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Home My WebLink AboutEDB Harrington CPA EXECUTIVE SUMMARY AGENDA ITEM: Proposed Engagement Letter with Harrington&Associates CPAs (Harrington) Date: February 14, 2023 BACKGROUND: The Finance department is currently staffed with four(4)full time employees. The upcoming ERP Project will require heavy involvement from the Finance department. Our Assistant Chief Financial Officer will be 100% committed to the project as the Project Manager and our Chief Financial Officer and Financial Assistant will both be committing approximately 25%of their time to the project. During the 15-month project period it will be necessary to supplement our current Finance department staff. Experienced, part-time assistance will allow the Finance department to continue to provide timely and accurate financial statements to both management and the Board, while maintaining all necessary segregation of duties. a Harrington & Associates CPAs has the staff availability and experience necessary to supplement our c staffing needs. m a oSection 17,last sentence,of Chapter 94-491,Laws of Florida, Special Acts of 1994, states: c L "Nothing in this section shall be deemed to prevent the authority from hiring or retaining such re engineers, attorneys, financial experts, or other technicians as it shall determine, in its discretion, or from undertaking any construction work with its own resources, without any such public advertisement." CCUA's current purchasing policy Section 6.F. states: "Professional services, as permitted under Section 17 of Chapter 94-491, are excluded from the public advertisement and competitive bidding requirements. Except in the case of an emergency,as described in section A. above, such services shall be approved in advance by the Board of Supervisors." BUDGET: Staff determined the fee for professional services is fair, competitive, and reasonable. Harrington will be paid monthly based on the number of hours billed. Staff anticipates using Harrington and Associates for 2 to 4 hours per week. This engagement results in fees of$160 to $320 per week or$9,600 to $19,200 over the course of the next 15 months. Staff budgeted $1,614,105 for the ERP project in this year's operating budget of which$1,358,600 is still available for ERP related costs. RECOMMENDATION: Staff respectfully recommends the Board of Supervisors' approval of the Engagement Letter with Harrington&Associates CPAs. //KO (Author) //KO (Review) //JW//JDJ(Final) ATTACHMENTS: Harrington&Associates CPAs Engagement Letter //KO (Author) //KO (Review) //JW//JDJ(Final) 14A. HARRINGTON 6ASSOCIATES CERTIFIED PUBLIC ACCOCN1:AN PS February 14th, 2023 Clay County Utility Authority Attention: Jeremy Johnston, Executive Director Dear Jeremy, We are pleased to provide a quote for accounting services for Clay County Utility Authority for the year ending December 31, 2023. You have requested that we perform the following services: 1) We will provide you with the bookkeeping services listed on the following exhibit based on the needs of the organization. to Weekly Monthly Quarterly Annually Record Journals X Post General Ledger X Reconcile Bank Statements X Post Earnings Records X The bookkeeping services are for approximately 15 months starting March 1, 2023. You have estimated 2 hours per week after initial training. You are responsible for all management decisions and responsibilities and for designating an individual with suitable skills, knowledge, and experience to oversee our bookkeeping, payroll, and tax services. You are responsible for evaluating the adequacy and results of the services performed and accepting responsibility for such services. Bookkeeping services are billed at $80 per hour on a monthly basis. We offer CPA Consultation Services at the rate of$150 per hour. The fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the work performed. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Our invoices for these fees will be rendered each month as work progresses and are payable 45 days from the invoice date. You agree to hold us harmless and to release, indemnify, and defend us from any liability or costs, including attorney's fees, resulting from management's knowing misrepresentations to us. We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you acknowledge and agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. You may request that we perform additional services not contemplated by this engagement letter. If this occurs, we will communicate with you regarding the scope of the additional services and the estimated fee. We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, to our services will continue to be governed by the terms of this engagement letter. Harrington & Associates CPAs acknowledges Clay County Utility Authority's obligations under Art. 1, Section 24, Florida Constitution, and Chapter 119, Florida Statutes, as from time to time amended (together, the Public Records Laws), to release public records to members of the public upon request. Harrington &Associates CPAs acknowledges that Clay County Utility Authority is required to comply with the Public Records Laws in the handling of the materials created under this agreement and that the Public Records Laws control over any contrary terms in this agreement. Harrington & Associates CPAs shall comply with all requirements of Chapter 119, Florida Statutes, to the extent applicable to the records and documents associated with this agreement. In accordance with Section 119.0701(3)(a), Florida Statutes (or successor statutes), a request to inspect or copy public records related to this agreement must be made directly to Clay County Utility Authority. 2 IF HARRINGTON & ASSOCIATES CPAS HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO HARRINGTON & ASSOCIATES CPAS' DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT CLAY COUNTY UTILITY AUTHORITY'S CUSTODIAN OF PUBLIC RECORDS AT (904) 272-5999, Ivalentin@clayutility.org, 3176 OLD JENNINGS RD., MIDDLEBURG, FL 32068. Notwithstanding any contrary term in this agreement, (i) travel and other ancillary expenses incurred by Harrington &Associates CPAs in connection with the services shall be reimbursed by Clay County Utility Authority only for documented actual and reasonable expenses incurred in accordance with Section 112.061, Florida Statutes, without mark-up, up to the limits established for the expenses and only as approved in writing in advance by Clay County Utility Authority, and (ii) all payments due from Clay County Utility Authority will be governed by the Local Government Prompt Payment Act, which provides that payments will be made not later than 45 days from receipt of proper invoice. to Sincerely, Harrington &Associates CPAs Acknowledged: Jeremy Johnston Executive Director Date 3