Ordinance No. 11,148ORDINANCE NO. 11,148
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AUTHORIZING PAYMENT FOR FINANCIAL AUDITING SERVICES TO BELT
HARRIS & ASSOCIATES. LLLP, IN AN AMOUNT NOT TO EXCEED ONE
HUNDRED ONE THOUSAND SIX HUNDRED EIGHTY -NINE AND NO /100
DOLLARS ($101,689.00) PURSUANT TO THE FIRST AMENDMENT TO THE
AGREEMENT FOR FINANCIAL AUDITING SERVICES WITH BELT HARRIS &
ASSOCIATES. LLLP; 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 Baytown authorizes payment to Belt Harris
& Associates. LLLP, in an amount not to exceed ONE HUNDRED ONE THOUSAND SIX HUNDRED
EIGHTY -NINE AND NO /100 DOLLARS ($101.689.00) in accordance with the First Amendment to the
Agreement for Financial Auditing Services.
Section 2: 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 1 hereof may not be increased by more than twenty -five
percent (25 %).
Section 3: This ordinance shall take effect immediately frorn and after its passage by the
City Council of the City of Baytown. le7
INTRODUCED. READ, and PASSED by the affirmative v:�11 the City Council of the City of
Baytown this the 9`t' day of July, 2009.
11. DONCARI_,OS.
ATTES T:
Ail
LETICIA GA A. InterUn City Clerk
.APPROVED AS TO FORM:
NACIO RAMIREZ. SR., i Attorney
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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
AoS osh 12 , 2008, is made by and between the parties on the date hereinafter last
speciYed.
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
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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
f *,
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) 1 $ 40,459 $ 61,551 ( $ 45,460
Single Audit(Base)(9/30) 2,439 2,586 2,741
Single Audit-Major Program 1 (9/30) j 4,851 5,142 5,451
Single Audit-Major Program 2*(9/30) ( 4,851 I 5,142 5,451
Single Audit-Major Program 3*(9/30) ! 4,851 5,142 5,451
MDD(9/30) } 2,524 I 3,841 2,836
BAWA(9/30) 6,221 9,464 6,989
Six-month Audit (Agreed upon Procedures) 7,455 7,902 8,376
(3/31)
Total $ 73,651 $ 100,770 $ 82,755,j
*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.
Optional Services 2007 2008 2009
Preparation of City's CAFR**___._.___.....____..._I___ 8,000 8,480 ] 8,989
Preparation of BAWA's AFR 4,000 4,240 4,494 I
--__-_- Totals s..: $12,000 $12,720I $13,483 1
**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.
3. 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
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but one and the same amendment, this ►2 day of A 05 5+ . 2008, the
date of execution by the City Manager.
CITY OF B O
By:
GARRI . BRUMBACK
anager
A ST:
"ffie
KA E DARNELL "t rtnd A +
Ci Cl rk yre r
rl _, .,y
APPROVED AS TO FORM: '�!s
GI ACID RAMIREZ,SR. (
City Attorney
ASSIGNEE:
Belt Harrigrt-i—
&Associates,[ LLLP
By: /3,c
IZ.o 5 C2-T
(Printed Name)
(Title)
STATE OF TEXAS §
COUNTY OF HARRIS §
Before me, the undersigned notary public, on this day personally appeared
?o€ tar az.LT the ;�S Q of Belt Harris&Associates,LLLP,known to
me to be the person whose name is sued 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 12 day of A�q 2008.
• "`''r'►o"% HEATHER CARLSON
=• Notary Public,State of Texas Notary Public in and for the State of Texas
ikei
; My Commission Expires'
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