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06-17-82 Finance Comm Minutes1� 1 E i MtH:} I II R I II A Committee Chairman Nystul presided. Present were Councilmen Ruiz and Saverud; City Clerk -Treasurer Giermann, Finance Director Swanson, City Development Director Gallagher; Leon Walsh, Tom Togerson, Greg Boehm, Don Kissler, Steve Kasperson, Jim Oates, Jerry Hansen, Dan Eigeman, Henry Jordahl and Calvin Newell representing the CPA firms of Jordahl & Sliter; Clark, Walsh & Togerson; Sorenson & Hansen; Steve Kasperson; Miller, Eigeman, Hansen and Saurey, and Schulze & Kissler. Councilman Nystul explained that the City has never had a private audit firm before, but Council has given him permission to get bids for an audit to see how it compares with the cost of a State audit. He explained that this audit will include the HUD grant audit, which previously had been done separately. In the bid he would like the HUD audit listed separately because HUD pays their own. The bids will be opened at the June 21st meeting which gives only three working days to submit same. This posed no problem. The committee will award the contract and submit to the State for their approval by July lst. The attached IEFORMATION TO BIDDERS was discussed in completeness. The contract was reviewed and questions answered. One question was whether or not this will be a firm bid in case something unusual appears. Councilman Nystul replied that it is firm unless there appears to be a fraud. Councilmen Saverad and Ruiz both expressed their intention of a desire to spend our audit fee locally. Councilman Ruiz stated that we are spending our tax dollars and he would hope that they would meet us half way by submitting as reasonable a bid as possible. CPA's present were given samples of our bookwork in the form of computer printouts and given a tour of our bookkeeping facilities and the area where they will be working. A more detailed look at the system is available to them during any part of the three days before bid opening. At the request of one of the gentlemen, the total amount of audit expense during the last two years will be made available. The State has estimated it will take 400 to 500 hours at the going rate of $25.00 per hour or a total of $10,000 to $12,500. Meeting adjourned at 10:30 A.M. INFORMATION TO BIDDERS AUDIT PROPOSAL CITY OF KALISPELL June :17, 1982 The following information is provided to those interested in submitting proposals for the audit of the City of Kalispell. The audit is for the two fiscal years ending June 30, 1982. The audit will be performed in accordance with the terms and conditions specified on the Standard Audit Contract of the Montana Department of Administration, Local Government Services Division, revision 5/21/82. PROPOSALS Proposals will be on the Department of Administration, Public Accountant Standard Audit Engagement Proposal, revision 5/29/81. Proposals are to be in sealed envelopes delivered to the City Clerk -Treasurer prior to 5 P.M., local time, June 21. The determination of the successful proposal may not be based solely on the lowest price. The City reserves the right to select the applicant who in the opinion of the City presents the best over-all proposal. The City reserves the right to reject any or all proposals and to waive any or all formalities. HUD GRANT The City is the recipient of grants from the U.S. Department of Housing and Urban Development. As a separate item of the proposal, a cost for this additional compliance audit and separate report is requested. The last audit was performed by Gary W. Nystul, CPA, for the period ending November 30, 1980. The audit is to be performed in accordance with the U.S. Department of Housing and Urban Development's Audit Guide and Standards for Community Development Block Grant Recipients. GENERAL INFORMATION The last audit was performed by the State of Montana, Department of Admin- istration for the period ending June 30, 1980. That report covered two fiscal years. One fiscal year was pre -BARS and the last year was on BARS. The firm of Jordahl & Sliter performed an audit of the Sewer Fund for the year ending June 30, 1981, in compliance with the bond indenture agreement. Information to Bidders Page 2 RECORDS The financial records are maintained on a Burroughs L9000, with magnetic stripe ledger cards. The office of an elected City Treasurer was abolished January 1, 1982. The duties of the treasurer are now under the responsibility of the .appointed Clerk -Treasurer. All records are maintained at City Hall. PERSONNEL The personnel in the finance areas are: Clerk -Treasurer Marjorie Giermann; Treasurer Pat Tinseth; Finance Director William Swanson; Payroll Clerk Landa McDowell; Claims Processor Rose Wood; Cashiers Louceal Sinclair and Betsy Boehm. Prior to the change in elected treasurer, the position was held by Gail Bruch. VOLUME About 7,100 claims will be processed in the two fiscal years. There are about 4,600 water/sewer accounts. These accounts are billed bi-monthly. There are about 120 employees. The summer help is usually in the Parks and Recreation Department. REPORT The audit report may be bound in the firm's standard binders. No special requirements are made. There are eight members of the Council, the Mayor, Clerk -Treasurer and Finance Director who should all receive copies of the report. The report should be completed so a draft may be reviewed by the City by December 15. The final report should be issued by January 15. The City will not accept a report that does not conform to the contract or reflects less than acceptable reporting practices. PROGRESS PAYPTENTS As stated at 3.d. of the Standard Audit Contract, progress payments may be made. The City will allow progress payments. Claims must be submitted to the Clerk -Treasurer by the 25th of the month for processing and payment by the Council after the first Monday of the month. Information to Bidders Page 3 CLERK'S ANNUAL REPORT The City anticipates the annual report for FY82 to be completed by September 1. The contractor will be allowed one extra working day for completion for each working day the City is late with its report. D of A COST ESTIMATE The Department of Administration estimates that they would require between 400 and 500 hours to complete the two-year audit. The statutory rate charged by the State is $25. Thus, the State price would be between $10,000 and $12,500. This assumes all work is in order and all amounts are reconcilable. FINANCE COMMITTEE MEETING 9:00 A. M. TUESDAY, JUN.E 22, 1982 CONFERENCE ROOM - CITY HALL Chairman Nystul presided. The Finance Committee reviewed bids from 5 CPA firms as follows: Firm Clark, Walsh & Torgerson Schulze, Kissler & Kasprisin Jord.ahl & Sliter Miller, Eigeman, Hansen & Saurey Sorenson & Hansen Total Man Audit Typing HUD Total Hours Personnel Travel Etc. Audit Price 580 $14,500 $2,000 $16,500 550 13,75o 1,250 2,500 17,500 7o8 16,008 217 1,500 17,725 716 17,390 105 450 2,000 17,945 875 28,525 1,000 2,625 24,000 With power to act, the Committee accepted the low proposal of Clark, Walsh & Torgerson. Meeting adjourned. A general staff meeting of clerical personnel was held on Monday, June 28, 1982, in the Conference Room at City Hall. In attendance were: Betsy Boehm, Louceal Sinclair, Pat Tinseth, Marge Giermann, Rose Wood, Landa McDowell, Vickie Walters, Markie Sabol and Bill Swanson. The Mayor thanked the staff for working as a team, He pointed out that with vacation season upon us, we will all be asked to do our share to cover duties of vacationing personnel, We were reminded to extend courtesies to the public and to always attempt to do a little extra. The Mayor advised that evaluations on personnel would be coming up. Unnecessary wasting of time was mentioned; it was asked that we all attempt to produce more productivity. Marge will be reassigning duties during the vacation period. The Mayor feels that rumors, gossip and morale problems have been lessened around 80-85o since he has taken office. He asked again that any kind of problem be brought to his attention for discussion. Bill Swanson stated that he felt bettered conditions were brought about by the Mayor's action and that productivity has increased because of this, Marge stated that the tax trays were in good shape, thanks to Pat and Vickie.