-111, commonly referred to as the "Risk Assessment
Standards"; and
WHEREAS, the requirements and guidance in SAS Nos. 104-111 will result in a
substantial change in audit procedures to be performed by Auditor; and
WHEREAS, Auditor desires to perform the work specified herein in accordance with the
terms and conditions contained in this First Amendment and the Agreement;
NOW THEREFORE, for and in consideration of the mutual covenants and agreements
herein contained, the parties hereto do hereby mutually agree as follows:
1. Definitions. Unless a different meaning clearly appears from the context, words and
phrases as used in this First Amendment shall have the same meanings as in the
Agreement.
2. Amendment.
2.01 Article I "Auditor's Obligations" of the Agreement is hereby amended to read as
follows:
First Amendment to the Agreement for Financial Auditing Services, Page 1
I.
Auditor's Obligations
The Auditor shall diligently perform all services specified in Exhibit "A,"
which is attached hereto and incorporated herein for all intents and purposes.
These services shall be for the fiscal years ending September 30, 2007, 2008, and
2009, and are expressly subject to the contingency specified in Article IX. It is
expressly understood and agreed that should there be a conflict between the terms
contained in Exhibit "A" and those contained in this Agreement, the terms of this
Agreement shall control.
The Auditor and the City understand and agree that this Agreement
includes an option to renew for an additional three years after the expiration of
this Agreement on terms and conditions acceptable to the parties at the time of the
renewal.
For the years ending September 30, 2008 and thereafter if the agreement
is renewed, the Auditor shall expand its services to include the application of the
new standards issued by the AICPA Auditing Standards Board (ASB), Statement
on Auditing Standards (SAS) Nos. 104-111, commonly referred to as the Risk
Assessment Standards, which
> expand the quality and depth of the auditor's required understanding of the
entity and its environment, including its internal control;
> requires the auditor to assess the risks of material misstatements at the
financial statement level and at the assertion level on all audits based on
the understanding obtained;
> eliminates the "default to maximum" for control risk, which should
encourage testing of controls;
> emphasizes importance of the entity's risk assessment process;
> strengthens the linkage between assessed risks and the auditor's responses
to those risks;
> clarifies the auditor's ability to rely on audit evidence gathered in prior
audits;
> strengthens guidance for testing disclosures;
> clarifies and expands guidance on evaluating audit findings; and
> expands documentation requirements.
2.02 Article II "Fees" of the Agreement is hereby amended to read as follows:
First Amendment to the Agreement for Financial Auditing Services, Page 2
II.
Fees
The Auditor hereby commits to performing the financial auditing services
required herein by the City's Director of Finance at a fee not to exceed the
amount stated below for each audit, based upon the actual time spent at the
Auditor's standard hourly rate, plus travel and other out-of-pocket costs:
Base Services 2007 2008 2009
Financial Audit (9/30) $ 40,459 I $ 61,551 j $ 45,460
Single Audit (Base) (9/30)
Single Audit -Major Program 1 (9/30) j
Single Audit -Major Program 2* (9/30) ( 4j85j
Single Audit -Major Program 3* (9/30) |
2,524
BAWA (9/30) 6,221
Six-month Audit (Agreed upon Procedures)
J3/31J
*Major Grant Programs, which are generally programs in which over $300,000 is
expended during the fiscal year, are required to be tested as major programs. Auditor's
fees are based on the number of major programs. The number of programs is not
known at this time, but three programs have been listed for illustrative purposes.
3.
**Includes basic preparation of report (MD&A and transmittal narrative to be provided
by the City, as well as specific data). Optional continuing disclosure section not
included.
The Auditor shall invoice the City each month as work progresses. The
City shall, in turn, pay the Auditor for its services actually performed within 30
days after receipt of an invoice or receipt of services, whichever is later.
Entire Agreement. The provisions of this First Amendment and the provisions of the
Agreement should be read together and construed as one agreement provided that, in the
event of any conflict or inconsistency between the provisions of this First Amendment
and the provisions of the Agreement, the provisions of this First Amendment shall
control. Nothing contained in this First Amendment shall be construed in any way to
limit or to waive the City's sovereign immunity.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment in
multiple copies, each of which shall be deemed to be an original, but all of which shall constitute
First Amendment to the Agreement for Financial Auditing Services.. Page 3
but one and the same amendment, this
date of execution by the City Manager.
day of , 2008, the
ATTEST:
KAYTHIE DARNELL
City Clerk
APPROVED AS TO FORM:
CITY OF BAYTOWN:
By:.
GARRISON C. BRUMBACK
City Manager
IGNACIO RAMIREZ, SR.
City Attorney
ASSIGNEE:
Belt Harris & Associates, LLLP
By:
(Printed Name)
STATE OF TEXAS
COUNTY OF HARRIS
(Title)
Before me, the undersigned notary public, on this day personally appeared
the of Belt Harris & Associates, LLLP, known to
me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that
he executed the same for the purposes and consideration therein expressed.
SUBSCRIBED AND SWORN before me this day of 2008.
Notary Public in and for the State of Texas
Wcobsrv 1 \Legal\Karen\Files\Contracts\Auditing Scrvices\FlRST AMENDMENT.doc
First Amendment to the Agreement for Financial Auditing Services.. Page 4
Y
ASSIGNMENT OF
AGREEMENT FOR FINANCIAL AUDITING SERVICES
STATE OF TEXAS §
COUNTY OF HARRIS §
This Assignment of Agreement for Financial Auditing Services (this "Assignment") is
made this I% day of 5v‘y , 2008, by and among the City of Baytown, a
municipal corporation located in Harris and Chambers Counties, Texas (the "City"), Sandersen,
Knox & Belt, LLP, a Texas limited liability partnership, (the "Assignor") and Belt Harris &
Associates,LLLP,a Texas limited liability limited partnership(the"Assignee").
WHEREAS, the Assignor entered into an Agreement for Financial
Auditing Services (hereinafter referred to as the "Agreement"), a copy of which
is attached hereto as Exhibit "A" and made a part hereof for all purposes, with
the City of Baytown for auditing services (hereinafter referred to as the
"Services");and
WHEREAS,the Agreement states that the Assignor may not sell,assign,
or transfer any of its rights or obligations under the Agreement, in whole or in
part,without prior written consent of the City;and
WHEREAS, the Assignor desires to assign the Agreement to Belt Harris
&Associates,LLLP;and
WHEREAS, the Assignor desires to assume the obligations under the
Agreement;and
WHEREAS, the Assignor by executing the Assignment hereby
acknowledge that it understands and accepts the terms of the Agreement;
NOW, THEREFORE, in consideration of the foregoing and in consideration of the
mutual promises, covenants and agreements herein contained, which consideration is hereby
acknowledged and received as good and valuable consideration, and the parties agree hereto as
follows:
I.
Assignment and Assumption
The Assignor hereby assigns, and the Assignee hereby agrees that they understand and
accept the terms of the Agreement.
II.
Consent
Subject to the conditions listed herein, the City hereby consents to the assignment of all
of Sandersen, Knox&Belt, L.L.P's rights and obligations under the Agreement to Belt Harris&
Associates,LLLP and the assumption of such rights and obligations by Belt Harris&Associates,
Assignment of Agreement for Financial Auditing Services,Page 1
LLLP. It is expressly agreed that the consent given in this article is subject to the following terms
and conditions:
(a) The City shall have the authority to collect any amounts due and owing to the
City, which may have arisen prior to the effective date of this Assignment, from
Belt Harris&Associates,LLLP;
(b) The City shall have the authority to, and shall not be deemed to have waived the
right to,pursue and/or resolve any and all matters outstanding at the time of this
Assignment, including, but not limited to, any breach of contract concerns, with
Belt Harris&Associates,LLLP;
(c) The City shall have the authority to require strict compliance with any and all
terms of the Agreement;
(d) The Assignor shall assume all obligations and liabilities under the Agreement
accruing prior to and after the date of the effective date of this Assignment;
(e) The Assignor or any person or entity acting by, through, or on behalf of the
Assignor shall not contest the City's authority to impose these additional
conditions on the consent granted herein.
III.
No Expansion of Rights
Notwithstanding any language in the Agreement or this Assignment to the contrary, the
City's consent granted herein shall not be deemed to expand the rights and privileges specified in
the Agreement and originally granted to Sandersen,Knox&Belt,L.L.P.
IV.
Notice
All notices required to be given under this Assignment or the Agreement shall be given in
writing either by telecopier, overnight, or facsimile transmission, certified or registered mail at
the respective addresses designated hereinbelow or at such other address as may be designated in
writing by Belt Harris & Associates, LLLP or the City. Notice given by mail shall be deemed
given three(3)days after the date of mailing thereof to the following addresses:
BELT HARRIS &ASSOCIATES.LLLP
Belt Harris&Associates,LLLP
Attn: Robert Belt,CPA
730 North Post Oak Road,Suite 401
Houston,TX 77024
CITY
City of Baytown
Attn: City Manager
P.O.Box 424
Baytown,TX 77522
Assignment of Agreement for Financial Auditing Services,Page 2
I
•
V.
Further Assurances
The Assignor,the Assignee and the City shall execute such additional agreements as may
be reasonably necessary in the option of the City to reflect the foregoing assignment,assumption,
and consent among the parties hereto.
VI.
Severability
All parties agree that should any provision of this Assignment be determined to be invalid
or unenforceable, such determination shall not affect any other term of this Assignment or the
Agreement,which shall continue in full force and effect
VII.
Ambiguities
In the event of any ambiguity in any of the terms of this Assignment or the Agreement, it
shall not be construed for or against any party hereto on the basis that such party did or did not
author the same.
VIII.
Agreement Read
The parties acknowledge that they have read,understand and intend to be bound by the
terms and conditions of this Assignment.
IX.
Authority
The officers executing this Agreement on behalf of the parties hereby represent that such
officers have full authority to execute this Agreement and to bind the party he/she represents.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
copies, each of which shall be deemed to be an original,but all of which shall constitute but one
and the same Assignment on the 21 day of J v \y , 2008, the date of
execution by the City Manager of the City of Baytown.
ASSIGNOR:
Sandersen,Knox&Belt,LLP
By: / 2rti— 134
Rob+--4- Bc
(Printed Name)
N1c4,443;v1.3 pc.,4 ►e r _ ‘-boos oT ce.
(Title)
Assignment of Agreement for Financial Auditing Services,Page 3
1
ASSIGNEE:
Belt Harris&Associates,LLLP�
By: C '3C.., f
9.o‘jcr-I ( t\*
(Printed Name)
(Title)
CITY OF AYT
By:
SON C UMBACK
4 ,,. -�.,,k4 City Man r
•T EST: .,- i,,,, I ii j
.t& i I .,,,-ty
KAY Aft DARNELL '4 :' ` . �s
City -- �\ \''''" -„,..,,,,-,./ /
APPROVED AS TO FORM: 44 li '
a• -'ar-4...epke..-e-4- S-54
A ‘NACIO RAMIREZ, SR.
City Attorney
STATE OF TEXAS §
§
COUNTY OF HARRIS §
Before me, the undersigned notary public, on this day personally appeared
(ZD beg-k St k'e , the PA,to."*S:•� Pc.1 l•— He.of the Sandersen, Knox &
Belt, LLP, in its capacity as Owner of the Property,known to me to be the person whose name is
subscribed to the foregoing instrument and acknowledged to me that he executed the same for the
purposes and consideration therein expressed.
Assignment of Agreement for Financial Auditing Services,Page 4
1
SUBSCRIBED AND SWORN before me this 2q day of :To'L y� 2008.
,o�.• ,�.,,, HEATHER CARLSON ,
_'.' Notary Public,State of Texas Notary Public in and for the
My Commission Expires
'%;4ii'i:��'�` March 13, 2011 State of Texas
.
STATE OF TEXAS § '
§
COUNTY OF HARRIS §
Before me, the undersigned notary public, on this day personally appeared
Robe4"r Se‘'r the cheeks:„� pc...h...c.r of Belt Harris & Associates, LLLP,
known to me to be the person whose name is subscribed to the foregoing instrument and
acknowledged to me that he executed the same for the purposes and consideration therein
expressed.
SUBSCRIBED AND SWORN before me this 25 day of j v 1 y 2008.
Notary Public in and for the
,..;...rF;";:,,, HEATHER CARLSON State of Texas
+"•'' Notary Public,State of Texas
s :,c My Commission Expires
.;/ir,;:�'` March 13, 2011
1 _
\\cobsrvl\Legal\Karen\Files\Contracts\Auditing Services\Assignment.doc
Assignment of Agreement for Financial Auditing Services,Page 5