HomeMy WebLinkAboutPR 17892: CONTRACT WITH GRAY & ASSOCIATES - 1
City of Port Arthur
Memorandum
To: Floyd T. Johnson, City Manager
From: Deborah Echols, Director of Finance OW '
Date: August 22, 2013
Re: PR 17892
Recommendation
I recommend that the City Council adopt Proposed Resolution 17892 which authorizes a contract
for the services of Gray & Associates, Certified Public Accountant, as the Implementation Experts
for CaseWare CAFR writing software.
Background
The City is purchasing CAFR writing software to increase efficiency and decrease costs of CAFR
preparation.
Budgetary Effect
Funding is provided for in account # 001 -1031- 515.54 -00
Z: \Finance \Resolutions\ Gray & Associates, CPA's.doc
P.R. 17892
dhe 8/22/13
RESOLUTION NO.
A RESOLUTION AUTHORIZING A CONTRACT FOR THE
SERVICES OF GRAY & ASSOCIATES, CERTIFIED PUBLIC
ACCOUNTANT, AS CASEWARE GASB FINANCIAL
IMPLEMENTERS IN AN AMOUNT NOT TO EXCEED
$25,615. ACCOUNT #001 - 1031 - 515.54 -00
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT the City Manager of the City of Port Arthur is hereby authorized and directed to
execute on behalf of the City of Port Arthur a contract between the City of Port Arthur and Gray
& Associates, Certified Public Accountant, to implement the Caseware GASB Financial
Software of the City of Port Arthur for the fiscal year ending September 30, 2013, as described
in Exhibit "A "; and
THAT a copy of said contract is attached hereto, in the form of an engagement letter and
implementation timeline, and made a part hereof as Exhibit "A "; and,
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, 2013, 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:
Deloris Prince, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Val Tizeno, ' it At ey
APPROVED FOR ADMINISTRATION:
Floyd T. Johnson, City Manager
diked/ 2/... OA /..C2
Shawna Tubbs, Purchasing Manager
APPROVED AS TO AVAILABILITY OF FUNDS:
Deborah Echols, Director of Finance
Exhibit A
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`�. AN ACCOUNTANCY CORPORATION Fox: 805-258-7029
4572 Telephone Road Suite 912 Ventura, CA 93003 gar- graycpasalive.com
Gray and Associates, CPAs Engagement Agreement
This engagement agreement ( "Agreement ") is to confirm our understanding of the terms and objectives
of our engagement and the nature and limitations of the services we will provide. This Agreement is made and
entered this by and between Gray and Associates, CPAs, ( "Gray ") and City of Port Arthur, TX ( "Client ").
1. Consulting Services. During the term of this Agreement and subject to the limitations set forth herein,
Gray shall devote such time and effort to the affairs of Client as Gray and Client mutually deem
reasonably necessary to implement the Case Ware Software more fully set forth on Exhibit A
( "Consulting Services ") in a prompt, competent and diligent manner.
2. Additional Duties of Gray. Specific tasks to be performed by Gray not set forth in this Agreement, if
any, ( "Additional Duties ") shall be assigned in writing by Client to Gray. Such writings shall be
considered amendments to this. The performance of any Additional Duties will be according to the
terms and conditions of this Agreement and any amendments thereto, and the rights and obligations of
both parties will be governed thereby. In the event of any conflict between the terms of this Agreement
and the terms of any amendment, the terms of this Agreement will govern.
3. Responsibilities of Client. Client shall be responsible for the provision in suitable form and in a timely
manner of the items set forth in Exhibit A and as may otherwise be requested by Gray. Failure by
Client to provide requested items in a timely manner may result in delays in program launch and
additional expenses_
4. Term. This Agreement shall commence on September 15, 2013 and shall continue in full force and
effect, unless terminated earlier pursuant to Section 9 of this Agreement, through the production of the
2013 CAFR with the Case Ware Software.
5. Consulting Fee. In consideration of the duties to be performed by Gray pursuant to this Agreement,
Client agrees to pay Gray as follows: The Total amount of the fixed fee contract is $25,615. See Exhibit
B for details of services. Total amount for Training of $4,200 for two days of onsite training. Plus travel
costs as explained in section 6 below.
6. Expenses. In addition to the fees described in Section 5 above, within thirty (30) days after receipt of
Gray's invoice, Client shall reimburse Gray for all reasonable and necessary business expenses,
including travel, incurred by Gray in the course of performing the Consulting Services for Client. Gray
shall keep accurate records and receipts of such expenditures and shall submit such accounts and proof
thereof as may be reasonably necessary to establish to the satisfaction of Client that the expenses
incurred by Gray were ordinary and necessary business expenses incurred by Gray on behalf of Client.
7. Status of Gray. Gray shall retain complete control over its agents, employees and servants who shall be
the exclusive agents, employees and servants of Gray and not of Client. Nothing herein shall be
CASEWARE_
AUTHORIZED INSTRUCTOR
construed to create any partnership or joint venture, nor shall Gray be considered a partner, agent or
employee of Client, and Gray shall have no authority to bind Client in any manner whatsoever, it being
intended that Gray shall be and remain an independent contractor, and not otherwise, and that Gray shall
be responsible for all actions of itself, its agents and employees.
8. Independent Contractor. Client and Gray acknowledge and agree that in performing the consulting
services hereunder, Gray is acting as an independent contractor of Client. Nothing contained herein or
otherwise shall be construed in such manner as to create the relationship of principal and agent between
Gray and Client or the relationship of employer and employee between Client, Gray and /or any of
Client's employees. No party will have the authority to enter into agreements of any kind on behalf of
the other or otherwise bind or obligate the other in any manner to any third party.
9. Termination. Either party may terminate this Agreement upon thirty (30) days written notice to the
other party for any reason. If either party terminates the Agreement, Client shall have an obligation to
pay Gray for all services provided up to the date of termination.
10. Representations and Warranties. By signing this Agreement each party warrants and represents that
it has the right and power to enter into this Agreement and it owns all of the rights it granted to the other
party herein. Each party acknowledges that no inducements, representations or warranties, except as
specifically set forth on the face hereof, have been made by the other party and that no representative,
agent or employee of each party is authorized to make any representations or warranties with reference
to this Agreement other than as set forth on the face hereof.
11. Notices. All notices, demands or other communications given hereunder shall be in writing and shall
be sufficiently given if delivered by courier or sent by registered or certified mail, first class, postage
prepaid, or by telex, cable, telegram, facsimile machine or similar written means of communication,
addressed as follows:
a. If to Gray, to:
Gray and Associates, CPA's
4572 Telephone Rd Suite 912
Ventura, CA 93003
b. If to Client to:
Tammy Jacobs
City Hall
444 4 Street
Port Arthur, TX 77641
or such other address with respect to any party hereto as such party may from time to time notify
(as provided above) to the other party hereto. Any such notice, demand or communication shall
be deemed to have been given (i) if so mailed, as of the close of the third (3` business day
following the date mailed, and (ii) if personally delivered or otherwise sent as provided above,
on the date received.
12. Resolutions of Claims and Disputes. Regardless of the place of execution, this Agreement
shall be deemed to be an agreement made in Ventura, California ( "Venue ") and shall be interpreted as
an agreement to be performed wholly in the Venue. The laws of the Venue shall be applied without
• Page 2
regard to the principles of conflicts of laws. Any claims or disputes arising out of this Agreement shall
be resolved only by arbitration in the Venue and in accordance with the Rules of Procedure for
Commercial Arbitration of the American Arbitration Association, and any award therefrom shall be
rendered by the arbitrators as a judgment in any trial court having competent jurisdiction. In the event a
suit or action is filed to enforce any provision of this Agreement, the prevailing party shall be
reimbursed by the other for all costs and expenses in connection with the suit or action, including
reasonable attorney's fees.
13. Interpretation. If any portion of this Agreement shall be held to be illegal, invalid, or
unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other
provision hereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable
provision had never been contained herein. Additionally, in lieu of each such illegal, invalid or
unenforceable provision, there shall be added automatically as part of this Agreement a provision as
similar to such former provision as shall be legal, valid, and enforceable.
14. Entire Agreement. This Agreement contains the entire understanding and agreement
between the parties hereto and supersedes all prior verbal and written representations, agreements,
understandings or proposals between the parties regarding the subject matter contained herein. No
additions, changes or modifications shall be binding unless reduced to writing and signed by a
representative of Gray and the Client.
IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date first written
above.
Gray and Associates, CPA's
By: Date: ,lS - 461J
Gail Gray t1
[Client]
By: Date:
Name:
Title:
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AN ACCOUNTANCY CORPORATION Phone: 805-650-9733
Fax:
4572 Telephone Road Suite 912 Ventura, CA 93003 gall- graycpaselive.com
I
CITY OF PORT ARTHUR TX
CASEWARE GASB IMPLEMENTATION TIMELINE
1 EXECUTIVE SUMMARY
1.1 QUALIFICATIONS AND EXPERTISE
Gray & Associates CPA's, an Accountancy Corporation ( "Gray CPA's ") is the
governmental GASB and CAFR solutions expert for CaseWare International Inc. and its
governmental solution ( "CaseWare "), the market leader in financial reporting solutions.
Gray CPA's has 12 years of experience implementing the CaseWare solution for
governmental entities.
Gail Gray, who heads Gray CPA's, has 20 years' experience as a CPA and
Governmental Auditor, including more than 12 years working with CaseWare as a
trainer and consultant. Gail is a member of the California society of CPA's and the
Governmental Finance Officers Association. Gail brings a thorough understanding of
governmental reporting requirements to every CaseWare GASB implementation. Gray
CPA's is a woman owned small business has as staff of 11 members 5 of which are
dedicated primarily to servicing CaseWare clients.
The CaseWare software solution proposed by Gray CPA's, developed by CaseWare
International Inc. is an Off - The -Shelf program tailored specifically to the requirements of
the City of Port Arthur "Port Arthur". CaseWare is the choice of more professional
accountants worldwide to produce client financial statements than any other product
during the last 25 years. CaseWare is used by Governments, and Fortune 500
companies around the world. CaseWare will provide support to Gray CPA's for this
Proposal as required and to Port Arthur through ongoing technical support from its
development, technical and consulting staff.
The CaseWare GASB Product proposed by Gray CPA's produces GAAP compliant
financial statements, produces and publishes all components of the CAFR completely
within CaseWare to a hardcopy of PDF.
Some other features of CaseWare include:
• Import data from most current accounting systems.
• Creation of trial balance.
• Financial statement based document management.
• Page 1
• Ability to test adjustments without impacting internal systems.
adjustments p 9 Y
• Adjustments by type (Le. government wide, reclassifying, etc.).
• Creation of "integrated" financial statements and notes.
• Financial statement data is linked back to the trial balance.
• Annual budgeting can be incorporated, with document support.
• Automates CAFR preparation
There are many aspects to the GASB Product, but core to City of Port are the facts that
the GASB Product is an integrated product that automates the entire CAFR publication
process, ensures consistency within financial statements and budgets, organizes
supporting documentation and provides a higher degree of reliability than manual
creation.
1.2 SCOPE AND APPROACH
To ensure a successful implementation, Gray CPA's will assist the Port Arthur in
evaluating the best approach to import the chart of accounts into CaseWare. This
process varies from automatic mapping to a custom group structure or to utilizing the
predefined groups within CaseWare. Once the trial balances are imported and the Port
Arthur fund structure is duplicated, the trial balance will be mapped to custom groupings
developed from the City's own chart of accounts within CaseWare. This will allow the
trial balance to be grouped in as many as 10 different ways depending on the needs of
the specific report. For example grouping focusing on the GASB 34 reporting, the
Notes to the financial statements, MD &A, and Statistical sections will each be
developed using groupings within CaseWare.
Port Arthur's key employees will then receive initial remote training and work to proof
out the prior year's base financial information in CaseWare. Gray CPA's will take this
information and build appropriate indexes, rounding relations, tables, notes, and other
material to complete the prior year's financial statements within CaseWare.
Once prior year data has been duplicated into CaseWare, Port Arthur's employees will
be trained on the CaseWare solution, and Port Arthur's prior year data will be rolled
forward. Port Arthur will import current data and make any current year changes under
the direct supervision of Gray CPA's.
• I
2 PROJECT MANAGEMENT:
• Page 2
The Project Manager for this Proposal will be Gail Gray. Gail will work with Port Arthur
employees to identify the input and output needs specific to Port Arthur and tailor the
software appropriately.
Working with Gray CPA's Port Arthur shall: Must be Completed by
• Post all of the prior year adjusting journal entries.
• Review prior year trial balance for accuracy — Trial balance should balance with
the CAFR.
• Identify current accounting structure and flow of your chart of accounts within the
CAFR MD &A, Notes & Statistical Section.
• Main accounts and their sub accounts.
• Fund structure or fund hierarchy.
• Chart of Accounts group assignment.
• Fund level reports group assignment.
• Government Wide reports group assignment.
Gray CPA's Project Manager will work with Port Arthur to determine if you will use
predefined groups within CaseWare or a custom structure group and establish the
groups.
Mapping /coding of trial balance, statements and schedules to predefined groups within
CaseWare or the custom structure group, this will allow for import of group assignments
into CaseWare and determine if information will be created as input cells- which allows
editing, or links from spreadsheets that contain data that cannot be established from
database.
Statements and schedules required by GASB 34, including but not limited to:
• Statement of Activities
• Statement of Net Assets
• Balance Sheets
• Statement of Revenues
• Cash Flows
• Reconciliations
• Page 3
• MD &A
• Statistical Reports
• Original Budget
• Final version of amended budget.
• Supplemental Information.
Gray CPA's will instruct and guide Port Arthur staff in establishing the working paper
structure and determine what documents are needed to produce the required reports,
such as:
• Retirement plan schedules of funding progress — pension calculations.
• Statements for non -major Governmental, non -major Enterprise, and Fiduciary
funds.
• Special Revenue, Debt Service, Capital Projects, Permanent, Internal Service,
and Fiduciary funds.
• Purchases of Investments.
• Fixed assets and depreciation schedules.
• Fixed assets and sales of fixed assets.
• Building Tables — based on group codes, standard account grouping and
information provided by Port Arthur.
• Create each of the required reports for the CAFR.
• Create many of the rounding relationships for the balance sheets and train staff
to establish others.
• Prepare:
o Table of Contents that it updates automatically each year based on the
actual pages required that year.
o Introductory Section & Auditors Report inserted from PDF.
o Pagination and insert your "pages left blank ".
o Headers, footers and formatting issues so you have a published ready
document when our implementation is complete.
• Page 4
o Build footnotes based on most recent report issued- link to any available
data or spreadsheet.
o Notes to the Financial Statements linked to any available data.
• Build in the roll forwards to allow input of numbers to automatically transfer to the
prior year columns when the file is relocated to the next year.
• Provide assistance and guidance with rolling the file forward ready for next year.
• Provide assistance and guidance with constructing the necessary changes for
next year.
• File Setup:
o Gray CPA's will provide the initial file setup and Trial Balance import.
o Provide remote software training enabling Port Arthur staff to import the
remainder of the files and assistance and guidance with grouping the
Chart of Accounts.
o Provide initial training to Port Arthur's staff to assist them with grouping to
produce the working papers they determine are required.
o Work in partnership with Port Arthur staff to build a custom knowledge
library database that will hold footnotes.
This process will assure that your staff has the proper training and the knowledge
necessary to maintain the database.
Onsite Training- after initial reports have been drafted
Once the template and the import of prior year financials are loaded into CaseWare and
the file is ready to roll forward to the next year Gray CPA's will train up to 12 employees
in the use and maintenance of the necessary components of CaseWare.
Gray CPA's will continue to provide ongoing tech support through the completion of
publication of the following year CAFR. This will insure a complete implementation and
full training for your staff. Once the CAFR is published then tech support transfers to
the CaseWare tech support team where you will you will continue to receive unlimited
support included with your software license.
2.1 TIME FRAME
2.1.1 CAFR
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The CAFR document can take up to 4 months depending on the availability of your staff
and the size of your dataset. You will need to budget a minimum of 160 -200 hours of
your staff time for initial data loading and setup. Additional time will be required for
training and publication of your CAFR document. Because we will be pushing to
complete the 2012 CAFR by Nov 14 and to be complete with your data base ready to
roll for your 2013 numbers this project will require your staff to commit to a full schedule
the first two weeks of the project.
2.1.2 CASEWARE GOVERNMENTAL IMPLEMENTATION PROCESS & TIMELINE
Weeks 1 — 2 -Done by City Staff with Gail Grav to guide Completed by Sept 27th
Utilizing the County's staff to obtain an understanding of organizations accounting structure and
assist with defining groupings to produce required reports. This includes setting up custom
groups in CaseWare, and utilizing the existing accounting structure as much as possible to
allow for import of group assignments of up to 10 available Groups. Allow County staff additional
time to complete the required grouping.
• Export Trial Balances
• Export Prior Year Balances
• Export Encumbrance Amounts
• Export Budget Amounts
• Group Codes
• Mapping
• Journal Entries
• Coding
• Test the import process and automatic grouping.
Weeks 3- Completed by Oct 7 -City Staff
• Provide Code for Fund Reports
• Provide Code for Budget Reports
• Provide Code for Government Wide Reports
• Provide Code for MD &A
• Provide Code for Statistics
Weeks 3 -8 Completed by Nov 15 -Grav & Assoc Staff to build -City Staff to review
• Build /Review Fund Reports
• Build /Review Budget Reports
• Build /Review Government Wide Reports
• Build /Review MD &A
• Build /Review Notes
• Build Cover Page
• Build Intro Section
• Build Rounding Relations
• Page 6
• Build Section Dividers
• Build Table of Contents
• Port Arthur Final Review of Full CAFR Document.
Gray CPAs will build the footnotes based on the Last Report issued, and work with County staff
to link to any available data or spreadsheets. This will include building in the Roll forwards, to
allow input numbers to automatically move to the prior year columns when the file is moved to
next year.
Gray CPAs will prepare the Table of Contents, so that it updates automatically each year based
on the actual pages required that year.
Gray CPAs will work with the pagination and insert "pages left blank ".
It is our intent to handle all the headers, footers and formatting issues, so you have a published
ready document when our implementation is complete
Week — 9 -16 2012 File ready to roll with database by Oct 14th Draft 2013 by Dec 16 -Done by
City Staff
After the 2012 CAFR has been duplicated Gray CPAs will work with County staff to:
• Roll the file forward ready for 2013. City to Import 2013 numbers and post AJE's
• Train your staff to make the necessary changes for the next year.
• Work with your staff for tech support, through the completion of the 2013 CAFR.
We anticipate this process to take approximately 16 weeks to complete. We would like to begin
the project by September 15, 2013 with a completion date of January 15, 2014
3 PRICING METHODOLOGY
Gray & Associates CPA's presents three different pricing proposals dependent on the
level of involvement of Port Arthur: The City has selected option 1
Option 1 - Gray & Associates CPA's performs the majority of the data entry, including
assigning group codes, linking data including Table of Contents, MD &A, Notes to
Financial Statements. The City agrees to utilize standard styles and fonts. The price for
Option 1 is $25,612
Training and travel are billed separately. Training is $2,100 per day for two days and up
to 12 participants for a total of $4,200. If you have more than 12 staff you wish to have
trained, we suggest two, two day classes. Actual travel and lodging expenses are billed
as an additional expense.
• Page 7
Gray & Associates, CPAs
An Accountancy Corporation
4572 Telephone Road, Suite 912
Certified Public Accountant Ventura, California 93003 CASEWARE
(8051650.9733 a rn- rrxar>Fn INS1141 u-Tna
CASEWARE GASB FINANCIALS IMPLEMENTATION
City of Port Arthur Texas
`City CAFR Report -
Financial Cityment Sections
File Setup
Grouping of Chart of Accounts - City prepares with Gray assistance utilizing GovWide standard group
Table of Contents -Auto updated and linked
Introductory Section & Auditors Report - City to provide JPEG for insertion by Gray
Government Wide Reports - City to group and post adjustments
Fund Financial Cityment customization - Cash flow and reconciliation documents linked by City
Required Supplementary Information and Combing statements
Notes to Financial Cityments - Linked and integrated by Gray
MD &A - Linked and integrated
Statistical Section - Completely Built out with all Data Entry done by our office
Discount to utlize Standard Styles and formating is $1500
Option 1 includes - Gray & Associates Customizing reports utilizing standard styles and formating
Total for City CAFR Option 1 25,6154
City will complete Data entry in Statistical and Note sections
City will complete Group codes assignment in Combining and Individual fund statements
Cash Flow and Reconciliation Documents will be linked City Staff
Total for City CAFR Option 2 23,975
CAFR utilizing standard formatting for example: Fonts, Indents & underlines
All above Section 2 completed by client
Client to perform cell linkage in MD &A & Notes after training
City to Complete Row group codes for the financial and Statistical sections after training
Total for City CAFR Option 3 20,935)
2 Day of On -Site Consulting at $2100 per day up to 12 people (not Including Travel) additional training available upon request 4,2001
After review of your financial statements and gathering an understanding of your needs we are providing you with the above three options for implementing your CaseWare
solution.
To ensure continued familiarity with your data for your staff Gray & Associates will provide remote training and utilize your staff to complete the account groupings utilizing
standard groupings for the Government Wide reports and MD &A. Short training sessions will be provided utilizing gotomeeting.com prior to the commencement of each
segment of the initial data setup and preparation for upload.
• County staff will then provide Gray & Associates with the group codes for the Fund reports, notes and Statistical sections to allow for the build out of the reports based on
your guidance. If you choose option 3 State staff will complete this step of implementation with guidance provided by Gray & Associates.
The initial file setup and Trial Balance import will be performed by Gray & Associates. Once the specific procedures your staff will use for the import process are determined
Gray & Associates will train your staff and assist them with the import of the remaining data files. Gray & Associates will then assist and train your staff with the production
of the work papers your staff determines are necessary including your Word and Excel files, lead sheets, and Trial Balances by grouping. In conjunction with your staff Gray &
Associates will build your custom knowledge library database that will become the repository for your footnotes.
Gray & Associates will then provide onsite training for your staff will to ensure that your staff has the knowledge necessary to maintain the CaseWare solution going forward.
Gray & Associates will draft the first set of reports based on the option selected above. Gray & Associates will then train your staff to enable them to make ongoing changes
to the basic reports. Once training is completed your staff should have the ability to import your yearend trial balances, post any adjustments that might be required, and
produce your reports with only minor modifications to update it to the current year information. This training will take place on -site after the initial reports are drafted.
Once the template is complete ready to roll forward to the next year Gray & Associates will walk your staff through the complete process. This will provide very specific
training, dealing only with the required areas of the program.
This proposal includes two days of on -site training, however, it does not include travel expenses. Travel expenses will be paid based on actual expenses incurred at time of
training.
Gray & Associates will build the reports based on your September 30, 2012 audited numbers and then roll the file forward to be ready for 2013. This proposal assumes that
no major problems exist in your accounting files. If significant issues arise, requiring work beyond the scope of this proposal, written approval will be obtained prior to the
commencement of work. Please contact me about timing if you are looking to implement for the 2013 year.
WORK OUTSIDE THE SCOPE OF THIS ENGAGEMENT WILL BE BILLED AT $175/HR AND WILL BE AGREED UPON IN ADVANCE
Sincerely,
Gail OPA
Certified CaseWare Instructor
1- Aug -13
* Technical support limited to documents and calculations that we were engaged to create while untitled to produce your next CAFR report. An agreement going forward is
available upon request
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