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HomeMy WebLinkAboutItem 2b: Agreement with Caporicci & Larson for Redevelopment Agency Auditing Services for FY 10-11 �� STAFF REPORT Arcadia Redevelopment Agency DATE: June 7, 2011 TO: Chairperson and Agency Board FROM: Hue C. Quach, Administrative Services Director Shannon Huang, Financial Services Manager /City Tr surer SUBJECT: AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $6,770 WITH CAPORICCI & LARSON FOR THE AGENCY'S FINANCIAL AUDITING SERVICES FOR THE FISCAL YEAR ENDING JUNE 30, 2011 Recommendation: Approve SUMMARY Staff solicited proposals for independent auditor services for the fiscal year ending June 30, 2010, with the option to renew the agreement for four (4) subsequent fiscal years. Caporicci & Larson has satisfactorily completed the audit for fiscal year 2009 -10. As a result, staff is recommending that the Executive Director exercise the option to renew the professional services agreement with Caporicci & Larson for the Agency's audit services for the fiscal year ending June 30, 2011. DISCUSSION The City Charter requires an annual audit of the City's financial statements by an independent certified public accountant (CPA). Caporicci & Larson was selected through a RFP process in 2005 and had performed the auditing services for the City and the Agency from 2005 to 2009. In March of 2010, staff again solicited proposals from qualified certified public accounting firms to audit the City's and the Agency's financial statements for the fiscal year ending June 30, 2010 through June 30, 2014. Among the nine proposals received, Caporicci & Larson was the lowest bidder and was granted with the auditing contract for fiscal year 2009 -10, including four (4) one -year contract extensions. This is a typical provision in audit service agreements, which provides for some continuity for a period of time, but it is not open- ended, and allows the Agency to not extend the agreement, should the Agency Board want to make a change. Caporicci & Larson has satisfactorily completed the audits in the past. As a result, staff is recommending that the Executive Director exercise the option to renew the 1 professional services agreement with Caporicci & Larson for the Agency's audit services for the fiscal year ending June 30, 2011. The cost proposed for audit services is $6,770. There is no increase in audit fees for the first three years of the contract. FISCAL IMPACT Sufficient funds are budgeted in the proposed 2011 -12 budget. RECOMMENDATION Authorize the Executive Director to execute a Professional Services Agreement with Caporicci & Larson for the Agency's financial auditing services for the fiscal year ending June 30, 2011. Approved by: , e,-, Don Penman, Executive Director 2