RESO 1999-12 - City Auditor DavisRESOLUTION NO. 99-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
APPROVING KENNETH C. DAVIS, P.C. AS THE CITY'S AUDITOR FOR THE FISCAL
YEAR OCTOBER 1,1998 TO SEPTEMBER 30,1999; AND DECLARING AN EFFECTIVE
DATE.
WHEREAS, the City of Huntsville, Texas, entered into an agreement for Accounting Services
with Kenneth C. Davis, P.C. on July 15, 1998, and such Agreement provides that the City may
exercise an option to utilize the services of Kenneth C. Davis, P.C. for two subsequent fiscal years;
and
WHEREAS, the City desires to exercise the option for the second year; NOW,
THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
that:
SECTION 1: Kenneth C. Davis, P.C. is hereby hired to be the City' s auditor for the fiscal year
October 1, 1998, to September 30, 1999, pursuant to the Letter attached as Exhibit "1" which is
incorporated herein for all purposes.
SECTION 2: This Resolution becomes effective from and after the date of its passage.
PASSED AND APPROVED THIS 10 DAY OF AUGUST, 1999.
Danna Welter, City Secretary
APPROVED AS TO T EGAL FORM:
c1 it-).":
a u C. Isham, City Attorney
William B. Green, Mayor
KENNETH C. DAVIS, P.C.
CERTIFIED PUBLIC ACCOUNTANT
1300 11TH STREET, SUITE 400
P.O. BOX 6308
HUNTSVILLE TEXAS 77342
(409) 291 -3020
July 26, 1999
Ms. Patricia Allen
Director of Finance
City of Huntsville Finance Department
1212 Avenue M
Huntsville, Texas 77340 -4608
Dear Ms. Allen,
In accordance with my original proposal dated May 11, 1998, and Paragraph V of
Agreement for Accounting Services dated July 15, 1998 between the City Council of the
City of Huntsville, Texas and Kenneth C. Davis. P.C., Certified Public Accountant, I am
pleased to submit my proposal to serve as auditor for the City of Huntsville (the City) for
the fiscal year October 1, 1998 to September 30, 1999. It is my understanding that:
> The audit will be performed in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller General of
the United States, the Single Audit Amendments of 1996, and the provisions of
OMB Circular A -133 "Audits of States, Local Governments, and Non - Profit
Organizations ".
> The audit report shall be prepared in accordance with Government Finance Officers
Association guidelines to maintain the Certificate of Achievement for Excellence in
Financial Reporting.
> Audit working papers will be retained for three years from the date of the audit
report and shall be made available for examination by authorized representatives of
the City, and cognizant State and Federal agencies.
> I will prepare and submit preliminary draft reports on examination of the financial
statements and related compliance reports on or before December 20, 1999. The
financial draft will be completed and presented to City staff for final typing and
printing on or before December 27, 1999. These are tentative dates pending
meeting with the Audit Committee to prepare a more definite schedule.
> I will be available to present the audit reports to City Council at their January 2000
meeting. The audit reports and financial statements will be filed with the City
Secretary on or before January 31, 2000.
> In accordance with the City's Investment policy, I will review the internal controls,
investment practices, investment performance, and reporting system. A compliance
audit of management control on investments and adherence to investment policies
will be performed.
�-a
> My reports will include:
An independent Auditor's report which expresses an opinion on whether the
financial statements are presented in accordance with generally accepted
accounting principles.
- Comments on controls for reasonable assurance that programs are managed in
compliance with applicable laws and regulations.
Comments on material weaknesses in and noncompliance with the system of
internal control, including a section containing findings and recommendations
on deficiencies in financial, management, or administrative controls.
My fees for reporting on the 1999 financial statements will be $12,500. This fee is
based on my estimation of the number of hours it will take to complete the engagement.
My fee for the audit will not exceed this amount. If unforeseen complications arise
during the audit, making it necessary to expand the scope of my work in selected areas;
I will discuss this with you before proceeding. Should the Audit Committee elect to
increase the scope of my work in selected areas, I will be glad to undertake the
additional work under a negotiated fee arrangement.
I am an officer of Kenneth C. Davis, P.C. and legally authorized to make representations
for the firm.
I appreciate the opportunity to submit this proposal to serve as auditor of the City of
Huntsville. I would be pleased to meet with you to discuss any questions you may
have, if you so desire.
Yours very truly,
e9 _=
NETH C. DAVIS, P.C.
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