Memorandum

City of Lawrence

City Manager’s Office

 

TO:

Diane Stoddard, City Manager

Casey Toomay, Assistant City Manager

FROM:

Kevyn Gero, Management Assistant

DATE:

12/1/2015

RE:

Outside Agency Agreement Proposed Revisions

 

The agreements between the City and the various outside agencies that are allocated funds through the annual budget process have been reviewed and revised to incorporate additional language about audit access and records retention.  These agencies are required to sign an agreement that outlines how the funds will be used along with the reporting requirements for the agencies. 

 

Revisions to the 2016 Agreements

Currently the agreements have language stating agencies need to provide the City with reasonable access to financial records concerning the expenditure of City Funds. City staff recommends specifically listing audit access to the City Auditor. The addition would clarify that the City Auditor would have access when conducting a performance audit directed by the City Commission. The agreement would state, “The Independent Agency will give the City, the City Auditor, or any authorized representatives access to and the right to examine all records related to the expenditure of City funds.”

 

Agencies will also be required to maintain documents after a funding year and they shall be made available promptly. Language about retaining records will be included as follows: “The Agency shall keep financial records and all other records pertaining to this project being funded for a minimum of three (3) years. The city may, at its sole option, conduct an audit related to this funding agreement. The Independent Agency shall, upon City’s request, make its records, employees, and property available promptly.” An example agreement is attached.

 

The updated language was adapted from current funding agreements utilized by the City as part of the Community Development Block Grant Program.

 

Next Steps

If appropriate, the revised agreements for 2016 funding will be distributed to the agencies for them to review and sign.