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HomeMy WebLinkAboutBaird and Company Augusta Richmond GA DOCUMENT NAME, 13 01 ref ond COfV\F'l DOCUMENT TYPE: Conlrticf YEAR, ! q9(g BOX NUMBER: ), FILE NUMBER: I ') qLj;) 4 NUMBER OF PAGES: ~:mpany CERTIFIED PUBLIC ACCOUrITANfS & FINANCIAL ADVISORS SINCE 1927 Certified Valuation Anaryst Certified Financial Planners Certified Fraud Examiner Personal Financial Specialists John P. Gi/lion.Jr., CPA, CFP, PFS /. T. Cosnahall, CPA, CFE Robert D. Huntlry.Jr.. CPA Kip Plowman, CPA. CVA APPROVED OCT 1 1996 September 23, 1996 (AUGUSTA-R/CHMONO COUNTY COMMISSION) Honorable Mayor Larry Sconyers and Commission-Council Augusta-Richmond County, Georgia 530 Greene Street Augusta, Georgia 30911 Dear Mayor Sconyers: This will confirm our understanding for our engagement to con~~~ performing the services of your Internal Audit Department for the ~year period beginning October 1, 1996 through December 31, 1999. This agreement may be terminated by either party upon written notice to be given no later than October 1, to be effective as of December 31 during the term of this agreement. The long-term contract will allow us to devote additional resources and increase the effectiveness and coverage of the audited areas. I will remain designated to serve as the in-charge partner. We will plan and determine the nature, timing and extent of internal audit procedures. The selection of locations and departments to be audited will be determined and prioritized according to those which we believe offer the best chance for a tangible return on the time required. We will discuss our plans, strat:egies and results with the audit committee for their approval. In establishing the schedule of departments and activities to be audited, the major considerations will be the importance of each activity, the total number of acti,'ities to review, the total time of you and the period of time since the last audit. In addition, we will perform surprise audits which are designed to review records and activities of which time may be of essence. Even though planning and scheduling the audit procedures is the critical component to a cost-effective audit department, the following types of incidents may occur which will delay scheduled audit procedures: . Unexpected and unplanned work that is necessary when a large loss situation or an employee defalcation is detected. . Specific requests for audits from elected officials. . Anonymous information or tips that indicate the possibility of a problem. . Investigation of reports received from EthicsLine. 81 I Telfair Street 1 Augusta. Georgia 30901 / Telephone (706) 722 - 3595/ Telefax (706) 722 - 0112 , ' Honorable Mayor Larry Sconyers September 23, 1996 Page 2 We will provide monthly reports to the Audit Committee. All disputes arising under this agreement shall be submitted to mediation. Each party shall designate an executive officer or principal empowered to resolve the dispute. Should the designated representatives be unable to agree on a resolution, a mediation service acceptable to both parties shall select a mediator to mediate the dispute. Each disputing party shall pay an equal percentage of the mediator's fees and expenses. No suit or arbitration proceeding shall be commenced under this agreement until at least 60 days after the mediator's first meeting with the involved parties. We have budgeted a minimum average of 350 professional audit hours per month. Our fee for these services is $15,000 per month plus actual out-of-pocket costs. Our out-of-pocket costs will include travel, audit supplies, equipment/software, telephone, postage, and specialized training. Our monthly expenses will not exceed $1,000 unless approved by the audit committee. To prevent an economic reduction from inflation, we will increase our fee each January 1 by the average annual percentage of employee salary increase not to exceed five percent each. Invoices will be rendered monthly and are payable upon presentation. If this letter expresses your understanding, kindly sign the enclosed copy where indicated. BAIRD & COMPANY Certified P b ic Accountants Kip Plowman, CPA, CVA Partner KMP:aes By: APPROVED: Title: Date: . '~:mpany CERTIFIED PUBLIC ACCOUmANTS & FINANCIAL ADVISORS SINCE 1927 Certified Valuation Anaryst Certified Financial Planners Certified Fraud Examiner Personal Financial Svecialists John P. GiJ/ion, Jr.. CPA. CFP, PFS /. T. Cosnahall, CPA. CFE Roben D. Huntlry. Jr.. CPA Kip Plowman. CPA. CVA October 3, 1996 Honorable Mayor Larry Sconyers and Commission-Council Augusta-Richmond County, Georgia 530 Greene Street Augusta, Georgia 30911 Dear Mayor Sconyers: On October 1, 1996, the Commission approved extending the internal audit contract for two years. This will confirm our understanding for the engagement to continue performing the services of your Internal Audit Department for the two year period beginning January 1, 1997 through December 31, 1998. The long-term contract will allow me to devote additional resources and increase the effectiveness and coverage of the audited areas. I will remain designated to serve as the Director of Internal Audit. I will plan and determine the nature, timing and extent of internal audit procedures. The selection of locations and departments to be audited will be determined and prioritized according to those which we believe offer the best chance for a tangible return on the time required. I will discuss our plans, strategies and results with the audit committee for their approval. In establishing the schedule of departments and activities to be audited, the major considerations will be the importance of each activity, the total number of activities to review, the total time of you and the period of time since the last audit. In addition, I will perform surprise audits which are designed to review records and activities of which time may be of essence. Even though planning and scheduling the audit procedures is the critical component to a cost-effective audit department, the following types of incidents may occur which will delay scheduled audit procedures: . Unexpected and unplanned work that is necessary when a large loss situation or an employee defalcation is detected. . Specific requests for audits from elected officials. . Anonymous information or tips that indicate the possibility of a problem. IH 1 Telfair Street 1 Augusta. Georgia 30901 / Telephone (706) 722 - 3595 / Telefax (706) 722 - 01 J2 ,., .' f' . . Honorable Mayor Larry Sconyers October 3, 1996 Page 2 . Investigation of reports received from EthicsLine. I will provide monthly reports to the Audit Committee. All disputes arising under this agreement shall be submitted to mediation. Each party shall designate an executive officer or principal empowered to resolve the dispute. Should the designated representatives be unable to agree on a resolution, a mediation service acceptable to both parties shall select a mediator to mediate the dispute. Each disputing party shall pay an equal percentage of the mediator's fees and expenses. No suit or arbitration proceeding shall be commenced under this agreement until at least 60 days after the mediator's first meeting with the involved parties. I have budgeted a minimum average of 350 professional audit hours per month. The fee for these services is $15,000 per month plus actual out-of-pocket costs. The out-of-pocket costs will include travel, audit supplies, equipment/software, telephone, postage, and specialized training. The monthly expenses will not exceed $1,000 unless approved by the audit committee. To prevent an economic reduction from inflation, I will increase our fee each January 1 by the average annual percentage of employee salary increase not to exceed five percent each. Invoices will be rendered monthly and are payable upon presentation. If this letter expresses your understanding, kindly sign the enclosed copy where indicated. BAIRD & COMPANY c~e~~ccountants I --vI /- ~ Kip Piowman, CPA, CVA Internal Auditor KMP:aes APPROVED: By: Title: Date: