Memorandum

City of Lawrence

City Auditor

TO:	Members of the City Commission
FROM:	Michael Eglinski, City Auditor
CC:	David L. Corliss, City Manager Diane Stoddard, Assistant City Manager Casey Toomay, Assistant City Manager Toni Wheeler, City Attorney
DATE:	January 15, 2015
RE:	Revised draft agreement for construction audit services related to RCP infrastructure

The City Attorney and I negotiated a revised agreement with McDonald & Associates. The revised agreement changes the language regarding compliance with Institute of Internal Auditors standards.

Consultant will attempt to perform the Contract Services in compliance with the Institute of Internal Auditors Standards (Red Book) and by using Consultant's Operations Manual, which constitute Consultant's normal standards. However, under the circumstances, full compliance with all of those standards may not be possible. The City is aware of that fact and accepts that may be a possible result.

The revised agreement calls for additional work hours for McDonald & Associates and extends the deadline for completing their report. The fees for hourly service remain at $160 per hour, but the anticipated hours increased from 136 to 160 hours. The deadline for reporting is extended to February 26, 2015.

The report would include McDonald & Associates’ conclusions based on their audit work and could include recommendations for improvement.