HomeMy WebLinkAbout124-02 RESOLUTION• •
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RESOLUTION NO. 124-02
A RESOLUTION APPROVING A CONTRACT WITH BAIRD,
KURTZ & DOBSON (BKD), LLP, IN AN AMOUNT NOT TO
EXCEED FORTY-NINE THOUSAND NINE HUNDRED
DOLLARS ($49,900.00) FOR CALENDAR YEAR 2002, WITH ALL
SUBSEQUENT ANNUAL EXPENDITURES SUBJECT TO CITY
COUNCIL APPROVAL TO PROVIDE INDEPENDENT AUDIT
SERVICES TO THE CITY OF FAYE11EVILLE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of Fayetteville, Arkansas hereby approves
a contract with Baird, Kurtz & Dobson (BKD), LLP, in an amount not to exceed
Forty -Nine Thousand Nine Hundred Dollars ($49,900.00) for calendar year 2002,
with all subsequent annual expenditures subject to City Council approval to
provide independent audit services to the City of Fayetteville. A copy of the
contract, marked Exhibit "A" is attached hereto, and made a part hereof.
PASSED and APPROVED this 20th day of August, 2002.
ER WOODRUFF, Vity Clerk
APPROVED:
By:
DAN COODY, Mayo
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NAME OF FILE:
CROSS REFERENCE.
Resolution No. 124-02
08/20/02
Resolution No. 124-02
08/20/02
Contract with Baird, Kurtz and Dobson
Exhibit "A" Request for Proposal for Independent Audit
Exhibit "B" Proposal to Provide Services for City of Fayetteville
Exhibit "C" Letter of Engagement
12/20/01
Letter to the Partners of BKD, LLP and the SEC Practice Section Peer
Review Committee
08/20/02
Staff Review Form
08/21/02
Memo to Marsha Farthing, Accounting & Audit, from Heather
Woodruff, City Clerk
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NOTES:
CONTRACT
Res /2* -oz
This professional services contract is executed this ,20 day of 4C/ff/si ,
2002 by and between the City of Fayetteville, Arkansas, hereinafter called the'City and
BKD, LLP.
WHEREAS, the City has issued a Request for Proposal for Independent Audit;
and
WHEREAS, BKD, LLP has submitted a proposal to provide such professional
services;
WITNESSETH: IN CONSIDERATION of mutual promises of the parties
contained herein and other good and valuable consideration, the parties agree as
follows:
1. BKD, LLP shall provide the City with the necessary professional services to
audit all funds including those which are covered under the provisions of the Single
Audit Act.
2. The term of the contract shall run from the date of execution until the 31st
day of December, 2002, and shall automatically renew each year, subject to budget
approval by the governing body of the City, for such terms as are required to perform the
contracted professional auditing services for the fiscal years ending December 31, 2002
through December 31, 2006.
3. The professional accounting services shall be provided in accordance with
the terms and conditions set forth in the Request for Proposal, with the exception of
§II.J.2., which is deleted entirely, attached hereto and marked Exhibit "A;" the Proposal
to Provide Services, attached hereto and marked Exhibit "B;" and the Engagement Letter,
attached hereto and marked Exhibit "C". Each of these Exhibits are hereby incorporated
by reference as if set forth word for word in their entirety.
4. BKD, LLP shall be compensated for services rendered under this contract
in accordance with the terms and conditions set forth in the Exhibits. No work shall be
performed beyond the present scope of this contract without express prior approval by the
governing body of the City.
5. The City or BKD, LLP shall have the right to terminate the contract upon
30 days written notice.
6. In the event of a conflict between any terns and conditions of this contract
and the Exhibits, the terms and conditions of the Exhibits shall take precedence in the
following order: this Contract, Exhibit "C", Exhibit "B" and Exhibit "A".
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7. Neither party may assign any of its rights or delegate any of its obligations
under this agreement, without the express written consent of the other.
8. It is agreed that the failure of any party to invoke any of the available
remedies under this agreement or under law in the event of one or more breaches or
defaults by any party under the agreement shall not be construed as a waiver of such
provisions and conditions and shall not prevent the parties from invoking such remedies
in the event of any future breach or default.
9. Each paragraph of this agreement is severable from all other paragraphs. In
the event any court of competent jurisdiction determines that any paragraph or
subparagraph is invalid or unenforceable for any reason, all remaining paragraphs and
subparagraphs shall remain in full force and effect.
10. This agreement shall be interpreted according to and enforced under the
laws of the State of Arkansas.
11. This agreement contains the entire agreement of both parties hereto, and no
other oral or written agreement shall be binding on the parties hereto. This agreement
supersedes all prior agreements, contracts and understandings of any kind between the
parties relating to the subject matter hereof. This agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have executed this professional
services contract on or as of the date first written above.
enWoodruff, City C
S
CITY 0 FAYETTEVILLE
an Coody, Mayor
08/12/02 13:55 FAX 501 372 1250 •
BKD LLP
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CONTRACT
This professional servi4s contract is executed this j24 day of
2002 by•and between the Cat of Fayetteville, Arkansas, hereinafter calle�the City,
and BKD, LLP
WHEREAS, the City bac issued a Request for Proposal for Independent Audit
and
WHEREAS, BKD, LLP has submitted a proposal to provide such professional
services;
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WITNESSETH: ' IN CONSIDERATION of mutual promises of the parties
contained herein and other good and valuable consideration, the parties agree as
follows:
1. BICD, LLP shall provide the CIty with the necessary professional services to
audit all funds including those which are covered under the provisions of the Single
Audit Act
2. The term of the contract shall run from the date of execution until the 31" day
of December, 2002, and shall automatically' renew each year, subject to budget
approval by the governing body of the City, for such bents as are required to
perform the contracted professional auditing services for the fiscal yearn ending
December 31, 2002 through December 31, 2006.
3. The professional accounting services shall be provided in accordance with
the terms and conditions set forth in the Request for Proposal,. with the exception of
§II.J.2., which is deleted entirely, attached hereto and marked Exhibit "A;". the
Proposal • to Provide Services, attached hereto and marked Exhibit "B;". and the
Engagement Letter, attached hereto and marked Exhibit "C. Each of these Exhibits
are hereby incorporated by reference as if set forth word for word in their entirety.
4. BKD, LLP shall be compensated for 'services rendered under this contract in
accordance with the terns and conditions set forth in the Exhibits. No work shall be
performed beyond the present scope of this contract without express prior approval
by the governing body. of the City.
5. The City or BKD, LLP shall have the right to terminate the contract upon 30
days written notice.
6. In the event of a conflict between any terms and conditions of thiscontract
and the Exhibits, the terms and conditions of the Exhibits shall take precedence in
the following order: this Contract Exhibit "C", Exhibit"B" and Exhibit "A".
7. Neither party may assign any of its rights or delegate any of its obligations
under this agreement, without the express written consent of the other.
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BL285LSIDS 013 aJ2 A1I3 311IA3113AH3 WHET:iI 2002 21 Slit!
08/12/02 13:55 FAX 501 372 1250 • BKD LLP
ON XH/lI grfi'NOW 30A /90
8. .It is •agreed t the failure of any party to invoke any of the, available
remedies under this agreeme4 t or undertow in the event of one or more breaches or
defaults by any party undeijthe agreement shall•not be, construed as a waiver of
such provisions and conditions and shall not prevent the parties from invoking such
remedies in the event of any &store breach or default
9. Each paragraph of this agreement is severable from all other paragraphs.. In
the event any court of comjretert jurisdiction determines that any paragraph or
subparagraph is invalid or unenforceable for any reason, all remaining paragraphs
and subparagraphs shall remain in full force and effect.
.10. This agreement shall be interpreted according to and enforced underthe laws
of the State of Arkansas.
11. This agreement contains the entire agreement of both parties hereto, and no
other oral or written agreement shall be binding on the parties hereto This
agreement supersedes all prior agreements, contracts and understandings of any
kind between the parties relating to the subject matter hereof. This agreement may
be executed in one or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.'
INI WITNESS WHEREOF, the parties hereto have executed this professional
services contract on orr as of the date first written above. •
ATTEST:
Heather Woodruff. City Clerk
CITY OF PAYETTEVILLE
Dan Coady, Mayor
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EL28SLSIOS O13 O142 A110 311IA3113AWJ WUBt:tt 2002 21 Ofld
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• • • OtXHIBIT A
REQUEST FOR PROPOSAL FOR INDEPENDENT AUDIT
CITY OF FAYETTEVILLE, ARKANSAS
02-102,
The City of Fayetteville invites proposals to audit the financial statements of the City for
fiscal years ended December 31, 2002 to 2006, including all funds which are included
under the provisions of the Single Audit Act.
I. PROCUREMENT PROCESS
A. One (1) signed original and seven (7) signed copies of the proposal are to be
delivered to the following address in a sealed envelope with the outside clearly
marked with the name of•the firm, address of the firm, and the words
"Independent Auditor Proposal":
Peggy Vice
Purchasing Manager
113 W. Mountain
Fayetteville, AR 72701
Proposals will be received at this address until July 22, 9:00 a.m. CO IQh et'llme LQ
-lo ru y 2s , S'.OV PM \
B. Upon opening the proposals, the Audit Committee will convene to evaluate the
proposals on the basis of the cntena described below. Interviews may be held
with the three firms deemed to be the most highly qualified to provide the services
required. A contract will be negotiated with the firm ranked the best qualified by
the Audit Committee. If the Audit Committee is unable to negotiate a satisfactory
contract with the top ranked firm, negotiations with that firm shall be terminated,
and negotiations would begin with the next highest ranked firm. Once a
recommendation is reached by the Audit Committee, the selection will be
presented to the City Council for their approval.
At any point in the selection process, the proposer may be requested to submit
information supplemental to the proposal. Copies of the City's 2001
Comprehensive Annual Financial Report (CAFR) are available from the Internal
Auditor at 113 West Mountain, Fayetteville, AR 72701, phone number 479-575-
8261. In addition, the City's budget and prior year audit schedules are available
to provide additional information prior to the opening of the proposals from the
Internal Auditor.
The following tentative timetable has been established for the completion of the
award of an audit contract:
-Advertisement for Proposals June 30
Committee Review and Negotiations July 29 — August 9
Presentation to the City Council August 20
C. Proposals will be evaluated on the following criteria:
MANDATORY
1. The firm must be a Certified Public Accounting firm properly licensed to
practice in the State of Arkansas.
2. The firm must meet the independence standards of the General Accounting
Office Standards for Audit of Governmental Organizations, Programs,
Activities, and Functions.
3. The proposer shall procure, and shall maintain during the life of this contract,
professional liability insurance in the amount of $1,000,000 combined single
limit. Certificates of insurance stating coverage indicated above must be
delivered to the Purchasing Manager prior to issuance of Notice to Proceed
with this proposal.
TECHNICAL
1. Qualifications of the firm and its coordinating office in performing
governmental audits.
2. Experience, competence, and capacity for performance by the firm and its
coordinating office in governmental audits and GASB 34.
3. Proposed method of performing audit.
4. Past performance by the firm and its coordinating office in governmental
audits.
5. Puce Proposal
D. Audit Contact
Any vendor contact conceming this RFP should only be directed to:
Nancy Smith
Internal Auditor
113 W. Mountain
Fayetteville, AR 72701
(479) 575-8261
E. Reservation of Right of Rejection
The City of Fayetteville reserves the right to reject any or all proposals when it is
in the best interest of the City as determined by the Audit Committee.
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11. AUDIT OBJECTIVES AND SCOPE OF SERVICES
A. There are two objectives of the services covered by this RFP. Each responder
must consider each of these objectives separately and reflect such treatment in the
proposal:
1. To render an unqualified opinion on the General Purpose Financial Statements
of the City of Fayetteville, and to meet the audit requirements of the laws of
the State of Arkansas.
2. To assist in the preparation of the CAFR of the City of Fayetteville in order
for the City to receive the Certificate of Achievement for Excellence in
Financial Reporting presented by the Government Finance Officers
Association (GFOA).
The auditor will be expected to comply substantially with GASB reporting
standards in all work associated with the production and submission of the
CAFR.
B. The audits will be conducted in accordance with Generally Accepted Auditing
Standards, as well as the following guidelines and requirements:
1. AICPA Industry Audit and Accounting Guide — Audits of State and Local
Governmental Units
2. Standards for Audit of Governmental Organizations, Programs, Activities and
Functions
3. Audits of State and Local Governments and Non -Profit Organizations -OMB
Circular A-133
4. Grants and Cooperative Agreements with State and Local Governments -OMB
Circular A-102
5. OMB Compliance Supplement for Single Audits of State and Local
Governments
6. Applicable laws of the State of Arkansas
The Arkansas Legislative Joint Auditing Committee has exempted the
City from the record keeping requirements of Act 159 of 1973.
In the event that there are conflicting or otherwise inconsistent policies applicable
to financial and compliance audits of Federal awards, the following order or
precedence shall apply:
1. Single Audit Act of 1984 (Public Law 98-502)
2. Single Audit Act Amendments of 1996 (Public Law 104-156)
3. OMB Circular A-133
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4. Agency regulations implementing OMB Circular A-133 and the Single
Audit Act
5. Agency program regulations
6. Federal Financial Assistance Agreement
C. The periods to be covered are the City's fiscal years ending December 31, 2002,
2003, 2004, 2005, and 2006. A contract will be awarded for all five years upon
approval of the City Council with the consent of the proposer in accordance with
the terms of the proposal. Each year of the contract shall be contingent upon
satisfactory performance and funds being appropriated. Should funds not be
appropriated, the contract would be canceled for any remaining years.
D. Any adjusting entries will be submitted to the City in writing with sufficient
explanation and detail, so that they can be easily understood and properly posted
to the financial accounts.
E. The independent auditor is expected to provide assistance in interpreting financial
reporting requirements. It will be the auditor's responsibility to proofread, cross
check, and critique the entire CAFR document in addition to auditing the numbers
and disclosures contained therein. The auditor shall provide all comments on the
CAFR to the City by May 15 of each year
The CAFR will be published in final form and distributed to GFOA by June 30 of
each year.
F. The auditor in charge shall conduct an entrance and an exit conference with the
Audit Committee.
Review of accounting systems, test of internal controls, and test of transactions
should occur prior to fiscal year end.
A list of all work papers and schedules to be prepared by the City staff should be
presented to the City by October 1 of the year under audit. This list should
include all documents which will need to be pulled for auditor review.
The general ledger will be closed by the third week of March and the trial balance
prepared.
Year end field work shall be completed by May 1.
Prior to June 15 of each year, the auditor will issue a management letter. Where
appropriate, recommendations for system improvements are to be included and
the Auditor may be requested to provide assistance to implement
recommendations. A draft of this letter should be submitted for review by the
City before final copies are prepared. The Auditor will provide 35 copies of this
letter.
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G. Interest of Auditor:
Auditor covenants that neither it nor any of its members 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 in their firm 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 the City.
H. Non -Assignability:
Both parties recognize that this proposal is one for personal services and cannot
be transferred, assigned, or sublet by either party without prior written consent of
the other.
I. Worker's Compensation:
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By executing an agreement, Auditor certifies that it is aware of the provision of
A.C.A. §11-9-401, which requires every employer to pay or provide
compensation for an employee's disability or death from injury ansrng out of or
in the course of employment and certifies that it will comply with such provisions
before commencing the performance of the work of this proposal.
J. Miscellaneous provisions.
1. 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.
The total progress billings must be itemized based on the amount of time
expended on each fund.
2. A copy of the audit work papers will be presented to the City at the
completion of the audit, and prior to final payment. This copy of the audit
work papers shall become the property of the City when final payment is
made.
3. The auditor shall keep the City advised of pending and actual changes in
financial disclosures, accounting practices, and reporting guidelines which
would impact the City and its financial records, and shall be available for
consultation and clarification of such matters.
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III DESCRIPTION OF THE GOVERNMENTAL ENTITY AND ITS ACCOUNTING
SYSTEM
A. The City of Fayetteville is a municipality in the State of Arkansas. The City
currently has a General Fund which is the main operating fund for the City, five
special revenue funds, one debt service fund, three capital projects funds, five
enterprise funds, one internal service fund, three trust funds, two agency funds,
two account groups, and two discretely presented component units.
B. All intergovernmental grants, entitlements, and shared revenues will be included
under the single audit concept.
C. The laws of the State of Arkansas require an operating budget for the General
Fund This budget is disclosed in the CAFR and reflects all approved
amendments. All other governmental funds which have an adopted budget shall
be disclosed in the same manner with appropriate disclosures for any
governmental funds which do not have an adopted budget.
D. Description of the Automated Accounting Systems
1. The City has an Information Technology division which consists of nine full
time employees: an information technology manager, three
programmer/analysts, four GIS programmer/analysts, and a systems operator.
Assistance from this division in obtaining necessary reports and data can be
obtained on a scheduled basis
2. Currently, the City is utilizing the following New World Systems software
modules on an IBM AS/400 (Model 720, 1.28GB Ram, 60GB disk storage):
a. Financial Management Software: general ledger, budgetary accounting,
annual budget processing, accounts payable, purchasing and encumbrance
control, requisition processing, revenue accounting/cash receipts., billing
and receivable, fixed assets, integrated inventory/purchasing, and cash
register interface.
b. Human Resources Software: payroll with base personnel module and
advanced personnel module.
c. Utility Management Information System Software: water/sewer/other
module and automatic PC meter read.
d. Animal Licensing Software.
e. Public Works Software: equipment/vehicle maintenance and work order
processing. Public works information will be converted to Hansen
Technology Software at a future date.
f. Parking Tickets Module.
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3. Municipal Court is currently using a system which is run on Novadyn (486
PC) series 14-400 running Reality Operating System.
4. The City has a Novell LAN used primarily by the Planning, Engineering, and
Inspection Divisions for storage of AutoCad files, inspection and planning
data bases, and GIS information.
5. The City has personal computers which are interfaced with the IBM AS/400
and/or the LAN which use the standard Microsoft XP Office software and
various other software packages, including the following:
a. Microsoft Excel spreadsheet software
b. Microsoft Word word processing software
c. Paradox database software
d. Access database software
6. The Police, Fire and Central Dispatch divisions utilize the IBM AS/400 and
New World Systems Public Safety software.
E. Office space is available for audit staff use. Access is available to a telephone,
and access may be made available to a computer terminal.
IV. TECHNICAL QUALIFICATIONS AND APPROACH
The format of the proposal may be styled at the discretion of the auditor. However,
all proposals will address each of the following items in the order presented:
A. Qualifications of the firm and its coordinating office in performing governmental
audits
1. Describe the firm's strengths, audit philosophy, and strategy for the future.
2. Describe the firm's clientele.
3. Describe what positions have been taken by the firm with the AICPA, FASB,
or GASB which could be viewed as controversial.
4. List any members of the firm which are nationally recognized professionals in
public finance or government accounting, such as members of the executive
boards of committees of the GFOA or GASB.
5. Describe the firm's affirmative action plan and how minorities are placed in
the firm. •
6. Disclose material lawsuits in progress (or in the past) against the firm;
disclose any indictments, criminal penalties, sanctions, etc.
B. Experience, competence, and capacity for performance of the firm and its
coordinating office in governmental audits
1. Qualifications of the Coordinating Office:
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a. State whether the office is part of a national, regional, or local accounting
fine.
b. List the number of partners, managers, supervisors, and staff located in the
coordinating office in the audit, tax, and management consulting divisions.
c. List the address of the firm and any coordinating offices that will be
working on the audit.
d. Describe the extent of statistical and computer assisted audit techniques
used in governmental audits including the use of microcomputers to
generate work papers.
e. Describe the organization of the audit staff.
2. Availability and qualifications of the assigned individuals:
a. List the partners, managers, and supervisors who will be assigned to the
engagement. Please provide specific qualifications of these individuals in
municipal accounting and auditing. On your list, include education,
position in the firm, and years and types of experience.
b. Describe specialized skills, training, or background in public finance and
governmental accounting of the assigned individual staff members.
Indicate which of the assigned staff members have completed, within the
last two years, at least 80 credit hours of continuing education and training
that contributes directly to the auditor's professional proficiency to
perform the audit, including specifics on training in governmental
accounting and auditing and GASB 34.
c. Address the availability of staff members both during the audit and
throughout the year for consultation. Include an explanation of the plan
your firm has to commit the necessary resources to ensure completion of
the audit work by the due dates.
3. Description of the firm's internal quality control procedures:
a. Outline the levels of review to which work papers are subjected.
b. Descnbe any disciplinary action imposed by the AICPA, State Boards of
Public Accountancy, State Societies of CPAs, or Securities and Exchange
Commission dunng the past three years indicating any involvement of the
coordinating office.
c. Describe results of recent peer review and its status under the Peer Review
Program.
C. Proposed method of performing audit
1. Describe how the firm's overall philosophy applies to this particular
engagement.
2. Describe the audit plan in general and specify areas that in your opinion may
require particular audit emphasis.
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3. Explain the firm's understanding of the audit work that is to be performed for
the City of Fayetteville.
4. Describe m detail the type of personnel assistance ( hours, level of staff, etc.)
that the City would be expected to provide and how this would be coordinated
by the auditors with the City management.
5. Indicate in detail computer expertise which would be expected from City staff
or other resources expected in order to complete the control reviews.
D. Past performance of the firm and its coordinating office in governmental audits
1. List local government clients or other clients which are felt to be relevant to
this RFP which are currently or have been served by the firm and the
coordinating office, indicating those having a Certificate of Achievement for
Excellence in Financial Reporting awarded by GFOA.
2. Provide names and telephone numbers of appropriate officials for reference
purposes.
E Price Proposal
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1. Basis for fee and not -to -exceed cost shall be submitted to the Purchasing
Officer in the sealed proposal envelope. This proposal should include a
schedule for each of the five years in the following format:
a. Billing rates per class of employee
b. Estimated number of hours per class of employee
c. Maximum not to exceed cost per year
d Any special provisions which would affect the proposed fees such as
preparing the total CAFR, preparing only the notes to the financial
statements and performing arbitrage calculations.
V. PROFESSIONAL POLICY
Attached is a copy of the City's Professional Contract Policy. Proposals should be
prepared simply and economically, providing a straight forward, concise description
of auditor's ability to meet the requirements for the project. Fancy bindings, colored
displays, and promotional material are not required Emphasis should be on
completeness and clarity of content.
lac
Solutions
tor
Success
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July 22, 2002
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5000 Rogers Avenue, Suite 700
Fort Smith, AR 72903-2079
479 452-1040 Fax 479 452-5542
• ig$XXHIBIT t
400 W. Capitol Avenue, Suite 2500
P.O. Box 3667
Utile Rock AR 72203-3667
501 372-1040 Fax 501 372-1250
200 E. 11th Avenue
P.O. Box 8306
Pine Bluff, AR 71611.8306
870 534-9172 Fax 870 534-2146
City of Fayetteville
Ms..Peggy Vice, Purchasing Manager
113 West Mountain
Fayetteville, Arkansas 72701
Dear Ms. Vice:
bkd.com
Thank you for considering BKD, LLP to perform professional services for the City of Fayetteville.
We are excited about the prospect of providing audit and other services to your city, and we are
confident that we can sufficiently meet your needs.
Attached you will find our proposal for services as per your request.
have any questions or need further information.
Thanks for your time and consideration.
21-P
BKD, LLP
Please let us know if you
AmRci d / P
Moans Amend mil
ntememW
City of Fayetteville
Proposal to
Provide Services
for
City of Fayetteville
City of Fa etteville
Table Of Contents
• Proposal Highlights
• What You Can Expect from BKD 5
• Qualifications 6
• Experience, Competence and Capacity 9
• Key Personnel 12
• Efficient and Effective Audit Approach 15
• Client References 20
• •BKD Quality Profile 21
• BKD Office Locations 22
• Peer Review Letter Appendix
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1
City of Fayetteville
Proposal Highlights
One of our largest practice specialties at BKD, LLP is accounting and financial
reporting for governmental and nonprofit organizations. The following highlights our
qualifications and experience as further explained in the proposal:
• BKD, with over 100 Arkansas personnel to serve you, has the largest accounting
practice in the state. Ten BKD personnel in Arkansas spend 100% of their time
providing services to our govemmental and nonprofit clients. This team, we
believe, can provide you with the highest quality service in Arkansas.
• We have developed an efficient audit approach which involves your accounting
personnel and our staff in a team approach. As such, we avoid wasted time in
non -risk areas and concentrate on areas of importance during our audit.
• In Arkansas, our commitment to local govemment, nonprofit organizations and
govemmental funded entities and utilities is particularly strong. Services to these
entities comprise approximately 18% of our practice's clientele.
• The Arkansas practice performs over 100 audits per year in accordance with
GAGAS and OMB A-133 guidelines.
• Your service team will be lead by Wm. Mike King and Kevin Kemp who specialize
in govemmental accounting.
3"
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access_
City of Fayetteville
Proposal Highlight
• BKD Arkansas is the current auditor of two of the largest municipalities within
Arkansas.
• BKD's team of skilled governmental audit specialists have assisted several
municipalities in eaming and keeping the GFOA Certificate of Achievement for
Financial Reporting from the Govemment Finance Officers Association. We
also have the resources available to assist in the implementation of
Govemmental Accounting Standards Board Statement (GASBS) No. 34, Basic
Financial Statements — and Management's Discussion and Analysis — for State
and Local Govemments.
• At BKD, we recognize the complexities of modem business, which often
require a thorough knowledge of specific industries. We have developed •
specialized knowledge of various industries and specialties including electric
utilities, municipalities and water and wastewater utilities, employee benefit
plans and arbitrage calculations.
• We will open and close our engagement with a meeting with you and any other
officials or committees deemed necessary in order to maintain lines of
communication and open disclosure of all areas of the audit process and
results of our findings. We will also provide you with a draft of our report to
review before we release our opinion on the financial statements.
At BKD our audit teams have two primary objectives: First is to provide you
with the most effective and efficient client service possible. Second is to
provide evaluation and comments on your intemal control structure and
operating procedures in order to recommend ways to possibly enhance them.
lap
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