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:
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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: