Loading...
HomeMy WebLinkAboutANDERSON AND WHITNEY PC - CONTRACT - BID - 7072 AUDIT SERVICES MPOPROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this day of 1VWeMks' , 2009, by and between THE NORTH FRONT RANGE TRANSPORTATION AND AIR QUALITY PLANNING COUNCIL (the "MPO") and ANDERSON & WHITNEY, P.C. ("Professional"). In consideration of the mutual covenants and obligations herein expressed, it is agreed by and between the parties hereto as follows: 1. Scope of Services. The scope of services to be performed pursuant to this Agreement shall be performed in accordance with the Work Schedule stated on each Work Order, a sample of which is attached hereto as Exhibit A and incorporated herein by this reference. 2. Time. The services to be performed pursuant to this Agreement shall be initiated as specified on each Work Order. Time is of the essence. Any extensions of any time limit must be agreed upon in writing by the parties hereto. 3. Term. This Agreement shall commence on December 1, 20Q9, and shall continue in full force and effect until Mao 31, 2010), unless terminated sooner as herein provided. In addition, at the option of the MPO, the Agreement may be extended for additional one year periods not to exceed four (4) additional one year periods with fees and costs not to exceed those set forth in Exhibit S, incorporated herein by this reference. Written notice of renewal shall be provided to Professional and mailed no later than ninety (90) days prior to contract end. 4. Default. Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party should fail or refuse to perform according to the terms of this agreement, such party may be declared in default, and this Agreement may be terminated. 5. Early Termination by MPO. Notwithstanding the time periods contained herein, the MPO may terminate this Agreement at any time for the MPO's convenience or because of the failure of Professional to fulfill the contract obligations. The MPO shall terminate by providing at least fifteen (15) days prior written notice of termination by delivering to Professional a notice of termination specifying the nature, extent, and effective date of the termination. Upon receipt of the notice, Professional shall immediately discontinue all services affected (unless the notice directs otherwise) and deliver to the MPO all data, drawings, specifications, reports, estimates, summaries, and other information and materials accumulated in performing this contract, whether completed or in process. If the termination is for convenience, the MPO shall make an equitable adjustment in the contract price but shall allow no anticipated profit on unperformed services. If the termination is for failure of Professional to fulfill the contract obligations, the MPO may complete the work and Professional shall be liable for any additional cost incurred by the MPO. If, after termination for failure to fulfill contract obligations, it is determined that Professional was not in default, the rights and 7 designed to provide reasonable, but not absolute, assurance and because a detailed examination of all transactions will not be performed, there is an understanding that there is a risk that material misstatements may exist and not be detected. However, the Professional will inform the MPO of any material errors and any fraudulent financial reporting or misappropriation of assets that comes to their attention, unless clearly inconsequential. Any such matters will be included in the reports required for a single audit. As required by OMB Circular A-133, tests of controls will be performed to evaluate the effectiveness of the design and operation of controls that are considered relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, the tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in the report on internal control issued pursuant to Government Audit Standards and OMB Circular A-133. The audit is not designed to provide assurance on internal control or to identify reportable conditions. However, the Professional will inform the governing body or audit committee of any matters involving internal control and its operation that are considered to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Professional will also inform the MPO of any non - reportable conditions or other matters involving internal control, if any, as required by OMB Circular A-133. The audit will be conducted in accordance with the standard referred to above. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, the Professional will perform tests of the MPO's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. flowever, the objective of these procedures will not be to provide an opinion on overall compliance and no such opinion will be expressed in the report on compliance. OMB Circular A-133 requires that the audit be planned and performed to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. The procedures will consist of the applicable procedures described in OMB Circular A-133 Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the MPO's major program. The purpose of the procedures will be to express an opinion on the MPO's compliance with requirements applicable to major programs in the report on compliance issued pursuant to OMB Circular A-133. Management Responsibilities: The MPO management will provide the basic information required for the audit and are responsible for the accuracy and completeness of that information. The Professional will advise the MPO about appropriate accounting principles and their application and will assist in the preparation of the MPO's basic financial statements, including the schedule of expenditures of federal awards, but the responsibility for the basic financial statements remains with the MPO. This responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting and compliance, and selection and application of accounting principles, and the safeguarding of assets. Management is responsible for adjusting the financial statements to correct material misstatements and for confirming to the auditor in the management representation letter that the effects of any uncorrected misstatements aggregated by the auditor during the engagement and pertain to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Additionally, as required by OMB Circular A-133, it is management's responsibility to follow up and take corrective action on reported audit findings and to prepare a summary schedule of prior audit findings and a corrective action plan. Management is responsible for establishing and maintaining internal control and for compliance with the provisions of contract, agreements, and grants. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related cost of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that federal award programs are managed in compliance with applicable laws and regulations and the provisions of contracts and grant agreements. 17 Specific Audit Approach Following is a proposed work plan, including audit methodology and the various sources of information needed: ACTIVITY TIMING Entrance conference; audit planning December Interim fieldwork to primarily review and evaluate the internal control structure, and perform tests of controls with the intent of being able to rely on those controls. Mailing of bank account confirmations and revenue confirmations. January Final fieldwork to audit each of the fluids of the MPO as well as the general areas of cash and investments, accounts payable, receivables, and operations. Information needed will include working trial balances and budget comparisons for each fund as well as copies of selected account analyses prepared by the MPOs finance staff. Audit work includes comparison of activity to prior year as well as tracing large transactions to supporting documentation. Unusual transactions or activity new to the MPO will be discussed with management and the contract, agreement, etc., reviewed for proper accounting. March Review of Board minutes for indication of grants, Contracts, or agreements not noted in the audit. Observation of records and inquiry of management of any commitments, contingencies, and subsequent events. Written communication with your Attorney for information on litigation, claims, and unasserted claims, if necessary. March Review the first draft of the financial statements and footnotes. Conduct exit conference with audit committee. April Make final presentation of report and management letter to the MPO Council. May/June Following is additional requested information on the details of our audit approach: a. Our approach to understanding your major segments is to first obtain an understanding of the accounting system and internal controls. This may include review of MPO procedures or accounting manuals, interviews with key personnel, and walk-throughs of key transactions cycles. Audit test work over cash typically includes confirmation of balances and tests of bank reconciliations. Receivables are tested through written confirmation as well as review of subsequent receipts and grant billings. Fixed asset depreciation schedules are reviewed, and additions tested. Accounts payable are audited though tests of subsequent disbursements and review of payroll, payroll tax and accrued vacation accruals. Deferred revenue is considered for any grant receipts received which has not been earned. Grant revenue is tested through review of reimbursement requests and written confirmation. Program revenues are compared to prior periods. Expenditures are tested through disbursement testing and analytical review. b. A detailed time budget by staff level and proposed segment is as follows: Shareholder Manager In -Charge Planning 1 6 4 Client Conferences 3 3 2 Risk Assessment Procedures -- 6 14 Audit test work 1 15 36 Research and Supervision 1 1 -- Work paper Review 2 4 -- Review Financial Statements and MD&A 2 4 4 Management l etter Total 11 40 60 19 c. Audit sampling is anticipated to be used in the audit, particularly in transaction testing over payroll and purchasing/disbursements. We do not rely on sampling exclusively, as we consider it important to test large or unusual transactions or balances on a 100% basis, not a sample basis. Our firm's approach to sampling is usually that of "judgmental" sampling as opposed to "statistical'' sampling. One area that absolutely requires additional audit samples is the Single Audit procedures over federal programs. Adequate samples must be selected in the major program for the auditor to- report on internal controls and give an opinion on compliance with laws and regulations. We use sample sizes of 25-30 expenditures per major program, as long as controls are reasonable and there have not been significant exceptions in previous years. We would propose to select these transactions systematically from the population of all expenditures subject to full or partial federal reimbursement. Special care would be taken to ensure that a wide range of transactions was selected including payroll, benefits, capital outlay, payments to vendors, and payments to program participants, if any. d. Our firm has made a commitment to be up-to-date with the use of "paperless" audit software in the engagements. We facilitate this with notebook computers with several software applications on -site during the audit. We use these in conjunction with the client's system to the fullest extent possible to save our time and your time. For example, some clients prefer to give us account analyses on disk or by e-mail, and we can efficiently add our audit procedures. Our overall goal in "paperless" audit software is to work with clients to take advantage of the technology available from their systems and ours to produce a more efficient process. e. Analytical procedures are first used in the planning of an engagement whereby unaudited financial information is reviewed to identify significant changes for further review. The most extensive analytical procedure planned for the audit is the comparison of current year account balances to the prior year account balances. Any significant variation among these factors is reviewed with MPO staff and further evidence is examined to document the propriety of the change. The other primary source of analytical procedures involves the VanGo program. The number of riders and routes is analyzed in comparison to fare revenue. VanGo revenue is also compared to VanGo expense. f. The review and testing of internal controls is of added importance in the MPO audit. Internal control review is also very important because of the MPO's growing activities and potential growth. The first consideration is of the MPO's internal control environment. This includes analysis of such factors as management's philosophy and operating style, organizational structure, methods of assigning authority, and personnel policies and practices. The control environment reflects the overall attitude, awareness, and actions of the MPO Council and management concerning the importance of internal controls. The second phase of the internal control structure is the accounting system. This includes analysis of how transactions are initiated, processed and ultimately recorded in the general ledger. All significant cycles of transactions are reviewed through interviews with employees, inspection of documents used, and walk-throughs of transactions through the entire system. The results of this review are documented through checklists, flowcharts, and narratives. A final phase of control evaluation is the identification of the policies and procedures management has established to provide reasonable assurance that financial records are accurate and assets are safeguarded. The existence and effectiveness of controls is a very important factor in designing audit tests to uncover material financial misstatements. g. There are many contracts, laws and regulations for which the MPO's auditor is responsible for testing compliance with. Most of these are financial in nature. The auditor does not have detection responsibility for general laws and regulations, such as civil rights statutes or environmental regulations. Our approach to this testing is to review the primary contracts, laws, and regulations applicable to the MPO, and determine which could directly affect the financial statements if noncompliance occurred. We then test these provisions in proportion to the likelihood and impact of noncompliance. The major potential source for laws affecting intergovernmental entities is the Colorado Revised Statutes. Remaining sources of laws and regulations include the MPOs policies, (e.g. purchasing and investment regulations), the provisions of federal grants, and others, such as arbitrage and continuing disclosure. h. This section will discuss the approach to be taken in drawing audit samples for tests of compliance. Control/compliance tests will he primarily performed in the areas of purchasing, disbursements and payroll. Purchasing transactions will be selected from the range of check numbers issued during the year. Those checks selected will be tested in detail for purchase approval, receipt of goods, approval of invoice, purchasing policies, and compliance with contracts, if applicable. Payroll transactions will be selected from the range of payroll checks or direct deposit advices issued during the year. These will be tested for accuracy, pay rates, contract or timesheet, approval, payroll deductions, and legal requirements (W-4, 1-9, etc.). Some types of laws, regulations, and contracts can be tested without selecting additional audit samples. For example, the purchasing policies of the MPO will be tested in conjunction with the test of controls over expenditures. Compliance with grants and 21 contracts can best be determined in the audit by reviewing these documents to determine if any provisions would apply to transactions of the period. Identification of Anticipated Potential Audit Problems We are not aware of any anticipated audit problems regarding the 2009 audit of the MPO. Of course, there are always unexpected circumstances, different kinds of transactions, and changes in accounting standards that come up during the performance of an audit. Our method of dealing with these factors is to identify them as soon as possible and to immediately communicate with MPO officials to determine what efforts will be necessary to work through the situation. Typically, extra efforts are required of both the audit firm and the MPO staff. The professional attitude of the MPO staff, as well as our considerable audit experience; has given us an excellent track record in resolving unanticipated difficulties. EXHIBIT "B" SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR ADDITIONAI. SERVICES Maximum All -Inclusive Nature of Service to be Provided Total Price 2009 Audit of North Front Range MPO 2010 Audit of North Front Range MPO 2011 Audit of North Front Range MPO 2012 Audit of North Front Range MPO 2013 Audit of North Front Range MPO $10,500 10,900 11,300 11,700 12,100 NORTH FRONT RANGE MPO SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS. Standard Quoted Hourly Hourly Hours Rate Rate Total Shareholder 11 Manager 40 In -Charge Auditor 60 $ 260 140 85 $ 200 105 65 $ 2,200 4,200 3,900 Subtotal N/A N/A $10,300 Out-of-pocket expenses 200 Total all-inclusive maximum price for 2009 audit $10,500 23 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR ADDITIONAL SERVICES NOT SPECIFIED IN APPENDIX F Standard Quoted Hourly Hourly Rates Rates Shareholder $ 260 $ 200 Manager 140 105 Supervisory Staff 85 65 Staff 75 56 Other (specify) Out of pocket expenses: Meals and lodging (amount per person per day) (lunch) Transportation (cents -per -mile) Other (specify) $10 55¢ EXHIBIT C - Federal Patent and Rights in Data 37 C.F.R. Part 401, 49 C.F.R. Parts 18 and 19 The FTA patent clause is substantially similar to the text of 49 C.F.R. Part 19, Appendix A, § 5, but the rights in data clause reflects FTA objectives. For patent rights, FTA is governed by Federal law and regulation. For data rights, the text on copyrights is insufficient to meet FTA's purposes for awarding research grants. This model clause, with larger rights ,as a standard, is proposed with the understanding that this standard could be modified to FTA's needs. CONTRACTS INVOLVING EXPERIMENTAL, DEVELOPMENTAL, OR RESEARCH WORK. A. Rights in Data. (1) The term "subject data" means recorded information, whether or not copyrighted, that is delivered or specified to be delivered under this Agreement. The term includes graphic or pictorial delineation in media such as drawings or photographs; text in specifications or related performance or design -type documents; machine forms such as punched cards, magnetic tape, or computer memory printouts; and information retained in computer memory. Examples include, but are not limited to: computer software, engineering drawings and associated lists, specifications, standards, process sheets, manuals, technical reports, catalog item identifications, and related information. The term "subject data" does not include financial reports, cost analyses, and similar information incidental to contract administration. (2) The following restrictions apply to all subject data first produced in the performance of the contract to which this Attachment has been added: (a) Except for its own internal use, Professional may not publish or reproduce subject data in whole or in part, or in any manner or form, nor may Professional authorize others to do so, without the written consent of the Federal Government, until such time as the Federal Government may have either released or approved the release of such data to the public; this restriction on publication, however, does not apply to any contract with an academic institution. (b) In accordance with 49 C.F.R. 18.34 and 49 C.F.R. 19.36, the Federal Government reserves a royalty -free, non-exclusive and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use, for "Federal Government purposes," any subject data or copyright described in subsections (2)(b)l and (2)(b)2 below. As used in the previous sentence, "for Federal Government purposes," means use only for the direct purposes of the Federal Government. Without the copyright owner's consent, the Federal Government may not extend its Federal license to any other party. 1. Any subject data developed under this Agreement, whether or not a copyright has been obtained; and 25 obligations of the parties shall be the same as if the termination had been issued for the convenience of the MPO. 6. Opportunity to Cure. In the case of a breach or default, the MPO may, in its sole discretion, allow Professional a period of time in which to cure the defect. In such case, the notice of termination shall state the time period in which cure is permitted and other appropriate conditions. If Professional fails to remedy to the MPO's satisfaction the breach or default or any of the terms, covenants, or conditions of this Agreement within ten (10) days after receipt by Professional of written notice from the MPO setting forth the nature of said breach or default, the MPO may terminate the Agreement without any further obligation to Professional and seek damages, may treat the Agreement as continuing and require specific performance, or may avail itself of any other remedy at law or equity. If the MPO commences legal or equitable actions against Professional, Professional shall be liable to the MPO for the MPO's reasonable attorney fees and costs incurred because of the default. Any such termination for default shall not in any way operate to preclude the MPO from also pursuing all available remedies against Professional and its sureties for said breach or default. 7. Waiver of Remedies for any Breach. If the MPO elects to waive its remedies for any breach by Professional of any covenant, term or condition of this Agreement, such waiver by the MPO shall not limit the MPO's remedies for any succeeding breach of that or of any other term, covenant, or condition of this Agreement. 8. Responsibility. Professional shall be responsible for the professional quality, technical accuracy, timely completion and the coordination of all services rendered by the Professional, including but not limited to designs, plans, reports, specifications, and drawings and shall, without additional compensation, promptly remedy and correct any errors, omissions, or other deficiencies. 9. Indemnification. Professional shall indemnify, hold harmless and defend the MPO and its representatives, officers, employees, agents, and contractors from and against all liabilities, penalties, costs, losses, damages, expenses, causes of action, claims, demands, or judgments, including, without limitation, reasonable attorney fees, arising from or in any way connected with injury to or the death of any person or physical damage to any property resulting from any act, omission, condition, or other matter related to this Agreement. 10. Insurance. Professional shall maintain commercial general liability insurance in the amount of $500,000 combined single limits, and errors and omissions insurance in the amount of $1,000,000. 11. Compensation. In consideration of the services to be performed pursuant to this Agreement, the MPO agrees to pay Professional on a time and reimbursable direct cost basis according to the following schedule: 2. Any rights of copyright purchased by Professional using Federal assistance in whole or in part provided by FTA. (c) When FTA awards Federal assistance for experimental, developmental, or research work, it is FTA's general intention to increase transportation knowledge available to the public, rather than to restrict the benefits resulting from the work to participants in that work. Therefore, unless FTA determines otherwise, Professional performing experimental, developmental, or research work required by this Agreement agrees to permit FTA to make available to the public, either FTA's license in the copyright to any subject data developed in the course of that contract, or a copy of the subject data first produced under the contract for which a copyright has not been obtained. If the experimental, developmental, or research work, which is the subject of the underlying contract, is not completed for any reason whatsoever, all data developed under that contract shall become subject data as defined in subsection (a) of this clause and shall be delivered as the Federal Government may direct. This subsection (c), however, does not apply to adaptations of automatic data processing equipment or programs for Professional's use whose costs are financed in whole or in part with Federal assistance provided by FTA for transportation capital projects. (d) Unless prohibited by state law, upon request by the Federal Government, the MPO and Professional agree to indemnify, save, and hold harmless the Federal Government, its officers, agents, and employees acting within the scope of their official duties against any liability, including costs and expenses, resulting from any willful or intentional violation by the MPO or Professional of proprietary rights, copyrights, or right of privacy, arising out of the publication, translation, reproduction, delivery, use, or disposition of any data furnished under that contract. Neither the MPO nor Professional shall be required to indemnify the Federal Government for any such liability arising out of the wrongful act of any employee, official, or agents of the Federal Government. (e) Nothing contained herein shall imply a license to the Federal Government under any patent or be construed as affecting the scope of any license or other right otherwise granted to the Federal Government under any patent. (f) Data developed by Professional and financed entirely without using Federal assistance provided by the Federal Government that has been incorporated into work required by the underlying contract to which this Attachment has been added is exempt from the requirements of subsections (b), (c), and (d) of this clause, provided that Professional identifies that data in writing at the time of delivery of the contract work. (g) Unless FTA determines otherwise, Professional agrees to include these requirements in each subcontract for experimental, developmental, or research work financed in whole or in part with Federal assistance provided by FTA. (3) Unless the Federal Government later makes a contrary determination in writing, irrespective of Professional's status (i.e., a large business, small business, state government or state instrumentality, local government, nonprofit organization, institution of higher education, individual, etc.), the MPO and Professional agree to take the necessary actions to provide, through FTA, those rights in that invention due the Federal Government as described in U.S. Department of Commerce regulations, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," 37 C.F.R. Part 401. (4) Professional agrees to include these requirements in each subcontract for experimental, developmental, or research work financed in whole or in part with Federal assistance provided by FTA. B. Patent Rights: (1) If any invention, improvement, or discovery is conceived or first actually reduced to practice in the course of or under this Agreement, and that invention, improvement, or discovery is patentable under the laws of the United States of America or any foreign country, Professional agrees to take actions necessary to provide immediate notice and a detailed report to the party at a higher tier until FTA is ultimately notified. (2) Unless the Federal Government later makes a contrary determination in writing, irrespective of Professional's status (a large business, small business, state government or state instrumentality, local government, nonprofit organization, institution of higher education, individual), Professional agrees to take the necessary actions to provide, through FTA, those rights in that invention due the Federal Government as described in U.S. Department of Commerce regulations, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," 37 C.F.R. Part 401. (3) Professional agrees to include the requirements of this clause in each subcontract for experimental, developmental, or research work financed in whole or in part with Federal assistance provided by FTA. 27 EXHIBIT D AFFIDAVIT PURSUANT TO C.R.S. 24-76.5-103 I, Ai.. 14 /-+ ,P"), swear or affirm under penalty of perjury under the laws of the State of Colorado that (check one): ✓ I am a United States citizen, or I am a Permanent Resident of the United States, or I am lawfully present in the United States pursuant to Federal law. understand that this sworn statement is required by law because I have applied for a public benefit. I understand that state law requires me to provide proof that I am lawfully present in the United States prior to receipt of this public benefit. I further acknowledge that making a false, fictitious, or fraudulent statement or representation in this sworn affidavit is punishable under the criminal laws of Colorado as perjury in the second degree under Colorado Revised Statute 18-8-503 and it shall constitute a separate criminal offense each time a public benefit is fraudulently received. Signature Date INTERNAL USE ONLY Valid forms of identification current Colorado driver's license, minor driver's license, probationary driver's license, commercial driver's license, restricted driver's license, instruction permit ---current Colorado identification card q--U.S. military card or dependent identification card P--U.S. coast guard merchant mariner card P--Native American tribal document The following forms of identification may be accepAed through February 28, 2007* 1---original birth certificate from any state of the United States Y--certificate verifying naturalized status by U.S. with photo and raised seal p--certificate verifying U.S. citizenship by U.S. government, e.g., U.S. passport q--order of adoption by a U.S. court with seal of certification q--valid driver's license from any state of the U.S. or the Dist. of Columbia excluding AK, HI, IL, MD, MI, NE, NM, NC, OR, TN, TX, UT, VT and WI 7—valid immigration documents demonstrating lawful presence, e.g., current foreign passport with current 1-551 stamp or visa, current foreign passport with 1-94, 1-94 with asylum status, unexpired Resident Alien card, Permanent Resident card or Employment Authorization card i *A waiver may be available where no identification exists or can be obtained due to a medical condition, homelessness, or insufficient documentation to receive a Colorado I.D. or driver's license. Contact your department director. See fee schedule included in Exhibit B, and incorporated herein by this reference, With maximum compensation (for both the Professional's time and reimbursable direct costs) not to exceed Ten Thousand Four Hundred dollars ($IZ0) rot the 2009 audit. Monthly partial payments based upon the Professional's billings and itemized statements are permissible. The amount of all such partial payments shall be based upon the Professional's MPO-verified progress in completing the services to be performed pursuant to the Scope of Services and upon approval of the Professional' direct reimbursable expenses. Final payment shall be made following acceptance of the work by the MPO. 12. Records and Reports. The MPO and Professional shall maintain all books, records, and other documentation pertaining to the Scope of Services and necessary to completely substantiate all costs incurred and billed to the MPO during the term of this Agreement for a period of three (3) years from the date of final payment under the terms of this Agreement. These records shall be made available for inspection and audit to any state or federal authority authorized to inspect such records and copies thereof shall be furnished at the expense of Professional, if so requested. 13. Ownership of Work Product. Upon final payment, all designs, plans, reports, specifications, drawings, and other services rendered by Professional shall become the sole property of the MPO, which shall have the royalty -free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use and authorize others to use all such materials for authorized government purposes. Other entities that may reproduce, publish, or otherwise use the designs, plans, reports, specifications, drawings, and other services rendered by Professional include but are not limited to the Colorado Department of Transportation ("CDOT"), the Federal Transportation Administration ("FTA"), and the Federal Highway Administration ("FHWA"). 14. MPO Representative. The MPO shall designate, prior to commencement of work, its project representative who shall make, within the scope of his or her authority, all necessary and proper decisions with reference to the project. All requests for contract interpretations, change orders, and other clarification or instruction shall be directed to the MPO Representative. 15, Monthly Report. Commencing at the end of the calendar month following the date of execution of this Agreement and every calendar month end thereafter, Professional shall provide the MPO with a written report of the status of the work. Failure to provide any required monthly report may, at the option of the MPO, suspend the processing of any partial payment request. 16. Independent Contractor. The services to be performed by Professional are those of an independent contractor and not of an employee of the MPO. The MPO shall not be responsible for withholding any portion of Professional's compensation hereunder for the payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose. M 17. Personal Services. It is understood that the MPO enters into this Agreement based on the special abilities of Professional and that this Agreement shall be considered as an agreement for personal services. Accordingly, Professional shall neither assign any responsibilities nor delegate any duties, nor create any subcontracts arising under this Agreement without the prior written consent of the MPO. 18. Conflict of Interests and Prohibited Interests. The MPO and Professional represent that neither has any interests and shall not acquire any interests, directly or indirectly, that would conflict in any manner or degree with the performance and services required to be performed under this Agreement. The MPO and Professional further represent that no member or delegate to the Congress of the United States shall be admitted to any share or part of this Agreement or to any benefit arising therefrom. In addition no employee, officer, or agent of the MPO shall participate in selection or in the award or administration of this Agreement if a conflict of interest, real or apparent, would be involved. Such conflict would arise when the employee, officer or agent; any member of his immediate family; his or her partner; or an organization which employs, or is about to employ any of the foregoing, has a financial or other interest in the firm selected for award. The MPO's officers, employees, or agents shall neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties of subagreements. 20. No Waiver. The MPO's approval of drawings, designs, plans, specifications, reports, and incidental work or materials furnished hereunder shall not in any way relieve the Professional of responsibility for the quality or technical accuracy of the work. The MPO's approval or acceptance of, or payment for, any of the services shall not be construed to operate as a waiver of any rights or benefits provided to the MPO under this Agreement. 21. No Government Obligation to 'Third Parties. The MPO and Professional acknowledge and agree that, notwithstanding any concurrence by the federal government in or approval of the solicitation or award of the underlying contract, absent the express written consent by the federal government, the federal government is not a party to this Agreement and shall not be subject to any obligations or liabilities to the MPO, Professional, or any other party (whether or not a party to this Agreement) pertaining to any matter resulting from this Agreement. 22. Notices. All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the following addresses: Professional: MPO: With Copy to: Anderson & Whitney, P.C. THE NFRT & AQPC City of Fort Collins Attn: Alan Holmberg, CPA Attn: Crystal Hedberg Purchasing 5801 West I l to Street, Ste 300 419 Canyon Ave, Ste 300 PO Box 580 Greeley, CO 80634-4813 Fort Collins, CO 80521 Ft Collins, CO 80522 23. Incorporation of FTA Terms. This Agreement includes certain Standard Terms and Conditions required by the federal Department of Transportation ("DOT') and other federal and state authorities, whether or not expressly set forth in this Agreement. All contractual provisions required by DOT, as set forth in FTA Circular 4220.1 D, dated April 15, 1996, are hereby incorporated by reference. Anything to the contrary herein notwithstanding, all FTA mandated terms shall be deemed to control in the event of a conflict with other provisions contained in this Agreement. Professional shall not perform any act, fail to perform any act, or refuse to comply with any the MPO requests which would cause the MPO to be in violation of the FTA terms and conditions. 24. Grant Assurances and Federal Requirements. This Agreement involves the expenditure of federal funds, which requires the MPO and Professional at all times during the execution of this Agreement to adhere to and comply with all applicable federal laws and regulations, as they currently exist and may hereafter be amended, which are incorporated herein by this reference as terms and conditions of this Agreement. A non -exhaustive list of federal laws and regulations that may be applicable is included below. By signing this Agreement, Professional avers that it is his or her responsibility to be aware of the requirements that may be imposed by the following federal laws and regulations, and others not listed, that he or she is aware of any such requirements, and that he or she will comply with all applicable laws and regulations. a. Laws and regulations prohibiting false claims and statements from being made to the federal government, 31 U.S.C.A § 3801, et seq., 49 C.F.R. Part 31, and 18 U.S.C.A. § 1001; b. Federal privacy law, 5 U.S.C.A. § 552; C. Nondiscrimination and equal employment opportunity laws in accordance with Title VI of the Civil. Rights Act, 42 U.S.C.A. § 2000d; § 303 of the Age Discrimination Act of 1975, 42 U.S.C.A. § 6102; § 202 of the Americans with Disabilities Act of 1990, 42 U.S.C.A. § 12132 ("ADA"); and Federal transit law, 49 U.S.C.A. § 5332; d. Mandatory standards and policies relating to energy efficiency that are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act, 42 U.S.C.A. § 6201. 25. Bindinp, Effect. This Agreement, together with the exhibits hereto, constitutes the entire agreement between the parties and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal representatives, successors and assigns of said parties. 26. Governing Law. The laws of the State of Colorado shall govern the construction, interpretation, execution and enforcement of this Agreement. 27. Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement. 28. Prohibition Against Employing Illegal Aliens. This paragraph shall apply to all Contractors whose performance of work under this Agreement does not involve the delivery of a specific end product other than reports that are merely incidental to the performance of said work. Pursuant to Section 8-17.5-101, C.R.S., et. seq., Contractor represents and agrees that: a. As of the date of this Agreement: 1. Contractor does not knowingly employ or contract with an illegal alien; and 2. Contractor has participated or attempted to participate in the basic pilot employment verification program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, administered by the United States Department of Homeland Security (the "Basic Pilot Program") in order to confirm the employment eligibility of all newly hired employees. b. Contractor shall not knowingly employ or contract with an illegal alien to perform work under this Agreement or knowingly enter into a contract with a subcontractor that knowingly employs or contracts with an illegal alien to perform work under this Agreement. C. Contractor shall continue to apply to participate in the Basic Pilot Program and shall in writing verify same every three (3) calendar months thereafter, until Contractor is accepted or the public contract for services has been completed, whichever is earlier. The requirements of this section shall not be required or effective if the Basic Pilot Program is discontinued. d. Contractor is prohibited from using Basic Pilot Program procedures to undertake pre -employment screening of job applicants while this Agreement is being performed. e. If Contractor obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien, Contractor shall: 1. Notify such subcontractor and the City within three days that Contractor has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and 2. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the illegal alien; except that Contractor shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. f. Contractor shall comply with any reasonable request by the Colorado Department of Labor and Employment (the "Department") made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5-102 (5), C.R.S. g. If Contractor violates any provision of this Agreement pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this Agreement is so terminated, Contractor shall be liable for actual and consequential damages to the City arising out of Contractor's violation of Subsection 8-17.5-102, C.R.S. h. "The City will notify the Office of the Secretary of State if Contractor violates this provision of this Agreement and the City terminates the Agreement for such breach. 29. Special Provisions. Special provisions or conditions relating to federal patent law and rights in data that are applicable to this Agreement are set forth in Exhibit C, attached hereto and incorporated herein by this reference. 13 THE NORTH FRONT RANGE TRANSPORTATION AND AIR QUALITY PLANNING COUNCIL (MPO) Cli avV0n',-GeC-ut'Av Director PROFESSIONAL: By: Title: STATE OF COLORADO ) ss. COUNTY OF } The foregoing instrument was subscribed, sworn to and acknowledged before me this da y of 200 by fas of .] My commission expires: (S E A L) Notary Public EXHIBIT A — Scope of Services Professional will audit the basic financial statements of the MPO as of December 31, 2009 and for the year then ending. Also, the document the MPO receives from the Professional will include required supplementary information and additional information that will be subjected to the auditing procedures applied in the audit of the financial statement as applicable. The objective of the audit is the expression of an opinion as to whether the financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States, and to report on the fairness of the additional information when considered in relation to the basic financial statements taken as a whole. The objective also includes reporting on the Schedule of Expenditures of Federal Awards and the MPO's compliance with laws and regulations and its internal control as required for a single audit. The audit will be made in accordance with auditing standards generally accepted in the United States; the standard for financial audits contain in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. As such, the audit will include tests of the accounting records, a determination of major program(s) in accordance with Circular A- 133, and other procedures considered necessary to enable the Professional to express an opinion on the financial statements and to render the required reports. If the opinion is other than unqualified, the Professional will discuss the reasons with management in advance. The audit procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of physical existence of assets, and direct confirmation with selected customers, creditors, legal counsel and banks. J Whenever possible, MPO personnel will be used, as well as their schedules, reports and correspondence. At the conclusion of the audit, the Professional will request certain written representations from the MPO about the financial statement and related matters. The audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements; therefore, the audit will involve judgment about the number of transactions to be examined and the areas to be tested. The audit will be planned and performed to obtain reasonable rather than absolute assurance about whether the basic financial statements are free of material misstatement, whether caused by errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations that are attributed to the entity or to acts by management or employees acting on behalf of the entity. As required by the Single Audit Act Amendments of 1996 and OMB Circular A-133, the audit will include tests of transactions related to major federal award programs for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Because an audit is 15