CC MEETING: July 12, 2016
DATE: June 20, 2016
TO: Leonard Martin, City Manager
FROM: Bob Scott, Assistant City Manager
Title
Consider A Resolution Authorizing The City Manager To Enter Into A Contract With Grant Thornton LLP For Independent Auditing Services In An Amount Not to Exceed $108,770.
Body
BACKGROUND:
A Request for Proposals (RFP) for independent auditing services was distributed in April 2016. Proposals were received from seven firms. The Finance/Audit Committee members selected two firms as top finalists and have completed interviews of these firms. The recommendation of the committee is to re-appoint our current audit firm, Grant Thornton LLP. This new contract is for an initial three year period with the City having the option to extend for an additional two years.
The base fee for the fiscal year 2016 audit is $100,770. 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 possible that the City will have more than one major program in fiscal year 2016. 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 2016 audit are $100,770 plus an $8,000 contingency for additional Single Audit related fees.
STAFF RECOMMENDATION/ACTION DESIRED:
Approve the attached resolution appointing GT as the City’s Independent Auditors and authorizing the City Manager to enter in a contract with GT for independent auditing services for the fiscal year 2016 financial statements for an amount not to exceed $108,770.