HomeMy WebLinkAboutC-6260 - PSA for Audit40
Professional Service Agreement
Agreement dated 2.0 TVL.Y f 2000 between The Profit Recovery Group International, Inc.
located at 26311 Junipero Serra Road, Suite 200, San Juan Capistrano, CA 92675 (herein called "Firm "),
and City of Newport Beach located at 3300 Newport Blvd., Newport Beach, CA 92659 -1768 (herein
called "Client ").
In consideration of the mutual promises herein contained, Firm and Client agree that:
9. SCOPE OF SERVICES
During the term of this Agreement, Firm shall, to the best of its ability and skill, perform an audit of Client's
disbursements, including verification of price terms and conditions, and related regulatory matters in order
to identify recoveries on behalf of the Client. Client will provide Firm with disbursement data for the three
previous years and Firm will use its patented ScanSearchTM technology to review one hundred percent of
Client's transactions and create the audit tools and analytical reports needed to perform an efficient and
effective audit.
Firm's major objective will be to identify overpayments made by Client when paying suppliers' invoices for
inventory, supplies, services, capital projects, and other expenses. The audit will identify payment errors
including, but not limited to: duplicate payments, pricing errors, missed rebates or discounts, unrecorded
purchase returns, unnecessary escheatment, sales tax and other recoveries creating economic benefit for
Client. Client will notify Firm in advance if there are any particular areas to be excluded from the Scope of
Services.
This audit will be performed on a contingency basis where a percentage of the recovery will be earned by
the Firm. The audit will be completed without any out of pocket costs to Client, and with no disruption to
supplier relationships. Firm will pull and re -file all supporting documentation required to validate each
recovery, and will require minimal support from Client's staff. Such services shall be rendered by Firm as
an independent contractor and not as an employee of Client. The scope of this agreement shall include
disbursements from September 1996 up to, but not including, 90 days prior to the commencement of the
audit.
2. PAYMENT RATES AND BILLING
As compensation for services to be performed by Firm hereunder, Client will pay Firm:
Fifty percent (50 %) of the amount recovered. The "Amount Recovered" is defined as: (1) refund checks
received from Client's suppliers, (2) debits approved by Client's suppliers and subsequently processed by
Client. Firm shall bear all of the incidental expenses and costs associated with performing the audit. If
Client elects to pursue collection efforts, then Firm and Client agree to share net recoveries as a result of
such effort. Firm will invoice Client only after Client has recorded the recovery. invoices submitted by
Firm will make reference to this Agreement or otherwise identify the invoice in such a manner as Client
may require and provide complete supporting detail. The payment rates are based on the complete
Scope of Services described above. Client agrees that it will not disclose any elements of this fee
structure to any other third parties.
3. CONFIDENTIAL INFORMATION
Firm shall preserve as confidential all information pertaining to Client's business and all technical and
proprietary information obtained from Client in the performance of this Agreement. At no time will any
Client documentation leave the Client's premises.
4. TERMINATION
This Agreement may be terminated at any time by either party upon ten (10) days written notice to the
other party. In the event of such termination, Client shall have no further obligation to Firm except to make
any payments on recoveries previously identified and /or validated at that time.
5. REPORTS
Firm shall furnish reports to Client from time to time, when requested, in such form and number as may be
required by Client, concerning activities of Firm under this Agreement, and shall make a final report or
reports as may be required by Client.
6. ADDENDUM
Client agrees to process all amounts recovered within thirty (30) business days upon receipt of invoice
from Firm and supply Firm with periodic progress reports regarding collection of audit recoveries. Client
agrees to actively pursue all sales tax recoveries that have been authenticated by an appropriate state
agency. Firm agrees to abide by all laws and use only ethical means to identify and collect over
payments.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.
The Profit Recovery Group International, Inc. City of Newport Beach
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date 1/2-t/00
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Professional Service Agreement
Agreement dated 2.0 TUL—y-A , 2000 between The Profit Recovery Group International, Inc.
located at 26311 Junipero Serra Road, Suite 200, San Juan Capistrano, CA 92675 (herein called "Firm "),
and City of Newport Beach located at 3300 Newport Blvd., Newport Beach, CA 92659 -1768 (herein
called "Client ").
In consideration of the mutual promises herein contained, Firm and Client agree that:
I. SCOPE OF SERVICES
During the term of this Agreement, Firm shall, to the best of its ability and skill, perform an audit of Client's
disbursements, including verification of price terms and conditions, and related regulatory matters in order
to identify recoveries on behalf of the Client. Client will provide Firm with disbursement data for the three
previous years and Firm will use its patented ScanSearch -" technology to review one hundred percent of
Client's transactions and create the audit tools and analytical reports needed to perform an efficient and
effective audit.
Firm's major objective will be to identify overpayments made by Client when paying suppliers' invoices for
inventory, supplies, services, capital projects, and other expenses. The audit will identify payment errors
including, but not limited to: duplicate payments, pricing errors, missed rebates or discounts, unrecorded
purchase returns, unnecessary escheatment, sales tax and other recoveries creating economic benefit for
Client. Client will notify Firm in advance if there are any particular areas to be excluded from the Scope of
Services.
This audit will be performed on a contingency basis where a percentage of the recovery will be earned by
the Firm. The audit will be completed without any out of pocket costs to Client, and with no disruption to
supplier relationships. Firm will pull and re -file all supporting documentation required to validate each
recovery, and will require minimal support from Client's staff. Such services shall be rendered by Firm as
an independent contractor and not as an employee of Client. The scope of this agreement shall include
disbursements from September 1996 up to, but not including, 90 days prior to the commencement of the
audit.
2. PAYMENT RATES AND BILLING
As compensation for services to be performed by Firm hereunder, Client will pay Firm:
Fifty percent (50 %) of the amount recovered. The "Amount Recovered" is defined as: (1) refund checks
received from Client's suppliers, (2) debits approved by Client's suppliers and subsequently processed by
Client. Firm shall bear all of the incidental expenses and costs associated with performing the audit. If
Client elects to pursue collection efforts, then Firm and Client agree to share net recoveries as a result of
such effort. Firm will invoice Client only after Client has recorded the recovery. Invoices submitted by
Firm will make reference to this Agreement or otherwise identify the invoice in such a manner as Client
may require and provide complete supporting detail. The payment rates are based on the complete
Scope of Services described above. Client agrees that it will not disclose any elements of this fee
structure to any other third parties.
3. CONFIDENTIAL INFORMATION
Firm shall preserve as confidential all information pertaining to Client's business and all technical and
proprietary information obtained from Client in the performance of this Agreement. At no time will any
Client documentation leave the Client's premises.
4. TERMINATION
This Agreement may be terminated at any time by either party upon ten (10) days written notice to the
other party. In the event of such termination, Client shall have no further obligation to Firm except to make
any payments on recoveries previously identified and /or validated at that time.
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Firm shall furnish reports to Client from time to time, when requested, in such form and number as may be
required by Client, concerning activities of Firm under this Agreement, and shall make a final report or
reports as may be required by Client.
6. ADDENDUM
Client agrees to process all amounts recovered within thirty (30) business days upon receipt of invoice
from Firm and supply Firm with periodic progress reports regarding collection of audit recoveries. Client
agrees to actively pursue all sales tax recoveries that have been authenticated by an appropriate state
agency. Firm agrees to abide by all laws and use only ethical means to identify and collect over
payments.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.
The Profit Recovery Group International, Inc. City of Newport Beach
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title 1Ge �res�d�' '► title
date Zl /00 date lG'G G