CC MEETING: June 6, 2023
DATE: May 9, 2023
TO: Erin Rinehart, City Manager
FROM: Melissa Everett, Finance Director
Diana Vaughn, Chief Financial Officer
Title
Consider A Resolution Authorizing The City Manager To Enter Into A Contract With FORVIS, LLP For Independent Auditing Services In An Amount Not to Exceed $143,500.
Body
BACKGROUND:
On May 4, 2021, a proposed fee commitment schedule was signed with BKD LLP for the Financial Statement Audit in Accordance with Government Auditing Standards and Compliance Audit in Accordance with Uniform Guidance. In 2022, BKD, LLP merged with Dixon Hughes Goodman (DHG) and became the new firm FORVIS, LLP. The original contract included a three-year commitment with two additional year-long extension options.
The proposed fee amount for fiscal year 2023 is $117,500 and is based on testing one major federal program. If required, fees for additional major programs are $8,000 each. Fees based on time expended for new auditing and accounting standards are not included in the standard engagement fee. These fees are estimated to range between $6,000 and $18,000. As such, approval for an additional $18,000 for fees related to new accounting and auditing standards are 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 2023 audit are $117,500 in base fees, an additional $8,000 contingency for additional federal program testing, and $18,000 for fees related to new accounting and auditing standards.
STAFF RECOMMENDATION/ACTION DESIRED:
Consider approving the attached resolution appointing FORVIS LLP as the City’s Independent Auditors and authorizing the City Manager to enter into a contract with FORVIS LLP for independent auditing services for an amount not to exceed $143,500.