HomeMy WebLinkAbout2003 09 30 Proposed Annual Budget - City of Friendswood Fiscal years 2003,2004,2005 •
Appendix D
Professional Fees and Expenses
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PROPOSAL FOR AUDITING SERVICES
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CITY OF
FRIENDSWOOD, TEXAS
Fiscal Years Ending September 30, 2003, 2004, and 2005
Submitted
September 9, 2003
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by:
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•Robert Belt, CPA
of
Sandersen Knox& Belt,L.L.P.
Certified Public Accountants
7887 Katy Freeway, Suite 190
Houston, Texas 77024
(713)263-1123 (713) 263-1550 fax
I am entitled to represent the firm, empowered to submit the bid, and authorized to sign a contract with
the City.
Robert Belt, CPA, Partner
•
APPENDIX D
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
Sandersen, Knox&Belt, L.L.P.
Combined Estimate September 30, 2003:
Tentative time budget by staff level
Standard Quoted
Hourly Hourly
Hours Rates Rates . TOTAL
Partners 105 $175 $140 $14,700
Managers 190 $125 $100 $19,000
Supervisory (Senior) 95 • $100 $80 $7,600
Staff II (Incharge) - $80 $64
Staff I (trainnee) - not used by our firm n/a n/a n/a n/a
Total 390 $41,300
Meals and lodging $0
Transportation $0
Other(printing CAFR(50), single audit reports(20),&management letters(20)) $650
.Estimate (Total Not to Exceed Cost) $41,950
Estimated by Nature of Services to be providided:
2003 2004** 2005
Audit of Financial Statements $27,450 $30,195 $31,403
Preparation of CAFR(under new reporting model)* $8,500 $8,840 $9,194
Single Audit $6,000 $6,240 $6,490
$41,950 $45,275 $47,086
*Includes basic consulation on GASB 34, but does not include preparation of supporting schedules.
**Includes SAS 99 implementation 5% estimated increase on audit service
Additional costs are estimated at 4% annually without regard to new accounting standards
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ESTIMATED FEES SECTION
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CERTIFIED PUBLIC ACCOUNTANTS
PROFESSIONAL CORPORATION
Certification:
The person signing the proposal is entitled to represent the firm, empowered to
submit the proposal and authorized to sign a contract with the City of
Friendswood.
Total All-Inclusive Maximum Proposed Fees
Financial Single Audit
Fiscal Statement Preparation Procedures and
Year Audit of CAFR Reporting*
2003 $ 29,600 $ 7,500 $ 6,000
2004 31,100 7,500 6,000
2005 32,700 7,500 6,000
(*) A review of the City's CAFR indicates the City has been subject to Sate or Federal Single audit
requirements based on FEMA grants in the past. With increasing"floors"on federal and state
funding(increases in minimum funding amounts required for single audit procedures)it is unlikely
that the City will require the services in the near future.
*
Date Submitted September 9, 2003
35
ESTIMATED FEES
Obviously, fee considerations are an important factor in selecting a firm for professional services
such as auditing and consulting. In this regard, we welcome input on our fee estimate levels during
the proposal process. As you are aware, we would very much like to have the opportunity to serve
the City and would welcome the opportunity to discuss the appropriateness of our fee estimate
levels, especially if they become a significant factor in making our firm the City's choice.
Our plans for service include up to 375 hours of time commitment by our partners, managers, and
professional staff. Our fee estimate for services relating to the City's annual financial audit is
$29,600 with additional fees of $7,500 for report preparation fees. We feel that this time
commitment will benefit the City by allowing our firm to provide the highest levels of service by
the most efficient means available. This approach should be a clear indication of our desire to fully
serve the City Council through the creation of professional relationships with management and
staff.
We would expect to remain within this fee level unless factors considered by us in estimating the
fee level change significantly. Should circumstances dictate that material increases in our time
requirements are necessary,we would discuss this with management and City Council immediately.
We would not bill the City for amounts in excess of our estimated fees without first discussing the
matter and receiving approval from management. We will review the status and integrity of our fee
estimates at the conclusion of each year's work with City staff.
Fees for our services are based on our standard hourly rates. These rates vary based on the level of
our staff performing services. Professional service fees estimated and proposed for performing the
audit services requested are based on the time expected to be expended by our staff in doing the
work. Our billing procedures are performed monthly. We would bill the City for our services on a
monthly basis as services are performed
Our fee estimate for professional services is detailed by staff level and component as follows:
Standard Standard
Hourly Quoted
Rates Rates Hours Fees
Partners 160 135 60 $ 8,100
Managers 120 110 100 11,000
Staff 85 75 140 10,500
Total 300 $ 29,600
Comprehensive Annual Report Preparation 75 $ 7,500
375
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ESTIMATED FEES (continued)
The estimate above contemplates an investment of approximately 14% for hours charged to the
engagement for the 2003 year.
Auditing services fees for subsequent years would remain at similar levels assuming the scope and
operations remain unchanged. We would contemplate discussing fee levels with the City Council
on an annual basis prior to commencing work.
Routine advisory services provided through phone calls, conferences, or otherwise in connection
with incidental matters arising during the course of a year would not be billed separately but would
be absorbed in our estimated-annual fee. We encourage open lines of communication throughout
the year as part of our services. Requested special projects will be evaluated on a case-by-case
basis and those projects requiring levels of time commitment by our staff will be arranged,
including any necessary professional fees, with management before beginning the .requested
projects.
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