Loading...
HomeMy WebLinkAboutPR 21565: APPROVAL OF AMENDMENT TO CONTRACT FOR AUDIT SERVICES 4 ,..... City of = Aii www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: 9/8/2020 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Kandy Daniel, Interim Director of Finance RE: PR No. 21565-Approval of amendment to Contract for Audit Services Introduction: The intent of this Agenda Item is to request approval for the City Manager to amend resolution 20-150 for the audit services contract with Weaver and Tidwell, LLP, for an amount not to exceed $22,500 and a total contract amount not to exceed $177,000 in order to complete the FY2019 audit. Background: On October 22, 2019,the City Council approved resolution 19-475 which authorized the City Manager to execute an engagement letter between the City of Port Arthur and Weaver and Tidwell, LLP, for an independent audit of all accounts of the City and the Port Arthur Economic Development Corporation for fiscal year ending September 30, 2019. The original contract was estimated to take 730 hours and a cost of$132,000. City Council approved resolution number 20-150 on May 12, 2020 to increase the contract by$22,500 (125 hours) for a total contract not to exceed $154,500. Based on remaining open items, Weaver now estimates that an additional 115 — 125 hours will be required to complete the 2019 audit engagement which will increase the cost by$20,700 - $22,500, bringing the total contract to an amount not to exceed$177,000. Budget Impact: Funds are available in Finance Department account#001-1031-515.54-00. Recommendation: The attached proposed resolution No. 21565 authorizes the City Manager to amend resolution 20-150 for the audit services contract with Weaver and Tidwell, LLP, for an amount not to exceed $22,500 and a total contract amount not to exceed $177,000 in order to complete the FY2019 audit. We recommend that the City Council approve it as presented. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 weave r Assurance•Tax•Advisory City of Port Arthur,Texas Finance Dept.—Kandy Daniel P.O. Box 1089 Port Arthur,TX 77641 P.O.#219248 Change Order#2 Based on the remaining open items we estimate an additional 115—125 hours will be required to complete the 2019 audit engagement. These additional hours will result in an increase of our original fee proposal by$20,700-$22,500. Original Fee Proposal Hours: 730 Fee: $132,000 Change Order#1 Additional Hours: 115—125 Additional Fees: $20,700- $22,500 Change Order#2 Additional Hours: 115—125 Additional Fees: $20,700-$22,500 Contract Activity Through August 31, 2020 Hours Incurred to Date: 855 Billed to Date: $154,500 Weaver and Tidwell, L.L.P. 1406 Wilson Road, Suite 100 Conroe, Texas 77304 Main: 936.756.8127 CPAs AND ADVISORS WEAVER.COM P. R. NO. 21565 KD: 9/8/2020 RESOLUTION NO. A RESOLUTION AUTHORIZING AN AMENDMENT TO RESOLUTION 20-150 FOR THE AUDIT SERVICES CONTRACT WITH WEAVER AND TIDWELL, LLP, FOR AN AMOUNT NOT TO EXCEED $22,500 AND A TOTAL CONTRACT AMOUNT OF $177,000. FUNDING IS AVAILABLE IN THE FINANCE DEPARTMENT PROFESSIONAL SERVICES ACCOUNT#001-1031-515.54-00. WHEREAS, on October 22, 2019, the City Council approved resolution 19-475 which authorized the City Manager to execute an engagement letter between the City of Port Arthur and Weaver and Tidwell, LLP, for an independent audit of all accounts of the City and the Port Arthur Economic Development Corporation for fiscal year ending September 30, 2019; and WHEREAS, the estimated contract cost was $132,000; and WHEREAS, on May 12, 2020 the City Council approved resolution 20-150 to amend the audit services contract for an amount not to exceed $22,500 and a total contract amount of$154,500; and WHEREAS, due to unexpected circumstances an additional $22,500 is now needed to cover the cost of the audit. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Manager of the City of Port Arthur is herby authorized and directed to execute an amendment to resolution 20-150 to the audit services contract with Weaver and Tidwell, LLP, for an amount not to exceed $22,500 and a total contract amount not to exceed $177,000 in order to complete the FY2019 audit. Section 3. That Weaver and Tidwell, LLP sign this resolution agreeing to the terms herein. Section 4. That a copy of the caption of this Resolution shall be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this day of September, 2020, AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Thurman "Bill"Bartie, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: -U Val Tizen6,,t ity Attorney APPROVED FOR AVAILABILITY OF FUNDS: Kandy Daniel, Interim Director of Finance APPROVED FOR ADMINISTRATION: Ron Burton, City Manager AGREED TO: Weaver and Tidwell, LLP By: Date Attest: Date