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2016-09-08Regular 2016 Term THE STATE OF TEXAS § COUNTY OF CALHOUN § Held September 8, 2016 BE IT REMEMBERED, that on this 8th day of September, A.D., 2016 there was begun and holden in the Commissioners' Courtroom in the County Courthouse in the City of Port Lavaca, said County and State, at 10:00 A.M., a Regular Term of the Commissioners' Court within said County and State, and there were present on this date the following members of the Court, to -wit: Michael J. Pfeifer County Judge Roger C. Galvan Commissioner, Precinct #1 Vern Lyssy Commissioner, Precinct #2 Neil Fritsch Commissioner, Precinct #3 Kenneth W. Finster Commissioner, Precinct #4 Anna Goodman County Clerk Josie Sampson Deputy County Clerk Thereupon the following proceedings were had: Commissioner Galvan gave the Invocation. Commissioner Finster led the Pledge to the US Flag and Commissioner Fritsch led the Pledge to the Texas Flag. APPROVE MINUTES OF JULY 28, 2016 AND AUGUST 11, 2016 MEETINGS: Commissioner Lyssy made a motion to approve Minutes of July 28, 2016 and August 11, 2016 meetings. Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. Regular July 2016 Term THE STATE OF TEXAS § COUNTY OF CALHOUN § Held July 28, 2016 BE IT REMEMBERED, that on this 28th day of July, A.D., 2016 there was begun and holden in the Commissioners' Courtroom in the County Courthouse in the City of Port Lavaca, said County and State, at 10:00 A.M., a Regular Term of the Commissioners' Court within said County and State, and there were present on this date the following members of the Court, to -wit: Michael Pfeifer Roger C. Galvan Vern Lyssy Neil Fritsch Kenneth W. Finster Anna Goodman Josle Sampson County Judge Commissioner, Precinct #1 Commissioner, Precinct #2 Commissioner, Precinct #3 Commissioner, Precinct #4 County Clerk Deputy Clerk Thereupon the following proceedings were had: Commissioner Galvan gave the Invocation. Commissioner Finster led the Pledge to the US Flag and Commissioner Fritsch led the Pledge to the Texas Flag. Regular August 2016 Term THE STATE OF TEXAS § COUNTY OF CALHOUN § Held August 11, 2016 BE IT REMEMBERED, that on this IIth day of August, A.D., 2016 there was begun and holden in the Commissioners' Courtroom in the County Courthouse in the City of Port Lavaca, said County and State, at 10:00 A.M., a Regular Term of the Commissioners' Court within said County and State, and there were present on this date the following members of the Court, to -wit: Michael Pfeifer CountyJudge Roger C. Galvan Commissioner, Precinct #1 Kenneth W. Finster Commissioner, Precinct #4 Anna Goodman County Clerk Josie Sampson Deputy Clerk Commissioners Vern Lyssy and Neil Fritsch were absent. Thereupon the following proceedings were had: Commissioner Galvan gave the Invocation and Commissioner Finster led the Pledge to the US Flag and to the Texas Flag. REPORT FROM MEMORIAL MEDICAL CENTER: Jason Anglin, Memorial Medical Center CEO, presented the Memorial Medical Center report for the month of July. Mr. Anglin reported a Net Income of $51,764 for the month, which increased the Year to Date Income to $2,079,845. The July income included $181,869 from the Nursing Home MPAP program Memorial Medical Center - Port Lavaca, Texas CEO Report August 18, 2016 Financial Results: In July we had a Net Income of $51,764 increasing our Income for the year to $2,079,845. July included $181,869 benefit from the Nursing Home MPAP program. Waiver 1115 updates We continue participating on the 1115 Waiver Monthly Calls for Region 3. Roshanda attended a waiver workgroup meeting in Georgetown, TX. The proposed group collaborative plan to be presented to HHSC at the Statewide Learning Collaborative in August. Statewide Learning Collaborative coming up August 30th-311`. Roshanda will be attending in person and Jason and Jerry will be attending via video conference. Memorial Medical Clinic We have started seeing worker's compensation patients. Physician Recruitment- We have an OBGYN candidate scheduled for a site visit August 25th-26th. Laboratory We are having issues with the temperature being too hot in the lab. When the temperature reaches a certain level our lab can no longer do certain testing. We have used portable units to supplement the cooling to the lab for years. Recently, plant operations added an additional portable unit to increase airflow to the lab. For a permanent solution, plant operations will be adding permanent units dedicated to the lab. Pharmacy In August will be implementing the use of special Pharmacy waste disposal containers. (new pharmacy requirement.) Cardiac Pulmonary Rehab — Program start date is August 301h. TORCH Grant We received some grant funds which helped pay for some training of department managers. TORCH Meeting We hosted a meeting of five hospitals and representatives from TORCH on August 181n Information on Board Items: Renewal of Studer Group Agreement- We have on the agenda for renewal of our agreement with the Studer Group. One of our Waiver projects ties into the Studer program. Renewal of agreements with Cantex regarding Nursing Homes -As you know the current Nursing Home MPAP program ends in September with funding benefits continued thru February 2017. HHSC is working with CMS on a new program and at this point looks like they are targeting implementation of new program in the Fall of 2017. We would like to continue the relationship with Cantex in anticipation of a new Nursing Home program in Fall of 2017. Lab Reagent rental agreement with Beckman/Coulter- This is a renewal agreement at a cost savings. Educational Readings: Texas Hospital Association (THA)— Hospital Financing Overview THA Advocacy News Editorial: Here's why Texas must expand Medicaid Closed Session — I have a closed session posted for Quality and for one for concerning real property. Respect Jason Anglin, CEO Memorial Medical Center Texas Hospital Association 1108 Lavaca, Suite 700, Austin, TX, 78701-2180 www.tha.org TEXAS HOSPITAL ASSOCIATION Hospital Financing overview Under federal law, hospitals are required to provide care to anyone who seeks it in their emergency departments, regard- less of the individual's ability to pay. However, while an altruistic purpose is central to any individual or institution involved in health care delivery, hospitals must have stable, adequate and reliable sources of funding to be able to do their work. This document is intended to provide a high-level overview of the hospital financing system in Texas and the challenges that exist — challenges that threaten hospitals'continued ability to provide the highest quality care for all Texans. Overview of Hospital Costs Health care delivery requires a highly skilled, trained work- force. From nurses and therapists to technicians and adminis- trative staff, today's hospital workforce is diverse and multifac- eted. Laborcosts are by far hospitals' largest expense. In 2014, salaries and benefits forTexas hospitals' more than 350,000 employees totaled more than $27 billion and constituted 45.6 percent of expenses. ® % Supplies 29.2% 451es and Other benefits % Interest Depreciation Overview of Hospital Payments Payments for health care services provided in the inpatient and outpatient settings of Texas hospitals come from mul- tiple sources, including government payers and programs, private insurers and self -pay patients. ForTexas hospitals, the largest source of payments is private third -party, non -government payers who provide nearly half of all payments for services. 49.1 Rio Private third -party pavers Other`' 29.3% Medicare a vl Private self payers 6 % Medicaid a % Othergovern- ment payers M 02016Tezas Hospital Association. All Rights Reserved Overview of Hospital Payments (continued) Hospitals almost never receive full payment for the actual cost of providing a health care service. Reimbursement methodologies and payment amounts for services vary widely, depending on the payer. This means it is not uncom- mon for different payers to pay different amounts for an identical service. Medicare uses a Prospective Payment System for inpatient and outpatient services. The inpatient PPS uses diagnosis related groups to establish a pre -determined payment for specific conditions. Every diagnosis Is assigned a weighting factor.The standard payment amounts vary among hospi- tals, based on certain characteristics, such as teaching status and geographic Iocation.The inpatient and outpatient PPS applies to mostTexas hospitals. However, hospitals desig- nated as critical access hospitals are not included in either the inpatient or outpatient PPS systems and receive 101 percent of costs for Medicare -covered services. Medicare pays Texas hospitals, on average, less than 93 cents for every dollar spent on care for a Medicare bene- ficiary. This amount has been decreasing each year since 2009 while the number of hospitals experiencing negative Medicare margins has been increasing. In 2009,57 percent of hospitals had a negative Medicare margin; by 2014, the proportion had increased to 80 percent. Texas Medicaid, through its fee -for -service system, uses a prospective payment system to pay for inpatient hospital services.This PPS is based on the All Patient Refined Diagno- sis Related Groups (APR-DRG) patient classification system. Each patient is classified into a diagnosis related group on the basis of clinical information; hospitals then are paid a pre -determined rate for each DRG (admission), regardless of the actual services provided."Outlier"payments are made in addition to the base DRG payment for clients under age 21 whose treatments are exceptionally costly, or who have Medicaid Outpatient Reimbursement Compared with Costs *The state categorizes"high-volume'hospi- tals as those that were paid at least $200,000 for fee -for -service and primary care case management Medicaid services during calendar year 2004. Medicare Margins 1 090 l 0 1❑ 11 2 Ej 10� long lengths of stay.There are other add -on payments for trauma -certified and teaching hospitals and for safety -net hospitals. For most hospitals, Medicaid reimbursement covers just 58 percent of the costs of providing inpatient services. Outpatient hospital services provided to fee -for -service pa- tients are reimbursed at a portion of the hospital's reasonable cost and are based on whether a hospital meets the state's definition of"high-volume"provider. Children's, state-owned All other (including and rural hospitals I acute care) hospitals "High -Volume"* provider reimbursement "Non -High - Volume'* provider reimbursement Uncompensated Care Nearly every hospital has at least some uncompensated care - costs of care already provided that are not fully reim- bursed or compensated. Historically, uncompensated care was calculated as the sum of hospitals' bad debt and charity care.TheTexas Depart - Texas hospitals have such a large amount of uncom- pensated care for two main reasons ment of State Health Services reports uncompensated care amounts using this calculation. Based on this calculation, hospitals'uncompensated care costs in 2014 totaled $6.4 billion, an increase of 89 percent since 2003. First,Texas has the largest num- ber and proportion of residents without health insurance in the nation. More than five million Texans -19.1 percent of the state's population -- are uninsured. Second,Texas Medicaid falls far short of covering the actual costs of providing health care services to Medicaid enrollees. As discussed above, Medicaid reimbursement covers only 58 percent of actual costs. TaYac Hncnital Uncomnensated Care Costs Since 2003 (bad debt & charity care) (Source: TDSHS) y r.c BILLION 4 4 BILLION $3 8 BILLION BILLION $3.4 BILLION vnni 2004 2005 2006 2007 2008 Under the rules required by the transition to the 1115 Med- icaid Transformation Waiver and the uncompensated care pool in 2011, hospitals now calculate uncompensated care differently -- as the sum of their Medicaid shortfall and unin- sured costs -- through the use of single, uniform, cost -based methodology. Using this calculation, total uncompensated $4.6 BILLION $5.8 $5.5 BILLION $6.2 BILLION BILLION 2009 2010 2011 2012 2013 2014 care costs in 2015, before DSH or UC pool payments, totaled $7.1 billion.This amount is projected to increase to $9.6 billion by 2021. Hospitals are allowed to include certain physician, pharmacy and clinic costs associated with their facilities. In addition, limited ambulance and dental costs are included in the UC pool distribution. Projected Uncompensated Care Costs 2015-2021 (Pre -Supplemental Payment Offsets) (Source:THA Calculations Of THHSC Data From June 2015) $7.4 $6.9 BILLION BILLION M $9 BILLION 2015 2016 2017 2018 2019 2020 2021 Uncompensated Care Glossary Bad Debt: Debt that is unlikely to be paid or that is not collectible, although a patient has the ability to pay. Bad debt can include the full charge for a service orjust the copayment or deductible owed. CharityCare:The unreimbursed costto a hospital for pro- viding, funding or otherwise financially supporting health care services on an inpatient or outpatient basis to a person classified by the hospital as financially or medically Indigent. Supplemental Payments Given the large shortfall between Medicaid payments and the cost of services and the large number of uninsureciTex- ans, supplemental payments are an essential component of financing forTexas hospitals. Currently, there are three types of supplemental payments for which hospitals may be eligible: 1. Disproportionate share hospital payments (DSH); and 2. Waiver payments: a. Uncompensated care pool (UC) payments; and b. Delivery System Reform Incentive Program (DSRIP) payments. However, in order to receive UC, DSH and DSRIP payments, there must be sufficient non-federal funds to support the payments. As with other Medicaid services, the federal government and the state are required to contribute to these payments. In Texas, however, the state share is funded almost entirely by intergovernmental transfers from public hospitals. (see section below on financing the non-federal share of Medicaid payments) Each hospital has its own "hospital -specific limit," established by the Texas Health and Human Services Commission.The Medicaid ShortfalkThe difference between Medicaid reimbursement and the cost of providing care to a Medicaid -insured patient. Uninsured Costs: The unreimbursed costs to a hospital of providing care to those without a third -party source of payment. HSL is the sum of the hospital's Medicaid shortfall and the unreimbursed costs of caring for low-income, uninsured individuals.The HSL is a ceiling. Hospitals may receive DSH payments up to but not exceeding their individual HSL. DSH: Federal law requires state Medicaid programs to make special payments to hospitals that serve a disproportionately large number of Medicaid and low-income patients. Underthe so-called DSH program, roughly 18OTexas hospitals receive these supplemental payments, worth more than $1.8 billion. Each year, the federal government establishes a Medicaid DSH allotment for each state. This allotment represents the maximum amount of federal Medicaid DSH funds a state can receive. As with other Medicaid services, the state draws down federal DSH funds by making state expenditures. For FY 2015, the federal Medicaid DSH allotment forTexas is approximately $1.03 billion. The state share is approximately $723 million. Among all DSH hospitals, private hospitals— not public hospi- tals — provide the vast majority of Medicaid inpatient days (74.4 percent) and the majority of low-income, uninsured inpatient days (50.6 percent). DSH payments are made based on each hospital's sum of Medicaid and low-income uninsured days as a proportion of all qualifying DSH ho5pitals'sum of Medicaid and low- income uninsured days. Breakdown of DSH Hospitals and Care Provided, by Ownership Type Percent Of DSH Hospitals, by Hospital Ownership 59.4% 33.9% 6 7V STATE-OWNED 3 PUBLIC PRIVATE (SOURCE; THHSC) Percent of Medicaid Days, by Hospital Ownership 20.8% - STATE-OWNED PUBLIC PRIVATE Percent Of Low -Income, Uninsured Days, byy Hospital Ownersfiip — 24 N--25.2%-- — STATE-OWNED PUBLIC PRIVATE Supplemental Payments (continued) The federal health care reform law, the Patient Protection and Affordable Care Act, required a reduction in the federal DSH allotment for each state as the number of uninsured Ameri- cans was expected to decline dramatically in response to the insurance coverage provisions of the law. Beginning in federal fiscal year 2018, DSH reductions for all states will total $2 billion; the reduction will increase each year through 2025 to $8 billlon.The specific DSH reductions forTexas are unknown UC and DSRIP Payments, 2011-2017 at this time but are anticipated to be significant. UC: Uncompensated care payments are part of the state's Med- icaid 1115 Transformation Waiver. Since 2011, more than 330 qualifyingTexas hospitals have been eligible for payments from a funding pool of more than $17.5 billion overfive years.The current waiver expires on Sept. 30,2016. CMS recently granted Texas atemporary, 15-month extension, which will continue UC pool funding through December 2017. DSRIP $500M $2.313 $2.666B $2.8513 $3.1 B $3.8813 Total/Year $4.26 $6.213 $6.26 $6.2B $6.2B $7.7513 % UC 88% 63% 57% 540/6 50% 50% %DSRIP 12% 37% 43%46% 50% 50% Texas hospitals face a steep fiscal cliff once the temporary extension of the waiver expires in December 2017. Absent a new agreement between CMS and THHSC, UC payments will be dramatically reduced, creating a gigantic budget hole for the majority of Texas hospitals. By our calculation, UC payments will be reduced from the current $3.1 billion a year to $1.2 billion. Uncompensated Care Costs vs. Available Supplemental Payments* emental Pa ments (DSH and UC) Difference between cost and payments °"°°'c"'" `"°'"""" UC costs SUPp Y hroughthewaiverafter2017 DSRIP: As shown in the table above, DSRIP funds have been a growing percentage of total waiver dollars over the life of the waiver. Hospitals and other DSRIP providers (i.e. local mental health authorities) must earn these dollars by meet- ing metrics and performance outcomes. If projects are not successful according to these metrics, hospitals do not earn DSRIP dollars. This is particularly important because many DSRIP projects required hospitals and other providers to in- vest a significant amount of their own funds up front to get the projects designed and implemented. DSRIP performing providers report twice a year on project metrics and mile- stones, as agreed upon by THHSC and CMS. As with UC payments, DSRIP dollars also are vulnerable if a new waiver agreement is not reached. In the absence of an agreement, DSRIP payments will be completely phased out beginning in 2018 through 2021. Financing the Non Federal Share of Medicaid Payments Texas traditionally has relied on the largest public hospitals in the state to provide the state share of Medicaid DSH, UC and DSRIP funds necessary to draw down federal funds.Through "intergovernmental transfers (IGTs)"a local governmental entity — in Texas, primarily public hospitals —make a transfer of funds to theTexas Health and Human Services Commission. In 2013, for the first time, the state legislature appropriated state general revenue funds averaging $150 million for FY 2014 and 2015 to alleviate some of the burden on the public hospitals to finance DSH payments. Nonetheless, the burden on the public hospitals totaled $395 million in FY2014.These state funds have not been maintained. As a result, today, the full cost of the state share for DSH payments to non -state owned hospitals falls to the public hospitals. At the same time, the full state share of UC and most DSRIP payments for non - state hospitals is borne by public hospitals. ACA Funding Cuts The federal health care reform law, the Patient Protection and Affordable Care Act, aggressively reduced hospitals' funding. ForTexas hospitals, the revenue loss between 2010 and 2025 as a result of all the ACA's funding cuts is estimat- ed at more than 14 percent. Importantly, this does NOT include the anticipated cuts to Medicaid DSH payments as discussed above. When those cuts take effect, the impact on Texas hospitals will be even greater. The cuts to hospitals and other providers financed the pro- visions of the law intended to give more Americans access Public hospitals'continued ability to provide this essential IGT is at risk for a number of reasons: 1. Growing pressure to stabilize or even reduce local prop- erty taxes, 2. Persistently high number of uninsured; 3. State funding cuts, including 10 percent reduction in Medicaid inpatient and outpatient reimbursement rates; reduction of facility payments for use of the hospital ER for non -emergent reasons; elimination of payment for elective deliveries before 39 weeks; and reduction of reimbursement rates based on potentially preventable adverse events; and 4. Federal funding cuts, including prolonged Medicare sequestration. to affordable health insurance, including increasing access to the Medicaid program for childless adults. Lawmakers anticipated a major reduction in hospitals' uncompensated care as a result of many fewer uninsured patients. However, in Texas, the reduction in the number of uninsured patients and uncompensated care has been much less than in other states, in large part because the state has not accepted fed- eral funds to give low -wage working Texans access to health insurance. The result is thatTexas hospitals are sustaining funding cuts without the accompanying benefit of a reduction in uncompensated care. Estimated Value of Enacted ACA Funding Cuts & Cuts Under Consideration 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (5500) ($1500) TEXAS HOSPITAL ASSOCIATION Legislative Regulatory JCutstinder conslderation For more information, contact: John Hawkins,jhawkins@tha.org Jennifer Banda, J.D.jbanda@tha.org According to Texas Government Code 305.027, this material maybe considered°legislative advertisingfAuthorization for its publication Is made byJohn Hawlans,Texas Hospital Association, 1102 Lavaca, Austin Tx 78701-2180. yy1 o If you have questions or comments about the articles below, please contact Communications(a)tha.org. THHSC Delivers Draft Report on Hospital Uncompensated Care On July 26, Texas Health and Human Services Executive Commissioner Charles Smith met with several members of the Texas Hospital Association's Board of Trustees along with THA staff to discuss the agency's draft report on the cost of hospital uncompensated care in Texas. Executive Commissioner Smith informed the group that the report had been forwarded to the Centers for Medicare & Medicaid Services for federal agency review and comment, as was required in the terms and conditions of the Medicaid 1115 waiver 15-month extension. Prepared by THHSC's contractor, Health Management Associates, the independently prepared report was delivered to CMS without prior public review. While it's uncertain if THHSC will release a copy of the full draft report, it did release a two -page summary of the initial draft. CMS will use the final report, due Aug. 30, to establish the size of the uncompensated care pool used for payments to hospitals and other care providers. Rather than formally establishing a "bottom line" figure for CMS to utilize to determine hospital Medicaid and uninsured costs, the report focuses on the advantages, limitations and differences of using alternative databases to measure Medicaid and uninsured costs incurred by Texas hospitals, including: • Texas Medicaid Uncompensated Care Tool Reporting Costs (UCTOOL); • Medicare Cost Report Worksheet S-10 - Hospital Uncompensated and Indigent Care Data; and • Hospital Annual Survey data provided by the Texas Department of State Health Services. THHSC indicates that the report uses different approaches to measure the impact of a number of integral elements (bad debt cost, charity cost, disproportionate share payments, etc.) used in the UC calculation. As a result, the report essentially develops a framework approach establishing a set of decision points that an informed CMS can use to set future year UC pool amounts. Full and accurate preparation of the report is critical in light of CMS comments and actions in other states that indicate that it will not include the following costs as part of the UC Pool: Shortfalls in Medicaid payments that could be addressed through increased Medicaid hospital payment rates; and Uninsured costs that would otherwise be covered through an expansion of the Medicaid program. Key items reportedly included in the unseen draft report: • Detailed explanations of the differences and limitations in Medicaid shortfall and hospital uninsured costs calculated using sets of hospital data; • An examination of Medicaid disproportionate share payments and their use for mitigating the costs of both Medicaid and the uninsured; • A discussion questioning the appropriateness of including Delivery System Reform Incentive Payments in the UC calculation; • Hospital -based physician, pharmacy and clinic costs but not ambulance and dental costs; • Primarily uses historical fiscal year 2013 data as a baseline for establishing future year costs; • The importance of UC Pool payments made to Texas safety -net hospitals; and • The comprehensive nature of hospital Medicaid and uninsured costs reported in Texas. Reporting of these costs are facilitated by use of the state's UCTOOL and generally are not found in other states previously reviewed by CMS. Other items not in the draft report but expected in the final report are: • An estimate of the impact on uninsured costs related to expansion of the Texas Medicaid program; • A discussion of the impact of Medicaid spending on the state's constitutionally mandated spending limit; and • Expected population growth for both undocumented Texas residents and the state's total population. Hospitals are cautioned against relying on the UC costs reported at the bottom of page one of the two - page executive summary. CMS is expected to provide detailed technical comments to THHSC on the report within the next week. Through its contacts at THHSC, THA will continue to monitor preparation of the report and provide meaningful information to hospitals as it becomes available. (John Hawkins/Jennifer Banda, J.D./John Berta) Overview of Independent Evaluation of Uncompensated Care Costs in Texas and Medicaid Hospital Payments This draft prepared by Health Management Associates (HMA) is required by Centers for Medicare and Medicaid Services (CMS) as part of the extension of the 1115 Healthcare Transformation and Quality Improvement Program Waiver. The draft was submitted to CMS on July 15, 2016, with the final report due on August 30, 2016. The study must include: o the Impact of DSRIP funding on uninsured and Medicaid shortfall. o an estimate of Texas hospitals' uncompensated care burden if the state fully funded Medicaid costs and if the state opted to expand Medicaid to low-income adults as allowed under the Affordable Care Act (ACA). CMS has indicated that negotiations regarding the future size of the uncompensated care pool (UC Pool) will be informed by the independent evaluation. To that end, 98 percent of all Medicaid and low-income uninsured hospital costs in Texas are represented in the study. Funding Breakdown Data shows $8.9 billion in uncompensated care prior to any supplemental payments (e,g., graduate . medical education - GME, disproportionate share hospital - DSH, uncompensated care- UC and delivery system reform incentive payments - DSRIP) including: o Medicaid shortfall of $3.6 billion (prior to consideration of Medicare payments for individuals who receive both Medicare and Medicaid and out-of-state Medicaid, Medicaid base rates covered 63.6 percent of Medicaid costs); and o Uncompensated costs of providing care to our low-income uninsured population of $5.3 billion. $8.9 billion total UC shortfall -$1.7 billion Medicaid -related portions of GME, DSH, and UC funding -$3.0 billion uninsured -related portions of DSH and UC funding $4.2 billion UC shortfall ($2:3 billion low-income uninsured, $1.9 billion Medicaid) -$1.3 billion DSRIP* $2.9 billion Total UC shortfall Health and Human Services Commission Page 1 July 19, 2016 *The Waiver standard terms and conditions (STC) indicate that the report must include the impact of DSRIP funding on uninsured and Medicaid shortfall. HMA argues the inclusion of DSRIP is inappropriate and distorts the resulting Medicaid shortfall because: o STC 45(e) states explicitly that "DSRIP payments are not direct reimbursement for expenditures or payment for services", and as an incentive program, payments are not applicable to a hospital's hospital specific limit (HSL) for DSH or UC Pool purposes. o The investments and operating costs associated with implementing and maintaining DSRIP initiatives are not reported to the state and some expenditures may not be eligible to be claimed for Medicaid. Consideration should be given to what payments look like net of Intergovernmental transfers (IGT). Many hospitals rely heavily on UC pool payments to fund their operations. In fY 2015, the UC Pool accounted for 4.6 percent of all revenue for Texas hospitals and 54,9 percent of aggregate net income. Hospitals with a high prevalence of low-income patients depend upon UC to cover losses. For example for the top five percent of hospitals based on Medicaid and uninsured charges as a percentage of the hospital's total charges, UC Pool payments are equal to 201.2 percent of net income. More directly, without UC Pool payments these hospitals would have had income below their costs. The evaluation poses the possibility of Texas carving its hospitals out of managed care and reverting back to a program like an upper payment limit (UPL). The report indicates that it is reasonable to assume that HHSC could create a FY 2017 hospital UPL program of approximately $3.2 billion. An analysis of the impact of a Medicaid expansion on Texas hospitals' uncompensated costs of caring for the low-income uninsured will be included in the final report but was not complete by the time the draft report was due to CMS. The final report will also include a discussion of the impact of Texas' constitutional spending limit on Medicaid expenditures. Health and Human Services Commission Page 2 July 19, 2016 Editorial: Here's why Texas must expand Medicaid 11, By Dallas Morning News Editorial newsfeedback+editorial@dallasnews.com Staff Writer Published: 29 July 2016 01:09 PM Updated: 29 July 2016 01:09 PM Texas has never come to grips with the realities of providing health care to its poorest residents. It needs to now. At the end of August, the federal Centers for Medicare and Medicaid Services plan to pull the plug on a stop -gap solution that Parkland Memorial Hospital and other county hospital districts in Texas have used to obtain federal funding matches to serve Texas' poor. Dallas Morning News Austin reporter Robert T. Garrett disclosed this threat in a recent front page story. If those dollars go away, Parkland could lose $10 million annually, and if the feds apply the same approach to other related Medicaid programs, the financial impact could approach $24 million, Dr. Frederick Cerise, Parkland's president and chief executive officer, told us. Unless something is worked out, Parkland would have to reduce services and that could have ripple effects across North Texas. A similar scenario could play out in other Texas counties as well. While the loss of these funds may not seem like much in Parkland's $1.5 billion budget, the hospital is facing a $100 million budget deficit, so the threat to quality care is real. The dilemma underscores the reason the state needs to do more to live up to its responsibility to properly fund Medicaid. To meet their responsibility to serve the poor and to help offset costs, Parkland and other county hospitals acquired the operating licenses of nursing home chains. A provision in the federal law made the hospitals and nursing homes eligible for supplemental Medicaid payments. Now the feds want to end this arrangement and have changed the policy to discourage providers from using supplemental payments to make up the financial shortfalls created from inadequate Medicaid funding at the state and local level. It's a sad state of affairs that Parkland and other providers have had to resort to workarounds to perform their mission. When given the opportunity to access federal dollars by expanding coverage under the Affordable Care Act, Texas refused. That setback came after years of state officials authorizing ridiculously low fees to Medicaid service providers. Over time, state lawmakers virtually guaranteed that hospitals like Parkland would lose money every time they treated a poor person. And, by not expanding Medicaid under the Affordable Care Act, which would have provided federal matching funds, the state forced hospitals like Parkland to find creative ways to provide Medicaid services. Short term, the Centers for Medicare and Medicaid Services would be wise to temporarily suspend action on Parkland's arrangement to allow all parties more time to unwind these complex arrangements. We don't want to see a bad situation made worse. But for the long run, the Legislature simply must step up to its funding responsibilities. Many in the Texas business community, including the Dallas Citizens Council, the Texas Association of Business and various chambers of commerce, favor a robust Medicaid expansion program. They recognize the spiraling dangers of an underfunded health care system. We urge lawmakers to listen to these organizations. Texas is forfeiting billions of federal dollars that could help Parkland and other hospitals cover their Medicaid costs. Now we're seeing the unfortunate consequences of the state's inaction. Texas Medicaid Problems $601 million -- the number of dollars at risk statewide to hospitals and nursing homes if a matching funds arrangement is disallowed. 4.1 million -- number of poor, disabled and elderly Texans on Medicaid. 279 -- the number of nursing facilities that could be directly impacted by a cutback of supplemental Medicaid payments, including 12 with ties to Parkland. $142 -- the average base Medicaid payment per nursing home patient per day, which is $13 short of covering costs. 65 -- the percentage of Parkland patients who would become eligible for coverage under Medicaid expansion. Source: Parkland Health and Hospital System, Texas Health and Human Services Memorial Medical Center Financial -Report For the Month of: July 2016 Overview: The hospital recorded a $51,763 profit from all entities in July compared to a $226,191 budgeted and a loss of $329,099 in July 2015. Our year to date profit is $2,079,845. This marks the second month that the entire Net Profit is due to the Nursing Home MPA Program. Without this program, the hospital and clinics would have a profit so far this year of $229,273 and $432,356, respectively. Patient Revenue declined again slightly ($63,875) from June, though it was not quite down to April's low point. Admissions, at 92 for July, were up one from June, but our length of stay was shorter. This resulted in a 10% decrease in patient days, which drove inpatient revenue down by almost $129,000. Total operating expenses increased to $2,341,432 in July and are at $15,356,494 Year to Date. We are still under budget by over $300,000, but will be making changes to respond to our Net Income issues. Statistics: There are two new pages in your financial statements this month — one that compares Inpatient data for the last three years and a second that highlights the last 12 months of trends. The Statistical Trend report is also included. The decrease in Patient Days translates to a lower Average Daily Census, which was 11.19 in July, compared to 12.7 in June and an average of 12.7 for all of 2016. Clinic visits also decreased in July, with the RHC having 1,634 and the Surgery Clinic returning a more consistent 88 (compared to 99 in June). Imaging, the Lab, Rehab Services, and Respiratory Therapy all saw a decreased number of procedures in July compared to June as well. Surgery was the bright spot for the hospital last month, posting 108 total cases. This is the highest volume they have seen since April and third highest in the most recent 12 months. Balance Sheet Highlights: ASSETS Bank Accounts Cash in the bank decreased to $2,655,657 at the end of July. This is made up of $1,124,020 in operating cash, $245,550 in our private waiver account, $785,987 in the nursing home accounts and $100 in the Clinic Construction account, in addition to the $500,000 CD. Accounts Receivable Patient A/R dropped by $163,258 more in July due primarily to the slightly lower revenue. This allowed us to continue lowering as well and resulted in the lowest Net Patient A/R since February. Accounts Receivable — Other The total in this account is $8,079,762 consisting mainly of expected payments from the DSRIP component of the Waiver 1115 program, the Uncompensated Care program and supplemental payments due under the NH MPAP program. We processed an IGT for DSRIP in July and received the payment shortly after the month end, so it is not included in the Cash Totals above. Accounts Receivable Nursing Home There is a balance of $4,620,519 in accounts receivable on the five nursing home books. Accounts Receivable Est. 31d Party Paver Settlements We do not show any receivable from Medicare at this time. Inventory The Pharmacy department conducted a mid -year inventory at the end of July, resulting in a reduction of $73,122 in the amount we carry on the balance sheet. This count helps us true up our cost of goods calculation and reduces the potential for a large adjustment at year end. LIABILITIES Accounts Payable Accounts payable continues to hold steady at just under $500,000. Due to Cantex The balance of $6,521,726 consists of $785,987 in the nursing home cash accounts (less $1,000 MMC contributed to set the accounts up and $1 rounding), $1,114,219 in accrued MPA Payments, and $4,620,519 in accounts receivable also reflected in MMC's accounts receivable. Accrued Expenses We carried accrued payroll and benefits payable to hospital employees totaling $1,134,168... Accrued Intergovernmental Transfers Our books reflect IGT accruals of $1,122,549 for upcoming Community Benefits transfers. This is down $912,493 from June due to the hospital making our July DSRIP transfer. Accrued Payable— Est. 3`d Party Paver We currently show a payable to the Medicare program of $245,149, down $25,622 from last month. Notes Payable The hospital has a note payable to Calhoun County for $3,381,758, which reflects the two loans for MPAP IGT, a draw on the Physician Recruiting of $975,000, and the $500,000 borrowed to pay off leases. We expect to begin payments on this in October 2016 based on current cash flow projections from the nursing home programs. Leases Payable The hospital has $708,779 in long term debt of which $96,181 is due over the next 12 months. Current Ratio The ratio between our current assets and current liabilities is 1.51 compared to a 2.3 benchmark. Other Projects We are preparing data for a review of supply purchases to verify that we are actually being invoiced at the amount contracted through our Group Purchasing Organization. That agreement will probably be presented to the Board in September. N N ei ei rl' ei O r s E w w p a E 0 z a V O N m Q N n a m V N O N C � E � G m Y � E � m n ..n n�nmr vt N vl tO O1 M t0 i T N v,p 'L s mU O f�l { -1- o m m m m m U 1 k 16 m^ N M W fi N n -9 VI m lO d' N c � V n In E w O m U 0 0 0 0 o m m 0 0 0 0 0 o n n fl. 0 pq M oo O o m a W n Ir c c M 'a o o 'ULO m' W m m n W O N v1 N .ti m m W N Q 0 M O O m m a N a ca a ov 1 a"i c m o m io W of ri no m a w m y m m m N m � N X W G d' m lU m N c-1 ✓1 n m �� N O > U in O O v - J L U CfY W UI V N n n c m V v m v .a m m y O m t(1 m N M m r 3 c m nk6 6 n o O1 m N m m CD o m LL> ry m m v�i m vni rf N E LL Z O N w r t0 h N d' M N C-6 9 n n n M o. troll tNp C N NN M W W m ci W — M WN N N p M" Ifl N (�1 M" -O o 4 m �o m Ni n ti o o m m `a 0 m Y N m N m m v N V .ti h t0 N vl Oi V1 N I O W O m W � N N O T W M' m i� yCj tOD vnl m E W rt1 r 'a' tr Ill Vi eWi N N W � W M l0 lO c-1 m d' N N N v01 Omi m � ti m a V e N m o v? n v c.--tN�io vi riM m vmia vMim U N U 'E U C u U � U ' m O> u ice+ m N Y � Q O 0 '-�, vvi Z Ic-Fv 2- v� w m W o W m m m Ha N ai v) N m m n n N m m a mM m n N o m m W M n O N .m-i o m o N N ci N -2- Memorial Medical Center Inpatient Volume Indicators Admissions by Unit 51 58 55 ! 800 82 fi9 600 - 651 529 576 40D 200 2014 2015 2016 ®Medical/surgical/ICU ®Obstetrics saSwingbed Admits j Patlent Days by Unit 442 345 3,500 208 3,000 _.. '— 199 2,500 2,000 1,500 - 2,395 2,096 2,205 1,000 Sao _ I 2014 2015 2016 ! I s Medical/Surgical/ICU ■Obstetrics WSwing Bed Average Daily Census 1.62 15.00 0,98 0.94 0.77 10.00 11.30 9.89 30.35 5.00 0.00 2014 2015 2016 a Medical/Sunloal/ICU N Obstetric ® Swing Bed -3- Memorial Medical Center Operating Statistics 12-month Trends Outpatient Statistical Trends 00 - 2,5...--- ---'-----_----'-. _._-___—. _----------_...._ vnis 2,126 2,082 2,102 2,016 2,000 1,Soo 1,000 - 757-___- 779.--__. - - 93871718_.____.748.--_ 779-'--666 68fiT- 691 � 500 - 451 454 513 465 476 456 502 485 573 532 525 516_ 0 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Outpatient Visits Emergency Room Visits Specialty Clinic Visits Total Surgery & Endoscopy 200 100------' - - - - .._ 0 _95— 120 108 _97, 110 az 95 105 111 _gg gam.— 108 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Radiology Procedures 2,000 1,000 0 1,380 1,400 1,155 1,338 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 `J Total Laboratory Procedures 40,000------- 20,000 -- 25,116 0 22,749 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Physical Therapy Procedures 2,000 --- ----- 1739---�.803 1r7-26-1�891 _ 1,8.Q5- 1,000 1-593-- rSOS "�;558--1'592--I;53S- 1,090 1,280 0 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 —4— O.-� d n ry d N n N and ry o.+ dm d m 7 ti mM viM7oF �dN oo m o0 p n n n mn mn m NN orvvmi�N mmr.`{+m mn n �n� N N U N IL V M l0 O n V1 �-1 1O m `i N ei V M Ol m W O d O N O1 O OO rl -- IN W h n'1 Ol N. d Nm I I N O 0 m m N rV O N M ei t0 ei N N l0 m yVI� Va n 01 Vl �O N m N N O VI (J m m d N n �p I . m O W 1� O] Vl h Vl n r1 .Nf l0 n N G m ei .ti N ni N N d 7 Nom mmnon �°'momvmi O1 mraorv°,-1 tm-N-1 pro �.`rN.ima�w°,ya �doo N m m v e o m m m � m a n m m a m o O o ti m m w m m N O V N N rl ei N n a mm.`{i Nmmi a mm n om m0 o.di n m m m � n � N� �ory oM `^ "� mm�ooroo.r+ r `N md�w n.i N vmMi m N m .1p- N OI N m O [f d$ N N m m N M d M V w O lO n O l0 Ol NN m N M n N O N lD W N O m d vl % emi O rl 'i �-I 1/N1 lm/1 � Irt N LL m m d d W m N m M n n n �-1 1O n W l!1 fnJ Nm O N N m O O d m O M B n lU m Vl V � m nM, � V N N fi M O N m n1 N C p C p d N N M F r ry Ory m l0 O O rl O ei W ei O OI O m N 01 m I. N O Ol N N O Ol M n O N Vrl O W m Ol N d f'1 p h lm0 V N V n lmYl D d O1 O fV N M � N rl ei ei N d � T U � N p , w O d N N m n 0 0 m1O N n 1O tO Vl n OI O O N O m N O O, N N N n O m N m UI o�n N EN�h�oamd m`o vNiea°1n o •�•�� .�1p •+ �n ry voin m 1� O rl O1 M N N rl `y N O 2 10 d ei n VI n ti m V M 'i ------------ pp�� m N N O t0 rtl rl O y� N Oml ON O d m Ol O O N UV�1 V O H r n d O 0 n N% r N N d OI lV VI M W O N ei V N yj •i ei ei N N N N p d O M m r m rW Or m M O N O O O m M V W N N Oml d~ mm W W m m ti V T d N Irk O m n id(1 d NO rl O n edi N N M Ol N N N Q V d N O• ~ N a d m M N O N m O Vl M N O o O N n O n m m N VI N O M y^ N N 64------------ a m- W N 2 J In O O W O O T m c V y Va c •_�� o op c E n�"w C 2 E `�'.�m¢¢ ry m ¢ m W O z' r w F Q O ApF -5- ----------------------------------- d ei N ei D rl O N O N O N o 0 0 0 0 o a �g e o a o V o N 0 1� 0 tD o .--I a 'i e i� o Vl 0 O 0 N 0 d' o .i a Z o m o m n o m 0 m 0 a 0 N 0 V 01 o 0 w M W Ol Ot N tO t0 N lD Ol a0 n O M IYI rl N M M N N N N m d' O lD dl n d' ri UJ m O N N DJ Q N ei M CO N LL U' 'i O U LL^. nmmti w min O m Fm 01 n-n— — *C mNNam O W ti w W N r M W ei `� V 0 0 0 0 0 6 6 A tN N O Cj m N lD O CI O1 V � O N Z m O N M Q' Q r w r O ^y �o m N o .+ N a N a N n N v m ro m n N n m m N N m O� N M N m N N N r m O N = W N O O N eNi M r O O � 4 N� M N( i l0 n (Oi] tNO t�0 vMl W c-I N N E N o r ✓ .�,. �' ' -.�; d' �°n' r tip" "5`�fi fn � �� n,�4 rim � -C' *,+ 2v =�" s -� �•""" SA �':;� £'" 15•`w"Ct' ; � �.. � ifi �+etis4i1 t"1 #ti�+a b1�1 i�Y 'Y^.�b .'�`A�'�f�1,'' �.G- � .,;��,,��'c :�",.,:. '�r�, '�"� -`,asr s^�h � -�'-�"r �,✓r� ^�- ^�'��-«� "ate .',w-r; r C rn d N u a � d o U w 0 .o a a¢ ou v Y W 7 w > > c J w ~ c Oo o o—2 °- u E ¢ l7 W .Yn w w o 0 =" v Q C9 = .`�-a°pi a fn L f➢ �' fYI c c_ v v ..T, w o o J N N9 Z N y Q] J U _J U J Q �p 0 H W m uGo fL K U V N `0 N Ol UI UI ym a Q W v o .v- �° 0 > °1a 0'3 mwa'3 a>oNF a a>oNt- a:5oa>o�N��r- ----- ---------------- -- H a C� 0 IR 1) T C2 w m w a 0 z < zi - — — — — — — p — — i3 � — R — m — R — m — � -------------------------- a :�P ;�F rl� a� cl� CZ, -0 (Yi zt m m m 06 a� — — — — — — — — — — — — — — — — — — — — m H m w m m w Cli w iz E MIEN ig N M ON MI r 0 0 o o > > a 0 > 0 o 0 m w w 0 0 E E 0 o o _0 (D 0 0 00 0 0 12 N N M1 m INO N M N Vi f9 f9 M e r N e N N If) h �6 W V J v y l9 N M m d rc J C O w w m w r w _ z C LL F9 l9 N (9 y Ew O O N o e e m n N o N r e N fil o� a l7 1j O "'�Nljovm"a3o `m No Gig NN"im�°'nvmim 2 0 LL Q M W W f9 S O Y O� INn Y r a 0 1: T S. I9 (9 f9 M O # n m V N m> N J � f m m W yi p p eq LL 9 p Inm n ne �r `gym � m m J e9 ei M t9 � W N Q LL w e w c 0 m Z Y N� •Ip T d� y a y Q Q .'._ v v o. V � 0 0❑ y c a c LL Q a c= a 2 5 c> Z N W Q i E ory n 12 v Q �N6F a m Z J > WOQm 4^ZO v m p - - - - - - - -m IR Payer Mix Memorial Medical Center .__. i..i.. o� onla Medicare 39.3 -_1- 38.8 42.1 43.9 48.4 45.9 42.9 Medicaid 12.1 13.5 12.0 10.7 12.3 9.6 10.3 Blue Cross 18.4 14.4 15.5 16.4 16.5 16.6 17.1 14.4 Commercial 14.8 15.0 12.2 14.9 12.4 14.2 Private 12.5 16.4 15.4 10.7 9.4 9.9 12.3 Other 2.9 1.9 2.8 3.4 3.0 3.8 3.0 Medicare Medicaid Blue CrossCommercia Private Other August 39.3 12.1 18.4 14.8 12.5 2.9 September 38.8 13.5 14.4 15.0 16.4 1.9 October 42.1 12.0 15.5 12.2 15.4 2.8 November 43.9 10.7 16.4 14.9 10.7 3.4 December 46.4 12.3 16.5 12.4 9.4 3.0 January 45.9 9.6 16.6 14.2 9.9 3.8 February 42.9 10.3 17.1 14.4 12.3 3.0 March 44.8 10.3 16.1 14.7 11.3 2.8 April 42.7 11.2 18.4 15.0 9.3 3.4 May 44.3 11.5 16.7 12.9 11.0 3.6 June 40.2 13.7 16.0 13.9 13.5 2.7 July 40.8 11.8 14.4 18.2 12.4 2.4 44.tl 10.3 vcr 11.2 11.5 -^ 13.7 '-- 11.8 16.1 18.4 16.7 16.0 14.4 14.7 15.0 12.9 13.9 18.2 11.3 9.3 11.0 13.5 12.4 2.8 3.4 3.6 2.7 2.4 9 (EI . ®°uwa.E`" #lrk4E § ( \2 r ! ! / #�\ §00 §\)r §\ �" ) !;§ [ _§ $\ \\ \ - !;00 § ]) §Z(/;!n w0 §r;•+K.•[)24! K . `\/ } , -- \ !!!§ll... ",!•�! ` !!` ; • .rKk.!! R - - § ;:®5;;...Kri;•!r i t }&[ ! m«!>r,....kl.ly [ §\( \ }\ \ K¥r ; r#lR;..•. { ) | !#R$...•.\\!! \ m;Z f § \ § § z z)§ \ ta , § r E0z !§r!!$§ - : § §§)(}\\B:§!§))(§§ § (()( \j \\\)§\(\{(§](§§)` -l�» Current Period Nursing Hos trot Clinics Homes Combined 1,183,921 - - 1,183,921 2,605.644 350,542 - 2,964.186 1,974,192 - - 1,974,192 - - 3,646,916 3,646,916 5,763,757 358,542 3,646,916 9,769,215 4,082,637 - - 4,082,637 110,754 - - 110,754 89,496 - 89,496 (25.901) 25,901 - - - (182,692) (182,692) 120) - 101,417 (118,703) M0 ,4,174 127,318 3,981,492 1,909,583 231,224 3,646,916 5,787,723 21,523 27,465 - 48,988 1,931,106 256,689 3,646,916 5,836,711 Current Period Nursing Hos ital Clinics Homes Combined 779,26fi 104,887 - 884,153 260,395 35,164 - 295,559 201,237 155,135 - 356,372 298,299 42,422 - 340,721 291,770 40,483 - 332,253 5,712 - - 5,712 59,659 - - 59,659 63,695 3,308 - 67,003 - 31646,916 3.646,916 1,960,032 381,400 3,646,916 5,988,348 90,674 - - 90,674 2,050,706 381,400 3,646,916 6,079,022 (119,600) (122,711) - (242,311) 16 - i6 (2,902) - - (2,902) (159,952) (108,595) - (268,547) 228,504 155,135 - 383,639 181,869 181,869 65,665 46,541 181.869 294,075 (53 934) (76,171) 181 869 51,764 Memorial Medical Center Income Statement by Operating Unit For the Month Ended July 31, 2016 Revenue Year to Date Nursing Hos trot Clinics Homes Combined Inpatlent Revenues 9.340,004 - 3,394,727 - - 9,340,004 21,709,765 Outpatient Revenues 18,316,038 12,490,694 ER Revenues 12,490.694 - - - 24,024,939 24.024,989 Resident Revenues Total Patient Revenue 40,145,736 3,394,727 24,024,989 67,565,452 Revenue Deductions 23,611,879 6251180 237,059 24,237,059 Gomractuals 863,318 _ 863,318 Charity Indigent Care 231,586 - ' overhead (139.990) 139,990 1,887,103 (1 867,103) DSH (1,887,103) Bad Debt TotalRevenueDeductl931 ons 4,522,931 27,202,621 - 765,110 - 27,967,791 Net Patient Revenue 12,943.115 2,629,557 24,024,9B9 39.597,661 Other Operating Revenue 228,760 80,097 - 308,857 Total Operating Revenue 13.171.875 2,709,654 24,024.989 39,906,578 Operating Expenses Year to Date Nursing H pit I Clinics Homes Combined Salaries & Wages 5,318,692 714,711 - - 6,033,403 1,917,792 Employee Benefits & PR Tares 1,686.876 1.308,673 230,916 1,159,576 2,468,249 Professional Fees 1,912,129 263,659 - 2,468,249 788 Purchased Services supplies 1,771,341 105,287 - 1,876,628 Insurance 41,347 - - 41,347 335,124 Utilities , 474,875 875 474 - 33,288 - 508,163 Other Expenses - 24,024,989 24,024,989 NingHome Fee urs Total Operating Expenses - 12,849,056 2,507.438 24,024.989 39,381,483 Depreciation 527,729 117,733 - 645,462 Total Expenses 13,376,785 2,625,171 24,024,9B9 40,026,945 Net Operating Income /(Loss) (204,910) 84,483 - (120,427) Non Operatinglncame/(Exp) - 1,075 invterest _ (22,496) Expense Interest Expense ( 22.498) 500 Contributions and Grants 500- (1,061,913913) (811,703) - - (1,873,616) IGT Expense Service Contribution by SOSET 1,517A19 1,159,576 - - 1,418,216 2,676,595 1,418,216 Nursing Home MPAP - 434,183 347,873 1,418,216 2,200,272 Total Non -Operating Revenue Total Net Income /(Loss) 229,273 432.356 1,418.216 2,079,845 Current Period Actual This Budget This Month Month Last Year $1.183,921 $1,382,702 $964,901 $2,964,186 $2,816,424 $2,719,655 $1,974,192 $1,732,131 $1,7'10,175 $3646916 $0 $3,781,635 Memorial Medical Center Income Statement - Combined For the Month Ended July 31, 2016 Revenue Inpatient Revenues Outpatient Revenues ER Revenues Resident Revenues Fiscal Year To Date Actual YTD Budget YTD Last Year YTD $9,340,004 $9,678,916 $9,181,268 $21,709,765 $19,714,965 $17,917,638 $12,490,694 $12,124,916 $12.383,300 $24,024,989 $0 $18,454,797 $9,769,215 $5,931,257 $9,176,366 Total Patient Revenue $67,565,452 $41,518,797 $57,937,003 Revenue Deductions $4,082,637 $2,851,261 $3,436,380 Contractuais $110,754 $92,545 $92,251 Charity $89,496 $50,631 $24,472 Indigent Care ($182,692) ($112,561) ($281,101) DSHNWaiver ,-- -...., nnn, nun T979 Od1 Bad Debt $24,237,059 $19.958,829 $22,563,400 $863,318 $647,813 $653,536 $231,586 $354,419 $220,080 ($1,887,103) ($787,930) ($1,125,859) $5,787,723 $2,148,293 $5,331,423 Net Patient Revenue $39,597,661 $15,038,049 $31,293,394 $48,988 $64,313 $41,862 Other Operating Revenue $308,857 $450,193 $424,366 _ ern nna Fin Gta aan 943 $31.717.760 Current Period Operating Expenses Actual This Budget This Month Month Last Year $884,153 $896,933 $795,570 Salaries & Wages $295,559 $259,207 $269,212 EmployeeBenefitsR Taxes $356,372 $516,313 $234,969 Fees $340,721 $149,610 $295,831 Purchased $332,253 $273,199 $198,952 Supplies $5,712 $4,273 $7,829 Insurance $59,659 $52,401 $53,110 Utilities $67,003 $85,863 $67,143 Other Expenses co aea ova $0 $3.781.635 Nursing Home Fee $90,674 $62,800 $69,466 Depreciation Fiscal Year To Date Actual YTD Budget YTD Last Year YTD $6,033,403 $6,278,533 $5,336,090 $1,917,792 $1,814,449 $1,750,410 $2,468,249 $3,614,193 $1,461,293 $2,175,788 $1,047,272 $2,033,637 $1,876,628 $1,912,391 $1,806161 $41,347 $29,908 $54,803 $335,124 $366,808 $298,111 $508,163 $601,040 $508,068 $645,462 $439,599 $572,499 $6,079,022 $2,300,599 $5,773,717 Total Expenses $40,026,945 $16,104,194 $32,275,869 ($242,311) ($87,993) ($400,432) Net Operating Income/(Loss) ($120,427) ($615,951) ($558,109) Non Operating Income / (Exp) $16 $103 $538 Investment income $1,076 ($22,498) $719 ($17,115) $642 ($26,287) ($2,902) ($2,445) ($3,447) $0 Interest Expense Contributions and Grants $500 $19,898 $350 $0 ($268,547) $2 843 ($311,997) ($189,812) IGT Expense ($1,873,616) $2,676,595 ($2,183,981) $3,088,098 ($1,218,455) $1,733,546 $383,639 $441,157 $264,054 Service Contribution by SOH Nursing Home UPL $1,418,216 $1,291,668 1235,028 $181,869 _ $184,524 $0 t�fai Nnn-Oneratine Revenue $2,200,272 $2,199,287 $724,824 $51,763 $226,191 ($329,099) Total Net income/(Loss) $2,079,845 $1,683,336 $166,715 -13- MEMORIAL MEDICAL CENTER CAPITAL ACQUISITIONS FOR PERIOD ENDED 7/31116 MONTH DESCRIPTION BUILDING EQUIPMENT TOTAL 01/16 IF ELECTRONIC LAB INTERFACE - ELR - - 4,475 6,317 4,475 6,317 JANUARY 2016 - COMPUTER PURCHASES - 7,524 7,524 WEBPT SOFTWARE 6299 HOLTER RECORDS (4) ,, 18,401 01 01 18,401 CLINIC - CIP - VARIOUS EQUIPMENT 43,015 43,015 SUB TOTAL JANUARY 02/16 JANUARY 2016 - COMPUTER PURCHASES 1,271 1,271 CLINIC - CIP - VARIOUS EQUIPMENT 11,042 133,730 144,771 SUB TOTAL FEBRUARY 113042 135,001 146,042 03/16 SAMSUNG LEASE - XRAY ROOM 2 - 206,040 4,554 206,040 4,554 EVIDENT - LAB INTERFACE - 1,500 1,500 EXEBRIDGEINTRANETPROJECT -CIP CLINIC - CIP - K&T PAY APP 277,983 - 277,983 CLINIC - CIP- ACl/BOLAND 18,535 - 18,535 CLINIC - CIP - VARIOUS EQUIPMENT - 24,079 24,079 SUB TOTAL MARCH 296,518 236,173 532,691 04/16 CLINIC - CIP - ACl/BOLAND 2,770 - - 5,363 2,770 5,363 CLINIC - CIP - VARIOUS EQUIPMENT DEPOSIT ON VOICE RECOGNITION INTERFACE - 3,000 3,000 APRIL 2016 - COMPUTER PURCHASES - 4,044 4,044 EMDS SOFTWARE LICENSE - DR. ANDRUS - 8,790 8,790 SUB TOTAL APRIL 2,770 21,197 23,967 05/16 CLINIC - CIP - K&T PAY APP El4,794 - 154,794 CARDIO REHAB EQUIPMENT 10,529 29 10,500 PACS INTERFACE - DOWNPAYMENT 500 500 SUB TOTAL MAY 154,794 11,029 165,823 06/16 JUNE 2016 - COMPUTER PURCHASES - 4,043 4,043 SUB TOTAL JUNE 4,043 4,043 07/16 SURGICAL EYE MICROSCOPE 31,500 9,750 31,500 9,750 CR-E CLASS CONTROL STATION FOR RADIOLOGY - 41,250 41,250 SUB TOTAL JULY It465,123 $ 491,708 $ 956,831 TOTAL -14- Physician Revenue Trend Memorial Medical Center As of July 2016 July 2016 2016 YTD PRIOR YEAR TD Memorial Medical Center Clinic 011005 William Crowley 019000 Ric Arroyo -Diaz 009293 Serina Danielson 000966 Thao Truong 041743 Angela Dobbins 005966 Carol Andrus 058001 CourtThurlkill 002099 Traci Shefcik 009292 Charles Fillingane $ $ $ $ $ $ $ $ $ 176,342 362,418 151,327 162,153 68,848 58,639 49,346 34,579 - $ $ $ $ $ $ $ $ $ 2,882,357 2,506,326 1,293,433 584,711 501,171 58,639 157,346 244,231 $ $ $ $ $ $ $ $ $ 4,030,540 - 1,839,806 257,464 427,532 - - 242,736 $ 1,063,653 $ 8,228,213 $ 6,798,077 19% 20% 18% $ 173,164 $ 1,209,864 $ Memorial 022000 Medical Surgical Clinic Peter Rojas $ 173,164 $ 1,209,864 $ 3% 3% 0% $ 635,508 $ 4,925,583 $ Hospitalist 130006 Hospitalist $ 635,508 $ 4,925,583 $ - 11% 12% 0% $ $ $ $ $ $ $ $ $ $ $ 35,146 90,024 - 257,747 215,522 230,305 52,195 9,314 - $ $ $ $ $ $ $ $ $ $ $ 196,707 2,430,260 - 1,368,275 1,368,275 1,705,546 285,847 141,871 53,511 - $ $ $ $ $ $ $ $ $ $ $ 3,104,363 2,798,882 1,874,455 504 1,384,921 1,384,921 1,003,953 254,260 242,673 - 35,860 Port Lavaca 0 13000 013001 019000 013001 008800 001500 320001 012000 700003 320000 610000 Clinic Don Paul Bunnell John Wright Ric Arroyo -Diaz Leigh Anne Falcon Nirtas Kwi Timu Jewel Lincoln Shanna.Odonnell Jeannine Griffin Bludua/Bunnell John Lee Craig Shaffer $ 890,254 $ 7,832,746 $ 12,045,871 169/. 19% 31% $ $ $ $ $ $ $ - 94,672 105,273 26,788 6,906 2,343 $ $ $ $ $ $ $ - 529,854 532,358 98,905 52,932 49,113 $ $ $ $ $ $ 1 $ 849,215 502,307 556,810 85,540 41,913 32,288 Specialty 022000 012100 000404 070002 525225 900000 057006 Clinic Peter Rojas Donald Breech Ayo Adu Richard Steinberg Azhar Malik MD Dakshesh Parikh A Qadri $ 235,982 $ 1,263,162 1 $ 2,068,072 4% 3%1 5% -15- Physician Revenue Trend Memorial Medical Center AS Or July LVlO July 2016 2016 YTD PRIOR YEAR TO Coastal Medical Clinic 011000 Tim McFarland 000806 William McFarland $ $ 93,091 16,221 $ $ 568,450 159,713 $ $ 301,219 152,214 $ 109,312 $ 728,163 $ 453,433 2% 2% 1% $ $ $ $ $ 113,047 - 52,670 1,872 - $ $ $ $ $ 1,331,779 20,257 432,668 25,182 $ $ $ $ $ 975,284 68,381 428,381 63,264 Independent 006000 M S Lin 004000 G A Williams 310001 Michelle Cummins 330000 Nhi Le MD 004002 Laura Deming $ 167,589 $ 1,809,886 $ 1,535,310 3% 4% 4% $ $ 34,498 - $ $ 140,713 $ $ 78,976 Other Medical Staff 065002 George Boozalis 075000 Laborator Ramos $ 34,498 $ 140,713 $ 78,976 1% 0% 0% Total E/R Physicians $ 1,791,046 $ 11,262,554 $ 11,937,106 $ 1,791,046 $ 11,262,554 $ 11,937,106 31% 28% 31% $ $ $ $ $ $ $ $ $ $ $ 527,765 19,942 - 19,996 48,300 9,229 9,113 - - 3,205 - $ $ $ $ $ $ $ $ $ $ $ 2,494,496 126,496 - 33,768 451,225 35,673 67,136 31,714 32,156 25,595 $ $ $ $ $ $ $ $ $ $ $ 2,506,632 334,588 17,735 - 607,991 11,272 75,257 25,779 48,991 83,839 Other Ordering Physicians Other Ordering Physicians 004004 Neese/Twin Foun 000359 Earnest Alsop 000080 Marcus Caughron 807077 Nilesh Patel 800003 Bryan Kestler 900327 Dharmendr Verma 000077 Scott Stein 900116 Sabbagh Mohamme 012102 Jerr Followwill 142001 Greg Cowart $ 637,550 $ 3,798,260 $ 3,712,084 11% 8% 10% Totals $ 5,738,556 $ 40,699,145 $ 38,628,930 -16- Memorial Medical Center Hospital Accounts Receivable Quality Indicators ..... . .... Accounts Receivable by Payor 7Dm: n.—z J-.. kbl. I., "I. Nml, M-16 16 Medicaid Aging < 90 Days Sw M 77% 85M 70.M M-0 Mg15 Sep15 W-15 No'+15 0.mI5 J-16 Feb16 Mar-16 W-16 Ma6N Iurv16 juF'S 1 40� J--16J.11. 16 Commercial < 90 Days 4M, 7" M—M 70.M Ju 15 M9-15 5e ci OCM35 No D"S 1-16 F616 M- Apl ' M'y 1u'16 J.M� Memorial Medical Center Consolidated Clinic Accounts Receivable Quality Indicators Accounts Receivable by Payer 1,66g6W.ao 1,40r,".00 ... .. _ .. _ _ __... _ .... 1. 600.oW.W Jan Feb Mar Apr May Jun Jul Aug Sep 0R Nov Dec e Medicare Medlald ®Blue Cmis [Commertlal-DO"ale Pay Medicare < 60 Blue Cross < 90 Bo% 6w6 55% 54%" 5w6 56% 46% 43% 1 42% _ 4ws III a0% as Jan Feb Mar Apr May Jun Jul Aug Sep Oc Nov De< Commercial < 90 16as Bo% _ _.56% .. am 51% 53% 38% 38% 4{y{y{y li 036 35 4 -6 y 2w: g#$} I Jan Feb Mar Apr May Jun JulAug Sep OR Nw Dec 6w6 6.0% 59% 60% S SS% 53% 54% 40% 2w5e%Jan I Feb Mar Apr May Jun Aug Sep Oct Nov Day Memorial Medical Center Cash Performance indicators Monthly Collection $s 2,500,000.00 2,000,000.00 1,500,000.00 1,000,000.00 500,OOD.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ®eBem2015 Collections � 2016 Collection, Year to Date Collection &s 25,000,000.00 20,000,000.00 15,000,000.00 10,000,000.00 5,000,000.W Jan Feb 0% Jan Feb it Mar Apr May Jun Jul Aug Sep Oct Nov Dec �2015 Yearto Date — 2016Y.rt. Date Year to Date Goal Attainment 9691 1001/ 99% . ....... ... Mar Apr May Jun Jul Aug �2015 % ofGoal ^ 2016 % of Goal Up Front Collections Dec Sep Oct Nov 140,000.00 60,000-00 40,000.00 20,000.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec M2016UpFront$s nopportunity -19- RUN DATE:08/18/16 MEMORIAL 148DICAL CENTER PAGE 1 TIMB:09:46 CHECK REGISTER GLCKREG 07/01/16 THEN 07/31/16 BANK --CHECK---------------------- -------_- CODE NUMBER DATE AMOUNT PAYEE ----------------------------------------------------------------------------------------------- NHS 000003 07/11/16 91,553.71 ME14ORIAL MEDICAL CENTER TOTALS: 91,553.71 -20- RUN ➢ATE:08/17/16 MEMORIAL MEDICAL CENTER PAGE 1 TIME:17:18 CHECK REGISTER GLCKREG 07/01/16 THRU 01/31/16 BANK--CHECK---------------------------------------------------- CODE NUMBER DATE AMOUNT PAYEE ___ _. _ _.__---___-_. _--_----__---__---___-_. __---__---_---------------_.__--___--- A/P 000788 07/05/16 735.04 MCKESSON A/P 000789 07/05/16 390.17 MCKESSON A/P 000790 07/05/16 2,067.05 MCKESSON A/P 000791 07/11/16 892.97 MCKESSON A/P 000792 07/11/16 213.49 MCKESSON A/P 000793 07/11/16 826.51 MCKESSON A/P 000794 07/20/16 917,84 MCKESSON A/P 000795 07/20/16 513.61 MCKESSON A/P 000796 07/20/16 1,313.15 MCKESSON A/P 000797 07/25/16 627.38 MCKESSON A/P 000798 07/25/16 438,45 MCKESSON A/P * 000799 07/25/16 1,697.29 MCKESSON A/P * 166206 07/20/16 1,222.09CR DEWITT POTH & SON A/P * 166239 07/01/16 139.000R FIESTA FACTORY A/P * 166905 07/20/16 1,426,75CR RANDY'S FLOOR COMPANY A/P 166931 07/05/16 808.25 HERNANDEZ ELOY A/P 166932 07/06/16 81,03 CUSTOM MEDICAL SPECIALTIES A/P 166933 07/06/16 1,460,61 BECTON, DICKINSON & CO (BD) A/P 166934 07/06/16 135.90 PH04RDIUM SERVICES LLC A/P 166935 07/06/16 750,00 JA14ES A DANIEL A/P 166936 07/06/16 600.00 REXEL A/P 166937 07/06/16 1,236.68 CENTURION MEDICAL PRODUCTS A/P 166938 07/06/16 347.65 DEWITT POTB & SON A/P 166939 07/06/16 255.47 PRECISION DYNAMICS CORP (PDC) A/P 166940 07/06/16 .00 VOIDED A/P 166941 07/06/16 10,702.85 140RRIS & DICKSON CO, LLC A/P 166942 07/06/16 41,025.00 CPP WOUND CARE #28,LLC A/P 166913 07/06/16 2,680.00 TELE-PHYSICIANS, P.A. (TX) A/P 166944 07/06/16 356.65 STRYKER SUSTAINABILITY A/P 166945 07/06/16 450,00 CBS ATHLETIC BOOSTER CLUB INC A/P 166946 07/06/16 9.00 TEXAS PRESCRIPTION PROGRAM A/P 166947 07/06/16 26,540.38 MMC EMPLOYEE BENEFIT PLAN A/P 166948 07/06/16 3,074.00 QIAGEN INC A/P 166949 07/06/16 170.16 GENESIS DIAGNOSTICS A/P 166950 07/06/16 396,00 WALLRR,LANSDEN, DORTCH & DAVIS A/P 166951 07/06/16 105.00 MEMORIAL MEDICAL CLINIC A/P 166952 07/06/l6 1,182.50 M G TRUST A/P 166953 07/06/16 990.00 DERRI HART A/P 166954 07/06/16 2,646,79 COMBINE➢ INSURANCE CO A/P 166955 07/06/16 75.00 FIRST CLEARING A/P 166956 07/06/16 2,583.36 AIRESPRING INC A/P 166957 07/06/16 1,507.50 PABLO GARZA A/P 166958 07/06/16 5,850.00 DR JEWEL LINCOLN A/P 166959 07/06/16 11,001.20 PORT LAVACA RETAIL GROUP LLC A/P 166960 07/06/16 8,332.20 PAETEC A/P 166961 07/06/16 500.00 LAMAR COMPANIES A/P 166962 07/06/16 20.00 CCSPC A/P 166963 07/06/16 249.94 N C CHILD SUPPORT CENTRALIZED A/P 166964 07/06/16 65,55 DOROTHY BONUZ A/P 166965 07/06/16 41.52 GULF COAST HARDWARE / ACE -21- RUN DATE:08/17/16 MEMORIAL 14EDIM CENTER TIME:17:18 CHECK REGISTER 01/01/16 THRU 07/31/16 BANK--CNBCK________________________________ ____________________ CODE NUMBER DATE AMOUNT PAYEE ______________________ ____________________________________________ A/P 166966 07/06/16 3,284.20 AFLAC A/P 166967 07/06/16 55.03 CARDINAL HEALTH 414,LLC A/P 166968 07/06/16 22.00 ANNOUNCEMENTS PLUS TOO AGAIN A/P 166969 07/06/16 536.54 ARROW INTERNATIONAL INC A/P 166970 07/06/16 641.18 BAXTER HEALTHCARE CORP A/P 166971 07/06/16 8,166,94 BECKMAN COULTER INC A/P 166972 07/06/16 25.00 CAL CON FEDERAL CREDIT UNION A/P 166973 07/06/16 1,000.00 CALHOUN INDEPENDENT SCHOOL DIS A/P 166974 07/06/16 597.99 CONNED CORPORATION A/P 166975 07/06/16 12,932.57 EVIDENT A/P 166976 07/06/16 178.75 DYNATRONICS CORPORATION A/P 166977 07/06/16 4,552,53 FISHER HEALTHCARE A/P 166979 07/06/16 125.00 GULF COAST DELIVERY A/P 166979 07/06/16 663.62 HOLOGIC INC A/P 166980 07/06/16 56.17 INDEPENDENCE MEDICAL A/P 166981 07/06/16 42.00 J & J HEALTH CARE SYSTEMS, INC A/P 166982 07/06/16 300.00 JECKBR FLOOR & GLASS A/P 166983 07/06/16 1,241.30 SHIRLEY KARNEI A/P 166984 07/06/16 258.36 BAYER HEALTHCARE A/P 166985 07/06/16 1,540.01 MERRY X-RAY/SOURCEONE HEALTHCA A/P 1669B6 07/06/16 247.90 MEDIVATORS A/P 166987 07/06/16 1,274.51 OWENS & MINOR A/P 166988 07/06/16 263.13 R & D BATTERIES INC A/P 166989 07/06/16 278.69 SANOFI PASTEUR INC A/P 166990 07/06/16 222.72 SHERWIN WILLIAMS A/P 166991 07/06/16 256.96 SMITH & NEPHEW A/P 166992 07/06/16 245.16 ERIN CLEVENGER A/P 166993 07/06/16 110.76 THCHNO-AIDE A/P 166994 07/06/16 2,545.00 TEXAS DEPT OF STATE A/P 166995 07/06/16 7,381,00 TEXAS MUTUAL INSURANCE CO A/P 166996 07/06/16 196.40 TG A/P 166997 07/06/16 21.99 UNIFORM ADVANTAGE A/P 166998 07/06/16 1,587,54 UNIFIRST HOLDINGS INC A/P 166999 07/06/16 4,862.91 WATERMARK GRAPHICS INC A/P 167000 07/06/16 496,04 GRAINGER A/P 167001 07/06/16 50.00 JANA BESSIE CLEARY A/P 167002 07/06/16 44,40 GRACE SIMON A/P 167003 07/06/16 150.00 ROSE SHELDON A/P 167034 07/06/16 451.92 SANCHEZ FERNANDO A/P 167005 07/06/16 512.55 PAW HTDU KLAE A/P 167006 07/06/16 10.00 BRIAER JOBN A/P 167007 07/06/16 10.61 RODRIGUEZ ALICIA A/P 167008 07/06/16 798.56 BRIBING CATHY A A/P 167009 07/06/16 237.96 SERVANTES RUBIN A/P 161010 07/06/16 11.92 CHID LING A/P 167011 07/06/16 166.80 DANIELS HALEY MARILYN A/P 167012 07/06/16 10.75 HANG HELEN A/P 167013 07/06/16 350.56 NGUYEN CHAD A/P 167014 07/06/16 371,71 HILL ANGELIA A/P 167015 07/06/16 248.47 LAY PHA A/P 167016 07/06/16 516.45 GERRARD WENDY PAGE 2 GLCKREG -22- RUN DATE:08/17/16 MEMORIAL MEDICAL CENTER TIME:17:18 CHECK REGISTER 07/01/16 THR➢ 07/31/16 BANK--CHECK---------------------------------------------------- CODE NUMBER DATE AMOUNT PAYEE _---_ _-- _. _--------_ __---- -_-----_-----_- A/P ------ ---------_ 167017 07/06/16 _ _---_ 10.38 HOWARD DEBRA A/P 167019 07/06/16 543.52 NARANJO IRENE A/P 167019 07/06/16 11.45 GOSNELL LYNDA A/P 167020 07/06/16 10.00 GOODRICH CATHERINE A/P 167021 07/06/16 526.96 WARREN JOHN A/P 167022 07/06/16 385.57 BRAUN RHONDA A/P 161023 07/06/16 356.22 HARDEE LESLIE C A/P 167024 07/96/16 81.47 CUMBY TYLISHA A/P 167025 07/06/16 1,582.70 ANDBR80N EVA A/P 167026 07/06/16 533,37 POSEY RICK A/P 167027 07/06/16 412.18 PATEL JULIE A/P 167028 07/06/16 21,117,12 THE BROADMOOR AT CREEK A/P 167029 07/06/16 6,081.91 CALHOUN CO INDIGENT PRO A/P 167030 07/06/16 257.60 ASHFORD GARDENS A/P 167031 07/06/16 3,842.12 SOLERA WEST HOUSTON A/P 167032 07/07/16 65,102,01 MEMORIAL MEDICAL CENTER A/P 167033 01/07/16 6,668.57 MEMORIAL MEDICAL CENTER A/P 167034 07/07/16 10,112.98 MEMORIAL MEDICAL CENTER A/P 167035 07/07/16 56,483.16 MEMORIAL MEDICAL CENTER A/P 167036 07/07/16 201,101.68 MEMORIAL MEDICAL CENTER A/P 167037 07/13/16 31,500,00 STLEYE, LP A/P 161038 07/14/16 103.36 PHILIPS HEALTHCARE A/P 167039 07/14/16 .00 VOIDED A/P 167040 07/14/16 20,288.83 US FOOD SERVICE A/P 167041 07/14/16 415.22 MERCEDES MEDICAL A/P 167042 07/14/16 199.00 PHARMEDIUM SERVICES TLC A/P 167043 07/14/16 8,333.33 HITACHI MEDICAL SYSTEMS A/P 167044 07/14/16 1,017.64 CENTURION MEDICAL PRODUCTS A/P 167045 07/14/16 1,080.91 DEWITT POTH & SON A/P 167046 07/14/16 336.70 PRECISION DYNAMICS CORP (PDC) A/P 167047 07/14/16 557.80 INTERSTATE ALL BATTERY CENTER A/P 167048 07/14/16 209.52 ALERE NORTH AMERICA INC A/P 167049 07/14/16 .00 VOIDED A/P 167050 07/14/16 11,043.11 MORRIS & DICKSON CO, LLC A/P 167051 07/14/16 98.28 PLATINUM CODE A/P 167052 07/14/16 193,33 AMERICAN PROFICIENCY INSTITUTE A/P 167053 07/14/16 390.02 PENLON, INC A/P 167054 07/14/16 220.37 GLOBAL EQUIPMENT CO. INC. A/P 167055 07/14/16 1,665.00 SIGN AD, LTD. A/P 167056 07/14/16 650.00 LIFESOURCE EDUCATIONAL SRV LLC A/P 167057 07/14/16 65.00 MACAW MEDICAL A/P 167058 07/14/16 225,00 WAGEWORKS A/P 167059 07/14/16 48,477.47 181C EMPLOYEE BENEFIT PLAN A/P 167060 07/14/16 350.00 PROCESSOR & CRE14ICAL SERVICES A/P 167061 07/14/16 14,474.84 HUNTER PHARMACY SERVICES A/P 167062 07/14/16 1,400.00 ACUTE CARE INC A/P 167063 07/14/16 9,066.78 RICOH USA, INC A/P 167064 07/14/16 130.72 UNITED RENTALS (NORTH AMERICA) A/P 167065 07/14/16 530.00 CALHOUN CO INDIGENT ACCT A/P 167066 07/14/16 4,424.97 E-NDS, INC A/P 167067 07/14/16 248.41 ELITECH GROUP INC PAGE 3 GLCKREG -23- RUN DATE:08/17/16 MEMORIAL MEDICAL CENTER TINE:17:18 CHECK REGISTER 07/01/16 THRU 07/31/16 HANK --CHECK____________________________________________________ CODE NUMBER ➢ATE AMOUNT PAYEE ____ A/P _______________________-____--___--______________-____-______- 167069 07/14/16 3,157.38 FUSION MEDICAL STAFFING, LLC A/P 167069 07/14/16 350.00 PROMETHEUS LABORATORIES, INC A/P 167070 07/14/16 500.00 LAMAR COMPANIES A/P 167071 07/14/16 30,260.01 TXU ENERGY A/P 167072 07/14/16 231.00 HBARTSMART.COM A/P 167073 07/14/16 140.00 HACPP A/P 167074 07/14/16 424,204.00 TEXAS HHSC A/P 167075 07/14/16 9.99 GULF COAST HARDWARE / ACE A/P 167676 07/14/16 461.58 ALPHA TEC SYSTEMS INC A/P 167077 07/14/16 1,230.49 CARDINAL HEALTH 414,LLC A/P 167078 07/14/16 97.03 ARROW INTERNATIONAL INC A/P 167079 07/14/16 344,62 BARD PERIPHERAL VASCULAR A/P 167080 07/14/16 1,021.70 BARTER HEALTHCARE CORP A/P 167081 07/14/16 2,011.16 BEC104M COULTER INC A/P 167082 07/14/16 444.61 BOSTON SCIENTIFIC CORPORATION A/P 167083 07/14/16 163.95 BRIGGS HEALTHCARE A/P 167084 07/14/16 1,400.00 CABLE ONE A/P 167085 07/14/16 497.04 COW GOVERNMENT, INC. A/P 167086 07/14/16 12,20 DOWNTOWN CLEANERS A/P 167087 07/14/16 95.90 DIE PAPER & PACKAGING A/P 167088 07/14/16 130.70 DYNATRONICS CORPORATION A/P 167089 07/14/16 46.10 CENTERPOINT ENERGY A/P 167090 07/14/16 9.34 FEDERAL EXPRESS CORP. A/P 167091 07/14/16 950.19 FISHER HEALTHCARE A/P 167092 07/14/16 150,95 GETINGE USA A/P 167093 07/14/16 363.42 GULF COAST PAPER COMPANY A/P 167094 07/14116 49,99 HAYES ELECTRIC SERVICE A/P 167095 07/14/16 36.60 INDEPENDENCE MEDICAL A/P 167056 07/14/16 6,498.71 WERFEN USA LLC A/P 167097 07/14/16 92.55 INTEGRATED MEDICAL SYSTEMS A/P 167098 07/14/16 882.46 U & J HEALTH CARE SYSTEMS, INC A/P 167099 07/14/16 168.00 UGHNSTONE SUPPLY A/P 167100 07/14/16 .00 VOIDED A/P 167101 07/14/16 3,649.62 MCKESSON MEDICAL SURGICAL INC A/P 167102 07/14/16 263,35 MEDTRONIC USA, INC. A/P 167103 07/14/16 127.24 MMC VOLUNTEERS A/P 167104 07/14/16 246.96 OFFICE DEPOT A/P 167105 07/14/16 .00 VOIDED A/P 167106 07/14/16 ,00 VOIDED A/P 167107 07/14/16 4,869.69 OWENS & MINOR A/P 167108 07/14/16 37.76 POWER ELECTRIC A/P 167109 07/14/16 181.36 SERVICE SUPPLY OF VICTORIA INC A/P 167110 07/14/16 152.01 SHERWIN WILLIAMS A/P 167111 07/14/16 832.25 SIEMENS MEDICAL SOLUTIONS INC A/P 167112 07/14/16 54,94 SMILE MAKERS A/P 167113 07/14/16 60.00 SO TEX BLOOD & TISSUE CENTER A/P 167114 07/14/16 6,422.49 TEXAS ASSOCIATION OF COUNTIES A/P 167115 07/14/16 275.80 TEXAS WIRED 14USIC INC A/P 167116 07/14/16 18,134,98 3M COMPANY A/P 167117 07/14/16 441,34 TRI-ANIM HEALTH SERVICES INC A/P 167119 07/14/16 157.34 9NIFIRST HOL➢INGS PAGE 4 GLCKREG -24- RUN DATE:08/17/16 MEMORIAL MEDICAL CENTER TIME:17:18 CHECK REGISTER 07/01/16 THRU 07/31/16 BANK --CHECK ------------------------------------------ CODE NUMBER DATE AMOUNT PAYEE A/P 167119 07/14/16 .00 VOIDED A/P 167120 07/14/16 5,943.25 UNIFIRST HOLDINGS INC A/P 167121 07/14/16 500.00 QUINN GLBINSBR A/P 167112 07/14/16 1,806.79 TLC STAFFING A/P 167123 07/20/16 1,222,09 DEWITT POTH & SON A/P 167124 07/20/16 1,426.75 RANDY'S FLOOR COMPANY A/P 167125 07/22/16 305.45 EDEN USA INC SURGICAL SYSTEMS A/P 167126 07/22/16 722.70 US FOOD SERVICE A/P 167127 07/22/16 171.50 PHARMEDIUM SERVICES LLC A/P 167128 07/22/16 1,350.94 CENTURION MEDICAL PRODUCES A/P 167129 07/22/16 .00 VOIDED A/P 167130 07/22/16 1,509.55 DEWITT BOTH & SON A/P 167131 07/22/16 215.65 PREC18ION DYNAMICS CORP (PDC) A/P 167132 07/22/16 42,95 UNIT ➢RUG CO, LLC A/P 167133 07/22/16 172.04 JASON ANGLIN A/P 167134 07/22/16 .00 VOIDED A/P 167135 07/22/16 11,587,96 MORRIS & DICKSON CO, LLC A/P 167136 07/22/16 229.32 PLATINUM CODS A/P 167137 07/22/16 16,874.00 BEN, ELF A/P 167138 07/22/16 97.64 GLOBAL EQUIPMENT CO, INC. A/P 167139 07/22/16 6,044.92 STRYKER SUSTAINABILITY A/P 167140 07/22/16 790.00 OSCAR TORRES A/P 167141 07/22/16 4,944.68 CLINICAL PATHOLOGY A/P 167142 07/22/16 13,593.56 MMC EMPLOYES BENEFIT PLAN A/P 167143 07/22/16 30,530.29 ALLIED BENEFIT SYSTEMS A/P 167144 07/22/16 3,165,34 NOVA BIOMEDICAL A/P 167145 07/22/16 4,200.00 ROLM REYES, SR, A/P 167146 07/22/16 289,06 GENESIS DIAGNOSTICS A/P 167147 07/22/16 2,276.61 WAGHWORKS A/P 167148 07/22/16 14,230.10 HUNTER PHARMACY SERVICES A/P 167149 07/22/16 1,333.33 SIEMENS FINANCIAL SERVICES A/P 167150 07/22/16 6,145.37 HANK OF THE WEST A/P 167151 07/22/16 4,253,00 RICOH USA, INC A/P 167152 07/22/16 170,00 MEMORIAL MEDICAL CLINIC A/P 167153 07/22/16 1,182,50 M G TRUST A/P 167154 07/22/16 2,150,55 REVCYCLE+, INC. A/P 1671SS 07/22/16 558.00 SHIFTHOUND A/P 167156 07/22/16 75.00 FIRST CLEARING A/P 167157 07/22/16 8,739.00 FUSION MEDICAL STAFFING, LLC A/P 167158 07/22/16 662.27 MARLIN BUSINESS BANK A/P 167159 07/22/16 179.75 THE US CONSULTING GROUP A/P 167160 07/22/16 5,268,70 GARNER & WHITB, INC. A/P 167161 07/22/16 346.60 WEST INTERACTIVE SERVICES CORP A/P 167162 07/22/16 20.00 CCSPC A/P 167163 07/22/16 249,84 N C CHILD SUPPORT CENTRALIZED A/P 167164 07/22/16 6,343,94 CFI MECHANICAL INC A/P 167165 07/22/16 296.70 MEDI-DOSE, INC A/P 167166 07/22/16 50.00 DEE A/P 167167 07/22/16 1,272.00 INTERMEDIX A/P 167168 07/22/16 224.00 BUN MACHINE & PUMP REPAIR, LLC A/P 167169 07/22/16 1,515.56 US STANDARD PRODUCTS PAGE 5 GLCKREG -25- RUN DATE:08/17/16 MR14ORIAL MEDICAL CENTER PAGE 6 TIME:17:18 CHECK REGISTER GLCKREG 07/01/16 THRU 07/31/16 BANK--CHECR_-.----___--__--_--__-----__ _-__--_.--___---- CODE NUMBER DATE AMOUNT PAYEE A/P 167170 07/22/16 790.97 DEPARTMENT OF THE TREASURY A/P 167171 07/22/16 109.92 GULF COAST HARDWARE / ACE A/P 167172 07/22/16 6,021.17 AIRGAS USA, LLC - CENTRAL DIV A/P 167173 07/22/16 1,431,00 ALCON LABORATORIES, INC. A/P 167174 07/22/16 11.09 AQUA BEVERAGE COMPANY A/P 167175 07/22/16 205,85 NADINE GARNER A/P 167176 07/22/16 67.84 AUTO PARTS & MACHINE CO, A/P 167177 07/22/16 330.20 BAXTER HEALTHCARE CORP A/P 167178 07/22/16 4,953.78 BECK14AN COULTER INC A/P 167179 07/22/16 25.00 CAL CON FEDERAL CREDIT UNION A/P 167180 07/22/16 60,00 CHS CHEERLEADERS A/P 167181 07/22/16 4,179.21 CDW GOVERNMENT, INC. A/P 167182 07/22/16 166.34 C R BARD, INC A/P 167183 07/22/16 140,83 DYNATRONICS CORPORATION A/P 167184 07/22/16 65.72 FEDERAL EXPRESS CORP. A/P 167165 07/22/16 7,667.82 FISHER HEALTHCARE A/P 167166 07/22/16 356.56 GULF COAST PAPER COMPANY A/P 167187 07/22/16 663.62 HOLOGIC INC A/P 167188 07/22/16 314.98 HOSPIRA WORLDWIDE, INC A/P 167189 07/22/16 220.90 INDEPENDENCE MEDICAL A/P 167190 07/22/16 128.75 WERFEN USA LLC A/P 167191 07/22/16 391.57 INTEGRATED MEDICAL SYSTEMS A/P 167192 07/22/16 1,216,17 J & J HEALTH CARE SYSTEMS, INC A/P 167193 07/22/16 2,972.05 JECXER FLOOR & GLASS A/P 167194 07/22/16 104.32 M.C. JOHNSON COMPANY INC A/P 167195 07/22/16 141,01 JOHNSTONE SUPPLY A/P 167196 07/22/16 1,116.50 SHIRLEY MEI A/P 167197 07/22/16 3.60 LANGUAGE LINE SERVICES A/P 167198 07/22/16 6,736.96 MCKESSON MEDICAL SURGICAL INC A/P 167199 07/22/16 75.32 MEDLINE IN➢USTRIES INC A/P 167200 07/22/16 258.36 BAYER HEALTHCARE A/P 167201 07/22/16 3,320,00 MERRITT, HANKINS & ASSOCIATES A/P 167202 07/22/16 1,181.66 MERRY X-RAY/SOURCEONE HEALTHCA A/P 167203 07/22/16 3,000.00 NUTRITION OPTIONS A/P 167204 07/22/16 214.68 OFFICE DEPOT A/P 167205 07/22/16 .00 VOIDE➢ A/P 167206 07/22/16 .00 VOIDED A/P 167207 07/22/16 13,423,38 OWENS & MINOR A/P 167208 07/22/16 143.00 PALACIOS BEACON A/P 167209 07/22/16 14,200.00 PREMIER SLEEP DISORDERS CENTER A/P 167210 07/22/16 125.26 P06YMEDCO INC. A/P 167211 07/22/16 919.82 PORT LAVACA WAVE A/P 167212 07/22/16 1,145.90 CULLIGAN OF VICTORIA A/P 167213 07/22/16 382.80 EVOQUA WATER TECHNOLOGIES LLC A/P 167214 07/22/16 573,12 SERVICE SUPPLY OF VICTORIA INC A/P 167215 07/22/16 130.32 SHERWIN WILLIAMS A/P 167216 07/22/16 265,66 SMITHS MEDICAL ASO INC A/P 167217 07/22/16 774.43 SMITH & NEPHEW A/P 167218 07/22/16 4,065.00 SO TEX BLOOD & TISSUE CENTER A/P 167219 07/22/16 372.17 ERIN CLEVENGER A/P 167220 07/22/16 221.68 TG -26- RUN DATE:08/17/16 ,. MEMORIAL MEDICAL CENTER TIMH:17:18 CHECK REGISTER 07/01/16 THRU 07/31/16 BANK --CHECK ---------------------------------------------------- CODE NUMBER DATE AMOUNT PAYEE ____-_-_________--___________-_____________-_-____________. A/P 167221 07/22/16 4,555.00 T-SYSTEM, INC A/P 167222 07/22/16 77,72 UNIFIRST HOLDINGS A/P 167223 07/22/16 907.57 UNIFORM ADVANTAGE A/P 167224 07/22/16 3,463.37 UNIFIRST HOLDINGS INC A/P 167225 07/22/16 1,000.00 US POSTAL SERVICE A/P 167226 07/22/16 1,107.72 THE VICTORIA ADVOCATE A/P 167227 07/22/16 9,700.00 VICTORIA AIR CONDITIONING LTD A/P 167228 07/22/16 510.00 VICTORIA RADIOWORFS, LTD A/P, 167229 07/27/16 3,621.59 PHILIPS HEALTHCARE A/P 167230 07/27/16 269.76 MERCEDES MEDICAL A/P 167231 07/27/16 339,75 PUARMEDIUM SERVICES LLC A/P 167232 07/27/16 3,173.16 GE HEALTHCARE A/P 167233 07/27/16 2,021.39 PRINCIPAL LIFE A/P 167234 07/27/16 9.25 HEALTH CARE LOGISTICS INC A/P 167235 07/27/16 1,018.30 CENTURION MEDICAL PRODUCTS A/P 167236 07/27/16 751.66 DEWITT POTH & SON A/P 167237 03/27/16 389.00 PRECISION DYNAMICS CORP (PDC) A/P 167238 07/27/16 ,00 VOIDED A/P 167239 07/27/16 29,031.06 MORRIS & DICKSON CO, LLC A/P 167240 07/27/16 151.66 PLATINUM CODE A/P 167241 07/27/16 26,075.00 CPP WOUND CARE MAC A/P 167242 07/27/16 1,712,06 LUMINANT ENERGY COMPANY LLC A/P 167243 01/27/16 2,680.00 TELE-PHYSICIANS, P.A. (TX) A/P 167244 07/27/16 686.37 GLAXOSMITHKLINE PHARMACUETICAL A/P 167245 07/27/16 120,00 REVISTA de VICTORIA A/P 167246 07/27/16 244,40 FIVE STAR STERILIZER SERVICES A/P 167247 07/27/16 495.00 FASTHEALTH CORPORATION A/P 167248 07/27/16 650.00 LIFESOURCE EDUCATIONAL SRV LLC A/P 167249 07/27/16 2,853.76 THERACOM, LLC A/P 167250 07/27/16 37,142.01 MMC EMPLOYEE BENEFIT PLAN A/P 167251 07/27/16 1,409.25 HHALTHSTREAM, INC. A/P 167252 07/27/16 1,678.35 MERCK SHARP & DOW CORP A/P 167253 07/27/16 1,978.75 TRUVEN HEALTH ANALYTICS INC A/P 167254 07/27/16 1,443.81 UNITED RENTALS (NORTH AMERICA) A/P 167255 07/27/16 4,400.00 THE COMPLIANCE TEAM, INC A/P 167256 07/27/16 7,682.67 CSI LEASING INC A/P 167257 07/27/16 4,050.00 RECONDO A/P 167258 07/27/16 1,051.75 BIRCH COMMUNICATIONS A/P 167259 07/27/16 2,459.85 AIRESPRING INC A/P 167260 07/27/16 1,221.00 TRIZETTO PROVIDER SOLUTIONS A/P 167261 07/27/16 1,485.00 PABLO GARZA A/P 167262 07/27/16 2,542.63 FUSION ME➢ICAL STAFFING, LLC A/P 167263 07/27/16 387,00 STRATUS VIDEO INTERPRETING A/P 167264 07/27/16 1,066.29 THE US CONSULTING GROUP A/P 167265 07/27/16 6,655.11 MINDRAY CAPITAL A/P 167266 07/27/16 5,635.00 REALITY MEDICAL IMAGING OF TX A/P 167267 01/27/16 3,690,52 TEXAS ADVANTAGE COMMUNITY BANK A/P 167268 07/27/16 2,000,00 PARA A/P 167269 07/27/16 57.08 FRONTIER A/P 167270 07/27/16 477,51 GULF COAST HARDWARE / ACE A/P 167271 07/27/16 1,414.05 CARDINAL HEALTH 414,LLC PAGE 7 GLCKREG -27- RUN ➢ATE:08/17/16 MEMORIAL MEDICAL CENTER TIME:17:18 CHECK REGISTER 07/01/16 THRU 07/31/16 BANK --CHECK ---------------------------------------------------- CODE NUMBER DATE AMOUNT PAYEE ---------------------------------------------------------------_--. A/P 167272 07/27/16 141.89 AMTEC MEDICAL INC A/P 167273 07/27/16 3,521.49 BAXTER HEALTHCARE CORP A/P 167274 07/27/16 27,738.51 BECK6LIN COULTER INC A/P 167275 07/27/16 155.90 BOSART LOCK & KEY INC A/P 167276 07/27/16 218.00 BOSTON SCIENTIFIC CORPORATION A/P 167277 07/27/16 679.15 CABLE ONE A/P 167276 07/27/16 90.00 CENTRAL DRUGS A/P 167279 07/27/16 4,330.99 CITY OF PORT LAVACA A/P 167280 07/27/16 597,99 CONMB CORPORATION A/P 167281 07/27/16 467.50 COVER ONE A/P 167282 07/27/16 18,777.00 EVIDENT A/P 167283 07/27/16 29.70 STACIE EPLEY A/P 167284 07/27/16 29,70 STACY FARMER A/P 167285 07/27/16 50.08 FEDERAL EXPRESS CORP. A/P 167286 07/27/16 4,809.58 FISHER HEALTHCARE A/P 167287 07/27/16 1,060.00 FORT BEND SERVICES, INC A/P 167288 07/27/16 685,87 GULF COAST PAPER COMPANY A/P 167289 07/27/16 11,25 HOSPIRA WORLDWIDE, INC A/P 161290 07/27/16 77.99 INDEPENDENCE MEDICAL A/P 167291 07/27/16 737.32 J & J HEALTH CARE SYSTEMS, INC A/P 167292 07/27/16 443.80 LABCORP OF AMERICA HOLDINGS A/P 167293 07/27/16 404.97 MARTIN PRINTING CO A/P 167294 07/27/16 516,72 BAYBR HEALTHCARE A/P 167295 07/27/16 248.76 MMC AUXILIARY GIFT SHOP A/P 167296 07/21/16 1,943.59 MERRY X-RAY/SOURCEONE HEALTHCA A/P 167297 07/27/16 123,48 OFFICE DEPOT A/P 167298 07/27/16 .00 VOIDED A/P 167299 07/27/16 4,516,65 OWENS & MINOR A/P 167300 07/27/16 207.00 PITNEY BOWES INC A/P 167301 07/27/16 75.00 RED HAWK A/P 167302 07/27/16 590.00 RADIOLOGY UNLIMITED, PA A/P 167303 07/27/16 1,548.72 SANOFI PASTEUR INC A/P 167304 07/27/16 633,33 SIEMENS MEDICAL SOLUTIONS INC A/P 167305 07/27/16 5,000.00 SOUTHEAST TEXAS HEALTH SYS A/P 167306 07/27/16 47.40 STRYKER SALES CORP A/P 167307 07/27/16 4,548.86 STERICYCLE, INC A/P 167309 07/27/16 2,874.35 TLC STAFFING A/P 167309 07/27/16 9,000,00 TOSHIBA AMERICA 149DICAL SYST. A/P 167310 07/27/16 991,00 THYSSENKRUPP ELEVATOR CORP A/P 167311 07/27/16 600.00 TRINITY PHYSICS CONSULTING LLC A/P 167312 07/27/16 122.55 USI INC A/P 167313 07/27/16 77.72 UNIFIRST HOLDINGS A/P 167314 07/27/16 4,602.20 UNIFIRST HOLDINGS INC A/P 167315 07/27/16 453,07 UPS A/P 167316 07/27/16 238,71 VERIZON WIRELESS A/P 167317 07/27/16 273.07 WALMART COMMUNITY A/P 167319 07/27/16 979.29 WATERMARK GRAPHICS INC A/P 167319 07/28/16 373,32 UNITED STATES TREASURY TOTALS: 1,787,711.50 PAGE 8 GLCKREG RUN DATE:08/17/16 MEMORIAL MEDICAL CENTER PAGE 9 TIME:17:18 CHECK REGISTER GLCKREG 07/01/16 THRU 07/31/16 BANK--CHECK------- CODENUMBER DATE ICP 011838 07/29/16 ICP 011839 07/29/16 ICP 011840 07/29/16 ICP 011841 07/29/16 ICP 011842 07/29/16 ICP 011843 07/29/16 ICP 011944 07/29/16 ICP 011945 07/29/16 ICP 011946 01/29/16 ICP 011847 07/29/16 ICP 011848 07/29/16 ICP 011849 07/29/16 ICP 011850 07/29/16 ICP 011851 07/29/16 TOTALS: AMOUNT 151.84 46.73 768.09 716.34 355.77 313.27 758.17 64.15 8,057.13 46,562.86 644.88 1,894.62 517.51 47.85 60,899.21 PAYEE COMMUNITY PATHOLOGY ASSOCIATES MAU-SHONG LIN, N.D. MICHELLE M. CUMMINS, M.D. PORT LAVACA CLINIC ASSOC, PA RADIOLOGY UNLIMITED PA REGIONAL EMPLOYEE ASSISTANCE VICTORIA ANESTBESIOLGGY, LLP VICTORIA EYE CENTER MEMORIAL MEDICAL CENTER MEMORIAL MEDICAL CENTER NED IMPACT (HEB) MEMORIAL MEDICAL CLINIC ADD SPORTS MEDICINE CLINIC RICHARD ARROYO-DIAZ -29- RUN DATE:08/17/16 MEMORIAL MEDICAL CENTER TIME:17:18 CHECK REGISTER 07/01/16 THRU 67/31/16 BANK --CHECK--_---_----_-----_-_------. CODE NUMBER DATE AMOUNT PAYEE PR- 061804 07/14/16 43.87 PAY-P.06/24/16 07/07/16 PR- 061805 07/14/16 404.46 PAY-P.06/24/16 07/07/16 PR- f 061806 07/28/16 130.46 PAY-P.07/08/16 07/21/16 PR- 999939 07/14/16 545,521.45 TOTALS: 546,100.24 PAGE 15 GLCKREG -30- RUN DATE:08/18/16 MEMORIAL MEDICAL CENTER PAGE 1 TIME:09:43 CHECK REGISTER GLCKREG 07/01/16 THRU 07/31/16 BANK --CHECK ---------------------------------------------------- CODE RUINER DATE AMOUNT PAYEE RNA 000007 07/11/16 314,264.94 MEMORIAL MEDICAL CENTER TOTALS: 314,264.94 -31- RUN DATE:08/18/16 14EMoRIAL MEDICAL CENTER TII4E:09:44 CHECK /01/16GRTHRU07/31/16 BANK--CHECK-------------------------------------------- CODE NUMBER DATE AMOUNT PAYEE ----------- ____________________________________________ HHB 000003 07/11/16 7,205.37 MEMORIAL MEDICAL CENTER TOTALS: 7,205.37 PAGE 1 GLCKREG -32- 0 PAGE 1 RUN DATE:08/18/16 MEMORIAL 142DICAL CENTER GLCKREG TI0:09:45 CHECK REGISTER 07/01/16 THRU 07/31/16 BANK--CHECK---------------------------------------------------- CODE NUMBER DATE AMOUNT PAYEE ' ------------------------------------------------------_-____.-_------_---__._._.------- """ NBC 000003 07/11/16 30,262.47 14E140RIAL MEDICAL CENTER TOTALS: 30,262.47 -33- RUN DATE:08/18/16 MEMORIAL MEDICAL CENTER PAGE 1 TI142:09:45 CHECK REGISTER GLCKREG 07/01/16 THEN 08/18/16 BANK--CHECK---------------------------------------------------- CODE NUMBER DATE AMOUNT PAYEE NHF 000003 07/11/16 97,406.80 MEMORIAL MEDICAL CENTER TOTALS: 97,406.80 -34- RUN DATE: 08/18/16 TIME: 13:32 PRTitle REGISTERED NURSE DEPARTMENTAL ASSIST ASST PURCHASE BUYER CENTRAL STERILE TECH PURCHASING SUPERVISR IP/EH/RM NURSE REGISTERED NURSE FOOD SERVICE STAFF 0 R AIDE ES AIDE REGISTERED NURSE MANAGER-SURGERY-OPC PAYROLL CLERK REGISTERED NURSE LICENSED VOCATIONAL LICENSED VOCATIONAL REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE DIRECTOR OF INPT SVC REGISTERED NURSE LICENSED VOCATIONAL ADMINIST ASSISTANT REGISTERED NURSE REGISTERED NURSE PRE -ADMISSION NURSE REGISTERED NURSE LICENSED VOCATIONAL RADIOLOGICAL TECH MICRO MT REFERRAL SPECIALIST MEDICAL LAB TECH LAB DIRECTOR LAB ASSISTANT MEDICAL LAB TECH MEDICAL TECHNOLOGIST REGISTERED NURSE PT TECH II REGISTERED NURSE TRANSCRIPTIONIST-RIC REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE CLINICAL IT SPCLST MEDICAL LAB TECH REGISTERED NURSE REGISTERED NURSE CNO-DIRECTOR OF QA REGISTERED NURSE REGISTERED NURSE . LICENSED VOCATIONAL PRACT ADMINISTRATOR REGISTERED NURSE MEMORIAL MEDICAL CENTER DEFAULT FORMAT FROM DBO19 PRDeptName EMERGENCY ROOM MAINTENANCE CENTRAL SUPPLY SURGERY CENTRAL SUPPLY INFECTION PREVENTION MED/SURG DIETARY SURGERY ENVIRONMENTAL SERVICES SURGERY SURGERY ACCOUNTING MED/SURG OBSTETRICS MED/SURG ICU OBSTETRICS EMERGENCY ROOM MED/SURG OBSTETRICS MED/SURG ADMINISTRATION EMERGENCY ROOM ICU SURGERY SURGICAL CLINIC SURGERY DIAGNOSTIC IMAGING LABORATORY MEMORIAL MEDICAL CLINIC LABORATORY LABORATORY LABORATORY LABORATORY LABORATORY EMERGENCY ROOM PHYSICAL THERAPY MED/SURG HEALTH INFORMATION MANAGEMENT OBSTETRICS OBSTETRICS MED/SURG OBSTETRICS ADMINISTRATION -CLINICAL SERVIC LABORATORY OBSTETRICS OBSTETRICS QUALITY ASSURANCE SURGERY MED/SURG MED/SURG MEMORIAL MEDICAL CLINIC ICU PRTotGross 5194.85 2525.25 2152.80 79.71 4311.20 5851.76 3567.25 1625.21 703.70 2228.80 1721.06 6518.20 3590.80 6828.63 4485.06 3799.72 1672,13 2331.14 6423.93 6236.20 4918.92 2510.29 3497.80 1098.33 4550.75 3695.41 6152.96 3887.88 5451.71 298.80 2369.50 794.25 5596.51 3054.36 4009.03 3967.46 4983.53 2157.36 2817.63 2007.72 4912.12 4462.87 90.00 6758.50 4261.48 1514.25 2928.57 4019.63 6812.20 5293.20 4338.86 490.88 7332.20 3263.35 ,;:� tkk� a blw PAGE 1 -35- RUN DATE: 16 iEMORIAL MEDICAL CENTER PAGE 2 13:32 TIME; 13:32 DEFAULT FORMAT FROPM DB019 PRTitle NURSE PRACTIONER LICENSED VOCATIONAL CERTIFIED NURSE AIDE SUPERVISOR LVN/RPhT CASE MANAGER/UR/DP REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE CERTIFIED NURSE AIDE REGISTERED NURSE CERTIFIED NURSE AIDE LICENSED VOCATIONAL REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE CERTIFIED NURSE AIDE REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE CERTIFIED NURSE AIDE LICENSED VOCATIONAL LICENSED VOCATIONAL REGISTERED NURSE LICENSED VOCATIONAL REGISTERED NURSE LICENSED VOCATIONAL REGISTERED NURSE LICENSED VOCATIONAL CERTIFIED NURSE AIDE CERTIFIED NURSE AIDE NURSE SUPERVISOR CERTIFIED NURSE AIDE REGISTERED NURSE FAN NURSE PRACTIONER REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE REGISTERED NURSE RN -OR SCRUB NURSE REGISTERED NURSE 0 R TECH REGISTERED NURSE OR TECHNICIAN RN-PERIOPERATIVE COURIER -CS TECH CENTRAL SUPPLY TECH REGISTERED NURSE REGISTERED NURSE PRDeptName MEMORIAL 14EDICAL CLINIC MED/SURG 1fED/SURG PHARMACY UTILIZATION REVIEW MED/SURG MED/SURG MED/SURG OBSTETRICS MED/SURG MED/SURG MED/SURG MED/SURG MED/SURG MED/SURG ICU MED/SURG MED/SURG MED/SURG MED/SURG ICU MED/SURG MED/SURG NED/SURG MED/SURG MED/SURG MEMORIAL MEDICAL CLINIC MED/SURG MED/SURG EMERGENCY ROOM MEMORIAL MEDICAL CLINIC MED/SURG MED/SURG MEMORIAL MEDICAL CLINIC MED/SURG MED/SURG MEMORIAL MEDICAL CLINIC EMERGENCY ROOM ICU ICU ICU ICU ICU ICU ICU SURGERY SURGERY SURGERY SURGERY SURGERY SURGERY CENTRAL SUPPLY CENTRAL SUPPLY EMERGENCY ROOM EMERGENCY ROOM PRTotGross 7538.40 672.00 1319.47 3180,71 4349.73 3343.45 3786.63 5266,00 4967.36 1341.57 3578,25 1616.97 1879.66 2799.25 4477.23 5398.36 2576.75 3913.99 1689.00 4387.98 4927.27 6291.58 471.75 2144.52 436.51 4039.99 1524.50 4777.08 2561.43 4510.08 2237.13 1534.82 2685.51 2994.28 1723.25 395.75 7538.40 4589.84 5647.98 437.00 4397.26 4042.09 6011.07 1195.75 4303.75 4662.14 5817.37 2895,01 5643.70 967.50 5608.87 1677.69 1754.56 6697.04 1227.50 -36- MEMORIAL MEDICAL CENTER RUN DATE: 08/18/16 DEFAULT FORMAT FROM DB019 TIME: 13:32 PRTitle PRDeptName PRTotGross ------------------------------------------------------------------ REGISTERED NURSE EMERGENCY ROOM 864.88 EMERGENCY DIRECTOR EMERGENCY ROOM 6218.10 REGISTERED NURSE EMERGENCY ROOM 04 REGISTERED NURSE EMERGENCY ROOM 4892..13 892 REGISTERED NURSE EMERGENCY ROOM . 38 REGISTERED NURSE EMERGENCY ROOM 451010.15 REGISTERED NURSE EMERGENCY ROOM 37 REGISTERED NURSE EMERGENCY ROOM 3918. 918.84 CLINIC COORDINATOR SPECIALTY CLINIC 86 4391.50 MT TECH SUPERVISOR LABORATORY MEDICAL TECHNOLOGIST LABORATORY 3964.88 MEDICAL LAB TECH LABORATORY . 1061.13 0 REGISTERED NURSE NEWBURG 4515.891.13 515 3 55 MEDICAL LAB TECH LABORATORY 3439.39.43 MEDICAL LAB TECH MMC CLINIC - LABORATORY LABORATORY ASSISTANT LABORATORY 893.13 LABORATORY ASSISTANT LABORATORY 801.88 LAB ASSISTANT LAB ORATORY 2247.40 LABORATORY ASSISTANT LABORATORY 1291.75 LAB ASSISTANT LABORATORY LABOR 1880.25 MEDICAL TECHNOLOGIST LABORATORY 511.50 LAB ASSIST/SECRETARY LABORATORY 2450.35 MEDICAL LAB TECH LABORATORY LABOR 3295.14 MEDICAL LAB TECH LABORATORY 6290.63 LAB ASSISTANT LAB ORATORY 2332.80 REGISTERED NURSE MED/SURG 595.25 LICENSED VOCATIONAL MEMORIAL MEDICAL CLINIC 2093.41 REGISTERED NURSE EMERGENCY ROOM 5399.12 RADIOLOGICAL TECH DIAGNOSTIC IMAGING 6531.6D RADIOLOGICAL TECH DIAGNOSTIC IMAGING 965.25 RECEPT/SECRETARY DIAGNOSTIC IMAGING 2185.27 INTERIM DIRECTOR DIAGNOSTIC IMAGING 6469.30 RADIOLOGY TECH MMC CLINIC - DIAGNOSTIC IMAGIN 6062.19 RADIOLOGICAL TECH DIAGNOSTIC IMAGING 4396.50 RADIOLOGICAL TECH DIAGNOSTIC IMAGING 1316.35 RADIOLOGICAL TECH DIAGNOSTIC IMAGING 5303.50 RADIOLOGICAL TECH DIAGNOSTIC IMAGING 4308.04 RADIOLOGICAL TECH DIAGNOSTIC IMAGING 1449.73 RADIOLOGICAL TECH DIAGNOSTIC IMAGING 3323.33 NUCLEAR MED TECH DIAGNOSTIC IMAGING 240.00 RADIOLOGICAL TECH DIAGNOSTIC IMAGING 3996.00 LVN-CHG-CHART AUDITR PHARMACY 2773,08 REGIST PHARMACY TECH PHARMACY 3236.31 914.55 REG PHARMACY TECH PHARMACY 2727 68 REG PHARMACY TECH PHARMACY 2171.87 RECEPTIONIST MEMORIAL MEDICAL CLINIC MEDICAL ASSISTANT MEMORIAL MEDICAL CLINIC 1791.29 LICENSED VOCATIONAL MEMORIAL MEDICAL CLINIC 3565.47 RECEPTIONIST MEMORIAL MEDICAL CLINIC 1908.80 MEDICAL ASSISTANT MEMORIAL MEDICAL CLINIC 1812.32 INSURANCE CLERK MEMORIAL MEDICAL CLINIC 1875,96 RECEPTIONIST MEMORIAL MEDICAL CLINIC 1493.21 RECEPTIONIST MEMORIAL MEDICAL CLINIC 1744.11 MEMORIAL MEDICAL CLINIC 1778.88 OPERATOR INSURANCE CLERK MEMORIAL MEDICAL CLINIC 2315.93 -37- PAGE 3 RUN DATE: O8/18/16 MEMORIAL MEDICAL CENTER PAGE 4 TIME: 13:32 DEFAULT FORMAT FR044 DB019 PRTitle RECEPTIONIST OUT -PT COORDINATOR MEDICAL ASSISTANT MEDICAL ASSISTANT RECEPTIONIST PHYSICIAN ASSISTANT MEDICAL ASSISTANT RECEPTIONIST MEDICAL ASSISTANT PT ASSISTANT PT ASSISTANT PT TECHNICIAN OCCUPATION THERAPIST TEAM LEAD PTA REGISTERED NURSE PT ASSISTANT PT TECH 1 PT ASSISTANT DIRECTOR PT TECHNICIAN DISCHARGE ANALYST HIM SPECIALIST TRANSCRIPTIONIST HIM SPECIALIST MEDICAL ASSISTANT FOOD SERVICE STAFF RECEPTIONIST -PBX SHIFT SUPERVISOR FOOD SERVICE STAFF FOOD SERVICE STAFF DIETARY DIRECTOR FOOD SERVICE STAFF FOOD SERVICE STAFF FOOD SERVICE STAFF GROUNDSKEEPER-PAINTR SECURITY OFFIER BIO-MED TECHNICIAN BIO-MED TECHNICIAN PLANT OPS SPECIALIST DIRECTOR SECURITY SUPERVISOR ES AIDE FLOOR TECHNICIAN ES AIDE ES AIDE ES AIDE ES AIDE ES AIDE ES AIDE LICENSED VOCAT NURSE ES AIDE REGISTRATION CLERK ES AIDE FLOOR TECHNICIAN IS AIDE PRDeptName MEMORIAL MEDICAL CLINIC SPECIALTY CLINIC MEMORIAL MEDICAL CLINIC MEMORIAL MEDICAL CLINIC MEMORIAL MEDICAL CLINIC MEMORIAL MEDICAL CLINIC MEMORIAL MEDICAL CLINIC MEMORIAL MEDICAL CLINIC MEMORIAL MEDICAL CLINIC PHYSICAL THERAPY PHYSICAL THERAPY PHYSICAL THERAPY PHYSICAL THERAPY PHYSICAL THERAPY OBSTETRICS PHYSICAL THERAPY PHYSICAL THERAPY PHYSICAL THERAPY PHYSICAL THERAPY PHYSICAL THERAPY HEALTH INFORMATION MANAGEMENT HEALTH INFORMATION MANAGEMENT HEALTH INFORMATION 1ANAGEMENT HEALTH INFORMATION MANAGEMENT MEMORIAL MEDICAL CLINIC DIETARY MEMORIAL MEDICAL CLINIC DIETARY DIETARY DIETARY DIETARY DIETARY DIETARY DIETARY MAINTENANCE SECURITY BID MEDICAL ENGINEERING BID MEDICAL ENGINEERING MAINTENANCE MAINTENANCE SECURITY ENVIRONMENTAL SERVICES ENVIRONMENTAL SERVICES ENVIRONMENTAL SERVICES ENVIRONMENTAL SERVICES ENVIRONMENTAL SERVICES ENVIRONMENTAL SERVICES ENVIRONMENTAL SERVICES ENVIRONMENTAL SERVICES MED/SURG ENVIRONMENTAL SERVICES PFS - REGISTRATION ENVIRONMENTAL SERVICES ENVIRONMENTAL SERVICES ENVIRONMENTAL SERVICES PRTotGToSS --------------- 1922.42 1797.98 2212.55 1499.60 1585.69 7538.40 1673.56 102.80 2861.58 3893.40 4820.41 25.70 6361.03 5083.75 5713.18 385.00 43.69 3601.00 8658.11 1766.09 1710.29 1631.95 1742.40 1324.13 2266.30 1685.10 1701.02 3008.55 1932.33 284.38 4288.54 1761.76 1759.21 1483.30 2135.71 799.18 870.00 4485.11 3914.32 5564,20 2192.43 1255.45 1927.57 2202.04 2174.00 1478.34 1669,37 1429.50 1753.98 2180.16 1938.86 2005.87 1912.95 2029.97 1803,52 w RUN DATE: 08/18/16 MEMORIAL MEDICAL CENTER PAGE 5 TIME: 13:32 DEFAULT FORMAT FROM DB019 PRTitle ES AIDE OR AIDE SECURITY OFFICER PLANT OPS SPECIALIST OUTPATIENT THERAPIST FIN CNSLR-COORDINATR SELF PAY CLERK OFFICE MANAGER REGISTRATION CLERK REGISTRATION CLERK CASHIER -SWITCHBOARD INSUR COORDINATOR BILLING CLERK RECEPTIONIST TEAM LEADER REGISTRATION CLERK PFS DIRECTOR REGISTERED NURSE OFFICE COORDINATOR REGISTRATION CLERK CLINICAL IT SPEC. REGISTRATION CLERK SECURITY OFFICER FINANCIAL COUNSELOR DIRECTOR OF HIM MEDICAID COORDINATOR REGISTRATION CLERK MEDICARE COORDINATOR TRAUMA COORDINATOR DIRECTOR REGISTRATION CLERK I.T. DIRECTOR IT SYSTEM ANALYST REGISTERED NURSE CONTROLLER ASSIST ADMINISTRATOR C.F.O. C.E.O. ADMIN ASST TO AA-CNO SPECIAL PROJECTS NOR Grand totals Total lines = 259 PRDeptName ENVIRONMENTAL SERVICES SURGERY SECURITY MAINTENANCE BEHAVIORAL HEALTH INDIGENT CARE PROGRAM PATIENT FINANCIAL SERVICES MEMORIAL MEDICAL CLINIC PATIENT FINANCIAL SERVICES PATIENT FINANCIAL SERVICES PATIENT FINANCIAL SERVICES PATIENT FINANCIAL SERVICES PATIENT FINANCIAL SERVICES MEMORIAL MEDICAL CLINIC PATIENT FINANCIAL SERVICES PFS - REGISTRATION PATIENT FINANCIAL SERVICES EMERGENCY ROOM PHYSICAL THERAPY PFS - REGISTRATION ADMINISTRATION -CLINICAL SERVIC PFS - REGISTRATION SECURITY INDIGENT CARE PROGRAM HEALTH INFORMATION MANAGEMENT PATIENT FINANCIAL SERVICES PFS - REGISTRATION PATIENT FINANCIAL SERVICES EMERGENCY ROOM DIAGNOSTIC IMAGING PFS - REGISTRATION INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY EMERGENCY ROOM ACCOUNTING ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION -CLINICAL SERVIC ADMINISTRATION PRTotGross 1024.64 1926.82 1993.09 3824.00 4000.00 2934.64 1857.13 2559.30 1624.18 1968.40 1642.78 1817.05 1598.78 2184.92 2331.97 2651.49 3300.20 821.88 2126.02 1951.03 926.52 1107.15 1933.43 2313.61 2922.60 1789.50 1787.87 2150.46 4994.03 5268.41 742.39 5819.40 4690.13 4850.24 4621.00 9137.00 10794.22 14350.00 2223.43 3116.19 808545.53 -39- ©iHs Source Totals Report Issued 08/17/16 Calhoun Indigent Health Care Batch Dates 08/01/2016 through 08/01/2016 For Source Group Indigent Health Care For Vendor: All Vendors Source Description Amount Billed 01 Physician Services 13,731.99 01-2 Physician Services- Anesthesia 2,262.00 02 Prescription Drugs 766.00 08 Rural Health Clinics 4,406.00 13 Mmc - Inpatient Hospital 47,338.18 14 Mmc - Hospital Outpatient 35,499.92 15 Mmc - Er Bills 16,001.59 Expenditures 120,557.23 Relmb/Adjustments-551.55 Grand Total 120,005.68 Copays Medicaid Reimbursement Expenses TOTAL: Amount Paid 3,308.06 459.71 766.00 3,723.08 23,195.71 11,877.11 5,260.53 49,141.75 -551.55 48,590.20 <490.00> <6,081.91 > 1,074.00 43,092.29 —40— January February March April May June July August September October November December Monthly Avg Calhoun County Indigent Care Patient Caseload Approved Denied Removed Active Pending 4 5 3 58 6 7 2 8 57 7 2 3 5 51 9 5 2 14 46 8 4 3 3 47 3 6 2 6 55 2 13 2 4 66 3 December 2015 Active 41 19 43 380 6 3 6 54 57 M 5 -41- AWARD BIDS FOR FUEL TO BE DELIVERED FOR THE PERIOD SEPTEMBER 16, 2016 THROUGH OCTOBER 15, 2016' Commissioner Fritsch made a motion to award the low bid from Diebel Oil of $2.03 per gallon for Diesel Fuel and for $2.08 per gallon for Regular Unleaded Gasoline to be delivered for the period September 16, 2016 through October 15, 2016. Commissioner Lyssy seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. Consider and take necessary action to award bid for Bulk Fuel to be Delivered for the period beginning September 16, 2016 and ending October 15, 2016. � _ § g m 2 § $ 9 S g ■ m \ 7 / , \ ! 2 § m - & ! \ ¥ :- \B) §k S \ Q ( } \ § / $7 ■ E@ Q )� n§ § %§ B \)  \\ 0 ,� ,a e § °§ q k \ k \ c�m /� c \ O. m / m m m O � � C � � C � � � � � cc � �j 2m coo CALHOUN COUNTY, TEXAS BID SHEET - BIDDER BIEBEL OIL CO INC SAM DIEBEL PO BOX 71 PORTLAVACA TX 77070 BID ITEM 9FUEL-BULK DELIVERED ( PERIOD FROM: SEPTEMBER 16, 2016 PERIOD TO: OCTOBER 15, 2016 YOU ARE INVITED TO SUBMIT A BID ON THE ABOVE ITEM TO: MICHAEL JPFEIFER, CALHOUN COUNTYJUDGE, 211 SANN ST 3RD FLOOR, ROOM301, PORT LAVACA TX 77979 BIDS SHOULD BE SUBMITTED IN A SEALED ENVELOPE PLAINLY MARKED: SEALED BID- FUEL-BULKDELIVERED -� BIDS ARE DUE AT THE JUDGE'S OFFICE ON OR BEFORE: 10.00 AM, THURSDAY, SEPTEMBER 1, 2016 BIDS WILL BE AWARDED AT THE COMMISSIONERS' COURT MEETING ON: THURSDAY, SEPTEMBER 8, 2016 THE CLOCK IN THE COUNTY JUDGE'S OFFICE IS THE OFFICIAL CLOCK THAT WILL BE USED IN DETERMINING THE TIME THAT A BID IS RECEIVED AND THE TIME THAT BIDS WILL BE OPENED. BIDS RECEIVED AFTER THE OPENING TIME WILL BE RETURNED UNOPENED TO BIDDER. THE COMMISSIONERS' COURT RESERVES THE RIGHT TO WAIVE TECHNICALITIES, REJECT ANY OR ALL BIDS, TO ACCEPT THE BID DEEMED MOST ADVANTAGEOUS TO CALHOUN COUNTY AND TO BE THE SOLE JUDGE IN DETERMINING WHICH BIDS WILL BE MOST ADVANTAGEOUS TO THE COUNTY. THE COUNTY OF CALHOUN, TEXAS IS AN EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER. THE COUNTY DOES NOT DISCRIMINATE ON THE BASIS OF RACE, COLOR, NATIONAL ORIGIN, SEX, RELIGION, AGE OR HANDICAPPED STATUS IN BID ITEM.' FUEL -BULK DELIVERED DEPARTMENT; VARIOUS DELIVERY FOB COUNTY FUEL TANKS DESTINATION VARIOUS sPEcycanoNs: DIESEL FUEL >>DELIVERY must be made within 24 hours after receiving order from the County Department in the quantity ordered. If vendor cannot deliver within 24 hours or refuses to deliver, the County Department will order from the next lowest bidder. >>PRICE Per Gallon MUST INCLUDE all fees and charges including all Taxes/Fees the County is not exempt from (for example: $0.20 State Excise Tax, State Delivery/Environmental Fees, Federal Oil Spill Recovery Fees and Federal LUST Tax) >>FREE FROM WATER AND SUSPENDED MATTER UNIT UNIT PRICE GALLON �' D 3 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ sPEcocAnoNs: REGULAR UNLEADED GASOLINE >>DELIVERY must be made within 24 hours after receiving order from the County Department in the quantity ordered. If vendor cannot deliver within 24 hours or refuses to deliver, the County Department will order from the next lowest bidder. >>PRICE Per Gallon MUST INCLUDE all fees and charges including all Taxes/Fees the County is not exempt from (for example: $0.20 State Excise Tax, State Delivery/Environmental Fees, Federal Oil Spill Recovery Fees and Federal LUST Tax) >>FREE FROM WATER AND SUSPENDED MATTER AND A MINIMUM OCTANE OF 87 (AVERAGE METHOD) UNIT UNIT PRICE GALLON d p d'S DATE Of BR q — 1 _ 1 tD AUTHORIZED SIGNATURE AND PRINT PLEASE LIST ANY EXCEPTIONS TO THE ABOVE SPECIFICATIONS: TELEPHONE NUMBER AWARD PROFESSIONAL AUDIT SERVICES FOR A THREE YEAR PERIOD (FISCAL YEARS 2016 — 2018) WITH AN OPTION TO RENEW FOR ONE YEAR TERMS: Cindy Mueller, County Auditor, made a recommendation that the firm of Armstrong, Vaughn and Associates, P.C. be selected to provide audit services to the County and the Juvenile Board. Commissioner Lyssy made a motion to award Professional Audit Services for a three year period (fiscal years 2016 — 2018) to Armstrong, Vaughn and Associates, P.C. Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. AGENDAITEM Consider and take necessary action to award Professional Audit Services for a three year period (fiscal years 2016-2018) with an option to renew for one year terms. PERCYHALL 202S.A a8 CRISTINATBAYON PORTIAVAC 5TT6T9 BEMICABRERA CANDICEVILLARREAL ERICAPEREL FIRSTASSISTANTAUOITOR TELEPNONE[36115534610 FAI[(36115534614 ASSISTANFAURITORs August 31, 2016 Honorable County Judge and Commissioners Re: Selection of Professional Audit Services Firm Dear Sirs: Responses to the RFQ were first tested for mandatory elements and then evaluated for technical criteria. The estimated cost proposals were compared for the two firms with the highest technical scores. The firm scoring 100% for technical qualifications also proposed costs that are more advantageous to the County. It is my recommendation that Armstrong, Vaughan and Associates, P.C., be selected to provide audit services to the County and Juvenile Board. A budgetary comparison is included for your information. Sincerely, Cindy Weller County Auditor 0 n 0 0 J J C W 1 T UI L N 3 a m s LL a m Y LL C � 2 u O N N N N N N N 6 N m N m N c0 N f0 N (0 R d V T C v C C N N N N _ Y 9 N a a �6F � c LL mJ u10. a cc0. �i C_ o6 � Y C a N = J p C O O N N N a a a i 0 a s n0- c m 0. E 0 u 023 d N N N N N LL LL m a s a a LL v nn a1' a C N c m m m E N 0 N Q> N N N N N N Q m m m n a m m a m a s a `w Y v Y 3 7 C m > N = T w E E E S v Y r m E o C ; ` N E N m j O LL U E m n E a 1 o d O uNi v N m C m V E ii a p u m C d C Y c o g E c u 0 a o C J VYI Q N W d� •- � 'i N M of N \ 10 ® \� aom ©] f =W \ ))/} Za z t 2 \ (u \/ \ ®0 \ka { > §\{ ®!`9 RR E12 k/ - )\ k%% © - - k/\{k /\/ !! - ` + i CL � w )/§k\((m ) _ :§ u & {) |) �§ |/ >0 `m7`aJcrc __.I §«;E & � ] Tabulation of Responses to RFQ Professional Audit Services FY 2016, 2017, 2018 with option to renew for 1-year terms Comparison of Cost Estimates Top Ranked Firms Technical Score 100% 90% Firm Armstrong, Vaughan & Whitley Penn, LLP Associates, PC 2016 Governmental Audit $ 43,500 $ 45,000 Single Audit 6,325 4,500 Conversion to CAFR 3,075 7,500 Juvenile Probation 4,500 4,100 Total Estimate FY 2016 $ 57,400 $ 61,100 2017 Governmental Audit $ 44,800 $ 45,500 Single Audit 6,550 4,500 Conversion to CAFR 3,100 7,500 Juvenile Probation 4,600 4,100 Total Estimate FY 2017 $ 59,050 $ 61,600 2018 Governmental Audit $ 46,200 $ 46,000 Single Audit 6,750 4,500 Conversion to CAFR 3,150 7,500 Juvenile Probation 4,750 4,100 Total Estimate FY 2018 $ 60,850 $ 62,100 Total 3-Year Estimate $ 177,300 $ 184,800 Governmental Audit Single Audit* Conversion to CAFRA Tabulation of Responses to RFQ Professional Audit Services FY 2016, 2017, 2018 with option to renew for 1-year terms :j County Estimate FY 2016 $ Budget Analysis 2017 Budget 43,885 43,885 Armstrong, Vaughan & Associates, PC $ 43,500 6,325 3,075 $ 52,900 Difference $ 385 (6,325) (3,075) $ (9,015) Juvenile Probation $ 4,000 $ 4,500 $ (500) Total Estimate FY 2016 $ 47,885 $ 57,400 $ (9,515) * Single audit may or may not be required and is dependent on total federal and state expenditures. ADecision rests with Commissioners Court. CERTIFICATE OF INTERESTED PARTIES FORM 1295 l of l Complete Nos. 1- 4 and 6 if there are interested parties. OFFICE USE ONLY Complete Nos.1, 2, 3, 5, and 6 if there are no interested parties. CERTIFICATION OF FILING Certificate Number: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. 2016-100236 Armstrong, Vaughan & Associates, P.C. Universal City, TX United States Date Filed: 08116/2016 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. Calhoun County Date Acknowledged: 3 Provide the Identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. Professional Audit Services Professional Audit Services Nature of interest 4 Name of Interested Party City, State, Country (place of business) (check applicable) Controlling I Intermediary 5 Check only if there is NO Interested Party. 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure Is true and correct. �{+p0000A0008 F�VIN EWALD a°� Notary Puhifc s�-�� State of Teas My Comm. Fxp. 08 01-2018 ignature of authorized agent of contracting business entity AFFIX NOTARY STAMP / SEAL ABOVE 1 Jj//�' /�'�// ' ` to / � r { �' t"'", this the �� day of /'TGt C 3 Sworn to/ and subscribed before me, by the said 20�(J�, to certify which, witness my hand /ndand seat of office. Signature of officer administering oath Printed name of officer administering oath Title of officer administering oath v......o... vI n o Forms provided by Texas Ethics Commission www.etnlcs.state.tx.us ..,s,.„ . CERTIFICATE OF INTERESTED PARTIES FORM 1295 loll Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos.1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2016-100236 Date Filed: 08/16/2016 Date Acknowledged: 09/19/2016 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. Armstrong, Vaughan & Associates, P.C. Universal City, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. Calhoun County 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. Professional Audit Services Professional Audit Services 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling I Intermediary 5 Check only if there is NO Interested Party. R 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. Signature of authorized agent of contracting business entity AFFIX NOTARY STAMP / SEAL ABOVE Sworn to and subscribed before me, by the said , this the day of 20 , to certify which, witness my hand and seal of office. Signature of officer administering oath Printed name of officer administering oath Title of officer administering oath Forms provided by Texas Ethics Commission www.etnlcs.state.tx.us < CALHOUN COUNTY Proposal for Annual Audit Services August 18, 2016 Deborah F. Fraser, CPA, CGMA fraser@avacpaxom Armstrong, Vaughan & Associates, P.C. Certified Public Accountants 941 W Byrd Suite 101, Universal City, TX 78148 210-658-6229 PROPOSAL FOR ANNUAL AUDIT SERVICES CALHOUN COUNTY TRANSMITTAL LETTER AND EXECUTIVE SUMMARY.................................................................... I OUR UNDERSTANDING OF YOUR NEEDS...........................................................................................3 INDEPENDENCE........................................................................................................................................3 LICENSETO PRACTICE.................................................................................................I..........................3 INSURANCE................................................................................................................................................3 CURRENT GOVERNMENTAL STAFF AND PROPOSED AUDIT TEAM ...................................•••• 3 FIRMPROFILE............................................................................................................................................4 PROFESSIONAL EDUCATION PROGRAM.............................................................................................4 QUALITYCONTROL.................................................................:.............................................................. 4 RESULTS OF FEDERAL OR STATE DESK REVIEWS..........................................................................4 PARTICIPATION IN GOVERNMENT FINANCE OFFICERS (GFOA) CERTIFICATE OF EXCELLENCE IN FINANCIAL REPORTING ................ .............. •.............. 4 ............................................. SIMILAR ENGAGEMENTS WITH OTHER ENTITIES...........................................................................5 OTHERREQUIREMENTS..........................................................................................................................5 QUALITYREVIEW REPORT....................................................................................................................6 SCOPEAND AUDIT APPROACH.............................................................................................................7 A. Generally Accepted Government Auditing Standards(GAGAS).....................................................7 B. Specific Audit Approach...................................................................................................................7 C. Proposed Detail of Estimated Hours Required to Conduct the Calhoun County Audit .................. I0 D. Proposed Detail of Estimated Hours Required to Conduct the Calhoun County Juvenile Probation Audit........................................................................................................................................................ I 1 BIOGRAPHY.............................................................................................................................................12 REFERENCES............................................................................................................................................ 16 COUNTIES.............................................................................................................................................16 SCHOOLDISTRICTS............................................................................................................................16 MUNICIPALITIES.............. ........................................................................... .............. .... ...................... 16 SPECIAL PURPOSE GOVERNMENTS............................................................................................... Is LIST OF REQUESTED AUDIT SCHEDULES AND DOCUMENTS.....................................................19 RESPONSETO RFQ..................................................................................................................................20 COSTESTIMATE SHEET........................................................................................................................22 INSURANCE CERTIFICATE — APPENDIX A........................................................................................23 Calhoun County • Proposal for Annual Audit Services • December 31, 2016 August 18, 2016 Michael J Pfeifer, County Judge Calhoun County 211 South Ann Street 3rd Floor, Suite 301 Port Lavaca, Texas 77979 Dear Judge Pfeifer: We are pleased to submit a proposal to provide audit services to Calhoun County to include a single audit (if necessary) and preparation of the annual financial report or if desired by the County, the comprehensive annual financial report to be submitted for consideration for the Certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association. Wealsounderstand that the final reports are anticipated to be provided to the Commissioner's Court no later than the 2 meeting in July. We are a women -owned local firm that has identified the government client as a niche to whom we can provide superior services. Toward that end, we have invested a major portion of our resources in providing services to that market through staff training and retaining experienced and qualified personnel. Our success has been a direct result of our focus on quality service. We are aware that many reputable firms offer governmental audit services and, therefore, we strive to provide the highest quality service. We do this by giving attention to each client's individual needs; having our most qualified people (tire partner -in -charge) directly involved in field work; and being sensitive to the disruption of your workplace. We draw your attention to the fact that we have estimated professional hours for the partner in charge to exceed one third of the total budgeted hours (see page 10). The most convincing evidence of the quality of our services is the recurring recommendations from our clients. We urge you to contact any of the representatives listed (see attached client list). The audit partner in charge will be Deborah F. Fraser (biographical data attached). She will be assisted by staff members as listed in the following sections of the proposal. Phil Vaughan will provide second -partner and quality control reviews. Deborah Fraser, CPA, CGMA serves as Director of Nonprofit Services for the Firm, and has twenty one (21) years experience providing audit and accounting services to nonprofit and local government entities, three (3) years as CFO of SER, Jobs for Progress, a subrecipient of Alamo WorkSource, which enabled her to gain knowledge and experience of State, Federal and the Local Workforce Development System and two (2) years as a consultant for a Governmental/Nonprofit accounting software firm. Ms. Fraser has also achieved the Certificate of Educational Achievement for Governmental Auditing administered by the American Institute of Certified Public Accountants. She has personally conducted numerous audits under OMB Circular A-133, Audits of States, Local Governments, and Non-profit Organizations, and served as treasurer on selected nonprofit boards of directors. She has also assisted clients in achieving the Certificate ofAchievernent for Excellence in Financial Reporting awarded by the Government Finance Officers Association. Phil Vaughan CPA, CGMA serves as Director of Governmental Services and has eleven (11) years experience providing audit services to government clients. Phil earned a degree with highest honors from Colorado School of Mines in 2005 and a Master of Science in Accounting from UTSA in December 2008. Phil was also honored as one of the top ten CPA candidates in the State of Texas in May 2009. Phil leads the firm's membership in the Government Audit Quality Center and is a member of the Government Finance Officers Association. 941 west Byrd, Suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com Calhoun County * Proposal for Annual Audit Services • December 31, 2016 Armstrong, Vaughan & Associates, P.C. has been a member of the AICPA Quality Review Program since January 1989. As accountants committed to offering the highest degree of quality service possible, we have taken steps to ensure we are in compliance with AICPA Quality Standards. We perform an annual inspection in-house to ensure compliance, as well as an independent peer review at least every three (3) years. Our most recent review in July 2015 resulted in a peer review rating of "pass" (see copy of report attached At AVA, we are most proud of being selected as one of the "Best Places to Work" by the San Antonio Business Journal in 2007, 2010 and 2014 - 2016. The enclosed proposal is a firm and irrevocable offer to provide financial audits for Calhoun County. This proposal will remain a firm offer for 90 days from the date of this proposal. Deborah F. Fraser is authorized to enter into engagement agreements on behalf of the firm. Again, we appreciate the opportunity to offer services to Calhoun County, and urge you to call us if you should need additional information. You may also visit our website at www.avacoa.com. Sincerely, Deborah F. Fraser, CPA, COMA Shareholder 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.c0m Calhoun County • Proposal for Annual Audit Services • December 31, 2016 OUR UNDERSTANDING OF YOUR NEEDS We will provide the following services: • Annual audit services pursuant to the U.S. General Accounting office's GovernmentAuditing Standards. • Preparation of the annual financial report or the comprehensive annual financial report (CAFR) to be submitted for consideration for the Certificate of Achievement for Excellence in Financial Reporting issued by the Government Finance Officers Association if desired by the County • Provide audit services of federal awards to satisfy uniform guidance requirements, if necessary • Audit services for Calhoun County Juvenile Probation for the year ended August 31, 2016 You will be working with an experienced team that can offer both technical expertise and practical solutions to problems that go beyond basic report preparation. Armstrong, Vaughan & Associates, P.C. seeks to focus on each client's individual needs, with less emphasis on merely "crunching the numbers". We understand the need to have an audit report submitted on a timely basis. We have read the proposal request and understand the final report is to be provided to the Commissioner's Court no later than the 2nd meeting in July with fieldwork scheduled for mid -April or early May. INDEPENDENCE Armstrong, Vaughan & Associates, P.C., as well as all professional and support staff, are independent of Calhoun County. No one in our firm has a relationship with a member of the Commissioner's Court or employee of the County that would impair his/her independence as defined by generally accepted auditing standards and the most recent U.S. General Accounting office's Government Auditing Standards. LICENSE TO PRACTICE Armstrong, Vaughan & Associates., P.C., is licensed to practice in the State of Texas under license number C03094- 001. Additionally, all employees of the firm who are certified public accountants are licensed to practice within the State of Texas. The firm is not under any public or private reprimand by the Texas State Board of Public Accountancy, or any other licensing board INSURANCE Armstrong, Vaughan & Associates, P.C. has errors and omissions insurance with a prudent amount of coverage for the willful or negligent acts, or omissions, of any officers, employees, or agents thereof. See appendix A for coverage. CURRENT GOVERNMENTAL STAFF AND PROPOSED AUDIT TEAM The current Governmental audit staff contains three audit partners, one audit senior manager, three audit seniors and seven audit staff. The proposed audit team for Calhoun County will be made up of our partner, Deborah F. Fraser; two audit seniors (see biographies attached), and one audit staff. Deborah Fraser as well as both audit seniors .will be on site and manage fieldwork. 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com Calhoun County • Proposal for Annual Audit Services - December 31, 2016 —® FIRM PROFILE We are a niche -oriented firm located in San Antonio and are committed to offering a superior level of service. We accomplish this by having our most experienced personnel (the audit partner and audit manager in charge) planning, directing, and conducting substantial portions of the field work. The audit partner is assisted on selected tests and procedures by the audit manager or staff, depending on the complexity and degree of reliance intended to be placed on a specific area of the audit. PROFESSIONAL EDUCATION PROGRAM The personnel assigned to government engagements are required by firm policy to meet or exceed government auditing standards regarding continuing education. Therefore, each licensed, professional staff is required to have a minimum of eighty (80) hours of continuing professional education in accounting and auditing every two years, with twenty-four (24) hours specific to governmental auditing and reporting through a mixture of external and internal education opportunities. It should be noted that our Audit Partners, Nancy L. Vaughan and Deborah Fraser, have successfully completed the Cert fcate of Educational Achievement in the area of governmental auditing. This is the highest level of educational achievement awarded by the AICPA, and includes over sixty (60) hours of intensive study. It will be necessary to utilize Calhoun County personnel to compile information for the audit. We are very sensitive, however, to the disruption of your workplace and will plan the audit in such a way as to minimize the amount of time Calhoun County personnel will contribute. The most assistance will be needed in the areas of capital assets and locating documentation for procedural -type tests. We will provide personnel with a listing of documentation required so as to give sufficient time to prepare any necessary schedules. We have included a sample document request for a typical County with this proposal. QUALITY CONTROL Armstrong, Vaughan & Associates, P.C. has been a member of the AICPA Quality Review Program since January 1989, As accountants committed to offering the highest degree of quality service possible, we have taken steps to ensure we are in compliance with AICPA Quality Standards. We perform an annual inspection in-house to ensure compliance, as well as an independent peer review at least every three (3) years. Our most recent review in July 20I5 resulted in a rating of "pass" (see copy of report attached). In addition, Armstrong, Vaughan & Associates, P.C. is certified under SCTRCA as a "small, women business enterprise". RESULTS OF FEDERAL OR STATE DESK REVIEWS We have not undergone any federal or state desk reviews in the past three years. Fortunately, we have not had any discrepancy action pending or taken in the past three years with state regulatory bodies or professional organizations. PARTICIPATION IN GOVERNMENT FINANCE OFFICERS (GFOA) CERTIFICATE OF EXCELLENCE IN FINANCIAL REPORTING AVA has participated in the certificate program since the I990's. We assisted three clients to apply for the Certificate in 20I4 and all were approved.. In 2015, we assisted four clients in obtaining the Certificate, but responses have not been received at this time. Additionally, we previously assisted Guadalupe County in obtaining the Certificate their first year. 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658.6229 1 AVAcpa.com Calhoun County • Proposal for Annual Audit Services • December 31, 2016 SIMILAR ENGAGEMENTS WITH OTHER ENTITIES The most significant engagements performed in the last five years that are similar to Calhoun County are as follows: Kerr County Annual Audit in accordance with Government Auditing Standards Certificate of Achievenrentfor Excellence in Financial Reporting (2015 Pending) Engagement Partner —Deborah F. Fraser, CPA Total Annual Hours — 340 Contact — Brenda Doss, County Auditor (830) 792-2200 City of Schertz Annual Audit in accordance with GoverninentAuditing Standards Certificate of Achievenrentfor Excellence in Financial Reporting (1006— 2014, 2015 Pending) Engagement Partner — Deborah F. Fraser, CPA Total Annual Hours — 400 Contact — Juan Santoya, Director of Finance (210) 619-1141 City of Cibolo Annual Audit in accordance with Government Auditing Standards Certificate of Achievement for Excellence in Financial Reporting (2014, 2015 Pending) Engagement Partner —Deborah F. Fraser, CPA Total Annual Hours —280 Contact — Anna Miranda, Finance Director (210) 658-9900 City of Selzuin Annual Audit in accordance with Government Auditing Standards and OMB A-133 Certificate of Achievenrentfor Excellence in Financial Reporting (2002 — 2014, 2015 Pending) Engagement Partner —Nancy L. Vaughan, CPA Total Annual Hours — 450 Contact — Susan Caddell, Finance Director (830) 379-3212 City of Balcones HeiEhts Annual Audit in accordance with Government Auditing Standards Certificate of Achievement for Excellence in Financial Reporting (2011— 2013, 2015 Pending) Engagement Partner —Nancy L. Vaughan, CPA Total Annual Hours — 150 Contact —David Harris, City Administrator (210) 735-9148 OTHER REQUIREMENTS it is standard practice of our firm to review selected procedures and internal controls while conducting the audit. We will include any constructive comments in a management report. Should we encounter significant deficiencies in internal controls, we will report the deficiencies in a separate letter to those charged with governance. However, all internal control matters will be discussed with management prior to report drafting, and management may choose to include a response. As requested, a sample report of a Texas County audit performed within the last three years by the firm can be found at http://www.co.kerr.tx.us/auditor/financial. 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com Calhoun County • Proposal for Annual Audit services • December 31, 2016 QUALITY REVIEW REPORT WILF & HENDERSON, PG CERTIFIED PUBLIC ACCOUNTANTS System Review Report May 20, 2015 To the Shareholders of Armstrong, Vaughan & Associates, P.C. and the Peer Review Committee of the Texas Society of CPAs Alrmbrrol Amednn Imdmm of Catifird Nut, Armumanu Alember, or Center for Public Com,my Audit Firma Alember of AICPA CoeernmenM Audit Qnaaty Center We have reviewed the system of quality control for the accounting and auditing practice of Armstrong, Vaughan & Associates, P.C. (the firm) in effect for the year ended January 31, 2015. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aic12a.orR-/p—rsummary As required by the standards, engagements selected for review included engagements performed under Government Auditing Standards. In our opinion, the system of quality control for the accounting and auditing practice of Armstrong, Vaughan & Associates, P. C. in effect for the year ended January 31, 2015, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deffciency(les) or fail. Armstrong, Vaughan & Associates, P.C. has received a peer review rating ofpass. Wilf & Henderson, P. C. 143o Cot],* • Drive • P.O. B. 5197 • T,.,kann, Texts 75505 • 903493.5646 • FAX 903.7924630 • 111 .mil]umwm 941 West Byrd, suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com Calhoun County • Proposal for Annual Audit Services • December 31, 2016 _40 SCOPE AND AUDIT APPROACH A. Generally Accepted Government Auditing Standards (GAGAS) GAGAS are the auditing standards which must be followed in the performance of a governmental audit as set forth by the Comptroller General of the United States. All Generally Accepted Auditing Standards (GARS) are included in GAGAS and the objective of applying those standards remains the same, however, there are certain differences as follows: a. Qualifications of auditors responsible for planning, directing, conducting or reporting on governmental audits require completion of at least 80 hours of continuing professional education every two years, with at least 20 hours in any one year, and at least 24 of the 80 hours should be in subjects directly related to the government environment and to governmental auditing. b. Due professional care is used on all audit engagements but GAGAS indicates that materiality levels and/or thresholds of acceptable risk in government audits may be lower than in similar -type audits in the private sector. This is due to the public accountability of the entity, various legal and regulatory requirements and the visibility and sensitivity of government programs, activities, and functions. c. GAGAS requires auditors to report the status of known, but uncorrected significant or material findings and recommendations from prior audits that effect the current audit objectives. d. GAGAS requires that audit organizations conducting government audits have an appropriate internal quality control system in place and participate in an external quality control review program. e. GAGAS standards on planning specifically states that all levels of government be considered in planning an audit. In many instances audits of the same organizations, programs, activities or functions may be required by federal, state, and local laws, regulations and ordinances. f. GAGAS requites tests be made of compliance with applicable laws and regulations and to design audit steps and procedures that provide reasonable assurance that the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or regulations. g. Internal controls are required to be tested under GAGAS if the auditor plans to use the reliance of controls in performing the audit. Under the Single Audit Act, internal controls must be tested regardless of the reliance placed upon them. An audit under the Single Audit Act is required if federal assistance exceeds $750,000 in any one audit year. B. Specific Audit Approach There are many different ways to approach an audit. The approach we take places a high priority on quality service while maintaining an acceptable level of efficiency. We feel that quality is most often enhanced by planning the audit work flow to provide the least interruption to County personnel. Following is a brief outline of the anticipated audit work. Prior to the end of the fiscal year we begin to analyze internal controls through interviews and walkthrough procedures, compute initial planning materiality through analytical procedures, assess audit risk and determine audit steps to detect and report financial statement misstatements due to error or fraud, if any. Once the above has been accomplished, we modify the audit program based on our assessment of audit need and risk. Other preliminary field work will include: 1. Prepare all confirmations to be mailed on January 1; 2. Review minutes of Commissioner's Court meetings to date; 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com Calhoun County • Proposal for Annual Audit Services • December 31, 2016 VA Wi 3. Review budget amendments to date; 4. Test capital asset and supply inventories; 5. Test bond transactions to date; 6. Verify equity balances; and 7. Identify and test to date federal and state assistance. We use several innovative audit efficiency techniques recognized by the accounting profession in accomplishing our audit. Three of these are described below: a. Focus ou Significant Issues. One means we use measures and places in order of priority areas for audit coverage based on materiality and internal controls. This technique simply assigns values to areas which permit a weighting for prioritizing audit coverage. Thus, either high dollar value, limited internal controls, or a combination of these two factors could cause an area to have high priority for audit coverage. Conversely, low dollar value and strong internal controls tend to lower the audit coverage priority. b. Minimizing Work in Selected Areas. in addition to the prioritizing technique described above, we use computer -generated statistical sampling, third -party confirmations, and other professional auditing techniques to minimize the amount of time we must spend in any one area. c. Consideration of Fraud in a Financial Statement Audit. AU-C Section 240, Consideration of Fraud in a Financial Statement Audit, established standards on the auditor's responsibility to consider the risks of fraud and to design the audit to provide reasonable assurance of detecting fraud that results in the financial statements being materially misstated. The consideration of fraud is not separate, but is integrated into the overall risk assessment process, and is continuous throughout the audit. Our practice is to gain an initial assessment of the risk of material misstatement through the interview process and understanding the design of internal controls. We conduct walk-throughs of selected control processes and interview key personnel to determine if controls are effective. It is also standard practice to request that you send an audit notice to all County personnel at the be. -inning of the process to alert them to the ongoing audit and to provide them with confidential contact information of the partner in charge of the engagement with any concerns about possible misstatement. All responses we receive regarding potential fraud are kept in a professional and confidential manner by the engagement partner, and evaluated for applicability to the audit process. We will share all concerns noted with the appropriate County staff. Additional procedures will be performed during field work and will include steps to test the following: I. Revenues; 2. Payables and receivables; 3. Bank balances; 4. Investments, and 5. Other balance sheet accounts not already tested. 6. Additional federal and state compliance testing. We will request assistance of your personnel in supplying us with various schedules and account information and documents to facilitate our work. We will provide a list of anticipated documentation prior to February I as requested in the request for proposals. The audit methodology for multi -year engagements is the same as described in the preceding sections. However, we re -assess the need for audit coverage on particular areas based on knowledge gained through previous audits. Areas given low priority for audit risk one year may be tested in more detail in subsequent years. 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210.658-6229 1 AVAcpa.com Calhoun County • Proposal for Annual Audit Services • December 31, 2016 We use the CCH Knowledge Coach to provide an overall audit plan however the program is adjusted as necessary to fit the specific needs of Calhoun County. Assigned staff and expected number of hours for each proposed segment of the engagement, as well as expected time frame, is included on the following page. 941 West Byrd, suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com Calhoun County • Proposal for Annual Audit Services • December 31, 2016 C. Proposed Detail of Estimated Hours Required to Conduct the Calhoun County Audit I Planning andtaaK Assesswcul. Financial Statement Audit: Analytical procedures; Interviews and walk-throughs of internal controls; Determination of major funds and any necessary audit program modifications; Determining audit steps Compliance Andil: Analytical procedures; Determining major programs; Assessing risk; Interviews of program Managers orMajor Programs 2 Audit Fieldwork Financial Statement Audit: Review of Minutes, Contracts, Budgets and Amendments Cash and Investments Revenues and Receivables Expenditures and Accounts Payable - Goods & Services Expenditures and Accruals - Payroll Testing Capital Assets and Depreciation Calculations Inventory Long-term Debt mid Related Accruals Fund Equities/Net Assets Compliance Audit: Federal Grants/ Single Audit Compliance 3 Reporting and Required Communications Review report for accuracy and agree to audit work to date: Review disclosures for completeness and accuracy; Review Other Required Supplemental Information; Review Annual Report for completeness; Resolve any differences or proposed adjusimants Draft Required communications and exit conference with management and Commissioners' Court Convert Report to CAFR, if desired Prepare Data Collection Form for electronic submission Quality Control Review (2nd Partner) Total Audit Hours Administrative Support at firm office Total Estimate of Professional }Toms Governmental Audit Partner Hours (Fraser and P. Vaughan) Audit Seniors (M. Peralta, B. Tran) Staff hours Admin. Staff Hours Single Audit Partner Hours (Fraser) Audit Seniors (M. Peralta, B. Tran) Staff Hours Change to CA—FR Partner Hours (Fraser) Nov 20 24 16 Nov 12 - Apr 12 8 Apr 2 24 Apr 2 32 8 24 Nov/Apr 2 - 8 Apr 2 24 Apr 2 20 - 8 Nov 1 Apr 1 12 Apr 4 Nov/Apr 6 17 8 May/Jun 24 " Jun/Jul 20 15 Jun 4 Jun 8 I37 161 72 370 5 375 104 $190-$205 $ 21,275 144 $115 16,560 64 $85 5,440 5 $45 225 317 43,500 18 $205 $ 3,690 17 $115 1,955 8 $85 680 43 15 $205 $ 3,075 ----r- 31075 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com 10 Calhoun County • Proposal for Annual Audit Services • December 31, 2016 0 D. Proposed Detail of Estimated Hours Required to Conduct the Calhoun County Juvenile Probation Audit Audit Area Time Frame Estimated Hours I Plannine and Risk Assessment: Partner Senior Staff Analytical procedures; Interviews and walk-throughs of internal controls; Determination of major funds and any necessary audit program modifications; Determining audit steps; Understanding - 6 of Internal Controls Nov 1 2 Audit Fieldwork _ 4 Revenues Nov 1 I Expenditures 5res -Goods &Services 5 Expenditures - Payroll Nov 1 3 Reuortine and Required Communications Review report for accuracy and agree to audit work to date; Review disclosures for completeness and accuracy; Resolve any differences 8 Dec 2 or proposed adjustments Draft Required communications and exit conference with management & Commissioners' Court Dec 3 - Quality Control Review (2nd Partner) Dec I 10 28 Total Audit Hours 38 Administrative Support at firm office 2 Total Estimate of Professional Hours 40 SUMMARY OF HOURS Partner Hours (Fraser and P. Vaughan) Staff Hours Admin. Staff Hours 10 $190 - $205 $ 2,030 28 $85 $ 2,380 2 $45 $ 90 40 $ 4,500 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658.6229 1 AVAcpa.com 19 Calhoun County • Proposal for Annual Audit Services • December 31, 2016 _ m BIOGRAPHY — Deboriah F. Fraser, CPA, CGMA Andil Partner • Certified Public Accountant • American Institute of Certified Public Accountants • Texas Society of Certified Public Accountants • San Antonio Chapter of the Texas Society of Certified Public Accountants • Certificate of Educational Achievement for Goverrunental Auditing Awarded by the American Institute of CPAs • Chartered Global Management Accountant • Treasurer of San Antonio Non Profit Council EXPERIENCE Includes hvenly-one (21) years of providing auditing and accounting services for various entities. Experienceincludes non-profit entities, cities and school districts. In addition, she has experience as a CFO of a nonptofit organization with $19 million in state and federal grant revenues. Deborah also has experience as a consultant and trainer for KIP,governmental/nonprofit accounting software program. Deborah has also taught an Accounting Principles II class for several years at a local community college. Deborah has managed numerous governmental, nonprofit and homeowner association audits. EDUCATION University of Wyoming, 1985, B.S. COMMUNITY SERVICE Board member, (Finance Committee Chairperson) Hcaly-Murphy 2003-2004 (A nonprofit school for disadvantaged yoff h) Secretary, Parks and Recreation Commission, City of Universal City, 1999A2004 Treasurer, Tri County Baseball,1997-1998 Coach, Tri-County Baseball League (1990-1997) (Youth Baseball League) Coach, GRAYS& 1989 -1996 United Way Stewardship Review Committee — 2011-2014 UTSA Public Affairs — 2010 — 2011 CONTINUING PROFESSIONAL EDUCATION IN GOVERNMENTAL ACCOUNTING/AUDITING past two years) YBI I I l Single Audit Primer Final Exam Module 1 October 2014 4 Non -Profits: Operations and Accounting -An Overview from the Trenches October 2014 12 Interviewing Skills for Governmental Auditors October 2014 4 Fair Value Accounting October 2014 November 2014 1 4 Annual Governmental GAAP Update November 2014 6 Texas Municipal Retirement System May 2015 4 TX2111 Professional Ethics R Updates for Texas CPAs 10 GAS➢ Statement N0. 684n Depth Government Pension Accounting &. Auditing June 20I5 Implementation of GASB 58 June 2015 8 4 Performing Efficient Single Audits July 2015 8 GAAS: A Comprehensive Review for Auditors July 2015 Government and Not -For -Profit Annual Update August 2015 8 Performing Single Audits 2015 & Beyond October 2015 8 Mastering Audit Efficiency July 2016 4 4 Governmental Audit Update July20t6 89 Total Hours 941 West Byrd, Suite 101, Universal City, Texas78148 1 210-65B-6229 l AVAcpa.com 42 Calhoun county • Proposal for Annual Audit Services • December 31, 2016 BIOGRAPHY — Phil S. Vaughan, CPA, CGMA Audil Pai lne- • Certified Public Accountant • American Institute of Certified Public Accountants • Texas Society of Certified Public Accountants • San Antonio Chapter of the Texas Society orCertitied Public Accountants • Awarded one of the Top Ten CPA Candidates in May 2009 • Government Finance Officers Association • Chartered Global Management Accountant • Texas Charter School Association • Government Audit Quality Center • Texas Association of School Business Officials EXPERIENCE includes eleven (11) years of providing public accounting, tax and auditing services, specializing in municipalities, school districts, charter schools, special purpose governments and homeowners associations.. EDUCATION University of Texas at San Antonio, 2008, M.S. in Accounting. Colorado School of Mines, 2005, B.S. in Computer Science. CONTINUING PROFESSIONAL EDUCATION IN GOVCRNMENTAL ACCOUNTING/AUDITING (last two years) Ethics and Professional Conduct for Texas CPAs August2014 4 GAQC 2015 Annual Update Webcast April 2015 2015 16 2June 2015 Texas School District Accounting & Auditing Conference 4 introduction to School District July 2015 `i School District Update July 2015 July 2015 4 Single Audit Testing July 4 GASB 68 fit Practice t 20 August2015 Implementing GASB Statement #68 April 2 2 GAQC 2016 Annual Update 016 May 201 OM' Uniform Guidance and Yellow Book Requirements B June 2016 6 2016 Texas School District Accounting & Auditing Conference July 2016 4 Mastering Audit Efficiency July 2016 Governmental Audit Update 6 9G Total Hours 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658.6229 1 AVAcpa.com 13 Calhoun County - Proposal for Annual Audit Services . December 31, 2016 _40 BIOG"PHY - TEAM STAFF MEMBERS Michael Peralta, CPA Senior Audit Staff • Certified Public Accountant • Texas Society of Cerlified Public Accountants • San Antonio Chapter of the Texas Society of Certified Public Accountants EXPERIENCE Includes four (4) years of accounting and auditing services for various entities, Audit experience includes non-profit entities, special-purpose local governments, and homeowner associations, EDUCATION University of Texas at San Antonio, 2012, Masters In Accounting University of Texas at San Antonio, 2010, Bachelors in Business Administration with a concentration in accounting CONTINUING PROFESSIONAL EDUCATION IN GOVERNMENTAL ACCOUNTINGIAUDITING (last two years) Companion to PPC's Guide to Audits of Nonprofit Organizations Texas: Accountants Ethics in Texas Performing Efficient Single Audits Auditing Revenues, Debt and Compliance for School Districts Introduction to Auditing Texas Schools Governmental Accounting & Financial Reporting 3-Day Seminar Implementation of GASB 68 Leading From Strengths & Polishing My Personal Productivity Adapting to Others via DISC/The "Getting Things Done ©" Workflow Model Communication Styles & Getting Things Done Perfornng Single Audits in 2015 and Beyond Situational Leadership Part I Professional issues Update Governmental Audit Update Total Hours December2014 February 2015 July 2015 July 2015 July 2015 July 2015 July 2015 July 2015 August2015 September 2015 October 2015 October 2015 January2016 July 2016 8 4 4 4 4 24 4 5 6 4 8 5 1 4 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com 14 Calhoun County -Proposal for Annual Audit services - December 31, 2016 BIOGRAPHY - Brandon Tran Senior Audit Staff MERII;NCE: Includes two (2) years of accounting and auditing services for various entities. Audit experience includes non-profit entities, special-purpose and local governments, and homeowner associations. EDUCATION: University of Texas at San Antonio, 2014, Bachelors in Business Administration with a concentration in accounting University of Texas at San Antonio, 2015, Masters of Accountancy Passed 2 Parts of the CPA Exam CONTINUING PROFESSIONAL EDUCATION IN GOVERNMENTAL ACCOUNTINGlAUDITING (last two years) Introduction to Governmental Accounting July 2015 July 2015 Introduction to School District July 2015 School District Update July 2015 Single Audit Testing July 201 GASB 68In Practice July 2016 Mastering Audit Efficiency Total Hours 4 24 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658-6229 i AVAcpa.com 15 2. 3. 4. 2. 3. 4. 1 2. 3. 4. Calhoun County • Proposal for Annual Audit Services 0 December 31, 2016 REFERENCES COUNTIES Sandra Poppe Atascosa County County Auditor 2001 -2003 830-769-3620 Bill Herzog Hays County County Auditor 1993 - 512-393-2248 Kris Klein, CPA Guadalupe County County Auditor 1984 — 2010 830-303-8855 Brenda Doss, CPA Kerr County County Auditor 2015 - Present 830-792-2200 SCHOOL DISTRICTS Contacts Alamo Heights Independent School District Mike Hagar Assistant Superintendent for 2002 — Present 210-822-3374 Business/Finance Boeme Independent School District As Grill Assistant Superintendent for 1988 — Present Business and Personnel 830-357-2028 La Vemia Independent School District Leroy Vidales Chief Financial Officer 2012 - Present 830.779-6600 Pleasanton Independent School District Scott Stephens Chief Financial Officer 2013 -Present 830-569-1200 MUNICIPALITIES Floyd Messick City of Balcones Heights Finance Officer 1989 — Present 210-735-9148 Ginger Hofstetter City ofBulverde Director of Finance 2011 - Present 830-980-8832 Suzanne Riley City of Castle Hills Finance Director 2009 — Present 210-342-2341 Marie Gelles City of Castroville City Administrator 2012 -Present 830-931-4070 941 West Byrd, Suite 101, Universal City, Texas 78148 210-658-6229 AVAcpa.com 16 Calhoun County • Proposal for Annual Audit Services • December 31, 2016 5_ City of China Grove Susan Conaway City Administrator 2005 —Present 210-648-4923 Anna Miranda 6, City of Cibolo Finance Director 1988-2008, 2014 - Present 210-658-9900 Le Ann Piatt 7. City of Converse Finance Director 2010 - 2014 970-65A-5356 8. PI 10. 12. 13. 14, is. 16. 17 18. 19. City of Fair Oaks Ranch Linda Coones Finance Officer 2004 — Present 210-698-0900 City of Garden Ridge Nancy Cain City Administrator 1995 — Present 210-651-6632 Susan Wootton City ofHelotes City Treasurer 2002 — Present 210-695-8877 Doug Roderick City of Hondo Finance Director 2015 —Present 830-426-3378 Tina Ynfante City of Kirby Finance Director 1985—Present 210-661-3198 Yvonne Smith Griffin City of La Vernia City Administrator 2011 - Present 830-779-4541 City of Olmos Park Celia De Leon City Manager 2007 — Present 210-824-3281 Esmeralda Castro City of Runge City Secretary 2012 —Present 830-239-4121 Barbara Pawetek ' City of Saint Hedwig City Secretary 2009 — Present 210-667-9568 City of Santa Clara Jeff Hunt Mayor 2009 — Present 830-914-4443 Juan Santoya City of Schertz 1979 — 1989; 2000 — 2002 and 2008 —Present Finance Director 210-619-1141 Doug Faseler, City Manager City of Seguin Susan Cadell, Director of Finance 1997-1999; 2002 -Present 830-401-2450 _ 941 West Byrd, suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com 97 Calhoun County • Proposal for Annual Audit Services • December 31, 2016 20. City of Selma Johnny Casias 1984 — Present City Administrator 210-651-6661 21. City of Terrell Hills Columbus States 2005 —Present City Manager 210-824-7401 22. Town of Hollywood Park Janice Alamia 2011 -Present City Secretary 210-494-9567 SPECIAL PURPOSE GOVERNMENTS 1. Caldwell County Adult Probation Charles Torres 2011 -Present Finance Director 512-398-4307 2. Caldwell County Juvenile Probation Larry Roberson 2011 -Present County Auditor 512-398-5400 3. Canyon Regional Water Authority Joan Wilkinson 2010 — Present Finance Manager 830-609-0543 4. Cibole Valley Local Government Corporation Alan Coekerell 2012 - Present Executive Director 830-401-2409 5. Guadalupe County Appraisal District Jamie Osborne 1989 — Present Chief Appraiser 830-372-2871 6. Guadalupe County Adult Probation Kris Klein, CPA 2000-2015 County Auditor 830-303-8855 7. Guadalupe County Juvenile Probation Kris Klein, CPA 2000 — 2015 County Auditor 830-303-8855 8. Guadalupe County Groundwater Conservation District Ron Naumann 2005 —Present President 830-379-5969 9. Schertz/Seguin Local Government Corporation Alan Cockerel 2002—Present General Manager 830-401-2409 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210.658-6229 1 AVAcpa.com 18 Calhoun County • Proposal for Annual Audit Services - December 31, 2016 —® LIST OF REQUESTED AUDIT SCHEDULES AND DOCUMENTS Our proposal anticipates a working relationship with your staff. Following is a list of schedules to be prepared by Calhoun County staff prior to the fieldwork phase of the audit: Audit of Countv 1. Bank reconciliations and copies of statements of all cash and investment accounts as of December 31, 2016. 2. Schedule of collateral pledged by depository banks to insure deposits. 3. Copies of Investment Reports, investment policy and evidence of compliance with continuing education for all investment officers. 4. Listings of the following at December 31, 2016: a. Outstanding commitments (ie: construction in progress or unfulfilled contracts)., b. Operating leases c. Attorneys consulted during 2016 5. The following reports from the accounting software as of December 31, 2016: a. Working trial balance b. Accounts payable c. Cross fund report showing interfund balances 6. The following items related to capital assets: a. Reconciliation of capital outlay to current year additions b. Listing of dispositions with proceeds received c. Land Asset Schedule Supplemental report d. Equipment and Buildings Depreciation Schedule Supplemental reports e. Depreciation Asset Schedule by Department f. County Road GASB Report including methodology for fringe rate g. Allocation of Road and Bridge salaries to other County projects, if any 7. Copies of bond covenants and closing documents for any new issues in 2016. 8. Copy of Original Budget and any amendments approved by the Commissioner's Court for fiscal year 2016. 9. Reconciliation of all inventory accounts to detailed inventory listings. 10. Worksheets calculating the following accruals as of December 31, 2016: a. estimated court receivables b. prepaid expenditures c. accrued wages by department d. seemed compensated absences by department 11. Copies of monthly TCDRS contribution statements for fiscal year 2016. Core Values: Ouegrity & Honesty/F eellenf Customer Servtce Accurate andEffucient Superior%nmvledge Supportive of Staff Fandly & Cmrummity oriented 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com 19 2. 7 Calhoun County - Proposal for Annual Audit Services - December 31, 2016 CALHOUN COUNTY RESPONSE TO RFQ PROFESSIONAL AUDIT SERVICES FIRM NAME: Armstrong. Vaughan & Associates. P.C. BUSINESS ADDRESS: Universal City, TX 78I48 TELEPHONE, WIT14 AREA CODE: FAX, WITH AREA CODE: E-MAIL ADDRESS: INTERNET URL ADDRESS: 4. TYPE OF ORGANIZATION (CHECK ONE) a. SOLE PROPRIOETORSFIIP j b. PARTNERSHIP C. CORPORATION c d. JOINT VENTURE 5, PRINCIPALS OF FIRM: DEGREE OR NAME CERTIFICATE a. NancyL Vaughan CPA b. Deborah F. Fraser CPA C. Phil S. Vaughan CPA INSTITUTION TSBPA TSBPA TSBPA 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com Y0 Calhoun County • proposal for Annual Audit Services • December 31, 2016 SUBMITTED BY: SIGNATURE: DATE: IIG�t4- ^ cPn. Ct�mr� r n August 16.2016' PRINTED NAME: Deborah F. Fraser TITLE: Shareholder FIRM NAME:: Armstrong, Vaughan & Associates. P.C. PRIVACY NOTIFICATION The principal .purpose for requesting the information on this form is for use in the selection process for professionals approved by the County. rurnishing all information requested on this form is mandatory.. Failure to provide such information will delay or may even ,prevent completion of the action for which the form is being filled out. information on this form will be used by the County for Its evaluation in the consideration of approval of professionals. if you consider any portion of your response to this RFQ to be privileged or confidential by statute or judicial decision, including trade secrets and commercial or financial information, clearly identify those portions. Responses to this RFQ will beopened in a manner that avoids disclosure of the contents to competing offerors and. keeps the .Request for Qualifications secret during negotlations, All responses are open for public inspection after the. contract is awarded, but trade secrets and confidential information in the Request for Qualitications:are not open for inspection. The County will honor your notations of trade secrets and confidential information and, decline to release such information initially, but please note that the final determination of whether aparticular portion of your proposal is in fact atrade secret or commercial or financial information that may be withhold from public inspection will be made by the Texas Attorney General or a court of competent jurisdiction. In the event a public information request is received for a portion of your proposal that you have marked as being confidential Information, you will be notified of such :request and you will be required to justify your legal position in writing to the Texas Attorney General pursuant to Section 552,305 of the Government Code. In the event that it is determined by opinion of the Texas Attorney General or a court of competent jurisdiction that such information is in fact not privileged and confidential under Section 552.110 of the Government Code and .Section 262,049 of the Local Government Code,then such information will be made available to the requester. Marking your entire proposal CONFH)FNTi4, /PROP1ETARY:is not in conformance with the Texas Open Records Act, 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210.658.6229 1 AVAcpa,com 21 Calhoun County • Proposal for Annual Audit Services • December 31, 2016 0 COST ESTIMATE SHEET FIRM NAME: Armstrong, Vaughan & Associates P.C. CALHOUN COUNTY AUDIT Maximum Fee: Governmental Audit Single Audit CAFR Fiscal Year Ending December 31, 2016 $43 500 $6.325 $3.075 Fiscal Year Ending December 31, 2017 $44 800 $6.550 $3.100 Fiscal Year Ending December 31, 2018 $46.200 $6.750 3A50 Indicate the methods that would be used to calculate costs for future optional terms. Include detail of price including number of staff and staff hours that will be committed to the audit. Fees for audit services including future optional terms are determined at the hourly fee shorn below: CALHOUN COUNTY JUVENILE PROBATION AUDIT Maximum Fee Governmental Audit Fiscal Year Ending August 31, 2016 $4 500 Fiscal Year Ending August 31, 2017 $4.600 Fiscal Year Ending August 31, 2018 $4,750 indicate the methods that would be used to calculate costs for future optional terms. Include detail of price including number of staff and staff hours that will be committed to the audit. Fees for audit services including future optional terms are determined at the hourly fee shown below: 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658.6229 1 AVAcpa.com 22 Calhoun County • Proposal for Annual Audit Services - December 31, 2016 INSURANCE CERTIFICATE —APPENDIX A CAMICO CAMICO MUTUAL INSURANCE COMPANY DECLARATIONS ACCOUNTANTS PRORESSIONAL LIABILITY INSURANCE POLICY Policy Number: TXL01365-I3 EReclive Date: 11/15/2015 at 12:01A.M. Standard time at the nddress shown below Expimlion Date: 11/15/2016 at 12:01A.M. Standard time at tbeaddresssboxn tMlmw Relmaclive Date: 09/01/1984 Item I -Named Insured: Armstrong, Vaughan & Associates, PC Item 2 - Business Address: 941 West Byrd, Suite 101 Universal City, TX 78148 Item 3- Limits ofLiabilily: S11000000 Per Clain $1,000,000 Policy Aggregate Item 4-Deductibles: $10,000 Per Claim Deductible Item 5-Total Premium: $17,219 Item 6 -The policy consists ofthis Declarations page, and the following policy forms and endorsements PL-1000-A 07/t4 Accountants Professional Liability Insurance Policy PL-2036-A(TX) 07114 State Endorsement - Texas PL-2053-A(TX) 05115 Texas Notice P41015-A 07A4 Separate Defense Limit PL-1016-A 07/14 Special Exclusion Endorsement PL-1045-A 07/14 Cyber CPA Endorsement PL-I049-A 07/14 Privacy and Client Network Damage Endorsement PLEASE READ THESE DECLARATIONS, THE POLICY AND ENDORSEMENTS CAREFULLY. PL-1001-A CAlh11C0 Mutual ^`Insurance Company ""W"�" Authorized Representative (rev. 06/13) 941 West Byrd, Suite 101, Universal City, Texas 78148 1 210-658-6229 1 AVAcpa.com 23 CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 oft Complete Nos. 1.4 and 6 if there are Interested parties. Complete Nos.1, 2, 3, 5, and 6 ff there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2016-100236 1 .Name of business entity filing form, and the city, state and country of the business entity's place of business. Armstrong, Vaughan & Associates, P.G. Universal city, TX United States 2 Name of governmental entity or state agency that Is a party to the contract for which the form Tis being filed, Calhoun County Date Filed: 08/16/2016 Date Acknowledged: 3 Provide the identification number used by the governmental entity or state agency to track or Identify the contract, and provide a description of the services, goods, or other property to he provided under the contract. Professional Audit Services Professional Audit services Nature of interest 4 Name of Interested Party city, state, country (place of business) (check applicable) Controlling Intermediary 5 Check only if there is NO Interested Party. n 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct, =KEV2018 ignature of authorized agent of contracting business entity AFFIX NOTARY STAMP 1 SEAL ABOVE 1 rt Sworn to and. subscribed before me, by the said 7 Z �. r'"S Gid 1-1 this thef _day of 20�D_, to certify which, witness my hand and seal of office. / Signature administering oath Printed name of officer administering oath Title of officer administering. oath ..._ _._._... .._ vdreinn\H n.975 Forms provided by Texas Ethics Commission W Ww.e[mcss[aie,u .pa AUDIT PROPOSAL FOR CALHOUN COUNTY, TEXAS AUGUST 15, 2016 SUBMITTED BY: GOLDMAN, HUNT & NOTZ, L.L.P. CERTIFIED PUBLIC ACCOUNTANTS 5606 NORTH NAVARRO STREET, SUITE 309 VICTORIA, TEXAS 77904-1770 361-573-2471 CONTACT PERSON: DONALD G. GOLDMAN, CPA TABLE OF CONTENTS Paqe 1-2 Letter of Intent Mandatory Elements and Statements 1. Statement of Firm's Independence 3 2. Statement of Firm's License to Practice in Texas 3 3. Statement of Firm's Availability to Conduct Audit 3 4. Statement of Firm's Errors and Omissions Insurance 3 5. Firm's Professional Education Program 3 6. Certificate of Interested Parties Form 1295 4 Technical Qualifications 1. Summary of the Proposer's Qualifications 5 6-10 2. Personnel Profiles 3, Similar Engagements with Other Government Entities 11 - 12 Price Proposal Information 1. Schedule of Professional Fees and Expenses 13 Appendix A - Authorized Personnel 14 Appendix B - Opinion on the Review of Quality Control System 15 Appendix C - Personnel CPE Course Detail 16 Appendix D - Summary Proposal 17-22 23 Certification of Proposer Response to Request for Qualifications 24 - 26 Gofman, ?Cunt & Notz, L.L.P. Certified Pubic Accountants DONALD G. GOLDMAN, CPA D. DALE HUNT, CPA JAMIE K. NOTZ, CPA, CVA' *CERTIFIED VALUATION ANALYST August 15, 2016 Calhoun County, Texas Attn: Honorable Michael J. Pfeifer 211 South Ann Street P Floor, Suite 301 Port Lavaca, TX 77979 Dear Judge Pfeifer: MEMBERS OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS LETTER OF INTENT KEITH H. COX, CPA, CISA SYLVIA H. GORIS, CPA SUE N. GUTHRIE, CPA STEPHANIE S. KOCH, CPA 'CERTIFIED INFORMATION SYSTEMS AUDITOR This letter is written to confirm our understanding of the work to be done for Calhoun County, Texas should we be selected to perform the audit of the general purpose financial statements for the years ended December 31, 2016, 2017, and 2018. Our audit will be conducted In accordance with auditing standards generally accepted in the United States of America. We will include tests of the accounting records of Calhoun County, Texas and other procedures we consider necessary to enable us to express an unmodified opinion that the financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. If our opinion is other than unmodified, we will fully discuss the reasons with you in advance. Our audit will include the performance of tests of the accounting records and such other auditing procedures as necessary to the extent necessary for our firm to render an opinion as to the fair presentation of Calhoun County, Texas' financial statements. Our opinion rendered in the audit report shall state that such auditing procedures were performed. We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application of appropriate accounting principles, and the safeguarding of assets. Upon approval of our proposal, we will request a preliminary conference with the management of Calhoun County, Texas to discuss the overall strategy and timing of the engagement. We will prepare and review with management a detail listing of information and client prepared schedules that will be required for the performance of our audit procedures. The assembly of this information and preparation of specified schedules and reports will need to be completed prior to the actual start of our fieldwork. This will allow for the timely and efficient performance of the engagement and is the basis on which our fee is estimated. TELEPHONE (361) 573-2471 5606 NORTH NAVARRO STREET, SUITE 309 EMAIL: ghn@tlsd.net FACSIMILE (361) 575-0444 VICTORIA, TEXAS 77904-1770 The estimated hours, hourly rates, and fees are located on pages 17 through 22. The names of the persons who are authorized to make presentations for our firm including title, address, and telephone numbers are included in Appendix A. Thank you for giving us an opportunity to work with you. We are available to discuss with you in detail any aspect of our proposal and to provide any additional information which you deem necessary to aid in your evaluation. Sincerely, onBald "��. 444- onald G. Goldman, CPA Partner CALHOUN COUNTY, TEXAS AUDIT PROPOSAL MANDATORY ELEMENTS AND STATEMENTS 1. No relationships exist between Calhoun County, Texas or its management and members of our firm which might impair our firm's independence or violate any standards of the GAO Standards for Audit of Governmental Organizations, Programs. Activities and Functions 1994 revision, published by the U.S. General Accounting Office. 2. Goldman, Hunt & Notz, L.L.P. is licensed to practice public accountancy in the state of Texas. Our Texas State Board of Public Accountancy License Number is P04635-001 (V 05460). 3. We plan for Calhoun County, Texas' records to be in auditable condition, including the yearend closing of the books and assembly of all required information and schedules referred to above, and begin fieldwork on or about April 24, 2017. Once we begin fieldwork, we prefer to continue on the job until all fieldwork is completed, assuming it is convenient for the County personnel and assuming records are available. If all goes as it should, we anticipate delivering your audit report at the Commissioners' Court scheduled meeting on the 2nd or 416 Thursday in July, 2017. 4. Our firm maintains a prudent amount of errors and omissions insurance. 5. All personnel are current on their CPE requirements. Courses include ACPEN's Annual Governmental Accounting and Auditing Update, as well as various other governmental continuing education courses. Appendix C provides a detailed schedule of personnel's governmental and additional CPE courses. 6. See next page for the completed Certificate of Interested Parties Form 1295. CERTIFICATE OF INTERESTED PARTIES FORM 1295 Loft OFFICE USE ONLY Completa Nos. 1- 4 and 6 if there are interested parles. Nos.1, 2,3, 5,and 6 if there are no interested parties. CERTIFICATION OF FILING Complete Y Name of business entityliiing form, and the city, state and country of the business entity's place Certificate Number: of business. 2016-99632 Goldman, Hunt & Notz, LLP Data piled: Victoria, TX United States 08/1512016 2 Name ofgovernmental entity or state agency that Is a party to the contract for which the form is being filed. Date Acknowledged: Calhoun County, Texas Provide the identification number used by the governmental entity or state agency to track or Identify the contract, and provide a 3 description of the services, goods, or other property to be provided under the contract. 01 Annual Audited financial Statements Nature of interest 4 Name of Interested Party city, State, Country (place of business)rControlling pplicable). Intermediary Goldman, Donald Victoria, TX United States Hunt, D. Dale Victoria, TX United States Notz, Jamie K. Victoria, TX United States 5 Check only if there is NO Interested Party. ❑ 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. AIIorIOAI.wILuar�s / * NOTABYPU6LIC # slate of7mws Comm• Ev,07ffln018 Signature of authorized.agent of contracbng business entity - AFFIX NOTARY STAMP/SEAL ABOVE DOna16 G. GOId h' zn the .I.r� day of U S Sworn to and subseribed before me, by the said ..This Zoj (a to certify which, witness my hand and seal of office. L4 RI -of icla L V�li ll�am�� t lo�aru PuWI'0 Si g nature of officer administering oath Printed name of officer administering oath Title of officer dmmistering oath _ _ .._.-.. _.u:_.. _a.....,,, ••� Versionb1.0.277 Forms Provided Dy Texas units "mmigsiun CALHOUN COUNTY, TEXAS AUDIT PROPOSAL SUMMARY OF THE PROPOSER'S QUALIFICATIONS I. Goldman, Hunt & Notz, L.L.P. is a local firm of Certified Public Accountants, with our office located at 5606 North Navarro Street, Suite 309, Victoria, Texas. Our firm offers a full range of client services including preparation of compiled, reviewed, and audited financial statements, financial statement analysis, computerized and manual accounting systems, income tax and estate tax planning and preparation, management advisory services, and certified valuation analysis. The strengths of our firm are based on our firm philosophies. First and foremost, we believe in maintaining good communication with our clients during, the audit process and throughout the year. We understand and respect the on -going workload of your staff, and we strive to conduct audit engagements with minimal interruption. We provide trained personnel to perform audit tasks. We believe in hands-on partner involvement, not just supervision, and the partners are always accessible to the Commissioners' Court. We believe in doing whatever we have to do to get the job done correctly and timely. The firm has completed a review of the system of quality control for our accounting and auditing practice and was issued an unqualified opinion on May 4, 2015. A copy of the opinion is included in Appendix B. Our firm has three partners, eight staff accountants, and five support staff. Seven of our accountants are licensed certified public accountants. 2. If we are the successful proposer, the audit partner for your engagement will be Donald G. Goldman, CPA. A profile for each individual who is available to participate in this engagement is presented in the Personnel Profiles section. 3. The Similar Engagements with Other Government Entities section provides a list of all nonprofit, higher education, and governmental entities currently served by our firm. The Personnel Profiles section provides a list of all nonprofit, higher education, and governmental entities grouped by personnel that participated in the audits. CALHOUN COUNTY, TEXAS AUDIT PROPOSAL PERSONNEL PROFILES Donald G. Goldman is a CPA licensed by the Texas State Board of Public Accountancy. He received his Bachelor of Business Administration degree with a major in Accounting from Sam Houston State University in 1969. He is a partner in the firm and has been in public practice for forty-five years. He holds the Certificate of Educational Achievement in Governmental Accounting and Auditing from the American Institute of Certified Public Accountants. Donald has prepared Comprehensive Annual Financial Reports but has not been associated with any submissions of them to the Government Finance Officers Association for the Certificate of Achievement. He has participated in the performance of the following audits which are similar in nature to that for which we are proposing: City of Freer, Texas - Single Audit Act City of Goliad, Texas City of LaWard, Texas City of Moulton, Texas -Single Audit Act City of Nixon, Texas - Single Audit Act City of Point Comfort, Texas City of Seadrift, Texas - Single Audit Act City of Smiley, Texas Town of Refugio, Texas Town of Woodsboro, Texas - Single Audit Act County of Calhoun, Texas County of Goliad, Texas County of Victoria, Texas Community Action Committee of Victoria, Texas - Single Audit Act Jackson County, Co -Wide Drainage District LaSalle WCID No 1 A Pecan Valley Groundwater District Pettus Municipal Utility District Refugio Groundwater Conservation District Refugio County Drainage District #1 Refugio County WCID #1 Refugio County WCID #2 Texana Groundwater Conservation District Victoria County Groundwater Conservation District Victoria County WCID #1 Victoria County WCID #2 Port O'Connor Municipal Utility District - Single Audit Act Freer Gas Trust Golden Crescent Council of Governments Golden Crescent Private Industry Council - Single Audit Act Gulf Bend Mental Health Mental Retardation Center - Single Audit Act Mid -Coast Family Services - Single Audit Act Victoria County Senior Citizens Association, Inc. - Single Audit Act CALHOUN COUNTY, TEXAS AUDIT PROPOSAL PERSONNEL PROFILES Jamie K. Notz is a CPA licensed by the Texas State Board of Public Accountancy. She received her Bachelor of Business Administration degree with a major in Accounting from University of Texas -Austin in 1977. She is a partner in the firm and has been in public practice for thirty-eight years. She has participated in the performance of the following audits which are similar in nature to that for which we are proposing: City of Flatonia, Texas City of Freer, Texas - Single Audit Act City of Goliad, Texas City of Moulton, Texas - Single Audit Act City of Point Comfort, Texas City of Runge, Texas City of Seadrift, Texas - Single Audit Act City of Yorktown, Texas - Single Audit Act Moulton Community Medical Clinic District County of Victoria, Texas American Red Cross - Victoria Chapter Golden Crescent Council of Governments Goliad County Hospital Gulf Bend Mental Health Mental Retardation Center -Single Audit Act VISO Education Foundation, Inc. Women's Crisis Center, Inc. - Single Audit Act Sue Guthrie is a CPA licensed by the Texas State Board of Public Accountancy. She received her Bachelor of Business Administration degree in Business from Texas A&I University in 1973. She is a senior accountant in the firm and has been in public practice for thirty three years. She has participated in the performance of the following audits which are similar in nature to that for which we are proposing: Bay City Chamber of Commerce & Agriculture City of Port Lavaca, Texas City of Smiley, Texas City of Yorktown, Texas - Single Audit Act American Red Cross - Crossroads Chapter Golden Crescent Court Appointed Special Advocates Hospice of South Texas, Inc. The Junior League of Victoria, Inc. Matagorda County Birding & Nature Center, Inc. Matagorda County Women's Crisis Center Matagorda County United Way Parkway Baptist Church South Texas Zoological Society Victoria Chamber of Commerce Victoria Christian Assistance Ministry Victoria County Senior Citizens Association, Inc. - Single Audit Act Victoria ISD Education Foundation Victoria One Hundred Club Victoria Preservation, Inc. Victoria Rehabilitation Center, Inc. Women's Crisis Center, Inc. CALHOUN COUNTY, TEXAS AUDIT PROPOSAL PERSONNEL PROFILES Dawn Villarreal received her Bachelor of Business Administration degree with a major in Accounting and Master in Business Administration from University of Houston -Victoria. She is a member of the staff at the firm and has been in public practice for ten years. She has participated in the performance of the following audits which are similar in nature to that for which we are proposing: Town of Refugio, Texas - Single Audit Act City of Seadrift, Texas - Single Audit Act Town of Woodsboro, Texas -Single Audit Act City of Nixon, Texas - Single Audit Act American Red Cross - Crossroads Chapter Community Action Committee of Victoria, Texas - Single Audit Act Mid -Coast Family Services, Inc. - Single Audit Act Victoria ISD Education Foundation Keith H. Cox is a CPA licensed by the Texas State Board of Public Accountancy. He received his Bachelor of Business Administration in Accounting and Master of Science in Management Information Systems from Texas A&M University in 2007. Keith also holds a Certified Information Systems Auditor (CISA) designation. He is a member of the staff at the firm and has been in public practice for five years. He has participated in the performance of the following audits which are similar in nature to that for which we are proposing: City of Nixon, Texas - Single Audit Act City of Point Comfort, Texas City of Seadrift, Texas - Single Audit Act City of Smiley, Texas Town of Refugio, Texas - Single Audit Act Town of Woodsboro, Texas - Single Audit Act Food Bank of the Golden Crescent - Single Audit Act Mid -Coast Family Services, Inc. -Single Audit Act Parkway Baptist Church Jackson County, County -Wide Drainage District LaSalle WCID No. 1 A Pecan Valley Groundwater District Port O'Connor Improvement District - Single Audit Act Refugio Groundwater Conservation District Texana Groundwater Conservation District Victoria County WCID #1 CALHOUN COUNTY, TEXAS AUDIT PROPOSAL PERSONNEL PROFILES Trey Parma graduated in May 2015 with a Bachelor of Business Administration degree with a major in Accounting from University of Houston -Victoria. He is a member of the staff at the firm and has been in public practice for three years. He has participated in the performance of the following audits which are similar in nature to that for which we are proposing: City of Flatonia, Texas City of Freer, Texas - Single Audit Act City of Nixon, Texas.- Single Audit Act City of Seadrift, Texas - Single Audit Act Town of Refugio, Texas - Single Audit Act Town of Woodsboro, Texas - Single Audit Act Pecan Valley Groundwater District Port O'Connor Improvement District - Single Audit Act Texana Groundwater Conservation District Mid -Coast Family Services, Inc. - Single Audit Act Sylvia Hanson Goris is a CPA licensed by the Texas State Board of Public Accountancy. She received her Bachelor of Arts in Economics and Managerial Studies from Rice University in 1977 and Master in Professional Accounting from University of Texas -Austin in 1979. She is a member of the staff at the firm and has been in public practice for twelve years, with an additional four years' experience in private accounting. She has participated in the performance of the following audits which are similar in nature to that for which we are proposing: Hospice of South Texas, Inc. Matagorda County Women's Crisis Center Matagorda County United Way Parkway Baptist Church Victoria County Senior Citizens Association Food Bank of the Golden Crescent- Single Audit Act Mid -Coast Family Services, Inc. - Single Audit Act Stephanie S. Koch is a CPA licensed by the Texas State Board of Public Accountancy. She received her Bachelor of Science in Economics from Texas A&M University. She is a member of the staff at the firm and has been in public practice for twelve years. She has participated in the performance of the following audits which are similar in nature to that for which we are proposing: Port O'Connor Improvement District - Single Audit Act Billy T. Cattan Recovery Outreach, Inc. Golden Crescent Court Appointed Special Advocates, Inc. Matagorda County Women's Crisis Center - Single Audit Act Parkway Baptist Church Victoria Christian Assistance Ministry Victoria County Senior Citizens Association, Inc. - Single Audit Act CALHOUN COUNTY, TEXAS AUDIT PROPOSAL PERSONNEL PROFILES John D. Sweet received his Bachelor of Business Administration degree with a major in Accounting from University of Houston -Victoria in May 2016. He is a member of the staff at the firm and has been in public practice for over one year. He has participated in the performance of the following audits which are similar in nature to that for which we are proposing: City of Nixon, Texas City of Smiley, Texas Port O'Connor Improvement District - Single Audit Act Town of Refugio, Texas Jackson County, County -Wide Drainage District Pettus Municipal Utility District Refugio Groundwater Conservation District Texana Groundwater Conservation District Victoria County WCID #1 Carlos Norman earned his Bachelor of Business Administration — Accounting degree Summa Cum Laude from University of Houston -Victoria in 2013 and is in the process of obtaining his CPA certification. He is a member of the staff at the firm and has been in public practice for over one year. He has participated in the performance of the following audits which are similar in nature to that for which we are proposing: City of Flatonia, Texas City of Freer, Texas City of Point Comfort, Texas Port O'Connor Improvement District- Single Audit Act Jackson County, County -Wide Drainage District Refugio Groundwater Conservation District Texana Groundwater Conservation District 10 CALHOUN COUNTY, TEXAS AUDIT PROPOSAL LIST OF SIMILAR ENGAGEMENTS (CURRENT CLIENTS) NAME OF GOVERNMENTAL UNIT ENGAGEMENT CONTACT PERSON TYPE OF ENTITY/AUDIT STATUS City of Freer, Texas Municipal, Single Audit Currently engaged Fabian Bazar, Mayor Act, A-133, GASB 34 (41 years) (361) 394-6612 City of Flatonia, Texas Municipal, GASB 34 Currently engaged Scott Dixon, City Manager (8 years) (361) 865-3548 City of Nixon, Texas Municipal, Single Audit Currently engaged Manuel Zepeda, City Manager Act, A-133, GASB 34 (19 years) (830) 682-1924 City of Point Comfort, Texas Municipal, GASB 34 Currently engaged Rhonda Wilkins, City Secretary (45 years) (361)987-2661 City of Seadrift, Texas Municipal, Single Audit Currently engaged Paula Moncreif, City Secretary Act, A-133, GASB 34 (35 years) (361)785-2251 City of Smiley, Texas Municipal, GASB 34 Currently engaged Rebecca Mejia, City Secretary (19 years) (830) 587-6220 Town of Refugio, Texas Municipal, Single Audit Currently engaged Callie Shreckengost, City Secretary Act, A-133, GASB 34 (11 years) (361)526-5361 Town of Woodsboro, Texas Municipal, Single Audit Currently engaged Ruby DeLaGarza, City Secretary Act, A-133, GASB 34 (23 years) (361)543-4505 Jackson County, Co -Wide Drainage District Municipal, GASB 34 Currently engaged Janet White, District Secretary Texas Water Code (6 years) (361)782-5401 Pettus Municipal Utility District Municipal, GASB 34 Currently engaged Karen Kibbe, President Texas Water Code (6 years) (361)375-2263 11 CALHOUN COUNTY, TEXAS AUDIT PROPOSAL LIST OF SIMILAR ENGAGEMENTS (CURRENT CLIENTS) NAME OF GOVERNMENTAL UNIT ENGAGEMENT CONTACT PERSON TYPE OF ENTITY/AUDIT STATUS Port O'Connor Improvement District Municipal, GASS 34 Currently engaged Allen Junek, District Board President Texas Water Code (18 years) (361)983-2652 Pecan Valley Groundwater District Municipal, GASB 34 Currently engaged Charlotte Krause, Office Manager Texas Water Code (10 years) (361)275-8188 Refugio County WCID No. 2 Municipal, GASB 34 Currently engaged Edward J. Ermis, President Texas Water Code (10 years) (361) 526-2334 Refugio Groundwater Conservation District Municipal, GASB 34 Currently engaged Tim Andruss, Manager Texas Water Code (10 years) (361) 526-1483 Victoria County Groundwater Conservation District Municipal, GASB 34 Currently engaged Tim Andruss, Manager Texas Water Code (7 years) (361) 579-6863 Victoria County WCID #1 Municipal, GASB 34 Currently engaged Noemi Troncoso, President Texas Water Code (4 years) (361) 897-1011 Texana Groundwater Conservation District Municipal, GASB 34 Currently engaged Tim Andruss, Manager Texas Water Code (5 years) (361)781-0624 LaSalle WCID No 1A Municipal, GASB 34 Currently engaged Sandra Witte, Legal Counsel Texas Water Code (5 years) (361)552-2971 12 CALHOUN COUNTY, TEXAS SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF YEAR ENDED 12131/2016 ANNUAL INDEPENDENT AUDIT REPORT Hourly rates to be charged for staff services: Partner $134 per hour Supervisor $112 per hour Staff Accountant $ 65 per hour Staff Clerical $ 55 per hour Cost Hours Calhoun County Annual Independent 425 Audit Report (including start-up costs) $39,000 Calhoun County Juvenile Probation Annual TJJD Funds Audit Report 4,000 45 Single Audit Requirement, if applicable 5,500 60 Comprehensive Annual Financial Report, if applicable 3,600 40 TOTAL: Estimated Cost of Services and Time Required to Perform Services, Not to Exceed: S5_ -510 Respectfully submitted this 15th day of August, 20166// /� Signature: �'v" "// r 6 Printed Name: Donald G. Goldman, CPA Title: Partner Firm: Goldman, Hunt & Notz, L.L.P. Address: 5606 N. Navarro, Suite 309, Victoria, Texas 77904 Telephone: 361-573-2471 fiKt APPENDIX A CALHOUN COUNTY, TEXAS AUTHORIZED PERSONNEL PARTNERS Donald G. Goldman, CPA - Partner 5606 North Navarro Street, Suite 309 Victoria, Texas 77904-1770 361/573-2471 (0) 3611576-8466(H) donald@ghncpas.com D. Dale Hunt, CPA - Partner 5606 North Navarro Street, Suite 309 Victoria, Texas 77904-1770 361/573-2471 (0) 361/573-6499(H) ddale@ghncpas.com Jamie K. Notz, CPA - Partner 5606 North Navarro Street, Suite 309 Victoria, Texas 77904-1770 361/573-2471(0) 361/578-0101(H) jamie@ghncpas.com All of the above -named partners are licensed by the Texas State Board of Public Accountancy, and each is authorized to bind the firm to this proposal. 14 �6CPA AICPA Peer Review Program and TSCPA Peer Review Program Administered by the Texas Society of CPAs PWW Acecurdarde May 7, 2015 Donald George Goldman, CPA Goldman Hunt & Notz, LLP 5606 N Navarro St Ste 309 Victoria, TX 77904 Dear Mr. Goldman: It is my pleasure to notify you that on May 4, 2015 the Texas Society of CPAs 2014-15 Peer Review Committee accepted the report on the most recent system peer review of your firm. The due date for your next review is November 30, 2017. ibis is the date by which all review documents should be completed and submitted to the administering entity. As you know, the report had a peer review rating of pass. The Committee asked me to convey its congratulations to the firm. Sincerely, Jerry L. Cross, CPA Director, Peer Review jeross@tsepa.net 800 428-0272 cc: James A A Therrell Firm Number: 10061450 Letter ID:977720 Review Number 364115 14651 Dallas Parkway, Suite 700, Dallas, TX 75254-7408 • (972) 6a7-a5oo • (800) 428-0272 • Fax (972) 667-6575 15 APPENDIX C CALHOUN COUNTY, TEXAS PERSONNEL CPE COURSE DETAIL Total CPE Course Hours Taken January 1, 2013 - August 10, 2016 Government CPE Other CPE Accounting & Audit Courses Taken Total Donald G. Goldman, CPA 57.0 110.0 167.0 Jamie K. Notz, CPA 65.0 115.5 180.5 Sue Guthrie, CPA 67.0 133.5 200.5 Sylvia H. Goris, CPA 64.5 132.5 197.0 Stephanie S. Koch, CPA 52.5 67.5 120.0 Dawn Villarreal 48.0 61.0 109.0 Keith H. Cox, CPA 76.0 96.0 172.0 Trey Parma 43.0 70.0 113.0 John D. Sweet 46.0 24.0 70.0 Carlos Norman 36.0 32.0 68.0 in APPENDIX D CALHOUN COUNTY, TEXAS SUMMARY PROPOSAL Cost Base Audit: $ 39,000.00 TJJD Fund Audit: $ 4,000.00 Single Audit: $ 5,500.00 CAFR: $ 3,600.00 Total Proposed Budget: $'2,1tlQtl0 17 Hours 425.00 45.00 60.00 40.00 570.tl0 APPENDIX D CALHOUN COUNTY, TEXAS SUMMARY PROPOSAL Base Audit Work WP Ref Activity Hours People Total Hours Cost at Avg $91.5/hr Planning and Administrative Planning Meeting 2 5 10 $ 915.00 Staff Travel 10 4 40 $ 3,660.00 Partner Travel 0 1 0 $ - Engagement Planning 4 2 8 $ 732.00 Engagement Setup in CSA 8 1 8 $ 732.00 A-1 Technical Review 2 1 2 $ 183.00 A-2 Supervision and Review 15 1 15 $ 1,372.50 A-3 Disclosure Checklist 4 1 4 $ 366.00 A-4 Grouping Schedule 2 1 2 $ 183.00 A-5 Trial Balance 6 1 6 $ 549.00 A-6 AJE Report 1 1 1 $ 91.50 A-7 Footnote Support 4 1 4 $ 366.00 A-8 Documentation of SKE 0.5 1 0.5 $ 45.75 A-9 General Planning Procedures 2 1 2 $ 183.00 A-10 Engagement Acceptance 0.5 1 0.5 $ 45.75 A-11 Engagement Letter 3 1 3 $ 274.50 A-12 Audit Planning 4 1 4 $ 366.00 A-13 Fraud Risk Assessment 2 1 2 $ 183.00 A-14 Internal Control 4 1 4 $ 366.00 A-15 PreAnalytic 4 1 4 $ 366.00 A-16 Financial Materiality 4 1 4 $ 366.00 A-17 Risk Assessment 2 1 2 $ 183.00 A-18 Review of Minutes 8 1 8 $ 732.00 A-19 Budgets 4 1 4 $ 366.00 A-21 Post Analytic 3 1 3 $ 274.50 A-22 Going Concern 0.25 1 0.25 $ 22.88 A-23 Major Fund Determination 2 1 2 $ 183.00 A-24 Related Party 0.5 1 0.5 $ 45.75 A-25 Subsequent Events 1 1 1 $ 91.50 A-26 Commitments and Contingencies 0.25 1 0.25 $ 22.88 A-27 Attorney Letter 2 1 2 $ 183.00 A-28 Management Rep Letter 3 1 3 $ 274.50 A-29 Summary of Audit Differences 0.5 1 0.5 $ 45.75 A-30 Communication with Gov AUC260 3 1 3 $ 274.50 A-31 Internal Control Memo AUC265 3 1 3 $ 274.50 A-32 Notes to Next Year 0.25 1 0.25 $ 22.88 A-33 Consultation Documentation 0.25 1 0.25 $ 22.88 A-34 Misc Workpapers 4 1 4 $ 366.00 Planning and Administrative Total: 119 46 161 $ 14,731.50 m APPENDIX D CALHOUN COUNTY, TEXAS SUMMARY PROPOSAL Base Audit Work (Continued) Field Work 4 1 q $ .00 366366.00 Tab B Standard Bank Confirmations 8 $ Bank Reconciliations 8 1 Tab C Tax Roll 8 1 1 8 2 $ $ 732.00 183.00 Sales Tax 2 4 1 4 $ 366.00 Charges for Services 2 1 2 $ 183.00 Notes Receivable 1 5 $ 457.50 Other Receivables 5 Tab F Prepaids 6 1 6 $ 549.00 Tab H Fixed Asset Setup 5 1 5 8 $ $ 457.50 732.00 Fixed Asset Testing 8 1 Tab I Inventory 4 1 4 $ 366.00 Tab N Accounts Payable SURL 12 1 12 $ $ 1,098.00 2,196.00 Cash Disbursements 24 1 24 Tab O Payroll 10 1 10 $ 915.00 Tab P Other Liabilities 6 1 6 $ 549.00 Tab Q Deferred Revenue 8 1 8 $ 732.00 8 1 8 $ 732.00 Tab R Leases Tab S Notes and Bonds Payable 16 1 16 $ 1,464.00 183.00 NfP Confirmations 2 1 2 $ Tab X Equity 4 1 1 4 4 $ $ 366.00 366.00 Intercompany Balances 4 Tab Z Grant Testing 8 1 8 $ 732.00 Tab 10 Revenue Analytic 6 1 6 4 $ $ 549.00 366.00 Other Revenue Test Work 4 1 Tab 50 Expense Analytic 6 1 6 4 $ $ 549.00 366.00 Other Expense Test Work 4 1 4 1 4 $ 366.00 Tab 80 Insurance Tab 90 Retirement 20 1 20 $ 1.830.00 Known Unknowns 8 1 8 $ 753.00 Total Field Work: 210 29 210 $ 19,236.00 Report Writing 20 1 20 $ 1,830.00 Financial Statements 1 20 $ 1,830.00 Notes to the Financial Statements 20 15 $ 1,372.50 Review and Corrections 15 1 Report Writing Total: 55 3 55 $ 5,032.50 19 APPENDIX D CALHOUN COUNTY, TEXAS SUMMARY PROPOSAL TJJD Audit Work Hours People Total Hours Cost at Avg $91.51hr WP Ref Activity Planning and Administrative 1 1 $ 91.50 Engagement Planning 1 1 0.5 $ 45.75 Engagement Setup in CSA 0.5 1 0.5 $ 45.76 A-1 Technical Review 0.5 1 2 $ 183.00 A-2 Supervision and Review 2 1 $ 91.50 A-3 Disclosure Checklist 1 1 1 0.5 $ 45.75 A-5 Trial Balance 0.5 0.5 1 0.5 $ 45.75 A-13 Fraud Risk Assessment 1 1 $ 91.50 A-14 Internal Control 1 0.5 1 0.5 $ 45.75 A-15 PreAnalytic 0.25 1 0.25 $ 22.88 A-16 Financial Materiality 1 0.5 $ 76 A-17 Risk Assessment 0.5 1 1 $ 91.5500 91. A-18 Review of Minutes 1 1 0.5 $ 45.75 A-19 Budgets 0.5 0.5 1 0.5 $ 45.75 A-21 Post Analytic 1 1 1 $ 91.50 A-27 Attorney Letter 1 2 $ 183.00 A-28 Management Rep Letter 2 1 $ 91.50 A-30 Communication with Gov AUC260 1 1 1 $ 91.50 A-31 Internal Control Memo AUG265 1 1 Planning and Administrative Total: 15.25 18 15.25 $ 1,396.38 Field Work Tab 10 Revenue Analytic Other Revenue Test Work 3.5 3 1 1 3.5 3 $ $ 317.12 274.50 Tab 50 Expense Analytic Other Expense Test Work Total Field Work: 3 3 12.5 1 1 4 3 3 12.5 $ $ $ 274.50 274.50 1,140,62 Report Writing q $ 366.00 Financial Statements 4 1 Notes to the Financial Statements 8 1 8 $ 732.00 Review and Corrections 4 1 4 $ 366.00 Report Writing Total: 16 3 16 $ 1,464.00 20 APPENDIX D CALHOUN COUNTY, TEXAS SUMMARY PROPOSAL Single Audit Hours People Total Hours Cost at Avg $91.5Ihr Activity .00 Single Audit Determination 6 1 6 $ 915 10 1 10 $ 15.00 Single Audit Report 44 $ 4,026.00 �re�t ,.,.,r4 fnr Prnnrams 44 1 _ __ 21 APPENDIX D CALHOUN COUNTY, TEXAS SUMMARY PROPOSAL CAFR Work Activity Hours People Total Hours Cost at Avg $9900.0 10 1 10 $ 900.00 Research g0 $ 2 700.00 Exnanded Disclosures and schedules 30 1 % CERTIFICATION OF PROPOSER I, Donald G. Goldman, CPA, hereby certify that I have read all items of this Request for Qualifications and fully understand the requirements listed herein. I further certify that I am an authorized agent of the proposing Auditor empowered to submit the proposal and authorized to sign a contract with Calhoun County, Texas. GOLDMAN, HUNT & NOTZ, L.L.P. onald G. Goldman, CPA � / Date 23 CALHOUN COUNTY RESPONSE TO RFQ Professional Audit Services 1. FIRM NAME: GOLDMAN, HUNT & NOTZ, L.L.P. 2. BUSINESS ADDRESS: 5606 N. Navarro Street, Suite 309 Victoria, Texas 77904_ 3. 4. S. TELEPHONE, WITH AREA CODE: 361-573-2471 FAX, WITH AREA CODE: 361-575-0444 E-MAIL ADDRESS: donald@ghncpas.com INTERNET URL ADDRESS: http://www.ghncpas.com TYPE OF ORGANIZATION: (CHECKONE) a. SOLE PROPRIETORSHIP b. PARTNERSHIP c. CORPORATION d. JOINT VENTURE PRINCIPALS OF FIRM: NAME a. Donald Goldman, CPA b. D. Dale Hunt, CPA C. Jamie K. Notz, CPA Q e. DEGREE OR CERTIFICATE BBA 12294 BHA 21182 26197 INSTITUTION Sam Houston State University State Board of Public Accountancy Texas A&M University -College Statio State Board of Public Accountancy University of Texas -Austin State Board of Public Accountancy CALHOUN COUNTY RESPONSE TO RFQ Professional Audit Services SUBMITTED BY: SIGN T— DATE: (, b to PRINTED NAME; Donald G. Goldman,CPA TITLE; Partner FIRM NAME. GOLDMAN, HUNT & NOTZ, L.L.P. PRIVACY NOTIFICATION The principal purpose for requesting the Information on this form is for use in the selection process for professionals approved by the County. Furnishing all Information requested on this form is mandatory. Failure to provide such information will delay or may even prevent completion of the action for which the form is being filled out. Information on this form will be used by the county for its evaluation in the consideration of approval of professionals. if you consider any portion of your response to this RFQ to be privileged or confidential by statute or Judicial decision, including trade secrets and commercial or financial Information, clearly identifythose portions, Responses to this RFQ will be opened in a manner that avoids disclosure of the contents to competing offerors and keeps the Request for Qualifications secret during negotiations. All responses are open for public inspection after the contract is awarded, but trade secrets and confidential information in the Request for Qualifications are not open for inspection. The County will honor your notations of trade secrets and confidential Information and decline to release such Information initially, but please note that the final determination of whether a particular portion of your proposal is In fact a trade secret or commercial or financial information that may be withheld from public inspection will be made by the Texas Attorney General or a court of competent jurisdiction. In the event a public information request Is received for a portion of your proposal that you have marked as being confidential information, you will be notified of such request and you will he required to justify your legal position in writing to the Texas Attorney General pursuant to Section 552,305 of the Government Code. In the event that It Is determined by opinion of the Texas Attorney General or a court of competent jurisdiction that such Information is in fact not privileged and confidential under Section 552.110 of the Government Code and Section 262.049 of the Local Government Cade, then such Infomatlon will be made available to the requester. Marking your entire proposal CONFIDENTIAL/PROPRIETARY is not in conformance with the Texas Open Records Act. —3'3- 25 CALHOUN COUNTY RESPONSE TO RFQ Professional Audit Services COST ESTIMATE SHEET This form must be returned with your proposal. FIRM NAME: GOLDMAN HUNT & NOT7,_j T. P -- CALHOUN COUNTY AUDIT Maximum Fee: Governmental Audit Single Audit CAFR Fiscal Year Ending December 31, 2016 $39, 000 $5, 500 $3, 600 Fiscal Year Ending December 31, 2017 $40, 200 $5, 700 $3, 700 Fiscal Year Ending December 31, 2018 $41,400 $5,900 $3,800 Indicate the methods that would be used to calculate costs forfuture optional terms. Include detail of price including number of staff and staff hours that will be committed to the audit. Cost for future optional.items are based on a blended rate of $91.50/hour plus inflation assuming the funds are comparable. See attached for a___ detail breakdown of estimated time. CALHOUN COUNTY JUVENILE PROBATION AUDIT Maximum Fee: Governmental Audit Fiscal Year Ending August 31, 2016 $4,000 Fiscal Year Ending August 31, 2017 $4,100 Fiscal Year Ending August 31, 2018 $4, 250 Indicate the methods that would be used to calculate costs for future optional terms. Include detail of price including number of staff and staff hours that will be committed to the audit. Cost for future optional items are based on a blended rate of $91.50/hour plus inflation assuming the funds are comparable. See attached for a detail breakdown of estimated time. _2g_ 26 PROPOSAL TO PROVIDE PROFESSIONAL AUDIT SERVICES FOR CALHOUN COUNTY, TEXAS FOR THE YEAR ENDING DECEMBER 31, 2016 CALHOUN COUNTY, TEXAS MICHAEL J. PFEIFER, COUNTY JUDGE Calhoun County Courthouse 211 South Ann Street 3`d Floor, Ste 301 Port Lavaca, TX 77979 SUBMITTED BY: KENNEMER, MASTERS & LUNSFORD, LLC CERTIFIED PUBLIC ACCOUNTANTS 8 W Way Ct Lake Jackson, Texas 77566 (979) 297-4075 August 2, 2016 AUDIT PARTNER: KEVIN R. CADENHEAD, CPA kcadenhead(aDkmandl.com CALHOUN COUNTY, TEXAS PROPOSALFOR PROFESSIONAL AUDIT SERVICES TABLE OF CONTENTS Letter of Transmittal Peer Review and Degree of Compliance Statement Approach to the Audit and Costs Outline of Audit Plan Staff Assigned to the Engagement and Estimated Time and Fee Summary of Kennemer, Masters & Lunsford, LLC Qualifications and Specific Information Firm Qualifications and Experience and Firm Background References Additional Information Client Service Concepts Letter of Transmittal August 11, 2016 Calhoun County, Texas 211 South Ann Street 3b Floor, Ste 301 Port Lavaca, Texas 77979 We appreciate the opportunity to present this proposal of professional .audit services for the audit of Calhoun County, Texas (the "County") for the year ending December 31, 2016. We take the preparation of audit proposals very seriously. Our goal is to ensure that we can provide the highest quality services; in a timely manner, that will enable us to maintain a long-term relationship with our clients. Based upon our knowledge of the County, our knowledge of auditing other similar counties, our experience with preparing Comprehensive Annual Financial Reports for GFOA submission, evaluation of our schedule of existing commitments, and the availability of qualified professional staff, we are certain that we can provide the County with the necessary professional audit services as described in the scope of the Proposal for Professional Audit services package, We have experience auditing comparative county governments and we understand completely the audit and reporting requirements. We are confident that we can meet the deadlines set forth by the County. To accomplish this, we envision performing audit planning and fieldwork in late October and early November of 2016 and will be prepared to begin our year-end audit fieldwork in mid -April or at such time as the County has completed their year-end accounting and audit preparation. We have worked to develop a breadth of experience in auditing and financial reporting. The quality and make-up of our staff make us quite confident that our services would compare favorably with any other firm. Further, we are very proud of our history of maintaining long-term relationships with our clients. We believe that this has been possible because of our approach to client service and the experience level of our professional staff. Our objective is to provide quality services to our clients; therefore, we limit our practice to those clients we can properly serve. As you are selective in the type of firms that you would choose to perform services for the County so we are selective in the type of clients we serve and the type of services we perform. We would like to emphasize that we understand the scope of this engagement and that we will perform the required work to meet your expectations and the requirements as specified in your request for proposal letter. Our firm states here that we are independent of Calhoun County, Texas as defined by the U.S. General Accounting Office's Government Auditing Standards, We have included a listing of our current governmental audit clients. We encourage you to contact any of these references since, we believe, they will be very candid and informative about our firm's performance and qualifications. Transmittal Letter August 11, 2016 Page 2 Kevin Cadenhead, CPA, is the Partner in charge of audit and is responsible for this proposal. Kennemer, Masters & Lunsford, LLC is licensed to practice public accounting in the State of Texas and is in good standing as are all of the Certified Public Accountants within our firm. We are happy to have been given an opportunity to provide this proposal and we look forward to hearing back from you. We can be available to answer questions about our qualifications at your convenience. Sincerely, KENNEMER, MASTERS & LUNSFORD, LLC Kevin R. Cadenhead, CPA Partner Audit Coordinator PEER REVIEW AND DEGREE OF COMPLIANCE STATEMENT CALHOUN COUNTY, TEXAS PROPOSAL FOR PROFESSIONAL AUDIT SERVICES PRESENTED BY KENNEMER, MASTERS & LUNSFORD, LLC CERTIFIED PUBLIC ACCOUNTANTS PEER REVIEW Kennemer, Masters & Lunsford, LLC began its Quality Control Program in 1984, prior to the adoption of mandatory requirements. The firm joined the American Institute of Certified Public Accountants Private Companies Practice Section Division of CPA Firms and remains a member today. The firm has had ten successful Peer Reviews (1987, 1990, 1993, 1996, 1999, 2002, 2005, 2008, 2011 and 2014). The firm received a rating of pass from Robert D. Goldstein, Certified Public Accountant, dated August 19, 2014, and a copy of this report follows. Note that the most recent peer review as well as all of the peer reviews previously listed involved detailed reviews of multiple governmental audits. Mr. Goldstein was appointed to the AICPA Peer Review Board in 2004. In addition, he is a member of the Texas Society of Certified Public Accountants (TSCPA) Peer Review Committee and he was its state chairman from 2002 through 2005: He was a, member of the AICPA's Private Companies Practice Section Peer Review Committee for three years in the 1990s. He has also served on the Editorial Board for the TSCPA's state magazine and on the TSCPA's MAP City. Since 1983, he has conducted approximately900 peer and quality reviews of CPA firms in ten states ranging from New Jersey to California. Quality control is an everyday process. We at Kennemer, Masters & Lunsford, LLC believe strongly in the quality control method of doing business. We have incurred significant costs to develop and maintain sound quality control procedures and fully intend to improve on them in the future. To insure this; we perform annual intemal inspections of our quality control procedures and utilize an impartial reviewer for every audit performed by the firm. As you can see, we are very proud of our firm and the accomplishments that we have achieved to date. We fees very strongly that the qualifications of Kennemer, Masters & Lunsford, LLC will measure up to any other firm. DEGREE OF COMPLIANCE STATEMENT Our proposal provides that we will meet all specifications as described in this proposal without exception. INDEPENDENCE The second standard of generally accepted auditing standards approved and adopted by the American Institute of Certified Public Accountants states that in all matters relating to the assignment, an independence in mental attitude is to be maintained by the auditor or auditors. To be independent, the auditor must be intellectually honest, but to be recognized as independent by the general public; the auditor must be free from any obligation to or interest in the client, its management, its owners, or its governing board. Therefore, we hereby state that not only are we without bias with respect to Brazoria County, Texas, and therefore possess the impartiality necessary for the dependability of our findings, we are also free of any obligation to the County, its management, or its Commissioner's Court in accordance with U.S. generally accepted auditing standards. LICENSE TO PRACTICE IN TEXAS Kennemer, Masters & Lunsford, LLC and all certified professional staff employed by the firm are properly registered and licensed to practice public accountancy in the State of Texas. If desired, a copy of the firm's and its employee's licenses will be made available. STATUS WITH TEXAS STATE BOARD Kennemer, Masters & Lunsford, LLC or any of its employees are currently under the terms of a public or private reprimand by the Texas State Board of Public Accountancy or any other licensing boards. REQUIRED TIMEFRAME We affirm that we have the capability and experience to meet the required timetrame for completing the engagement as set forth in the scope of services of the request for proposal. ERRORS AND OMMISSIONS INSURANCE We affirm that our firm has adequate errors and omissions insurance coverage in place as it relates to this engagement. PROFESSIONAL EDUCATION PROGRAM We affirm that our firm has met all requirements for requisite continuing professional education as is relates to being Certified Public Accountants and also as it relates specifically to governmental auditing and federal and state program compliance auditing. CERTIFICATE OF INTERESTED. PARTIES FORM 1295 See completed Form 1295 included with this proposal. FIRM QUALIFICATIONS AND EXPERIENCE See Summary of Qualification and Specific Information in this proposal document. PARTNER SUPERVISORY AND STAFF QUALIFICATIONS DN EXPERIENCE See Summary of Qualification and Specific Information in this proposal document. THOROUGH KNOWLEDGE AND SIMILAR ENGAGEMENTS See Summary of Qualification and Specific Information in this proposal document SPECIFIC AUDIT APPROACH See Approach to the Audit and Costs in this proposal document. APPROACH TO THE AUDIT AND COSTS CALHOUN COUNTY, TEXAS PROPOSALFOR PROFESSIONAL AUDIT SERVICES PRESENTED BY KENNEMER, MASTERS & LUNSFORD, LLC CERTIFIED PUBLIC ACCOUNTANTS OUTLINE OF AUDIT PLAN our audit will be conducted in several phases. Upon engagement, we would like to immediately begin working with the County's management and personnel to insure maximum utilization of the available resources of the County. To accomplish this in the future, we anticipate working and communicating normally with the County throughout the year. Our approach would be unaffected by the term of the engagement. Our 'audit fieldwork will be conducted in three phases (audit planning, introductory audit fieldwork procedures, concluding field work procedures). Execution of certain procedures within the three phases will be performed concurrently in order to maximize the efficient conduct of the audit. We envision performing audit planning and interim audit fieldwork for one person to document internal controls and accounting procedures, coordinating with the County's management and staff as to the degree of assistance that is available and the timing of year-end audit procedures, and to meet and interview certain County officials. Although the approach to the audit or audit plan is dependent upon many factors; such as various audit risks and requirements from outside sources, the following is an outline of procedures we generally expect to perform; Audit Planning Preparatory - Obtain permanent file documents; identify applicable GASB and AICPA pronouncements; determine the extent of anticipated involvement of the County's personnel and the use of outside specialist (if necessary).. Determination of Audit Strategy - Update our understanding of the County; perform preliminary analytical review; develop information about the accounting system and control procedures; develop information about both accounting and compliance administrative control procedures; perform an EDP controls review; evaluate the environmental factors and consider the existence of "sensitive" areas; preliminary assessment of control risk; identify the key audit areas; identify major contracts; and determine the extent of anticipated sampling and non -sampling procedures for both financial and compliance. Substantive Procedures Before Balance Sheet Date - Normally we determine the extent of audit procedures that can effectively and efficiently be performed prior to the balance sheet date. However, since the balance sheet date is in the near term we will combine this activity with our year-end audit procedures to maximize efficiency where possible, Concluding Procedures - Assemble, prepare and appropriately communicate the audit plan. This includes selection of audit programs, tailoring procedures, and preparing supplemental programs. Develop a time budget. CALHOUN COUNTY, TEXAS PROPOSALFOR PROFESSIONAL AUDIT SERVICES PRESENTED BY KENNEMER, MASTERS & LUNSFORD, LLC CERTIFIED PUBLIC ACCOUNTANTS OUTLINE OF AUDIT PLAN - Continued Introductory Field Work Procedures General Ledger - Test opening general ledger balances; obtain an understanding of sources of entry into general ledger and perform "walk-through" procedures; test controls over general ledger entries; and review adjusting journal entries. iystems Control and Gombliance Procedures - Obtain reasonable assurance Mks of original entry are mathematically accurate; perform "walk-through" for each significant transaction cycle and compliance requirements; test requirements; test "key" controls to be relied upon for each significant ;ycle using sampling techniques and reevaluate assessed risk.. Concluding Procedures - Identify reportable conditions, compliance findings, and advisory comments; review minutes; perform management inquiries regarding irregularities and illegal acts, litigation, claims and assessments, and unusual and related party transactions.. Concluding field Work Procedures Statement of Net Position Procedures - Determine that statement of net position amounts are accurate; properly classified, and properly disclosed through confirmation, inspection, and other substantive audit procedures. Revenue and Expense Procedures - Determine the use of proper accounting methods; determine that revenue and expenses are applicable to the current accounting period, and are properly classified and adequately described through analytical and other substantive audit procedures. Budget Procedures - Determine that the original budget and all amendments have been properly approved; determine whether the budget has been exceeded and whether this constitutes violation of agreements. Concluding Procedures - Evaluate significance of audit differences; perform final analytical procedures; perform updating procedures including the work of any internal, governmental and regulatory auditors; obtain attorney responses; perform subsequent event procedures; obtain representation letters; make required communications with management and the board of directors; and issue audit report and financial statements. CALHOUN COUNTY, TEXAS PROPOSALFOR PROFESSIONAL AUDIT SERVICES PRESENTED BY KENNEMER, MASTERS & LUNSFORD, LLC CERTIFIED PUBLIC ACCOUNTANTS STAFF ASSIGNED TO THE ENGAGEMENT ESTIMATED TIME AND FEE The following is a listing of the staff that will be assigned to perform this engagement, along with their title, qualifications, and estimated time on the engagement. ACCOUNTANT/ CLASSIFICATION QUALIFICATIONS ESTIMATED TIME Kevin R. Cadenhead, CPA CPA with 30 years 31.0 (Engagement Partner) accounting and auditing experience. Wade E. Whitlow, CPA CPA with over 10 years 136.0 (Manager, In -charge) accounting and auditing experience Quality Control Reviewer CPA over 15 years 3.0 accounting and auditing experience Staff Staff with 3-5 years experience 127.0 Clerical 32.0 Total Estimated Hours 329.0-0 It has been our practice to rotate personnel below the level of audit partner, especially during our internal control and administrative procedure evaluations performed during our interim audit fieldwork. We believe that this eliminates presumptions that might occur when the same staff performs the same procedures on the same client year after year. Should scheduling requirements impose a need to substitute or add any personnel, the skills and experience level of replacements will be commensurate with the requirements of the engagement. A continuity of personnel will be maintained in subsequent engagements, however, duties will be rotated to comply with our Quality Control Procedures, as explained above. CALHOUN COUNTY, TEXAS PROPOSAL FOR PROFESSIONAL AUDIT SERVICES PRESENTED BY KENNEMER, MASTERS & LUNSFORD, LLC CERTIFIED PUBLIC ACCOUNTANTS STAFF ASSIGNED TO THE ENGAGEMENT ESTIMATED TIME AND FEE - Continued Our billings for the services set forth in our proposal are based upon our standard rates for this type of work and will be rendered at the beginning of each month with final billing upon completion of the engagement. Our audit rates reflect adjustments made to our standard billing rates based upon consideration of expected productivity resulting from this type of work and prevailing rates within the industry. Although our audit rates are lower than our standard rates, they do not nor are they intended to reflect a discounted service. These engagements include only those services specifically described in our proposal letters. Additional services, which you may request or which may be necessary to complete the audit, will be subject to separate arrangements. Annual Financial Report We expect the audit should take approximately 329;0 hours, therefore, we estimate our fee will be $ 41,000. This fee estimate does not include any new audit requirements, which currently have not been disclosed by the GAS13, or other regulatory agency(s). The following is a summary of the hours and rates by professional staff: Estimated Staff Level Hours Rate Amount Engagement Partner 31.0 $ 190.00 $ 5,890 Impartial Reviewer 3.0 140.00 420 Manager (In -Charge) 136.0 140.00 19,040 Staff 127.0 90.00-110.00 12,130 Clerical 32.0 50.00 1,600 1,920 Other Totals 329.0 $ 41000 CALHOUN COUNTY, TEXAS PROPOSALFOR PROFESSIONAL AUDIT SERVICES PRESENTED BY KENNEMER, MASTERS & LUNSFORD, LLC CERTtF1EDftBLIC ACCOUNTANTS STAFF ASSIGNED TO THE ENGAGEMENT ESTIMATED TIME AND FEE —Continued Under existing conditions, we believe our total fee would not change significantly for the next two years. Basically, cost (rate) increases should be offset, to some extent, by an increased knowledge of the County and a related increase in audit efficiency. Realistically, we all know financial circumstances will change and additional requirements will likely be imposed. The following are the estimated fees for the subsequent two years ending December 31, 2017 and 2018: Average Estimated Estimated Rate Hours Fee Annual Financial Report; December 31, 2017 $ 131/hr 310.0 $ 40,610 December 31, 2018 135/hr 310.0 41,850 Comprehensive. Annual Financial Report In the event the County decides to prepare a CAFR for application to the GFOA certificate program, the following summary of hours and rates by professional staff can be expected to be Incurred in addition to the aforementioned fee:. Estimated Staff Level Hours Engagement Partner 1.0 Impartial Reviewer 0.5 Manager (In -Charge) 10.0 Clerical 6.0 Totals 17.5 Rate Amount $ 190,00 $ 190 140.00 70 140.00 1i400 50.00 300. Estimated Future Costs Under existing conditions, we believe our total fee would not change significantly for the next two years. Basically cost (rate) increases should be offset, to some extent; by an increased knowledge of the County and a related increase in audit efficiency. Realistically, we all know financial circumstances will change and additional requirements will likely be imposed. The following are the estimated fees for the subsequent two years ending December 31, 2017 and 2018: Average Rate Comprehensive Annual Financial Report: Estimated Hours December 31, 2017 $ 110/hr 16.0 December 31, 2018 115/hr 16.0 Estimated Fee 1,760 1,840 CALHOUN COUNTY, TEXAS PROPOSALFOR PROFESSIONAL AUDIT SERVICES PRESENTED BY KENNEMER, MASTERS & LUNSFORD, LLC CERTIFIED PUBLIC ACCOUNTANTS Texas Juvenile Justice Department Report We expect the audit should take approximately 36 hours, therefore, we estimate our fee will be $ 4,000, This fee estimate does not include any new audit requirements, which currently have not been disclosed by the State of Texas (TJJD) or other regulatory agency(s). The following is a summary of the hours and rates by professional staff: Staff Level Hourly Rate Estimated Hours Amount Audit Partner/In-charge EQCR (Impartial Reviewer) Accountant(s)/Paraprofessionai(s) $ 190.00 140,00 11000 2.0 1.0 30.0 $ 380 140 3,300 Office professional Expenses 50.00 3.0 150 30 Totals 36.0 $ 4.000 Estimated Future Costs Under existing conditions, we believe our total fee would not change significantly for the next two years. Basically cost (rate) increases should be offset, to some extent, by an increased knowledge of the County and a related increase in audit efficiency. Realistically, we all know financial circumstances will change and additional requirements will likely be imposed. The following are the estimated fees for the subsequent two years ending August 31, 2017 and 2018: Average Estimated Estimated Rate Hours Fee Texas Juvenile Justice Department Report: August 31, 2017 $ 115/hr 35.0 $ 4,025 August 31, 2018 1181hr 35.0 4,130 SUMMARY OF KENNEMER, MASTERS & LUNSFORD, LLC QUALIFICATIONS AND SPECIFIC INFORMATION CALHOUN COUNTY, TEXAS PROPOSALFOR PROFESSIONAL AUDIT SERVICES PROFILE OF KENNEMER, MASTERS & LUNSFORD, LLC CERTIFIED PUBLIC ACCOUNTANTS FIRM QUALIFICATIONS AND EXPERIENCE FIRM BACKGROUND INFORMATION Our firm has four offices located in Houston, Lake Jackson and El Campo and Angleton, Texas and has three -partners. The firm has ton full time professional staff, four paraprofessionals, and five office professionals - a total of twenty-two people distributed as follows: Professional Staff Partners 3 Manager/Senior 7 Staff 3 Paraprofessional 4 Office professional 5 22 Our firm was founded by J. R. Carson In Bay City, Texas in 1942, and our growth has been primarily from internal expansion and recently through firm acquisition. Everet E. Kennemer III, CPA founded the Brazoria County office in 1971, upon joining the firm. Tommy E. Masters, CPA joined the firm as a professional staff in 1977, and George R. Lunsford, CPA joined our firm on January1, 2005. In June of 2010, Varenia O'Quinn and Kevin Cadenhead became partners. Our objective is to provide quality auditing, accounting, tax, and management advisory services to our clients. To this end, we expect to limit our practice to those clients we can properly serve. We intend to continue to develop our audit expertise in the areas of governmental accounting and auditing (county, community college, independent school districts, municipal and special districts), to enable us to expand our market. Therefore, we have hired and trained professional personnel who are able to meet these goals. Our firm is unique for a local firm in that approximately 48% of billable hours expended each year are related to auditing. Because of this we have assembled a highly qualified professional staff, which consists of the following: Full-time Professional Staff, 7 - Manager/Senior accountants with from seven to twenty-two years' experience, and 3 - Staff accountants with from one to five years' experience. CALHOUN COUNTY, TEXAS PROPOSALFOR PROFESSIONAL AUDIT SERVICES PROFILE OF KENNEMER, MASTERS & LUNSFORD, LLC CERTIFIED PUBLIC ACCOUNTANTS FIRM QUALIFICATIONS AND EXPERIENCE FIRM BACKGROUND INFORMATION - Continued All of our professional staff members are college graduates. As part of our professional staff, the shareholders of our firm provide a variety of knowledge and experience, acquired both from previous employment and as a member of our firm. This knowledge and experience is the cornerstone of our operations. The partners and senior manager of our firm are as follows: Name: George R. Lunsford, CPA Title/Duties: Partner Tax Services Coordinator Date Entered Firm: January 2005 Degree: B.A., Howard Payne University; M.B.A., Accounting, University of North Texas Experience: Forty (40) years Name: Kevin R. Cadenhead, CPA Title/Duties: Partner Audit Services and Administrative Coordinator Date Entered Firm: July 2010 Degree: B,B.A., Accounting Tarleton State University Experience: Thirty (30) years Name: Varenia S. O'Quinn, CPA Title/Duties: Partner Continuing Education and Small Business Coordinator Date Entered Firm: July 2010 Degree: B.B,A., Accounting University of Texas at Arlington Experience: Twenty-one (21) years CALHOUN COUNTY, TEXAS PROPOSAL FOR PROFESSIONAL AUDIT SERVICES PRESENTED BY KENNEMER, MASTERS & LUNSFORD, LLC CERTIFIED PUBLIC ACCOUNTANTS REFERENCES Listed below are references of current nonprofit audit clients, which we have served for several years. We encourage you to contact our references since we believe they will be very candid and informative about ourfirm's performance and qualifications. Related References City of Lake Jackson, Texas Audit Client Since 1980 25 Oak Drive Lake Jackson, Texas 77566 (979) 415-2400 City Manager: Mr. William Yenne Director of Finance: Mrs. Pamela K. Eaves, CPA Prepare Comprehensive Annual Financial Report - GFOA Certificate of Excellence Program Brazoria County Audit Client Since 1996 111 East Locust, Room 303 Angleton, Texas 77515 (979) 388-1275 County Judge: Honorable Matt Sebesta County Auditor: Connie Garner, CPA Prepare Comprehensive Annual Financial. Report — GFOA Certificate of Excellence Program Prepare Texas Juvenile Justice Department Grant Funds Audit Johnson County Audit Client since 2007 2NMain St Cleburne, Texas 76033 (979) County Judge: Honorable Roger Harmon County Auditor: Kirk Kirkpatrick Prepare Comprehensive Annual Financial Report — GFOA Certificate of Excellence Program Prepare Texas Juvenile Justice Department Grant Funds Audit Port Freeport Audit Client Since 1986' P. O. Box 615 Freeport, Texas 77541 (979) 233-2667 Executive Port Director/CEO: Phyllis Saathoff, CPA Chief Financial Officer: Mr. Jeffs. Strader, CPA Prepare Comprehensive Annual Financial Report — GFOA Certificate of Excellence Program CALHOUN COUNTY, TEXAS PROPOSALFOR PROFESSIONAL AUDIT SERVICES PRESENTED BY KENNEMER, MASTERS & LUNSFORD, LLC CERTIFIED PUBLIC ACCOUNTANTS REFERENCES - continued City of Clute, Texas Audit Client Since 1977 P. O. Box 997 Clute, Texas 77531 (979) 265-2541 City Manager: Mr. Gary Beverly City of Freeport, Texas 200 W. 2' Street Freeport, Texas 77541 (979) 233-3526 City Manager: Mr. Jeff Pynes Accounting Manager: Mr. Bob Welch, CPA City of Oyster Creek, Texas Rt. 3, 3210 FM 523 Oyster Creek, Texas 77541 (979) 233-0243 Mayor: Mr. Louis Guidry City of Richwood, Texas 215 Halbert Street Richwood, Texas 77531 (979) 265-2082 City Secretary: Mrs. Karen Schrom City of Sweeny, Texas 102 Ashley Wilson Rd. Sweeny, Texas 77480 (979) 548-3321 City Manager: Mrs. Cindy King City Secretary/Treasurer: Mrs, Reatta Minshew City of West Columbia, Texas P. O. Drawer 487 West Columbia; Texas 77486 (979) 345-3123 Mayor: Mrs. Laurie Kincannon City Manager: Mrs. Debbie Sutherland Audit Client Since 1981 Audit Client Since 1977 Audit Client Since 1979 Audit Client Since 2003 Audit Client Since 1980 KENNEMER, MASTERS & LUNSEORD, LLC CLIENT SERVICE CONCEPTS An Open Letter to Our Clients: The following is a discussion of certain of our Firm's Client Service Concepts. We have found that explanation of these concepts helps to clarify our services, and enhances our ability to work more closely with you. Moreover, although certain of these concepts may involve services you have not engaged us to perform, this discussion may help to clarify future engagements. Accounting and Auditing Responsibilities We will use our skills as accountants and auditors on your behalf and are responsible for performing such work with due professional care within the framework of our professional standards. However, as management of the County, you are necessarily more familiar with its operations, its personnel and the reality underlying its books and records. Accordingly, your management will remain primarily responsible for the data and Information contained in the financial statements, as well as for the evaluation of the capability_ and integrity of `County personnel and the maintenance of adequate accounting records and internal controls for safeguarding the County's assets. As we near completion of our audit work, we will ask you to carefully review the financial statements and confirm to us in writing the important representations they contain, which we will rely upon. Therefore, if there is anything in those statements that is not completely clear to you; please be sure to question us until you are satisfied. Issuance of deports When we report upon your financial statements or other financial data, our exercise of professional due care includes important processes wherein we review our own work. When our work has been completed, our findings will be presented to you in a formal report. Accordingly, although we may sometimes make a pencil or draft copy of our report available to you as a courtesy, those findings are not to be relied upon or disseminated until our completed formal report is issued. Other Information in Documents Containing Financial Statements The inclusion of our reports in documents containing information in addition to the financial statements and our reports thereon (e.g., regulatory filings, offering circular, etc.) may require us to perform additional procedures to fulfill our professional or legal responsibilities. Accordingly, our reports should not be used for any such purposes without our consent. In addition, to avoid unnecessary delay or misunderstanding, it is important that you give us timely notice of your intention to issue any such document. KENNEMER, MASTERS & LUNSFORD, LLC Client Service Concepts Page 2 Concepts, Which Pertain To All Services Timeliness We not only aim to perform our work in keeping with the highest professional standards, but we also expect our work to be conducted efficiently and completed on time. We plan our engagements to make sure we do this, but because of circumstances beyond our control, and often beyond yours as well, this is not always possible. When situations arise when it appears there will be delays or we must do additional work, our people are instructed to inform you promptly. We believe you should be made aware of any matter that may impact our service or fees and given the opportunity to help resolve any problems, which arise. Supervision of Your Personnel When called for by our engagement, we would be pleased to provide your personnel with appropriate guidance and assistance. For example, we might provide certain record keeping or financial reporting instructions to your accounting staff. However, we are sure you understand that we cannot be responsible for the day -today supervision of your personnel or for ensuring that such personnel fulfill their assigned responsibilities. You, or someone on your staff, must exercise this responsibility. Independence One last point: to provide you with proper, unbiased and objective service, our professionals should be independent of your organization. This not only means that our people should not have any investment or other business dealings with your organization or personnel, but also, that they cannot accept gifts or other personal payments from you in appreciation for their services. Naturally, they are not to accept any commissions or other payments from any suppliers or other parties with whom you do business for having referred them to you. These rules are very important and we not only ask your Cooperation in applying them, but request you to advise us if you observe anything that might indicate that these policies are not being followed. We intend the name "Kennemer, Masters & Lunsford, LLC" to stand for outstanding client service. We want you to be so pleased by our service that you will recommend us to your friends and business associates. If, however, any of our people do not adhere to the foregoing service concepts, or if our service does not please you for any other reason, please let us know. Feel free to call your account officer or the managing officer. We would be pleased to answer any questions you might have about this discussion, or any other aspects of our client services. Very truly yours, The Members of Kennemer, Masters & Lunsford, LLC CERTIFICATE OF INTERESTED PARTIES FORM 1295 loll Complete Nos. 1- 4 and 6 if there are interested parties. OFFICE USE ONLY Complete Nos.1, 2, 3, 5, and 6 it there are no Interested parties. CERTIFICATION OF FILING Certificate Number: 2016-95324 1 Name of business entity filing form, and the city, state and country of the business entity's place of business, Kennemer, Masters & Lunsford, LLC Lake Jackson, TX United States Date Filed: 0810512016 2 Name of governmental entity or state agency that is a parry to the contract for which the form is being filed. Calhoun County Date Acknowledged: 3 Provide the identification number used. by the governmental entity or state. agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract Audit services Request for Qualifications, Professional Audit Services 4 Name of Interested Party City,State, CountrY (place of business) Nature of interest (check applicable) Controlling Intermediary Lunsfafd, George Lake Jackson, TX United States X Cadenhead, Kevin Lake Jackson, TX United States X O'Quinn, Varenia Lake Jackson, TX United States X 5 Check only If there is NO Interested Party. 6 AFF I swear, or affirm, under penalty of perjury, that the above disclosure Is true and correct. �swv J ELAINE MCGENEE MY CMay 26,l011 20Ekpif¢S r �y MayY6, 2019 Signature of authorized agent of contracting business entity AFFIX NOTARY STAMP! SEAL ABOVE /i_ Sworn. to and subscribed before me, by the said 9 \"eUl vi (ad-enhe � , this the 'y "b day of�, 20__A iO , to certify which, witness my hand and seal of office, a (fACILL)(H`6-euc t44,-t-4 PLk-Wo Ignature of officer administering oath Printed name of officeradministering oath Title of officer administering oath Forms provided by Texas Ethics Commission www.ethics;state,tx,us Version V1.0.277 PROPOSAL TO AUDIT CALHOUN COUNTY FOR THE YEARS ENDING DECEMBER 31, 2016, 2017, AND 2018 pm CALHOUN COUNTY JUVENILE PROBATION FOR THE YEARS ENDING AUGUST 31, 2016, 2017, AND 2018 TABLE OF CONTENTS Letter of Interest Additional Selection Submittals Price Proposal Information Peer Review Report Response to RHQ Forms Completed Form 1295 Page No. 2-4 ia9 10 Roloff, Hnatek & Co., L.L.P. Certified Public Accountants Financial Consultants Business Advisors www.nccilp.corn -Pointing the Way to Success' Lloyd Hurst, Jr., CPA Russell A. Hodon, CPA Christopher L. Culak, CPA Christopher R: Janecek, CPA Mary Ann McAdams, CPA August 10, 2016 Cindy Mueller, County Auditor Calhoun County 202 South Ann Street, Ste B Port Lavaca, Texas 77979 Dear Mrs. Mueller: One Twenty South Main, Suite 300 P. O. Box 2486 Victoria, Texas 77902-2486 361-578-2915 1-800-861-4498 Fax 361-578-7058 We are pleased to submit the accompanying proposal to perform an audit of the financial statements and related schedules of Calhoun County (the "County") for the years ended December 31, 2016, 2017, and 2018, as well as Calhoun County Juvenile Probation for the years ended August 31, 2016, 2017, and 2018. As further described in this proposal, our audit will be performed in accordance with generally accepted government auditing standards and the provisions of the Single Audit Act as prescribed by OMB Circular A- 133 (if considered necessary). Our firm has a strong history in South Texas working closely with clients from many different areas, including governmental entities. Our goal is to fulfill our clients' needs by not just completing engagements, but to assist our clients with improving financial reporting and meeting their goals. Helping our governmental clients reach their goals directly impacts the efficiency and effectiveness of the services provided to the public. Seeing a City, County, or other governmental entity succeed and improve each year is rewarding and drives us to work harder. We appreciate the opportunity to submit a proposal for the audit of Calhoun County and Calhoun County Juvenile Probation. If you would like to discuss this proposal, please call Chris Janecek at the number listed above, Sincerely, Certified Public Accountants Members of American Institute of Certified Public Accountants Members of Texas Society of Certified Public Accountants -1- ADDITIONAL SELECTION SUBMITTALS 1. Independence —To the best of our knowledge, Roloff, Hnatek and Co., L.L.P., is independent with respect to the County and its component units. There are no direct or indirect financial interests between Roloff, Hnatek and Co., L.L.P., or any of its employees, and the County. We are not aware of any kindred relationships between anyone at Roloff, Hnatek and Co., L.L.P., and any employee or board member of the County. 2. License to Practice in Texas —Our firm and the partner in charge are properly licensed in the State of Texas. 3. Required Timeframe — Our firm has the ability to complete the audit and submit the financial statements and auditors' reports within the time period specified in the scope of services given full and timely cooperation from County staff. 4. Errors and Omissions Insurance— Our firm has sufficient coverage to cover willful or negligent acts or omissions of any partner or employee. 5. Professional Education Program — All accounting personnel receive 24-32 hours of continuing education at a minimum. At least 16 of these hours are accounting and auditing updates, part of which qualifies as governmental. All non -licensed individuals that contribute time to governmental clients are closely supervised by a partner or senior staff member who must obtain 80 hours of accounting and auditing, with 24 hours of these being directly related to governmental audits, every two years. a. The partner in charge and audit senior who will be involved with the audits both have either met or exceeded the 80 hour accounting and auditing requirement. b. The partner in charge and audit senior who will be involved with the audits have either met or exceeded the 24 hour governmental audit specific requirement. c. The firm receives both internal and external continuing public education. Each year we have a two day, in-house seminar for our annual accounting and auditing update. At least one of these full days qualifies as governmental specific. Other hours are obtained through webinars and external seminars or conferences. 6. Certificate of Interested Parties Form 1295 — See the attached form. 7. Firm Qualifications and Experience - Roloff, Hnatek and Co., L.L.P., is a local public accounting firm located in Victoria, Texas. The firm consists of five partners, seven staff accountants and six support personnel. Two of the partners and five of the staff accountants have significant experience with governmental audits. Chris Janceek, partner in charge, and Brenda Roth, senior audit staff member will be working fulltime on the audit, with the possibility of two other staff members assisting. The firm has not provided any assistance that has led to the achievement of the Certificate of Achievement for Excellence in Financial Reporting offered by the Government Finance Officer's Association, but we are eager to learn the requirements and assist the County in achieving this goal. We received a peer review in July, 2013 and the report was unqualified (copy attached). We are scheduled to receive another peer review in August, 2016. At least one governmental entity was reviewed in 2013. No disciplinary action has been taken against the firm during the last three years. -2- 8. Partner, Supervisory, and Staff Qualifications and Experience — Christopher R. Janeeek, Partner in Charge — Chris has a CPA license as well as investment licenses. He is also a member of the AICPA and is a member and a past president of the Victoria Chapter TSCPA. He has over ten years general auditing experience, and has supervised and/or assisted in the majority of the Firm's city and county audits over the past ten years. He has a bachelor's degree in accounting and MBA from the University of Texas at San Antonio. He has a working knowledge of GAS, single audits, and OMB Circular A-133. Brenda K. Roth, Senior Audit Staff — Brenda also holds a CPA license, is a member of the AICPA and is a member and a past president of the Victoria Chapter TSCPA. She has a bachelor's degree in accounting and MBA from the University of Houston at Victoria. She has six and a half years general auditing experience and five years governmental auditing experience, including cities and counties. She has a working knowledge of GAS, single audits, and OMB Circular A-133. Additional Staff — The firm has 4 additional staff members with over five years of experience auditing governmental entities. Additional staff will be chosen based on availability and expertise in audit areas. The staff will be closely supervised by the partner in charge and senior audit staff member. Christopher L. Culak, Advisory Partner - Chris also holds a CPA license, is a member of the AICPA and is a member and a past president of the Victoria Chapter TSCPA. He holds a degree in accounting from Southwest Texas State University. He has supervised and/or assisted in the performance ofthe audits of majority ofthe governmental and non-profit entities that Roloff, Hnatek & Co., L.L.P. has audited over the past twenty-five years. He has a working knowledge of GAS, single audits, and OMB Circular A-133. He has received the AICPA's Certificate of Educational Achievement for Governmental Accounting and Auditing. Audit quality has been a focus of the firm since its inception. This starts with the partner in charge being focused on quality of work first and foremost. Staff is led by example, knowing their work will be looked at in detail by the partner in charge during review. The firm has an annual quality control review, annual employee evaluations, and a peer review every three years. In addition to the partner in charge having extensive governmental experience, Chris Culak, another partner at the firm, is at our disposal to consult with if any unusual issues may arise. 9. Thorough Knowledge of Local Government Operations and Specific Knowledge of the County Organization - Roloff, Hnatek and Co., L.L.P. completed the audits of Goliad County and Goliad County Juvenile Probation for the years ended September 30, 2012 and 2011 (County) and August 31, 2012 (Juvenile Probation). The audit was conducted in Goliad County and the primary contact was Susana Moron (361-645-3345). Although the partner in charge of the audit, Ted Goranson, has since left the firm, both Chris Janeeck and Brenda Roth worked on the audits. The September 30, 2012 report is included in this proposal. 10. Similar Engagements with Other Government Entities —The following audits have been completed during the last five years. a. City of Goliad—Full scope audit, approximately 330 hours annually, from September 30,2010 through September 30, 2015. Current contact is Sherry Cathey, Finance Officer (361-645- 3454). b. City ofNordheim — Full scope audit, approximately 100 hours annually, from September 30, 2012 through September 30, 2015. Current contact is Peggy Johnson, City Secretary (361-938- 5223). c. Refugio County Drainage District # I —Full scope audit, approximately 90 hours annually, from December 31, 2011 through December 31, 2015. Current contact is Danette Kelso, District Secretary (361-286-3521). d. Calhoun County Appraisal District —Full scope audit, approximately 230 hours annually, from December 31, 2011 through December 31, 2015. Current contact is Jesse Hubbell (361-552- -3- 4560, ext. 208). e. Midcoast Family Services — Full scope, yellow book, single audit, approximately 175 hours annually, from August 31, 2014 through August 31, 2015. Current contact is Ginny Stafford, CEO (361-575-4842). f. More than 10 school district audits have been performed annually for many years. Please contact me if you are interested in the details. I L Specific Audit Approach -The financial statement audit of the County will be performed to determine whether (1) the financial statements present fairly the financial position, results of operations, and cash flows or changes in financial position in accordance with accounting principles generally accepted in the United States of America, and (2) whether the County has complied with laws and regulations for those transactions and events that may have a material effect on the financial statements. The financial related audit will also include determining (1) whether financial reports and related items are fairly presented, (2) whether financial information is presented in accordance with established or stated criteria, and (3) whether the County has adhered to specific financial compliance requirements. As part of the audit of the County's basic financial statements, we will obtain an understanding of the County's internal control and report any significant deficiencies relating to it that come to our attention. To comply with Office of Management and Budget Circular A-133, a study and evaluation of internal controls of the County will include internal accounting and administrative controls for all major federal awards or at least 25% of all federal awards if expenditures for major programs are less than 25% of total federal awards expenditures. Any significant deficiencies noted during our study and evaluation of internal controls will be reported. As part of the audit of the basic financial statements, transactions and records pertaining to federal and state awards will be tested for material compliance with applicable federal and state laws, rules and regulations, and all significant instances of noncompliance will be reported to the County. a. See the attached schedule detailing hours. This is a very rough estimate but is used to provide us with an idea of how much time may be used in each area. b. Audit staff will include Chris Janecek, Partner in charge, Brenda Roth, Senior Audit staff member, and possibly two of the Firm's available four staff members with over five years governmental audit experience. We estimate that 60-70% of the audit will be completed on site in Calhoun County offices with the remaining portion being completed in our offices in Victoria. General procedures, some risk assessment, confirmations, write-up, and review will be the items most likely completed in our office. Our goal will be to complete as much as possible before we ever get to your office in late April. This can also be adjusted to your preferences. c. Staff time in subsequent years is assumed to be similar to the first year but is subject to change based on the results of the initial audit. d. Sample testing and statistical sampling may be used in certain areas of the audit. This will be determined once more detail on the accounts present has been received. e. We utilize paperless audit software, so the more information we can be provided in electronic format, the more efficient our audit will be. This also allows us to complete more work offsite. f. Analytical comparison of income and expenses between years as well as analytical review of certain ratios will be used throughout the audit for testing. g. Laws and regulations that will be subject to testing for compliance will be determined when each audit section is started. Our audit programs, as well as prior governmental experience, will guide us in determining what will be tested and to what extent. h. The approach to determining audit samples will be made once the data is available for testing. h We use encrypted email services to transmit any sensitive data. If there are issues with sending or opening emails, we will find an alternate method for ensuring the safety of your information. We are completely aware of each client's desire to keep their information private and we will go to any length to keep the information safe. j. We prepare the annual financial report for nearly all of our engagement; clients, including the audit report, financial statements, footnotes, etc. We consider this to be an integral part of the process. 0 PRICE PROPOSAL INFORMATION Based on our estimates, we anticipate the following: a. We expect the audit to take between 325-375 professional hours. This will be divided amongst the partner in charge, senior audit staff, and any additional staff we deem necessary to complete the audit efficiently and effectively. b. Hourly billing rates range between $100 and $135 per hour. We anticipate the annual fee for the County audit to be between $38,900 and $41,900. The addition of single audit procedures would cost between $2,000 and $4,000 depending on the nature of testing that would be involved. We anticipate the annual fee for the Juvenile Probation audit to be between $3,900 and $4,100. c. The fee will not exceed the high end of the range provided barring any unforeseen circumstances. d. We do not expect any additional costs for the County. We include everything set forth in the request for proposal as well as availability throughout the year by phone or email for accounting related questions. We will also assistance with application of any new GASB requirements. The only circumstance where there would be additional costs would be an unforeseen complicated issue or failure on the County's part to provide complete or timely information. 2. Periodic billing, as preferred by the County, would be acceptable terms of payment for the firm. Future optional terms would be calculated based on prior results and the current business environment for the firm. As with most things, our costs increase every year, therefore, we must marginally increase fees occasionally but barring any significant changes there shouldn't be any drastic increases. -5- FARRIS & FARRIS, CPA'S CERTIFJED PUBLIC ACCOUNTANTS System Review Report July 29, 2013 To the Partners Roloff, Hnatek & Co., LLP and the Peer Review Committee of the Texas Society of Certified Public Accountants VAUL W. FARRIS, OVA aERRA E. FARRI; CPA 13434leo"OA,M-2bA curpuschs6H, rx 28230 (361)24-0656 F=1361)241,0SS8 f.Ag4 ° . We have reviewed the system of quality control for the accounting and auditing practice of Roloff, Hnatek & Co., LLP (the firm) in effect for the year ended March 31, 2013. our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the fum's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www,alcoa.org/prsummary As required by the standards, engagements selected for review included engagements performed under the Government Auditing Standards and audits of employee benefit plans. in our opinion, the system of quality control for the accounting and auditing practice of Roloff, Hnatek & Co., LLP in effect for the year ended March 31, 2013, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficlency(fes), or fail. Roloff, Hnatek & Co., LLP has received a peer review rating of pass. Farris & Farris, CPA's -6- CALHOUN COUNTY RESPONSE TO RFQ Professional Audit Services 1. FIRM NAME: Roloff, Hnatek & Co., L.L.P. 2. BUSINESS ADDRESS: 120 S. Main Ste. 300 Victoria, TX 77901 3. TELEPHONE, WITH AREA CODE: 361-578-2915 FAX, WITH AREA CODE: 361-578-7058 E-MAIL ADDRESS: cjauecek@ncellp.com INTERN ET U RL ADDRESS: www.rhellp.com 4. TYPE OF ORGANIZATION: (CHECK ONE) a. SOLE PROPRIETORSHIP ( ) h. PARTNERSHIP (� c. CORPORATION ( ) d. JOINTVENTURE ( ) S. PRINCIPALS OF FIRM: NAME a Christopher Culak �. Llovd Hurst C. Russell Hodon d Christopher Sanecek e, Mary Ann McAdams DEGREE OR CERTIFICATE CPA CPA CPA INSTITUTION TSBPA TSBPA TSBPA CPA TSBPA CPA TSBPA -7- CALHOUN COUNTY RESPONSE TO RFQ Professional Audit Services SUBMITTED BY: SIGNATURE: DATE: PRINTED NAME: Christopher Janecek TITLE: Partner FIRM NAME: Roloff, Hnatek & Co., L.L.P. PRIVACY NOTIFICATION The principal purpose for requesting the information an this form is for use in the selection process for professionals approved by the County. Furnishing all information requested on this form Is mandatory. Failure to provide such information will delay or may even prevent completion of the action for which the form is being filled out. information on this form will be used by the County for its evaluation In the consideration of approval of professionals. if you consider any portion of your response to this RFQ to be privileged or confidential by statute or judicial decision, Including trade secrets and commercial or financial information, clearly identify those portions. Responses to this RFQ will be opened In a manner that avoids disclosure of the contents to competing offerors and keeps the Request for Qualifications secret during negotiations. All responses are open for public inspection after the contract is awarded, but trade secrets and confidential information in the Request for Qualifications are not open for inspection. The County will honor your notations of trade secrets and confidential information and decline to release such information initially, but please note that the final determination of whether a particular portion of your proposal is In fact a trade secret or commercial or financial information that may be withheld from public inspection will be made by the Texas Attorney General or a court of competent jurisdiction. in the event a public information request is received for a portion of your proposal that you have marked as being confidential information, you will be notified of such request and you will be required to justify your legal position in writing to the Texas Attorney General pursuant to Section 552.305 of the Government Code. In the event that it is determined by opinion of the Texas Attorney General or a court of competent jurisdiction that such information is in fact not privileged and confidential under Section S52.110 of the Government Code and Section 262.049 of the Local Government Code, then such infomation will be made available to the requester. Marking your entire proposal CONFIDENTIAUPROPRIETARY is not in conformance with the Texas Open Records Act me CALHOUN COUNTI' RESPONSE TO RFO Professional Audit Services COST ESTIMATE SHEET This form must be returned with your proposal. FIRM NAME: Roloff, Hnatek & Co., L.L.P. CALHOUN COUNTY AUDIT Maximum Fee: Governmental Audit Fiscal Year Ending December 31,2016 $ 35,900-$41,900 Fiscal Year Ending December 31 2017 $ 38,900 - $ 41.900 Fiscal Year Ending December 31, 2018 $ 38,900 - $ 41,900 Single Audit CAFR + $ 2,000 - $ 4,000 + $ 2,000 + $ 2,000 - $ 4,000 + $ 2,000 + $ 2,000 - $ 4,000 + $ 2,000 indicate the methods that would be used to calculate costs for future optional terms. Include detail of price including number of staff and staff hours that will be committed to the audit. See Response to Ws 1-3 on page 5 CALHOUN COUNTY JUVENILE PROBATION AUDIT Maximum Fee: Governmental Audit Fiscal Year Ending August 3 t 2016 $ 3,900 - $ 4,100 Fiscal Year Ending August 31, 2017 $ 3.900 - $ 4.100 Fiscal Year Ending August 31,2018 $ 3,900 - $ 4,100 Indicate the methods that would be used to calculate costs for future optional terms. Include detail of price including number of staff and staff hours that will be committed to the audit. See Response to U's 1-3 on page 5 CERTIFICATE OF INTERESTED PARTIES FORM 3.295 l of l Complete Nos. 1- 4 and 6 if there we interested parties. OFFICE USE ONLY Complete Nos.1, 2; 3, 5, and 6 if there are no Interested parties, CERTIFICATION OF FILING Certificate Number: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. 2016-99109 Roloff, Hnatek and Co., LLP Victoria, TX United States Date Filed: 08115/2016 2 Name of governmental entity or state agency that Is a party to the contract for which the form Is being filed. Calhoun County Date Acknowledged; 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to he provided under the contract. 12312016 Financial Statement Audit 4 Nature of interest Name of interested Parry City, State, Country (place of business) (check applicable) Controlling Intermediary Haden, Russell Victoria, TX United States X Janecek,.Christopher Victoria, TX United States X Culak, Christopher Victoria, TX. United States X Hurst, Jr., Lloyd Victoria, TX United States X 5 Check only If there Is No Interested Party. ❑ 6 I swear, or affirm, under penalty of u that the above disclosure is true and correct. M. P y perjury, DOROTHY G STRELD2YK Notary 10 # 3477286 My Commission Expires n June 12, 2020 X Signature. of authorized agent of contracting business entity AFFIX NOTARY STAMP / SEAL ABOVE Sworn to and subscribed before. me, by the said 01491 S5IOf 4EP- \,7A,OGCE/L ; this the day of 20 / 0 , to certify which, witness my hand and seal of office.. oC4 l��) J Do.4o I.N y /I0TA-9Y Puo L-t c: _Signature oftbificer administering oW(K Printed name of officer administering oath Title of officer administering oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us -- VersionV1.0.277 - CALHOUN COUNTY, TEXAS AUDIT PROPOSAL FOR THE YEARS ENDING DECEMBER 31, 2016, 2017 AND 2018 WITH THE OPTION TO RENEW FOR YEAR TO YEAR ENGAGEMENT CONTACrPERSON: Wayne R. Beyer, C.P.A. (Owner) P.O. Box 366 Pleasanton,Texas 78064 (830) 569-8781 Datc submitted: August 10, 2016 CALHOUN COUNTY, TEXAS AUDIT PROPOSAL FOR THE YEARS ENDING DECEMBER 31, 2016, 2017, AND 2018 WITH THE OPTION FOR YEAR TO YEAR ENGAGEMENT BEYER & COMPANY CONTACT PERSON: Wayne R. Beyer, C.P.A. (Owner) P.O. Box 366 Pleasanton, Texas 78064 (830) 569-8781 Date submitted: August 10, 2016 CALHOUN COUNTY, TEXAS AUDIT PROPOSAL FOR THE YEARS ENDING DECEMBER 31, 2016, 2017, AND 2018 WITH THE OPTION FOR YEAR TO YEAR ENGAGEMENT TABLE OF CONTENTS Mandatory Elements PAGE Independence License to Practice in Texas I Required Timeframe I Errors and Omissions Insurance I Professional Education Program I Certificate of interested Parties Form 1295 3 Technical Qualifications Firm Qualifications and Experience Partner, Supervisoiy and Staff Qualifications and Experience I Thorough Knowledge of Local Government Operations and Specific Knowledge of the County Organization 4 Similar Engagements with Other Government Entities 5 Specific Audit Approach - GFOA 6 Attachments Response to RFQ Cost Estimate Sheet Certificate of Interested Parties Form 1295 System Review Report Exhibit A PROFILE OF PROPOSING FIRM Mandatory Elements Independence Our standards require that we be without bias with respect to your operations. Beyer & Company (the Firm) is independent of Calhoun County, Texas (the County) and its component units, as defined by auditing standards generally accepted in the United States of America and the U.S. •General Accounting Offices' Gorerrimerrlal ,�tuditnag Slanclorcls. The Firm has had no prior relationships with the County or its component units in the past five years. As the Firm is required to follow GAO independence standards mentioned in the previous paragraph, any prior relationships would not constitute any conflicts of interest relative to performing the proposed audits. Also, tine Firm shall give the County written notice of any relevant professional relationships entered into during the period of this agreement. License to Practice in Texas 'rile Firm, and its entire CPA staff hold licenses to practice in the State of Texas. All licenses are in good standing. 'The Owner / CPA is in good standing with the Texas Society of CPA's and AICPA. Our professional staff and membership in professional associations indicates that the services we provide to Your County will be ofthe highest quality. Require(] Timefrarne Our firm has the ability to complete the audit; and submit the financial statements and auditors reports within the: time period specified in the scope of services in the Calhoun County, Texas Request for Qualifications Professional Audit Services. Errors and Omissions Insurance The Firm warrants that it has obtained an "errors and omissions" insurance policy providing a prudent amount of coverage for the willful or negligent acts, or omissions of any officers, employees or agents thereof. Professional Edncntion Program I Partner, Supervisory and Staff Qualifications and Experience Wayne R. Beyer, C.P.A. State of Texas, J.D. - Attorney Texas State Bar Owner and Principal Audit Supervisor t Member: AICPA, GFOA, and "texas Bar Association Experience: Mr. Beyer has experience in supervision of government and private audits where gross income of audited clients ranged Front $10,000 to $100,000,000. He has performed County and City governmental audits for thirty-eight (38) years. He is also heavily experienced in all facets of City and County auditing and in Federal and State laws pertaining to City and County government. Mr. Beyer has accumulated 120 hours / 15 days of external continuing education in governmental accounting and auditing during the past three years, and annually completes a 32 hour course on the GASB conducted by Professor Freeman. Mr. Beyer is also heavily experienced in audit report write-up including the GFOA Certificate of Achievement for Excellence in Financial Reporting Award. Page 1 Calhoun Coantyjexas RFQ 201E Glyn Stultz, C.P.A. State of Texas Audit Supervisor / Member: ACFE, TSCPA, GFOA Experience: Ms. Stultz has been in public and private accounting for twenty-four (24) years. She is experienced in internal control review, payroll, invoice examination, district and county clerks, receipts, receivables, accounts payable, debt, tax office, fixed assets, cash, grants and nunicipal court auditing. She has completed 120 hours / 15 days of external continuing education in governmental accounting and auditing during the past three years. Mary Shearrer, C.P.A. State of Texas Audit Supervisor/ Member: AICPA, GPOA Experience: Mrs. Shearrer has been in public accounting for six (6) years and has been involved in grant administration and school accounting for several years. She is experienced in internal control systems, prelininary analytical review, grants and Justice of the Peace auditing. She has completed 120 hours / 15 days of external continuing education in government accounting and auditing during the past three yeas. Ashley Bryce — Staff/ Bachelors degree in Business Administration Experience: Mrs. Bryce has been in Public Accounting for seven (7) years. She is experienced in invoice examination, receipts, revenues, receivables, debt, fixed assets, payroll, tax office and accounts payable auditing. She has completed 80 hours of external continuing education in governmental accounting and auditing during the past two years. Juanita Pacheco — Staff/ Associates degree in General Office Management Experience' Ms. Pacheco has been in public accounting for eight (8) years. She is experienced in invoice examination, receipts, revenues, debt, fixed assets, payroll and accounts payable auditing. She has completed 120 hours / 15 clays of external continuing education in governmental accounting and auditing during the past three yeas. Nancy Ante - Staff Experience: Mrs. Antu worked for the City of Pleasanton, Texas for thirty (30) yeas. She has been in public accounting for three (3) years. She is experienced in revenues / receivables, Justice of the Peace, Sheriffs Office, and Municipal Court auditing. She has completed 120 hours / 15 days of external continuing education in governmental accounting and auditing during the past three yeas. Lacii Spenrath - Staff Experience: Mrs. Spenrath is a certified paralegal; and has extensive administrative / secretarial skills. She has been in Public Accounting for foul' (4) years. She is experienced in revenues / receivables, invoice exann, .Justice of the Peace, Sheriffs Office, and Municipal Court auditing. Jim Hindes - Staff Experience: Mr. Hindes has been in Public Accounting for two (2) years; and was involved in School Accounting for several years, file is experienced in internal control systems and preliminary analytical review. ---_-- Page 2 Calhoun County, Texas RPQ 20 16 Certificate of Interested Parties Form 1295 Please see attachments. Technical Qualifications Firm Qualifications and Experience Beyer & Company was originally established by Ray Harris in George West, Texas in 1954; and has been auditing cities and counties since that time. The Firm has a professional staff of 10 in its Pleasanton and Simon offices, with all working on this engagement in a full time capacity. The two offices serve clients of all sizes; and 100% of our business is dedicated to serving the governmental industry. Our firm's significant governmental client base and the capabilities of our ability to serve you is evidenced 6y our personnel. The following surn marines the type of governmental services we provide: Governmental Client Base Our governmental client base is composed of cities, counties and other public entities. They are as follows: Audit services for approximately 30 cities and counties. - 3 government clients received the GFOA's certificate of achievement for excellence in financial reporting. The audit will be performed by our Pleasanton office, including field supervision and review. Audit services are provided on an annual basis for a total of approximately 40 clients including cities, counties, probation departments, appraisal districts, drainage districts, and water supply corporations. Our firm has committed all of out* staff to governmental services. The following table shows the number of our professional staff dedicated to governmental services by position within the Firm. Personnel Number of Number of Licensed _ Position Employees CPA's Owner I I Audit Manager/Senior 2 2 Audit 5 0 Support Staff 2 0 Total 10 3 Our substantial governmental client base and commitment of staff to Governmental Service has provided our fine with the competence to serve your County professionally and efficiently. Page 3 Calhoun Count Texas RFQ 201C Thorough Knowledge of Local Government Operations and Specific Knowledge of the Comlh, Organization AUDIT CLIENTS Client AuditYear Hours Audit Type Partner Location Aransas County 12/31/2015 250 Single Wayne Beyer Pleasanton Office Atascosa County 12/31/2015 275 Standard Wayne Beyer Pleasanton Office Austin County 09/30/2013 300 Standard Wayne Beyer Pleasanton Office Crockett County 12/31/2012 200 Standard Wayne Beyer Pleasanton Office Edwards County 09/30/2012 200 Standard Wayne Beyer Pleasanton Office Gonzales County 09/30/2015 250 Single Wayne Beyer Pleasanton Office Hill County 09/30/2012 300 Single Wayne Beyer Pleasanton Office Jackson County 09/30/2015 250 Single Wayne Beyer Pleasanton Office Kinney County 09/30/2015 225 Single Wayne Beyer Pleasanton Office Lavaca County 12i31/2015 250 Single Wayne Beyer Pleasanton Office Maverick County 09/30i2015 300 Single Wayne Beyer Pleasanton Office Real County 09/30/2014 200 Standard Wayne Beyer Pleasanton Office Refugio County 09/30/2015 250 Single Wayne Beyer Pleasanton Office SultowCounty 09,'30/2015 200 Standard Wayne Beyer Pleasanton Office Uvalde County 03/11/2015 275 Standard Wayne Beyer Pleasanton Office Wilson County 09/30/2015 200 Standard Wayne Beyer Pleasanton Office Calhoun County, Texas RPQ 201E Page 4 SIMILAR ENGAGEMENTS WITH OTIIER GOVERNMENT ENTITIES We completed the Annnal Financial Report and/m' the Single Audit, as applicable, for the following counties daring the Past five years. Wayne Beyer was the engagement Partner mt each of the audits. SCOPE NAME CONTACT PERSON OFWORK HOURS Atascosa County Ray Samson, County Auditor * AFA 200 Jourdanton, Texas 78026 (830) 769-3620 E In81I: atasCOsacOUlltVauditol'Ct)vnhoo.conl Jackson County Michelle Darilek, County Auditor * AFA, SA 250 Edna, Texas 77957 (361) 782-2072 Email: nl.d'trilek(Rco iackson.tx.us Kinney County Donieta O'Keeffe, County Auditor * AFA, SA 225 Brackettville, Texas 78832 (830) 563-2384 Email: kcaudito asbcalobal.net Lavaca County Shana Opela, County Auditor * AFA, SA 250 Hallettsville, Texas 77964 (361) 798-2711 Email: -�ela6 ttlavacacountv.net Maverick County, Texas Sandra Watkins, County Auditor * AFA, SA 300 Eagle Pass, Texas 78852 (830) 773-3708 ` Email: coaunorl@cco.maverick.tx.us Refugio County Margie Moeller, County Auditor * AFA, SA 250 Refugio, Texas 78377 (361) 526-22,15 Email: refugioauditol rcg.refu,io.tx.us Sutton County Maura Weingart, County Auditor AFA 200 Sonora, Texas 76950 (325) 387-5380 Email: suttonauditorla onoratx.net Uvalde County Alice Chapman, County Auditor * AFA, SA, GFOA 275 Uvalde, Texas 78801 (830) 591-0181 GFOA Entail: alChaPniFt❑;ll%❑yaldeeOnnt Wlln Wilson County Torn Dupnick, County Auditor * AFA 200 Floresville, Texas 78114 (830) 393-7304 Email. tom,dum! iel:��tno_wilson.tx=us San Patricio County Steve Elliott, District Manager * AFA, GFOA 150 Drainage District (361) 064-4268 Simon, Texas 78387 Email: Jjcddrtusbaz!obaLnct * AFA — Annual Financial Audit SA — Single Audit GFOA — Government Finance Officers Association Award for Excellence ----__---_�_--_-- - —_-- Pages Ca1110u11 County, 1'exas RFQ 2016 Specific Audit Approach We will audit the basic Financial statements of the County for the years ended December 31 in accordance with the following stanclards: - Auditing Standards Generally Accepted in the United States of America. Government Auditing Standards, issued by the Comptroller General of the United States. - US. 'Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non -Profit Organizations. Our audit will be for the purpose of expressing an opinion on the basic financial statements, and will include such auditing procedures as considered necessary to accomplish this purpose. We will also provide an "in -relation -to" opinion on the combining and individual fund financial statements, any Other supplemental information and statistical schedules. Weanticipate issuing the following reports: - Independent Auditor's Report on the basic financial statements. - Independent .Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with GorernmelrlAa1c9i1ingS10100rclS. (ifi'equired) - Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with 0.41BCh-culaTA-133. (if required) A summary of auditor's results and a Schedule of Findings and Questioned Costs, if any, required by 0AM Circidw-A-133 (if required). In addition, we will deliver to the County a management letter that will provide written appraisals of its accounting and related systems. This letter will identify any control deficiencies, significant control deficiencies or material weaknesses that are identified during the audit. This is a requirement of Statement on Auditing Standards 115, We will work with management before audit fieldwork and during the course of the audit to assess internal controls and review mitigating controls in place in an effort to reduce the control deficiencies, significant control deficiencies and material weaknesses that need to be reported to management in writing, assuming there are mitigating controls in place, The letter will also offer recommendations for the elimination of weaknesses that we identify, We will suggest any methods we discover to help improve efficiency and effectiveness. We will schedule an appearance with the Commissioner's Court that allows anopportunity for as to present the audit and management letter. Calhoun County, Texas RFQ 2016 --- ---__— --- --=Page 6 This is an excellent time for the County to resolve any questions they have regarding our audit or management letter. As mentioned earlier, the value in hiring our firm comes fi•om not only the audit, but from our experience and the education we can provide. As questions or concerns arise throughout the year, we encourage the County staff to contact us and draw on ourknowledge and experience. Non- significant deficiencies discovered during the audit process will be reported in a separate letter to management and the County. Such deficiencies will be referred to in the report(s) on internal controls. This separate letter also informs the Commissioner's Court of the following: The auditor's responsibility under auditing standards generally accepted in the U.S.A 7) Significant accounting policies. ;) Management judgments and accounting estimates. 4) Significant audit adjustments. 5) Other information in documents containing audited financial statements. G) Disagreements with management 7) Management consultation with other accountants. S) Major issues discussed with management prior to retention. 9) Difficulties encountered ill performingtile audit. The Firm utilizes Excel. Word, and Adobe software systems. Workpaper Retention All working papers and reports will be retained at the Firm's expense for a minimum of 've years, unless the Firm is notified in writing by the County of the need to extend the retention period. The Firm will be required to make working papers available, upon request, whether or not the Firm is engaged by the County, to the following parties or their designees: 1) Calhoun County. 2) Texas Office of State Auditor. 3) U.S. General Accounting Office (GAO). a) Parties designated by the Federal or State governments or by the County as part of an audit quality review. process. S uccessor Aud i tors In addition, the Pirm shall respond to the reasonable inquiries of successor auditors and allow successor' auditors to review working papers relating to matters of continuing accounting significance. Level of Staff and Hours Assigned to Segment Our approach to the audit of your County can be demonstrated by the level of staff assigned to each segment of the Audit as well as our segmentation of the audit into the major steps to be performed. Houl's Date ( Segment Partner Suoervisor Staff Secretarial 3 Total 35 — Preliminary fieldwork~ ? 15 IS 72 14 118 Fieldwork. S 74 24 5 44 Report preparatimlh'eviety 12 3 - 2 Exit conlerelee and draft discussion 2 - _ ' 1 r Presentation at Commissioner's Cout I - _ nteeting 25 42 ill 22 200 Total hours Page 7 Calhoun County, Texas RPQ 2016 Organization of Audit Team Our audit team is organized into different sections — preliminary audit, final audit, confirmations and excerpt of the minutes, and audit write up and presentation. Staff members assigned to the preliminary audit section are Mary Shearrer and Jim Hindes. This section takes approximately two clays in the field and one day in the office; and is about 17% of the audit. Staff members assigned to the final audit section are Wayne Beyer, Glyn SLultz, Nancy Antu, Juanita Pacheco, and Ashley Bryce. This section takes approximately three to four days in the field and one clay in the office; and is about 49% of the audit. Staff members assigned to the confirmations and excerpt of the minutes section are Lacii Spenrath and Sharilyn Kirkland. This section takes approximately three to four clays in the office and is about I I % of the audit. Staff members assigned to the audit write up and presentation section are Wayne Beyer, Glyn Stultz, Ashley Bryce and Sharilyn Kirkland. This section takes approximately three to four days in the office; and is about 23% of the audit. FUNCTION Preliminary Audit Final Audit Invoice Examination Fixed Assets Payroll Justice of the Peace Receipts County / District Clerk Tax Office Sheriff Revenues Confirmations and Excerpt of the Minutes Excerpt of OI I is ial Minutes MGCCllaneen5 Audit Completion FOR FUNCTION Flours FUNCTION 35 35 17% 24 s s 8 8 16 8 8 96 49% 3 16 6 22 11% 47 47 23% TOTAL 200 200 100% Calhoun County, Texas RFQ 2016 Page 8 SCOPE SECTION We will be conducting our audit on the following: Preliminary Audit: We will perform an internal control review of the entire County, which includes interviews with County staff along with examining contracts, grants, bond ordinances, other ordinances, fraud review, function cycles (receipts, billings, accounts payable, etc.). (Approx. 35 hours) Excerpt of Official Minutes: We will examine the Cotmty's Official minutes for the audit year through the year end audit date. (16 hours) Invoice Examination: We will examine purchase invoices for the audit year through the year end audit date. We will obtain a sample from the General Ledger Accounts. (24 hours) Fixed Assets: We will examine several fixed assets. (8 hours) Payroll: We will perform audit procedures on payroll which include examining pay rates, hours worked, employer and employee signatures, 941's, W-3, etc. (8 hours) Justice of the Peace Offices: We will examine a sample of reports and respective receipts issued during - the audit year. (8 hours) Sheriff's Office: We will examine a sample of reports and respective receipts issued during the audit year. (8 hours) County 1 District Clerk: We will examine a sample of reports and respective receipts issued during the audit year. 16 hours) Receipts: We will examine a sample of miscellaneous receipts issued during the year and prepare receipt confirmations on same. (8 hours) Revenues: We will perform an examination of the County's revenue collections and receivables. (8 hours) Tax Office: We Nvili perform an examination of the current and delinquent tax roll. (8 hours) Miscellaneous: We will review and conlirnl information about the County's attorney, bank accounts, insurance, etc. (6 hours) Audit completion and presentation: write-up, processing, organir_ing, and presentation. (47 hours) We will use information provided by the County's printout of their detailed general ledger, budget materials, and working trial balances of County Funds. Page 9 Calhoun County, Texas RFQ 2016 CALHOUN COUNTY RESPONSETO RFQ Professional Audit Services 1, FIRM NAME: Bever & Company - 2. BUSINESS ADDRESS: 442W.Oaldawn Pleasanton Texas 78064 3. TELEPHONE, WITH AREA CODE: . (830) 56M781 FAX, WITH AREA CODE: (830) 56M776 E-MAILADDRESS: beverandcoCa sbWlobal net INTERNET URL ADDRESS: 4. TYPE OF ORGANIZATION: (CHECK ONE) a. SOLE PROPRIETORSHIP (X ) b. PARTNERSHIP ( ) c. CORPORATION ( ) d. JOINTVENTURE ( ) 5. PRINCIPALS OF FIRM: DEGREE OR NAME CERTIFICATE INSTITUTION Justice Degree University of Arkansas a. Wayne R. Bever Masters Degree University of Wisconsin Bachelors Degree University of Wisconsin b. C. d. e. CALHOUN COUNTY RESPONSETORFQ Professional Audit Services SUBMITTED BY: SIGNATURE DATE: III 'I(k e t�biaia°,� PRINTED NAME 111113 FIRM NAME: Beyer & Company PRIVACY NOTIFICATION The principal purpose for requesting the information on this form is for use in the selection process for professionals approved by the County. Furnishing all information requested on this form is mandatory. Failure to provide such information will delay or may even prevent completion of the action for which the form is being filled out. Information on this form will be used by the County for its evaluation in the consideration of approval of professionals. If you consider any portion of your response to this RFQ to be privileged or confidential by statute or judicial decision, including trade secrets and commercial or financial information, clearly identify those portions. Responses to this RFQ will be opened in a manner that avoids disclosure of the contents to competing offerors and keeps the Request for Qualifications secret during negotiations. All responses are open for public inspection after the contract is awarded, but trade secrets and confidential information in the Request for Qualifications are not open for inspection. The County will honor your notations of trade secrets and confidential information and decline to release such information initially, but please note that the final determination of whether a particular portion of your proposal is in fact a trade secret or commercial or financial information that may be withheld from public inspection will be made by the Texas Attorney General or a court of competent jurisdiction. In the event a public information request is received for a portion of your proposal that you have marked as being confidential information, you will be notified of such request and you will be required to justify your legal position in writing to the Texas Attorney General pursuant to Section 552.305 of the Government Code. In the event that it is determined by opinion of the Texas Attorney General or a court of competent jurisdiction that such information is in fact not privileged, and confidential under Section 552.110 of the Government Code and Section 262.049 of the Local Government Code, then such information will be made available to the requester. Marking your entire proposal CONFIDENTIAUPROPRIETARY is not in conformance with the Texas Open Records Act. CALHOUN COUNTY RESPONSETORFO Professional Audit Services COST ESTIMATESHEET This form must be returned with your proposal. FIRM NAME: Bever & Company CALHOUN COUNTYAUDIT Maximum Fee: Governmental Audit Single Audit CAFR Fiscal Year Ending December 31, 2016 $18,520 $5 000 $1 000 Fiscal Year Ending December 31, 2017 $18 520 $5 000 $1 000 Fiscal Year Ending December 31, 2018 $18 520 $5 000 $1 000 Indicate the methods that would be used to calculate costs for future optional terms. Include detail of price including number of staff and staff hours that will be committed to the audit Any additional years' prices will be based on supplementary auditing procedures (GAS or GAGAS)perfornied Costs are not likely to exceed $1 000.00 CALHOUN COUNTYJUVENILE PROBATION AUDIT Maximum Fee: Governmental Audit Fiscal Year Ending August 31, 2016 $5.000 Fiscal Year Ending August 31, 2017 $5 000 Fiscal Year Ending August 31, 2018 $5,000 Indicate the methods that would be used to calculate costs for future optional terms. Include detail of price including number of staff and staff hours that will be committed to the audit. Any additional Years' prices will be based on supplementary auditing procedures (GAS or GALAS) performed. Costs are not likey to exceed $1 000.00. CERTIFICATE OF INTERESTED PARTIES FORM 1295 tell Complete Nos. 1- 4 and 6 if there are interested parties. OFFICE USE ONLY Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. CERTIFICATION OF FILING Certificate Number: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. 2016-95357 Beyer & Co., CPA's Pleasanton, TX United States - Date Filed: 2 Name of governmental entity or state agency that Is a party to the contract for which the form is 08/05/2016 being filed. Calhoun County Date Acknowledged: 3 Provide the identification number used by the governmental entity or state agency to track or identify description of the services, goods, or other property to be provided under the contract, the contract, and provide a 1 annual financial audit Nature of interest 4 Name of Interested Party City, State, Country (place of business) (check applicable) Controlling I Intermediary 5 Check only if there is NO Interested Parry. ❑ X 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. „ o LACII A. SPENRATN jg Notary Public, State of Texas (/1� +' 4 i ymwE My Commission Expires nuun April 20, 2017 ignature of 5utho r1a agent of contracting business entity AFFIX NOTARY STAMP / SEAL ABOVE Sworn to and subscribed before me, by the said i6�11 U ��G f\ • UY. U P,( , this the �'J- day of , 20 , to certify which, witness my hand and seal 01i office. ignature of officet administering oath Printed name of officer dministering oath Title of offic r administering oath Forms provided by Texas Ethics Commission www.ethics,state.ix.us Version V1.0.277 Askew t2 (mom COrtified Public Accountants, System Review Report November 22, 2013 To the Owner of Beyer & Co. and the Peer Review Committee of the Texas Society of Certified Public Accountants We have reviewed the system of quality control for the accounting and auditing practice of Beyer & Co. (the firm) in effect for the year ended May 31, 2013. Our peer review was conducted in accordance with the Standards for Performing and Reporting.on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance for performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.org/prsummary. As required by the standards, engagements selected for review included engagements performed under Government Auditing Standards. In our opinion, the system of quality control for the accounting and auditing practice of Beyer & Co, in effect for the year ended May 31, 20t3, has been suitably designed and complied with to provide the tine with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deflciency(ies), or fail. Beyer & Co. has received a peer review rating of pass. 1 Acker & Company Certified Public Accountants, PC Exhibit A 1514'Pl. Grande 3lvd. iyfer, Y 73743 hor�>: (003) 592-1584 , Fax: ;003) 92-. F,91 on m whitleypenn 3411 Riclunond Avenue, Suite 500 Houston,Texas 77046 713-621-1515 Cluistopher L. Breaux, CPA cluistopher.breaua 4,whitteypenn.com 713-906-0250 (Cell) Calhoun County, Texas Request for Qualifications for Professional Audit Services rrC p®� Governmental 6 r ° ` ' Audit Quality Center Transmittal Letter 1 Executive Summary 2 Mandatory and Technical Elements 5 Mandatory Elements 7 Technical Elements 8 Client Acceptance Procedures 8 Biographies 19 Similar Engagements with Other Government Entities 27 Specific Audit Approach 30 Price Proposal Information 43 Appendices Peer Review Report Sample CAFR Form 1295 Cost Estimate Sheet Response to RFQ Forms 44 46 46 47 48 49 Gj whitleypennum August 18, 2016 To the County Judge, Commissioners Court and Management Calhoun County, Texas We are pleased to submit our qualifications to objectively provide professional audit services for Calhoun County to audit the financial statements for the fiscal years ending December 31, 2016, 2017 and 2018 with an option to renew for one-year terms at the discretion of the Commissioners' Court. Our firm welcomes this opportunity to describe out capabilities and to provide evidence of our sincere desire to serve you. We believe our proposal demonstrates our resources, governmental accounting experience and philosophy of providing superior service to our clients. We confirm that Whitley Penn is independent of Calhoun County; Texas as defined by both auditing standards generally accepted in the United States of America and Government Auditing Standards (2011 Revision) issued by the Government Accountability Office. That is, we do hot have a direct or indirect financial interest or relationship with the County, Memorial Medical Center or its management which might impair our firm's independence and objectivity. Whitley Penn and all key professional staff are properly registered/licensed to practice public accounting in the State of Texas. The firm has not been notified of any disciplinary action being taken or pending against it in the past three years with state regulatory bodies or professional organizations. Whitley Penn, is not currently under the terns of a public or private reprimand by the Texas State Board of Public Accountancy and/or licensing boards of other states. We appreciate the opportunity to introduce our firm to serve Calhoun County and we look forward to meeting with you to discuss further our service philosophy, approach, and methodology. Our proposal is a firm and irrevocable offer for 90 days subsequent to August 18, 2016. Sincerely, 11:�Irl kt-� Chdsto e :Breaux; CPA Partner Audit Services - Public Sector Whitley Penn, LLP 3411 Richmond Avenue, Suite 500 Houston, Texas 77046 chtistopher.bfeam@whideypenn.com 713-906-0250 f:.. �a �A q= a The following specific points demonstrate out qualifications and the benefits to you; 'ME Significant Texas Governmental audit and consulting experience. Work in the area of Texas municipalities is a significant portion of out fitm's practice. We currently save as auditors for over 80 governmental entities.. Our partners have been recognized for their expertise and have conducted seminars on various governmental accounting, auditing and financial reporting topics for the Texas Society of CPAs, other CPA firms, the Texas Association of School Business Officials, Texas Municipal League, and the Government Finance Officers Association of Texas. M ll As you will see in our statement of qualifications, we have extensive experience working with counties and governments with complex federal and state grant funding environments_ Our public sector team is dedicated to serving governmental entities year-round. We have significant experience with and take great pride in understanding governmental reporting requirements in order to assist out clients in retaining their Certificate of Achievement for Excellence in Financial Repotting awarded by the GFOA. tail m Our proposal includes experienced engagement leadership at the partner and manager levels. Whitley Penn offers three partners, with experience ranging from 15 to 40 years, who are dedicated to counties and other governmental entities, We have management staff that is dedicated to our public sector and who receive annual training in government auditing and reporting. Our firm is also in the process of planning and performing the services you have requested for our existing governmental audit clients. We have extensive experience in performing management and performance review services for Texas state agencies, for agencies in other states and for governments in Texas and other states. RN lm In addition to providing quality, timely audit services, we also offer other services, as auditing standards permit, such as organizational reviews, cost-cutting measures, business process improvement, information technology control reviews, internal control reviews, forensic investigations, agreed -upon procedures, and 8 hours of complimentary training for the County's staff. wig We have followed and studied the 'Office of Management and Budget's new Uniform Giant Guidance that will affect any grants awarded on or after December 26, 2014. We have presented on this topic for the Texas Society of CPAs Single Audit Conference. We have also been working with the AICPA Governmental Audit Center to ensure that out clients and our auditors apply the provisions of GASB No, 68 Accounting ancd Financial Repoiting for Penjiors An A,nendmeul of GASB No, 27, GASB No. 71 Pension Transition for Conliihithons Made Subsequent to the Measurement Date—att antendiuelttofGASB No.68, GASB No. 74P'inajicialReportingforPostenrployntentBenefitPlms OtherTban Pension Plaits, GASB No, 75 Accounting and 1"'iamrclal Aefiaixing for Porletrrploymeitt Ben fts Other Tian Pensio u, and GASB No. 77 Tax ABatemew Ddselostnrs N whitley nr rM Our firm is approximately 310 people strong in the Dallas, Fort Forth and Houston areas with varied experience and knowledge. We have exceptionally low turnover in our firm as compared to other public accounting firms. This means that you can count on out firm and out people being available year after year to continue meeting your needs, which will improve efficiency and effectiveness. no isM For the past fifteen years Whitley Penn has consistently been named to the "Best of the Best" firms list by INSIDEPitblicAccatinting. Our firm is currently ranked #54 in the nation on the INSIDE PablicA, onnting list of Top 100 firms, based on 2015 rankings. INSIDE T ub&Accoundng is a national monthly publication that reports on the accounting industry. The rankings are based on fiscal and management metrics; such as quality, lack of litigation, retention, of clients and personnel, and growth. Through the years, Whitley Penn has also been recognized as one of the Top 100 Firms by ArwArwingTaday (currently ranked #54), one of the `Best Companies to Work For in Texas" by Texas Monthly, "Top 100 Places to Work" by the Dallas[14ornfngNops, `Best Places to Work" by the Houston Bnsings Journal, `Best of Fort Worth Awards" in the Accountants category by the Fort Worth Award Program Committee, among other awards. ON With Whitley Penn, you will receive "best of class" service from highly competent professionals.. It is out goal to attract and retain the very best employees so that we can continue to provide our clients with the very best service. We take great pride in the work we do for the public sector and We take great care to ensure quality work for our clients. W® We have a strong understanding of the work to be performed and will commit the resources necessary to assist the County Auditor's office staff in an efficient and effective manner, within the time period required. Our audit plan always includes communication with your staff management and Commissioners Court on a year-round basis to maximize our value to the County. We work hard to build and maintain a relationship with our clients. a ƒ/#ƒ}4f\AND TECHNICAL EI \ 2 \ \ :Q whi. #±22 :e Independence As auditors, we have a responsibility to maintain independence so that our opinions, conclusions, judgments, and recommendations will be impartial and will be viewed as impartial by knowledgeable third parties. With this responsibility in mind, we confirm that Whitley Penn is independent of the County and component units, including direct and inditect financial interest, as well as relationships of the proposed audit team to employees and Commissioners Court members; as defined by both auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Government Accountability Office. We have included the completed Conflict of Interest Questionnaire in the Appendices section of this proposal. License to Practice in Texas Whitley Perm and all key professional staff are properly registered/licensed to practice public accounting in the State of 'Texas. The firm has not been notified of any disciplinary action being taken or pending against it in the past three years with state regulatory bodies or professional organizations. Whitley Penn is not currently under the terns of a public or private reprimand by the Texas State Board of Public Accountancy and/or licensing boards of other states. As a firm heavily involved in providing professional auditing and consulting services to a wide variety of governmental and nonptofitentities, out reports and wotkpapers are always subject to review by both state and federal desk and field reviews. We have been successful in the past at receiving non - adverse desk and field reviews by stressing quality reviews and open and proactive communications with xegulatoxy cognizant agents/agencies. In order to demonstrate that we have no record of substandard work, we have provided a listing of clients, both present and past for you to contact. Required Tinieframe Out proposed audit team will include an engagement partner from our Public Sector division, an audit manager, a senior auditor and up to two support staff members. The assurance service managing partner will be available to the project team for assistance with planning activities :and in dealing with issues related to the audit and financial reporting. This staffing level allows our fnm to provide the necessary service quality and ability to conduct the audit in the titneftame based on the County's requirements. We do not anticipate any member of die engagement team to be employed on a part-time basis. A Whitley n -Insurance Whitley Penn has ettors and omissions insurance providing a prudent amount of coverage for willful or negligent acts, or omissions, Insurance coverage information is available upon request. Professional Education All of our staff have appropriate experience and educational backgrounds and complete a minimum of twenty to forty hours of continuing education related to governmental auditing, accounting, and reporting annually. This annual training is designed to be in accordance with U.S. General Accounting Office's Government Auditing Standards issued by the Comptroller General of the United States (the "Yellow Book"). All of our staff that we propose to be assigned to the County have appropriate experience and educational backgrounds and complete a minimum of twenty-four (3 days) to forty hours (5 days) of continatng education related to governmental auditing, accounting, and reporting annually and for the past 3 years. This annual training is designed to be in accordance with Governmental Accountability Offices Government Auditing Standards issued by the Comptroller General of the United States (the "Yellow Book"), Much of our staff training is internal in nature, supplemented with external training. Whitley Penn offers one-on-one training to the management and staff of our clients for everything from simple accounting procedures to areas such as payroll and bank reconciliations. Whitley Penn's Public Sector Team is well known in this industry for their knowledge and experience. As a result, our fitm!s partners are called upon to present to a variety of organizations such as the Texas Municipal League, the Government Finance Officers Association of Texas, the Texas Association of School Business Officials, the Texas Society of CPAs, and other CPA firms. Whitley Penn is also proud to offer this training to our clients. We proudly offer 8 hours of CPE each year foryour staff atno additional charge. Out team: stays abreast of changes in the government industry as well as the new accounting standards. We relay this information to our clients in a variety of ways. One of the best ways to stay "in the know" is to follow our blog, In The Black and to request out monthly e-newslettet (visit our web site for more information: whitleypenn.com) Client Acceptance procedures As part of the our client acceptance procedures, we will contact your predecessor auditor to review their fiscal year 2015 audit work papers. In addition, the firm requires a background check for the individuals signing the management representation letter. This typically includes those individuals taking responsibility for the financial statements. The process is handled by our Human Resources Director. An illustration of the process is included on the next page for your review. Whitley n \ a § % OJ �— Do f © 2d z 7k° P, o� : 7° I '� \ Firm Qualifications and Experience Whitley Penn is a ceni.� onal firm, comprised of offices in the Dallas, Fort Worth and Houston areas, comprised of 40 partners and approximately 270 exceptional employees with diverse experience and knowledge. Our Public Sector Audit Team includes 3 paimets, 5 managers, 8 senior staff and 15 staff. We feel this staffing level allows out firm to provide a wide variety of specialized services on a personal basis. All staff members assigned with be on a full-time basis. Although founded in 1983, the Firm has public sector auditing roots that stretch back into the early 1970's in Galveston, Harris and Fort Bend County. Local Staffing / Local Solutions Work on this engagement will be performed by professionals from our Houston office which is the home to the nucleus of out public sector practice with over thirty experienced professionals ready to serve our municipal clients, including 3 partners, 5 managers, 8 senior staff and 15 staff. While we have been blessed with very little turnover or attrition in the past few years, we are cognizant of the need to be ever mindful of retaining and recruiting great talent from major universities to ensure the continued quality of service our clients demand. Staffing of Project Our proposed audit team will include an engagement partner from out Public Sector division, an audit manager, a senior auditor and up to two support staff members. The assurance service managing partner will be available to the project team for assistance with planning activities and in dealing with issues related to the audit and financial reporting. We feel this staffing level allows out firm to provide the necessary service duality and ability to conduct the audit in the timeframe based on the County's requirements. Additionally we will have senior and staff accountants assigned to the engagement as necessary. We do not anticipate any member of the engagement team to be employed on a part-time basis. 'Continuity of Service One of the challenges we face as one of the fastest growing public accounting firms in the State of Texas is growth itself. We grow as a firm in large part because out people grow professionally. Out team is in a constant state of improvement in experience, knowledge, and responsibilities. We embrace this growth and we encourage promotions of staff commensurate with their talents and commitment to serving the industry and clients. To address this challenge, we focus more on continuity of service rather than continuity of staff. Out ability to address change is what sets our staff apart. While we are proud of the staff presented above, this group, along with firm management feels it is of prime importance to work tirelessly on training staff members to assume new roles as they grow as individuals and we grow as a'firm to ensure a continuity of service to the County for years to come: ME Whiney A detaillisting of clients where the film assisted the client or prepared the reports that received the Certificate of Achievement for Excellent in Financial Repotting from the Government. Finance Officer Association is located under "Similat Engagements with Other Government Entities." Quality Control Review Out firm is a member of Nexia International, a network of independent accounting and consulting firms with member firms in over 100 countries. Quality is a cornerstone of the services provided by any member firm of Nexia International. All member fines value highly both the good reputation they have in their marketplace as well as the good reputations that fellow member firms have elsewhere in the world. As a key part in promoting, maintaining and enhancing quality within Ne;da International, and in safeguarding our reputation, all member firms providing audit and assurance services are subject to a regular quality control review (QCR) as part of the terms of membership of Nesia International. Finns included within the QCR program are reviewed in accordance with the scope relevant to their local jurisdiction as follows: • A 3-year cycle for a Full Scope Review (FSR); and • A 6-year cycle for a Limited Scope Review (LSR). Our firm has completed a peer review performed by a selected firth in accordance with the AICPA's SEC Practice Section requirements. This peel review coveted the year ended April 30, 2015, and resulted in a rating of pass. The review included engagements performed under the Government Aitdiing Sirandatdr, We perform our internal inspections annually as required by program requirements. The frequency of peer reviews is every third year. We have included a copy of our most recent peer review letter in the Appendices section of this proposal. Federal or State Revimvs As a firm heavily involved in providing professional auditing and consulting services to a wide variety of govemmentat and nonprofit entities, our reports and workpapers are always subject to review by both state and federal desk and field reviews. We have been successful in the past at receiving non - adverse desk and field reviews by stressing quality reviews and open and proactive communications with regulatory cognizant agents/agencies. Whitley Penn has not received any disciplinary action taken or pending against the fum or out staff during the past three (3) years with state regulatory bodies or professional organizations. t WE whitleypenn 10 We have a risk advisory group that specializes in many areas but we believe they could add value to the County with the following services they provide: • Reviewing and improving your Information Technology (IT) processes requires the kind of policy and procedure reviews that reinforce a required, certified opinion. We offer the kind of authoritative insight that IT consulting firms can't match. At the same time, we will help you leverage and extend your IT infrastructure cost effectively. Our services encompass: * General controls review * Software selection + Fraud detection and analysis * Compliance readiness assessments • Disaster recovery and business continuity planning • Vulnerability assessments • This group also offers business process improvement services where neither size, industry nor geography is a limiting factor — we offer business process improvement for a full range of clients. In addition to the risk advisory group's abilities noted above, out own public sector auditors are also certified fraud examiners, certified internal auditors and/or have ten or more years of experience working in governmental operations as Chief Financial Officers. So they are wellversed with governmental entities' operations that can add so much value to the engagement. As such, if awarded, we believe we will be able to assist the County with the "value added" services. MR whitleypenno" 11 Christopher Brecmy preset,611911ps,JorsnvootherYardlt processes to loco/ govermnew off cials at a statewide conference, As a client of Whitley Penn you can expect to receive the highest quality of service. Here are just a few of the benefits out clients enjoy: The Whitley Penn Portal Confidentiality of information, whether in paper or, electronic form, is a concern for most clients: Whitley Perms portal provides a secure, convenientway to transfer data. Whitley Penn's portal is just one of the many tools in our toolbox that assist us in providing our valued clients with the best service available. Some of the benefits of Whitley Penn's portal include; • Maximum Security for Uploading and Downloading Files of All Sizes • Ability to Assign Access to Users Within Your Account • Convenient, Instant Access to Documents • Multiple Document Organization Tools Full Service Firm Our regional firm is approximately 310 people strong in the Dallas, Fort Worth and Houston areas with diverse experience and knowledge. In addition to our extensive team of experienced assurance professionals, our firm boasts many professionals experienced in Tax Compliance, Organizational Reviews, Risk Assessment, Business Process Improvement, Regulatory Matters, Finance -Related Consulting, and Forensic Services. With Whitley Penn as your firm, you will have access to the knowledge and experience of the entire E an. Accessibility of Our Team our team is available to you whenever you need us. We provide cell phone and email contact information so that you can always reach us when you have a need. We also understand that increasingly difficult auditing and reporting requirements now defy the "once-a-yeat visit" by a County's -audit 'firm. Our commitment to quarterly meetings with council and management is representative of our desire to assure the free flow of communications between the council, management and out audit team. We also welcome face-to-face meetings throughout the year when the audit is not in progress. You will ;not be billed for these conversations/meetings. We pride ourselves in building a partnership with our clients. We will help you tackle the difficult accounting items that you may face so that the audit process when we are in the field is seamless. W wh itleypennM 12 Partner, Supervisory and Staff Qualifications and Experience Below is a list of our public sector team. * Recommended principal personnel to be assigned. Partners Senior Manaeers/Manaeers Seniors Christopher L. Breaux, CPA * Dan Hernandez, CPA, CIA * Ailene Comple, CPA, CFE * Celina C. Miller, CPA Tom Pedersen, CPA Leslie Wilks, CPA, CFE Lupo Garcia, CPA ThaniaD. Gonzalez, CPA Laura Lynch, CPA Patrick Simmons, CPA Mandi Carter; CPA, CFE Nathan Johnson Eddie Juarez, Lauren Nelson Javed Soomar Supicha Sookaman In addition, to the team members listed above we have over 15 staff members that will assist these management team members with field work. All of our team members are solely dedicated to the governmental industry. We are very fortunate to have such a model that allows our team members to serve you as experts in this field. At Whitley Penn, we work tirelessly to ensure that out partners and staff are trained and suited for worldng within the Public Sector environment and are confident that our references provided will agree. We have included descriptions of out training and our past involvement in nationally recognized certificate of excellence programs in the Government Finance Officers Association. In 2007, our firm made the decision to dedicate staff to public sector engagements. It was a difficult task in that we have many clients in a variety of industries. In order to become experts, we developed public sector, and corporate teams that could focus on their industry groups and become leaders. We have been successful to continue this practice and it has made a significant difference in the manner we serve out clients. When our public sector auditors work on your engagement, they are familiar with government operations, fund types and the different types of measurement focuses that corn with those fund types. They do not have the difficulty ttansitioning from a corporate environment to a public sector ,environment because they ate fully immersed in the public sector arena. We are very proud of our model. Our public sector has chosen to work in this field because they believe in their governments' missions. While our main service to these governments comes in the form of auditing, we also service the public sector by providing education in many settings and also giving back to the public education. On the next page we have listed all of our activity in the public sector. 13 partner, Supervisory and Staff Qualifications anti Experience (continued) Christopher L. Breaux, CPA, Audit Partner ♦ TASBO Conference: March 1, 2016 ACT 202—Auditing Certification Course ♦ TASBO Webinar - GASB 68 and the New EDGAR: September 2015 ♦ TASBO Course—IvIGT 307::BtrrinessEtbicr—Octaber2014 North Central Texas Council of Governments —New and Emerging City Manager Training — Audit Training J anuary 2016 ♦ TSCPA School District Conference (State Wide) Planning Committee: 2005-Current f 'TSCPA Single Audit Conference (State Wide) Planning Committee: 2010-Current ♦ TSCPA 2015 Single Audits and Governmental Accounting Conference Implementing GASB 68- October 2015 ♦ Fort Bend County P-16 Math Collaborative ♦ Accounting and Finance Committee Research Committee ♦ Houston Galveston Area Council —Newly elected conference: Financial Operations Training- 2015 ♦ Whitley Penn, LLP Houston Client CPE - GASB 68 ♦ Whitley Penn, LLP Houston Client CPE - GASB 68 ♦ Gulf Coast TASBO=GASB 68 Celina Cereceres Miller, CPA - Audit Partner ♦ ACET Conference - Houston, Texas — Uniform Grant Guidance ♦ Texas Society of CPAs School District Conference— State Wide, San Antonio, Texas; June 2015 - Auditing IDEA B and June 2016 Fraud in Financial Statement Audit ♦ Texas Society of CPAs School District Conference State Wide; San Antonio, Texas, June 2015 — IDEA B MOE ♦ Texas Society of CPAs School District Conference —State Wide, San Antonio, Texas; June 2016 — Fraud Discussion: Oh the Things lVe baw Seen ♦ TSCPA School District Conference Planning Committee; 2009 through Current ♦ Whitley Penn, LLP Houston Client CPE — Unifom; Grant Guidanee ♦ TASBO Conference: February/March 2014 —ACI' 208: Auditing Certification Course ♦ TASBO Conference: February/March 2015: Accounting Research Committee Guest Speaker ♦ TASBO Conference: February 29, 2016 and March 1, 2016 ACT 208 Managing Special &velure Funds Certification Course ♦ TASBO Webinar — GASB 68 and the New EDGAR September 2015 ♦ TASBO Webinar —Sabmittingthe Animal FinandalArrdit:January 2016 s University of Houston Clear Lake —Adjunct Accounting Professor Fall 2014 ♦ Harris County Department of Education Understatidiq the Unifoun Gnaw Guidance Fall 2015 '♦ Bap Area Communities In Schools Adoption of Campus ♦ El Paso TSCPA — 8 hour Governmental Auditing and Accounting Update — Summer of 2014, 2015 and 2016 t TASBO Accounting and Finance Committee ResearchCommittee ME whitleyi 14 Partner, Supervisory and Staff Qualifications and Experience (continued) Lupe Garcia, CPA -Audit Senior Manager ♦ Texas Society of CPAS Single Audit Conference, Austin, Texas; October 2015: ♦ Texas Society of CPAs School District Conference, San Antonio, Texas; June 2016 Whitley Penn, LLP DFW Client CPE 2014, 2015 and 2016 - ♦ Whitley Penn, LLP Houston Client CPE - 2014, 2015, 2016 ♦ UT Arlington Governmental ♦ Texas Association of County Auditoxs: Austin, Texas ♦ Lone Star College — Guest Speaker for Governmental Accounting Class Spring 2015 and Spring 2016 ♦ Harris County Department of Education — Uniform Grant Guidance: Update ♦ TASBO Accounting Research Committee Leslie Wilks, CPA, CFE - Audit Senior Manager international Association of Financial Crimes Investigation —Basics of Fraud Investigations Training; September 2015 and Match 2016 ♦ University of Houston ClearLake—GuestSpeaker for Governmental and Not For Profit Accounting graduate and undergraduate classes; Fall 2014 through Spring 2016 ♦ TSCPA Houston Society Fundamentals of Government Audit; May 2014 ♦ Government Finance Officers Association of Texas —Gulf Coast Chapter—Isaty ISD and Humble ISD; Fraud, Ethics and Internal Controls; October 2014 and April 2014 ♦ Government Finance Officers Association of Texas —Gulf Coast Chapter Warning Signs of Fraud- Behavioral Red Flags; January 2015 ♦ University of Houston Clear Lake ACFE Student Chapter —Faces of Fraud ♦ Whitley Penn, LLP DFW Client CPE 2014-2016: Fraud in Iocal governments ♦ Whitley Penn, LLP Houston Client CPE 2014-2016 : Fraud in local governments ♦ Government Finance Officers Association of Texas —Gulf Coast Chapter Tips for INlinimiziag Fraud and Abuse in Construction Projects ♦ Houston Area School District Internal Auditors Trust is Not an Internal Control-2014 ♦ TSCPA Single Audit Conference (State Wide) Planning Committee Thania D. Gonzalez, CPA, Audit Manager ♦ Texas School District Accounting & Auditing Conference June 2016 — `Sampling made easy" ♦ TSCPA School District Conference Planning Committee: 2009 through Current ♦ TSCPA Board Member (State Wide) 2013 through current 1 whitleypenn No 15' Staff Education and Development All of our staff have appropriate experience and educational backgrounds and complete a minimum of twenty-four to forty hours of continuing educadon related to goveimnental auditing, accounting, and reporting annually. This annual training is designed to be in accordance with Governmental Accountability Offices Government Auditing Standards issued by the Comptroller General of the United States (the "Yellow Book").. Affirmative Action Ptogram/Diversity plan Our staff members come from a variety of different backgrounds. We strive for diversity in our staff in our hiring practices. The quality of staff involved with our clients is ensured through the heavy involvement of management personnel in all phases of the engagement, including key fieldwork areas. Staff level personnel assigned to engagements are trained on and experienced with municipal entities and are continuously supervised and mentored in the audit process with on -site managers. In its efforts to develop out affirmative action program, Whitley Penn hereby reaffirms and formalizes its commitment to the principle of equal employment opportunity. Whitley PenWs policy is to ensure equal employment opportunities for all, without regard to race, color, religion, sex, national origin, age; disability, veteran status, genetic information or any other non job -related characteristic protected by law. We view the principle of equal employment opportunity as a vital element in the employment process. In developing its affirmative action program, Whitley Penn commits to: Recruiting, hiring, training, and promoting persons in all job classifications without regard to race, color, religion, sex, national origin, age, disability, veteran status, genetic information or any other non job -related characteristic protected by law. • Ensuring that promotions ate in accordance with equal employment opportunity requirements by establishing only valid, job -related requirements. Ensuring that all personnel actions relating to compensation, benefits, transfers, terminations, lay- offs, training, education and all other Whitley Penn sponsored programs are administered in a non- discr u5inatory manner. whitleypenn 16 Introduction of our audit team to the County and Process ti)i' the Close of Our Audit We want the audit process to be as seamless as possible and we want to minimise disruptions. You will be introduced to out team through an entrance conference prior to entering the field during. We will discuss the items requested in as much detail as desired by management You will have one point of contact through -out the audit. Usually this is the senior auditor who will copy the manager on all communications. The audit manager and partner will be in the field periodically (usually two to three times a week) to check on the progress of the audit and to answer any questions of management. We will have several meetings through the audit to share the results of the audit. We want to ensure we agree on the facts if we note any deficiencies in internal control or find any noncompliance. We believe in discussing out findings with management and resolving any findings that can be resolved with appropriate, sufficient audit evidence. We avant two way communication and again we want both parties to agree on the facts, This exit conference will occur with enough time prior to the report issuance. We will be present at the Commissioners Court meeting when the CAFR is presented. Outside Specialists and Consultants We do not anticipate using specialists and/or consultants outside of Whitley Penn in performing requested services. Dedication to the State and Local Government Industry As part of our dedication to the state and local government industry, our firm maintains associate memberships in the Government Finance Officers Association (GFOA), the Texas Municipal Teague (ML), the American Institute of Certified Public Accountants (AICPA), the Texas Association of School Business Officials (TASBO), the Association of School Business Officials International, the Texas Society of Certified Public Accountants (TSCPA) and the AICPA's Governmental Audit Quality Center. Through these affiliations, we are able to access tremendous resources that allow us to effectively serve our governmental and non-profit clients. GFOA A-%vardWinning Reports We are active participants in the local chapters of GFOAT and have been very successful in helping our clients achieve the Govertiment Finance Offtcerr/irraclatlan Cett cafe afExce!lence lnFzttanciadl3eiorting. Our staff understands the importance of the GFOA Certificate of Achievement for Excellence in Financial Reporting. As such, out audit managers have joined the GFOA Special Review Committee (SRC), which is made up of individuals with expertise in public -sector financial reporting and includes financial statement preparers, independent auditors, academics, and other finance professionals, We understand the requirements involved in preparing the Comprehensive Annual Financial Report (CAFR), We are well aware of the effort that is requited to prepare a report in accordance with the GFOA's reporting requirements. We also have extensive experience preparing and reviewing CAFRs for our other governmental entities that receive the GFOA Certificate of Achievement for Excelled in Financial Reporting. w h i t I e y 17 Staff Rotation Plans and 113adtiyear Contract Arrangements We bring a wealth of understanding of Texas governments and their specific operating environment, On many of these engagements we have made a strong effort over time to ensure `flotation" of staff on these projects. We have personnel at the partner level and at the manager level, that would be able to assume engagement leadership with a minimum of effort. We would welcome the opportunity to discuss this fully with you. We are prepared to rotate staff as deemed necessary by our firm and the County over a multiyear period. The approach to performing the requested services would not be affected if this were a multiyear contract, except as affected by additional or new industry; federal or any other requirements, We would work closely with the Commissioners Court and management to ensure that staff continuity is maintained at the management levels of the project or changed if desired by the Commissioners Court and management. Continued training will be obtained by our management staff as to relevant technical requirements for requested services. Proposed EngagementTeam We are committed to ptoviding you with a team who is Iatowledgeable, enthusiastic and dedicated to piovidivg supetiot services. Out firm understands the itnportance of continuity and as such we have the ability to rotate .out managers and partners or pull in those staff with specific expertise as needed for out clients, ensuring personalized service. We have several other managers and seniors and staff, but we selected these individuals for your consideration. Christopher L. Breaux, CPA - Engagement Pattner/Concurring Partner Celina C. Miller, CPA - Engagement Partner/Concurring Partner Thomas Pedersen, CPA. - Concurring Partnet/Resoutee Partner Dan Hernandez, CPA, CIA - Senior Manager Lanka Lynch, CPA - Manager Ailene Comple, CPA, CFE Senior Patrick Sitarnons, CPA. - Senior Please see the biographies beginning on the next page for above listed partners, managers and seniors. Following the biographies is a table of continuing education course topics in which the project team has participated or served as instructors in the past four years, s whitl. air .� 19 EDUCATION B.B.A. in Accounting from Texas A&M University SIMILAR ENTITIES SERVED: Christopher L. Breaux, CPA Engagement Partner/Concurring Partner Phone: 713-386-1113 17ax;713-6214570 Cell:713-906-0250 Christopher.Bteaux@whideypenn.com s Fart Bend County Experience e Galveston County a Certified Public Accountant • Hamilton County a Over 30 years of Governmental Auditing Experience a Guadalupe County s Expertise in auditing and consulting services to municipalities; a Houston Galveston Area school districts, counties, and special districts as well as a variety Council of non-profit and private sector clients, a large percentage of e Galveston Wharves whom receive both federal and state funding and/or are subject a Desoto, Texas to specific regulatory reporting requirements. a Sugar Land, Texas a Interfacing with clients and cognizant agencies as well as a Missouri City, Texas developing and implementing audit procedures to conform to a Beaumont, Texas applicable professional, state, and federal standards. • Peatland, Texas a Preparation and review of Comprehensive Annual Financial ® League City, Texas Reports that have been awarded a Certificate of Achievement a Galveston, Texas a. La Porte, Texas for Excellence in Financial Reporting. He has been awarded the s Stafford, Texas Certificate of Educational Achievement in Governmental m Rosenberg, Texas Accounting and Auditing by the AICPA. ® Richmond, Texas a Providing advisory services to municipal clients in the areas of a Katy, Texas workflow studies, financial compliance systems and reporting, a Seabrook, Texas program compliance, and other finance -related legal compliance a Humble, Texas areas. a Fulshear, Texas • Weathetford, Texas Professional & Civic Organizations a West University, Texas a American Institute of Certified Public Accountants s Jersey Village, Texas J y g ® Texas Society of Certified Public Accountants • Groves, Texas a Hitchcock, Texas ° Government Finance Officers Association of Texas • Houston, Texas m Gulf Coast Finance Officers Association • Morgan's Point, Texas b Texas Association of School Business Officials, associate a Oak Ridge North, Texas member a Dickinson, Texas a National Committee for Government Services, CPA Associates a Gulf Coast Waste Disposal International Authority Whitley n 19 PRACTICE Audit Services - Public Sector EDUCATION Bachelors and Masters of Accountancy University of Texas - El Paso SIMILAR ENTITIES SERVED: • City of Sugar Land • City of La Porte • City of Katy • City of Stafford • City of Fulsheat • City of Iowa Colony • Galveston County • Gulf Coast Waste Disposal Authority • Harris County Department of Education • Houston -Galveston Area Council Port of Galveston Celina Cereceres;Miller, CPA Engagement Partner/Concutring Partner Public Sector Industry Group Leader Phone: 713-621-1515 Fax:713-621-1570 Cell:713-377-3667 Celina.Millet@wbitleypenn.cotn Experience • Certified Public Accountant • AICPA's Advanced Single Audit Certificate • Over 15 years of audit public accounting experience focused on clients ptimatAy in the following industries: school districts, non-profit organizations, community colleges and other large governments administering large amounts of federal and state grant awards • Responsible for training firm staff in accordance with Generally Accepted Auditing Standards (GAAS), and Governmental Audit Standards (GAS) • Extensive knowledge of Title 2; US. Code of Federal Regulations, Part 200, Uniform Administradve Requinweids, Cost Principles, and Audit Requirrments for Federal Awards (Uniform Guidance) • Designated Audit Quality Partnet for the AICPA's Government Audit Quality Center • Responsible for providing CPE to both employees, clients, and industry professional organizations Professional &Civic Organizations • Texas Society of Certified Public Accountants (TSCPA) • American Institute of Certified Public Accountants (AICPA) • TSCPA School District Conference Planning Cornmittee • Texas Association of School Business Officials • TASBO Accounting/Finance Research Committee • Bay Area Communities in Schools u3 d= Whitleypenn 20 PRACTICE Audit Services —Public Sector EDUCATION B.B.A. in Accounting from Stephen F. Austin State University SIMILAR ENTITIES SERVED; • City of Alvin • City of Friendswood • City of Hitchcock • City of La Porte • City of Missouri City •. City of Pearland • City of Sugar Land • City of Texas City • City of Watauga • Galveston County • Nacogdoches County • Harris County • Galveston County Consolidated Drainage District • Mental Health Mental Retardation Authority of Harris County • Multiple independent School Districts with ADA Tom Pedersen, CPA Concurring Partaet/Resource Partner Phone: 713-621-1515 Fax:713-621-1570 Cell:713-206-2701 Thomas.Pedetsen@wMtleyp enn.com Experience e Over 40 years experience providing audit services for school districts, county and city governments, banks and community colleges • Preparation and review of Comprehensive Annual Financial Reports that have been awarded the Certificate of Achievement for Excellence in Financial Reporting • Awarded the Certificate of Educational Achievement in Governmental Accounting and Auditing by the AICPA Ten Seats Experience as the Director of Finance at Texas City Included: • Directed all accounting and business activities including banking, investments, general insurance, health and welfare benefits, accounting policy development, cash management; utility billing, general ledger, accounts payable, accounts receivable, payroll, purchasing, tax billing, street assessments And management information systems • Responsible for preparation and management of a multi -million dollar City budget and developing a sound financial plan for the City c Familiar with the day-to-day operations of running a finance department to include managing the City's $25 million investment portfolio, preparing monthly forecast for revenue and expenditures and developing monthly departmental performance measures ranging from 2,000-60,000 Professional &,Civic Organizations ® American Institute of Certified Public Accountants • Texas Society of Certified Public Accountants ® Texas Association of School Business Officials • Government Finance Officers Association of Texas • TSCPA Single Audit & Governmental Accounting Conference Planning Committee ME Whitley 21 PRACTICE Audit Services - Public Sector EDUCATION B.S. in Accounting from the University of Houston - Cleat SIMILAR ENTITIES SERVED: • City of Alvin e City of Beaumont • City of DeSoto • City of Galveston • City of Hitchcock • City of Houston o City of Pearland • City of Sugar Land • City of Texas City • City of Seabrook • City of Watauga • Galveston County Drainage District #1 • Gulf Coast Waste Disposal Authority a Lago Mar Development Au- thority • Memorial City TIRZ 17 • MHMRA of Harris County • Port of Galveston e Multiple Independent School Districts with ADA nuaging from2,000-60,000 Dan Hernandez, CPA, CIA Senior Manager Phone:409-944-4810 Cell: 409-739-9274 Fax: 409-948-0364 Dan.Hemandez@whitleypenn.com Experience • Certified Public Accountant with 30years of experience providing auditservices to various governmental entities, including counties, cities, school, districts,. universities and community colleges, and other special-purpose.. governments • Responsible for all aspects of the assurance process including planning, internal control evaluation, risk assessment, fieldwork; and report issuance and engagement closure • Assist in training staff in accordance with Generally Accepted Auditing Standards (GARS), Government Auditing Standards (GAS), the Texas Education Agency's Financial Accountability System Resource Guide (FASRG),. and Office of Management and Budget (ObfB) requirements. under the Uniform Grant Guidance. • Responsible for preparation and review of Comprehensive Annual Financial Reports that have been awarded the Certificate of Achievement for Excellence in Financial Reporting. • Certified Internal auditor, and prior wort: experience in County Auditor's Office as First Assistant County Auditor Affiliations • American Institute of Certified Public Accountants —Member • Texas Society of Certified Public Accountants • Houston Chapter of CPA Sorietty • Government Finance Officers Association ofTesas— Member • Institute of Internal Auditors • Houston Chapter of Institute of Internal Auditors tl a whitleypenn 22 PRACTICE Audit Services - Public Sector EDUCATION B.S. in Accountancy from University of Houston — Cleat Lake SIMILAR ENTITIES SERVED: e City of Galveston • City of La Porte • City of Dickinson • City of Seabrook • City of Galveston - multiple retirement plans • Galveston County • Port of Galveston • Galveston Wharves Pension Plan • Gulf Coast Waste Disposal Authority • Harris Galveston Subsidence District • Fort Bend Subsidence District • Uptown Development Authority a Pasadena ISD • I{aty ISD • Texas City ISD • Cleat 'Creek lSD Laura Lynch, CPA Manager Phone:713-386-1112 Fax: 713-621-1570 Cell: 409-789-6234 Lauta.Lynch@wlutIeyperm.com Experience a Certified': Public Accountant • Over 11 years of accounting and audit experience gained from serving governmental and non-profit entities including schools, cities, special purpose entities and government pension plans • Advising and assisting clients in the preparation of Comprehensive .Annual Financial Report (CAFR) and annual financial reports and achieving the Certificate of Excellence in Financial Reporting given by the Government Finance Officers' Association a Responsible for audit planning, CAFR and other financial report preparation and compliance auditing and teporttng • Participate in staff training and providing CPR to comply with government auditing standards; ensure that our staff are up to date with current accounting standards and other changes from regulatory agencies specific to our clients such as the Texas Education Agency (I''EA), Public Funds Investment Act (PFIA), Governmental Accounting Standards Board (GASB) etc. • Provide information and training to clients to ensure they are up to date with accounting standards and regulatory agency changes Affiliations a Ameiicanlnsdtute of Cardfred Public Accountants —Member • Texas Society of Certified Public Accountants —Member • Government Finance Officer's Association of Texas —Member • Texas Association of School Business Officials —Member s whitieypenn"' 23 PRACTICE Audit Services - Public Sector EDUCATION M.B.A. from The University of Texas --Pan American B:S. in Accountancy from University of Santo Tomas Arlene Comple, CPA, CPE Senior Phone: 713-386-1139 Fax:713-621-1570 Ce11: 956-533-7371 Ailene.Comple@wllltleypenn.com Experience SIMILAR ENTITIES • Certified Public Accountant SERVED: ® Certified Fraud Examiner • City of Missouti City • Over 10 years of experience in general accounting and over 5 • City of Sugatland years of experience in auditing to governmental, tion-profit, • City of Groves and corporate entities. • City of Texas City, • Extensive knowledge of the Office of Management and � City of Galveston Budget (OMB) requirements under the Uniform Grant • City of Beaumont Guidance. • City La Porte • Nacogdoches County ® Responsible for preparing, analyzing maintaining, and • Guadalupe County reviewing financial statements, records and reports of school a Harris County Municipal districts, cities, counties and other governmental entities. Utility District No. 276 • Assisted in forensic audits of governmental entities. • Galveston County • Performs audit tasks for government engagements including Consolidated Drainage performing internal control walk through, reviewing and District • Harris -Galveston testing transactions and internal controls, performing Subsidence District analytical procedures, documenting auditresults. • Galveston County Central • Responsible for planning, performing and supervising audit Appraisal District engagements • Port of Galveston a Schedules field work; reviews results and investigates and • Mental Health Mental Retardation Authority resolves any discrepancies, questions or other issues raised by • Mainland CbildteWs field staff. Partnership Professional & Civic Organizations • Houston -Galveston Area • American Institute of Certified Public Accountants (AICPA) Council • Fort Bend County ® Texas Society of Certified Public Accountants (TSCPA) WomeWs Centex • Association of Certified Fraud Examiners (ACFE) whitleypenn 24 PRACTICE Audit Services - Public Sector EDUCATION MS in Accounting - University of Houston —Clear Lake BS in University Studies - Texas A&M University Patrick Simmons, CPA Audit Senior Phone: 713-621-1515 Fax: 713-621-1570 Cell: 409-771-5264 Pattick.Sirmnons@whitleypenn. coin Experience SIMILAR ENTITIES SERVED Cettified Public Accountant ® Extensive knowledge of the Office of Management and Budget s Galveston County (OMB) requirements under the Uniform Grant Guidance. • City of Hitchcock s City of La Porte o Over 4 years of experience in auditing to governmental and non- •'City of Texas City profit entities. • City of Beaumont Responsible for preparing, analyzing, maintaining, and reviewing • City of Galveston financial statements, records and reports. • City of Peatland e Proficient with GFOA requirements. s City ofDeSoto e Performs audit tasks for government and not -for -profit engagements including reviewing and testing transactions and internal controls, performing analytical procedures, and documenting audit results. e Schedules field work, reviews results and investigates and resolves any discrepancies, questions or other issues raised by field staff. Responsible for planning, performing and supervising audit engagements Professional & Civic Organizations ® American Institute of Certified Public Accountants (AICPA) ® Texas Society of Certified Public Accountants ('ISCPA) 25 Continuino- Professional Education The following is a table of continuing education course topics in which the Public Sector project team has participated or served as instructors in the past three years: Topic - Breaux Miller Pedersen. Managers Seniors Uniform Grant Guidance (For Whitley Penn employees, TSCPA Single Yes Yes* Yes Yes* Yes Audit Conference,'ISCPA School District Conference and TASBO 2015 Conference) GASB Update Yes* Yes* Yes Yes Yes • GASB Statement No. 68 (Accounting and Financial Reporting for Pensions —an amendment of GASB Statement No. 27) • GASB Statement No. 69 (Government Combinations and Disposals of Government Operations) • GASB Statement No.. 70 (Accounting and Financial Reporting for Noneschange Financial Guarantees) • GASB No. 71 (Pension Transition for Contributions Made Subsequent to the Measumment Date —an amendment of GASB Statement No. 68) • GASS No. 72 (Fair Value Measurement and Applicadon) • GASB No. 73 (Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of "GASB Statements 67 and 68) • GASB No. 74 (Financial Reporting for Postemployment Benefit 'Plans Other Than Pension Plans) • GASB No. 75 (Accounting and Financial. Repuaing for Postemployment Benefits Other. Than Pensions) • GASB No. 76 (The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments) • GASB. No. 77, Tax Abatement Disclosures • GASB No. 78, Pensions through Certain Multiple -Employer Defined Benefit Pension Plans • GASB No, 79, Certain Eztemal investment Pools and Pool Participants • GASB No. 80, Blending Requirements for Certain Component Units an amendment of GASB Statement No.14 • GASB No. 81 IrrevocableSplit-InterestAgreements • GASB No. 82, Pension Issues— an amendment of GASB Statements No. 67, No. 68 and 73 Bonds (New.Issuances and Refundings) Yes Yes Yes, Yes Yes. The.2011 Yellow Book. Yes* Yes Yes Yes* Yes. Internal Controls over Federal Programs Yes Yes* Yes 'Yes* Yes* Financial Reporting and CAFR PreparationTraining 1es* 71 Yes* Yes Yes* Yes. * Indicates Instructor 0 whitla ._ nil 26 APPROACH whitleypenn 30 Generally Accepted Government Auditing Standards Simply put, generally accepted government auditing standards (GAS) are standards for financial and performance audits of governments, established by the U.S. General Accounting Office (GAO) in its publication Goverrmte» t Agdithig Standatds, commonly referred to as the Yellow Book. 'These supplemental auditing standards go above and beyond the standards for traditional financial audits are known as generally accepted auditing standards (GARS), promulgated by the American Institute of Certified Public Accountants (AICPA) through the Auditing Standards Board. These enhanced standards may be requited in the Calhoun County's audit due to the County's expenditure of federal funds in accordance with federal guidelines of the Single Audit Act of 1984, Single Audit Amendments of 1996 and Title 2, U.S, Code of Federal Regulations, Part 200, Uniform Admigisttative Requirements, Cost 3?tindples, attdAtg(itRequirewenfiforFedetalAwaids (Uniform Guidance). Both GAAS and GAS group audit standards into three main categories; (1) General Standards; (2) Fieldwork Standards; and (3) Reporting Standards. General audit standards address qualifications, independence, due professional care and quality control. The primary differences in the standards concern: • Qualifications • Independence • Quality control These standards requite the audit team receive specific additional training within certain timelines and have adequate knowledge of the government environment. The standards also specify higher independence criteria and external peer reviews for the audit organization to meet the higher expectations of stakeholders and regulatory community. Fieldwork standards of GAS attempt to meet the special needs and interests of the public sector by enhanced measures for risk assessment fraud, internal controls, irregularities, illegal acts and other noncompliance. These enhanced standards pay particular attention to how the audit team approaches materiality, noncompliance, safeguarding controls, working papers and audit findings follow-up. Reporting audit standards go beyond disclosing whether generally accepted accounting standards (GAAP) have been followed, whether disclosures in the financial statements ate reasonably adequate, and an expression of opinion by the auditor regarding the fairness of the government's financial statements. Under these enhanced standards, designed to meet the special needs and interests of the public sector, the audit team will communicate with those charged with governance (the Council and administration) on matters pertaining to compliance with laws and regulations and on internal controls, including a separate report on federal programs. MW whitleypenn 31 We understand the unique organizational structure, and operating environment under which Texas Municipalities operate and have developed programs of procedures designed specifically for these engagements. Our audit approach is described as follows: Proposed Segmentation of the Engagement Out auditing and consulting service approach includes the most current techniques available. In addition to the heavy involvement of out partners and managers, out staff will also be familiat with the County's operating environment due to their ongoing involvement with other governmental clients. Out goal in providing a quality audit experience is to assure a seamless audit approach with continuity of staff from the earliest planning stages through fieldwork to report issuance exit conferences. This approach is achieved through the application of our thorough understanding of the environment and heavy involvement in all phases by management personnel. A brief overview of the different phases or segments of our audit process is as follows: The Planning and Tusk Assessment Phase Prior to any fieldwork being performed, strategic planning sessions are held both internally and with the County's staff to identify Ivey audit and operational issues, and to establish communications with appropriate firm and County staff, and relevant third parties, as well as to determine timing and individual responsibility schedules. Additionally, the audit team will gain an understanding of the County's controls and operations surrounding financial activity and develop a plan of action or risk assessment for auditing key areas and account balances. Because of the County's dependence on technology, our experienced technical staff will conduct considered review of general information technology controls for their impact on financial reporting. Fieldwork Our audit programs for the County will include procedures related to review and evaluation of internal administrative and accounting -controls noted above, as well as the determination .of compliance with finance related legal issues, the evaluation of errors and fraud, statistical sampling and analytical procedures designed to determine reasonableness of costs that can lead toward evaluating efficiency and effectiveness in administrative operations. Throughout the fieldwork process, our partners and staff remain in constant contact and communication with County management personnel. When questions or concerns arise in the course of our work, we take steps to assure ourselves that critical information is passed on to the proper level of management through tveeldy meetings and discussions. t whitleyper: r, 32 Report Issuance and Closure Report issuance and exit conferences of an audit are often the most critical portions because it is in this phase that most external communications are discussed. The results of our audit will be reviewed with the appropriate level of management, including the County Auditor, Commissioners Court and executive levels of staff, prior to the issuance of a report on internal controls and compliance matters or management letter. This review of findings and proposed recommendations with management often leads to a plan of action for the County management to make any needed improvements in a manner that is not only theoretically but practically sound. We do not like sumrises so any deficiencies, significant deficiencies or material weaknesses would be discussed with management prior to including it in the report and presenting the results to the Commissioners Court. We believe that both the auditee and auditor must agree on the facts and ensure that there isn't docume L'IdOn that could cleat any deficiencies of which we were previously unaware. We find this method of exiting on the audit process brings the most value to out clients. We will work widi your financial management team in the process of building the report to eliminate any unknowns in the financial statement presentation process. Level of Staff The level of staffing commitment to complete the engagement by audit phase is as below. Planning, report issuance and juvenile segment work will occur both on -site and in the firm office. Fieldwork will occur on site. It is anticipated staff time distribution will be similar in all years. Audit Segment Report Issuance Juvenile & Probation Partners 10 10 10 10 40 Managers 20 35 30 10 95 Supervisory 15 100 15 25 155 Staff 15 100 15 10 140 Subtotal 60 245 70 55 430 whitleypenn 33 Sample Sizes and Audit Sampling Because it would not be cost effective to test 100 percent of items within an account balance or class of transactions for the purpose of evaluating some characteristic of the balance or class in our tests of controls and compliance with laws and regulations, we sample. In the course of an audit, we will apply sampling techniques in our substantive testing of account balances and transaction classes if the application of such techniques is deemed more effective and efficient. Audit sampling can be defined as the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic of the balance or class. Additional uses of sampling can be found in our tests of controls and compliance with laws and regulations. The sample sizes and the extent of the use of samples depends on various factors including population size and the inherent risks associated with the account, transaction class, controls, or compliance features. In the planning and fieldwork stages of the audit, we will thoroughly discuss the population sizes and the risk factors associated with significant financial statement accounts with appropriate financial management personnel. These discussions will include a methodology for selecting a sample as well as an approach for gathering the sample that will be the least intrusive to ongoing financial operations of the County. Extent of use of Software in die Engagement As noted earlier, our auditing and consulting service approach includes the most current techniques available in the field. We utilize fully integrated software for trial balances, audit work papers, and reporting functions. We will request that County staff electronically download certain data from the County's financial management information system for evaluation during the planning and fieldwork phases of the audit. Our approach to this area is designed to be non-invasive and to reduce the amount of time spent by both out staff and County employees. Computer -based techniques are used by our traditional methods. We believe this approach is which we strive. taff only when considered more efficient than consistent with providing the quality smices for Type and Extent of Analytical Procedures to he Used in the Engagement The firm uses analytical procedures in audit planning to: Enhance our understanding of the County's operations and the transactions and events that have occurred since the last audit date. M Identify areas that may represent specific risks relevant to the audit, Provide substantive support for financial information included in the financial reports. M whitleypennum 34 Out preliminary analytical procedures for a County will include, as a minimum, a comparison of current account balances in the working trial balance to similar amounts in the prior annual period's financial statements and the current periods budget. However, we feel a thoughtful consideration of expected relationships among account balances and periods by out experienced auditors is far more important than a mechanical comparison, We Nvill not only consider these relationships but compare these based on our knowledge and experience about the similar governmental entities and their operations. In some cases, analytical procedures can be both more effective and more efficient than tests of details for achieving particular substantive testing objectives. Normally, analytical procedures call attention to unexpected relationships in financial statement balances. This can be an efficient means of identifying potential misstatements or misclassifications. The appropriate mixture of analytical procedures and tests of details is a matter of the auditor's professional judgment concerning the expected efficiency and effectiveness of analytical procedures in identifying potential misstatements. Analytical procedures may be used to identify individually significant items or to otherwise identify populations that need to be sampled. In the payroll area, an effective analytical test is to compare current expenditures to the prior period actual and current budget by department and relate to the number of employees by department. In this manner, the auditor may eliminate the need to sample or reduce the population of payroll expenditures considered necessary to sample by confining sampling to departments with significant fluctuations. Analytical procedures ate also applied as an overall review of the financial information in the final stage of the audit. These procedures are designed to assist our staff in assessing the propriety of conclusions reached and in the evaluation of the overall financial statement presentation. While the selected procedures will vary on the circumstances, they will always focus on overall relationships within the financial statements and consider the following matters: • The adequacy of evidence gathered in response to unusual or unexpected balances identified by analytical procedures applied in the planning stage of the audit. • Unusual or unexpected balances or relationships not previously identified. Gaining en Understanding of Internal Controls An understanding of the County's financial operations, funding source requirements, transaction processing procedures, and internal control structure will be achieved through inquiry, observation, and tests of transactions. We will also use other resources such as the County's budget, organizational charts, County's policy and procedure manuals, and other management information systems. W whitley 35 Determining Laws and Regulations that -will be Subject to Audit Test Work We will design out audit to provide reasonable assurance that the County's financial statements are free of material misstatements resulting from violations of laws and regulations that have a direct and material effect on the determination of financial statement amounts. From the planning phase of the audit, we will seek to obtain an understanding of the possible effects of such laws and regulations on the County's financial statements. The determination of which laws and regulations that will be subject to audit test work will be determined through a number of inquity and review procedures such as the following: • Inquiry with County personnel, including finance staff and grant administrators. • Consideration of compliance requirements that have been identified in prior pears' audits. • Review the relevant portions of any directly related agreements, such as those related to grants and debt agreements. • Review pertinent sections of laws and regulations, including State statutes. • Review die minutes of meetings of the governing body. • Inquiry of oversight entities or agencies about applicable compliance requirements. • Review of Title 2, U.S. Code of Federal Regulations, Part 200, Uniform AdminhfratiM Regvimments, Cost Ptindples, and Midi) Requirements for Federat Awards (Uniform Guidance), the Catalog of Federal Domestic Assistance, federal audit guides, and state and local policies and procedures, In the course of the audit we will consider performing some or all of the following procedures: • Consider knowledge about such laws and regulations obtained in prior years' audits. • Discuss such laws and regulations With the finance director, legal counsel, or grant administratots. • Obtain written representation from management concerning the completeness of management's identification of such laws and regulations. • Review grant and loan agreements. • Review minutes of meetings of file Commissioners Court for the enactment of new ordinances or policies. • Read pertinent statutes, regulations, and chatter provisions and excerpt significant items for the permanent file section of the work papers • If any legal requirements require clarification, we will request a written interpretation from the County's legal counsel. t Whitleypenn"' 36 Examples of the types of laws and regulations that have a direct and material effect on the determination of amounts in a County's financial statements follow: • Public Funds Investment Act. We will consider the governmental unifs compliance with legal and policy provisions for deposits and investments. • Procurement. Competitive bidding laws apply to the ptocutement process. • Appropriations. Expenditures should not exceed authorized limits. • Legal authority for transactions. Transactions should be properly authorized at execution, • Establishment of funds. The funds of a local governmental unit may be established by state constitutional provisions or statutes, or by local charters, ordinances, and governing body orders. • Budgetary reporting. The requited supplementary information included in the financial statements should present an aggregation of the appropriated budgets, as amended, compared to actual results of operations in accordance with State Laws' local budget provisions. • Restrictions on expenditures, The proceeds of certain governmental revenues are restricted by law as to the purposes for which they may be expended. • Taxing and debt limitations. Governmental units may be subject to laws and regulations that place limits on taxing authority, place ceiling limitations and other issuance criteria on debt, or place limits on the use of debt proceeds, Test; of Compliance xvidi Laws and Regulations, Sampling This is a type of audit test that is used to determine general statutory compliance and when the County receives funds from government agencies for services provided to eligible recipients. The purpose of tests of compliance with laws and regulations is to determine whether there have been instances of noncompliance that may have a material effect on the financial statements or to provide a basis of reporting on the County's compliance with such laws and regulations. As a result, tests of compliance with laws and regulations are substantive tests accomplished by examining supporting documentation. In a Single Audit, this type of audit test is frequently applied using statistical sampling. We will select a sample of revenue or expenditure transactions and inspect supporting documentation to determine compliance withrelevant laws and regulations; e.g., wewould select a sample of expenditures charged to a federal or state award program and inspect documentation to determine whether expenditures were for activities allowed. We find the most efficient approach is usually to conduct these tests simultaneously with substantive tests of transactions; e.g_, concurrently with selecting samples of cash receipts or disbursements to test recording accuracy. IMIA whitleypenn 37 Financial Audit Engagement - General Scope Considerations We feel that the independent auditing firm should be totally responsive to the client's governing body. We will work closely with the audit board and management in addressing the scope of the audit, the overall audit philosophy, and our observations and recommendations relating to the County's financial operations. We understand the scope of the work requestedby the County may include an audit of its basic financial statements in accordance with generally accepted auditing standards, as well as Goverment Auditing Standards ("Yellow Book") issued by the Comptroller General of the United States, the provisions of Title 2, U.S. Code of Federal Regulations, Part 200, UnifwmAdntinittratim Regniraments, Cost Pi hdples, and Attdit Requirements far Federal Anardr .(Uniform Guidance). Generally accepted government auditing standards are composed of generally accepted auditing standards and additional standards for financial audits contained its the Yellow Book: Out audit will be conducted in accordance with the above -mentioned standards and will include tests of the accounting records of the County and other procedures we consider necessary to enable us to express an unmodified opinion that the basic financial statements are fairly presented in all material respects, in conformity with generally accepted accounting principles. The general scope of out work will include; A. Evaluation of Internal Control Structure The administration of County is responsible for establishingand maintaining an internal control structure. The objectives of an internal control structure ate to provide management with reasonable, but not absolute, assurance assets axe safeguarded against loss from unauthorized use or disposition and transactions ate executed in accordance with management's authorizations and recorded properly to permit the preparation of basic financial statements in accordance with generally accepted accounting principles. In planning and performing out audit we will consider the internal control structure in order to determine our auditing procedures for the purpose of expressing out opinion on Counts basic financial statements and not to provide assurance on the internal control structure. We will obtain an understanding of the design of the relevant policies and procedures for the significant areas of the audit and whether they have been placed in operation, and we will assess control risk. Test of controls may be performed to test the effectiveness of certain policies and procedures which we consider relevant to preventing and detecting errors and irreguhuities'which are material to the basic financial statements and to preventing and detecting misstatements resulting from illegal acts and -other noncompliance matters which have a direct and material effect on the basic financial statements. Out tests, if performed, will be less in scope than would be necessary to tender an opinion on the internal control structure policies and procedures and, accordingly, no opinion will be expressed: M whltley 38 We will inform the County of any matters involving internal control structure and its operations that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to out attention relating to significant deficiencies in the design or operation of the internal control structure -which, in out judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the basic financial statements. Compliance with laws, regulations, contracts and grant agreements applicable to County, is the responsibility of management. As part of obtaining reasonable assurance about whether the basic financial statements are free of material misstatement, we will perform tests of the County's compliance with cettain provisions of laws, regulations, contracts, and grants. However; the objective of our audit will not be to provide an opinion on overall compliance with such provisions, and we will not express such an opinion. Finally, the Finn will inform Commissioners Court of each of the following: • The Auditor's responsibility under generally accepted auditing standards. • 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 in performing the audit. • Material written communication • Independence -related relationships between our firm and the County • Confirmation of our audit independence B. Substantive Test Work on Account Balances Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts and may include tests of the physical existence of inventories and direct confirmations of receivables, cash, notes and certain other assets and liabilities by correspondence with selected individuals, creditors and financial institutions. Areas which would be covered in our tests would include material accounts ,in the general ledger such as cash, investments, receivables, sales tax revenues, capital assets, accounts payable, payroll, liabilities, fund balances, and various other revenue and expenditure accounts. We will also request written representations from your attorneys as part of the scope of the work. At the conclusion of out audit, we will also request certain written representations from the County about the financial statements and related matters. Out audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, out audit -will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain teasonab assurance about whether the financial statements ate free of material misstatements. W whitleypenn am 39 However, because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud or defalcations, may exist and not be detected by us. We will inform you, however of any matters of that nature which come to out attention, unless they are cleanly inconsequential. Additional work requested or performed related to errors, irregularities or illegal acts would be above the scope of the audit and would be subject to further discussions with management. Out responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we ate not engaged as auditors. As part of the audit process we understand that you will provide us with the basic information; such as working trial balances, after final closing entries have been made, along with closing files and journal entries, schedules, adjustments and general ledger printouts which would be requited to perform die audit. We also understand that you are responsible for the accuracy and completeness of that information. If the information is not complete or accurate we will make arrangements for you to correct the information or make arrangements for us to provide additional accounting services to ,assist you at an agreed upon rate. This would occur if the County needed assistance in closing the books, preparing standard journal entries or preparing reconciliation or schedules, which should be prepared before the audit is started. We are anticipating that County employees will prepare all confirmations, locate supporting documentation such as invoices, deposits and other supporting documentation for items selected by us for testing, Account analysis schedules such as the reconciliation bank statements, investments schedules, heed asset and depreciation schedules, listing of accounts payable at year-end, etc. will be prepared by the County. C. preparation of the Comprehensive Annual Financial Report (CAFR) We will work with your financial management team to eliminate any unknowns in the financial statement presentation process. We will provide all reasonable assistance and advice to the County if it elects to prepare and submit an application for the Certificate of Achievement for Excellence in Financial Reporting awarded by the GFOA. D. Quarterly Audit Committee or Commissioners Court Meetings As part of our annual commitment to the County, senior level firm personnel will be available to meet with the County audit committee and or management team (at the County's discretion) on a quarterly basis to discuss financial reporting and audit matters. It is out policy to snake out partners and managers available throughout the year to both the Commissioners Court and the management team to provide assurance that the audit is on schedule. We would .contemplate receiving specific direction as to County and firm staff involvement in planning sessions with the County's management prior to beginning our worik. M Whitley n 40 No extended services will be performed unless they are specifically authorized by an amendment to the contractual agreement between the County and our firm: As discussed in earlier sections, Whitley Penn has a;gteat deal of experience in performing these types of professional services and we look forward to discussing in greater detail the anticipated scope of the engagement with the audit selection committee and/or any appropriate member of the County's administrative staff Expected Level and Amount of Support from County Finance Staff We expect to arrange all project roles and responsibilities with our staff and County finance staff at the outset of the engagement. The level of assistance expected from County personnel will be limited to providing supporting documentation as listed in the proposal. We appreciate County efforts and will work with you in making sure we can utilize the information already available. We do not want to burden the staff with making requests that tequire the staff to "recreate the wheel." We will request that the County provide us with supporting documentation such as invoices and purchase orders (based on our samples), personnel files (based on, our samples), grant applications, detail general ledger downloaded from the financial software, checks registers for the year, and Commissioners Court meeting minutes. We encourage use of the Whitley Penn portal for the transfer of electronic files. Identification of Anticipated Potential Audit Problems Given the County staffs reputation as professionals, we do not anticipate difficulties in conducting the audit of the financial statements of the County: As noted earlier, our approach to difficult audit issues is immediate communication at the appropriate level of management to include, as appropriate, the Council and administration. We propose scheduled periodic meetings with the County's management personnel to stay abreast with issues that the County is facing. As parr of our service commitment, we welcome any questions during the year. W whitleyy <;= 41 If I have questions throughout the audit, will you be available to answer them? Our team is available to you whenever you need us. We provide cell phone and em ll contact information so that you can always reach us when you have a need. We also understand that increasingly difficult auditing and reporting requirements now defy the "once -a -year visie' by an audit firm. Our commitment to quarterly meetings with Commissioners Court and management is representative of out desire to assure the free flow of communications between the Commissioners Court, management and our audit team, Are you able to provide our staff with training, when needed? Whitley Penn offers one-on-oac training to the management and staff of out clients for everything from genetal accounting procedures to areas such as giant management, payroll and bank reconciliations. Can you help us stay up to date with changes in the industry and new standards? We are proud of the knowledge base of Whitley Penn's Public Sectot Team. We are well known in this industry for our experience and as a result, our firm's partners are consistently called upon to present to a variety of organizations. Whitley Penn is also proud to offer this training to out clients. We offer 16 hours of CPR each year for your staff, at no additional charge. Our team stays abreast of changes in the public sector industry as well as the new accounting standards. We relay this information to our clients in a variety of ways. Some of the best ways to stay "in the know" are to follow our blog, In The Blark, and to request out monthly e-newsletter (visit our web site for more information: whitleypenn.com). Are you able to assist us when we have questions about matters un-related to the audit, such as tax compliance issues? Whitley Penn is a fine of nearly 310 knowledgeable and experienced professionals. Our team has experience with Tax Compliance, Risk lvlanagement, Business Process Improvement, Organizational Renews, Regulatory Matters, and Finance -Related Consulting, in addition to an entire division that specializes in Forensic Services. With Whitley Penn as ,your firm, you will have access to the knowledge and experience of the entiee firth. s p " 42 Anticipated Fees: Below states the anticipated fees for the annual audit for the fiscal year ending December 31, 2016. Also, the stated anticipated fees for the subsequent year, under current existing conditions. For detail hours see Audit Segment Audit Single Audit CAFR Prel2agatio juvenile December 31, 2016 $45,000 $4,500 $7,500 $4,100 December 31, 2017 $45,500 $4,500 $7,500 $4,100 December 31, 2018 $46,000 $4,500 $7,500 $4,100 WIM 43 whitleyp,a nn 44 h whitleypenn 45 CJr OLSEN THIELEN & Co., LTD. Certified PublicAccountants & Consultants SYSTEM REVIEW REPORT June 25, 2015 To the Partners of Whitley Penn LLP and the National Peer Review Committee of the AICPA We have reviewed the system of quality control for the accounting and auditing practice of Whitley Penn LLP (the Firm) applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended April 30, 2015. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The Firm is responsible for designing a system of quality control and complying with it to provide the Firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the Firm's compliance therewith based on our review.. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.org/prsummary. As required by the standards, engagements selected for review included engagements performed under Government Auditing standards, audits of employee benefit plans, audits performed under FDICIA, audits of carrying broker -dealers, and examinations of service organizations (Service Organization Control (SOC) 1 engagements). In our opinion, the system of quality control for the accounting and auditing practice of Whitley Penn LLP applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended April 30, 2015, has been suitably designed and complied with to provide the Firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. Whitley Penn LLP has received a peer review rating of pass. Olsen Th elen & Co., Ltd. me,vla (, v 0 . St, haul Office 12675 Long Lake Road I St, Paul, MN 55113-1117,1 651.493-4521 1 651-483 2467 FAX '.Minneapolis Office 1 300 Prairie Center Da, Ste. 300 1 Minneapolis, MN 55344.7908 1 952-941-9242.1 952-941.0577 FAX 47 CERTIFICATE OF INTERESTED PARTIES FORM 1295 loft Complete Nos. 1- 4 and 6 if there are interested parties. OFFICE USE ONLY Complete Nos. 1, 2, $, 5, and 6 if there are no Interested parties. CERTIFICATION OF FILING Certificate Number: 1 Name of business entity tiling form, and the city, state and country of the business entity's place of business. 2016-100335 Whitey Penn, LLP Houston, TX United States Date Filed: 2 Name of governmental entity or state agency that is a party to the contract for which the form is 08/16/2016 being filed. Calhoun County, Texas Date Acknowledged: g Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goads, or other: property to be provided under the contract. RFQ for Professional Audit Set Professional Audit Service Nature of interest 4 Name of Interested Party City, State, Country (place of business) (check applicable) Controlling Intermediary 5 Check only if there is NO Interested Party, 0 6 AFFIDAVIT H ° oIf I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. Levee s o . G a 0�• •RY A. • N � w : 'OTA t,•jpr ` Signale ofauth rized agent of contracting business entity a •��✓16f33N b' e AFFIX NOTARSf a6EtA�p'O�VE ,e/111 Bee0 �L r ,1 ,t,� yyt1 Sworn to and subscribed before me, by the said V I r75 (o,aAex-13rea- e -. , this the A- )V1 __ day of /'S4q t 20%, to certify which, witness my hand and seal of office. �4 , r ert i C. GdF3ar l✓DZlt` N signature of officer administering oath Printed name of officer administering oath Tale. officer administering oath Forms provided by Texas: EthicsCommisslon www,emics.s[ate.uc.us • ,, 4M f Mwhitleypennum 48 CALHOUN COUNTY RESPONSE TO RFQ Professional Audit Services COST ESTIMATE SHEET This form must be returned with your proposal. FIRM NAME: Whitley Penn, LLP CALHOUN COUNTY AUDIT Maximum Fee: (Not to Exceed) Governmental Audit Single Audit CAFR Fiscal Year Ending December 31, 2016 $45,000 $4,500 $7,500 Fiscal Year Ending December 31, 2017 $45,500 $4,500 $7,500 Fiscal Year Ending December 31, 2018 $46,000 $4,500 $7,500 Indicate the methods that would be used to calculate costs for future optional terms. Include detail of price including number of staff and staff hours that will be committed to the audit. Standard hourly rates based on level of personnel assigned. CALHOUN COUNTY JUVENILE PROBATION AUDIT Maximum Fee: Governmental Audit Fiscal Year Ending August 31, 2016 $4,100 Fiscal Year Ending August 31, 2017 $4,100 Fiscal Year Ending August 31, 2018 $4,100 Indicate the methods that would be used to calculate costs for future optional terms. Include detail of price including number of staff and staff hours that will be committed to the audit. Standard hourly rates based on level of personnel assigned. 20 whitleypenn"m 49 CALHOUN COUNTY RESPONSE TO RFQ Professional Audit Services F>��L'l� Id►:L�t� Whitley Penn, LLP 2. BUSINESS ADDRESS: 3411 Ricmond Avenue, Suite 500 Houston, Texas 77046 3. TELEPHONE, WITH AREA CODE: 713-621-1515 FAX, WITH AREA CODE: 4. S. 713-621-1570 E-MAIL ADDRESS: Christopher. Breaux@Wh itleypen n. com INTERNET URL ADDRESS: hftp://www.whitleypenn.com TYPE OF ORGANIZATION: (CHECK ONE) a. SOLE PROPRIETORSHIP ( ) b. PARTNERSHIP (X) c. CORPORATION ( ) d.101NTVENTURE ( ) PRINCIPALS OF FIRM: NAME DEGREE OR CERTIFICATE INSTITUTION a. Felix Lozano (Director of Audit) Bachelors Texas Christian University b. Larry Autrey (Managing Partner)Bachelors Texas _Tech University C. Jim Penn (CFO) Bachelors University of Houston d. Toby Cotton (Director of Tax) Bachelors/Masters Southeastern Oklahoma State Univ university ot No—rth Texas e. 19 CALHOUN COUNTY RESPONSE TO RFQ Professional Audit Services SUBMITTED BY: SIGNATURE: DATE: 8/18/2016 PRINTED NAME: Christopher Breaux TITLE: Partner FIRM NAME: Whitley Penn, LLP PRIVACY NOTIFICATION The principal purpose for requesting the information on this form is for use in the selection process for professionals approved by the County. Furnishing all information requested on this form is mandatory. Failure to provide such information will delay or may even prevent completion of the action for which the form is being filled out. Information on this form will be used by the County for its evaluation in the consideration of approval of professionals. If you consider any portion of your response to this RFQ to be privileged or confidential by statute or judicial decision, including trade secrets and commercial or financial information, clearly identify those portions. Responses to this RFQ will be opened in a manner that avoids disclosure of the contents to competing offerors and keeps the Request for Qualifications secret during negotiations. All responses are open for public inspection after the contract is awarded, but trade secrets and confidential information in the Request for Qualifications are not open for inspection. The County will honor your notations of trade secrets and confidential information and decline to release such information initially, but please note that the final determination of whether a particular portion of your proposal is in fact a trade secret or commercial or financial information that may be withheld from public inspection will be made by the Texas Attorney General or a court of competent jurisdiction. In the event a public information request is received for a portion of your proposal that you have marked as being confidential information, you will be notified of such request and you will be required to justify your legal position in writing to the Texas Attorney General pursuant to Section 552.30S of the Government Code. In the event that it is determined by opinion of the Texas Attorney General or a court of competent jurisdiction that such information is in fact not privileged and confidential under Section SS2.110 of the Government Code and Section 262.049 of the Local Government Code, then such infomation will be made available to the requester. Marking your entire proposal CONFIDENTIAUPROPRIETARY is not in conformance with the Texas Open Records Act. WE FINAL PLAT FOR ROSALES EL RANCHO SUBDIVISION ON TEXAS AVENUE: Commissioner Lyssy made a motion to approve the Final Plat for Rosales El Ranchito Subdivision on Texas Avenue. Commissioner Galvan seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. Vern Lyssy Calhoun County Commissioner, Precinct #2 5812 FM 1090 Amass Y (361) 552-9656 Port Lavaca, TX 77979 Fax (361) 553-6664 August 30, 2016 Honorable Michael Pfeifer Calhoun County Judge 211 S. Ann Port Lavaca, TX 77979 RE: AGENDA ITEM Dear Judge Pfeifer: Please place the following item on the Commissioners' Court Agenda for September 8, 2016 • Consider and take action on final plat for Rosales El Rancho SD on Texas Ave. Sincer ly, Vern Lyssy VL/Ij eeg3. 6R S o-® ® s s ¢nE ea as ae W SET SALARIES, ALLOWANCES AND RAISES FOR ELECTED OFFICIALS FOR CALENDAR AND FISCAL YEAR 2017: Judge Pfeifer made a motion to set salaries, allowances and raises for elected officials for calendar and fiscal year 2017. Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor THE STATE OF TEXAS COUNTY OF CALHOUN § NOTICE is hereby given as required by V.T.C.A., Local Government Code 152.013 that Calhoun County Commissioners' Court will meet in the Commissioners' Courtroom on September 8, 2016 at 10:00 a.m., Regular Term, to adopt the 2017 budget which includes the salaries, allowances and the raises as shown hereby. NOTICE is also given that on September 8, 2016 at 10:00 a.m., the Commissioners' Court will meet to adopt the 2016 tax rate. 2017 AMOUNT OF POSITION SALARY INCREASE *Sheriff ........................................................................... $66,206.00................................. $1,500.00 County Judge................................................................ $101,341.00................................. $1,500.00 JuvenileCourt ............................................................ $5,205.00.......................................... $.00 Car Allowance............................................................ $7,700.00................................. $.00 *Commissioner, Precinct # 1........................................... $64,322.00................................. $1,500.00 CellPhone Allowance ................................................ $1,800.00.......................................... $.00 *Commissioner, Precinct#2........................................... $64,322.00................................ $1,500.00 Cell Phone Allowance ................................................ $1,800.00.......................................... $.00 *Commissioner, Precinct#3........................................... $64,322.00................................. $1,500.00 CellPhone Allowance ................................................ $1,800.00 .......................................... $.00 *Commissioner, Precinct#4........................................... $64,322.00................................. $1,500.00 Cell Phone Allowance ................................................ $1,800.00.......................................... $.00 County Court -At -Law ......................................... $161,500.00............................ $1,500.00 JuvenileCourt ............................................ $5,205.00................................... $.00 County Treasurer............................................................ $66,206.00................................. $1,500.00 District Attorney ............................................... $12,927.00............................ (1,213.00) District Clerk.................................................................. $66,206.00................................. $1,500.00 Tax Assessor -Collector .................................................. $67,160.00................................. $1,500.00 CountyClerk.................................................................. $66,206.00................................. $1,500.00 Clerk, Juvenile Board................................................. $2,298.00.......................................... $.00 Justice of the Peace 41 .................................................... $38,497.00.......................... $1,500.00 CarAllowance............................................................ $6,200.00.......................................... $.00 Justice of the Peace#2.................................................... $38,497.00................................. $1,500.00 CarAllowance............................................................ $6,200.00.......................................... $.00 Justice of the Peace#3.................................................... $38,497.00................................. $1,500.00 CarAllowance............................................................ $6,200.00................................ I......... $.00 Justice of the Peace#4.................................................... $38,497.00................................. $1,500.00 CarAllowance............................................................ $6,200.00.......................................... $.00 Justice of the Peace#5.................................................... $38,497.00................................. $1,500.00 CarAllowance............................................................ $6,200.00.......................................... $.00 Constable, Precinct # 1.................................................... $12,308.00................................. $1,500.00 CarAllowance............................................................ $7,700.00.................................. $.00 Constable, Precinct #2.................................................... $12,308.00................................. $1,500.00 CarAllowance............................................................ $7,700.00.......................................... $.00 Constable, Precinct#3.................................................... $12,308.00................................. $1,500.00 CarAllowance............................................................ $7,700.00.......................................... $.00 Constable, Precinct#4.................................................... $12,308.00................................. $1,500.00 CarAllowance............................................................ $7,700.00.......................................... $.00 Constable, Precinct #5.................................................... $12,308.00................................. $1,500.00 CarAllowance............................................................ $7,700.00.......................................... $.00 * County vehicle provided PUBLIC HEARING ON THE 2017 PROPOSED CALHOUN COUNTY BUDGET: Judge Pfeifer opened the Public Hearing at 10:13 a.m. Judge Pfeifer closed the Public Hearing at 10:15 a.m. as there were no comments from the public. NOTICE OF PUBLIC HEARING ON PROPOSED BUDGET The Calhoun County Commissioner's Court will hold a Public Hearing on the 2017 Proposed Budget in the Calhoun County Commissioner's Court Room of the Courthouse, on September 8, 2016 at 10:00 a.m. This notice is in accordance with Section 111.007 and Section 111.0075 of the Texas Local Government code. PASS ORDER APPROVING AND ADOPTING THE 2017 CALHOUN COUNTY BUDGET: Judge Pfeifer made a motion to pass Order Approving and Adopting the 2017 Calhoun County Budget. Commissioner Lyssy seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. ADOPTING 2017 BUDGET WHEREAS, Commissioners' Court of Calhoun County prepared a budget for 2017 to meet the needs of the citizens of our community; and WHEREAS, Commissioners' Court of Calhoun County has filed a copy of the 2017 budget with the Calhoun County Clerk's office as required by law. NOW THEREFORE IT IS HEREBY ORDERED by the Commissioners' Court of Calhoun County that the 2017 budget filed with the County Clerk is hereby approved. SIGNED AND SEALED THIS THE 8th DAY OF SEPTEMBER, 2016. Mic e P fifer Calhoun County Judge oger G Ivan, mini sioner Vern Lyssy, C mt sioner Precinct #1 Precinct #2 90� e'1 . Fritsch, Commissioner Kenneth W. Finster, Commissioner Pr cinct #3 Precinct #4 ATTEST: Anna Goodman, Calhoun County Clerk By: >e a N Josie Sampson, Deputy PASS ORDER SETTING 2016 TAX RATES, LEVYING TAXES FOR THE FISCAL TAX YEAR 2016 FOR CALHOUN COUNTY, TEXAS; ADOPT THE GENERAL FUND MAINTENANCE AND OPERATIONS TAX RATE AND DEBT TAX RATE FOR FISCAL YEAR 2016: Judge Pfeifer made a motion to pass Order Setting 2016 Tax Rates, levying taxes for the fiscal tax year 2016 for Calhoun County, Texas; adopt the General Fund Maintenance and Operations Tax Rate and Debt Tax Rate for fiscal year 2016. Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. ORDER ADOPTING 2016 TAX RATE It is hereby ORDERED by Calhoun County Commissioners' Court that the Tax Rate for the year 2016 be set and adopted as follows: Operations $0.4544 Debt Service $0.0356 Total Tax Rate $0.4900 This Tax Rate will raise Less Taxes for Maintenance and Operations than last year's Tax Rate The Tax Rate will Raise Less Taxes for Maintenance and Operations on a $100,000 Home by approximately $150 This Tax Rate will raise More Taxes for Debt Service than last year's Tax Rate The Tax Rate will Raise More Taxes for Debt Service on a $100,000 Home by approximately $150 Adopted this the 8th day of September, 2016. #1 e' IE Fritsch, Commissioner Precinct #3 ATTEST: Anna Goodman, County Clerk By: -jam" Josie Sampson, Deputy Calhoun County Judge 1" -1 - Vern Lyssy, omt rssioner Precinct #2 Kenneth W. Finster, Commissioner Precinct #4 2016 Tax Rate For 2017 Budget Proof of Last Year's Change 2015 2016 Difference $100,000/$100 Amount Verbiage MO 0.4577 0.4559-0.0018 1000 $ (1.80) Less DS 0.0323 0.0341 0.0018 1000 $ 1.80 More Total 0.4900 0.4900 0.0000 $0.00 -0.33 % Change in MO rate 4.40% Change in DS rate I move that the County adopt a tax rate of: $0.4544 Maintenance and Operations $0.0356 Debt Service $0.4900 Total Tax Rate ACTION ON SOFTWARE AS A SERVICE AND PROFESSIONAL SERVICES AGREEMENT WITH TYLER TECHNOLOGIES AND AUTHORIZE COUNTY JUDGE TO SIGN: Commissioner Galvan made a motion to approve Software as a Service and Professional Services Agreement with Tyler Technologies and authorize County Judge to sign. Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. Susan Riley From: Stehling, Stephen<Stephen.Stehling@tylertech.com> Sent: Wednesday, September 07, 2016 1:33 PM To: Susan Riley Subject: RE: Odyssey Contract on Tomorrow's Agenda Yes. I'll have my phone on me. If the item gets tabled I will gladly be present at the next meeting. Thankyoul Stephen Stehling Account Executive P:'214.454.1486 From: Susan Riley [mailto:susan.riley@calhouncotx.org] Sent: Wednesday, September 07, 2016 3:28 PM To: Stehling, Stephen Subject: RE: Odyssey Contract on Tomorrow's Agenda Stephen, I'll put your email in the Court packets. You'll be available at that number if they have any questions? Susan Susan Riley Administrative Assistant to Calhoun County Judge Michael J. Pfeifer and Commissioners' Court 361-553-4600 Phone 361-553-4444 Fax From: Stehling, Stephen fmailto:Stephen.Stehling?@tvlertech.com] Sent: Wednesday, September 07, 2016 12:54 PM To: susan.rilev@calhouncotx.org Cc: shannon.salver@calhouncotx.org; anna.Qoodman@calhouncotx.org Subject: Odyssey Contract on Tomorrow's Agenda Hi Susan Unfortunately I am not going to be able to be in Calhoun County tomorrow. I had planned to be present for the commissioner's court to answer any questions that may come up. "I will be available by phone at (214) 454-1486 if you have any questions. Thank you for your help. a ,j Software as a Service and Professional Services Agreement This Software as a Service ('SaaS") and Professional Services Agreement (Ibis "Agneemenl`) is made and entered into by and behveen Tyler Technologies, Inc., a Delaware corporation ('Tyler'), and Calhoun County, TX (file "Client"). Background Client desires to engage Tyler to provide contain products and professional services, all on the terms and conditions set forth in (his Agreement NOW,. I HEREFORE., in consideration of the mutual promises contained herein, along with other good and valuable consideration, the receipt and sufficiency of which all parties mutually acknowledge, Tyler and Client agree as follows; A. Tyler shall furnish the products and services described in this Agreement, and Client shall pay the prices sel forth in this Agreement. B, This Agreement consists of lhs cover and signature page and the following attachments and exhibits attached hereto and to bit attarhod throughout the Term of this Agreement, all nl which are incorporated by reference herein, Schedule i. - Investment Summary • Exhibit A. - General Terms & Conditions • Exhibit B. - Se"ce Level Terms and Conditions Schedula B-f, Application Availability Period Service Level IN WITNESS WHEREOF, this Agreement has been executed by a duly authorized officer of each Party hereto to be effective as of the dale last set forth below (the "Effective Date"): TYLER TECHNOLOGIES, INC. T,n„ Address 5101 Tennyson f arkvury dicta texas 15p2d, _ r CLIENT Sigrialum September 8, Data _... 201611 __.._. _. Name Michael J. Pfeifer IMe County. Judge Andress 211 S. Ann Street, Suite 301 Port Lavaca TX 77979 (Schedule 1) Investment Summary ASP Fee Software Licenses and os mg, erm Contract Term 5 years from commencement of training Commencin on Effective Date as ee aymen sS Baas Fee Annual Amount First payment due upon commencment of training and then $85,100 per Year annuall in advance thereafter. Software icenses No. Cost/User SaaS Fee Odyssey Online - Licensed Software Users per Month (Annual) Odyssey Case Manager District Clerk 5 250.00 $ 15,000 County Clerk 6 250.00 $ 18,000 District Courts 2 250.00 $ 6,000 County Court 2 250.00 $ 6,000 Information Technology 1 250.00 $ 3,000 Odyssey Attorney Manager District Attomey 11 250.00 $ 33,000 Odyssey Check Manager District Attorney fusers inducted in Attomey Manager Count) Record On Appeal $ 1,230 e-Signature $ 2,870 Total Users 27 Total Annual SaaS Fee $85,100 Embedded Third Party Software None Implementation Services Professional Services T&M Services Hours Rate Cost Project Management 960 170.00 $163,200 Data Conversion 1200 155.00 $186,000 Business Process Review 56 155.00 $8,680 Setup, Configuration & Consulting 836 155.00 $129,580 Initial Training 176 145.00 $25,520 Go -Live Assistance 360 145.00 $52,200 Follow -Up Training 56 145.00 ' $8,120 Subtotal T&M Services $573,300 Estimated Travel Expenses $46,596 Total Implementation Services $619,896 (Exhibit A) General Terms and Conditions CERTAIN DEFINITIONS 1.1. Agreement means this Software as a Service and Professional Services Agreement, including all exhibits attached hereto and to be attached throughout the Term of this Agreement, all of which are incorporated by reference herein. 1.2. Business Day means any day, Monday through Friday, excluding any Tyler holiday. 1.3. Business Hour means 7:00 a.m. to 7:00 p.m., Central Time during Business Days. 1.4. Claims mean any and all claims, liens, demands, damages, liability, actions, causes of action, losses, judgments, costs, and expenses, including reasonable aftomeys' fees and expenses. 1.5. Current Production Software Version means the current production version of Tyler's software listed on the Investment Summary. 1.6. Defect means any bug, error, contaminate, malfunction, or other defect in the Licensed Software caused by, arising from, or emanating from the reasonable control of Tyler that renders the Licensed Software in non- conformance with Tyler's then current published specifications. 1.7. Documentation means the users operating manuals and any other materials in any form or media provided by Tyler to the users of the Licensed Software. 1.8. Embedded Third Party Software means licensed third party software (other than Third Person Software) that is required to provide the functionality of the Licensed Software, which as of the date of this Agreement, consists of the software set forth on Schedule 1 labeled as "Embedded Third Party Software". 1.9. Indemnified Parties mean Client and each of its personnel, agents, successors, and permitted assigns. 1.10. Investment Summary means the summary of fees and services set forth on Schedule 1. 1.11. SaaS Fee means the "Total Annual SaaS Fee" as set forth on the Investment Summary, which is due and payable as set forth in Section 3.1. 1.12. Licensed Property means the Licensed Software and the Documentation. 1.13. Licensed Software means: (a) the Current Production Software Version; (b) Embedded Third Party Software; and (c) any Local Enhancements. 1,14. Local Enhancements means any refinement, enhancement, or other customization to the Current Production Software Version to be developed by Tyler per the Investment Summary. 1.15. Partv means, individually, Tyler and Client. 1.16. Project means the delivery and license of the Licensed Property and the performance of all services to be provided by Tyler in accordance With the provisions of this Agreement. 1.17. Proiect Manager means the person designated by each Party who is responsible for the management of the Project. 1.18. Service Level Terms and Conditions means the terms and conditions for Tyler's maintenance and support of the Licensed Software, which are set forth in Exhibit B. 1.19. T&M means time and materials. 1.20. Third Person Hardware means the workstations and other hardware to be leased, purchased, or otherwise acquired by Client from a third party that is minimally required to operate the Licensed Software and such other hardware that Client has actually leased, purchased or otherwise acquired and/or may be minimally required in the future to operate the Licensed Software. 1.21. Third Person Software means the operating systems and other software to be licensed, purchased, or otherwise acquired by Client from a third party that is minimally required to operate the Licensed Software and such operating systems and other software that Client has actually licensed, purchased, or otherwise acquired and/or may be minimally required in the future to operate the Licensed Software. 1.22. Tyler Confidential and Proprietary Information means all information in any form relating to, used in, or arising out of Tylers operations and held by, owned, licensed, or otherwise possessed by Tyler (whether held by, owned, licensed, possessed, or otherwise existing in, on or about Tylers premises or Client's offices, residence(s), or facilities and regardless of how such information came into being, as well as regardless of who created, generated or gathered the information), including, without limitation, all information contained in, embodied in (in any media whatsoever) or relating to Tyler's inventions, ideas, creations, works of authorship, business documents, licenses, correspondence, operations, manuals, performance manuals, operating data, projections, bulletins, customer lists and data, sales data, cost data, profit data, financial statements, strategic planning data, financial planning data, designs, logos, proposed trademarks or service marks, test results, product or service literature, product or service concepts, process data, specification data, know how, software, databases, database layouts, design documents, release notes, algorithms, source code, screen shots, and other research and development information and data. Notwithstanding the foregoing, Tyler Confidential and Proprietary Information does not include information that: (a) becomes public other than as a result of a disclosure by Client in breach hereof; (b) becomes available to Client on a non -confidential basis from a source other than Tyler, which is not prohibited from disclosing such information by obligation to Tyler; (c) is known by Client prior to its receipt from Tyler without any obligation of confidentiality with respect thereto; or (d) is developed by Client independently of any disclosures made by Tyler. 1.23. Users means individuals who are employed and authorized by Client to use the Licensed Properly, and who have been supplied with user identifications and passwords by Client (or by Tyler at Client's request). 2. TITLE AND LICENSE 2.1. License Grant. In consideration for the SaaS Fee, which shall be due and payable as set forth in Section 3, Tyler hereby grants to Client a limited, non-exclusive, revocable and non -transferable license (and sublicense with respect to the Embedded Third Party Software) to use the Licensed Property for Client's internal administration, operation, and/or conduct of Client's business operations by the number of Users as set forth on the Investment Summary. TYLER HAS THE RIGHT TO REVOKE THIS LICENSE IF CLIENT TERMINATES, CANCELS OR FAILS TO RENEW THIS AGREEMENT. TYLER HAS THE RIGHT TO UNILATERALLY REVOKE THIS LICENSE AND DENY CLIENT ACCESS TO THE LICENSED PROPERTY IF CLIENT FAILS TO REMIT ANY REQUIRED FEES WITHIN THIRTY DAYS OF THE DATE SUCH FEES BECOME DUE AS SET FORTH HEREIN AND SUCH AMOUNTS REMAIN OUTSTANDING FOR A PERIOD OF THIRTY DAYS FOLLOWING TYLER'S WRITTEN NOTICE OF ITS INTENT TO REVOKE THE LICENSE. 2.2, User Licenses. Unless otherwise specified on the Investment Summary: (a) the Licensed Property is purchased as User subscriptions and may be accessed by no more than the specified number of Users; (b) additional User subscriptions may be added during the Term at the same pricing as that for the pre-existing subscriptions, prorated for the remainder of the Tenn in effect at the time the additional User subscriptions are added; and (c) the added User subscriptions shall terminate on the same date as the pre-existing subscriptions. User subscriptions are for designated Users and cannot be shared or used by more than one User; provided, however, that User subscriptions may be reassigned to new Users replacing former Users who no longer require ongoing use of the Licensed Property. 2.3. Restrictions. Unless otherwise expressly set forth in this Agreement, Client shall not (a) reverse engineer, de -compile, or disassemble any portion of the Licensed Software or (b) sublicense, transfer, rent, or lease the Licensed Software or its usage. To the extent Client employs contractors, subcontractors, or other third parties to assist in the Project, Client shall obtain from such third parties an executed Tyler confidentiality agreement prior to such parties being permitted access to Tyler Confidential and Proprietary Information. 2.4. Embedded Third Party Software. The license grant set forth in Section 2.1 includes the right to use any Embedded Third Party Software; provided, however, that such access to and use of such Embedded Third Party Software shall be according to such terms, conditions, and licenses as are imposed by the manufacturers and/or third party licensors of such Embedded Third Party Software. All such Embedded Third Party Software shall be included in the SaaS Fee. Tyler shall pass through to Client any and all warranties granted to Tyler by the owners, licensors, and/or distributors of such Embedded Third Party Software. 2.5. Title. (a) Tyler represents and warrants that it is the owner of all right, title, and interest in and to the Licensed Software (other than Embedded Third Party Software) and all components and copies thereof. Nothing in this Agreement shall be deemed to vest in Client any ownership or intellectual property rights in and to Tyler's intellectual property (including, without limitation, Tyler Confidential and Proprietary Information), any components and copies thereof, or any derivative works based thereon prepared by Tyler. (b) All training materials shall be the sole property of Tyler (c) All Client data shall remain the property of Client. Tyler shall not use Client data other than in connection with providing the services pursuant to this Agreement. 3. FEES AND INVOICING 3.1. SaaS Fee. Tyler shall invoice Client for the SaaS Fee as set forth on the Investment Summary, and Client shall make payment in accordance with Section 3.4. 3.2. Professional Services Charges. T&M charges for all professional services to be performed hereunder shall be invoiced and paid by Client in accordance with Section 3.4. 3.3. Expenses. Client shall reimburse Tyler for travel, lodging, and food expenses actually and reasonably incurred by Tyler in performing its professional services herein in accordance with Section 3.4. 3.4. Invoice and Payment. Tyler shall invoice Client for professional services and associated expenses herein on a monthly basis. Each invoice shall state the total invoiced amount and shall be accompanied by a reasonably detailed itemization of services and expenses. Following receipt of a properly submitted invoice, Client shall pay amounts owing therein thirty (30) days in arrears. All payments shall be made in U.S. currency. Any undisputed sum not paid when due shall bear interest at a rate of prime rate (as set forth in the Wall Street Journal) plus five percent (5%) per annum or the highest rate allowed by governing law, whichever is less. 3.5. Electronic Payment. Tyler prefers _ to receive payments electronica y. yes a ec ronic payment information is as follows: Bank: Wells Fargo Bank, N.A. 420 Montgomery San Francisco, CA 94104 ABA: 121000248 Account: 4124302472 Beneficiary: Tyler Technologies Inc. — Operating 4. PROJECT IMPLEMENTATION 4.1. Professional Services. Attached hereto as Schedule 1 is Tyler's good faith estimate of the hours and fees associated with the services to be performed by Tyler for Client, including travel time by Tyler's personnel from Tyler's place of business to and from Client's place of business, and for which Client shall pay on a T&M basis. Additional services requested by Client which are beyond those hours detailed in Schedule 1 will be billed at Tyler's then current services rates. 4.2. Office Space. Client shall, at its sole expense, provide reasonable access to office space, telephone access, network access (including providing Tyler reasonable access to a secure virtual private network connection or other comparable connection for use by Tyler from time to time on a non -dedicated basis), Internet connections, and such other facilities as may be reasonably requested by Tyler for use by Tyler personnel for the purpose of performing this Agreement. 4.3. Third Person Hardware and Third Person Software. Client shall be responsible to purchase, install, and configure all Third Person Hardware and Third Person Software. Tyler shall have no liability for defects in the Third Person Hardware or Third Person Software. 4A. Cooperation. Client acknowledges that the implementation of the Project is a ceoperative process requiring the time and resources of Client personnel. Client shall, and shall cause its personnel to, use all reasonable efforts to cooperate with and assist Tyler as may be reasonably required to timely implement the Project, including, without limitation, providing reasonable information regarding its operations and reasonable access to its facilities. Tyler shall not be liable for failure to timely implement the Project when such failure is due to Force Majeure (as identified in Sectionl7.14) or to the failure by Client personnel to provide such cooperation and assistance (either through action or omission). S. INSTALLATION OF THE LICENSED SOFTWARE Tyler shall use commercially reasonable efforts to promptly install the Licensed Software on Tyler's Servers in accordance with a mutually agreed upon timetable. Upon installation, Tyler shall conduct its standard diagnostic evaluation to determine that the Licensed Software is properly installed, and upon completion, shall deliver written instructions for accessing the Licensed Software to Client. 6. VERIFICATION OF THE LICENSED SOFTWARE 6.1. Verification Procedure. Upon installation of the Licensed Software, Tyler shall perform its standard test procedures and shall certify to Client that the Licensed Software is in substantial conformance with Tyler's then current published specifications and is ready for Client's use. In the event Tyler cannot so certify, Tyler's sole obligation shall be to correct the cause thereof, which shall be Client's sole right and remedy against Tyler. 6.2. Certification Final. Tyler's certification that the Licensed Software substantially complies with the then current published specifications shall be final and conclusive, except for latent defect, fraud, and such gross mistakes that amount to fraud. 6.3. Use. Notwithstanding anything to the contrary herein, Client's use of the Licensed Software for its intended purpose shall constitute Tyler's verification of the software products, without exception and for all purposes. 7. TRAINING To the extent that training services are included in Schedule 1, Tyler shall train Client in accordance with a mutually agreeable training plan. The training plan shall outline the training required for personnel to operate the Licensed Software. Tyler shall provide Client personnel with only the number of hours of training for the respective portions of the Licensed Software as set forth in Schedule 1. Training shall be provided at Client's principal place of business or other site selected by Client. Training shall be performed according to the training plan, but in any event shall be "hands- on" using production -ready versions of the Licensed Software. The courses shall train Client's employees or agents in a manner to provide basic end user training. Client shall be responsible for providing an adequately equipped training facility to operate the Licensed Software. 8. MAINTENANCE AND SUPPORT SERVICES 8.1. Service Level Terms and Conditions. Upon Tyler's certification of the Licensed Software or Client's use, whichever occurs first, Tyler shall provide Client with the maintenance and support services for the Licensed Software as set forth in Exhibit B. 8.2. Responsibilities of Client. In addition to the other responsibilities set forth herein, Client shall: (a) provide all training of its personnel; (b) collect, prepare, and enter all data necessary for the day-to-day operations of the Licensed Software; (c) retain separate copies of all conversion data EXHIBIT A — Page 2 of 5 delivered to Tyler; (d) provide end user workstations that conform to Tyler's minimum requirements; and (e) provide the requisite networks. 9. TYLER CONFIDENTIAL AND PROPRIETARY INFORMATION 9.1. Protection of Tyler Confidential and Proprietary Information. Client shall not disclose, disseminate, transmit, publish, distribute, make available, or otherwise convey Tyler Confidential and Proprietary Information, and Client shall not use, make, sell, or otherwise exploit any such Tyler Confidential and Proprietary Information for any purpose other than the performance of this Agreement, without Tyler's written consent, except: (a) as may be required by law, regulation, judicial, or administrative process; or (b) as required in litigation pertaining to this Agreement, provided that Tyler is given advance notice of such intended disclosure in order to permit it the opportunity to seek a protective order. Client shall ensure that all individuals assigned to perform services herein shall abide by the terms of this Section 9.1 and shall be responsible for breaches by such persons. 9.2. Judicial Proceedings. If Client is requested or required (by oral questions, interrogatories, requests for information or documents in legal proceedings, subpoena, civil investigative demand, or other similar process) to disclose any Tyler Confidential and Proprietary Information, Client shall provide Tyler with prompt written notice of such request or requirement so that Tyler may seek protective orders or other appropriate remedies and/or waive compliance with the provisions of this Agreement. If, in the absence of a protective order or other remedy or the receipt of a waiver by Tyler, Client nonetheless is legally compelled to disclose Tyler Confidential and Proprietary Information to any court or tribunal or else would stand liable for contempt or suffer other censure or penalty, Client may, without liability herein, disclose to such court or tribunal only that portion of Tyler Confidential and Proprietary Information which the court requires to be disclosed, provided that Client uses reasonable efforts to preserve the confidentiality of Tyler Confidential and Proprietary Information, including, without limitation, by cooperating with Tyler to obtain an appropriate protective order or other reliable assurance that confidential treatment shall be accorded Tyler Confidential and Proprietary Information by such court or tribunal. 10. REPRESENTATIONS AND WARRANTIES 10,1. Protect Personnel. All Tyler personnel utilized in connection with fulfilling its obligations pursuant to or arising from this Agreement shall be employees of Tyler or, if applicable, Tyler's subcontractor(s), shall be qualified to perform the tasks assigned them, and shall be in compliance with all applicable laws relating to employees generally, including, without limitation, immigration laws. 10.2. Pass -Through of Warranties. Tyler hereby passes through the benefits of all third party warranties that it receives in connection with any product provided to Client. 10.3. No Actions Suits or Proceedings. There are no actions, suits, or proceedings, pending or, to the knowledge of Tyler, threatened, that shall have a material adverse effect on Tyler's ability to fulfill its obligations pursuant to or arising from this Agreement. 10.4. Compliance with Laws. In performing this Agreement, Tyler shall comply with all applicable material licenses, legal certifications, or inspections. Tyler shall also comply in all material respects with applicable federal, state, and local statutes, laws, ordinances, rules, and regulations. 10.5. Ownership. Tyler is a Delaware corporation that is listed for trading on the New York Stock Exchange. No director, officer, or 5% or more stockholder shall, during the course of this Agreement, receive or confer improper personal benefits or gains associated with the performance of the services outlined in this Agreement. 10.6. Certain Business Practices. Neither Tyler nor any of its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in this Agreement by any federal department or agency. Tyler further represents and warrants that it is not listed on any local, Client, state or federal consolidated list of debarred, suspended, and ineligible contractors and grantees. No person (other than permanent employees of Tyler) has been engaged or retained by Tyler to solicit, procure, receive, accept, arrange, or secure this Agreement for any compensation, consideration, or value. EXCEPT AS SPECIFICALLY SET FORTH IN THIS SECTION 10 OR ELSEWHERE IN THIS AGREEMENT, TYLER DISCLAIMS ALL OTHER WARRANTIES, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 11. LIMITATION OF LIABILITY TYLER'S LIABILITY TO CLIENT FOR DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, WHETHER BASED ON A THEORY OF CONTRACT OR TORT, INCLUDING NEGLIGENCE AND STRICT LIABILITY, SHALL BE LIMITED TO: (A) PRIOR TO TYLER'S CERTIFICATION OF THE LICENSED SOFTWARE AND CLIENT'S USE THEREOF, THE SAAS FEES PAID BY CLIENT, IF ANY; AND (B) AFTER TYLER'S CERTIFICATION OF THE LICENSED SOFTWARE AND CLIENT'S USE THEREOF, FIXING DEFECTS IN ACCORDANCE WITH EXHIBIT B. THE FOREGOING LIMITATIONS DO NOT APPLY TO THE FOLLOWING CIRCUMSTANCES: (1) FRAUD; OR (2) FOR BREACH OF SECTION 12.1 (CLAIMS FOR BODILY INJURY OR PROPERTY DAMAGE) OR SECTION 12.2 (INTELLECTUAL PROPERTY INFRINGEMENT). IN NO EVENT SHALL TYLER BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, LOST REVENUES OR PROFITS, LOSS OF BUSINESS, OR LOSS, CORRUPTION, OR MISAPPROPRIATION OF DATA ARISING OUT OF THIS AGREEMENT, IRRESPECTIVE OF WHETHER THE PARTIES HAVE ADVANCE NOTICE OF THE POSSIBILITY OF SUCH DAMAGE. 12. INDEMNIFICATION 12.1. General — Bodily Injury and Property Damage. Notwithstanding any other provision of this Agreement, Tyler shall defend, indemnity, hold, and save harmless the Indemnified Parties from and against any and all Claims for bodily injury or property damage sustained by or asserted against Client arising out of, resulting from, or attributable to the negligent or willful misconduct of Tyler, its employees, subcontractors, representatives, and agents; provided, however, that Tyler shall not be liable herein to indemnify Client against liability for damages arising out of bodily injury to people or damage to property to the extent that such bodily injury or property damage is caused by or resulting from the actions, negligent or otherwise, of Client, its agents, contractors, subcontractors, or employees. 12.2. Intellectual Prooertv. (a) Notwithstanding any other provision of this Agreement, if any claim is asserted, or action or proceeding brought against Client that alleges that all or any part of the Licensed Software, in the form supplied, or modified by Tyler, or Client's use thereof, infringes or misappropriates any United States intellectual property, intangible asset, or other proprietary right, title, or interest (including, without limitation, any copyright or patent or any trade secret right, title, or interest), or violates any other contract, license, grant, or other proprietary right of any third party, Client, upon its awareness, shall give Tyler prompt written notice thereof. Tyler shall defend, and hold Client harmless against, any such claim or action with counsel of Tyler's choice and at Tyler's expense and shall indemnify Client against any liability, damages, and costs resulting from such claim. Without waiving any rights pursuant to sovereign immunity, Client shall cooperate with and may monitor Tyler in the defense of any claim, action, or proceeding and shall, if appropriate, make employees available as Tyler may reasonably request with regard to such defense. This indemnity does not apply to the extent that such a claim is attributable to modifications to the Licensed Software made by Client, or any third party pursuant to Client's directions, or upon the unauthorized use of the Licensed Software by Client. (b) If the Licensed Software becomes the subject of a claim of Infringement or misappropriation of a copyright, patent, or trade secret or the violation of any other contractual or proprietary right of any third party, Tyler shall, at its sole cost and expense, select and provide one of the following remedies, which selection shall be in Tyler's sole discretion: (i) promptly replace the Licensed Software with a compatible, functionally equivalent, non -infringing system; or (it) promptly modify the Licensed Software to make it non -Infringing; or (III) promptly procure the right of Client to use the Licensed Software as intended. EXHIBIT A — Page 3 of 5 13. TAXES 13.1. Tax Exempt Status. Client represents and warrants that it is a governmental tax-exempt entity and shall not be responsible for any taxes for any Licensed Property or services provided for herein, whether federal or state. The fees paid to Tyler pursuant to this Agreement are inclusive of any applicable sales, use, personal property, or other taxes attributable to periods on or after the Effective Date of this Agreement. 13.2. Emplovee Tax Obligations. Each Party accepts full and exclusive liability for the payment of any and all contributions or taxes for Social Security, Workers' Compensation Insurance, Unemployment Insurance, or Retirement Benefits, Pensions, or annuities now or hereafter imposed pursuant to or arising from any state or federal laws which are measured by the wages, salaries, or other remuneration pay to persons employed by such Party for work performed under this Agreement. 14. INSURANCE Tyler shall provide, upon the written request of Client (which shall not be less than thirty (30) days after the Effective Date), proof of insurance for and maintain, at Tyler's sole cost and expense, the following Insurance coverage issued with an insurance carrier with a Best Key rating of "A VII" or higher: (a) Industrial/Workers' Compensation Insurance protecting Tyler and Client from potential Tyler employee claims based upon job -related sickness, injury, or accident during performance of this Agreement; and (b) Comprehensive General Liability (including, without limitation, bodily injury and property damage) insurance with respect to Tyler's agents and vehicles assigned to perform the services herein with policy limits of not less than $1,000,000 combined single limit per occurrence and $2,000,000 in the aggregate. Client shall be named as an additional insured party and such notation shall appear on the certificate of insurance furnished by Tyler's insurance carrier. 15. TERM, SUSPENSION, AND TERMINATION 15.1. Term. The term of this Agreement (the "Term") shall commence on the start date specified in the Investment Summary and continue for the subscription term specified therein. Except as otherwise specified in the Investment Summary, the term of this Agreement, and the corresponding payment of all SaaS Fees, shall automatically renew for additional periods equal to the then expiring subscription term or one year (whichever is longer), unless either party gives the other notice of non -renewal at least 30 days before the end of the relevant subscription term. The per -unit pricing during any such renewal term shall be the same as that during the prior term unless Tyler has given Client written notice of any pricing change at least 90 days before the end of such prior term, in which case the change in pricing shall be effective upon renewal and thereafter. 15.2. Early Termination by Client. This Agreement maybe terminated by Client prior to the end of the then current term by Client providing Tyler with (a) ninety (90) days written notice of its intent to terminate, and (b) payment equal to the lesser of (i) 50% of the SaaS Fees still due for the remainder of the then current term or (it) one year's SaaS Fees. 15.3. Tr Cause, provided termination for Cause. Either Party may terminate this Agreement fohat such Party follows the procedures set forth in this Section 15.3. (a) For purposes of this Section, "Cause" means either: (i) a material breach of this Agreement, which has not been cured within ninety (90) days of the date such Party receives written notice of such breach; (it) the failure by Client to timely pay when due any fees and expenses owed to Tyler pursuant to this Agreement and any delinquent amounts remain outstanding for a period of thirty (30) days after Tyler provides written notice of its intent to terminate for failure to pay; (III) breach of Section 9; or (iv) if Tyler becomes insolvent or bankrupt, or is the subject of any proceedings relating to its liquidation or insolvency or for the appointment of a receiver or similar officer for it, has a receiver of its assets or property appointed or makes an assignment for the benefit of all or substantially all of its creditors, or institutes or causes to be instituted any proceeding in bankruptcy or reorganization or rearrangement of its affairs. (b) No Party may terminate this Agreement under Section 15.3(a)(i) unless it cooperates in good faith with the alleged breaching Party during the cure period and complies in good faith with the dispute resolution procedures set forth in Section 16 following such period. (c) Upon any termination for Cause by Client, Tyler shall refund any prepaid SaaS Fees covering the remainder of the Term after the effective date of termination. Upon any termination for Cause by Tyler, Client shall pay Tyler the lesser of (a) any unpaid SaaS Fees covering 50% of remainder of the Term after the effective date of termination; or (b) one year's SaaS Fees. In no event shall any termination relieve Client of the obligation to pay any fees payable to Tyler for the period prior to the effective date of termination. 15.4. Effect of Termination. Upon termination of this Agreement for any reason: (a) the licenses provided hereunder shall automatically terminate as of the effective date of the termination and Client's access to the licensed applications shall be denied; (b) subject to payment of all amounts due hereunder, and upon written request, Tyler will provide to Client such contents of the database that are owned by Client, as such contents exist on the date of termination, in a standard industry data file format within five business days; and (c) upon written request, Client shall return all documentation, products, Tyler Confidential and Proprietary Information, and other information disclosed or otherwise delivered to Client by Tyler. 15.5. Survival. The following provisions shall survive after the Term of this Agreement: 1; 2; 9; 11; 12; 13; 15; 16; and 17. 16. DISPUTE RESOLUTION Disputes arising out of, or relating to, this Agreement shall first be discussed by the Project Managers. Any dispute that cannot be resolved within five (5) Business Days at the Project Manager level (or such other date as agreed upon by the Project Managers) shall be referred to the individual reasonably designated by Client and Tyler's Vice President of Courts and Justice Systems Division assigned to Client's account ("Intermediary Dispute Level"). Any dispute that cannot be resolved in ten (10) Business Days at the Intermediary Dispute Level shall then be referred to Client's chief executive officer or other individual reasonably designated by Client and Tyler's President of Courts and Justice Systems Division ("Executive Dispute Level"), at such time and location reasonably designated by the Parties. Any negotiations pursuant to this Section 16 are confidential and shall be treated as compromise and settlement negotiations for purposes of the applicable rules of evidence. For any dispute that the Parties are unable to resolve through informal discussions or negotiations or pursuant to the dispute resolution and escalation procedures set forth in this Agreement, the Parties shall submit the matter to binding arbitration. Any such arbitration proceeding shall be governed by the rules of the American Arbitration Association. Any award or other relief granted by the arbitrators may be enforced in any court of competent jurisdiction. The foregoing shall not apply to claims for equitable relief under Section 9. 17. MISCELLANEOUS 17.1. Assignment. Neither Party may assign this Agreement or any of its respective rights or obligations herein to any third party without the express written consent of the other Party, which consent shall not be unreasonably withheld. 17.2. Cumulative Remedies. Except as specifically provided herein, no remedy made available herein is intended to be exclusive of any other remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy provided herein or available at law or in equity. 17.3. Notices. Except as otherwise expressly specified herein, all notices, requests or other communications shall be in writing and shall be deemed to have been given if delivered personally or mailed, by certified or registered mail, postage prepaid, return receipt requested, to the Parties at their respective addresses set forth on the signature page hereto, or at such other addresses as may be specified in writing by either of the Parties. All notices, requests, or communications shall be deemed effective upon personal delivery or three (3) days following deposit in the mail. EXHIBIT A — Page 4 of 5 17.4. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 17.5. Waiver. The performance of any obligation required of a Party herein may be waived only by a written waiver signed by the other Party, which waiver shall be effective only with respect to the specific obligation described therein. 17.6. Entire Agreement. This Agreement constitutes the entire understanding and contract between the Parties and supersedes any and all prior or contemporaneous oral or written representations or .communications with respect to the subject matter hereof. 17.7. Amendment. This Agreement shall not be modified, amended, or in any way altered except by an instrument in writing signed by the properly delegated authority of each Party. All amendments or modifications of this Agreement shall be binding upon the Parties despite any lack of consideration. 17.8. Severability of Provisions. In the event any provision hereof is found invalid or unenforceable pursuant to judicial decree, the remainder of this Agreement shall remain valid and enforceable according to its terms. 17.9. Relationship of Parties. The Parties intend that the relationship between the Parties created pursuant to or arising from this Agreement is that of an independent contractor only. Neither Party shall be considered an agent, representative, or employee of the other Party for any purpose. 17.19. Governing Law. Any dispute arising out of or relating to this Agreement or the breach thereof shall be governed by the laws of the state of the domicile of Client, without regard to or application of choice of law rules or principles. 17.11.Audit. Tyler shall maintain complete and accurate records of all work performed pursuant to and arising out of this Agreement. Client may, upon the written request of the Project Manager, audit any and all work or expense records of Tyler relating to materials and/or services provided herein. Client shall provide Tyler twenty-four hour notice of such audit or inspection. Tyler shall have the right to exclude from such inspection any Tyler Confidential and Proprietary Information not otherwise required to be provided to Client as a part of this Agreement. Tyler shall make such books and records available to Client during normal business hours. Any such audit shall be conducted at Tyler's principal place of business during Tyler's normal business hours and at Client's sole expense. 17.12. No Third Party Beneficiaries. Nothing in this Agreement is intended to benefit, create any rights in, or otherwise vest any rights upon any third party. 17.13.Contra Proferentem. The doctrine of contra proferentem shall not apply to this Agreement. If an ambiguity exists in this Agreement, or in a specific provision, neither the Agreement nor the provision shall be construed against the Party who drafted the Agreement or provision. 17.14.Force Maieure. No Party to this Agreement shall be liable for delay or failure in the performance of its contractual obligations arising from any one or more events that are beyond its reasonable control, including, without limitation, acts of God, war, terrorism, and riot. Upon such delay or failure affecting one Party, that Party shall notify the other Party and use all reasonable efforts to cure or alleviate the cause of such delay or failure with a view to resuming performance of its contractual obligations as soon as practicable. Notwithstanding the foregoing, in every case the delay or failure to perform must be beyond the control and without the fault or negligence of the Party claiming excusable delay. Any performance times pursuant to or arising from this Agreement shall be considered extended for a period of time equivalent to the time lost because of any delay that is excusable herein. 17.15. Equitable Relief. Each Party covenants, represents, and warrants that any violation of this Agreement by such Party with respect to its respective obligations set forth in Sections 2.3 and 9 shall cause irreparable injury to the other Party and shall entitle the other Party to extraordinary and equitable relief by a court of competent jurisdiction, including, without limitation, temporary restraining orders and preliminary and permanent injunctions, without the necessity of posting bond or security. 17.16.Attorneys' Fees and Costs. If attorneys' fees or other costs are incurred by either Party to secure the performance of any obligations under this Agreement, or to establish damages for the breach thereof or to obtain any other appropriate relief, whether by way of prosecution or defense, the prevailing Party shall be entitled to recover from the other Party its reasonable attomeys' fees and costs incurred in connection therewith. (Remainder of this page Intentionally left blank] EXHIBIT A — Page 5 of 5 (Exhibit B) Service Level Terms and Conditions 1. CERTAIN DEFINITIONS 1.1. Terms Not Defined. Tens not otherwise defined in this Exhibit B shall have the meanings assigned to such terms in the Software as a Service and Professional Services Agreement (the "Agreement'). 1.2. Application Availability Period has the meaning set forth in Schedule B-1. 1.3. Circumvention or Circumvention Procedures means, as applied to a Documented Defect, a change in operating procedures whereby Client can reasonably avoid any deleterious effects of such Documented Defect. 1.4. Defect means any bug, error, malfunction, or other defect in the Licensed Software caused by, arising from, or emanating from the reasonable control of Tyler that renders the Licensed Software in non- conformance with Tylers then current published specifications. 1.5. Documented Defect means a Defect that Client documents for Tyler pursuant to Section 2.1. 1.6. Downtime means minutes during the Application Availability Period where the Licensed Software is not available as set forth in Section 3.1. 1.7. Operational Maintenance Wind ow has the meaning set forth in Schedule B-1. 1.8. Service Level 1 Defect Documented Defect that causes (a) complete application failure or application unavailability.; (b) application failure or unavailability in one or more of Purchasers remote locations; (c) systemic loss of multiple essential system functions. 1.9. Service Level 2 Defect means a Documented Defect that causes (a) repeated, consistent failure of essential functionality affecting more than one user or (b) loss or corruption of data. 1.10. Service Level 3 Defect means a Priority 1 Defect with an existing Circumvention Procedure, or a Priority 2 Defect that affects only one User or for which there is an existing Circumvention Procedure. 1.11. Service Level 4 Defect means a Documented Defect that causes failure of non -essential Licensed Software functionality or a cosmetic or other Documented Defect that does not qualify as any other Service Level Defect. 1.12. Version Release means new versions of the Licensed Software that contain technical improvements, functional enhancements, updates, extensions, and/or maintenance changes to the Licensed Software. 1.13. Tvler Holidays means one (1) day for a New Year's holiday, Good Friday, Memorial Day, a one (1) day holiday for Independence Day, Labor Day, Thanksgiving Day and the day after, and two (2) days during Christmas time. The exact date for any rolling holiday will be published on the Tyler website in advance of the date. CLIENT RESPONSIBILITIES 2.1. Documenting Defects. Client must document all Defects in writing with sufficient Information to recreate the Defect or otherwise clearly and convincingly document or evidence its occurrence, including, but not limited to, the operating environment, data set, user, or any other such information that Tyler may reasonably request. Client shall deliver such information to Tyler concurrently with its notification to Tyler of a Defect. Client shall use all reasonable efforts to eliminate any non -application related issues prior to its notification to Tyler of such Defect, including, but not limited to, issues related to the network, User training, Client -produced extensions, and data problems not caused by the Licensed Software. Any technical or other issue that Client requests services, but which is not a Documented Defect, shall be treated as a request for other services and governed by Section 6. 2.2. Training. Except as provided in Exhibit A, Client shall provide training to its employees on the Licensed Software and any Version Releases related thereto. 3. TYLER RESPONSIBILITIES —APPLICATION AVAILABILITY AND OPERATIONS SUPPORT 3.1. Application Availability, (a) Tyler shall use its commercially reasonable efforts to provide access to the Licensed Software during the Application Availability Period as set forth in the goals listed in Schedule B-1. (b) Tyler shall maintain a log of any system issues that result in Downtime of more than 1 hour, excluding: (1) scheduled maintenance by Tyler's Internet Service Provider or co - located data center; (ii) periods needed to deter or correct problems due to malicious attacks or denial of service attempts; (if) Client hardware or network failure; (Iv) negligent actions by Client's agents, employees, or vendors; and (v) events of Force Ma)eure (as set forth in Exhibit A, Section 17.14). 3.2. Operations Support: Procedures for Reporting Downtime. (a) Tyler shall provide Client with procedures for contacting support staff on a twenty-four hour, seven days a week basis for the limited purpose of reporting Downtime. Client agrees to designate no more than two (2) of Client's employees who are authorized to utilize this procedure after normal Business Hours. (b) For each reported Downtime incident, Tyler shall assign appropriate personnel to diagnose and correct the Downtime. Tyler's initial response shall include an acknowledgement of notice of the Downtime, confirmation that Tyler has received sufficient information concerning the Downtime, and an action plan for resolving the Downtime. 3.3. Credit for Downtime. (a) At the end of each calendar quarter, Tyler shall prepare a report for the prior three months detailing the average percentage of Downtime during that three month period. (b) Client shall earn a credit towards the next annual payment as follows: (i) if the average percentage of Downtime during the prior quarter is less than 4%, no Downtime credit shall be earned; (it) if the average percentage of Downtime during the quarter is between 4% and 6% of the Application Availability Period during the prior quarter, Tyler shall issue a Downtime credit towards 3% of the prorated SaaS Fee for that quarter, to be applied on the next annual payment due; and (III) if the average percentage of Downtime is greater than 6% of the Application Availability Period during the prior quarter, Tyler shall issue a Downtime credit towards 5 % of the prorated SaaS Fee for that quarter, to be applied on the next annual payment due. (c) The issuance by Tyler of any Downtime credit shall not relieve Tyler of its obligations to correct the problem that resulted in Downtime in accordance with its obligations herein. However, Client acknowledges that correction may occur in the following quarter and, because of the time reasonably needed to perform any such correction, the quarter in which the correction occurs may also be affected by Downtime. (d) Notwithstanding the foregoing, the total of all credits that would be due under this SLA shall not exceed 5% of the prorated annual SaaS Fee for any one quarter. 4. TYLER RESPONSIBILITIES — HELP DESK Tyler shall provide Client with procedures for contacting support staff during normal business hours (7:00 a.m. to 7:00 p.m., Central Time, 0Monday through Friday, excluding Tyler holidays) for general application assistance. 6. TYLER RESPONSIBILITIES —DOCUMENTED DEFECTS 5.1. General Services for Reportino Documented Defects. (a) Tyler shall provide Client with procedures for contacting support staff during normal business hours (7:00 a.m. to 7:00 p.m., Central Time, Monday through Friday, excluding Tyler holidays) for reporting Documented Defects. Tyler shall assist Client in the diagnosis of any Documented Defect, including the assigned Priority and Tyler's tracking number. (b) For each reported Documented Defect, Tyler shall assign appropriate personnel to diagnose and correct the Documented Defect, and where appropriate, identify Circumvention Procedures. Tyler's initial response shall include an acknowledgement of notice of the Documented Defect, confirmation that Tyler has received sufficient information concerning the Documented Defect, and an action plan for resolving the Documented Defect and avoiding further deleterious consequences of the Documented Defect. 5.2. Service Level 1 Defects Tyler shall provide an initial response to Service Level 1 Defects within one (1) Business Hour of receipt of the Documented Defect. Tyler shall use commercially reasonable efforts to resolve such Documented Defects or provide a Circumvention Procedure within one (1) Business Day. Tylers responsibility for loss or corrupted data is limited to assisting Purchaser in restoring its database to a known, accurate state. 5.3. Service Level 2 Defects. Tyler shall provide an initial response to Service Level 2 Defects within four (4) Business Hours of receipt of the Documented Defect. Tyler shall use commercially reasonable efforts to resolve such Documented Defects or provide a Circumvention Procedure, within five (5) Business Days. Tyler's responsibility for loss or corrupted data is limited to assisting Purchaser in restoring its database to a known, accurate state 5.4. Service Level 3 Defects. Tyler shall provide an initial response to Service Level 3 Defects within one (1) Business Day of receipt of the Documented Defect. Tyler shall use commercially reasonable efforts to resolve such Documented Defect without the need for a Circumvention Procedure with the next published maintenance update or service pack, which shall occur at least quarterly. Tyler's responsibility for lost or corrupted data is limited to assisting Purchaser in restoring its database to a known, accurate state.. 5.5. Service Level 4 Defects. Tyler shall provide an initial response to Service Level 4 Defects within two (2) Business Days. Tyler shall use commercially reasonable efforts to resolve such Documented Defect with a future Version Release. 5.6. Help Desk & Desktop Support. Software Provider shall provide the Purchaser with procedures for contacting support staff during normal business hours (7:00 a.m. to 7:00 p.m., Central Time, Monday through Friday, excluding Tyler Holidays) for reporting Documented Defects or obtaining helpdesk support on general application functionality. Software provider will provide ample help desk support; however, excessive support requirements may indicate a training need and require the purchase of additional training time. 5.7. Technical Server & Systems Support. Tyler shall use commercially reasonable efforts to provide Purchaser with technical support to assist Purchaser with troubleshooting the loss of functionality of Licensed Software for reasons other than a Documented Defect. Tyler technical support shall be limited to: (a) assisting the Purchaser with isolating the source of Licensed Software failure due to systems -level hardware, Third Party Software, network, client -level hardware or peripherals; (b) providing recommendations to Purchaser regarding resolution of said non -defect failure(s); and (c) providing Purchaser with assistance on basic maintenance and administration of the Licensed Software environment, including basic data backup and restore procedures, deployment of Version Releases, and setup of supported peripheral devices for use with the Licensed Software 6. ADDITIONAL SUPPORT SERVICES Client may request support services in addition to the correction of Documented Defects by delivering to Tyler a written request outlining the nature of the services desired (a "Service Request"). Such other support services may include, without limitation, services related to: (a) additional training; (b) technical assistance; (c) programming services; (d) installation of add -on components; and/or (a) business analysis. Tyler shall provide to Client a written response to the request which describes in detail the anticipated impact of the request on the existing Licensed Software, the time required to perform such services, an implementation plan, and a schedule of the fees related thereto. Fees for additional support services shall be billed by Tyler directly to Client and shall be invoiced monthly, which shall be due and payable within thirty (30) days. 7. VERSION RELEASES Tyler shall provide Version Releases of the Licensed Software on not less than an annual basis. Tyler shall notify Client of the occurrence of a new Version Release and shall provide Client with access to such Version Releases for the Licensed Software in a prompt manner that is consistent With Tyler's business practices for client's utilizing the Licensed Software under a software as a service agreement. 8. THIRD PERSON SOFTWARE 8.1. Notice of New Third Person Software. Tyler shall provide Client with advanced notice of any mandated new Third Person Software revision that shall be required to use the Licensed Software. Tyler shall, to the extent practicable, minimize the need for Client to rely upon updates of Third Person Software. 8.2. Tyler Certification. At Tyler's expense, Tyler shall certify the compatibility of Third Person Software components used by the Licensed Software and maintain a list of supported Third Person Software release levels. Version Releases shall be certified to supported versions of all required Third Person Software. Tyler shall certify new releases of Third Person Software within a reasonable timeframe. 83. Costs. Client is responsible for all costs associated with installing and maintaining Third Person Software versions that are identified on Tyler's list of certified Third Person Software. [Remainder of this page intentionally left blank] EXHIBIT B — Page 2 of 2 (Schedule B-1) Application Availability Period Service Levels Type Description Goal Application Availability All operational time as set forth under "Goal', and which is outside the Operational Maintenance Window, and where Tyler has not announced its 10:00 a.m. Central Time Sunday to 06:00 a.m. Central Time Sunday Period intent to perform maintenance at least forty-eight (48) hours in advance. Total of 164 hours per week. Operational Maintenance The Operational Maintenance Window happens weekly. During this time, 0600 a.m. to 10:0 aa.m. Central Time Window Tyler can take its Odyssey servers off-line (no Internet access) and Sunday. perform work on supporting hardware. Tyler will provide 48 hours notice to the Client if the Odyssey application will be unavailable during the maintenance period. The Application maintenance period includes upgrades or replacements of Tyler servers, data storage, data backup, and supporting hardware. This period also covers software maintenance items that include scheduled hot fixes, quarterly service releases, operating system security patches and upgrades, and so forth. If an Odyssey application hot fix must be performed outside the Application maintenance period and impacts application availability, Tyler will provide 24-hour notice to the Client. Backups Nightly backups of the following files will be completed: production Nightly databases, images, forms, and other documents. Client data transactions are saved every 15 minutes during the Application Availability Period. Every night, a full database backup is performed, including client images, forms, and other documents. Back-up media will be cycled off -site nightly to a fireproof vault. Nightly backups are stored offsite. CERTIFICATE OF INTERESTED PARTIES FORM 1295 1of2 OFFICE USE ONLY Complete Nos. i - 4 and G it there are interested parties. Complete Nos, 1.2, 3, 5, and G It there are no interested parties, CERTIFICATION OF FILING Certificate Number: 1 Name of business entity filing form, and the city, stale and country of the business entity's place of business, 2016.107276 Tyler Technologies, Inc. Piano, TX United States Date Flied: 2 Name of governmental entity or state agency that is a party to the contract for which the forms 0910IJ2016 being filed. Date Acknowledged: Calhoun County Provide the Identification number used by the governmental entity or state agency to track or identity the contract, and provide a 3 description of the services, goods, or other Property to be provided under the contract. unavailable Odyssey Case Manager and Attorney Manager Software Nature of interest 4 Name of Interested Party City, State, Country (place of business) (check applicable) Controlling Intermediary Pope, Daniel Plano, TX United States X Leinweber, Larry Plano, TX United States X Miller, Brian Plano, TX United States X Moore, H, Lynn Plano, TX United States X Carter, Glenn Plano, TX United Slates X Womble, Dustin Lubbock, TX United States X King, J. Luiher Piano, TX United States X Bradain, Donald Plano, TX United States X Cline, Brenda Plano, TX United States X Yeaman, John Plano, TX United States X Yarmouth, TX United States X Marr, John ...... _... ..... .., .... Version V1.0.277 Forms provided by Texas Ethics Commisslor CERTIFICATE OF INTERESTED PARTIES FORM 3.295 2 or2 Complete Nos. 1 - a and 611 there are interested parties. OFFICE USE ONLY Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. CERTIFICATION OF FILING Certificate Number: i Name of business entity filing form, and the city, state and country of the business entity's place of business. 2016-107276 Tyler Technologies, Inc. Piano, TX United States Date Filed: 2 Name of governmental entity or state agency that is a party to the contract for w iorm ch the s 09/01/2016 being filed. Date Acknowledged: Calhoun County 3 Provide the identification number used by the governmental entity or state agency to track or Identity the contract, and provide a description of the services, goods, or other property to be provided under the contract. unavailable Odyssey Case Manager and Attorney Manager Software Nature of interest a Name of Interested Party City, State, Country (place of business) (check applicable) Controlling Intermediary 5 Check only ii there is NO Interested Party. 6 AFFIDAVIT I swear, or affirm. under penalty of perjury, that the above disclosure is true and correct. SOPHIA 1. THOMAS rrr^^^ Notary Public, State of Texas Expires 06.23.2018 Comm. Notaty ID 126488136 gnalure of authorized agent td-confr ung business entity AFFIX NOTARY STAMP I SEAL ABOVE sworn to and subscribed before me, by the saitl _,,,,er V- j ^� L-L� this the i day of �T ff� 20 t G , to certify which, witness my hand and seal of office. Sig tore of officer administering oath Printed name of officer administering oath Title of officer dminisledng oath Vnrcinn V1.0.277 Forms provided by Texas Ethics Commission www.effucs.ntdte.u.u� CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos, 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2016-107276 Date Filed: 09/01/2016 Date Acknowledged: 09/19/2016 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. Tyler Technologies, Inc. Plano, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. Calhoun County 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. unavailable Odyssey Case Manager and Attorney Manager Software 4 Name of Interested Party City, State, Country (place of business)(check Nature of interest applicable) Controlling Intermediary Pope, Daniel Plano, TX United States X Leinweber, Larry Plano, TX United States X Miller, Brian Plano, TX United States X Moore, H. Lynn Plano, TX United States X Carter, Glenn Plano, TX United States X Womble, Dustin Lubbock, TX United States X King, J. Luther Plano, TX United States X Brattain, Donald Plano, TX United States X Cline, Brenda Plano, TX United States X Yeoman, John Plano, TX United States X Mart, John Yarmouth, TX United States X Forms provided by Texas Ethics Commission www.ethics.state.tx.us versiun v1.0.2 i CERTIFICATE OF INTERESTED PARTIES FORM 1295 2 of Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. 2016-107276 Tyler Technologies, Inc. Plano, TX United States Date Filed: 2 Name of governmental entity or state agency that is a party to the contract for which the form is 09/01/2016 being filed. Calhoun County Date Acknowledged: 09/19/2016 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. unavailable Odyssey Case Manager and Attorney Manager Software Nature of interest 4 Name of Interested Part Y City, State, County lace of business X Yip ) check applicable) ( PP ) Controlling I Intermediary 5 Check only if there is NO Interested Party. ❑ 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. Signature of authorized agent of contracting business entity AFFIX NOTARY STAMP / SEAL ABOVE Sworn to and subscribed before me, by the said this the day of , 20 , to certify which, witness my hand and seal of office. Signature of officer administering oath Printed name of officer administering oath Title of officer administering oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.27 RESOLUTION REGARDING FIRST RESPONDERS DAY: Judge Pfeifer made a motion to approve Resolution regarding First Responders Day. Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. H a i rd O F'. o •-d O oU acgqid. �.� ti NPoa �Ey q o ;G o o v cli°' B O u Y Y „ v VI GO o o uv ceP� q a� o y a 0 0.� o dri1AA`a p P, A °D ¢ o o u u su. b °' w aim q 0, UC) pp o o a> N W can w o b Qa Iti ct� N y CC .Yip ,tY.i L� . O N O o t' ro U o w o q ¢ aGi A 'Cod 0 U A o d Pi U o conU R 0° o A o a o H o ° o U m° a U A> H 11 O 21 +� c6 O '+ +� f�+: O d PR iN+ U O m ou U� to O w r/i a7 ' 0 'C u +'C- C w w w 9° s �� Qwr) ++ � ,.o .� cad CL W �+ Y ,Q (IN) [��1 'L❑3 m i/j U2 U1 p� w q q o Uj W o 0 O f�N 4J O .G r•+ Y � O O W N u a&1 a) N on qA Y q w orb W A 0 0 c � �" I o o Q o w a o J d 0 0 o U? W A A o Z W 0 MASTER AGREEMENT FOR PROFESSIONAL SERVICE WITH FREESE AND NICHOLS AND CONTRACT WITH FREESE AND NICHOLS FOR PROJECT MANAGEMENT OF CEPRA (COASTAL EROSION PLANNING AND RESPONSE ACT) CYCLE 0, PROJECT #1624, PORT ALTO NORTH BEACH EMERGENCY SHORELINE PROTECTION PROJECT AND ALLOW COMMISSIONER FRITSCH TO SIGN: PASS CALHOUN COUNTY COMMISSIONER, PRECINC 24627 Slate Hwy: 172 -- Olivia, Port Lavaca, Texas 77979 —Office (361) ElO-5346 —Fax (361) $ Neil E. Fritsch, Commissioner, Pct. 3 Email: neil,frifsch@calhouncotx.org August 31, 2016 To: Honorable Judge Michael Pfeifer From: Neil Fritsch Re: Agenda Item 0 Please place the following item on the Commissioner's Court Agenda for September 8, 2916: "Consider and Take Necessary Action to enter into contract with Freese andNiehOls for Project Management of CEPRA (Coastal Erosion Planning and Response Act) Cycle 9, Project # 104, Port Alto North Beach Emergency Shoreline Protection Project and allow Commissioner Fritsch to sign." Respectfully, "i�d cc: Roger Galvan Vern Lyssy Kenneth Finster Susan Riley Rev. 06110 rm."NICHOLS FREESE SCHEDULE A TASK AUTHORIZATION Client: Calhoun County FNI Project No.: CCY T.A. No.: 2 PhaselTasklDept. No.: Date: Aug 09, 2016 This authorization is in accordance with the terms and conditions outlined in the Master Agreement executed on May 13, 2016 and expires on December 31, 2020. Project Description: CEPRA Cycle 9 — Port Alto Emergency Shoreline Protection Description of Services: *Task 1. Project Management ($7,561). *Task 2. Permit Amendment ($24,243). intertidal dredging and material placement; Offshore breakwaters at north beach. *Task 3. Engineering and Construction Documents ($23,108). *Task 4. General Construction Support Services ($15,437). Deliverables: Task 2 - Approved permit amendment Task 3—Sealed Plans and Specifications for construction Task 4— Site Visit Memorandum(s) *(CEPRA Reimbursable to County, up to $62,500 for local match) Compensation shall be as follows: Not to Exceed for Project Management and Tasks 1.a —1d. in accordance with Attachment CO Amount of this Authorization $75,030 Schedule shall be as follows: All project activities will begin upon NTP from Calhoun County. Task 2Is expected to require 9-12 months. Tasks 3, and 4 will be com Ieied b Au ust 31, 2017. The above descdbed services shall proceed upon return of this Task Authorization. Services will be billed as they are done. All otherprovlslons, terms, and conditions of the agreement for services which are not expressly amended shall remain in full force and effect. ❑ A contract modification will be submitted. ® This Task Authorization will serve as notice to proceed. CLIENT: CALHOUN COUNTY ON DATE: Print or Type Name 10431 Morado Circle, Suite 300 • Austin, Texas 78759 • 512-617.3100 • fax 512-617-3101 www.freesL,.com Attachment A Scope of Work PROJECT OVERVIEW The project site is located on the western shoreline of Carancahua Bay, just north of the town of Port Alto In Calhoun COUNTY, The area of Interest Is composed of shoaling shorelines located at the mouth of two intertidal channels and a beach area that Is being eroded. Currently, local shoaling processes are blocking the Intertidal circulation that supports approximately nine acres of marsh and about six acres of Intertidal habitat, and the marsh area Is in danger of being converted Into open bay due to storm surges and the continual erosive forces of the bay on the north side of the marshes. The shoaling areas are located on the west side and need to be dredged to allow the intertidal channels to feed the marsh system, as Indicated In Figure 1. As part of this project, the sediments blocking the intertidal flow will be excavated and placed onto the adjacent Port Alto Beach to provide nourishment and relief from the Immediate threat of shoreline breach. The shoreline restoration Involves the protection of about 15 acres of marsh from breaching of the eroding north beach and subsequent increase In penetrating wave energy. The goal of this project Is to permit beneficial use of dredge material that Is blocking the Intertidal flows to the marshes. Figure 1: Project Site MID Scope ❑f Services for Port Alto Reach North Reach Shoreline Restoration Project, -.-� a CEPRA Grant Cycle 9 August R, 2016 Page 2 of 5 FNI will perform the following services for the Port Alto Beach North Beach Shoreline Restoration Project (Project) in accordance with the Scope of Work (SOW) herein listed. FNI's work will consist of project management, amending the beach sediment source permit, design of beach nourishment plan, and general construction oversight of beach nourishment material placement at the project site, The work under this scope will consist of: PROJECT MANAGEMENT • Coordinate with COUNTY and construction contractor to develop path forward for placement of beach sediment material. • Meet with Contractorto finalize construction approach • Provide project management support to assist COUNTY with project construction USACE PERMITTING • Identify possible permit amendments, or additional USACE permit requirements and considerations • Work with regulatory agencies to amend USACE Permit SWG-2012-00493 to include excavation of material from the inter -tidal channel and placement of material onto the adjacent beach. DESIGN AND GENERAL CONSTUCTION SUPPORT • Develop plans and specifications for bid and assist the COUNTY with its procurement process in the solicitation of price proposals from qualified contractors • Provide general oversight on behalf of the COUNTY during construction to assess If contractor performs the work In accordance with plans, specifications, and approved permits The following project tasks provide details for the Permitting and Beach Restoration Project as part of CEPRA grant for Cycle 9. TASK 1.00 General Items (Basic Services) 1. Attend one kickoff meeting to discuss the scope, budget and schedule of the project. 2. Attend one pre -design site visit to investigate the site and determine site conditions related to: a. Existing environmental conditions; b. Identify items that may Impact environmental permitting. c. Construction and marsh access; d. Potential staging areas; e. Site security during construction; 3. Provide monthly progress reports to the COUNTY during the permitting and construction phases detailing: a. Completed action items; b. Project schedule updates; c. Requests for information from the City; d, New action items. 4. Coordinate with the Project Team (COUNTY and FNI) throughout the project to receive project design Information, communicate discussions with the USACE, and address design/permit activities. Scope of Services for CEPRA Cycle 9 CEPRA Project No. 16A Part Alto North Reach Shoreline Restoration Project Scope of Services for Port Alto Beach North Beach Shoreline Restoration Project, CEPRA Grant Cycle 9 August R, 2016 Page 3 of S TASK 2.00 USAGE Permit SWG-2012-00493 Amendment (Basic Services) 1. Conduct a site visit to observe and document existing conditions and Identify potential waters of the U.S.; Including wetlands and habitat for federally listed threatened and endangered species at the dredging and disposal area. 2, Prepare a letter to the US Army Corps of Engineers (USACE) requesting a pre -application meeting. This letter will include a brief description of the project, Its purpose and need, a map of the project location and layout, and other pertinent information. Coordinate and attend the pre -application meeting with the USACE. The objective of the meeting will be to give the USACE an overview of the project, receive the USACE's feedback, identify the preferred permitting approach and potential Issues, discuss compensatory mitigation requirements (if any), and discuss an estimated timeline for permit authorization. 3. Prepare a preliminary jurisdictional determination (PJD) report following USACE's guidelines that identifies and delineates water bodies within the limits of the proposed project area. The PJD report will Include maps, wetland data sheets, ground -level photographs, and other supporting documentation. The PJD report will be Included in the permit application described below. 4. Prepare permit amendment application for submittal to the USACE. Application will include appropriate documents for compliance to USACE requirements. The permit application will require drawings (plan, profile, and cross-sectlon) that are sufficiently complete so that substantial changes will not occur to the design once it is submitted. 5. Submit the draft permit amendment application to the COUNTY for review and comment. Finalize the permit application based on the COUNTY's comments and then submit It to the USACE. 6. Coordinate with the USACE to address questions and requests for information regarding the permit application. FNI will attend one meeting at the site, if requested by the USACE. 7, Prepare Permit Compliance Report, If required by USACE, within 60 days of construction completion. Conduct a site visit following the completion of construction to document and photograph post - construction conditions at the project Site. Prepare a permit compliance report including photographs from the site visit for submittal to the USACE. TASK 3.00 Engineering and Construction Documents (Basic Services) 1. Develop 60% plans and specification table of content for construction. Submit plans for COUNTY review. 2. Address COUNTY's comments on 60% documents and prepare draft issued for Bid construction documents for COUNTY review and approval. 3. Address COUNTY's comments and prepare sealed Issued for Bid Set, 4, Prepare opinion of probable construction cost and construction schedule. 5, Attend up to two (2) meetings with the COUNTY to discuss design progress, bidder's questions, and addenda as needed, 6. Research available dredge contractors and provide the COUNTY with a list of up to five (S) potential bidders, 7. Maintain Information on entities that have been issued a set of bid documents, Distribute Information on plan holders to interested contractors and vendors on request, 8. Assist the COUNTY by responding to questions and Interpreting bid documents. Prepare and issue addenda if necessary. 9. Assist the COUNTY In conducting a pre -bid conference forthe construction projects and coordinate responses with COUNTY. Response to the pre -bid conference will be in the form of addenda issued Scope of Services for CEPRA Cycle 9 CEPRA Project No. 1624 Port Alto North Beach Shoreline Restoration Project �_M' m Scope of Services for Port Alto Beach North Beach Shoreline Restoration Project, CEPRA Grant Cycle 9 August 8, 20M Page 4 of 5 after the conference. Attend a tour of the project site after the pre-bld conference if required by the COUNTY. 10. Assist the COUNTY in opening, tabulating, and analyzing the bids received. Review the qualification Information provided by the apparent low bidder to determine If, based on the Information available, they appear to be qualified to construct the project. Recommend award of contracts or other actions as appropriate to be taken by the COUNTY. 11. Assist COUNTY In the preparation of conformed construction documents for signature by selected qualified low bidder. Distribute two (2) copies of these conformed construction documents to the contractor with a notice of award that Includes directions for the execution of these documents. Additional sets of documents can be provided as an additional service, 12. Assist COUNTY In conducting one preconstruction conference with the Contractor and review construction schedules prepared by the Contractor pursuant to the requirements of the construction contract. 13. Establish and maintain a project documentation system consistent with the requirements of the construction contract documents. Monitorthe processing of contractor's submittals and provide for filing and retrieval of project documentation. Review contractor's submittals, including, requests for Information, modification requests, shop drawings, schedules, and other submittals In accordance with the requirements of the construction contract documents for the projects. TASK 4,00 General Construction Support Services (Basic Services) FNI will proceed with the performance of construction administration services as described below. FNI will endeavorto protect the COUNTY in providing these services however, It is understood that FNI does not guarantee the Contractor's performance, nor is FNI responsible for supervision of the Contractor's operation and employees. FNI shall not be responsible for the means, methods, techniques, sequences or procedures of construction selected by the Contractor, or any safety precautions and programs relating in any way to the condition of the premises, the work of the Contractor or any Subcontractor. FNI shall not be responsible for the acts or omissions of any person (except its own employees or agents) at the Project site or otherwise performing any of the work of the Project. 1. Make up to four (4) visits, appropriate to the stage of construction, to the site to observe the progress and the quality of work and to attempt to determine in general if the work is proceeding In accordance with the Construction Contract Documents. Notify the COUNTY of non -conforming work observed on site visits. In this effort FNI will endeavor to protect the COUNTY against defects and deficiencies in the work of Contractors and will report any observed deficiencies to COUNTY. Visits to the site in excess of the specified number are an additional service. 2. Rased on FNI's observations as an experienced and qualified design professional and review of the Payment Requests and supporting documentation submitted by Contractor, determine the amount that FNI recommends Contractor be paid on monthly and final estimates. 3. Review quality related documents provided by the contractor such as test reports, equipment Installation reports or other documentation required by the Construction contract documents. 4. Interpret the drawings and specifications for COUNTY and Contractor. Investigations, analyses, and studies requested by the Contractor and approved by COUNTY, for substitutions of equipment and/or materials or deviations from the drawings and specifications are an additional service, 5, Conduct, In company with COUNTY's representative, a final review of the Project for conformance with the design concept of the Project and general compliance with the Construction Contract Documents. Prepare a list of cleficiencles to be corrected by the contractor before recommendation of final payment. Scope of Services for CEPRA Cycle 9 CEPRA Project No. 1624 Port Alto North Beach Shoreline Restoration Project MINIMUM-- t Scope of Services for Port Alto Beach North Reach Shoreline Restoration Project, ` i �a f @ >< CEPRA Grant Cycle 9 August 8, 2016 Page 5 of 5 6. Revise the construction drawings in accordance with the information furnished by construction Contractor(s) reflecting changes In the project made during construction. Two (2) sets of prints of "Record Drawings" shall be provided by FNI to COUNTY. ADDITIONAL SERVICES: The following services are not included in the Basic or Special Services, but can he provided by FNI upon amendment and written authorization by the COUNTY: 1. Field layouts or the furnishing of construction line and grade surveys. 2. Making property, boundary and right-of-way surveys, preparation of easement and deed descriptions, including title search and examination of deed records. 3. Furnishing the services of a Resident Project Representative to act as COUNTY's on -site representative during the Construction Phase, 4. Preparation of Environmental information Document, Environmental Assessment, or an Environmental Impact Statement. 5. Meetings or consultation with the USAGE or other resource agencies, except as specifically noted In the scope of services. 6. Presence/absence surveys for federally listed threatened/endangered species. 7. Preparation of a mitigation plan to compensate for Impacts to waters of the U.S. 8. Application to Texas Commission on Environmental Quality for individual 401 Water Quality Certification. 9. Application for General Land office easements. 10. Application for Texas Parks & Wildlife Department Sand and Gravel Permit. 11, Additional field Investigations or analysis required to respond to public or regulatory agency comments. 12. Consultation with the U. S. Fish and Wildlife Service under Section 7 of the Endangered Species Act. 13. Expert representation at legal proceedings or at contested hearings. 14. Monitoring for compliance with permit conditions. 15, Stormwater Pollution Prevention Plan, 16. Spill Prevention Control and Countermeasures Plan. Scope of Services for CEPRA Cycle 9 CEPRA Project No. 1624 Port Alto North Reach Shoreline Restoration Project ATTACHMENT CO COMPENSATION Compensation to FNI for Basic Services In Attachment SC shall be computed on the* basis of the Schedule of Charges, but shall not exceed Seventy Five Thousand Thirty Dollars and No Cents ($75,030). If FNI sees the Scope of Services changing so that Additional Services are needed, Including but not limited to those services described as Additional Services in Attachment SC, FNI will notify OWNER for OWNERB approval before proceeding. Additional Services shall be computed based on the Schedule of Charges. Schedule of Charues: Position Rate Professional - 1 107 Professional - 2 130 Professional - 3 146 Professional - 4 169 Professional - 5 197 Professional - 8 225 Construction Manager-1 85 Construction Manager - 2 111 Construction Manager- 3 131 Construction Manager - 4 164 CAD Technician/Designer -1 91 CAD Technician/Designer - 2 117 CAD Technician/Deslgner-3 145 Corporate Project Support -1 87 Corporate Project Support - 2 105 Corporate Project Support - 3 139 Intern! Coop 53 Rates for In -House Services Technology Charge Bulk Printing and Reproduction $8.60 par hour B&W Color Small Format (per copy) $0.10 $0.25 Travel Large Format (per sq. ft) Standard IRS Rates Bond $0.25 $0.75 Glossy/Mylar $0.75 $1.25 Vinyl/Adhesive $1.50 $2.00 Mounting (persq. a.) $2.00 Binding (per binding) $0.25 OTHER DIRECT EXPENSES: Other direct expenses are reimbursed at actual cost times a multiplier of 1.10. They include outside printing and reproduction expense, communication expense, travel, transportation and subsistence away from the FNI office and other miscellaneous expenses directly related to the work, Including costs of laboratory analysis, test, and other work required to be done by independent persons other than staff members. For Resident Representative services performed by noh-FNI employees and CAD services performed In-house by non-FNI employees where FNI provides workspace and equipment to perform such services, these services will be billed at cast times a multiplier of 2.0. This markup approximates the cost to FNI if an FNI employee was performing the same or similar services. These rates are subject to annual adjustment. Last Updated February 2015. 1022015 FNI.. OWNER SCHEDULE D FllVO SUBCONSULTANT Rev. 12113 MASTER AGREEMENT FOR PROFESSIONAL SERVICES STATE OF TEXAS COUNTY OF CALHOUN This AGREEMENT is entered into by Calhoun County, hereinafter called "Owner" and Freese and Nichols, Inc„ hereinafter called "FNI." In consideration of the AGREEMENTS herein, the parties agree as follows: I. EMPLOYMENT OF FNI: In accordance with the terms of this AGREEMENT: Owner agrees to employ FNI; FNI agrees to perform professional services in connection with various Projects; Owner agrees to pay to Fill compensation. A detailed description of the various Projects scope and fee will be outlined in Task Authorizations as services are requested by Owner. FNI will not begin services until a Task Authorization is agreed upon by FNI and Owner, An example of this Task Authorization is included as Schedule "A," E. SCOPE OF SERVICES; FNI shall provide professional services in connection with Projects as set forth in Attachment SC - Scope of Services and Responsibilities of Owner which is attached to and made a part of this AGREEMENT. Details concerning the specific Scope of Services for projects will be included in the Task Authorization, III. COMPENSATION: Owner agrees to pay FNI for all professional services rendered under this AGREEMENT in accordance with Attachment CO - Compensation, which is attached hereto and made a part of this AGREEMENT. FNI shall pat -form professional services as outlined in various Task Authorizations. Details concerning the fee will be included in the Task Authorizations, IV, TERMS AND CONDITIONS OF AGREEMENT: The Terms and Conditions of Agreement as set forth as Attachment TC shall govern the relationship between the Owner and FNI. Nothing under this AGREEMENT shall be construed to give any rights or benefits in this AGREEMENT to anyone other than Owner and FNI, and all duties and responsibilities undertaken pursuant to this AGREEMENT will be for the sole and exclusive benefit of Owner and FNI and not for the benefit of any other party, This AGREEMENT constitutes the entire AGREEMENT between Owner and FNI and supersedes all prior written or oral understandings. This AGREEMENT is valid thru December 31, 2020 and may be extended by mutual Agreement. This contract is executed in two counterparts, IN TESTIMONY HEREOF, they have executed this AGREEMENT, the 13 day of May 2016. ATTEST: CALHOUN COUNTY c(Oai )0A1.t2� By Sad Print or Type Name & Title ATTEST: FREESE AND NICHOLS, INC. �. Ey: It r o/t. AJ ue� Print or Type Nome & Title Rm 121D SCOPE OF SERVICES AND RESPONSIBILITIES OF Owner ARTICLE I ATTACHMENT SC BASIC SERVICES: FNI shall provide the following professional services in connection with the development of the Project: A. PRELIMINARY PHASE 1. Study and Report Phase Upon execution of this AGREEMENT, FNI shall: a, Consult with Owner: (1) to review the scope of services, (2) to verify Owner's requirements for the Project, and (3) to review available data. b. Advise Owner as to the necessity of Owner's providing or obtaining data or services from others, and assist Owner in connection with any such services, c, Provide analyses of Owner's requirements for the Project, as verified in Article I, Paragraph A.l.a„ including planning, and surveys. d, Prepare a Report containing schematic layouts, sketches and conceptual design criteria with appropriate exhibits to indicate the considerations involved and some alternative solutions available to Owner and setting forth FNI's findings and recommendations with opinions of probable construction costs for the Project, which includes estimates of contingencies and allowances for charges of professionals and consultants, Estimates of the cost of land and rights of way, compensation for or damages to properties and interest and financing charges will be provided by Owner or others so designated by Owner. In arriving at its opinion of probable construction cost for the Project, FNI will include the estimates furnished by Owner and will have no responsibility to determine the accuracy or validity of these estimates. The alternate solutions shall be limited to not more than three. e, Furnish three (3) copies of the Report and present and review it in person with Owner, 2. Preliminary Design Phase a, After Owner has accepted the report and has issued written authorization to proceed with the Preliminary Design Phase, FNI shall: b. Prepare preliminary design documents consisting of final design criteria, preliminary drawings and outline specifications. c. Based on the information contained in the preliminary design documents, submit a revised opinion of probable Project Costs. d, Furnish three (3) copies of the above preliminary design documents and present and review them with Owner, B. DESIGN PHASE: FNI shall provide professional services in this phase as follows: 1. Prepare drawings, specifications, Construction Contract Documents, designs, and layouts of improvements to be constructed (surveys to be furnished as Additional Services, pursuant to Article 11)• 2. Advise Owner of need for and recommend scope of subsurface investigations, special analysis, etc, and the retention of special consultants. a. The cost of such services shall be paid by Owner and are not included in the services performed L-,%esoarces\OLCR\aCoihounCounty\Moster SC-2 Owner* Rev. 12/13 by FNI, 3. Furnish Owner, when requested, the engineering data necessary for applications for routine permits required by local, state and federal authorities. Preparation of applications and supporting documents for government grants or for planning advances is an Additional Service. 4. Submit drawings, specifications, and Construction Contract Documents to the applicable federal and state agency(s) for approval, where required. S. Furnish such information necessary to utility companies whose facilities may be affected or services may be required for the Project. 6. Prepare revised opinion of probable construction cost. 7. Prepare bidder's proposal forms (project quantities) of the improvements to be constructed. 8, Furnish Owner three (3) sets of copies of drawings, specifications, and bid proposals marked "Preliminary" for approval by Owner, Upon final approval by Owner, FNI will provide Owner one (1) set of reproducible "Final" drawings and loose set of specifications for reproduction by Owner, C. BID OR NEGOTIATION PHASE. Upon completion of the design services and approval of "Final" drawings and specifications by Owner, FNI will proceed with the performance of services in this phase as follows: 1. Assist Owner in securing bids. Issue a Notice to Bidders to prospective contractors and vendors listed in FM's database of prospective bidders, and to selected plan rooms. Provide a copy of the notice to bidders for Owner to use in notifying construction news publications and publishing appropriate legal notice. The cost for publications shall be paid by Owner. 2. Assist Owner by responding to questions and interpreting bid documents, Prepare and issue addenda to the bid documents to plan holders if necessary. 3. At Owner request, FNI will assist Owner in the opening, tabulating, and analyzing the bids received. Review the qualification information provided by the apparent low bidder to determine if, based on the information available, they appear to be qualified to construct the project, Recommend award of contracts or other actions as appropriate to be taken by Owner. Pre -qualification of all prospective bidders and issuing a list of eligible bidders prior to the bid opening is an additional service. 4. Assist the Owner in conducting a pre -bid conference for the construction projects and coordinate responses with Owner. Response to the pre -bid conference will be in the form of addenda issued after the conference. Attend the tour of the project site after the pre -bid conference, 5. Assist Owner in the preparation of Construction Contract Documents for construction contracts, Provide up to ten (10) sets of Construction Contract Documents which include information from the apparent low bidders bid documents, legal documents, and addenda bound in the documents for execution by the Owner and construction contractor. Distribute five (5) copies of these documents to the contractor with a notice of award that includes directions for the execution of these documents by the construction contractor. Provide Owner with the remaining five (5) copies of these documents for use during construction. Additional sets of documents can be provided as an additional service. 6, Furnish contractor copies of the drawings and specifications for construction pursuant to the General Conditions of the Construction Contract. D. CONSTRUCTION PHASE: Upon completion of the bid or negotiation phase services, FNI will proceed with the performance of construction phase services as described below, FNI will endeavor to protect Owner it) providing these services however, it is understood that FNI does not guarantee the Contractor's performance, nor is FNI responsible for supervision of the Contractor's operation and employees. FNI shall not be responsible for the means, methods, techniques, sequences or procedures of construction selected by the Contractor, or any safety precautions and programs relating In any way to the condition of L-.WesoumesloLCR\QCelheunCounlyVAuter FM VVIASC-3 Owner Rcv. 12113 the premises, the work of the Contractor or any Subcontractor. FNI shall not be responsible for the acts or omissions of any person (except its own employees or agents) at the Project site or otherwise performing any of the work of the Project. These services are based on the use of FM standard General Conditions for construction projects, Modifications to these services required by use of other general conditions or contract administration procedures is an additional service, If general conditions other than FNI standards are used, the Owner agrees to include provisions in the construction contract documents that will require the construction contractor to include FNI and their subeonsultants on this project to be listed as an additional insured on contractor's insurance policies. 1. Assist Owner in conducting pre -construction conference(s) with the Contractor(s), review construction schedules prepared by the Contractor(s) pursuant to the requirements of the construction contract, and prepare a proposed estimate of monthly cash requirements of the Project from information provided by the Construction Contractor, 2. Establish communication procedures with the Owner and contractor. Submit (Insert frequency; i.e. monthly, bi-monthly, quarterly, etc,) reports of construction progress, Reports will describe construction progress in general terms and summarize project costs, cash flow, construction schedule and pending and approved contract modifications, 3. Establish and maintain a project documentation system consistent with the requirements of the construction contract documents. Monitor the processing of contractor's submittals and provide for filing and retrieval of project documentation. Produce monthly reports indicating the status of all submittals in the review process. Review contractor's submittals, including, requests for information, modification requests, shop drawings, schedules, and other submittals in accordance with the requirements of the construction contract documents for the projects. Monitor the progress of the contractor in sending and processing submittals to see that documentation is being processed in accordance with schedules. 4, Based on FNI's observations as an experienced and qualified design professional and review of the Payment Requests and supporting documentation submitted by Contractor, determine the amount that FNI recommends Contractor be paid on monthly and final estimates, pursuant to the General Conditions of the Construction Contract, 5, Make visits appropriate to the stage of construction to the site (as distinguished from the continuous services of aResident Project Representative) to observe the progress and the quality of work and to attempt to determine in general if the work is proceeding in accordance with the Construction Contract Documents, In this effort FNI Will endeavor to protect the Owner against defects and deficiencies in the work of Contractors and will report any observed deficiencies to Owner. The number of site visits for projects will be included in the Task Authorizations. Visits to the site in excess of the specified number are an additional service. 6. Notify the contractor of non -conforming work observed on site visits. Review quality related documents provided by the contractor such as test reports, equipment installation reports or other documentation required by the Construction contract documents, q. Coordinate the work of testing laboratories and inspection bureaus required for the testing or inspection of materials, witnessed tests, factory testing, etc, for quality control of the Project. The cost of such quality control shall be. paid by Owner and is not included in the services to be performed by FNI. 8. Interpret the drawings and specifications for Owner and Contractor(s), Investigations, analyses, and studies requested by the Contractor(s) and approved by Owner, for substitutions of equipment and/or materials or deviations from the drawings and specifications is an additional service. L,XRmourees%OLCR\C\CdhounCountyV4aster pNI VMY SC-4 Owner Rev. 12/13 9. Establish procedures for administering constructive changes to the construction contracts, Process contract modifications and negotiate with the contractor on behalf of the Owner to determine the cost and time impacts of these changes. Prepare change order documentation for approved changes for execution by the Owner, Documentation of field orders, where cost to Owner is not impacted, will also be prepared. Investigations, analyses, studies or design for substitutions of equipment or materials, corrections of defective or deficient work of the contractor or other deviations from the construction contract documents requested by the contractor and approved by the Owner are an additional service. Substitutions of materials or equipment or design modifications requested by the Owner are an additional service, 10. Prepare documentation for contract modifications required to implement modifications in the design of the project. Receive and evaluate notices of contractor claims and make recommendations to the Owner on the merit and value of the claim on the basis of information submitted by the contractor or available in project documentation, Endeavor to negotiate a settlement value with the Contractor on behalf of the Owner if appropriate. Providing these services to review or evaluate construction contractors) claim(s), supported by causes not within the control of FM are an additional service, It. Assist in the transfer of and acceptance by the construction contractor of any Owner furnished equipment or materials. 12. Conduct, in company with Owner's representative, a finalreview of the Project for conformance with the design concept of the Project and general compliance with the Construction Contract Documents. Prepare a list of deficiencies to be corrected by the contractor before recommendation of final payment. Assist the City in obtaining legal releases, permits, warranties, spare parts, and keys from the contractor. Review and comment on the certificate of completion and the recommendation for final payment to the Contractor(s). Visiting the site to review completed work in excess of two trips are an additional service. 13, Revise the construction drawings in accordance with the information furnished by construction Contractor(s) reflecting changes in the Project made during construction. Two (2) sets of prints of "Record Drawings" shall be provided by FNI to Owner. ARTICLE II ADDITIONAL SERVICES: Additional Services to be performed by FNI, if authorized by Owner, which are not included in the above described basic services, are described as follows: A. Field surveying required for the preparation of designs and drawings. E. Field layouts or the furnishing of construction line and grade surveys. C. OIS mapping services or assistance with these services, D. Making property, boundary and right of way surveys, preparation of easement and deed descriptions, including title search and examination of deed records. E. Providing services to investigate existing conditions or facilities, or to make measured drawings thereof, or to verify the accuracy of drawings or other information furnished by Owner, F. Providing renderings, model and mock-ups requested by the Owner, O. Making revisions to drawings, specifications or other documents when such revisions are 1) consistent with approvals or instructions previously given by Owner or 2) due to other causes not solely within the control of FNh H. Providing consultation concerning the replacement of any Work damaged by fire or other cause during the construction, and providing services as may be required in connection with the replacement of such Work. L;Utesourcu%OLCR\MCalhounCounty\Muster FM VIAV SC-5 Owner Rev, 12/13 I. Investigations involving consideration of operation, maintenance and overhead expenses, and the preparation of rate schedules, earnings and expense statements, feasibility studies, appraisals, evaluations, assessment schedules, and material audits or inventories required for certification of force account construction performed by Owner, L Preparing applications and supporting documents for government grants, loans, or planning advances and providing data for detailed applications. K. Providing shop, mill, field or laboratory inspection of materials and equipment. Observe factory tests of equipment at any site remote to the project or observing tests required as a result of equipment failing the initial test. L. Conducting pilot plant studies or tests. M. Preparing Operation and Maintenance Manuals or conducting operator training. N. Preparing data and reports for assistance to Owner in preparation for hearings before regulatory agencies, courts, arbitration panels or any mediator, giving testimony, personally or by deposition, and preparations therefore before any regulatory agency, court, arbitration panel or mediator. O. Furnishing the services of a Resident Project Representative to act as Owner's on site, representative during the Construction Phase. The Resident Project Representative will act as directed by FNI in order to provide more extensive representation at the Project site during the Construction Phase, Through more extensive on site observations of the work in progress and field checks of materials and equipment by the Resident Project Representative and assistants, FNI shall endeavor to provide further protection for Owner against defects and deficiencies in the work, Furnishing the services of aResident Project Representative is subject to the provisions of Article I, D. If Owner provides personnel to support the activities of the Resident Project Representative who is FNI or FNI's agent or employee, the duties, responsibilities and limitations of authority of such personnel will be set forth in an Attachment attached to and made a part of this AGREEMENT before the services of such personnel are begun, It is understood and agreed that such personnel will work under the direction of and be responsible to the Resident Project Representative, Owner agrees that whenever FNI informs him in writing that any such personnel provided by the Owner are, in his opinion, incompetent, unfaithful or disorderly, such personnel shall be replaced, P. Furnishing Special Inspections required under chapter 17 of the International Building Code. These Special Inspections are often continuous, requiring an inspector dedicated to inspection of the individual work item, and they are in additional to General Representation and Resident Representation services noted elsewhere in the contract. These continuous inspection services can be provided by FNI as an Additional Service, Q. Preparation of Conformed or "As Bid" plans and specifications for use during the construction phase. These documents shall involve the incorporation of addenda items into the Contract Documents through modification of the electronic files and reprinting of the plans and specifications inclusive of the incorporated changes. R. Assisting Owner in preparing for, or appearing at litigation, mediation, arbitration, dispute review boards, or other legal and/or administrative proceedings in the defense or prosecution of claims disputes with Contractor(s). S. Performing investigations, studies and analyses of substitutions of equipment and/or materials or deviations from the drawings and specifications, T. Assisting Owner in the defense or prosecution of litigation in connection with or in addition to those services contemplated by this AGREEMENT, Such services, if any, shall be furnished by FNI on a fee basis negotiated by the respective parties outside of and in addition to this AGREEMENT. L,\Rr numm\OLCR\C�CnlhounCannlyWnster vA SC-6 Owner Rev. 12113 U. Providing environmental support services including the design and implementation of ecological baseline studies, environmental monitoring, impact assessment and analyses, permitting assistance, and other assistance required to address environmental issues. V. Performing investigations, studies, and analysis of work proposed by construction contractors to correct defective work. W. Design, contract modifications, studies or analysis required to comply with local, State, Federal or other regulatory agencies that become effective after the date of this Agreement. X. Services required to resolve bid protests or to rebid the projects for any reason. Y. Visits to the site in excess of the number of trips included in Article Ifor periodic site visits, coordination meetings, or contract completion activities. Z. Any services required as a result of default of the contractor(s) or the failure, for any reason, of the contractor(s) to complete the work within the contract time, AA. Providing services after the completion of the construction phase not specifically listed in Article I. EH, Providing basic or additional services on an accelerated time schedule. The scope of this service include cost for overtime wages of employees and consultants, inefficiencies In work sequence and plotting or reproduction costs directly attributable to an accelerated time schedule directed by the Owner. CC. Providing services made necessary because of unforeseen, concealed, or differing site conditions or due to the presence of hazardous substances in any form. DD. Providing services to review or evaluate construction contractor(s) claim(s), provided said claims are supported by causes not within the control of FM. BE, Providing value engineering studies or reviews of cost savings proposed by construction contractors after bids have been submitted. FF. Preparing statements for invoicing or other documentation for billing other than for the standard invoice for services attached to this professional services Agreement. GG. Provide follow-up professional services during Contractor's warranty period. HH. Provide Geotechnical investigations, studies and reports. ARTICLB III TIME OF COMPLETION: FNI agrees to complete the services in accordance with the schedule established in each Task Authorization, IF FNI's services are delayed or suspended in whole or in part by Owner, or if FNFs services are extended by the Contractor's actions or inactions for more than 90 days through no fault of FNI, FNI shall be entitled to equitable adjustment of rates and amounts of compensation. L'.%esourceskOLCR1C1CalhounCounryWnslcr FNI V M SC-7 Owuer}�r Rev. 12A3 ARTICLE IV RESPONSIBILITIES OF Owner: Owner shall perform the following in a timely manner so as not to delay the services of MI; A. Owner recognizes and expects that certain Change Orders may be required, Unless noted otherwise, the Owner shall budget a minimum of 5% for new construction and a minimum of 10% for construction that includes refurbishing existing structures. Further, Owner recognizes and expects that certain Change Orders may be required to be issued as the result in whole or part of imprecision, incompleteness, errors, omission, ambiguities, or inconsistencies in the Drawings, Specifications, and other design documentation furnished by Engineer or in the other professional services performed or furnished by Engineer under this Agreement ("Covered Change Orders"), Accordingly, Owner agrees to pay for Change Orders and otherwise to make no claim directly or indirectly against Engineer on the basis of professional negligence, breach of contract, or otherwise with respect to the. costs of approved Covered Change Orders unless the aggregate costs of all such approved Covered Change Orders exceed 2% for new construction and 4% for reconstruction, Any responsibility of Engineer for the costs of Covered Changed Orders in excess of such percentage will be determined on the basis of applicable contractual obligations and professional liability standards, For purposes of this paragraph, the cost of Covered Change Orders will not include: • any costs that Owner would have incurred if the Covered Change Order work had been included originally in the Contract Documents and without any other error or omission of Engineer related thereto, • Any costs that are due to unforeseen site conditions, or • Any costs that are due to changes made by the Owner. • Any costs that are due to the. Contractor Nothing in this provision creates a presumption that, or changes the professional liability standard for determining if, Engineer is liable for the cost of Covered Change Orders in excess of the percent of Construction Cost stated above or for any other Change Order, Wherever used in this document, the term Engineer includes Engineer's officers, directors, partners, employees, agents, and Engineers Consultants, B. Designate in writing a person to act as Owner's representative with respect to the services to be rendered under this AGREEMENT. Such person shall have contract authority to transmit instructions, receive information, interpret and define Owner's policies and decisions with respect to FNI's services for the Project. C, Provide all criteria and full information as to Owner's requirements for the Project, including design objectives and constraints, space, capacity and performance requirements, flexibility and expandability, and any budgetary limitations; and furnish copies of all design and construction standards which Owner will require to be included in the drawings and specifications. D, Assist FNI by placing at FNI's disposal all available information pertinent to the Project including previous reports and any other data relative to design or construction of the Project. E. Arrange for access to and make all provisions for FNI to enter upon public and private property as required for FNI to perform services under this AGREEMENT, F. Examine all studies, reports, sketches, drawings, specifications, proposals and other documents presented by FNI, obtain advice of an attorney, insurance counselor and other consultants as Owner deems appropriate for such examination and render in writing decisions pertaining thereto within a reasonable time so as not to delay the services of FNI. G. Furnish approvals and permits from all governmental authorities having jurisdiction over the Project and such approvals and consents from others as may be necessary for completion of the Project. L:\Resources\OLCn\C1CaIhDunCounty\Mxsler I VA V SC-8 Owner R.V. 12113 H, Owner shall make or arrange to have made all subsurface investigations, including but not limited to borings, test pits, soil resistivity surveys, and other subsurface explorations. Owner shall also make or arrange to have made the interpretations of data and reports resulting from such Investigations, All costs associated with such investigations shall be, paid by Owner. 1. Provide such accounting, independent cost estimating and insurance counseling services as may be required for the Project, such legal services as Owner may require or FNI may reasonably request with regard to legal issues pertaining to the Project including any that may be raised by Contractor(s), such auditing service as Owner may require to ascertain bow or for what purpose any Contractor has used the moneys paid under the construction contract, and such inspection services as Owner may require to ascertain that Contractor(s) are complying with any law, rule, regulation, ordinance, code or order applicable to their furnishing and performing the work. J. Owner shall determine, prior to receipt of construction bid, if FNI is to furnish Resident Project Representative service so the Bidders can be informed. K. If Owner designates a person to serve in the capacity of Resident Project Representative who is not FNI or FNI's agent or employee, the duties, responsibilities and limitations of authority of such Resident Project Representative(s) will be set forth in an Attachment attached to and made a part of this AGREEMENT before the Construction Phase of the Project begins. Said attachment shall also set forth appropriate modifications of the Construction Phase services as defined in Attachment SC, Article I, C, together with such adjustment of compensation as appropriate, L. Attend the pre bid conference, bid opening, preconstruction conferences, construction progress and other job related meetings and substantial completion inspections and final payment inspections. M. Give prompt written notice to FNI whenever Owner observes or otherwise becomes aware of any development that affects the scope or timing of FNI's services, or any defect or nonconformance of the work of any Contractor. N. Furnish, or direct FNI to provide, Additional Services as stipulated in Attachment SC, Article It of this AGREEMENT or other services as required. O. Bear all costs incident to compliance with the requirements of this Article IV. G:UResources\OLCRNMCalhounCounty4Noster FNI °!r"'r' SC-9 Owner Rev. 12113 ARTICLE V DESIGNATED REPRESENTATIVES: FM and Owner designate the following r presentativos: Owner's Designated Representative Namee_A[8 t) � �1 // CJ Address; to fi. / 2-- oF X - Phone: zl - F2-5r 3 2,e6 Fax: .3V-'? 9.3 - S 3 0 `3 E-mail ZI 61' i Owner's Accounting Representative Name: Addrs:0p7©� its IOY°T" Phone; r)' $3 r Fax; E-mail;,eirt�c FNI's Project Manager Name: Cris Weber, RE, 10431 Morado Circle, Suite 300 Austin, TX, 78759 Phone: 512-617-3156 Fax; 512-617-3101 E-mail: CrisMober@freese.com FNPs Accounting Representative Billy Metzger 10431 Morado Circle, Suite 300 Austin, TX, 78759 Phone: 512-617-3177 Fax: 512-617-3101 E-mail: Billy,Metzger@freese.com L1VResources\OLCR\C\CalhounCounty\Master --11 is s' SC-10 Owne�w ATTACHMENT CO COMPENSATION Unless otherwise required by Owner, compensation will he negotiated for each Task Authorization. L;4Resaurees\OLCR1 FN��,r"" CO-1 Owner A'ITACHMRNT - SCHEDULB "A" SCHEDULE A TASK AUTHORIZATION Cllent: Attm FNI Project No.: PhasolPasidDept. No.: Date: This authorization is in accordance with the executed on and expires on terms and conditions outlined In the Master Agreement Project Description: Description of Services: Deliverables: Compensation shall be as follows: Original Contract Amount $ Schedule shall be as follows: The above described services shall proceed upon return of this Task Authorization. Services will be billed as they are done. All other provisions, terms, and conditions of rho Agreement for services which are not expressly amended shell remain in full farce and effect. ❑ A contract modification will be submitted. ❑ This Task Authorization will serve as notion to proceed. FREESE AND NICHOLS, INC.: CLIENT: W Print or Type Name W or Type Name L.%ResaasesX0LCR% MI �A CO-1 Owner 10-25-07 TRRMS AND CONDITIONS OF AGREEMENT ATTACHMENTTC 1. DEFINITIONS: Tire term Owner as used herein refers to the Calhoun County , The term FNI as used herein refers to Freese and Nichols, Inc, Its employees and agents; also Its subcontractors and their employees and agents. As used herein, Services refers to the professional services performed by Freese and Nichols pursuant to the AGREEMENT. 2. CHANGES: Owner, without invalidating the AGREEMENT, may order changes within the general scope of the WORT{ required by the AGREEMENT by altering, adding to and/or deducting Rom the WORK to be performed, Ifany change under this clause causes en increase or decrease in FNI's cost of, or the timerequired for, the performance ofany part ofthe Services under the AGREEMENT, an equitable adjustment will he made by mutual agreement and the AGREEMENT modified In writing accordingly. 3. TERMXNATION; The obligation to provide services under this AGREEMENT maybe terminated by either party upon ten days' written notice. In the event of termination, FIE will be paid for all services rendered and reimbursable expenses incurred to the data oftermination and, in addition, all reimbursable expenses directly attributable to termination. A. CONSEQUENTIAL DAMAGES: In no event shut] FNI or its subcontractors be liable in contract, tort, strict liability, warranty, or otherwise for any special, indirect, incidental or consequential damages, such as loss ofproduct, loss ofuse ofthe equipment or system, loss of anticipated profits or revenue, non -operation or increased expense of operation or other equipment or systems. 5. INFORMATION FURNISHED BY OWNER: Owner will assistFM by placing atFNVs disposal ail available information pertinent to the Project including previous reports and any other data relative to design or construction of the Project, FNI shall have no liability for defects or negligence in the Services attributable to FNI's reliance upon or use of data, design criteria, drawings, specifications or other information furnished by Owner and Owner agrees to indemnify and hold FNI harmless from any and all claims andjudgments, and all losses, costs and expanses arising therefrom, FNI shall disclose to Owner, prior to use thereof, defects or omissions in the data, design criteria, drawings, specifications or other information furnished by Owner to FNI that FNI may reasonably discover In Its review and inspection thereof. 6, INSURANCE; FM shall provide to Owner certificates of insurance which shall contain the following minimum coverage (All limits in thousands): Commercial General Liability General Aggregate $2,000 Automobile Liability (Any Auto) CSL $1,000 Workers' Compensation Each Accident $500 Professional Liability $3,000 Annual Aggregate. 7. SUBCONTRACTS: If, for any reason, at any time during the progress of providing Services, Owner determines that any subcontractorfor FAR is incompetentor undesirable, Owner will mtifyITII accordingly and FAR shall take immediate steps for cancellation ofsuch subcontract, Subletting by subcontractors shall be subject to the same regulations. Nothing contained in the AGREEMENT shall create any contractual relation between any subcontractor and Owner. OWNERSHIP OF DOCUMENTS: All drawings, reports data and other projeetinformation developed in the execution of the Services provided under this AGREEMENT shall be the property of the Owner upon payment ofFNPs fees for services, FNI may retain copies for record purposes. Owner agrees such documents are not intended or represented to he suitable for reuse by Owner or others. Any reuse by Owner or by those who obtained said documents from Owner without written verification or adaptation by FNI will be at Owners sole risk and without liability or legal exposure to FNI, or to FNI's independent associates or consultants, and Ownershall indemnify and hold harmless FAR nndFNI's independent associates and consultants from all claims, damages, losses and expenses Including attorneys'frusarising out oforresulting therefrom, Any such verification or adaptation will audits FNI tofarther reasonable compensation. FNI may rouse all drawings, report data and other project Information in the execution of the Services provided under this AGREEMENT in FNI's other activities. Any reuse by FNI will be atFM's sole risk and withoutliability or legal exposure to Owner, and FM shall Indemnify, and hold harmless Owner from all claims, damages, fosses and expenses including atimmays' fees arising out oforresulting therefrom. Page lof2 , ) FAR V OWNER 9, POLLUTANTS AND HAZARDOUS WASTE, St It is understood and agreed thatFNI has noithercroattal norcontributial to the creation or existence of any hazardous, radioactive, toxic, irritant, pollutant, orotherwisa dangerous substance or condition at the site, if any, and its compensation hereunder is In noway commensurate with the potential risk of injury or loss that may be caused by exposures to such substances or conditions. The parties agree that in performing the Services required by this AGREEMENT, FNI does not take possession or control of the subject site, but acts as an invitee in performing the services, and is n❑t therefore responsiblefor the existence of any pollutant present on or migrating from the site. Further, FNI shall have no responsibility for any pollutant during cloan-up, transportation, storage or disposal activities, 10. OPIMON OF PROBABLE COSTS; FNI will furnish an opinion of probable project development cost based on present day cost, but does not guarantee the accuracy of such estimates, Opinions of probable cost, financial evaluations, feasibility studies, economic analyses of alternate solutions and utilitarian considerations ofolumations and maintenance costs prepared by FNI hereunder will be made on the basis of FNI's experience and qualifications and represent FNI's judgment as an experienced and qualified design professional. It is recognized, however, thatM does not have control over the cost of labor, material, equipment or services furnished by others or over market conditions or contractors' methods of determining their prices. IL CONSTRUCTION REPRESENTATION; Ifraqvined by the AGREEMENT, FNI will flaudsh Construction Representation according to the defined scope for these services. FNI will observe the progress and the quality of work to determine In general Ifthe work is proceeding in accordance with the ContractDocuments. In performingthese services, FM will endeavor to protect Owner against defeats and deficiencies in the work of Contractors; FNI will report any observed deficiencies to Owner, however, it is understood that FM does not guarantee the Contractor's performance, nor Is FM responsible for the supervision of the Contractor's operation and employees. FM shall not be responsible for the means, methods, techniques, sequences or procedures of construction selected by the Contractor, or the safety precautions and programs incident to the work of the Contractor, FM shall not be responsible for the acts or omissions of any person (except his awn employees or agent) at the Project site or otherwise performing any of the work of the Project. IfOwner designates a person to serve in the capacity of Resident Project Representative who is not a FNI's employee or FM's agent, the duties, responsibilities and limitations of authority of such Resident Project Represetrtative(s) will be set forth in writing' and made a part of this AGREEMENT before the Construction Phase of the Project begins. 12. PAYMENT: Progress payments may be requested by FM based on the amount of services completed. Payment for the services of FM shall be due and payable upon submission of a statementfar services to OWNER and in acceptance of the services as satisfactory by the OWNER. Statements£ar services shall not be submitted more frequently than monthly, Any applicable new taxes imposed upon services, expenses, and charges by any governmental body after the execution of this AGREEMENT will be added toFNI's compensation. If OWNER fails to make any payment due FM for,services and expenses within thirty (30) days after recelpt of FNI's statement forservlem therefore, the amounts due FNI will be increased at the rate ofone percent (1%) per month from said thirtieth (30th) day, and, In addition, FNI may, after giving seven (7) days' written notice to OWNER, suspend services under this AGREEMENT until FM has been paid in full, all amounts duo for services, expenses and charges, 13. ARBITRATION: No arbitration arising out of, or relating to, this AGREEMENT Involving one party to this AGREEMENT may Include the other party to this AGREEMENT without their approval, 14, SUCCESSORS AND ASSIGNMENTS; OWNER and FNI each are hereby bound and the partners, successors, executors, administrators and legal representatives of OWNER and FNI are hereby bound to the other party to this AGREEMENT and to the partners, successors, executors, administrators and legal representatives (and said assigns) of such other party, in respect of all covenants, agreements and obligations ofthis AGREEMENT. Neither OWNER nor FNI shall assign, sublet or transfer any rights under or interest in (including, but without limitation, moneys that may become duo or moneys that are due) this AGREEMENT withoutthe written consent of the other, except to the extent that any assignment, subletting or transfer is mandated by law or the effect of tlds limitation may be restricted by law. Ualessspeolticatlystatedtothe contrary in any written consentto an assignment, no assignmentwill release ordischarge the assignor from any duty or responsibility under this AGREEMENT. Nothingcontalned In this paragraph shall prevemFM from employing such independent associates and consultants as FM may deem appropriate to assist In the performance of services hereunder, 15, PURCHASE ORDERS: If a Purchase Order is used to aulhorizsFNPs Services, only tire terms, condttiouslinstructions typed on the face ofthePurchase Ordershallapply tothis AGREEMENT. Should there be any conflict between thoPurchase Order slid the terms of this AGREEMET, then this AGREEMENT shall prevail and shall be determinative of the conflict. Page 2of 2 FN1 -Vf't OWNER REQUEST BY OLIVIA/PORT ALTO VOLUNTEER FIRE DEPT. TO APPLY FOR M.G. AND LILLIE A. JOHNSON FOUNDATION GRANT, FOR NEW JAWS OF LIFE RESCUE TOOLS: Galen Johnson, Chief of the Olivia/Port Alto Volunteer Fire Dept., stated they are unable to get parts for the existing equipment and there would be no cost to the County to upgrade the equipment. Commissioner Lyssy made a motion to approve request by Olivia/Port Alto Volunteer Dept. to apply for M.G. and Lillie A. Johnson Foundation Grant, for new Jaws of Life rescue tools. Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. CALH®UN COUNTY COMMISSPNERPREaNcT 3 q 24627 State Hwy. 172 — Olivia, Pori Lavaca, Texas 77979 — Officer (361) 893 5346 — Fax (361) 893-5309 Eby fl Neil E. Fritsch, Commissioner, Pct. 3 Email: neil.fritsch@calhouncoix.org August 29, 2016 To: Honorable Judge Michael Pfeifer From: Neil Fritsch Re: Agenda Item Please place the following item on the Commissioner's Court Agenda for September 8, 2016: "Consider and Take Necessary Aetiott for Olivia/Port Alto volunteer Tire Dept. to apply for M.G. and Lillie A. Johnson Foundation Grant, fora new Jaws of Life Rescue Tools." Respectfully, cc: Roger Galvan Vern Lyssy Kenneth Finster Susan Riley L� Seadrift Area Volunteer Emergency Service$ Seadrift Volunteer Fire Department To. Calhoun Courtly Commissioners Court The Seadrift Volunteer Fire Department is respectfully asking the court to let us apply for the following Grant to equip a County -Owned Grass/Brush Truck: Grant from the M.G. & Lillie A. Johnson Foundation, Inc. in Victoria Texas for the amount of $25,500.00 Cost Breakdown: 200-gallon skid unit with pump and hose reel: $18,949.29 Radiolsirentiightbar installation: $1,391.00 Hardtop and doors: $5,161.32 Grand Total: $25,501.61 This equipment will go on a 1.25 ton 4x4 AM General: HMMVW (Humvee ) Asset#k 24-0463 that we purchased from the Texas Facilities Commission last year for $4,000 with our County Supplied Budget. There will be NO Grant match needed from the County Thank You for your continued Support Respectfully yours, Peter ^^DeForest Pam` Fire Chief Seadrift Volunteer Fire Department 361�746-0037 — Peter Cell peterd@tisd.net WASTE MANAGEMENT AGREEMENT #50007793343 FOR AN 8 YARD FEL DUMPSTER WITH 2X WEEKLY PICKUP FOR PRECINCT 4 ROAD & BRIDGE AND AUTHORIZE COMMISSIONER FINSTER TO SIGN AGREEMENT: PASS REQUEST BY COUNTY CLERK TO AMEND THE SUBDIVISION REGULATIONS TO REQUIRE THE CALHOUN COUNTY TAX APPRAISER TO CERTIFY ON THE PLAT THAT ALL TAXES ON THE PROPERTY HAVE BEEN PAID AND THAT THERE ARE NO DELINQUENT TAXES DUE ON THE PROPERTY AS A REQUIREMENT FOR FILING OF THE PLAT IN ACCORDANCE WITH PROPERTY CODE SECTION 12.002: No action taken at this time. Shannon Salyer, Assistant District Attorney, to prepare an amendment to the Subdivision Regulations. FARINA MENCHACA, DEPUTY - DESIREE GARZA, DEPUTY AMANDA RODRIGUEZ, DEPUTY FARLEIGH SUTTON, DEPUTY JOSIE SAMPSON, CHIEF DEPUTY ANNA M. GOODMAN COUNTY CLERK 211 S. ANN STREET STE 102, PORT LAVACA, TX 77979 (361)553-4411 August 30, 2016 Hon. Mike Pfeifer Calhoun County Judge Calhoun County Commissioners' Court RE: Agenda Item for Commissioners' Court — September 8tk 2016 We would like to place the following item on the agenda: Consider and take necessary action to amend the subdivision regulations to require the Calhoun County Tax Appraiser to certify on the plat that all taxes on the property have been paid and that there are no delinquent taxes due on the property as a requirement for filing of the plat in accordance with Property Code Section 12.002. I spoke with Jesse Hubbell about this and I explained that sometimes the legal description on the tax receipt of the property does not exactly match the legal description on the plat. It places a great deal of responsibility on our office to determine if these documents are referencing the same property. In addition I spoke with Anne Marie Odefey, Port Lavaca City Attorney, and asked if this could be added as a city ordinance. She felt this was a good idea as well but said it might take three months to implement if approved. Respectfully, Alma M Goodman Calhoun County Clerk U:\Agoodman\AGENDA ITEMS\Agenda Item.083016.P1at Tax Certificate.00090816uac Page 1 UNIVAR INVOICE #CC681344 IN THE AMOUNT OF $1421.20 FOR ALTOSID XR BRIQUETS DUE TO VENDOR ORDERING ERROR. BID WAS AWARDED ON A REVISED AWARD SHEET ON 01/28/16 TO CLARKE BY A DRAWING DUE TO THE PRICE BEING THE SAME FOR ALL VENDORS, THE ORDER WAS PLACED FROM THE ORIGINAL AWARD SHEET AWARDING UNIVAR WHERE THEY HAD MISTAKENLY ENTERED A BID USING THE PRICE FROM 2015, Commissioner Lyssy made a motion to approve Univar Invoice #CC681344 in the amount of 1421.20 for Altosid XR Briquets due to vendor ordering error. Bid was awarded on a revised award sheet on 01/28/16 to Clarke by a drawing due to the price being the same for all vendors. The order was placed from the original award sheet awarding Univar where they had mistakenly entered a bid using the price from 2015. Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. Vern Lyssy Calhoun County Commissioner, Precinct #2 5812 FM 1090 00.0� (361) 552-9656 Port Lavaca, TX 77979Fax (361) 553-6664 ' August 30, 2016 I i r. Honorable Michael Pfeifer Calhoun County Judge F 211 S. Ann Port Lavaca, TX 77979 RE: AGENDA ITEM Dear Judge Pfeifer: Please place the following item on the Commissioners' Court Agenda for September 8, 2016 • Consider and take action on paying Univar invoice #CC681344 in the amount of $1421.20 for Altosid XR Briquets due to vendor ordering error. Bid was awarded on a revised award sheet on 1/28/16 to Clarke by a drawing due to the price being the same for all vendors. The order was placed from the original award sheet awarding Univar where they had mistakenly entered a bid using the price from 2015. Sincerely, i Vern Lyssy VL/Ij i E I i i ENTER INTO THE MINUTES AN ORDER FROM THE DISTRICT JUDGES SETTING THE SALARIES OF THE COUNTY AUDITOR AND ASSISTANTS FOR FISCAL YEAR 2017, AND FOR THE PURPOSE OF APPROVING THE NUMBER OF ASSISTANTS FOR THE AUDITOR'S OFFICE FOR FISCAL YEAR 2017: Commissioner Galvan made a motion to enter into the Minutes an Order from the District Judges setting the salaries of the County Auditor and Assistants for Fiscal Year 2017 and for the purpose of approving the number of Assistants for the Auditor's Office for Fiscal Year 2017. Commissioner Lyssy seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. STATE OF TEXAS COUNTY OF CALHOUN IN THE DISTRICT COURT OF CALHOUN COUNTY, TEXAS WHEREAS, on August 26, 2016 at a public hearing held for the purpose of setting the salaries of the County Auditor and Assistants for fiscal year 2017, and for the purpose of approving the number of assistants for the Auditor's Office for fiscal year 2017; and WHEREAS, the following base salary amounts were approved for fiscal year 2017 at the close of the public hearing: County Auditor $ 68,891 First Assistant Auditor $ 52,862 Assistant Auditor $ 41,037 Assistant Auditor $ 41,037 Assistant Auditor $ 41,037 Assistant Auditor $ 41,037 FURTHER, any fiscal year 2017 salary increases and longevity approved by Commissioners Court for County Officials and Employees are approved for the County Auditor and Assistant Auditors in like percent and amount and upgrades or reclassifications of job grades and/or clusters approved by Commissioners Court for other County Employees are approved for such like and similar jobs for assistant auditors and the filling of vacant positions and those becoming vacant are approved at the rates and levels consistent with personnel policies and guidelines adopted by Commissioners Court for other County Employees. We, the undersigned, being a majority of the District Judges of Calhoun County, Texas do hereby ratify the approval action on August 26, 2016 by the District Judges at the close of the public hearing held for the purpose of setting salaries and approving the number of assistants for the County Auditor's Office for fiscal year 2017, y��uttrr rare uF rExa.S ��g f U ��.Z{ ✓i d f1JN PeCIF CALHOUN J arr, Judge, 2P Judicial District e'"E€{ uc €tv ya r � n � r rya r DATE?Mort 0/'A " A`Nhr6F.9 ) ti. f�i°'t/R}GTGLEc?�'OF '`;iGtlN�Yd' per Stephen Williams, Judge, 135' Judicial District FILED AT4:o80'CLOCKA• M Robert E AUG 2 9 2016 "Bobby" Bell, Judge, 267th Judicial District ANNA KABELA TEXAS YTR T1G CLERK,C�jFIQ000N ENTER INTO THE MINUTES ORDERS FROM THE DISTRICT JUDGES SETTING AND ALLOCATING THE SALARIES OF THE OFFICIAL COURT REPORTERS OF THE 24TH, 135TH, AND 267TH JUDICIAL DISTRICTS, AND SETTING AND ALLOCATING THE SALARIES OF THE OFFICIAL ALTERNATE COURT REPORTER OF THE 24TH, 135TH, AND 267TH JUDICIAL DISTRICTS, AND SETTING AND ALLOCATING THE SALARIES OF THE OFFICIAL ALTERNATE COURT REPORTER OF THE 247H, 135TH, 267TH, AND 377TH JUDICIAL DISTRICTS: Judge Pfeifer made a motion to enter into the Minutes Orders from the District Judges setting and allocating the salaries of the Official Court Reports of the 241h, 135th, and 267th Judicial Districts, and setting and allocating the salaries of the Official Alternate Court Reporter of the 24th, 1351h, and 267th Judicial Districts, and setting and allocating the salaries of the Official Alternate Court Reporter of the 24th, 135th, 2671h, and 377th Judicial Districts. Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. O R D E R On this the 26`h day of August, 2016, came on to be considered setting and allocating the salary of the Official Court Reporter of the 24th Judicial District for the calendar year 2017, and the salary is hereby set at 74,360.00 for the year 2017, and in addition, the Official Court Reporter shall receive any longevity compensation to which she is entitled and is hereby allocated to the counties comprising the Judicial District in proportion to the population of the Judicial District according to the 2010 Census as follows: COUNTY PERCENT AMOUNT Calhoun 13.62 10,128.00 DeWitt 12.81 9,526.00 Goliad 4.60 3,420.00 Jackson 8.97 6,670.00 - : Refugio 4.7 ___ _. __ -8,495.00 Victoria 55.30 41,360 00 74,360.00 This action was taken at a public hearing held in accordance with the provisions of Section 152.905 of the Local Government Code. SIGNED THIS the c�?> 6 � of August, 2016. rar<<F TEXA8 W. Marr, Judge C -UN P ( 7( CALHOLJN p 6 ! 1 4th Judicial District Court EFTHE� ,.+cM �� AND cc�aRr.0c +r T CG C' TS U;tiF N'—r41vYCJ . EA > 2�op. •.., f.J , r cat-'N M'RM 1 anus a�o�or x �' FILED CAT ._. -.3 i _u..— A� ` ; ;, AT :(20'CL0CKgM N Ao-FaE, �}t 5?K t:.T C.LcrK ('r /,iM CCI NIT C7,�rRA1 AUG 3 1 2016 ,,v , d C ANNA KABELA DISTRI9TCLERK,QLHUNCOUNTYTE%AS O R D E R On this the 26th day of August, 2016, came on to be considered setting and allocating the salary of the Official Court Reporter of the 135th Judicial District for the calendar year 2017, and the salary is hereby set at 74,360.00 for the year 2017, and in addition, the Official Court Reporter shall receive any longevity compensation to which she is entitled and is hereby allocated to the counties comprising the Judicial District in proportion to the population of the Judicial District according to the 2010 Census as follows: COUNTY PERCENT AMOUNT Calhoun 13.62 10,128.00 DeWitt 12.81 9,526.00 Goliad 4.60 3,420.00 _. Jackson _.&97 _ 6,670.00 Refugio 4.70 3,495.00 Victoria 55.30 41,360.00 74,360.00 This action was taken at a public hearing held in accordance with the provisions of Section 152.905 of the Local Government Code. SIGNED THIS the Z41 of August, 2016. STATE OF TEXAu GWNTY4r ALHO N ti� r F Cp r tephen Williams, Judge ,a> C tP ILI Ze06EA 1 rUE AND CORRE&Y CT, , , �.,135th Judicial District Court or tt t alG un w k e CUSTOr1Y., FILED p Jiin�D i 4{rt'kht}F{¢f`,>6 AL C§F ECE, -�� ATU-,L,0CL0CKA,�.M p qli m f !; acr uERXOF HOuacc i ins Iij`` ,;" AUG 31 2016 ANNAKABELA BIS TCLERK,C�LHQU�000NTY ORDER On this the 26`h day of August, 2016, came on to be considered setting and allocating the salary of the Official Court Reporter of the 267`h Judicial District for the calendar year 2017, and the salary is hereby set at 74,360.00 for the year 2017, and in addition, the Official Court Reporter shall receive any longevity compensation to which she is entitled and is hereby allocated to the counties comprising the Judicial District in proportion to the population of the Judicial District according to the 2010 Census as follows: COUNTY PERCENT AMOUNT Calhoun 13.62 10,128.00 DeWitt 12.81 9,526.00 Goliad 4.60 3,420.00 Jackson 8.97 6,670.00 Refugio 4.70 3,495.00 Victoria 55.30 41,360.00 74,360.00 This action was taken at a public hearing held in accordance with the provisions of Section 152.905 of the Local Government Code. SIGNED THIS the Z (oIt of August, 2016. ,TFO XA rG�y�Gq�af r 4eN OFC:ALHOUN GERT'HED 10BEATRUE AND CORRECT CuPY? HE OP61NAL EN ANY USTcDIr � � �tob�r�E: Bell Judge �.U' DFR'V`HAN AN SLA OF nFr'G' f 1�-' 1 3 a �l 267Y,16dicial District Court S Kd TGL�F„6 t'F ,u _�561iM1?ft,�"dT'?s i AY._ FILED AT IV(? O'CLOCKA-M AUG 3 1 2016 ANNA KABELA DISTRI5 wCCALHOCOUNT�D ORDER On this the 2e day of August, 2016, came on to be considered setting and allocating the salary of the Official Alternate Court Reporter of the 24`h, 135tn 267" and 377th Judicial District for the calendar year 2017, and the salary is hereby set at 74,360.00 for the year 2017, and in addition, the Official Alternate Court Reporter shall receive any longevity compensation to which she is entitled and is hereby allocated to the counties comprising the Judicial District in proportion to the population of the Judicial District according to the 2010 Census as follows: COUNTY PERCENT AMOUNT Calhoun 13.62 10,128.00 DeWitt 12.81 9,526.00 Goliad 4.60 3,420.00 Jackson . - 8.97. _ 6,670.00 Refugio 4.70 3,495.00 Victoria 55.30 41360.00 74,360.00 This action was taken at a public hearing held in accordanpf,-w'�,to-t.� Section 152,905 of the Local Government Code. COUNTY OF (�ERT iRPDTO OF N E OPi r SIGNED THIS the of August, 2016. F c� Cry e�z /Pt a W. Marr, Judge r 4tn Judicial District Court Eli E.-Garza, J 377tn Judi ' 1 District Court IF.'Stephen Williams, Judge 135th Judicial District Court ytiM0 dp' ovlwDitg of 4 , V1 UP ANle, 6RPEZIT Oi,,Y-(' �ra��tsrce�r: tfj. 'N65£A .OFJOy�fp .. �K OF CA°r B A ftvT''( YXAS FILED _ AT u:(z0'CLOCKA. M Robert E. Bell, Judge 267`'Judicial District Court AUG 31 2016 ANNA KABELA BTCKC HON00T TEXAS -B ACCEPT REPORTS OF THE FOLLOWING COUNTY OFFICES: PASS ACCEPT DONATIONS TO CALHOUN COUNTY: N/A DECLARE CERTAIN ITEMS OF PROPERTY IN THE OFFICE OF THE COUNTY CLERK AS SURPLUS/SALVAGE AND REMOVE FROM INVENTORY (SEE LISTS): Commissioner Lyssy made a motion to declare certain items of property in the office of the County Clerk as surplus/salvage and remove from inventory (see lists). Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy Fritsch, Finster and Judge Pfeifer all voted in favor. Calhoun County, Texas DECLARATION REQUEST FORM Sb.r pru��S�.f v�tg.c, Department Name: Calhoun County Clerk Requested By. Anna M Goodman Commissioners' Court. 0910812016 Inventory Number Description Serial No. Reason for Waste/Disposal N/A 7 Metal Chairs N/A Consignment Auction C:\Users\Sriley\Appdata\Local\Microsoft\Windows\Temporary Internet Files\Content0utlook\RiSNQBGY\Waste Declaration Form 090816.Doc Page 1 DECLARE CERTAIN ITEMS OF COUNTY PROPERTY IN THE JUVENILE PROBATION DEPARTMENT AS WASTE AND AUTHORIZE DISPOSAL OF SAME (SEE LISTS): Commissioner Lyssy made a motion to declare certain items of County property in the Juvenile Probation Department as waste and authorize disposal of same (see lists). Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. Luis Leija Chief Juvenile Probation Officer To: Mike Pfeifer Calhoun County Judge From: Luis Leija CALHOUN COUNTY COURTHOUSE ANNEX 201 West Austin Port Lavaca, Texas 77979 Telephone (361) 553-4670 Fax (361) 553-4690 Chief Juvenile Probation Officer Re: Commissioner's Court Agenda Item Please place the following item on the Commissioner's Court Agenda -Consider and take necessary action to declare all items on the attached list as waste and authorize the destruction of said items. Calhoun County, Texas WASTE DECLARATION REQUEST FORM Department Name: Juvenile Probation Requested By: Luis Leija Inventory Number Description Serial No. Reason for Waste Declaration 15 Polo style shirts Shirts are worn out and have the county seal and department name on them. 12 Button up style shirts Shirts are worn out and have the county seal and department name on them. Dell Poweredges 1400SC Computer Server Outdated and no longer usable 972-0048 DPS Multimedia 300 MflZ Notebook Outdated and no longer usable 972-0064 Dell 935 Windows Server Outdated and no longer usable 972-0047 Computer Upgrade Outdated and no longer usable DECLARE CERTAIN ITEMS OF COUNTY PROPERTY IN THE JUVENILE PROBATION DEPARTMENT AS SURPLUS/SALVAGE AND REMOVE FROM INVENTORY (SEE LISTS): Commissioner Lyssy made a motion to declare certain items of County property in the Juvenile Probation Department as surplus/salvage and remove from Inventory (see lists). Commissioner Fritsch seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. Luis Leija Chief Juvenile Probation Officer To: Mike Pfeifer Calhoun County Judge From: Luis Leija CALHOUN COUNTY ..*;. t COURTHOUSEANNEX 201 West Austin Port Lavaca, Texas 77979 Telephone (361) 553-4670 Fax (361)553-4690 Chief Juvenile Probation Officer Re: Commissioner's Court Agenda Item Please place the following item on the Commissioner's Court Agenda -Consider and take necessary action to declare all items on the attached list as surplus salvage. Calhoun County, Texas SURPLUS/SALVAGE DECLARATION REQUEST FORM Department Name: Juvenile Probation Requested By: Luis Leija Inventory Reason for Surplus/Salvage Number Description Serial No. Declaration 454-0068 Office Chair No longer functional 972-0048 DPS Multimedia Notebook No longer functional 972-0025 Sanyo TRC 5400 Tape Recorder No longer functional Office Chair No longer functional Office Chair No longer functional Office Chair No longer functional Office Chair No longer functional DECLARE CERTAIN ITEMS OF COUNTY PROPERTY IN THE OFFICE OF TEXAS HIGHWAY PATROL AS SURPLUS/SALVAGE AND REMOVE FROM INVENTORY (SEE LIST): PASS Calhoun County, Texas SURPLUS/SALVAGE DECLARATION REQUEST FORM Department Name: Texas Highway Patrol Requested By: Rita G. Dornak 8-9-16 Inventory Reason for Surplus/Salvage Number Descri tion Serial No. Declaration None 52" x 30" Parficka Wood 1) sk - Nopo ObRoleta dask that is tGo small. 7 and a County workstation necessmy o complete job duties tor the UounTy— and Highway Patrol Troopers. None Particle Wood Printer Stand None Not Needed MATTER OF DECLARING CERTAIN ITEMS OF COUNTY PROPERTY AS SURPLUS/SALVAGE: N/A MATTER OF TRANSFERRING CERTAIN ITEMS OF COUNTY PROPERTY FROM ONE COUNTY DEPARTMENT TO ANOTHER COUNTY DEPARTMENT (SEE LIST): N/A APPROVAL OF PAYROLL: N/A ACTION ON ANY NECESSARY BUDGET ADJUSTMENTS: Commissioner Fritsch made a motion to approve any necessary Budget Adjustments. Commissioner Lyssy seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. O n Z Z LL N z r _z gW =_a =W ❑z z =_0 =1u =_a =0 =W V 5z Ew -m i z f- 5z 51Y 0. 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B/ Bco 0 \k )o Ez §� §z (§ )� §« (0 k M■ ■g■§e&2; ^ c m— B§aa_aj 2 § §25)< ■ / k § ƒ ƒ :k :0 :z :z :§ :L �§ :O :LO :Lf) :O Z ?f iz ;cWc G a i LLl iG W Z J U) W W J U a Q Z U)W v CW7z C 0 Q ca m -6o on K O I U) W_ W J O a Q = U)W W F w U z 0 K � 0] xc o o z 2 z K O O �I 0 0 0 0 0 0 � N 7 ik U 2 z U Z W W � a w W ❑ Q m Q ❑ 0 w 0 rn rn a P i O O 0 Z Z LL tZ J L6 LU LL Z Z LL 99 W LL H ul ul I- F y a LU E Z e M Z m Y] Q Lld bT � Ef3 EA N N = v m fA � EA (A W r o 0 0 0 0 0 0 fR � pp N E9 mF» W v � Z 0 0 0 0 0 0 0 0 0 � v3»v?tn vies v3 e� to OC p 0 0 0 0 0 0 0 0 0 W yW fA fR fA fA <A fA FA fA fA Z H W (q z Z d 6 �zzzzzzzzzz x to 0000000000 p 0000000000 N Z z z Z z z z z z z w O o Z rn rn rn rn rn w w rn rn rn LL z rn rn rn rn rn w w w rn rn rn rn rn rn rn rn rn rn rn rn � W a O G 7 U) m w F } K U) a O O _ ¢�N U C C " ¢ W a w O M CL :D w ¢ w w W N N z VJ -¢ z¢ n n X 2i:�Ei z K w0 wF wW w DL of O O a F- KF- z IX Q' 2 w w w Z w J J J � 1- F OOO D F--DD Z v 1n � O O N O W f0 f0 a W N 7 W N J F¢- F U z s w w IL W K 00 z z 0 O w 6 N a T G o / � )$ 7 z §o % 2 §z El- )U1 !E )� )2 )§ � Iq k W Pc ; § B § z ■ .w a § .� § § 2 § ; k § § LU 2 t K Lu § a % )% § 2 § ■§8%w §■§ e � - �§�-- \ ) k § § § 2 /|R APPROVAL OF BILLS: Commissioner Fritsch made a motion to approve County bills in the Amount of $1,211,366.35 (no transfers between funds). Commissioner Lyssy seconded the motion. Commissioners Galvan, Lyssy, Fritsch, Finster and Judge Pfeifer all voted in favor. September 8, 2016 2016 APPROVAL LIST - 2016 BUDGET 29 COURT MEETING OF 09/08/16 BALANCE BROUGHT FORWARD FROM APPROVAL LIST REPORT PAGE 28 $ 482,123.46 FICA P/R $ 43,659.38 MEDICARE P/R $ 10,210.74 FWH P/R $ 36,817.98 AFLAC P/R $ 4,325.27 PRINCIPAL FINANCIAL GROUP P/R $ 2,494.67 ANNOUNCEMENTS PLUS TOO AGAIN CCJPD: BUSINESS CARDS/NAME PLATES A/P $ 217.00 AT&T MOBILITY A/P $ 474.95 CARDMEMBER SERVICE - SHERIFFBAIL A/P $ 4,998.87 CENTERPOINT ENERGY A/P $ 74.51 CITY OF POINT COMFORT A/P $ 84.67 CITY OF PORT LAVACA A/P $ 609.63 CITY OF SEADRIFT A/P $ 85.69 CPL RETAIL ENERGY A/P $ 67.68 DAKOTA SMITH JAIL: OUT OF COUNTY TRAVEL AIP $ 93.16 FRONTIER COMMUNICATIONS A/P $ 1,080.93 GBRA A/P $ 215.52 HECTOR ALVARADO CAP PROJ OCEAN DR: HAUL GRAVEL A/P $ 20,055.00 JACKSON ELECTRIC COOP, INC. A/P $ 608.82 JOHNNY AMADOR JR. JAIL: OUT OF COUNTY TRAVEL A/P $ 67.79 KELLEY AS14LEY LIBRARY: MILES EXPENSE A/P $ 152.28 LA WARD TELEPHONE EXC. INC. A/P $ 325.11 MCI COMM SERVICE A/P $ 30.11 MCI MEGA PREFERRED A/P $ 489.97 MICHELLE VELASQUEZ JAIL: OUT OF COUNTY TRAVEL A/P $ 74.75 NUECES POWER EQUIPMENT CAP PROS OCEAN DR: EQUIPMENT RENTAL A/P $ 2,500.00 PORT O'CONNER IMPROVEMENT A/P $ 796.58 REPUBLIC SERVICES #847 A/P $ 850.00 SHIRLEY & SON CONSTRUCTION RB 1: WORK ON PIERS/ BULKHEAD A/P $ 558,420.15 SPRINT AN $ 36.19 TEXAS ASSOC. OF COUNTIES RISK MGMT. POOL (WORKERS' COMP) CALCO: 4TH QTR PREM A/P $ 31,312.00 UNIVAR R132: ALTOSID XR BRIQ 220/CS A/P $ 1,421.20 VERIZON WIRELESS A/P $ 165.23 VICTORIA ELECTRIC CO-OP A/P $ 3,398.38 VICTORIA FARM EQUIPMENT RB3: CABLES & MISC PARTS FOR NEW TRACTOR A/P $ 1,107.71 VICTORIA OLIVER CO. RB3: A/C FILTER & MISC PARTS FOR KOBOTA TRACTOR A/P $ 159.17 WALLIS THOMAS D RB3: GARBAGE PICKUP-SEPT A/P $ 150.00 WASTE MANAGEMENT A/P $ 1,459.18 WEX BANK A/P $ 152.62 TOTAL VENDOR DISBURSEMENTS: $ 1,211,366.35 TOTAL TRANSFERS BETWEEN FUNDS: $ - TOTAL AMOUNT FOR APPROVAL: $ 1,211,366.35 I �o v U 2� Fi F U UFzi UV4 ¢¢ V w' d U� Q U V V '� HQ Hd Qtx W oz � �oz G� W A P.' �qW dr7 d� O ZO �O w w W V W V W O �Na N �N N N O Ca O �p zw zU zF U� U rVr r, %. ctii zgx zo zo zo zo{a] OOO o o Oo OO Oo �1 m o� o.o W � [z�� WzWm rwiiHa �F� NF� �m [W+o3 [W.N� W Na �1NU zoCFW4i H 5 0 p Q O O O O o 0 0 0 „o o a a o3 03 03 a� u �a a a �D �� a ¢o �o �o > a a a 0 �z 07x a 3U 3u 3U 3U BU m ti a b b a a a a pa, wa fVL vwi a ti w0 w0 w0 a a a �vai N W� WV H a ww wW w w w � x x x a x x x x 0 U o 0 W W W W W W W W W W W W cC rL c4 rG a cG cG cG c4 C4 r� rx W W W W W W W W W W W W z z z z z z z z z z z z o 0 0 0 0 0 0 0 0 0 0 0 0 a V,� Urxii �Z V U- Ux V UO U .0 � C7 U H VdNQN QNU Q y O N r N a O N O o�y O] N r M Qi N N N r O r H h Q 7+ o z O W 2 O z O z N O O W Q O N F-i F W fr W oOo0 OoO fA Oo0 WVzX'j] NNMo yz{NX�NNo0 VWl .No 0 OWXUO OXti{w; 0r�w�U to , V b F P N M O U O O O O O N O O O O O W � Q z O o v Vy 'J W a Ey a WW WW cq z C FX F F O ZR 0 ° g a Et! 30 �0 3o w B ¢o�¢o� �o� w� 3UC 0a >N W 30 3UC 0� ro O N N < O O O O O O O O may+ a M O� d' V O O �O Vl V1 :7 Y1 V1 V1 �O �O V1 V1 V1 b b �D ,O l� ro o N w a a > z O O U H o o a V � U n o q H � W W W W W W H z z z z W z b U ca FF] lk lk iG iG F F+ � O lk O H O �k F Yk � o U U U O U U V o U a O a O U V p w V ryN NN x q �73O �8O m o0 w 00 00 mo �o oa m O O oo O N z Qom' R��jjxa Wq/� a a N f-I H H b R O EW 4 W O a..,m O W W NW O O O M C' icy a �Vj Q %+ V1 V1 h V1 V1 V1 V1 h b �O �O Fl O � � o 0 0 � o cd7 Cal (a7 cah z(j Cal CQ7 zU a5'+aj aj O O .w 0 > u4i " w7 0 U7 via u U� m w ro O U O v� v� O v� v� O v� v� vl vl O O O O O O O N a O O rO o o O r F a q F w ooooff o0 o0 oooff o0 off mm m�mmm� & � m m m mmw �a w n V ca it it ik R h CG F U ti O w V a C dti 6 Q ¢V'� d Qrn V q V 0 � F� m z ��a U 0, Q A d Fp, z2 �w z •G-1 .°n U W o 0 ow ow w z�i �U W ro0 oF, d U rn W w Co '7 W N Fn' aU A zH zo � aw �o C) �00 dNW xa c7O C7 C7 C7m c7o prn UwQ OV C7 ,Qj C7WF OMM dFy C]px, Ll� W N C7o qv Q°' q-'[ Glo Cl Wa 900 W 9 V 7 Lq F 0.l v`�i m v`Vi W m rQ V M W N C7 W m Q fA r�' P7 U U CO Q c7 �n 0O i w m rn = p n z W W w Q M N O V1 ti V] O O 12 (7 q 0 a a Q OU F OU F UO W F¢ F ��GG WW W Q z WW WOW WW U O W W 00 �O W > w d 6 c7 m Ua ro V 0.'aU iU v� 9 [1 N1 � V1 Y1 V1 V' V1 vl V1 V1 V1 V1 Vl � b O b V1 �O V W WW p, ww W ,7 0 O 0 O U 0 O 0 0 C7 0 0 F F N W W W W W W W W W W W W p ZO w c7z p� c7 ddi c7d c7z c76 c7 c7ai C7,�dz, c7z c7ai c7¢ cu �0 ww d d ww� d ro� ro� M2 ndwi ro d d u0 q � x F z can � O V N m O p Q F N ¢ ? 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