Loading...
HomeMy WebLinkAboutPR 19523: CONTRACT WITH WAYNE OUTLAW, CPA FOR THE PROVISION OF ACCOUNTING SERVICES City of Port Arthur Memorandum To: Brian McDougal, City Manager From: Jerry W. Dale, Director of Finance dam' Date: September 8, 2016 Re: PR 19523 I recommend that the City Council adopt Proposed Resolution 19523 which authorizes a contract between the City of Port Arthur and Wayne Outlaw for the provision of Accounting services for the Finance Department account no. 001-1032-515.54-00. \ / .,=; City of , 40 40 ort 41 r t le rz— - Texo INTEROFFICE MEMORANDUM Office of the Finance Department Date: September 20, 2016 To: Brian McDougal, City Manager From: Jerry W. Dale, Interim Finance Director RE: Utilization of Wayne Outlaw's Education, Training and Experience in the Finance/Accounting Department in Functions Not Presently Being Executed As we have discussed, there are functions within the Finance/Accounting Department that are critical to an effective system of internal control, which are presently not being met and have not been met for some time. We were fortunate to learn of the interest of a seasoned professional with 22 years of financial management experience—beginning his career with KPMG Peat Marwick, one of the original "Big Six" international CPA firms, who is retired and has an interest in working with the City of Port Arthur in the capacity of an independent contractor for 40 hours per week. You have requested that I prepare a memo detailing the functions that he would be involved in and the approximate date of completion. Some of the assignments are somewhat one-time events; however, many are ongoing and are not being addressed due to a lack of staff in terms of number, education, training and/orexperience as well as the single- minded focus of the more senior staff members on"catching up" and"digging out". Some of the functions include,but are not limited to the following: Cash Bank reconciliations have not been reconciled on a monthly basis for at least 2+ years. Reconciliations were prepared at yearend, which is not adequate and places the City at an unreasonable risk. This issue is addressed in the independent auditor's Letter to Management on Internal Control. Adequacy of collateral pledged by the City's bank depository is not being confirmed monthly, including its independent valuation. Implementation of Consolidated Cash has not been fully utilized, which results in the amount shown on the monthly Balance Sheet and possibly Revenue Report and Expenditure Report of Page 1 of 4 each fund not being correct. Presently it is being corrected at yearend—which means that if interim financial statements were being prepared, the Balance Sheet and possibly the other two reports could not be relied upon for accuracy. Cash Flow Projections have not been prepared in order to determine the amount of idle cash available for investment is not known. Obviously, without this the City cannot have an effective investment program. Bank Depository Agreement has not been fully and completely reviewed in order; • monitor compliance, • advise prior to the option date to extend, • evaluate the availability and utilization of technology, • prepare RFPs when needed and appropriate (currently a consultant is used), • prepare resolutions, when needed and appropriate to select or extend Investments Establish Systematic Procedures to manage investments Execute Trades Design and Prepare Quarterly Investment Reports. State law requires this and it appears that this has not been done for some time. Evaluate the Tracker Software for this purpose. Annual Review and Selection of Broker/Dealers, including Representation Letters. Confirm Investment Holdings with 3`d Party Collateral Agent monthly. Value the Investment Portfolio Independently monthly. Seek Opportunities to Increase Yield Prepare the Annual Review of the Investment Policy, updating if needed as a result of new state legislation, etc. Debt Management Arbitrage Continuing Disclosure Texas Municipal Reports file at the Municipal Advisory Council Page 2 of 4 This is not intended to be an all-inclusive list, nor could anyone expect any one person to single- handedly execute all that is presented. It is however the functions that Wayne appears qualified to undertake and could be an important part of the team in restructuring the Finance/Department to the level of effectiveness and efficiency that is needed. Please let me know of any questions and/or comments you may have. Thank you for your support. Page 4 of 4 Assist with Debt Issuances Prepare and/or Review the Debt Service Fund Budget Capital Assets Update the Capital Assets Subsidiary monthly, agreeing it to the General Ledger Control. This issue is addressed in the independent auditor's Letter to Management on Internal Control. It is currently being performed by an outside consultant at yearend, creating a bottleneck in completing the audit process and preparation of the CAFR. Budget Provide Assistance During Annual Budget Process, incl Revenue Projections Truth n Taxation • Certified Values—Calculation of Effective and Rollback Rates • Appraisal Roll • Budget • Tax Roll Management of Industrial District Agreements Review IDAs Assist in Preparation of Current Year Calculations of IDA Revenue Confirmation of Property Accts and Related Values at Jefferson County Appraisal District Agreement with Capital Appraisal's (Consultants) Report Using Dr. Stanton, Statistician's% Assigned to "Tax Levy" Monthly Financial Statements Assist in Initiating Monthly Financial Statements. Page 3 of 4 L. Wayne Outlaw wayneo46@msn.com«11 Knotty Pine Ln, Orange,TX 77630*(409) 988-9166 Summary Highly motivated, efficient CPA with 3 years Big 6 Accounting Firm audit experience and 19 years of accounting and auditing experience in the financial industry. Extensive experience using Microsoft Office for the creation and maintenance of business financial records and the subsidiary details of those records. Education University of Texas, Austin, TX Graduate School of Community Banks Lamar University, Beaumont, TX BBA in Accounting USAF Electronics Training School West Orange High.School, Orange, TX Experience LCMCISD/BUNA.ISD I Orange, TX High School Math Teacher Responsible for student mastery of all math concepts in Algebra II and Geometry for passing Texas Assessment of Knowledge and Skills (TAKS) testing Technical Resource I Sentari Technologies I Orange, TX Vice President/ Controller Responsible for development and control of all accounting and audit systems. Helped grow the company from one office with$1 million revenue to seven offices with$15 million revenue. Orange Savings and Loan Association I Orange, TX Executive Vice President/ CFO L. Wayne Outlaw ... TSCPA References Available upon request L. Wayne Outlaw Member of all operating committees;responsible for all accounting and financial reporting. Managed security, operations,personnel,payroll and regulatory compliance.Planned and coordinated all internal audit activities. Participated in review and assessment of monthly performance of association in relation to stated goals. Participated in development of all plans to achieve short and long term goals. First Federal Savings and Loan I Amarillo, TX Vice President/ Controller Complete financial and accounting responsibility in a$350 million Association including external and regulatory audits. Took part in restructuring balance sheet into a viable S&L. Mutual Savings Association l El Paso, TX Vice President/ Controller/ Treasurer Complete financial and accounting responsibility including external and regulatory audits. Responsible for investment portfolio. Coordinated with the Board and Sr.management on long term planning and goals. Harris County Federal Savings and Loan I Baytown, TX Vice President Responsible for retail banking and development of a department for the newly expanding IRA market. Supervised proper training of personnel in savings department. KPMG Peat Marwick I Houston, TX Senior Auditor Complete responsibility for audit and completion of audit opinion and financial statements of clients ranging from$15 million S&L to a$750 million bank.Also kept abreast of AICPA pronouncements and industry requirements for various clients. Military: I United States Air Force (Honorable Discharge) Flight Facilities Equipment Repairman Installed and maintained ground electronic equipment used in flight facilities navigation. Past Affiliations Orange District BSA (Past President) Orange Salvation Army Board (Past President) Orange Rotary Club (Past BOD member) AICPA P.R. No. 19523 09/08/2016 JNP RESOLUTION NO. A RESOLUTION AUTHORIZING THE EXECUTION OF A CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND WAYNE OUTLAW, CPA FOR THE PROVISION OF ACCOUNTING SERVICES FOR THE FINANCE DEPARTMENT WITH A BUDGETARY IMPACT OF $72,800.00; FUNDING AVAILABLE IN THE FINANCE DEPARTMENT'S PROFESSIONAL SERVICE ACCOUNT NO. 001-1032-515.54-00. WHEREAS,the City of Port Arthur Accounting Division is in need of professional assistance at this time; and WHEREAS, the Finance Department wishes to contract with a Certified Public Accountant to provide accounting services; and WHEREAS, Wayne Outlaw is an Accountant and has agreed to provide professional services at a rate of$35.00 per hour. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1: That the City Manager is hereby authorized to execute said Contract, a copy of which being attached hereto as Exhibit"A". Section 2: That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ,ADOPTED,AND APPROVED,this day of September, 2016,A.D., at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Council members: NOES: Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: /0:te Val Tizeno, Ci Attorney APPROVED FOR ADMINISTRATION: Brian McDougal, City Manager APPROVED AS TO AVAILABILITY OF FUNDS: (41 Jerry W. Dale, Director of Finance EXHIBIT "A" AGREEMENT FOR INDEPENDENT PROFESSIONAL SERVICES This agreement is made between the City of Port Arthur, Texas hereinafter referred to as"City" and Wayne Outlaw. I. TERM OF AGREEMENT This Agreement shall be for a one year period from the date stated in the notice to proceed. Thereafter, this Agreement shall be renewable at the discretion of the parties. II. PROFESSIONAL SERVICES Mr. Wayne Outlaw, will be considered an independent contractor for the City of Port Arthur and shall provide accounting services for the City's Finance Department. Such services shall be at the standard of care/knowledge expected of accountants in Texas. III. COMPENSATION Mr. Wayne Outlaw shall be paid Thirty-Five ($35) per hour for accounting services actually rendered. The hours of work shall be mutually agreed upon by the Finance Director of the City of Port Arthur and Mr. Wayne Outlaw. IV. BENEFITS All benefits result from this contract are delineated herein, and no other benefits promise by any City office shall be binding on the City. V. TERMINATION This Agreement can be terminated with fourteen(14) days prior written notice by either party. SIGNED AND AGREED TO on the day of September, 2016. CONTRACTOR Witness Wayne Outlaw SIGNED AND AGREED TO on the day of September, 2016. CITY OF PORT ARTHUR Brian McDougal, City Manager Witness