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HomeMy WebLinkAbout1993-02-24 Audit Committee Minutes,n MINUTES OF AUDIT COMMITTEE MEETING FEBRUARY 24, 1993 The Audit Committee met in the Conference Room at the Read- ing Town Hall. The meeting was called to order at 7:05 p.m. by Richard Coco, Finance Committee Chairman. Those present: Mem- bers: Richard Coco, William Burditt, Frederick Van Magness, and Robert Hoffman. Also present were staff Richard Foley, Town Ac- countant and Elizabeth Klepeis, Finance Director. The first order of business was the election of officers. One ballot was cast for the following slate of officers: Chairman Richard Coco Vice Chairman William Burditt Secretary Robert Hoffman The vote was 4-0-0. A draft Request for Proposal for auditing services was dis- cussed. The need for 50 copies of an audit was questioned, but it was decided that 50 copies are used each year. The committee added a new requirement under the "Nature of Services Required" section as follows: A particular department of the Town will be designated for em- phasis by the Audit Committee each year. The Committee felt that a per diem rate could be sought for such a departmental review. The vote to include this new section was 4-0-0. It was also decided that the Town should ask for audit completion as of November 1st each year. The Audit Committee approved the amended version of the RFP (attached). It was decided that the RFP should be sent to the following firms: Deloitte Touche, Arthur Andersen, KPMG Peat Marwick, Coopers & Lybrand, Ernst & Young, and Price Waterhouse. The meeting adjourned at 7:35 P.M. Respectfully sy~uy+~bmitted, Eli abet W. Klpeis, Sec etary Pro Tem Town of Reading, Massachusetts Request For Proposal For Auditing Services The Town of Reading, Massachusetts invites qualified, inde- pendent public accountants, licensed to practice in the Common- wealth of Massachusetts to submit proposals to conduct an audit of the financial accounts and records of the Town in accordance with the specifications listed below. I. Information Furnished to Proposer A. General Information 1. The Town of Reading, Massachusetts has a population of 22,500 and a total budget for fiscal year 1993 of ap- proximately $ 34.5 million exclusive of the Reading Municipal Light Department. The most recent audit of the Town was performed in 1992 for the fiscal year ended June 30 1992 by KPMG Peat Mar- wick. The auditor's opinion was qualified for the omission of the general fixed asset account group on the general purpose financial statements. B. Description of Records 1. The Town maintains its general records in accordance with the Revised Uniform Municipal Accounting System established by the Bureau of Accounts. 2. The records of the Town are computerized on a Digital VAX 3180 with Admins software. C. Nature of Services Required 1. The Town requires a three year contractual agreement (subject to annual appropriation by Town Meeting) consisting of an examination of the Town's financial records of all activities excluding the activities of the Reading Municipal Light Depart- ment. The first year of the contract shall cover the fiscal year ending June 30, 1993. 2. This examination is to be performed in accordance with the Standards for Audit of Governmental Organizations, Programs Acti.vsfies, and Functions, 1988 Revision issued By t-e Uni e States enera Accounting Orrice. 3. In addition to the financial audit, the proposer is to conduct an audit in accordance with the Single Audit Act of 1984 as codified in Chapter 75 of Title 31 of the United States Code and the regulations established to implement this law by the Director of the Office of Management and Budget O.M.E. Circular A-128. In order to simplify the evaluation process and obtain the maxi- mum degree of comparison, prospective auditors are required to submit proposals in the format and manner prescribed by this sec- tion. Firms are cautioned that any deviation from this format may result in disqualification of their proposals. A. Letter of Transmittal 1. State each yearly fee and the all inclusive three year fee for which the work will be done and state that the offer is effective for at least 60 days. 2. This letter must be signed by the individual authorized to negotiate for and contractually bind the firm. B. Title Page 1. 1.1'.P7.-project title. 2. Name of proposer firm. 3. Address and telephone number of proposer firm. 4. Name of contact person.. C. Table of Contents 1. Include a clear identification of the material bysec- tion and by page number. Such sections will be those identified below. D. Professional Experience 1. Describe the local and/or regional office's audit ex- perience with local governments in the last five years. 2. Identify the supervisors (e.g. partner, manager, auditor-in-charge) and the staff who are expected to work on the audit. Provide resumes (which may be included as appendices) showing relevant past experience, education, training, etc. 3. Describe the firm's participation, if any, in profes- sionally sponsored quality control review or comparable programs. 4. List the names, addresses and telephone numbers of client officials for several engagements who may be contacted as references. E. Proposer's Approach to the Audit 1. State the proposer's understanding of the services to be performed, the work products to be provided, and the time constraints of the audit as described in I-C, "Nature of Services Required," above. 2. Submit a work plan to services (within the required time must include time estimates by staff of the significant segments of the discussion of the audit procedures to process for each segment. F. Compensation and Billin accomplish the scope of frame). The work plan classification for each work. Include a brief be used in the audit 1. State the total hours and hourly rate required by staff classification for each type of service requested in Sec- tion I-C and the resulting all inclusive maximum fee by year. This fee shall include all costs which the firm expects to bill the Town for, including staff travel, clerical and any other in- direct costs. 2. Progress payments are allowable for services ren- dered. The accounting firm will submit a schedule including proposed progress payments for and description of its billing procedure. G. Additional Information 1. Give any additional information considered necessary for fair evaluation of the proposal.