93-4 SPEED MESSAGE
TO $ FROM
I,
SUB1Ect
DATEti,
-k !Z1,
z, r.' 'L!- �Y �•�.�i�-�� � "i C � ,. f� ��� r i��b'�cs"�/_�-%{�.��'f^ ':��-,, /�,' { ''�-r.l'y�-.. ���',
YL E� r
1 L �. r � -� C -L- z.� � ;�' �� L/ i�'Yl\l yt� � �c.'' -•L' f�
'r
SIGNED "f Z
WllsonJones•CaftnI—•MADE IN USA
DUPLICATE 44-9W Duplicate
Resolution No. 93-4
RESOLUTION
ACCEPTING THE PROPOSAL OF MCGLADREY & PULLEN
FOR ACCOUNTING SERVICES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Larry L. Rice, City Manager, be and is hereby
authorized and directed to accept the proposal on behalf of
the City of Elgin of McGladrey & Pullen for accounting
services, a copy of which is attached hereto and made a part
hereof by reference.
sl George VanDeVoorde
George VanDeVoorde, Mayor
Presented: January 13, 1993
Adopted: January 13, 1993
Omnibus Vote: Yeas 6 Nays 0
Recorded:
Attest:
sl Nancy Roll
Nancy Roll, Deputy Clerk
F,
CITY OF ELGIN
PROPOSAL TO PERFORM ACCOUNTING SERVICES
FIRM PREPARING PROPOSAL
McGLADREY & PULLEN
20280 GOVERNORS HIGHWAY
OLYMPIA FIELDS , ILLINOIS 60461
(708 ) 481 -8100
CONTACT PERSON
ROBERT W . THOMA
PROPOSAL DATE
DECEMBER 1 , 1992
ffiIVA
0
McGLADREY&PULLEN
Certified Public Accountants and Consultants
PART I
December 1 , 1992
Mr . Larry Rice
City Manager
City of Elgin
150 Dexter Court
Elgin , Illinois 60121
Dear Mr . Rice:
In response to your request , McGladrey & Pullen is pleased to
submit this proposal for accounting services . We feel our overall
expertise and familiarity with local government allows us to
provide you with the full range of professional services you need .
Enclosed please find our proposal . Again , thank you for allowing
us this opportunity .
Very truly yours,
McGLA�DRREEY_ & PULLEN
2
Robert W . Thoma, C .P . A .
Partner
RWT :mb
enc .
20280 Governors Highway, Suite 301, Olympia Fields, Illinois 60461
(708) 481-8100 FAX (708) 481-9365
Internationally Dunwoody Robson McGladrey & Pullen
1
PARK II
PROPOSED FEES AND BILLINGS
You have requested a proposal regarding the preparation of data
necessary to issue Internal Revenue Service Tax Forms 1099 to your
City vendors for the year ended December 31 , 1992 and for the
preparation of investment data related to four City bond issues for
submission to Chapman and Cutler regarding arbitrage calculations .
Our proposal is as follows :
Preparation of Investment Data
We will prepare the information as requested by Chapman
and Cutler for computation of the required rebate ( if
any ) on four outstanding City bond issues. We will
analyze all investment and accounting records as required
to provide this data. Our fee for these services would
be $3 , 500 .
Internal Revenue Service Form 1099 ' s
We will obtain tax information of new vendors for 1992 .
Upon returned receipt of this data you would enter the
federal identification numbers onto your computerized
vendor lists . After year end , the City would generate a
vendor list including amounts paid to same and federal
identification numbers ( if applicable ) . From this
listing we would report to you the vendors requiring Form
1099 . It is our understanding that your computers would
generate the 1099 ' s on magnetic tape for filing and the
actual 1099 ' s to be mailed from your office . Our fees
for these services would be $600 - $700 .
McGLADREY & PULLEN
Robert W . Thoma, C .P . A .
Partner
ACCEPTED:
CITY OF LG
By : `''� —
Date:
2 -
El . RPWIS o
in
Al Agenda Item No.
rpt •i
December 16, 1992
TO: Mayor and Members of the City Council
FROM: Larry L. Rice, City Manager
SUBJECT: Appointment of McGladrey & Pullen as 1992 Auditor
The firm of McGladrey & Pullen, Certified Public Accoun-
tants of Olympia Fields has now completed the second year of
a three audit contract for the City, and the final management
letter is the following agenda item. This action completes
their work for the year except for the attached supplemental
proposal to perform year-end accounting services on the Form
1099 's as well as the City's arbitrage report for the current
year 1992 relating to previous bond issues. The arbitrage
report must be submitted to Chapman and Cutler for their use
in our final reporting of the current year.
Because of the increased number of funds to be audited
and the increased work by the auditor this past year in com-
pleting the audit for 1991, the firm is asking for an amended
sum in the coming year (proposal available Tuesday) . We
expect to begin the audit process immediately in order to
complete the 1992 audit much earlier this coming year.
FINANCIAL IMPACT
The attached proposals for the arbitrage work ($3,500) ,
the 1099 preparation ($600-700) , additional audit costs in-
curred by the firm this past year ($3,000) , and the amended
contract for the coming audit year ($55,000 plus expenses not
to exceed $5,000) total an estimated $67, 100 which will be
paid from the various funds to which this work is related.
Mayor and Members of the City Council
December 16, 1992
Page 2
RECOMMENDATION
The City Council is asked to approve the attached con-
tracts for remaining 1992 and the coming audit year work,
place the management letter on file, and approve payment for
these additonal services as proposed.
La "L. Rice", City Manager
LLR:amp
Attachments
folk
D
McGLADREY&PULLEN
Certified Public Accountants and Consultants
December 8 , 1992
Mr . Larry Rice, Manager
City of Elgin
150 Dexter Court
Elgin , Illinois 60120
Dear Mr . Rice:
It was a pleasure to meet with you and the City board members
yesterday . I appreciate the concerns you have over the Village ' s
immediate finance department situation . I truly believe we can
provide the current and ongoing help you need . I will submit my
proposed fee schedule to my regional managing partner either this
week or early next week for approval . After my initial notifica-
tion to him of our withdrawal from the contract , I must now obtain
authorization to renew.
Larry , as you are aware , each bill we submitted to you for payment
during the audit engagement was held until a minimum of 60 days
before payment , and only paid upon our requests when they became
delinquent on our in-house records. We still have open bills
amounting to $5 , 880 that are between 90 and 120 days old . We would
appreciate the final payment of these bills as soon as possible.
The time incurred to compile data necessary to audit the sewer and
vehicular replacement funds was materially over original projec-
tions . The audit could not have been completed without this data.
Our total billing to you is $3 , 000 over our contract . We would ask
that you allow us to collect this addition as a partial reimburse-
ment to the out of pocket fees we incurred . This $3 ,000 is a part
of the outstanding bill mentioned earlier in this letter .
We look forward to serving you and becoming a full service member
of your financial team. If I can be of further assistance in this
or any other matter , please call .
Very truly yours ,
McGLADREY & PULLEN
Robert W. Thoma, C .P .A .
Partner
RWT :gb
20280 Governors Highway, Suite 301, Olympia Fields, Illinois 60461
(708) 481-8100 FAX (708) 481-9365
Internationally Dunwoody Robson McGladrey & Pullen