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HomeMy WebLinkAboutRes2022-123 Carmen Jackson Contract Extension Sponsored by: Bower CITY OF SEWARD,ALASKA RESOLUTION 2022-123 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD ALASKA, AUTHORIZING THE CITY MANAGER TO EXTEND THE CONTRACT WITH CARMEN JACKSON CPA,LLC FOR FINANCE AND ACCOUNTING SERVICES UNTIL DECEMBER 31,2023 WHEREAS,the City is un-funding the Finance Director position for FY23; and WHEREAS, City Council approved Resolution 2021-142 on December 31, 2021, which authorized the City Manager to enter into a contract with Carmen Jackson CPA, LLC; and WHEREAS, City Council approved Resolution 2022-070 to extend the contract until December 31, 2022; and WHEREAS, in an effort to assist the Finance Department, the City Manager proposes extending the contract with Carmen Jackson CPA, LLC for finance and accounting services until December 31, 2023; and WHEREAS, Carmen Jackson CPA, LLC is a public accounting firm serving Alaska, specializing in rural financial services, rural tax services,management services, audit preparation services, and consulting services; and WHEREAS, Carmen Jackson CPA, LLC will perform standard Interim Finance Director and other governmental accounting services to assist the Finance Department; and WHEREAS, the hourly rate for the services ranges between $100-$175 per hour depending upon the service provided; and WHEREAS, the Firm's duties may be performed on-site or off-site, duties performed on- site will be reimbursed by the City on a per-occurrence basis; and WHEREAS, the services provided by Carmen Jackson CPA, LLC have proven to be valuable to the Finance Department since the inception of the contract aiding in the budget process; and WHEREAS, funding for this contract is included in the 2023 operating budget; and WHEREAS,this will cover expenses for the current contract until December 31,2022 and approving the extension of the contract until December 31, 2023. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: CITY OF SEWARD, ALASKA RESOLUTION 2022-123 Section 1. The city manager is hereby authorized to extend the contract with Carmen Jackson CPA, LLC through December 31, 2023. Section 2. Funding in the amount of $75,000 is hereby transferred from the Salaries expense account no. 01000-1140-6000 to Finance Department Contracted Services account no. 01000-1140-7009 within the 2022 operating budget. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12th day of December, 2022. THE CITY OF SEWARD, ALASKA QuArt1TCOLt.c- Sue McClure, Mayor AYES: Osenga, Wells, Finch, Barnwell, Calhoon, McClure NOES: None ABSENT: DeMoss ABSTAIN: None ATTEST: Brenda J. Ba lou MC City Clerk• �OF SF �s , (City W�' GO f4 '•. SEAL _ • = ,,�FOF ASP,;.0 City Council Agenda Statement a Meeting Date: December 12,2022. `. To: City Council Through: Janette Bower, City Manager From: Sully Jusino, Deputy Finance Director Subject: Resolution 2022-123: A Resolution of The City Council Of The City Of Seward Alaska, Authorizing The City Manager To Extend The Contract With Carmen Jackson CPA, LLC For Finance And Accounting Services Until December 31, 2023 Background and justification: In order to support the Finance Department and improve department operations, City Council approved Resolution 2021-142 on December 13, 2021. This resolution approved a contract with Carmen Jackson CPA, LLC for the duration of January to June 30, 2022. The City Manager has seen a high level of value in this contract and has determined it is in the best interests of the City of Seward to retain their services until at least December 31, 2023. Carmen Jackson CPA, LLC has a high of experience in supporting Alaska municipalities in all aspects of financial operations and management and is contributing significantly to the day to day operations of the Finance Department as well as examining and improving the processes, procedures, and methods by which the Department conducts its work. The City of will require the services of Carmen Jackson CPA, LLC. until at least such a time as a new Finance Director is hired and onboarded. This resolution extends the contract agreement until December 31, 2023 and provides the necessary funds for FY22. Please note that funding for the duration of 2022 is being transferred from personal to contracted services in the FY 2022 Finance Department budget. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.7.1.3 Continue to improve the quality and efficiency of city governmental services. Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 75,000 This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ X Has no fiscal impact 85 Funds are (✓): x Budgeted Line item(s): 01000-1140-7009 Not budgeted Not applicable Fund Balance Information Affected Fund (✓): x General SMIC Electric Wastewater Boat Harbor Parking F1 Water F1 Healthcare Motor Pool Other Note: amounts are unaudited Fund Balance/Net position — restricted $ 2,575,000 Fund Balance/Net position — unrestricted/unassigned $ 7,776,797 Available Unrestricted Cash Balance: $ 10,025,076 Finance Signature: Attorney Review RYes Attorney Signature: Not applicable Comments: Administration Recommendation x Adopt Resolution Other: 86 CARMEN JACK50N CPA , LLC December 30, 2021 Dear Janette Bower: Carmen Jackson CPA, LLC (Firm) appreciates the opportunity to work with the City of Seward (City). This letter is to confirm and specify the terms of the engagement with the City. We hope to better meet your expectations of service by clearly identifying the particular services to be provided and their frequency. The services will cover services provided beginning with the execution of this letter and end June 30, 2022. The City is responsible for overseeing any consulting services, audit preparation services, or other services the Firm provides by designating an individual, preferably within senior management,who possesses suitable skill, knowledge, and/or experience. In addition, the City is responsible for evaluating the adequacy and results of and accept responsibility for the results of such services. City staff will be available to assist the Firm team members by providing information,documentation,and explanations. The quality and timeliness of this information will directly affect the cost of the services the Firm provides to the City. The City will provide the Firm with timely information and documents to successfully work in these areas. None of the services can be relied on to disclose errors,fraud, or illegal acts. However,the Firm will inform the City of any material errors and of any evidence of information that comes to our attention during the performance of our procedures,that fraud may have occurred. In addition,the Firm will inform you of any evidence or information that comes to our attention during the performance of our procedures regarding illegal acts that may have occurred, unless they are clearly inconsequential. This engagement is not specific to reviewing or improving the City's internal controls and the Firm has no responsibility to identify and communicate deficiencies in internal controls as part of this engagement. However,in the course of our work as outlined in the services listed below,if the Firm otherwise discovers significant deficiencies in internal controls a Firm team member will bring those items to management's attention. The frequency of the services that the Firm team members expect to provide is on an as requested and as provided basis. Please review the information below and make any changes necessary. Interim Finance Director services to include: o Fiscal planning and recommendations for updates to City Fiscal Policies and Procedures o Timely reporting for all grants, grants management and specialty reporting for governments o Communication with internal stakeholders o Assistance with the preparation of monthly financial statements for internal stakeholders o Annual audit preparation and annual budget preparation and amendments o Review and advise on contracts at the request of the City Manager 2521 E. Mtn. Vlg. Dr. Governmental and Not-for-Profit Pk : (907) 357-2671 Ste. B PMB 209 Audit Preparation : Interim Staffing W : carmenjacksoncpa.com Wasilla, Alaska 99654 Accounting A$95tance E : carmenjackson@cpa.com Interim Finance Director Engagement Letter City of Seward Page 2 o Assistance with evaluating current staff and hiring of new staff o Accounts payable processing,review, approval, and training o General ledger accounting including journal entries, bank reconciliations, reconciliation of all balance sheet accounts and revenue and expenditure accounts o Training City Accounting and Finance personnel Carmen Jackson, CPA is the Firm President and is responsible for supervising the engagement and signing reports or authorizing another individual to sign. Crystal Miner, MBA is the Firm Business Manager and is responsible for coordination of Firm resources assigned to the City. Further, Crystal will coordinate with the CEO, or designee, Firm duties, engagement objectives, and other administrative duties of the engagement. Aminata Taylor, CPA is the Firm Supervising CPA and is responsible for coordination of services with the Firm Business Manager and oversight of all Firm accounting staff assigned to the City account. Documents prepared and provided by Carmen Jackson CPA, LLC accounting firm team members are confidential and proprietary and not to be shared or given to third parties without express written permission by Carmen Jackson CPA, LLC. This engagement cannot be assigned to a successor on either side. To ensure that our independence is not impaired under the AICPA Code of Professional Conduct,the City agrees to inform the engagement partner before entering into any substantive employment discussions with any Firm personnel. It is our policy to keep records related to this engagement for seven years. However, the Firm does not keep any original records,so all original documents will be returned to the City when they are no longer needed for our use or at the City's request. When records are returned to the City, it is your responsibility to retain and protect the records for possible future use, including potential examination by governmental or regulatory agencies. The City will provide access to City accounting software and network documents as needed. Firm team members may use Firm-owned or City-owned computers during the engagement. The Firm will not be responsible for updates or maintenance of the City computer hardware, software, or network. As some requirements of the City will need to be completed remotely,the Firm may provide services via remote access to the City's system,upon approval from the City Manager. Remote access may be provided and supported by either the City or the Firm. The provider of the access will be responsible for the maintenance of the remote connection. Firm team members will handle all use of City data and information in a professional and confidential manner. Should the City request services be provided on-site, the City will provide tables, chairs, access to wireless services, a photocopier, and basic office supplies while Firm staff are on-site. In addition, travel costs and per diem will be agreed upon prior to a Firm team member booking travel. The Firm may from time to time,and depending on the circumstances,use certain third-party service providers in serving your account. Confidential information may be shared about the City with these 90 Interim Finance Director Engagement Letter City of Seward Page 3 service providers,but the Firm remains committed to maintaining the confidentiality and security of your information. Accordingly, the Firm maintains internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, the Firm will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of confidential information to others. In the event that the Firm is unable to secure an appropriate confidentiality agreement, the City will be asked to provide consent prior to the sharing of your confidential information with the third- party service providers. Furthermore,the Firm will remain responsible for the work provided by any such third-party service providers. Fees for these services will be: Position: Per Hour Fee: President/Managing Member $175 Supervising CPA $165 Certified Public Accountant $145 Business Manager/Project Management $145 Accounting Supervisor $135 Senior Accountant $125 Accountant $100 Interim Finance Director services will be ongoing in nature and the monthly estimated fee is between $10,000 and $20,000. This engagement will not require a retainer. The City will also be billed for out-of-pocket costs such as report production,word processing,postage,travel,etc. The fee estimate is based on anticipated cooperation from City personnel and the assumption that unexpected circumstances will not be encountered during the work performed. If significant additional time is necessary, the Firm will discuss it with the City and arrive at a new fee estimate before additional costs are incurred. Firm invoices for these fees will be rendered as work progresses and are payable on presentation. Invoices may be paid by check or direct bank transfer. In accordance with Firm policies,work may be suspended if your account becomes 15 days or more overdue and will not be resumed until the account is paid in full. If the Firm elects to terminate services for nonpayment, the engagement will be deemed to have been completed upon written notification of termination,even if the Firm has not completed a report. The City will be obligated to compensate the Firm for all time expended and to reimburse the Firm for all out-of-pocket expenditures through the date of termination. Additionally,the Firm reserves the right to withdraw from this engagement for any reason. The City may request that the Firm perform additional services not contemplated by this engagement letter. If this occurs, the Firm engagement partner will communicate with the City regarding the scope of the additional services and the estimated fee. A separate engagement letter may be issued covering the additional services. In the absence of any other written communication from the Firm 91 Interim Finance Director Engagement Letter City of Seward Page 4 documenting such additional services Firm services will continue to be governed by the terms of this engagement letter. If any portion of this engagement letter is invalid or unenforceable for any reason,the remainder of the agreement remains valid. We appreciate the opportunity to be of service to the City and believe this letter accurately summarizes the significant terms of the engagement. If the City has any questions, please let the Firm engagement partner know. If you agree with the terms of the engagement as described in this letter, please sign the enclosed copy and return it to the Firm engagement partner. If you have any questions,please do not hesitate to contact the Firm President or Business Manager. We appreciate the opportunity to work with you. Sincerely, V Carmen Jackson CPA, LLC Accepted b� 4,rrlj�d - Janette Bower, City Manager 12/30/2021 Date Comments or additional requests: 92