HomeMy WebLinkAboutPR 11963:EDC COMPLIANCE AUDIT Memorandum
City of Port Arthur, Texas
Finance Department
To~
From:
Date:
Subject:
Steve Fitzgibbons, C~~
Rebecca Underhill, ~f~inance
September 27,2002
Proposed Resolution 11963
Presented for Council consideration and approval is Proposed Resolution 11963. This resolution
authorizes the City Attorney, City Manager, and Director of Finance to negotiate an amendment to
the contract with Gayle W. Botley and Associates as to include a compliance audit of the EDC
operation.
The City Council engaged the firm Gayle W. Botley and Associates as the independent financial
auditor for the City of Port Arthur for the fiscal year ended September 30, 2002. (Resolution 02-
162, May 28, 2002) On September 27, 2002, the City received certain recommendations from Mr.
Botley concerning the activities of the Port Arthur Economic Development Corporation. These
recommendations are for a compliance audit of the EDC's past and current practices and procedures,
including the eligibility of companies to receive grants, the awarding of grants by the EDC and the
monitoring of these grants.
This resolution would allow city staffto negotiate an amendment to the current contract to allow the
auditor to expand his scope to include the recommended compliance work. The City Council will be
asked to approve the amendment at a future meeting.
P. R. NO. 11963
09/27/02 jb
RESOLUTION NO.
A RESOLUTION AUTHORIZIN~ THE CITY ATTOP-N~M,
CITY MANAGER, AND THE DIRECTOR OF FINANCE
TO NEGOTIATE AN AMENDMENT TO THE CONTRACT
WITH ~AYLE W. BOTLEY & ASSOCIATES AS TO
INCLUDE A COMPLIANCE AUDIT OF THE EDC
OPERATIONS.
WHEREAS, Gayle W. Botley & Associates were hired as the
auditor for the City per Resolution No. 02-162 (May 28, 2002);
and
WHEREAS, On September 27, 2002,
recommendation for a compliance audit of
Gayle W. Botley & Associates; and
WHEREAS, this recommendation includes a compliance audit
that will include a review of the EDC's past and current
practices and procedures. This includes eligibility to
receive grants, awarding of grants and monitoring of grants.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR, TEXAS:
Section 1. That the facts and opinions in the preamble
are true and correct.
Section 2. That the City Attorney, the City Manager
and the Director of Finance are herein authorized to negotiate
an amendment to the contract with Gayle W. Botley and
the City received a
the EDC operations by
Associates for a compliance audit of the EDC operations and
bring the proposed contract to the City Council for
consideration~
Section 3.
the Economic
compliance of
That since this involves the operations of
Development Corporation and the contractual
EDC grant recipients, the City Council expects
and recommends that the Section 4A Economic Development
Corporation either pay for the audit or promptly reimburse the
City for the costs thereof. Also,
the EDC grant contracts, the grant
to immediately reimburse
for any costs disallowed
pursuant to the terms of
recipients will be liable
the Economic Development Corporation
pursuant to the compliance audit.
Section 4. That a copy of the caption of this
resolution be spread upon the Minutes of the City Council.
READ, ADOPTED AND APPROVED on this day of
, A.D., 2002, at a Regular Meeting of the
Council of the City of Port Arthur, Texas, by the
vote: AYES: Mayor ,
Councilmembers ,
City
following
NOES:
ATTEST:
MAYOR
CITY SECRETARY
APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
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