HomeMy WebLinkAboutItem 2e: Agreement with Caporicci & Larson for City's Financial Auditing Services for FY 10-11 •
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c$`oRATE� S TAFF REPORT
Administrative Services Department
DATE: June 7, 2011
TO: Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
Shannon Huang, Financial Services Manager /City Treasurer - -iv
SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT IN THE AMOUNT OF $30,830 WITH
CAPORICCI & LARSON FOR THE CITY'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 City Manager exercise the option to renew the
professional services agreement with Caporicci & Larson for City'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 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 City to not extend
the agreement, should the City Council want to make a change.
Caporicci & Larson has satisfactorily completed the audits in the past. As a result, staff
is recommending that the City Manager exercise the option to renew the professional
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services agreement with Caporicci & Larson for City audit services for the fiscal year
ending June 30, 2011. The cost proposed for audit services is $30,830. 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 City Manager to execute a Professional Services Agreement
with Caporicci & Larson for the City's financial auditing services for the
fiscal year ending June 30, 2011.
Approved by: r
Don Penman, City Manager
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