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