HomeMy WebLinkAboutCherry,Bekaert and Holland LLP
Augusta Richmond GA
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February 19, 1997
Honorable Mayor Larry Sconyers
and Commissioners
Augusta-Richmond County, Georgia
530 Greene Street
Augusta, GA 30911
Dear Mayor Sconyers:
On February 18, 1997, the Commission approved the internal audit contract with Cherry, Bekaert
& Holland, LLP, which includes a key man provision and a thirty day cancellation provision. Tllis
letter describes our understanding of the engagement to provide the services of the Internal Audit
Department for the period beginning February 19, 1997 through December 31, 1998.
Cancellation Provision
Our contract will continue in force until the above expiration date or expire thirty days after we
receive written notification of the contract cancellation by a majority vote of the Commissioners.
Key Man Provision
We recognize that Kip Plowman, Partner of Cherry, Bekaert & Holland, LLP, is an integral part of
this contract. He will serve as the Director of Internal Audit and will provide direct contact with the
Mayor and Commissioners.
If Kip Plowman is no longer associated with Cherry, Bekaert & Holland, LLP, we agree that this
contract will terminate thirty days after his departure.
Scope
We will plan and detemune 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, 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, your total time 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:
Cherry, Bekaert & Holland, L.L.P.
1029 Greene Street (3090 I) . P.O. Box 2247 . Augusta, GA 30903 . (706) 724-3557 . Fax (706) 724-1667
Offices Throughout The Southeast. Represented Internationally Through Summit International Associates, Inc.
. 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.
We will provide monthly reports to the Audit Committee.
Budget
We have budgeted a minimum average of350 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
montWy 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. Invoices will be rendered
montWy and are payable upon presentation.
If this letter represents your understanding, please sign the approval portion below.
Respectfully submitted,
CHERRY, BEKAERT & HOLLAND, L.L.P.
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Approved:
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Title
Date
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Notary P lie
r~otary pub~ol.Coiumpla County, Georgia
My CommIssIon Expires June 21, 1998