Loading...
HomeMy WebLinkAbout136-84 RESOLUTIONRESOLUTION ND. J36-84 SCANNED. A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT WITH ARTHUR YOUNG & COMPANY FOR FINANCIAL, COMPLIANCE AND PERFOR- MANCE AUDITS FOR THE YEARS 1985 THROUGH 1977. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the Mayor and City Clerk are hereby authorized and directed to execute a contract with Arthur Young & Company for financial, compliance and performance audits for the years 1985 through 1988 at the following fees: 1985 - $53,200.00. 1986 - $57,200.00 1987 - $61,800.00 1988 - $47,000.00 A copy of the contract authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 20th day of November , 1984. • APPROVED • • ,c. CITY OF FAYETTEVILLE, ARKANSAS FINANCIAL AUDIT CONTRACT SECTION I - NAME OF CONTRACTING PARTIES This agreement entered into this 20th day of November, the City of Fayetteville, State of Arkansas, hereafter as the City, and Arthur Young and Company, Certified Public hereafter referred to as the auditor. The parties hereto agree as follows: SECTION II - AUDIT SCHEDULE 1984 between referred to Accountants, 1. The Auditor shall conduct an examination of the records, accounts, and procedures of the City for the years 1984- 1987. 2. Either party may terminate the agreement by giving written notice to the other party not later than ninety days before the beginning of the fiscal year for which the next audit is to be performed. SECTION III - SCOPE OF AUDIT 1. The examination shall include all funds of the City and all grants of the City. 2. The Auditor shall express an unqualified opinion on the financial statements for all funds. If unable to express an unqualified opinion, the Auditor shall state the reasons for qualification or disclaimer of opinion. 3. The desired list of statements and schedules to be included in the audit report is shown by Schedule A. 4. Three weeks after each year end, the City will have closed and balanced all accounts. 5. The City shall also supply additional financial and statistical information, not subject to examination by the Auditor, but necessary to substantially conform to the principles and standards of public financial reporting prescribed by the National Committee on Governmental Accounting. Page 1 of 5 6. The City shall provide working space for the Auditor to efficiently conduct the examination. 7. A "Management Letter" directed to the Board of Directors reflecting determinations subsequent to review of procedures and controls is required. Where appropriate, recommendations for system improvements are to be included, and the Auditor may be requested to provide assistance to implement recommen- dations and follow-up. The Auditor will be required to meet with the City Manager and Board of Directors to explain the audit report and management letter and answer questions that may arise. 8. A report on internal control and compliance in accordance with the audit guide and standards of revenue sharing and anti -recession fiscal assistance recipients is required. 9. The audit services provided shall be pursuant to OMB A-102, Attachment P. A copy of Attachment P and the General Accounting Office Guidelines for Financial and Compliance Audits of Federally Assisted Programs and the Supplement covering mayor compliance features of programs administered by state and local governments will be made available upon request for review. 10. Auditors must use existing personnel to the fullest extent possible to compile data, prepare workpapers, prepare schedules, and etc. This is required to keep the cost of the audit at a minimum. Prior years' workpapers are available for review to show the extent the City staff has been used on prior audits. SECTION IV - AUDITING STANDARDS The examination shall be made in accordance with generally accepted auditing standards as adopted by the membership of the American Institute of Certified Public Accountants (AICPA) in the statement of Auditing Standards No. 1, "Codification of Auditing Standards and Procedures". The examination shall be made in accordance with OMB's circular A-102, Attachment P and the General Accounting Office Guidelines for Financial and Compliance Audits of Federally Assisted Programs and the supplement covering major compliance features of programs administered by state and local governments. Fa Page 2 of 5 • 11 11 • The examination shall also be made in compliance with the laws of Arkansas and the requirements of the United States Department of the Treasury's Office of Revenue Sharing as they pertain to the Revenue Sharing and Anti -recession Fiscal Assistance program. SECTION V - AUDITING PROCEDURES 1. The examination shall be made in accordance with generally accepted governmental auditing procedures as prescribed by the National Committee on Governmental Accounting in Governmental Accounting, Auditing and Financial Repotting and by the AICPA in the Industry Audit Guide -Audits of State and Local Governmental Units. 2. The Auditor shall review the audit program with the City identifying the records to be audited and procedures to be followed. The City may require the Auditor to include in the audit additional records and procedures which are generally accepted as defined in provision V.1. above. SECTION VI - COMPENSATION AND TERMS OF PAYMENT 1. The City shall pay the Auditor according to billing rates shown in Schedule B for services rendered. The total payment to the Auditor shall not exceed the maximum not to exceed cost given in Schedule B for the four yearly periods. 2. If unusual circumstances are encountered making it necessary for the Auditor to do added work, the auditor shall immediately report such conditions to the responsible City officials and both parties may negotiate such additional compensation as appears justified. 3. Periodic progress billings may be submitted as work progresses, but not more often than monthly and not more than 75% of the estimated cost of audit services will be paid during the yearly audit period. The remaining 25% will be paid after total yearly contract fulfillment. SECTION VII - AUDIT REPORT The Auditor shall provide 70 copies of the audit report which should be printed on regular letter size (81/2" x 11") paper, using both sides of the page whenever possible. The Auditor shall also provide a master copy suitable for reproduction by the City. • Page 3' of 5 • • The audit report must be completed and the final reports prepared not later than 90 days after the closing of the books. The City prefers to have the reports one week before the deadline. SECTION VIII - INTEREST OF AUDITOR Auditor covenants that neither it or any of its members presently has any interest and shall not acquire any interest, direct or indirect, financial or otherwise, that would conflict in any manner or degree with performance of service hereunder. Auditor certifies that no one who has or will have, during the course of the firm's audit contract, any financial interest under this agreement as an officer or employee of city. • SECTION IX - NON -ASSIGNABILITY Both parties recognize that this services and cannot be transferred, party without prior written consent SECTION X - WORKMEN'S COMPENSATION contract is one for personal assigned, or sublet by either of the other. By executing this agreement, auditing firm certifies that it is aware of the provisions of Ark. Stat. Ann. Sec. 81-1305, which requires every employer to pay or provide compensation for an employee's disability or death from injury arising out of or in the course employment and certifies that it will comply with such provisions before commencing the performance of the work of this agreement. SECTION XI - COMPLETENESS OF AGREEMENT This document contains all the terms and conditions of this agreement, and any alterations or variations of the terms of this agreement shall be invalid unless made in writing and signed by the parties. There are no other understandings, representations, or agreements, written or oral, not incorporated herein. SECTION XII - AUDIT WORKPAPERS A copy of the audit workpapers will be presented to the City at the completion of the audit which will become the property of the City when final payment is made. Page 4 of 5 CITY OF FAYETTEVILLE, ARKANSAS By;; - 3 = a z €Mayor r •. 4 ATTEST• ARTHUR YOUNG AND COMPANY ty Clerk By: + ATTEST: Page 5 of 5 • • Y SCHEDULE A SCOPE OF AUDIT WORK TO BE PERFORMED CITY OF FAYETTEVILLE, ARKANSAS COMPREHENSIVE ANNUAL FINANCIAL REPORT Report of Certified Public Accountants Combined Statements - Overview "Liftable" General Purpose Financial St Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget (GAAP Basis) and Actual - General and Special Revenue Fund Types Combined Statement of Revenues, Expenses, and Changes in Retained Earnings/Fund Balances - All Proprietary Fund Types and Similar Trust Funds Combined Statement of Changes in Financial Position - All Proprietary Fund Types and Similar Trust Funds Notes to Financial Statements Financial Statements of Individual Funds: General Fund Comparative Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Statement of Revenues - Budget and Actual Statement of Expenditures By Type - Budget and Actual Statement of Expenditures Compared to Budget Special Revenue Funds (Community Development Block Grant, Revenue Sharing, Public Works, Advertising and Promotion, Off -Street Parking, and Arts Center Funds) Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Community Development Block Grant Fund: Comparative Balance Sheet StatementofRevenues and Expenditures - Budget and Actual Statement of Revenues - Budget and Actual. Statement of Expenditures - Budget and Actual Revenue Sharing Fund: Comparative Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Departmental Transfers Compared to Budget Public Works Fund: Comparative Balance Sheet Statement of Revenues. Expenditures and Changes to Fund Balance Statement of Revenues - Budget and Actual Statement of Expenditures Compared to Budget City Advertising and Promotion Fund: Comparative Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Off -Street Parking Fund: Comparative Balance Sheet Statement of Revenues. Expenditures and Changes in Fund Balance Arts Center fund: Comparative Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Debt Service Funds (1978 General Obligation Bond Fund) Comparative Balance Sheet Comparative Statement of Revenues. Expenses and Changes In Funds to be Provided Table of Contents - Capital Projects Funds: Combining Balance Sheet Combining Statement of Revenues. Expenditures and Changes in Fund Balance 1978 General Obligation Construction Fund: Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Replacement Fund: Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance City Hall Renovation Fund: Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Special Assessment Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes to Fund Balance Sewer Assessment Fund: Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance 1970 Street Improvement Fund: Balance Sheet Statement of Revenues, Expenditures and Changes in Fund - Balance Enterprise Funds: Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Retained Earnings Combining Statement of Changes in Financial Position Airport Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings Statement of Changes in Financial Position Statement of Revenues Statement of Operating Expenses, Compared to Budget Statement of Changes in Fund Equity Continuing Education Center and Parking Facility Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings Statement of Changes in Financial Position Statement of Changes in Retained Earnings Industrial Park Fund: Balance Sheet Statement of Revenues. Expenses and Changes in Retained Earnings Statement of Changes in Financial Position Water and Sewer Balance Sheet Statement Statement Statement Statement Statement Statement • Fund: of Revenues and Expenses of Changes in Fund Equity of Changes in Financial Position of Operating Expenses of Departmental Revenues of Changes in Fixed Assets and Expenses Table of Contents Sanitation Fund: Balance Sheet Statement of Revenues and Expenses Statement of Changes in Fund Equity Statement of Changes in Financial Position Statement of Operating Expenses Statement of Changes in Fixed Assets Internal Service Fund - Shop Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual Statement of Changes in Financial Position Fiduciary Funds: Combining Balance Sheet Pension Trust Funds - Combining Statement of Revenues, Expenses and Changes in Fund Balance Pension Trust Funds - Combining Statement of Changes in Financial Position Expendable Trust Fund (Downtown Gardens Fund): Statement of Revenues, Expenditures and Changes in Fund Balance Firemen's Pension and Relief Fund: Balance Sheet • Statement of Revenues, Expenses and Changes in Fund Balance Statement of Changes in Financial Position Police Pension and Relief Fund: Balance Sheet Statement of Revenues. Expenses and Changes in Fund Balance Statement of Changes In Financial Position Municipal Judge Retirement Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Fund Balance Statement of Changes in Financial Position Money Purchase Pension Plan Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Fund Balance Statement of Changes In Financial Position Returned Check Fund - Balance Sheet Payroll Fund - Balance Sheet General Fixed Asset Account Group Statement of Changes In Property. All Governmental Type Funds Additional Information Enterprise Funds: Summary of Bonded Indebtedness General Obligation Debt: Summary of Bonded Indebtedness All Funds Summary of Budget Change Schedule of Financial Status of Active Federal Grants Plant and Equipment • • Time Period I. Year ending 12-31-84 II. Year ending 12-31-85 III. Year ending 12-31-86 IV. Year ending 12-31-87 x Schedule B CITY OF FAYETTEVILLE FINANCIAL AUDIT CONTRACT FEE PROPOSAL Estimated Price 11 Personnel Hrs./ Cost 1,400 1,400 1,400 1,400 $38,500 $41,000 $44,000 $47,000 T.. Maximum Not -To -Exceed Cost $38,500 $41,000 $44,000 $47,000 Billing,Rates 1984 1985 1986 1987 Partner $125 x x x Manager $ 60 x x x Senior $ 38 x x x Staff $ 28 x x x Same as 1984 adjusted for years increase or decrease in CPI not to exceed 10% increase per year. It is also agreed that if circumstances enable us to perform the audit in less personnel hours than shown above that Arthur Young will only bill the city for the hours worked times the billing rate. nip Schedule C CITY OF FAYETTEVILLE PROFESSIONAL CONTRACT POLICY (Adopted April 21, 1981) The following are the guidelines to be followed in obtaining all professional contracts over $5,000 (see note 1) for the City of Fayetteville excluding Community Development. The City Board may waive submission of proposals under this policy by a majority vote. 1. Scope of Work The staff shall develop or procure professional help to develop the scope of the project. The scope will be developed in such a manner that proposals for the project may be requested from professional organizations. If the City staff must procure professional help to develop the scope, the involved City Department Head(s) and City Manager shall choose the most advantageous professional firm after receiving rate quotations and negotiations of the price. Contract will then be reviewed by the City Attorney and Finance Director and recommended to the Board. 2. Proposals Proposals shall be solicited from an adequate number of qualified sources to permit reasonable competition. Proposals will be made only on the scope developed and shall include the following: A. Qualifications in Relation to Specific Project to be Performed - Information reflecting qualifications of the firm. indicate specialized experience and technical competence of the firm in connection with the type and complexity of the service required. Subcontractors, if used, must be listed with information on their organization. B. Experience, Competence, and Capacity for Performance - Information reflecting the names, titles, and qualifications (including experience and technical competence) of the major personnel assigned to this specific project. Provide detailed breakdown of subcontractor's staff to, be used and how they are to be used to supplement your staff C. Proposed Method of Doing Work - A proposed work plan (description of how the project would be conducted as well as other facts concerning approach to scope you wish to present) indicating methods and schedules for accomplishing each phase of the work. Include with this the amount of work presently undervay. D. Past Performance - Previous evaluations (as set forth in number 5) shall be considered a significant factor. If previous evaluations with this City are not available, the professional firm's past performance records with City and others will be used, including quality of work, timely performance, diligence, ability to meet past budgets, and any other pertinent information. (Later information to be used only untilevaluation system has had time to be developed.) Firm will provide list of similar jobs performed and person whom we can contact for information. C-1 Proposal Evaluation and Negotiation Proposal. evaluation and negotiation shall consist of three steps: STEP A - Selection of top qualifying firms: Description Maximum Points A. Qualifications in relation to specific project to be performed 25 B. Experience, competence, and capacity for performance 20 C. Proposed method of doing work 20 D. Past Performance 10 Sub -total points 75 Proposals will be reviewed by the selection committee using the above selection criteria. Each member of the committee'will assign points to each criteria based on the content of the proposal. The three firms receiving the highest accumulated sub -total points, as rated by the selection committee, will move on to step B. All other firms submitting proposals will be notified in writing and thanked for their interest in the project. STEP B - Selection of the top rated firm: The three firms receiving the highest accumulated sub -total points will be asked for the following information: Description Maximum Points E. Price - Total estimated price of your professional services for this project. The total estimated price must be reasonably accurate. Also, maximum cost for "maximum not to exceed" clause and additional service rates information shall be given. 25 Total points 100 The selection committee will rate this criteria (as in Step A above) awarding up to a maximum of 25 points. These points will be combined with the assigned points in Step A to arrive at "Total Points" (maximum of 100). The firm receiving the highest accumulated "total points" will move into Step C. STEP C - Negotiation The selection committee will then negotiate to achieve the most advantageous contract for the City starting with the selected firm (firm with the highest accumulated "total points" from Step 6). 1.4 C-2 If, after reasonable effort, a contract cannot be necotiated within available funds, the negotiations with the selected firm shall be terminated. The firm will be requested to submit in writing a best and final offer and the selection committee will move negotiations to the next highest accumulated "total points" firm. This will continue until a mutually satisfactory contract is achieved. At this time the other two firms from Step B will be notified in writing and thanked for their interest in the project. The selection committee's membership will consist of the City Manager (or representative), the Finance Director, the involved department heads, any board members wishing to serve, and any other persons not involved in any way with any organizations submitting proposals (who are appointed by the Board). The selection committee membership may be changed by the Board of Directors. 4. Contract Award and Details: The selection committee will recommend, after negotiations and review by the City Attorney and Finance Director, the most advantageous contract to the Board for awarding. If the scope of the project is substantially chanced, a new proposal will be solicited before any additional work is performed. The "maximum not to exceed clause" will then be amended on the contract after approval by the Board. 5. Professional Project Evaluations: Upon completion or termination of a contract, the department head responsible for the project will submit a summary evaulation of the pro- fessional firm's handling of the project to include the following data: (a) name of professional firm (b) date of contract and date of completion (c) cost as stated in initial contract, amount paid, and reason for any difference (d) special strengths exhibited by professional firm (e) problems or weaknesses in professional firm's handling of the project (f) adherence to time schedule by the professional firm (g) names of key personnel working on the project and comments on their adequacy The summary evaluation will be submitted to the City P.anaaer for review and comments and then filed in the City Clerk's records. copy will be sent to the professional firm. Written comments received from the professional firm regarding the evaluation will be filed in the City Clerk's records. C-3 • a • NOTE 1: Minor contracts, $5,000 and below, shall have the involved Department Head and City Manager choose the most advantageous organization after receiving price quotations and negotiations of the price. Contract will then be reviewed by City Attorney and Finance Director and recommended to the Board. • C-4 • SCHEDULE E CITY OF FAYETTEVILLE, ARKANSAS DESCRIPTION OF COMPUTER SYSTEM The following is a synopsis of the data processing department with a description of the staff, equipment, and software both existing and planned. I. DATA PROCESSING STAFF A. Data Processing Supervisor: 1. Provide objective evaluation and training of each employee to encourage the continued development of the employee's job knowledge and to help the employee reach a pre-set goal in job performance. 2. Supervise data processing personnel which includes job assignment and evaluation of job performed. 3. Assist in the training of each user department in the proper operation of their system, including the additions and changes made to the system. Provide consultation as to the resolution of problems which may arise in the user software. 4. Coordinate the scheduling of user jobs to provide maximum effectiveness of the computer hardware. 5. Insure the system file and account saves, restructure of files, and preventative maintenance are done on a regular basis. 6. Interact with other departments as to the needs of that department in relation to the computer, make recommendations to the Finance Director as to the needs of these departments to enable ranking of the project. 7. Evaluate problems with user software to determine changes to be made; and either make the changes or assign changes to the programmer. 8. Review documentation of all user systems to insure that it is accurate and clearly understood. Schedule E - City of Fayetteville, Arkansas Description of Computer System Page E-2 9. Evaluate problems with system hardware and software to determine the proper course of action needed; and either take such action or make recommendations to the Finance Director as to what action to take. 10. Preparation of following reports: a. Payroll time sheets and b. Evaluation of employees c. Charge computer time to d. Purchase order requests supporting documentation. on job performance. other departments. and orders. 11. Performs other tasks as assigned. B. Programmer/Analyst: 1. Maintain and modify existing software systems to improve efficiency and ease of operations. 2. Assist Data Processing Supervisor in the analysis of user desires and requirements in order to develop an effective computer software system based on user requirements. 3. Development, flow charting, programming, entry and testing of new system software to perform to the specification set forth by the user. 4. Software documentation on new and existing systems to minimize program maintenance time and user/operator confusion. 5. Assist in user training on new and or modified software systems to maximize efficiency of the system and minimize user/operator difficulties. 6. Assist in system software maintenance by restructuring files and upgrading to new system software releases. 7. Fill in for Data Processing Supervisor when he is on vacation. 8. Performs other tasks as assigned. C. Input/Operator: 1. Knowledge of input procedures for all systems. • • Schedule E - City of Fayetteville, Arkansas Description of Computer System Page E-3 • 2. Input information for other departments when there is a work overflow situation. 3. Balance input to insure accuracy of data entry. 4. Assist other departments in resolving problems associated with data entry. 5. Assist in training of other personnel in data entry to various systems. 6. Performing all duties associated with the operation of the computer under the supervision of the Data Processing Supervisor including, but not limited to: a. Change paper and forms in printer. b. Run reports for other department on a requisition basis. c. Bursting and decolating reports and forms. d. Changing of ports as necessary for continued operation of CRTs. e. Preparing for File Saves and Account Saves. f. Perform Account File Restructures. g. Keep inventory of supplies and advise Data Processing Supervisor when it is time to order. 7. Performs other tasks as assigned. II. DATA PROCESSING EQUIPMENT A. Microdata Reality 8000 (1) 1. 512 K of main memory 2. 256 Meg of disk storage 3. 16 CRTs 4. 8 port printers 5. 1 line printer B. Corona Personal Computers (5) 1. 512 K of main memory 2. 10 Meg hard disk storage 3. 1-360 K 5-1/4 inch disk drive 4. 2 Qume letter -quality printers 5. 2 Epson dot-matrix printers • • Schedule E - City of Fayetteville, Arkansas Description of Computer System Page E-4 III, EXISTING MICRODATA SOFTWARE SYSTEMS A. Utility Billing - keeps track of accounts receivable, calculates and bills water, sewer, fire protection, sanitation and other charges. An account history is also maintained of all active accounts and finaled accounts which have a balance due. B . Parking Ticket System - accounts receivable and name and address information are kept on file for the monthly processing of warrants on unpaid parking tickets. C. Inventory Systems 1. Shop Inventory - keeps records of parts on hand in the maintenance shop. 2. W/S Operations - keeps records of pipe and fittings on hand, for the maintenance and construction of the water and sewer system. D. Vehicle Maintenance - keeps record of gas, oil and maintenance charges for each vehicle. Also calculates cost per mile on a monthly, YTD and accumulated (from purchase) basis. E . Investments - keeps a record by fund of investments purchased, cashed and on hand during the year. F. Fixed Assets/Depreciation - keeps a record of fixed assets in the Water and Sewer Fund, Airport Fund, General Fund, Public Works, and Sanitation Fund. This sytem will also calculate and keep record of depreciation on these funds. G. Hotel, Motel and Restaurant Tax Package - keeps record of the name, address, and tax payment information for all restaurant, motels and hotels within Fayetteville City limits. H . W/S Construction in progress - keeps a record of W/S construction projects showing amount budgeted, expensed and balance to complete project. I. Municipal Court Package - processes both the City and County Municipal Court functions as specified in Act 11332 of 1977. This system provides for name and address maintenance, individual docket history, automatic spreading of assessments, internal control on cash and accounts receivable receivable, issuance of warrants and commitments, and audit trails. fi r Schedule E - City of Fayetteville, Arkansas Description of Computer System Page E-5 J.' Accounts Receiveable System - miscellaneous billing billed through the Accounting Office. K. Parking Card System - Billing for parking cards used on the various city parking lots. L. Fund Management System - This system automates the fund accounting to provide more timely financial information. It is presently being modified to provide a better picture of the accounts payable. IV. FUTURE.MICRODATA APPLICATIONS A. Payroll System - The payroll system will keep track of information for the EE04 report and will also interact with the Fund Management System. Expected implementation date January 1, 1985. B. Planning, Zoning, and Inspection Package - keeps a record of pertinent planning, zoning, and inspection information and their status. Exact specification to be determined at a later date. C. W/S Taps - record of status and location of W/S taps for a three year period. D. Police Uniform Crime Reporting System. E. Police Dispatch System. F. Civil and Small Claims Court System - automate the functions of these courts. V. EXISTING CORONA SOFTWARE SYSTEMS A. Word Perfect - This word processing system is used extensively by the City Clerk - the Planning Office - and the City Counselor's office. B. Lotis 1-2-3 - This spread sheet program will be used by the finance section for a large variety of jobs. C. Revelation - This is being used to interface with the Microdata System. Q1.1 A MEMBER OF ARTHUR YOUNG INTERNATIONAL • MHO inn January 28, 1985 Mayor Paul Noland City of Fayetteville P.O. Drawer F Fayetteville, Arkansas 72702 Dear Mayor Noland: 4210 North Frontage Road P.O. Box 1187 Fayetteville, Arkansas 72701 Telephone: (501) 443 3425 We are pleased to be certified public accountants for the City of Fayetteville and to examine and report on your annual financial statements for the four years ending December 31, 1984 through December 31, 1987. We also would like to be helpful on any problems that might arise, and hope that you will call at any time you think we can be of assistance. We will make our examination of your annual financial statements in accordance with generally accepted auditing standards as described in the audit contract and, accordingly, include such tests as considered necessary in the circumstances. An audit is based on the concept of testing the data being examined; there- fore, there is risk that material errors, irregularities and ille- gal acts, if they exist, will not be detected. Unless unusual conditions not now foreseen make it impracticable to do so, we will submit a report on our examination of the financial state- ments described in the audit contract which will express an opinion as to the fairness of their presentation in conformity with generally accepted accounting principles. During the course of the examination, we may observe opportunities for economies in or improved controls over your operations and bring them to the attention of an appropriate level of management in writing. Our fees will be based on hours worked by the various levels of personnel, at rates applicabl-e to each, not to exceed the amount in the audit contract. If these arrangements are acceptable to you, please sign one copy of this letter and return it to us. Mayor Paul Noland January 28, 1985 Page 2 We very much appreciate the opportunity to act as your independent auditors and would be pleased to furnish any additional information you may request concerning our responsibilities and functions. We trust that our association will be a long and pleasant one. Yours very truly, Arthur oung & Company City o Fayetteville Paul Nola d, Mayor Date: CITY OF FAYETTEVILLE, ARKANSAS PERFORMANCE AUDIT CONTRACT SECTION I - NAME OF THE CONTRACTING PARTY This Agreement entered into this 20th day of November, 1984 between the City of Fayetteville, State of Arkansas, hereafter referred to as the City, and Arthur Young and Company, Consulting Firm, hereafter referred to as the Performance Auditor. The parties hereto agree as follows: SECTION II - AUDIT SCHEDULE 1. The Performance Audit must review all City departments in the requested order by the City Board over a 3 -year period. The work most be split over the 3 -year period in equal sections. Projected starting time, time schedule, and completion date must be presented to the Finance Committee before starting the assignment. Final' reports must be presented to the Board at least yearly, no later than September 1st, for 2. The Finance Committee of the Board shall be allowed to review any and all Audit Plans and Work Programs relating to this Audit. Periodic meetings throughout the course of the project shall be held with the Finance Committee to brief them on the findings and recommendations as they develop. 3. Either party may terminate the Agreement by giving written notice to the other party no later than ninety days before the beginning of a new scheduled section. SECTION III - SCOPE OF AUDIT 1. Examination shall include all the City departments in a scheduled order by the Board of Directors. 2. The results of the Audit shall be a report each year which identifies the problems and the conclusions the Performance Auditor has reached. Any realistic recommended solutions that the consultants come across in identifying the problems should be documented. Please note that the City does not want the consultant to go out of the normal routine to find the solutions or to come up with an implementation plan at this time. This work may be proposed at the end of the job as a second phase. Page 1 of 6 J J is The report should discuss at least, but not be limited to, the following general areas by department: Whether the City's departments are managing and utilizing their resources (such as personnel and property) economically and efficiently The causes of major inefficiencies or uneconomical practices Whether the City's departments have complied with the laws and regulations concerning matters of economy and efficiency Whether desired results or benefits are being achieved - Whether the objectives established by the Board are being met Whether the City's departments have considered alternatives which might yield desired results at a lower cost Realistic recommendations are defined to be those which can be implemented by the audited entity without transgressing any legal or contractual requirements. They also shall take into account time and resource constraints. The recommendations should be clear cut and able to be under- stood by the lay person. 3. The Audit Scope should include, but not be limited to, the following areas the Auditor should investigate: EFFICIENCY AND ECONOMY a. Management planning and control b. Communications c. Procedures, whether officially prescribed or merely followed, which are ineffective or more costly than justified d. Duplication of effort by employees or between organ- izational units e. Performance of work which serves little or no useful purpose Page 2 of 6 • f. Inefficient or uneconomical use of resources (person- nel, materials, plant and equipment, etc.) including such factors as: Idle time for staff and equipment Appropriateness of level of staff and equipment being used for the most economically and efficient mix g. Staffing: Staffing levels in relation to the work done Whether the employees are engaged to the full extent of their capabilities h. Faulty buying practices and accumulation of unneeded or excess quantities of property, materials, or supplies i. Comparison of the cost of resources to industrial standards that are available from similar entities and through published industrial standards EFFECTIVENESS i a. Consistency of meeting the objectives established by the Board in the area of performance and public relations I: b. The benefits resulting from the departments' services and the impact of the departments' actions are as desired in the following 3 levels: To the City organization itself To the recipient To the benefit of society as a whole c. Comparisons to the operating experience of other similar governments or where pertinent to similar companies d. Relevance and validity of the criteria used by the employees to judge their own effectiveness in achieving results e. Quality of long and short-range planning and the translation of the plans into operational activities Page 3 of 6 4 f. Adequacy and appropriateness of the range of services rendered in support of the overall goals 4. The audit should be performed by auditor observation - interviews with city personnel reviewing and analyzing existing records 5. Performance Auditors must use existing personnel to the fullest extent possible to gather the needed data in order to keep the cost of the audit at a minimum. 6. The City shall provide space deemed adequate to efficiently conduct the examination. SECTION IV - AUDITING STANDARDS The examination shall be performed at least at the level of standards set up by the United States General Accounting Office described in their publication - Standards for Audit of Governmental Organ- izations, Programs, Activities and Functions, commonly called "The Yellow Book". These standards may also be found in GAAFR. The examination shall be made in compliance with the Laws of Arkansas. SECTION V - AUDITING PROCEDURES The examination shall follow the procedures set forth in the Standards for Audit of Governmental Organizations, Programs, Activities and Functions. They shall also be made in accordance with Generally Accepted Governmental Auditing Procedures as prescribed by the National Committee on Governmental Accounting in GAAFR (Governmental Accounting, Auditing, and Financial Reporting) and by the AICPA in the Industrial Audit Guide - Audits of State and Local Governmental Units pertaining to Performance Audits. SECTION VI - COMPENSATION IN TERMS OF PAYMENT 1. The City shall pay the Performance Auditor according to the billing rate shown in Schedule B for the services rendered. The total payment to the Performance Auditor shall not exceed the "maximum not -to -exceed" cost given in Attachment Schedule B for the 3 -year period. 2. If unusual circumstances are encountered making it necessary for the Performance Auditor to do added work, the Auditor shall immediately report such conditions to the responsible Page 4 of 6 City officials and both parties shall negotiate such additional compensation as appears justified. 3. Periodic progress billings may be submitted as work progresses but not more often than monthly and not more than 75% of the estimated cost of the yearly performance auditing services will be paid during the Audit period. The remaining 25% will be paid after total yearly contract fulfillment. SECTION VII - AUDIT REPORT The Auditors shall provide 20 copies of the performance audit report which shall be printed on regular letter -size (8 1/2 x 11) paper using both sides of the page whenever possible. Performance Auditors shall also provide a master copy suitable for reproduction by the City. The Performance Audit Report must be completed no later than September 1st of each year. SECTION VIII - INTEREST OF AUDITOR Performance Auditors covenant that neither it or any of its members presently has any interest and shall not acquire any interest, "direct or indirect", financial or otherwise, that would conflict in any manner or degree with performance of services described. Performance Auditors certifies that no one who has or will have, during the course of the firm's performance audit contract, any financial interest under this agreement is an officer or employee of the City. SECTION IX - NON -ASSIGNABILITY Both parties recognize this contract is one for personal services and cannot be transferred, assigned, or sublet by either party without the prior written consent of the other., SECTION X - WORKMAN'S COMPENSATION By executing this agreement, Performance Auditing Consultants certify that it is aware of the provision of Arkansas Statute ANN. 81-1305, which requires every employee to pay or provide compensation for employees' disability or death from injury arising out of or in the course of employment and certifies that it will comply with such provisions before commencing the performance of work on this agreement. Page 5 of 6 P SECTION XI - COMPLETENESS OF AGREEMENT This document contains all the terms and conditions of this agreement, and any alterations or variations of the terms of this agreement shall be invalid unless made in writing and signed by the parties. There are no other understandings, representations, or agreements, written or oral, not incorporated herein. SECTION XII - AUDIT WORK PAPERS A copy of the Performance Audit Workpapers will be presented to the City at the completion of the audit which will become property of the City when final payment is made. SECTION XIII - PRIOR EXPERIENCE The City of Fayetteville requires that all firms being considered have a minimum of three years experience with performance audits. The proposing firm does certify that such is true. CITY 0 AYETTEVI LE, ARKANSAS ARTHUR YOUNG AND COMPANY Mayor f�' rtner a rti ✓ ATTEST: ATTEST: Page 6 of 6 S. � II Schedule B CITY OF FAYETTEVILLE PERFORMANCE AUDIT CONTRACT FEE PROPOSAL Time Period I. Period ending no later than 9/1/85 II. Period ending no later than 9/1/86 III. Period ending no later than 9/1/87 L' 1A l !� Estimated Price Maximum Not- • •{ Personnel Hours Cost To -Exceed Cost* 300 $14,700 $14,700 300 $16,200 $16,200 300 $17,800 $17,800 Billing Rates 1984-85 1985-86 1986-87 Partner $127-161 $137-173 $147-186 Principal $94-109 $101-117 $109-126 Manager $64-86 $69-92 $74-99 Staff $32-61 $34-66 $37-71 *INCLUDES ALL PROJECT EXPENSES n CITY OF FAYETTEVILLE, ARKANSAS FINANCIAL AUDIT CONTRACT SECTION I - NAME OF CONTRACTING PARTIES This agreement entered into this 20th day of November, 1984 between the City of Fayetteville, State of Arkansas, hereafter referred to as the City, and Arthur Young and Company, Certified Public Accountants, hereafter referred to as the auditor. The parties hereto agree as follows: SECTION II - AUDIT SCHEDULE 1, The Auditor shall conduct an examination of the records, accounts, and procedures of the City for the years 1984- 1987. 2. Either party may terminate the agreement by giving written notice to the other party not later than ninety days before the beginning of the fiscal year for which the next audit is to be performed. SECTION III - SCOPE OF AUDIT 1. The examination shall include all funds of the City and all grants of the City. 2. The Auditor shall express an unqualified opinion on the financial statements for all funds. If unable to express an unqualified opinion, the Auditor shall state the reasons for qualification or disclaimer of opinion. 3. The desired list of statements and schedules to be included in the audit report is shown by Schedule A. 4. Three weeks after each year end, the City will have closed and balanced all accounts. 5. The City shall also supply additional financial and statistical information, not subject to examination by the Auditor, but necessary to substantially conform to the principles and standards of public financial reporting prescribed by the National Committee on Governmental Accounting. Page 1 of 5 6. The City shall provide working space for the Auditor to efficiently conduct the examination. 7. A "Management Letter" directed to the Board of Directors reflecting determinations subsequent to review of procedures and controls is required. Where appropriate, recommendations for system improvements are to be included, and the Auditor may be requested to provide assistance to implement recommen- dations and follow-up. The Auditor will be required to meet with the City Manager and Board of Directors to explain the audit report and management letter and answer questions that may arise. 8. A report on internal control and 'compliance in accordance with the audit guide and standards of revenue sharing and anti -recession fiscal assistance recipients is required. 9. The audit services provided shall be pursuant to OMB A-102, Attachment P. A copy of Attachment P and the General Accounting Office Guidelines for Financial and Compliance Audits of Federally Assisted Programs and the Supplement covering major compliance features of programs administered by state 'and local governments will be made available upon request for review. 10. Auditors.. must use existing personnel to the fullest extent possible to compile data, prepare workpapers, prepare schedules, and etc. This is required to keep the cost of the audit at a minimum. Prior years' workpapers are available fur review to show the extent the City staff has been used on prior audits.. SECTION IV - AUDITING STANDARDS The examination shall be made in accordance with generally accepted auditing standards as adopted by the membership of the American Institute of Certified Public Accountants (AICPA) in the statement of Auditing Standards No. 1, "Codification of Auditing Standards and. Procedures". The examination shall be made in accordance with OMB's circular A-102, Attachment P and the General Accounting Office Guidelines for Financial and Compliance Audits of Federally Assisted Programs and the supplement covering major compliance features of programs administered by state and local governments. Page 2 of 5 The examination shall also be made in compliance with the laws of Arkansas and the requirements of the United States Department of the Treasury's Office of Revenue Sharing as they pertain to the Revenue Sharing and Anti -recession Fiscal Assistance program. SECTION V - AUDITING PROCEDURES 1. The examination shall: be made in accordance with generally accepted governmental auditing procedures as prescribed by the National Committee on Governmental Accounting in Governmental Accounting, Auditing and Financial Reporting and by the AICPA in the Industry Audit Guide -Audits of State and Local Governmental Units. 2. The Auditor shall review the audit program with the City identifying the records to be audited and procedures to be followed. The•City may require the Auditor to include in the audit additional records and procedures which are generally accepted as defined in provision V.1. above. SECTION VI - COMPENSATION AND TERMS OF PAYMENT 1. The City shall pay the Auditor according to billing rates shown in Schedule B for services rendered. The total payment to the Auditor shall not exceed the maximum not to exceed cost given in Schedule B for the four yearly periods. 2. If unusual circumstances are encountered making it necessary for the Auditor to do added work, the auditor shall immediately report such conditions to the responsible City officials and both parties may negotiate such additional compensation as appears justified. 3. Periodic progress billings may be submitted as work progresses, but not more often than monthly and not more than 75% of the estimated cost of audit services will be paid during the yearly audit period. The remaining 25% will be paid after total yearly contract fulfillment. SECTION VII - AUDIT REPORT The Auditor shall provide 70 copies of the audit report which should be printed on regular letter size (81/2" x 11") paper, using both sides of the page whenever possible. The Auditor shall also provide a master copy suitable for reproduction by the City. Page 3 of 5 . ` Y The audit report must be completed and the final reports prepared not later than 90 days after the closing of the books. The City prefers to have the reports one week before the deadline. SECTION VIII - INTEREST OF AUDITOR Auditor covenants that neither it or any of its members presently has any interest and shall not acquire any interest, direct or indirect, financial or otherwise, that would conflict in any manner or degree with performance of service hereunder. Auditor certifies that no one who has or will have, during the course of the firm's audit contract, any financial interest under this agreement as an officer or employee of city. Y SECTION IX - NON -ASSIGNABILITY Both parties recognize that this contract is one for personal services and cannot be transferred, assigned, or sublet by either party without prior written consent of the other. SECTION X - WORKMEN'S COMPENSATION By executing this agreement, auditing firm certifies that it is aware of the provisions of Ark. Stat. Ann. Sec. 81-1305, which requires every employer to pay or provide compensation for an employee's disability or death from injury arising out of or in the course employment and certifies that it will comply with such provisions before commencing the performance of the work of this agreement. SECTION XI - COMPLETENESS OF AGREEMENT This document contains all the terms and conditions of this agreement, and any alterations or variations of the terms of this agreement shall be invalid unless made in writing and signed by the parties. There are no other understandings, representations, or agreements, written or oral, not incorporated herein. SECTION XII - AUDIT WORKPAPERS A copy of the audit workpapers will be presented to the City at the completion of the audit which will become the property of thefl City when final payment is made. Page 4 of 5 CITY OF FAYETTEVILLE, ARKANSAS gy: Mayor .& ' )tom ^' f TTY\/T •„ ARTHUR YOUNG AND COMPANY By: I , • P rtner ATTEST: Page 5 of 5 SCHEDULE A SCOPE OF AUDIT WORK TO BE PERFORMED CITY OF FAYETTEVILLE, ARKANSAS COMPREHENSIVE ANNUAL FINANCIAL REPORT Report of Certified Public Accountants Combined Statements - Overview "Liftable" General Purpose Financial St Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenues. Expenditures, and Changes in Fund Balances - Budget (GAAP Basis) and Actual - General and Special Revenue Fund Types Combined Statement of Revenues. Expenses, and Changes in Retained Earnings/Fund Balances - All Proprietary Fund Types and Similar Trust Funds Combined Statement of Changes in Financial Position - All Proprietary Fund Types and Similar Trust Funds Notes to Financial Statements - Financial Statements of Individual Funds: General Fund Comparative Balance Sheet Statement of Revenues. Expenditures and Changes in Fund Balance - Budget and Actual Statement of Revenues - Budget and Actual Statement of Expenditures By Type - Budget and Actual Statement of Expenditures Compared to Budget Special Revenue Funds (Community Development Block Grant, Revenue Sharing, Public Works, Advertising and Promotion, Off -Street Parking, and Arts Center Funds) Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Community Development Block Grant Fund: Comparative Balance Sheet Statement of Revenues and Expenditures - Budget and Actual Statement of Revenues - Budget and Actual Statement of Expenditures - Budget and Actual Revenue Sharing Fund: Comparative Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Departmental Transfers Compared to Budget Public Works Fund: Comparative Balance Sheet Statement of Revenues. Expenditures and Changes in Fund Balance Statement of Revenues - Budget and Actual Statement of Expenditures Compared to Budget City Advertising and Promotion Fund: Comparative Balance Sheet Statement of Revenues. Expenditures and Changes in Fund Balance Off -Street Parking Fund: Comparative Balance Sheet Statement of Revenues. Expenditures and Changes In Fund Balance Arts Center Fund: Comparative Balance Sheet Statement of Revenues. Expenditures and Changes In Fund Balance Debt Service Funds (1978 General Obligation Bond Fund) Comparative Balance Sheet Comparative Statement of Revenues. Expenses and Changes In Funds to be Provided Tale of Contents Capital Projects Funds: Combining Balance Sheet Combining Statement of Revenues. Expenditures and Changes in Fund Balance 1978 General Obligation Construction Fund; Balance Sheet Statement of Revenues. Expenditures and Changes in Fund Balance Replacement Fund: Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance City Hall Renovation Fund: Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Special Assessment Funds: Combining Balance Sheet Combining Statement of Revenues. Expenditures and Changes In Fund Balance Sewer Assessment Fund: Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance " 1970 Street Improvement Fund: Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Enterprise Funds: Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Retained Earnings Combining Statement of Changes in Financial Position Airport Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings Statement of Changes in Financial Position Statement of Revenues Statement.of Operating Expenses, Compared to Budget Statement of Changes in Fund Equity Continuing Education Center and Parking Facility Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings Statement of Changes in Financial Position Statement of Changes in Retained Earnings Industrial Park Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings Statement of Changes in Financial Position Water and Sewer Fund: Balance Sheet Statement of Revenues and Expenses Statement of Changes in Fund Equity Statement of Changes in Financial Position Statement of Operating Expenses Statement of Departmental Revenues and Expenses Statement of Changes in Fixed Assets Table of Contents Sanitation Fund: Balance Sheet Statement of Revenues and Expenses Statement of Changes in Fund Equity Statement of Changes in Financial Position Statement of Operating Expenses Statement of Changes in Fixed Assets Internal Service Fund - Shop Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual Statement of Changes iii"Financial Position Fiduciary Funds: Combining Balance Sheet Pension Trust Funds - Combining Statement of Revenues, Expenses and Changes in Fund Balance Pension Trust Funds - Combining Statement of Changes in Financial Position •Expendable Trust Fund (Downtown Gardens Fund): Statement of Revenues, Expenditures and Changes in Fund Balance Firemen's Pension and Relief Fund: Balance Sheet Statement of Revenues. Expenses and Changes in Fund Balance • • Staterent of Changes in Financial Position Police Pension and Relief Fund: Balance Sheet Statement of Revenues. Expenses and Changes in Fund Balance Statement of Changes in Financial Position. • Municipal Judge Retirement Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Fund Balance Statement of Changes In Financial Position Honey Purchase Pension Plan Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Fund Balance j Statement of Changes in Financial Position • Returned Check Fund - Balance Sheet Payroll Fund - Balance Sheet General Fixed Asset Account Group Statement of Changes In Property, Plant and Equipment - All Governmental Type Funds Additional Information • Enterprise Funds: -�- Summary of Bonded Indebtedness General Obligation Debt: • Summary of Bonded Indebtedness • A11 Funds Summary of Budget Changes • Schedule of Financial Status of Active Federal Grants r l if h Time Period I. Year ending 12-31-84 II. Year ending 12-31-85 III. Year ending 12-31-86 IV. Year ending 12-31-87 Schedule B CITY OF FAYETTEVILLE FINANCIAL AUDIT CONTRACT FEE PROPOSAL Estimated Price 11 Personnel Hrs./ Cost 1,400 $38,500 1,400 $41,000 1,400 $44,000 1,400 $47,000 Maximum Not -To -Exceed Cost Billing Rates 1984 1985 1986 1987 Partner $125 x x x Manager $ 60 x x x Senior $ 38 x x x Staff $ 28 x x x $38,500 $41,000 $44,000 $47,000 x = Same as 1984 adjusted for years increase or decrease in CPI not to exceed 10% increase per year. It is also agreed that if circumstances enable us to perform the audit in less personnel hours than shown above that Arthur Young will only bill the city for the hours worked times the billing rate. Schedule C CITY OF FAYETTEVILLE PROFESSIONAL CONTRACT POLICY (Adopted April 21, 1981) The following are the guidelines to be followed in obtaining all professional contracts over $5,000 (see note 1) for the City of Fayetteville excluding Community Development. The•City Board may waive submission*of proposals under this policy by a majority vote. Scope of Work The staff shall develop or procure professional help to develop the scope of the project. The scope will be developed in such a manner that proposals for the project may be requested from professional organizations. If the City staff must procure professional help to develop the scope, the involved City Department Head(s) and City Manager shall choose the most advantageous professional firm after receiving rate quotations and negotiations of the price. Contract will then be reviewed by the City Attorney and Finance Director and recommended to the Board. Proposals Proposals shall be solicited from an adequate number of qualified sources to permit reasonable competition. Proposals will be made only on the scope developed and shall include the following: A. Qualifications in Relation to Specific Project to be Performed - Information reflecting qualifications of the firm, indicate specialized experience and technical competence of the firm in connection with the type and complexity of the service required. Subcontractors, if used, must be listed with information on their organization. B. Experience, Competence, and Capacity for Performance - Information reflecting the names, titles, and qualifications (including experience and technical competence) of the major personnel assigned to this specific project. Provide detailed breakdown of subcontractor's staff to be used and how they are to be used to supplement your staff. C. Proposed Method of Doina Work - A proposed work plan (description of how the project would be conducted as well as other facts concerning approach to scope you wish to present) indicating methods and schedules for accomplishing each phase of the work. Include with this the amount of work presently underway. D. Past Performance - Previous evaluations (as set forth in number 5) shall a considered a significant factor. If previous evaluations with this City are not available, the professional firrY s past performance records with City and others will be used, including quality of work, timely performance, diligence, ability to meet past budgets, and any other pertinent information. (Later inforration to be used only until evaluation system has had time to be developed.) Firm will provide list of similar jobs performed and person whom we can contact for information. C-1 '' Ii 3. Proposal Evaluation and Negotiation Proposal evaluation and negotiation shall consist of three steps: STEP A - Selection of top qualifying firms: Description A. Qualifications in relation to specific project to be performed B. Experience, competence, and capacity for performance C. Proposed method of doing work D. Past Performance Sub -total points Maximum Points 25 20 20 10 Proposals will be reviewed by the selection committee using the above selection criteria. Each member of the committee will assign points to each criteria based on the content of the proposal. The three firms receiving the highest accumulated sub -total points, as rated by the selection committee, will move on to step B. All other firms submitting proposals will be notified in writing and thanked for their interest in the project. STEP B - Selection of the top rated firm: The three firms receiving the highest accumulated sub -total points will be asked for the following information: Description E. Price - Total estimated price of your professional services for this project. The total estimated price must be reasonably accurate. Also, maximum cost for "maximum not to exceed" clause and additional service rates information shall be given. Total points Maximum Points 25 100 The selection committee will rate this criteria (as in Step A above) awarding up to a maximum of 25 points. These points will be combined with the assigned points in Step A to arrive at "Total Points" (maximum of 100). The firm receiving the highest accumulated "total points" will move into Step C. STEP C - Neaotiation The selection committee will then negotiate to achieve the most advantageous contract for the City starting with the selected firm (firm with the highest accumulated "total points" from Step B). C-2 a5 � If, after reasonable effort, a contract cannot be necotiated within available funds, the negotiations with the selected firm shall be terminated. The firm will be requested to submit in writing a best and final offer and the selection committee will move negotiations to the next highest accumulated "total points" firm. This will continue until a mutually satisfactory contract is achieved. At this time the other two firms from.Step B will be notified in writing and thanked for their interest in the project. The selection committee's membership will consist of the City Manager (or representative), the Finance Director, the involved department heads, any board members wishing to serve, and any other persons not involved in any way with any organizations submitting proposals (who are appointed by the Board). The selection committee membership may be changed by the Board of Directors. 4. Contract Award and Details: The selection committee will recommend, after negotiations and review by the City Attorney and Finance Director, the most advantageous contract to the Board for awarding. If the scope of the project is substantially chanced, a new proposal will be solicited before any additional work is performed. The "maximum not to exceed clause" will then be amended on the contract after approval by the Board. 5. Professional Project Evaluations: Upon completion or termination of a contract, the department head responsible for the project will submit a summary evaulation of the pro- fessional firm's handling of the project to include the following data: (a) name of professional firm (b) date of contract and date of completion (c) cost as stated in initial contract, amount paid, and reason for any difference (d) special strengths exhibited by professional firm (e) problems or weaknesses in professional firm's handling of the project (f) adherence to time schedule by the professional firm (g) names of key personnel working on the project and convents on their adequacy The summary evaluation will be submitted to the City ('.anaoer for review and comments and then filed in the City Clerk's records. copy will be sent to the professional firm. Written comments received from, the professional firm regarding the evaluation will be filed in the City Clerk's records. C-3 S NOTE 1: Minor contracts, $5,000 and below, shall have the involved Department Head and City Manager choose the most advantageous organization after receiving price quotations and negotiations of the price. Contract will then be reviewed by City Attorney and Finance Director and recomwnended to the Board: C-4 t (1 I 1 i SCHEDULE E CITY OF FAYETTEVILLE, ARKANSAS DESCRIPTION OF COMPUTER SYSTEM The following is a synopsis of the data processing department with a description of the staff, equipment, and software both existing and planned. I. DATA PROCESSING STAFF A. Data Processing Supervisor: 1. Provide objective evaluation to encourage the continued job knowledge and to help goal in job performance. 2. Supervise data processing assignment and evaluation of and training of each employee devel9pment of the employee's the employee reach a pre-set personnel which includes job job performed. 3. Assist in the training of each user department in the proper operation of their system, including the additions and changes made to the system. Provide consultation as to the resolution of problems which may arise in the user software. 4. Coordinate the scheduling of user jobs to provide maximum effectiveness of the computer hardware. 5. Insure the system file and account saves, restructure of files, and preventative maintenance are done on a regular basis. 6. Interact with other departments as to the needs of that department in relation to the computer, make recommendations to the Finance Director as to the needs of these departments to enable ranking of the project. 7. Evaluate problems with user software to determine changes to be made; and either make the changes or assign changes to the programmer. 8. Review documentation of all user systems to insure that it is accurate and clearly understood. Y H it L Schedule E - City of Fayetteville, Arkansas Description of Computer System Page E-2 9. Evaluate problems with system hardware and software to determine the proper' course of action needed; and either take such action or make recommendations to the Finance Director as.,_to what action to take. 10. Preparation of following reports: a. Payroll time sheets and supporting documentation. b. Evaluation of employees on job performance. c. Charge computer time to other departments. d. Purchase order requests and orders. 11. Performs other tasks as assigned. B. Programmer/Analyst: 1. Maintain and modify existing software systems to improve efficiency and ease of operations. 2. Assist Data Processing Supervisor in the analysis of user desires and requirements in order to develop an ifer_tive computer software system based on user requirements. 3. Development, flow charting, programming, entry and testing of n'w sys te:n software to perform to the specification set forth by the user. 4. Software documentation on new and existing systems to minimize program maintenance time and user/operator confusion. 5. Assist in user training on new and or modified software systems to maximize efficiency of the system and minimize user/operator difficulties. 6. Assist in system software maintenance by restructuring files and upgrading to new system software releases. 7. Fill in for Data Processing Supervisor when he is on vacation. 8. Performs other tasks as assigned. C. Input/Operator: 1. Knowledge of input procedures for all systems. S , . t. Schedule E - City of Fayetteville, Arkansas Description of Computer System Page E-3 2. Input information for other departments when there is a work overflow situation. 3. Balance inputtoinsure accuracy of data entry. 4. Assist other departments in resolving probt:,ms associated with data entry. 5. Assist in training of other personnel in data entry to various systems. 6. Performing all duties associated with the operation of the computer under the supervision of the Data Processing Supervisor including, but not limited to: a. Change paper and forms in printer. b. Run reports for other department on a requisition basis. c. Bursting and decolating reports and forms. d. Changing of ports as necessary for continued operation of CRTs. e. Preparing for File Saves and Account Saves. f. Perform Account File Restructures. g. Keep inventory of supplies and advise Data Processing Supervisor when it Ls time to order. 7. Performs other tasks as assigned. II. DATA PROCESSING EQUIPMENT A. Microdata Reality 8000 (1) 1. 512 K of main memory 2. 256 Meg of disk storage 3. 16 CRTs 4. 8 port printers 5. 1 line printer. R. Corona Personal Computers (5) 1. 512 K of main memory 2. 10 Meg hard disk storage 3. 1-360 K 5-1/4 inch disk drive 4. 2 Qume letter -quality printers 5. 2 Epson dot-matri?c printers Y Schedule E - City of Fayetteville, Arkansas Description of Computer System Page E-4 III. EXISTING MICRODATA SOFTWARE SYSTEMS A. Utility Billing - keeps track of accounts receivable, calculates and bills water, sewer, fire protection, sanitation and other charges. An account history is also maintained of all active accounts and finaled accounts which have a balance due. R. Parking Ticket System - accounts receivable and name and address information are kept on file for the monthly processing of warrants on unpaid parking tickets. C. Inventory Systems 1. Shop Inventory - keeps records of parts on hand in the maintenance Shop. 2. W/S Operations - keeps records of pipe and fittings on hand, for the maintenance and construction of the water and sewer system. D. Vehicle Maintenance - keeps record of gas, oil and maintenance charges for each vehicle. Also calculates cost per mile on a monthly, YTD and accumulated (from purchase) basis. E. Investments - keeps a record by fund of investments purchased, cashed and on hand during the year. F. Fixed Assets/Depreciation - keeps a record of fixed assets in the Water and Sewer Fund, Airport Fund, General Fund, Public Works, and Sanitation Fund. This sytem will also calculate and keep record of depreciation on these funds. G. Hotel, Motel and Restaurant Tax Package - keeps record of the name, address, and tax payment information for all restaurant, motels and hotels within Fayetteville City limits. H. W/S Construction in progress - keeps a record of W/S construction projects showing amount budgeted, expensed and balance to complete project. I. Municipal Court Package - processes both the City and County Municipal Court functions as specified in Act ;{332 of 1977. This system provides for name and address maintenance, individual docket history, automatic spreading of assessments, internal control, on cash and accounts receivable receivable, issuance of warrants and commitments, and audit trails. I A. +1 , .. r v Schedule E - City of Fayetteville, Arkansas Description of Computer System Page E-5 J. Accounts Receiveable System - miscellaneous billing billed through the Accounting Office. K. Parking Card System - Billing for parking cards used on the various city parking lots. L. Fund Management System - This system automates the fund accounting to provide more timely financial information. It is presently being modified to provide a better picture of the accounts payable. IV. FUTURE MICRODATA APPLICATIONS A. Payroll System - The payroll system will keep track of information .for the EE04 report and will also interact with the Fund Management System. Expected implementation date January 1, 1985. B. Planning, Zoning, and Inspection Package - keeps a record of pertinent planning, zoning, and inspection information and their status. Exact specification to be determined at a later date. C. W/S Taps - record of status and location of 14/S taps for a three year period. D. Police Uniform Crime Reporting System. E. Police Dispatch System. F. Civil and Small Claims Court System - automate the functions o.f these courts. V. EXISTING CORONA SOFTWARE SYSTEMS A. Word Perfect - This word processing system is used extensively by the City Clerk - the Planning Office - and the City Counselor's office. B. Lotis 1-2-3 - This spread sheet program will he used by the finance section for a large variety of jobs. C. Revelation - This is being used to interface with the Microdata System.