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City Clerk Document No.
City Council Meeting Date: April 10, 2025
AMENDMENT TO CITY OF CHANDLER AGREEMENT
AUDIT SERVICES
CITY OF CHANDLER AGREEMENT NO. 4596
THIS AMENDMENT NO. 2 (Amendment No. 2) is made and entered into by and between the City of
Chandler, an Arizona municipal corporation (City), and Heinfeld, Meech & Co., P.C. (Contractor), (City
and Contractor may individually be referred to as Party and collectively referred to as Parties) and made
, 2025 (Effective Date).
RECITALS
WHEREAS, the Parties entered into an agreement for audit services (Agreement); and
WHEREAS, the term of the Agreement was June 1, 2023, through May 31, 2024, with the option of up to
four one-year extensions; and
WHEREAS, the Parties wish to exercise the second option through this Amendment to extend the
Agreement for one year.
AGREEMENT
NOW THEREFORE, the Parties agree as follows:
1.
The recitals are accurate and are incorporated and made a part of the Agreement by this
reference.
2.
Section III is amended to read as follows: The Agreement is extended for a one-year period June
1, 2025, through May 31, 2026.
3.
The parties agree to the Scope of Services set forth in in Revised Exhibit A, attached hereto and
made a part of this Amendment No. 2.
4.
Section IV is amended to read as follows: The City will pay the Contractor the per unit cost set
forth in Revised Exhibit B, attached hereto and made a part of this Amendment No. 2. Total
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payments made to the Contractor during the term of this Amendment No. 2 will not exceed
$144,250.
5.
All other terms and conditions of the Agreement remain unchanged and in full force and effect.
If a conflict or ambiguity arises between this Amendment No. 2 and the Agreement, the terms
and conditions in this Amendment No. 2 prevail and control.
IN WITNESS WHEREOF, the Parties have entered into this Amendment on the Effective Date.
FOR THE CITY
FOR THE CONTRACTOR
By: _________________________________________
By: _________________________________________
Its: Mayor
Its: _________________________________________
APPROVED AS TO FORM:
By: _________________________________________
City Attorney
ATTEST:
By: _________________________________________
City Clerk
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Partner - Administration
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REVISED EXHIBIT A
SCOPE OF SERVICES
General Requirements
The audits must be performed in accordance with auditing standards generally accepted in the United
States, as set forth by the American Institute of Certified Public Accountants (AICPA), the standards set
forth for financial audits in the General Accounting Office (GAO) Government Accounting Standards (as
revised in 1994), the provisions of the federal Single Audit Act of 1984 (as amended in 1996) and U.S.
Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-
Profit Organizations, as well as the following additional requirements:
The State of Arizona Uniform Expenditure Reporting System requirements
The State of Arizona Department of Environmental Quality Local Government Financial Test
The U.S. Department of Housing and Urban Development (HUD) Financial Data Schedule (FDS) per
Chapter 2 of the Statement on Standards for Attestation Engagements (SSAE) No. 10 for the AICPA.
In addition, the Contractor may conduct, at the request of the City, other special audits or consulting
services for selected departments or programs.
Specific Requirements
The City requires the Contractor to express an opinion on the fair presentation of its basic financial
statements in conformity with accounting principles generally accepted in the United States.
The Contractor is not required to audit the combining and individual non-major fund financial
statements and supporting schedules. However, the Contractor will provide an “in-relation-to” report
on the combining and individual non-major fund financial statements and supporting schedules based
on the auditing procedures applied during the audit of the basic financial statements.
The Contractor will be responsible for performing certain limited procedures involving required
supplementary information required by the Governmental Accounting Standards Board as mandated
by auditing standards generally accepted in the United States.
The Contractor is not required to audit the schedule of expenditures of federal awards. However, the
Contractor will provide an “in-relation-to” report on that schedule based on the auditing procedures
applied during the audit of the financial statements.
Reports
Following the completion of the audit of the year’s financial statements, the Contractor will issue:
A report on the fair presentation of the City’s financial statements in conformity with accounting
principles generally accepted in the United States, including an opinion on the fair presentation of
the supplementary schedule of expenditures of federal awards “in-relation-to” to the audited
financial statements.
A report on the fair presentation of the financial statements of the Chandler Cultural Foundation in
conformity with accounting principles generally accepted in the United States.
A report on compliance and on internal control over financial reporting based on an audit of
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financial statements generally accepted government auditing standards.
A report on compliance and internal control over compliance applicable to each major federal
program.
A report on compliance with the Uniform Expenditure Limitation reporting system requirements,
ARS 41-1279.07.
A report on compliance with the Arizona Department of Environmental Quality Local Government
Financial Tet, 40 CFR 258.74.
Electronic submission of the Financial Data Schedule (SF SAC) to HUD’s Real Estate Assessment
Center (REAC).
A report on the fair presentation of the financial statements of the Chandler Health Care Benefit
Trust Fund of the City in conformity with accounting principles generally accepted in the U.S.
A report on the fair presentation of the financial statements of the Chandler Worker’s Compensation
and Employer Liability Trust Fund of the City in conformity with accounting principles generally
accepted in the United States.
A bi-annual report on the Purchasing Card program beginning with fiscal year ending June 30, 2023.
A bi-annual report on applying agreed-upon procedures related to the certification of land use
assumptions, infrastructure improvement plan and development impact fees.
Assist in presentation of audit results to City Council per requirements of ARS § 41-1494.
In the required reports on compliance and internal controls, the Contractor will communicate any
significant deficiencies found during the audit. A significant deficiency is a control deficiency, or
combination of control deficiencies, that adversely affects the entity’s ability to initiate, authorize,
record, process, or report financial data reliably in accordance with generally accepted accounting
principles. Material weaknesses will also be identified as such in the report. Other matters discovered
by the Contractor will be reported in a separate letter to management, which will be referred to in the
report(s) on compliance and internal controls.
Irregularities and Illegal Acts. Contractor will be required to make an immediate, written report of
all irregularities and illegal acts or indications of illegal acts of which it becomes aware to the City’s
Deputy City Manager/CFO.
Contractor will ensure that the City is informed of each of the following:
The Contractor’s responsibility under auditing standards generally accepted in the United States
Significant accounting policies
Management judgments and accounting estimates
Significant audit adjustments
Other information in documents containing audited financial statements
Disagreements with management
Management consultation with other accountants
Major issues discussed with management prior to retention
Difficulties encountered in performing the audit
Special Considerations
The City will send its Annual Comprehensive Financial Report to the Government Finance Officers
Association of the United States and Canada for review in their Certificate of Achievement for
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Excellence in Financial Reporting program (Certificate Program). The Contractor will be required to
review the financial statements against the Certificate Program checklist to ensure compliance with
the requirements of that program.
The City typically prepares one or more official statements each year in connection with the sale of
debt securities, which contains the basic financial statements and the auditor’s report thereon.
Currently, the City does not require its Contractor to issue a “consent and citation of expertise” as
the auditor and/or any necessary “comfort letters.” However, the Contractor will be required, if
requested by the City’s financial advisor and/or underwriter, to issue such letters, as needed.
The City has determined that the U.S. Department of Housing and Urban Development will function
as the cognizant agency in accordance with the provisions of the Single Audit Act of 1984 (as
amended in 1996) and U.S. Office of Management and Budget (OMB) Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations.
The schedule of expenditures of federal awards and related auditor’s report, as well as the reports
on compliance and internal controls are not to be included in the Annual Comprehensive Financial
Report but are to be issued separately.
Working Paper Retention and Access to Working Papers
All working papers and reports must be retained, at the Contractor’s expense, for a minimum of five
(5) years, unless the Contractor is notified in writing by the City of the need to extend the retention
period. The Contractor will be required to make working papers available, upon request, to the
following parties or their designees: City, U.S. Department of Housing and Urban Development,
United States General Accounting Office (GAO), parties designated by the federal or state
governments or by the City as part of an audit quality review process, and auditors of entities of
which the City is a sub-recipient of grant funds.
In addition, the Contractor will respond to the reasonable inquiries of successor auditors and allow
successor auditors to review working papers relating to matters of continuing accounting
significance.
Components for Fiscal Year and Calendar Year Audits will include, but not be limited to the
following, and will be scheduled with mutually agreed upon dates:
Entrance conference with Accounting Senior Manager, Financial Services Assistant Director, Deputy
City Manager/CFO and key personnel.
Note: The purpose of this meeting will be to discuss the interim work to be performed. This meeting will
also be used to establish overall liaison for the audit, to make arrangements for workspace and any other
needs of the Contractor.
Detailed Audit Plan
Note: The Contractor will provide the City with both a detailed plan and a list of all schedules to be
prepared by the City. Future years meeting dates, as applicable, will be determined mutually by the City
and the Contractor.
Commencement of year-end-audit field work
Completion of audit field work
Draft Financial Statements
Note: The City will provide the Contractor with a draft of the Annual Comprehensive Financial Report for
review.
Exit interview with Accounting Senior Manager, Financial Services Assistant Director and Deputy City
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Manager/CFO
Note: The purpose of the meeting will be to summarize the results of the field work, review significant
findings and review the draft financial report.
Signed Auditors Opinion delivered to the City
Assistance to be provided to the Contractor and Report Preparation
Accounting Division and Clerical Assistance - the Accounting Division staff and responsible
management personnel will be available during the audit to assist the Contractor by providing
information, documentation and explanations. The preparation of confirmations will be the
responsibility of the City.
Electronic Data Processing (EDP) Assistance - the City’s Information Technology Division personnel
will be available to provide systems documentation and explanations.
Statements and Schedules to be prepared by the City Staff - City staff will prepare the trial balances
and all required statements and schedules for the Contractor in accordance with the above list of
reports.
Work Area, Telephones, and Photocopying/fax services - the City will provide the Contractor with
reasonable workspace, desks and chairs, access to a telephone line, and photocopying/fax facilities.
Report Preparation - City staff will prepare, print and bind the Annual Comprehensive Financial
Report, the ADEQ report and the Uniform Expenditure Reporting System report. The Contractor will
prepare, print, and bind the single audit report, Chandler Health Care Benefit Trust report, Chandler
Worker’s Compensation and Employer Liability Trust report, and Chandler Cultural Foundation
report.
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REVISED EXHIBIT B
COMPENSATION AND FEES
Fees are inclusive of all services included in the Scope of Services.
DESCRIPTION
FY 22/23
FY 23/24
FY 24/25
FY 25/26
FY 26/27
Annual Comprehensive
Financial Report
$76,500
$78,800
$81,150
$83,600
$86,100
Chandler Cultural
Foundation Report
$16,850
$17,350
$17,900
$18,400
$18,950
Chandler Museum
Foundation Report
$11,000
$11,350
N/A
N/A
N/A
Single Audit Reports
(Uniform Guidance)
$18,750
$19,300
$19,850
$20,450
$21,100
Annual Expenditure
Limitation Report
$1,500
$1,550
$1,600
$1,650
$1,700
ADEQ Landfill Assurance
Report
$2,250
$2,325
$2,400
$2,475
$2,550
Chandler Worker’s
Compensation and Employer
Liability Trust Fund Report
$7,500
$7,725
$7,950
$8,200
$8,450
Chandler Purchase Card
Review Report
$3,650
N/A
$3,850
N/A
$4,050
Development Impact Fees
Report
N/A
$14,500
N/A
$15,000
N/A
TOTAL
$138,000
$152,900
$134,700
$149,775
$142,900
DESCRIPTION
CY 2023
CY 2024
CY 2025
CY 2026
CY 2027
Chandler Health Care
Benefits Trust Fund Report
$9,000
$9,275
$9,550
$9,825
$10,125
Professional Hourly Fees for Additional Services
Personnel
Hourly Rate
Partners
$297.05
Managers
$233.40
Supervisory Staff
$175.05
Staff
$127.31
Other (Specify) – Administrative
$79.57
The above hourly rates will be used for the first contract year. These hourly rates will be increased by
3% annually for any additional work completed in subsequent contract years.
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