CC MEETING: June 9, 2020
DATE: June 2, 2020
TO: Erin Rinehart, City Manager
FROM: Bob Scott, Assistant City Manager and Chief Financial Officer
Title
Consider A Resolution Authorizing The City Manager To Enter Into A Contract With BKD LLP For Independent Auditing Services In An Amount Not to Exceed $121,000.00.
Body
BACKGROUND:
On July 12, 2016, Grant Thornton LLP was re-appointed as the City’s independent auditors for up to 5 years. However, in April 2020, Grant Thornton transitioned their auditing services in Texas to the auditing firm BKD, LLP (BKD). The new audit firm BKD has agreed to honor all pricing and service levels in the Grant Thornton proposal.
The base fee for the fiscal year 2020 audit is $113,000. This base audit fee assumes the City will have only one major grant program for Single Audit test work. The audit fees for additional major programs are $8,000 per program. It is likely that the City will have more than one major program in fiscal year 2020 due to Cares Funding. As such, approval for an additional $8,000 contingency is included in the requested approval amount.
FINANCIAL IMPLICATIONS:
The services covered by this contract will be from funding in the Administrative Services Internal Service Fund. The audit fees for fiscal year 2020 Audit are $113,000, plus an $8,000 contingency for additional Single Audit related fees.
STAFF RECOMMENDATION/ACTION DESIRED:
Approve the attached resolution appointing BKD, LLP as the City’s Independent Auditors and authorizing the City Manager to enter in a contract with BKD for independent auditing services for the fiscal year 2020 financial statements for an amount not to exceed $121,000.00.
Attachment: Resolution