08-24-2004 REVENUE RECOVERY GROUP INC AGREEMENTAGREEMENT
THIS AGREEMENT is made and entered into this 24-4\ day of A kS\7 , 200-q, by and
between the Town of AVON-\, , Colorado (herein re ed to as "TOWN"), and
Revenue Recovery Group, Inc. (herein referred to as "RRG"), a Louisiana corporation domiciled
and with its principal place of business at 15556 Perkins Road, Baton Rouge, Louisiana 70810.
1. RECITALS AND PURPOSE.
A. RRG is authorized to do business in the state of Colorado and has represented to Town
that it possesses the requisite skill, expertise, and experience with respect to state and
municipal revenues.
B. Town desires to retain the services of RRG as its Agent to engage in providing services
that may include, but are not limited to consulting, training, development and
implementation of education programs, administrative functions for the collection and/or
enforcement of taxes, fees and other revenues, auditing, and/or other related activities in
an attempt to maximize revenues and enhance tax compliance programs.
II. TERM OF AGREEMENT.
This Agreement shall become effective upon execution and shall continue until terminated
by either party by giving thirty days (30) written notice. In conformance with Article X, Section 20
of the Constitution of the State of Colorado, this contract shall be considered an annual contract
and shall be automatically renewed at the end of each calendar year, unless the Town gives
written notice of its intent not to renew at least thirty (30) days prior to December 31St of each
calendar year.
Ill. SERVICES.
The Town may engage RRG to perform any one or more of the following services through
this Agreement:
A. Consulting Services - may include, but are not limited to, assisting the Town with
the development and/or implementation of educational materials, training programs for Town
staff, special projects, analysis of new tax/fee programs and assisting in program implementation,
as well as revenue analysis and reports. (Reference Exhibit A).
B. Construction Administration Program - may include, but is not limited to, the
provision of technical assistance and staff support in the development and implementation of
systems to identify, record, track and/or provide on-going analysis of construction permits and
associated use tax deposits and obligations through to the completion of the projects to ensure all
appropriate taxes/fees have been appropriately remitted to Town. (Reference Exhibit B).
C. Auditing Services - may include, but are not limited to, auditing for the following
revenues (Reference Exhibit C):
1. Sales and use taxes
2. Construction use tax
3. Motor vehicle use tax
4. Occupational privilege taxes
5. Accommodations or lodging taxes
6. Admission tax and/or Seat Tax
7. Franchise fees
8. Alcohol / Tobacco
IV. FEES AND EXPENSES.
A. In consideration of the services rendered hereunder, Town shall compensate
RRG at the rates shown in the attached exhibits based upon the work authorized and performed.
B. The Town shall pay the invoice within the time specified in the exhibits.
Payments made after the time specified in the exhibits may be assessed an interest charge of
one percent (1 per month.
C. RRG shall retain its records regarding its compensation, time and expenses for a
period of ninety days (90) beyond payment of its fees and reimbursement of expenses. Town
may request access to such records during this period, and RRG agrees to retain all such records
for such period. RRG shall maintain and retain all audit files for at least three (3) years following
the date on which services are rendered. Town shall have full access to all information related to
audits and contained in said files during this period.
V. CONFLICTS OF INTEREST.
A. RRG shall not represent or assist any taxpayer in any matter involving the taxes or
fees of the Town that are the subject of this agreement without first disclosing such representation
or assistance to the Town and obtaining the Town's approval in writing.
B. During the term of this Agreement and for a period of twenty four (24) months
following the termination of this Agreement, following any extensions thereof, and following any
additional periods in which RRG provides services to and for Town, Town agrees not to offer,
hire, or in fact, employ or enter into any contractual relationship, partnership, corporation, or other
business relationship, directly or indirectly, with any of RRG's past, present or future employees
(hired after the date of this agreement), or consultants, or any business entities employing or
contracting with such employees or independent contractors, if any such employees, consultants,
or business entities are or have been utilized by RRG in providing auditing services under this
Agreement.
VI. CONFIDENTIALITY.
A. RRG acknowledges the applicable requirements of law, including but not limited to
C.R.S. §29-2-106(4)(c), C.R.S. §39-21-113(4), and/or any ordinances of the Town, concerning
the confidentiality of tax records and agrees that, except in accordance with judicial order or as
otherwise provided by law, that RRG and its employees and consultants shall not divulge any
information gained from any audit conducted pursuant to this Agreement or disclosed in any
2
document, report, or return filed in connection with the taxes or fees to which this Agreement
applies.
VII. STATUS OF RRG.
A. RRG and any persons employed by RRG for the performance of work hereunder
shall be independent contractors and not employees of the Town. Any provisions in this
Agreement that may appear to give the Town the right to direct RRG as to details of doing work
or to exercise a measure of control over the work mean that RRG shall follow the direction of the
Town as to end results of the work only. Nothing herein shall be construed as establishing a
quality standard for any individual, or as establishing any right on the part of the Town to oversee
the actual work of RRG or to instruct any individual as to how the work will be performed.
B. It is further understood and agreed that RRG shall have the right to employ such
assistance, including the assistance of its employees and consultants, as may be required for the
performance of work under this Agreement, however the Town will have the opportunity to
approve all assigned staff.
C. THE PARTIES HERETO UNDERSTAND THAT RRG AND RRG'S EMPLOYEES
AND CONSULTANTS ARE NOT ENTITLED TO WORKERS' COMPENSATION BENEFITS
UNDER ANY WORKERS' COMPENSATION INSURANCE POLICY OF THE TOWN, AND
THAT RRG IS OBLIGATED TO PAY FEDERAL AND STATE INCOME TAX AND OTHER
APPLICABLE TAXES AND OTHER AMOUNTS DUE ON ANY MONIES PURSUANT TO THIS
AGREEMENT.
VIII. GENERAL.
A. Any notice required or permitted by this Agreement shall be in writing and shall be
deemed to have been sufficiently given for all purposes if sent by certified or registered mail,
postage and fees prepaid, addressed to the party to whom such notice is to be given at the
address set forth on the signature page below, or at such other address as has been previously
furnished in writing, to the other party or parties. Such notice shall be deemed to have been
given when deposited in the United States mail.
B. The captions of the paragraphs are set forth only for convenience and reference
of the parties and are not intended in any way to define, limit, or describe the scope or intent of
the Agreement.
C. A waiver by any party to this Agreement of a breach of any term or provision of
this Agreement shall not operate or be construed as a waiver of any subsequent breach by
any party.
D. Colorado law shall apply to the construction and enforcement of this Agreement.
E. This Agreement shall inure to the benefit of, and be binding upon the parties, their
respective legal representatives, successors, and assigns.
F. This Agreement represents the entire Agreement between the parties and there
are no oral or collateral agreements or understandings.
G. Only an instrument in writing signed by the parties may amend this Agreement. If
any other provision of this Agreement is held invalid or unenforceable, no other provision shall be
affected by such holding, and all of the remaining provisions of this Agreement shall continue in
full force and effect. All previous agreements, understandings, and arrangements between the
parties are terminated by this Agreement.
H. If any law is passed, subsequent to this Agreement, which seeks to alter the
terms, conditions, or obligations of the parties, which the parties have herein agreed upon, it is
the parties' intent that the Agreement shall be considered "grandfathered" in and the new law
shall not affect such existing terms, conditions, or obligations of the parties.
1. Should this Agreement become the subject of litigation between the Town and
RRG, the prevailing party shall be entitled to recovery of all actual costs in connection
therewith, including but not limited to attorney's fees and expert witness fees. All rights
concerning remedies and/or attorney's fees shall survive any termination of this Agreement.
J. To the extent permitted by law, each party to this Agreement shall hold
harmless, indemnify and defend the other party, including the other parties' employees,
officers, agents, and assigns, from any claim, lawsuit, or award of damages, to the extent such
claims, lawsuit, or award of damages arises from the action or inaction of that parties' own
officers, employees and agents. Nothing herein shall be interpreted as a waiver of
governmental immunity, to which the other parties would otherwise be entitled under §24-6-
101, et seq., C.R.S., as amended
TOWN OF
i
B:
REVENUE RECOVERY GROUP, INC.
By:
Its: ~ O) e- , Its:
4
Exhibit A - Consulting Services
Consulting Services may include, but are not limited to, assisting the Town with the
development and/or implementation of educational materials, training programs for Town staff,
and special projects as needed, coordination and/or support to Town in negotiations, protest,
administrative hearing/appeals process, analysis of new tax/fee programs and assisting in
program implementation, as well as revenue analysis and reports.
• Training may include RRG providing both classroom and experiential
training for Town employees in the focus areas of sales and use tax,
construction use tax, motor vehicle use tax, accommodations,
occupational privilege tax, and various other revenues and topics as
determined by Town.
• Taxpayer education may include development of taxpayer education
collateral materials including brochures, booklets, and providing
presentations and/or courses designed to assist the taxpayer in
gaining a broader understanding of their potential obligations.
Prior to any engagement, Town and RRG will formalize a Scope of Work, attached as Exhibit
A-_1, and identify primary and secondary employees and representatives that will manage the
project, timelines, expectations, requirements, and estimated costs.
The per hour billing rates for the personnel of RRG shall be submitted in a separate proposal
to Town. Said proposal shall be attached to this Contract as Exhibit A-1.
Reimbursement of Costs. All reasonable costs associated with travel (including airfare, rental
car, mileage, and meals) and upon the Town's prior approval, all direct costs incurred by RRG,
including office supplies, artwork, printing, postage, etc. are deemed to be fully reimbursable
costs by the Town, based upon presentation of sales invoicing/receipts.
5
Exhibit A-1 - Proposal and Scope of Work
Exhibit B - Construction Administration Program
The Construction Administration Program may include, but is not limited to, the provision of
technical assistance and staff support in the development and implementation of systems to
identify, record, track and provide on-going analysis of construction permits and associated use
tax deposits and obligations through to the completion of the projects to ensure all appropriate
taxes/fees have been appropriately paid to Town.
A. Responsibilities of RRG.
Proactive communications with the General Contractors relating to the Town's
requirements to remit Building Construction Use Tax on all materials purchased for use
in constructing a building or residence in the Town.
o These communications include letters, emails and telephone calls, informing
the General Contractors of their responsibilities and the Town's intention to
reconcile or audit the records on the project to determine the use tax liability.
2. Educational materials will be provided to guide the General Contractor through the
process of record keeping and retention throughout the project.
o The General Contractor will receive a listing of records that must be kept
throughout the project to assist in the timely reconciliation/audit of the project,
and copies of the Town's Ordinance that supports this requirement.
o Assistance will be offered to the General Contractor at any time throughout the
project when questions of taxability occur.
3. A mechanism is established to facilitate the reconciliation of the deposit paid at the time
the permit was issued to the actual materials purchased.
o RRG will provide a mechanism to the General Contractor to perform a self-
audit, reconciliation, or audit as deemed appropriate by the Town. That
mechanism will include forms, affidavits, ExcelTM worksheets, and instructions
for completion.
4. Guidelines and parameters are established by the Town specific to their program.
o The Town will be working closely with RRG to establish the project and cost
parameters for each of the levels established. Those parameters will include:
- Permits that will receive a letter at the time the permit is issued, and one
requesting a self-audit at the time the Certificate of Occupancy is issued.
- Permits that will receive a letter at the time the permit is issued, and one
requiring that reconciliation is performed and reviewed by RRG at the
time the Certificate of Occupancy is issued.
Permits that will receive a letter at the time the permit is issued, and one
requiring an audit of all records at the completion of the project.
7
Exhibit B - Construction Administration Program (Con't)
5. RRG will provide monthly reports to Town detailing program activities and will establish
and maintain a database of all permits issued, certificates of occupancy (C.O.) issued
and audit activities performed for each permit.
6. RRG will provide Town summary reports on each permit at completion of the process.
The report will either be a self-audit, reconciliation, or audit report. Included with the
report will be a summary of all communications with the General Contractor, copies of
emails, faxes, etc.
7. RRG will provide education and assistance to Town and Contractors regarding the
construction use tax administrative program and associated obligations.
8. RRG will bill costs/fees to Town as follows:
Administrative fee for permit letters will be invoiced at the time the initial permit
letter is issued and fees are due to RRG within 180 days from date of invoice.
Audit costs and fees are due to RRG within 180 days from the date of invoice.
9. If requested by the Town, RRG will provide assistance in negotiation of settlements or
compromises, although it is understood that RRG shall have no authority to approve any
such settlements or compromises on the Town's behalf.
10. RRG auditors will be available as required to defend audit assessments in the event of
negotiations, protests, informal hearings, and litigation at the individual Town audit rate
and reasonable travel expense. If RRG management assumes a consultation role
and/or provides administrative support to the Town in a negotiation, protest, informal
.
hearing, or litigation, Town will pay RRG the established hourly consulting rate plus
reasonable travel costs.
o If requested by the Town, RRG will provide assistance in reviewing a taxpayer's
request for a refund of taxes or fees paid to the Town, including verification of the
accuracy of the refund request, adjustments to the proposed refund amount, audit
of all open periods of the taxpayer, and determination and adjustment for any
additional taxes or fees owed to the Town at the individual Town audit rate
(Reference Exhibit C).
B. Responsibilities of Town.
1. Town is responsible for collecting all assessments including tax due, penalty and
interest.
2. Not later than the 15th day of each month, Town is responsible to provide RRG a listing
of permits and certificates of occupancy and determination of action to be taken.
8
Exhibit B - Construction Administration Program (con't)
3. On a monthly basis, Town is responsible to provide RRG with a listing of General
Contractors and licensed subcontractors performing work in the Town, which list shall
include contact addresses and phone numbers.
4. Town shall cooperate with RRG in completing its services, and shall promptly provide
such information as is in its possession and as is reasonably necessary for RRG's work
under this Agreement.
5. The Town shall timely notify RRG of administrative procedures required to be followed by
RRG.
6. The Town's designated representative, on whose instructions and directions RRG may
rely for the purposes of this Agreement, is the following or such other person as the Town
may designate in writing:
7. The Town shall make its copying facilities available to RRG at no cost for making copies of
work papers, reports and other similar documents generated by RRG in performing
services hereunder.
8. The Town shall make its Town Attorney reasonably available to RRG for the purpose of
inquiry concerning the application of the Town's ordinances and other laws.
9. The Town acknowledges that RRG shall not be expected to provide legal support, which
may be needed to pursue an assessment. RRG shall attend taxpayer conferences,
negotiations, and hearings concerning the assessment as requested by Town at the
individual Town audit rate and reasonable travel costs.
10. Town agrees to provide RRG with a letter of authorization for the purpose of presentation
to taxpayers(s), sufficient to permit the access by RRG to the records and documentation
of such taxpayer(s). Town agrees to expedite its authorization, and to perform all acts
necessary to compel cooperation by the taxpayer(s), when necessary. Once authorized,
Town agrees that RRG shall have full authority and power to contact taxpayers for the
purpose of auditing all relevant records and documentation, which authority and power
shall not be withdrawn until the auditing services of RRG have been concluded. Town
agrees to allow access by RRG to the information and data available to Town through its
reciprocity arrangements with other taxing jurisdictions for the purpose of determining the
existence of delinquent taxes, or untaxed transactions. This access by RRG shall be
subject to any limitations imposed by written agreements with other taxing jurisdictions,
which may restrict the information that may be shared by Town with RRG. Town
acknowledges that RRG performs its service for a number of other taxing jurisdictions, and
consents to RRG obtaining information from taxpayers in connection with simultaneous
audits for more than one taxing jurisdiction.
9
Exhibit B - Construction Administration Program (con't)
C. Fees and Expenses.
RRG Colorado
Building Construction Use Tax Program
Pre-audit Services Includes:
(1) Permit Letter with attachments
- Attachments include letter of authorization, section of the
municipal code, listing of documents to be kept on file.
(2) Database Management & Reporting
Cost
$89/permit
(Includes 2
and 3 below)
At some point in time between the issuance of a permit and approval of a
certificate of occupancy, the Town will make a determination of the specific review
to take place (e.g. reconciliation/audit).
(3) Review:
- Certificate of Occupancy letter with attachments - Self-
Audit
- Certificate of Occupancy letter with attachments -
Reconciliation
- Certificate of Occupancy letter with attachments - Audit
Reconciliation:
- Includes maximum of 5 hours discovery & review of
support documentation $75/hr.
Audit:
- Includes coordinating sub-contractor affidavits and
100% project cost/invoice review. $75/hr.
10
Exhibit B - Construction Administration Program (con't)
Program Notes:
1. The Town will provide RRG a listing of all permits issued on a monthly basis.
2. The Town will provide RRG with a listing of all Certificates of Occupancy (CO's) issued on a monthly basis.
3. A reconciliation is the process by which the General Contractor (small jobs) or RRG review summary
documentation (Job Cost Ledger) and perform a reconciliation of deposit to actual on all reconciliations.
RRG will review the information provided and supply the Town with a report.
4. An audit would involve solicitation of subcontractor affidavits, review of invoices for purchases, and
verification of all information provided to the Job Cost Ledger/AIA certification.
5. RRG will provide the Town with a monthly report detailing the status of the program.
6. Town is responsible for all reasonable travel costs approved by Town.
Prior -to.institutin-wthe program, the Towmdetermines the following:
1. Audit: levels - What threshold does the Town require fora permit to be audited?
2. Reconciliation levels - What thresholds' will the'Town require for reconciliation? The Town must determine
whether it is :allowable for the General Contractor to reconcile the deposit made with the actual materials
purchased on some permits, e.g..remodels small:additions, garages, etc.
3. Acceptable sampling forconstruction audits, e.g: one of each model fora large: residential
Project and representative invoices on large projects.
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Exhibit C - Audit Services
A. Responsibilities of RRG.
1. RRG will render auditing services - and other related services with regard to the following
taxes and/or fees:
Sales and use tax
Construction use.tax
Motor vehicle use tax
Occupational privilege tax / Head tax
Accommodations or lodging tax 711
Admissions taxes / Seat Tax
Alcohol / Tobacco tax
Franchise fees
Other: To be determined by Town
2. The specific services to be provided by RRG hereunder shall be as follows:
a. Assistance as requested by the Town in establishing criteria for the selection of
taxpayers to be audited, selecting the taxpayers to be audited, and identifying
acceptable methodologies for the audit;
b. Identification of the specific taxes and/or fees to which the audit will apply;
c. Audit planning, including the contacting of each taxpayer to be audited and
scheduling of each audit;
d. Identifying and obtaining the taxpayer records to be reviewed in conducting the
audit;
e. Conducting testing, searching for unrecorded transactions or disbursements,
examining expense accounts, examining fixed assets, or otherwise performing such
other audit procedures as determined necessary or appropriate by the Town and
RRG;
f. Preparing audit summaries and work papers, assessments, and such other
documents as requested by the Town;
g. Attendance, as requested by the Town, during conferences, negotiations, and
hearings concerning the audit;
h. If requested by theTown, assistance in negotiation of settlements or compromises,
although it is understood that RRG shall have no authority to approve any such
settlements or compromises on the Town's behalf;
i. If requested by theTown, assistance in reviewing a taxpayer's request for a refund
of taxes or fees paid to theTown, including verification of the accuracy of the refund
request, adjustments to the proposed refund amount, audit of all open periods of the
taxpayer, and determination and adjustment for any additional taxes or fees owed to
the Town.
12
Exhibit C - Audit Services (con't)
j. Collection assistance, as requested by the Town; and
k. Related matters as agreed to by Town and RRG.
3. RRG's auditing services will be considered substantially complete upon determination of
delinquent taxes, penalties, and/or interest, and disclosure of the same to theTown. Town
acknowledges that RRG will incur substantial expense, and assume substantial risk, in
connection with the rendition of its auditing services, due to the amount of time and effort
in discovery, auditing, consulting, and research.
4. RRG shall not initiate any audit or contact any taxpayer for the purpose of conducting an
audit for Town unless Town has authorized such action in writing.
5. Upon request by the Town, RRG shall provide to the Town a copy of all correspondence
between RRG and any taxpayer selected for an audit, as well as all other records or
papers pertinent to such audit.
B. Responsibilities of Town.
Town shall cooperate with RRG in completing its services, and shall provide such
information as is in its possession and as is reasonably necessary for RRG's work
under this Agreement.
2. The Town shall notify RRG of administrative procedures required to be followed by RRG.
3. The Town's designated representative, on whose instructions and directions RRG may
rely for the purposes of this Agreement, is the following or such other person as the Town
may designate in writing:
4. The Town shall make its copying facilities available to RRG at no cost for making copies of
work papers, reports and other similar documents generated by RRG in performing
services hereunder.
5. The Town shall make its Town Attorney reasonably available to RRG for the purpose of
inquiry concerning the application of the Town's ordinances and other laws applicable to
the audit.
6. The Town acknowledges that RRG shall not be expected to provide legal support, which
may be needed to pursue an assessment, other than attendance at conferences,
negotiations, and hearings concerning the assessment as requested by Town.
13
7. If RRG has initiated services prior to the date of the Town's notice of termination of the
Agreement, then, in such event, RRG may continue such services and shall receive its
compensation.
Exhibit C - Audit Services (con't)
8. Town agrees to provide RRG with a letter of authorization for the purpose of presentation
to taxpayers(s), sufficient to permit the access by RRG to the records and documentation
of such taxpayer(s). Town agrees to expedite its authorization, and to perform all acts
necessary to compel cooperation by the taxpayer(s), when necessary. Once authorized,
Town agrees that RRG shall have full authority and power to contact taxpayers for the
purpose of auditing all relevant records and documentation, which authority and power
shall not be withdrawn until the auditing services of RRG have been concluded. Town
agrees to allow access by RRG to the information and data available to Town through its
reciprocity arrangements with other taxing jurisdictions for the purpose of determining the
existence of delinquent taxes, or untaxed transactions. This access by RRG shall be
subject to any limitations imposed by written agreements with other taxing jurisdictions,
which may restrict the information that may be shared by Town with RRG. Town
acknowledges that RRG performs its service for a number of other taxing jurisdictions, and
consents to RRG obtaining information from taxpayers in connection with simultaneous
audits for more than one taxing jurisdiction.
C. Fees and Expenses.
The per hour billing rates for the personnel of RRG shall be as follows and shall depend upon the
number of Cities or Counties (Taxing Jurisdictions) which authorize and participate on a particular
audit:
Number of Taxing Jurisdictions Group Rate
1 $75
2-3 $129
4-6 $149
7-8 $179
9+ $199
A Taxing Jurisdiction will be dropped from the group if the auditor determines there is no
activity within the jurisdiction during the "Discovery Phase" of the audit. This determination is
based on the auditor's judgment. In the event that an auditor determines the taxing jurisdiction
should transition into the post discovery "Audit phase", the auditor must document justification
for leaving the taxing jurisdiction in the audit beyond the "Discovery phase." Taxing
Jurisdictions who are dropped will be removed from the group rate calculation, and will pay a
"Discovery Phase" rate of $59 per hour, not to exceed five hours.
All participating jurisdictions will pay their prorated share of. the audit expenses based on the
audit hours allocated. Audit hours will be allocated based on actual assessments except for
jurisdictions which are dropped from the audit. For these jurisdictions hours will be determined
by actual work done, not to exceed five (5) hours. In the event subsequent audit trips are
needed to complete the audit and these trips begin after a Taxing Jurisdiction is dropped, the
dropped Taxing Jurisdiction would not participate in these subsequent trip expenses.
The group hourly rate will be adjusted as Taxing Jurisdictions are dropped off. The group
hourly rate will be determined by the taxing Jurisdictions remaining at that point in time.
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RRG shall submit to the Taxing Jurisdiction an invoice, following completion of an audit.
Invoice is payable 180 days from date of invoice.
15
Exhibit C - Audit Services (con't)
Example 1 This example consists of 10 agencies that were discovered to have a liability
and where audits were performed.
% of # of
Agency # Assessment Total Hours Rate Fees Expenses Total Cost
1
$10,000
10%
11
$199
$2,189
$90
$2,279
2
3,000
3%
3
199
597
27
624
3
4,000
4%
4
199
796
36
832
4
5,000
5%
6
199
1,194
45
1,239
5
10,000
10%
11
199
2,189
90
2,279
6
13,000
13%
14
199
2,786
117
2,903
7
15,000
15%
17
199
3,383
135
3,518
8
20,000
20%
22
199
4,378
180
4,558
9
10,000
10%
11
199
2,189
90
2,279
10
10,000
10%
11
199
2,189
90
2,279
$100,000
110
$21,890
$900
$22,790
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Exhibit C a Audit Services (con't)
Example 2 Example: Two of the agencies were dropped from the audit dare to lack o9
Viability determined through the Discovery Phase. Since two cities have nova
dropped out of the audit hours, the rate / hour is reduced to $179.00. (Reference
Addendum Exhibit A)
%
of
% of
Total
Agency #
Assessment
of Total
Hours
Total
Rate
Fees
Expenses
Cost
('1)
(2)
(3)
1
$ -
0%
2
2.15%
$59
$118
$19
$137
2
3,000
3%
2.64
2.84%
179
473
26
498
3
4,000
4%
3.52
3.78%
179
630
34
664
4
5,000
5%
4.40
4.73%
179
788
43
830
5
10,000
10%
8.80
9.46%
179
1,575
85
1,660
6
13,000
13%
11.44
12.30%
179
2,048
111
2,158
7
15,000
15%
13.20
14.19%
179
2,363
128
2,491
8
20,000
20%
17.60
18.92%
179
3,150
170
3,321
9
30,000
30%
26.40
28.39%
179
4,726
255
4,981
10
-
0%
3
3.23%
59
177
29
206
$100,000
100%
93
100.00%
$16,047
$900
$16,947
(1) Hours are calculated as follows: (88 audit -hours _plus 5 hours of discovery)
Agencies with an assessment are charged the number of hours as a % of total audit hours
equal to the % of total assessment.
For example: Agency #2 has 3 of the total assessment.
Three percent of the total audit hours (88 hrs - 2.64 hours.
(2) Fees are calculated as follows:
Agencies with no assessment are charged the number of hours X $59/hr.
* Agencies; with an assessment are charged the number of hours X $179/hr. group rate.
For example: Agency #2 is apportioned 2.64 hours at $179/hr. = $472.56,
rounded to the nearest dollar for this example.
(3) Expenses are calculated as follows:
For example Agency #1 has 2 hours, or 2.15`; of the Total Hours. Total
Expenses of $900 X 2.15'~Q = $19.35 rounded to the nearest dollar, or $19.
Another example is Agency #2 has 2.64 hours, or 2.84% of the Total Hours.
Total Expenses of $900 X 2.84% = $25.56 rounded to the nearest dollar, or $26.
17
REVENUE RECOVERY GROUP, INC.
CLIENT USER'S GROUP
AGENDA
"Hands-On Working Session"
THURSDAY, JULY 29, 2004
9:00 a.m. -1:30 p.m.
9:00 - 9:15 RRG Update -
Jacque Wedding-Scott
9:15 - 10:30 Data Base - Roxy Huber & Sue Moorman
Audit Inventory for Texas and California
This discussion will require each agency to review the
database, and make specific recommendations to the
Group for coordinated audit.
10:30 - 10:45 Break
10:45 -11:15 Issues for Discussion and Group Decisions -
Jacque Wedding-Scott
o Blanket Confidentiality Agreements
o Blanket Letter of Authorization
o User Group Needs
11:15 -11:45 RRG Roles - Karen Stickland/ JW-S
o Legal challenges
o Protest Processes and templates
11:45 - 12:30 Box Lunch (Sponsored by RRG)
12:30 - 1:30 What's New & What's Next?
LOCATION: CITY & COUNTY OF BROOMFIELD
1 DES COMBES DRIVE
BROOMFIELD, CO 80020
(303) 464-5819
BAIL SWAN CONFERENCE ROOM
(TAKE THE ELEVATOR TO THE BASEMENT)
Memo
To: Honorable Mayor and Town Council
Thru: Larry Brooks, Town Manager
From: Scott Wright, Finance Director
Date: August 19, 2004
Re: Contract with Revenue Recovery Group
Summary:
At the last Council worksession, Council gave staff authorization to proceed with the sales tax
audit program by entering into an agreement with Revenue Recovery Group (RRG) for
auditing services.
Upon the signing of this agreement, staff will meet with RRG to developed the Town's audit
program and estimated costs/revenues for late 2004 and 2005. No audit fees will be incurred
until such time that individual audits are selected and the process begun.
Town Manager Comments:
Attachments:
Agreement with Revenue Recovery Group
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