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HomeMy WebLinkAboutRES 310 Draft 01 1988-1992~» COUNTY OF HAVI~ a_.~';,.(STATE OF F3AWAI1 :<, ,. RESOLUTION No. X20 r•~ 4~7HEREAS, Section 10-11 of the Hawaii County Charter requires that any contract, lease or other obligation requiring payment of funds from appropriations of a later fiscal year or of more than one fiscal year he approved by resolution of the Council; and 4~THEFEAS, Section ].0-13 of the Hawaii County Charter requires the County Council to provide for an annual independent audit of the accounts and other evidences of financial transactions of the County and of every county agency and executive agency; and WHEREAS, the Council finds that for economic and consistency reasons, it is in the best interest of the County that the external audit contract be for three consecutive fiscal years, commencing with the audit year ending June 30, 1991. NOtiI, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that pursuant to the requirements of Section 10-11 of the Hawaii County Charter the Council approves that the external audit contract be awarded for three consecutive years commencing with the audit period ending June 30, 1991. BE IT FURTHER RESOLVED that the Council approves the contract language as herein attached. BE IT FURTHER RESOLVED that the Council pursuant to Rule 4 1(h) of_ the Rules of Procedure authorizes the council chairman to sign the contract. BE IT FURTHER RESOLVED that the Council approves the selection of Deloitte & Touche as the external auditors for the three fiscal years ending June 30, 1991, June 30, 1992 and June 30, 1993. Dated at Hilo, Hawaii, this 3rd day of April 1991. - -INTRODUCED BY: ~ 'COUNCIL MEMBER, UNTY OF HAWAII COUNTY COUNCIL County of Hawaii Hilo, Hawaii I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawaii on April 3 , 1991 , ATTEST: De COU~//~K AIRMAN & PRESI ING OFFICER ~+ LA/HAT ROLL CALL VOTE AYES NOES ABS EX ARAKAKI X DE LIMA X DOMINGO X HALE X KOKUBUN X LAI X MAKUAKANE X RUDDLE X SCHUTTE Reference C-2403/FC RESOLUTION NO. '~~~ S7 C O N T R A C T THIS AGREEMENT, made this day of , 1991, by and between the COUNTY OF HAWAII, by the Chairman of the County Council, hereinafter referred to as the "COUNTY," and DELOITTE & TOUCHE, whose business and mailing address is 345 Kekuanaoa Street, Hilo, Hawaii 96720, hereinafter referred to as the "CONTRACT AUDITOR," WITNESSETH THAT: WHEREAS, Article X, Section 10-13, County Charter, County of Hawaii, requires the County Council to provide at least once every year for an independent audit of the accounts and other evidences of financial transactions of the County and of every county agency and executive agency; and WHEREAS, in order to comply with the requirements of the County Charter, the COUNTY desires to engage the services of the CONTRACT AUDITOR to conduct a post-audit; and WHEREAS, the CONTRACT AUDITOR is an accounting firm consisting of certified public accountants, which has had considerable experience in public accounting work and is capable of performing the services required under this contract; and WHEREAS, the services to be rendered hereunder are unique, unusual, technical and professional in nature and accordingly do not admit of competition; and WHEREAS, pursuant to Ordinance Number 90-74, effective July 1, 1990, the County Council appropriated funds for defraying the expenses for the post-audit for the fiscal year ending June 30, 1991, and the cost of the auditing services under this contract is to be paid from funds thus appropriated; and WHEREAS, pursuant to Resolution the County Council approved the authority of the Council Chairman to perform all tasks necessary to enter into a contract for an external audit extending over three fiscal years; and WHEREAS, Resolution further approved that sufficient funds be budgeted in future fiscal years to cover the obligation of the County under the contract agreement. NOW, THF,REFORE, the COUNTY and the CONTRACT AUDITOR agree as follows: 1. SCOPE OF WORK. Except as otherwise expressly provided in this contract, the CONTRACT AUDITOR shall perform all of the work specified and comply with all of the provisions enumerated in the Specifications for a Financial Post-Audit and Systems and Procedures Examination of the County of Hawaii, dated February 1991 (hereinafter referred to as the "Specifications"), and in the Proposal to Conduct a Financial Post-Audit and Systems and Procedures Examination of the County of Hawaii (hereinafter referred to as the "Proposal") submitted by the CONTRACT AUDITOR in response to the Specifications. A copy of the Specifications is attached as Exhibit "A" and a copy of the Proposal is attached as Exhibit "H." The terms and provisions of the Specifications and the Proposal, not inconsistent with the provisions of this contract, are incorporated into this contract by reference. 2. AUDIT PERSONNEL. The services to be performed by the CONTRACT AUDITOR. shall be rendered by or under the personal supervision of competent certified public accountants, experienced in governmental auditing, who will faithfully perform their work with care and diligence. -2- 3. SUBCONTRACT. The CONTRACT AUDITOR may subcontract and/or hire or retain other C.P.A. firms and/or practitioners to assist in performing the audit; provided that the CONTRACT AUDITOR shall remain wholly responsible for the performance of the audit, and for the certification, if any, of the CONTRACT AUDITOR'S report submitted to the COUNTY. 4. REPORTS. The CONTRACT AUDITOR shall furnish such written reports, in a form acceptable to the Chairman of the County Council, as provided in the Specifications. 5. COMPLETION DATE. The CONTRACT AUDITOR will he given notice to proceed immediately upon execution and certification of this contract. Copies of the preliminary draft of the audit report and final report shall be completed by the CONTRACT A[JDITOR on or before the dates provided in the Specifications. 6. LIQUIDATED DAMAGES. It is mutually agreed by and between the parties hereto that time is of the essence of this contract and that in case of the failure on the part of the CONTRACT AUDITOR to submit the preliminary draft on October 3]. and the final report on November 30, unless modified as per the provisions in the Specifications, the County of Hawaii shall be entitled to compensation for liquidated damages at the rate of $50.00 per day for each and every calendar day the CONTRACT AUDITOR fails to meet these deadline. 7. PAYMENT. a. The COUNTY shall pay the CONTRACT AUDITOR for the services rendered under this agreement, a fee based upon the actual man-hours expended in providing the services according to the following schedule of charges: Personnel Classification Partners ......................... Managers ......................... Senior Accountants ............... Staff Accountants ................ Hourly Rate $ 200 130 90 70 -3- In addition, the COUNTY shall reimburse the CONTRACT AUDITOR for the following out-of-pocket expenses actually incurred by the CONTRACT AUDITOR, and approved by the COUNTY, while performing the services required under this contract: (1) Inter-island travel expenses for personnel who must travel to an island other than the island on which their assigned office is situated, including direct air travel costs, taxi and ground transportation, and per diem allowance of 30.00 per day incurred while on travel status. (2) Miscellaneous expenses, such as the costs of report reproduction and long-distance telephone calls. b. The total fee for services rendered, including all out-of-pocket expenses, shall not exceed SEVENTY NINE THOUSAND AND D1O/100 DOLLARS ($79,000.00) for the audit period July 1, 1990 to June 30, 1991, EIGHTY FOUR THOUSAND AND NO/100 DOLLARS ($84,000.00)for the audit period July 1, 1991 to June 30, 1992 and EIGHTY NINE THOUSAND AND NO/100 DOLLARS ($89,000.00) for the audit period July 1, 1992 to June 30, 1993. The fee does not include any work beyond the scope of work specified in the Specifications. Additional services required shall be compensated for as provided in paragraph 8 of this contract. The fee shall be paid in increments as services are actually rendered, as follows: (1) Progress payments shall be made in accordance with the customary billing practices of the CONTRACT AUDITOR upon submission of a certified statement of the hours of services actually rendered and the costs actually incurred during the period covered by the request for progress payment; provided that the cumulative amount of progress payments (exclusive of the final payment) shall not exceed the sum of SEVENTY ONE THOUSAND ONE HUNDRED AND NO/100 DOLLARS ($71,100.00) for the period July 1, 1990 to June 30, 1991, -4- SEVENTY FIVE THOUSAND SIX HUNDRED AND NO/100 DOLLARS ($75,600.00) for the period July 1, 1991 to June 30, 1992 and EIGHTY THOUSAND ONE HUNDRED AND NO/100 DOLLARS ($80,100.00) for the period July 1, 1992 to June 30, 1993. (2) The last installment or final payment shall be made only after the CONTRACT AUDITOR has satisfactorily completed all of the work required hereunder and has submitted to the County Council (a) a certified statement of the number of man-hours of service rendered by the various personnel engaged in this audit and of the out-of-pocket expenses actually incurred, and (b) in accordance with Section 103-53, Hawaii Revised Statutes, a tax clearance from the State Director of Taxation, showing that all delinquent taxes levied or accrued against the CONTRACT AUDITOR under State statutes have been paid. (3) Progress billings will be distinguishable between the County audit, Department of Water Supply audit and the Single Audit. c. The audit fees as agreed upon are contingent upon adequate funds being appropriated in each of the respective fiscal years. Should funds not be available this contract shall be subject to renegotiation. 8. ADDITIONAL SERVICES. If the CONTRACT AUDITOR finds that the condition of the records and the system of internal control or other circumstances disclosed by the audit examination make it necessary to extend the scope of the examination or indicate that a more detailed examination is required, in addition to that which would be sufficient under ordinary circumstances, he shall notify the Chairman of the County Council in writing. The notification shall -5- include all ascertainable facts relative to the extraordinary circumstances and an estimate of the additional services required and the cost thereof. The Chairman of the County Counci] may, whenever deemed advisable, request the CONTRACT AUDITOR to extend the scope of the examination or make a more detailed examination. No such additional services, however, shall be performed by the CONTRACT AUDITOR until a written authorization is received from the Chairman of the County Council. Such authorization shall contain the additional scope of work or examination to be performed and the additional compensation to be paid. 9. The COUNTY shall furnish the following to the CONTRACT AUDITOR: a. All financial records, books of account., supporting documents, and other related records. b. Adequate working space and other facilities for the conduct of examination. c. Assistance of personnel as is considered necessary, including typing of confirmation and correspondence, Xeroxing, preparation of general ledger trial balances and supporting schedules, and preparation of other schedules and analyses agreed upon by the Director of Finance and the CONTRACT AUDITOR. 10. CONTRACT NOT BINDING UNLESS PROPERLY EXECUTED AND APPROPRIATION AVAILABLE This contract shall not be binding or of any force unless it has been fully and properly executed by all of the parties hereto and unless the Director of Finance of the County has indorsed thereon his certificate that there is available an unexpended appropriation or balance of an appropriation, over and above all outstanding contracts, sufficient to cover the amount required hereunder. -6- 11. All words used herein in the singular shall extend to and include the plural. All words used in the plural shall extend to and include the singular. All words used in any gender shall extend to and include all genders. 12. NON-DISCRIMINATION IN COUNTY CONTRACTS. During the performance of this contract, the CONTRACT AUDITOR agrees as follows: a. The CONTRACT AUDITOR will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The CONTRACT AUDITOR will assure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination;"rates of pay or other forms of compensation; and selection for training. The CONTRACT AUDITOR agrees to post in conspicuous places notices to be provided by the contracting officer setting forth the provisions of the non-discrimination clause. 13. NON-GRATUITY AFFIDAVIT. The attached non-gratuity affidavit (Exhibit "C") signed by the CONTRACT AUDITOR is considered a part of this contract. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed as of the day and year first above written. COUNTY OF HAWAII By Chairman, County Council By rtner -7- STATE OF HAWAII ) ss. COUNTY OF HAWAII ) On this day of , 1991, before me appeared , to me personally known, who, being by me duly sworn, did say that he is the Council Chairman of the County of Hawaii, a municipal corporation, and that the seal affixed to the foregoing instrument is the corporate seal of the said County of Hawaii, and that the said instrument was signed and sealed on behalf of the said County of Hawaii by authority of its County Council, and the said acknowledged the said instrument to be the free act and deed of said County of Hawaii. Notary Public, Third Judicial Circuit, State of Hawaii My commission expires: STATE OF HAWAII ) ss. CITY AND COUNTY OF HOr10LULU) On this day of , 1991, before me personally appeared , to me known to be the person described in and who executed the foregoing instrument and acknowledged that he executed the same as his free act and deed. Notary Public, First Judicial My commission expires: APPROVED AS TO FORM: Corporation Counse County of Hawaii Date: -$- EXHIAIT "C" NON-GRATUITY AFFIDAVIT (A release form to be executed and filed by contractor before final payment is made,) Contractor STATE OF HAWAII ) SS: CITY AND COUNTY OF HONOLULU) Contract No. The undersigned hereby certifies that he is the Consultant in connection with the above contract/project, he has not given or made any agreement to give any County of Hawaii employee, the employee's relatives or agents any gift of money or otherwise, or anything of value; has not been influenced by any County of Hawaii employee, the employee's relatives or agents in the renting or purchasing of any equipment or supplies of any nature whatsoever. Subscribed and sworn to before me this day of 1991. Notary Public, First Judicial Circuit, State of Hawaii. My commission expires: JOHN A. WAGNER County Clerk ROBERT S. SHIOII Deputy County Clerk HARRY A.TAKAHASHL Legislative Auditor OFFICE OF THE COUNTY CLERK County of Hawaii Hawaii County Building March 20, 1991 25AupuniSnect Hilo, Hawaii %720 TO': Councilmembers FROM: Harry A. Takahashi, Legislative Auditor SUBJECT: External Audit Contract for Three Consecutive Fiscal Years Commencing with the Audit Period Ending June 30, 1991 Attached please find a resolution which 1) authorizes an external audit contract term of three consecutive years commencing with the audit period ending June 30, 1991, 2) approves the contract language as attached, 3) authorizes the chairman to sign on behalf of the Council and 4) awards the contract to Deloitte & Touche, certified public accountants. The selection of Deloitte & Touche was based upon their fees being the lowest. The net submittals of all three firms were as follows: 1991 1992 1993 Total Akamine, Oyadomari $85,000 $89,000 $93,000 $267,000 & Kosaki Deloitte & Touche $79,000 $84,000 KPMG Peat Marwick $85,000 $89,300 Although the proposed fees were close, Deloitte were the lowest for all three years. We have also reviewed each of the proposals and appear to be any exceptions. All three proposa utilize local resources. $89,000 $252,000 $93,800 $268,100 & Touche's fees there did not Ls planned to Due to limited copies, proposals are on file in this office. Atts. -~=~ ~ '~ oZ'~~3 COMM. NO..-•-----~ To: fC ~