Loading...
HomeMy WebLinkAboutItem 3k - Financial Auditing Services_ c STAFF REPORT Administrative Services Department DATE: June 3, 2014 TO: Mayor and City Council FROM: Hue C. Quach, Administrative Services Director Shannon Huang, Financial Services Manager /City Treasurer SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH PUN & MCGEADY, LLP FOR THE CITY'S FINANCIAL AUDITING SERVICE IN THE AMOUNT OF $38,400 Recommendation: Approve SUMMARY In 2010, the City Council approved an auditing service agreement including a four year renewal option with Caporicci & Larson, and the City's auditing agreement was transferred to Pun & McGeady, LLP in 2012. 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 Fiscal Year ending June 30, 2014. DISCUSSION The City Charter requires an annual audit of the City's financial statements by an independent Certified Public Accountant. In March of 2010, proposals were solicited 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 awarded with the auditing agreement for Fiscal Year 2009 -10, including four (4) one -year 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 assumed the contractual right to the City's auditing agreement. With City Council's approval, Pun & McGeady, LLP was retained to complete the auditing services for Professional Services Agreement with Pun & McGeady for City Financial Auditing Service for the fiscal year Ending June 30, 2014 June 3, 2014 Page 2 of 2 Fiscal Years 2011 -12 and 2012 -13. Staff has not encountered any issues with the firm and is satisfied with their services. This will be the last year of audit services with Pun & McGeady under the current term of agreement. A Request for Proposal process will be initiated during the 2014 -15 Fiscal Year to select an auditor for future auditing services. FISCAL IMPACT The annual auditing agreement cost with Pun & McGeady, LLP is $38,400 and has been allocated to be funded as follows: General Fund - $29,950, Arcadia Transit Funds - $1,540, and the Successor Agency - $6,910. These funds have been budgeted in the proposed FY 2014 -15 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 with Pun & McGeady, LLP for the City's Financial Auditing Service in the amount of $38,400 for Fiscal Year ending June 30, 2014. Approved: Dominic Lazzareftd City Manager