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HomeMy WebLinkAboutAuthorizing the expenditure of $5,000 by the Department of Human Resources for an audit fo the Community Development Block ProgramRESOLUTION NO. 552 -77 Passed by the Common Council of the City of South Bend, Indiana, February 14 19 77 Attest: 4_1e� �"�� —� -� City Clerk Attest: // / Obi(/) 1/ % President of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana February 15 19 77 City Clerk Approved and signed by me Mayor RESOLUTION NO. 5`� - 7 7 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, AUTHORIZING THE EXPEN- DITURE OF $5,500 BY THE DEPARTMENT OF HUMAN RESOURCES FOR AN AUDIT OF THE COMMUNITY DEVELOPMENT BLOCK PROGRAM. WHEREAS, the Department of Human Resources is required by Ordinance No. 6015 -76 to submit in resolution form to the Common Council all contracts for expenditures from the Community Development Block Grant program which exceed $5,000 before any such expenditure shall be appropriated; and, WHEREAS, pursuant to the Community Development Block Grant program regulations the Department of Human Resources is required to cause an audit to be made of its financial management systems not less frequently than once every two years; and, WHEREAS, the Department of Human Resources has negotiated to contract with the independent public accounting firm of Peat, Marwick, Mitchell & Co. for the required audit to be performed at a cost of $5,500: NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of South Bend, Indiana; SECTION 1. That the Department of Human Resources is authorized to make an expenditure of $5,500 for an audit of the Community Development Block Grant program by Peat, Marwick, Mitchell & Co, as required by the regulation governing this program. Member he Council I si7n.e. on7.7 to provide an _J__c C1_7cussi0ri _. o n the issue. FILED IPA 't[ORK'S GNU Irene Gammon CITY CLERK, JOLITH BEND, IND. ADC"PiL-D William C. Gilkey Director, Human Resources and Economic Development CITY of PETER SOUTH J. NEMETH, BEND Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 Mr. Roger 0. Parent President Common Council City of South Bend South Bend, IN 46601 Dear Mr. Parent: February 9, 1977 _'J TIpN� /�F LU V4 Q L Z /NDIA01 Attached for your review is the proposal of Peat, Marwick, Mitchell & Co, to do a fiscal audit of the Community Development Grant for FY 75 ending December 31, 1976. The above audit firm was selected by the CD Fiscal Officer as the low and best bid to do the work as outlined in their proposal. The Appropriation Ordinance for the CD Administrative Budget requires that the City Council approve any contract over $5,000. I would be happy to discuss this audit proposal with you should you have any questions. Sincerely, Fwi C. Gilkey WCG: jmr Attachment cc: Ron Williams 219/284 -9409 CD AUDIT PROPOSAL GENERAL INSTRUCTIONS It is the responsibility of the City of South Bend to properly account for and effectively utilize funds provided by the Department of Urban Development in community development activities. In order to insure and ascertain the accuracy, integrity and authenticity of accounting records and documents an audit is necessary. The audit will be performed on First Year (FY 75) Community Development funds, by a person or firm of professional competence, who is capable of rendering an expert and impartial opinion of the results of the audit. Interested parties should bear in mind that this audit will be performed in accordance to standard accepted auditing principles adopted by the American Institute of Certified Public Accountants (AICPA) and additional standards set by the Comptroller General of the United States for auditing of governmental organizations, program activities and functions. The City of South Bend will receive proposals from interested parties until January 21, 1977. The selection will be determined on the basis of the lowest and best received proposal. We reserve the right to reject any and all proposals. Proposals must be in writing and include information on the professional competence and reliability of the prospective firm. Additional points of consideration are: 1. The firm must be willing to allow the City an opportunity to review a preliminary audit fees. report and respond to any unresolved issues before preparation of their final report. 2. In addition to the copies of the audit report to be forwarded to D /HUD, ten (10) copies must be prepared for the City, for a total of twenty -three copies. Proposals received will be considered final estimates of audit To aid the prospective firm in their proposal preparation an examination of accounting records is allowed during regular business hours, also copies of the audit guide for Community Development block recipients (1G 6505.2) is available upon request. It is imperative that the program audit commence on or about February 15, 1977, and be concluded before May 31, 1977. - 2 - THE SOUTH BEND TRIBUNE DECEMBER 13, 1976 ANNOUNCEMENTS 1 AUDIT PROPOSALS Notice "is hereby given that the City of South Bend, acting through its Community Development Program, will receive proposals until January 21, 1977 for the audit of its First Year (FY 75) Community Development Program. Interested parties are advised that proposal instruc- 'tioni and "program "records-may be examined during regulorbusiness hours in Room 1440 of the County -City Building, South Bend, IN: i _ . Interested parties are further advised that the audit -must be undertaken in accordance with D /HUD Hand- book IG 6505.2, copies of which are available at the -aforementioned; address. Additionally, parties should note that'The program audit must begin by February 15, 1977 and end within 90 days of its commencement. The City of South Bend Community Development Program reserves the right to reject any and all propos- als P. M.M.& CO. Proposal and Contract Between Community Development Program of the City of South Bend and Peat, Marwick, Mitchell & Co. for Audit Services JAN 19 1977 This Agreement, entered into as of the 24th day of January, 1977, by and between the Cummunity Development Program of the City of South Bend (hereinafter called the Local Public Agency), and Peat, Marwick, Mitchell & Co., (Independent Public Accounting firm) of 345 Park Avenue, New York, with offices at 202 South Michigan Street, South Bend, Indiana, (hereinafter called the "Contractor "), WITNESSETH: WHEREAS the Local Public Agency entered into a contract (contracts) with the United States of America ( "Government ") acting by and through the Secretary of Housing and Urban Development ( "Secretary ") for financial assistance under The Housing and Community Development Act of 1974; and WHEREAS pursuant to said contract(s), the Secretary and Comptroller General of the United States or his duly authorized representatives have the right to audit the books and records of the Local Public Agency pertinent to its operations with respect to such financial assistance; and WHEREAS the Secretary has authorized the Local Public Agency to procure an audit by an Independent Public Accountant in lieu of such audit by the Secretary, subject to his prior approval of the specific contract for audit entered into between the Local Public Agency and the Independent Public Accountant; and WHEREAS the Local Public Agency desires the Contractor to conduct and perform such an audit; NOW, THEREFORE, Local Public Agency and the Contractor do mutually agree as follows: 1. The Contractor shall audit the accounts and records of the Local Public Agency for the 24 month period from January 1, 1975 to December 31, 1976, in accordance with generally accepted auditing standards and the auditing and reporting provisions of HUD Handbook IG 6505.2, Audit Guide and Standards for Community Development Block Grant Recipients for Use by Independent Public Accountants, or such other applicable requirements as the Secretary may here- after establish for said Program, herein called the Audit Guide. The audit performed shall be sufficient in scope to enable the Contractor to express an opinion in the audit report on the financial statements of the Local Public Agency. P. M.M.& CO. Community Development Program January 13, 1977 2 2. If the Contractor determines that the Local Public Agency's books and records are not in sufficiently satisfactory condition for perform- ing an audit, the Contractor shall disclose this deficiency to the Local Public Agency. If the Local Public Agency cannot get its books and records ready for audit within 15 days, the Contractor shall notify the Secretary by written communication addressed to the Regional Inspector General for Audit, Regional Office, Department of Housing and Urban Development, 300 South Wacker Drive, Chicago, Illinois, with a copy to the Area Director, Area Office, Department of Housing and Urban Development, Willowbrook 5 Building, 4720 Kingsway Drive, Indianapolis, Indiana. The Contractor shall await further instructions from the Regional Inspector General for Audit before continuing the audit. 3. Upon completion of the audit, an audit report consisting of those elements described in the Audit Guide shall be simultaneously submitted to the Regional Inspector General for Audit six copies; to the HUD area office seven copies; and to the Local Public Agency ten copies as joint addressees. 4. The audit report shall be submitted within 90 days upon commence- ment of the examination. The examination will begin before February 15, 1977. 5. The Local Public Agency agrees to pay the Contractor as compensation for the services and report mentioned herein, a lump -sum fee of $5,500, exclusive of all costs and expenses. The fee is based on the following: a. Partner: $85 per hour; estimated man -days - 2 -$ 1,360 b. Manager: $42 per hour; estimated man -days - 6 - 2,016 C. Senior: $27 per hour; estimated man -days - 18 - 3,888 d. Junior: $20 per hour; estimated man -days - 8 - 1,280 Total fees at standard 8,544 Estimated out -of- pocket expenses 700 Net fees and expenses at standard 9,244 Reduction 3,744 Net fees and expenses $ 5,500 P. M. M.& CO. Community Development Program January 13, 1977 3 6. Changes in the scope of the services of the Contractor to be performed under this Agreement, including any increase or decrease in the amount of the Contractor's compensation and any change in the time limitation for sub- mission of the Contractor's report, which are mutually agreed upon by and between the Local Public Agency and the Contractor, shall be incorporated into written amendments subject to the same concurrence requirements as this Agreement. 7. The Contractor certifies that its principal officer(s) or member(s) is a Certified Public Accountant and /or Licensed or Registered Public Accountant, certified, licensed or registered by a regulatory authority of a State or other political subdivision of the United States. A statement identifying such certifi- cation or license shall be attached to this Agreement. 8. The Contractor covenants that during the period to be covered by audit he shall have no interest, direct or indirect, with respect to the Local Public Agency which creates a conflict of interest. The Contractor further cove- nants that in the performance of this Agreement no person having such interest shall be employed. Conflicts of interest include, but are not limited to: a. Family relationships with officials of the Local Public Agency. b. Where the accountant during the period covered by the audit was connected as an officer or employee of the Local Public Agency. C. Where the Contractor has an interest in the urban renewal pro- ject areas, or any parcels therein, covered by the audit. 9. No member, officer or employee of the Local Public Agency, no member of the governing body of the locality in which the Local Public Agency's project is situated and no other public official of such locality or localities who exercises any responsibilities or functions with respect to the Local Public Agency's project, during this tenure or for one year thereafter, shall have any interest, direct or indirect, in this Agreement or the proceeds thereof. 10. No member of our Delegate to Congress of the United States shall be admitted to any share or part of this Agreement or to any benefit that may arise therefrom. 11. The Contractor warrants that he has not employed any person to solicit or secure this Agreement upon any agreement for a commission, percentage, brokerage, or contingent fee. Breach of this warranty shall give the Local Public Agency the right to terminate this Agreement, or, in its discretion, to deduct from the Contractor's fee the amount of such commission, percentage, brokerage, or contingent fee. P. M.M.& CO. Community Development Program January 13, 1977 4 12. The Contractor shall not assign or transfer any interest in this Agreement except that claims for monies due or to become due from the Local Public Agency under the Agreement may be assigned to a bank, trust company, or other financial institution. If the Contractor is a partnership, this Agreement shall inure to the benefit of the surviving or remaining members of such partnership. 13. The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, age, or national origin. The Contractor shall take affirmative action to ensure that applicants are employed, and employees are treated during employment, without regard to race, color, religion, sex, age, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notice to be provided by the Local Public Agency setting forth the provisions of this nondiscrimination clause. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 14. For a period of three years after final payment under this Agree- ment, the Contractor shall make its workpapers, records, and other evidence of audit available to the Secretary and to the Comptroller General of the United States or his duly authorized representatives. The Secretary and the Comptroller General shall be entitled to reproduce any or all of such documents at their expense for which provision shall be made at the time the need for reproduction arises. 15. All of the reports, information, data, etc., prepared or assembled by the Contractor under this Agreement are confidential and the Contractor agrees that they shall not be made available to any individual or organization without the prior written approval of the Local Public Agency. 16. The Contractor shall comply with all applicable laws, ordinances, or codes of the State or local governments, in performing any of the work embraced by this Agreement. 17. If, through any cause, the Contractor shall fail to fulfill in timely and proper manner his obligations under this Agreement, or if the Contractor shall violate any of the covenants, agreements, or stipulations of this Agreement, the Local Public Agency shall thereupon have the right to terminate this Agreement by giving written notice to the Contractor of such termination and specifying the effective date thereof, at least five days before the effective date of such termination. In such event, all finished or unfinished documents, data, and reports prepared by the Contractor under this Agreement shall, at the option of the Local Public Agency, become its property and the Contractor shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents. P. M. M.& CO. Community Development Program January 13, 1977 5 Notwithstanding the above, the Contractor shall not be relieved of liability to the Local Public Agency for damages sustained by the Local Public Agency by virtue of any breach of the Agreement by the Contractor, and the Local Public Agency may withhold any payments to the Contractor for the purpose of setoff until such time as the exact amount of damages due the Local Public Agency from the Contractor is determined. 18. The Secretary's approval of this Agreement shall be evidenced by the signature of the Area Director at the end thereof. This Agreement shall not be in full force and effect until and unless the Secretary's approval of this Agreement has been obtained. IN WITNESS WHEREOF, the Local Public Agency and the Contractor have executed this Agreement the day and year first above written. CITY OF SOUTH BEND COMMUNITY DEVELOPMENT PROGRAM By: PEAT, MARWICK, MITCHELL & Co. By: Concurred: CITY OF SOUTH BEND COMMUNITY DEVELOPMENT PROGRAM (Regional Inspector General for Audit) Date (Name of Regional Office) Approved: (Area Director) Date (Name of Area Office) P. M.M.& CO. Proposal for Audit Services to Community Development Program - City of South Bend Statement Required by Paragraph 8 of Model Form of Proposal and Contract All Principal members (partners) of the South Bend office of Peat, Marwick, Mitchell & Co. (contractors) are recognized and licensed by the State of Indiana as certified public accountants. On a national basis all partners are recognized and licensed as certified public accountants before December 31, 1970 in the states in which they practice.