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HomeMy WebLinkAboutItem 2g - Contract for City's Financial Auditing Service_ c STAFF REPORT Administrative Services Department DATE: June 4, 2013 TO: Mayor and City Council FROM: Hue C. Quach, Administrative Services Director Shannon Huang, Financial Services Manager /City Treasurer SUBJECT: AUTHORIZE AND DIRECT THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $38,400 WITH PUN & MCGEADY, LLP FOR THE CITY'S FINANCIAL AUDITING SERVICE FOR THE FISCAL YEAR ENDING JUNE 30, 2013 Recommendation: Approve SUMMARY In 2010, the City Council approved an auditing service contract including a four year renewal option with Caporicci & Larson, which was selected through a Request for Proposal (RFP) process. The City's auditing contract was transferred to Pun & McGeady, LLP in 2012, and the same Managing Partner who has been responsible for the City's audit since the inception of this agreement has retained the contract. Staff is satisfied with the services provided for the last fiscal year. It is recommended that the City exercise the option to renew the auditing services agreement with Pun & McGeady for the fiscal year ending June 30, 2013. DISCUSSION The City Charter requires an annual audit of the City's financial statements by an independent Certified Public Accountant. In March of 2010, staff solicited proposals from qualified certified public accounting firms to audit the City's financial statements for fiscal years 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 extension options. This is a typical provision in audit service agreements, which provides for continuity for a period of time, but also allows the City to not extend the agreement should the City Council decide to change auditing firms. In 2012, the City was notified that the auditing partner who has been responsible for the City's engagement since 2009 has started his own firm, Pun & McGeady, LLP, and had Professional Services Agreement with Pun & McGeady for City Financial Auditing Service for the fiscal year Ending June 30, 2013 June 4, 2013 Page 2 of 2 assumed the contractual right to the City's auditing contract. With City Council's approval, Pun & McGeady, LLP was retained to complete the auditing services for fiscal year 2011 -12. Staff has not encountered any issues with them, and is satisfied with their services. It is recommended that the City Council approve the one year contract with Pun & McGeady, LLP for the fiscal year ending June 30, 2013, at the cost of $38,400. FISCAL IMPACT The annual auditing contract cost with Pun & McGeady, LLP is $38,400 and allocated to be funded by: General Fund - $29,952, Arcadia Transit - $1,536, and the Successor Agency - $6,912. These funds have been budgeted in the proposed FY 2013 -14 Operating Budget for this obligation. RECOMMENDATION It is recommended that the City Council authorize and direct the City Manager to execute a Professional Services Agreement in the amount of $38,400 with Pun & McGeady, LLP for the City's Financial Auditing Service for the Fiscal Year ending June 30, 2013. Approved: Dominic LazzareW City Manager