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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:
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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