Loading...
HomeMy WebLinkAboutAGENDA REPORT 1999 0505 CC REG ITEM 10LFROM: DATE: MOORPARK CITY COUNCIL AGENDA REPORT Honorable City Council ITEM I®' L- • CITE' OF MOORFARR, CALIFORNIA City Council Meeting of 5 "5- &l ACTION: i p r ' , John E. Nowak, Assistant City Manager 4: 26 April 1999 (Council meeting of 05- 05 -99) SUBJECT: Consider Approval of a Service Agreement for Independent Audit Services BACKGROUND: The City of Moorpark has used the firm of KPMG -Peat Marwick LLP as its independent auditors since 1992. Since the City is now expending sufficient federal funds each fiscal year that conducting a "Single Audit" is required, federal regulations require that a competitive selection be conducted to select an audit firm. DISCUSSION: Since 1992 the firm of KPMG Peat Marwick, LLP has been conducting the annual financial report for the City of Moorpark and the Moorpark Redevelopment Agency. The City is required to also conduct a "Single Audit" under federal regulations due to the amount of annual expenditures of federal funds. CDBG funds are used to pay for this audit. Federal regulations require that a competitive selection be conducted every three years for professional services paid for with federal funds. In April staff issued a Request for Proposal for Audit Services beginning with the audit of fiscal year 1998/99. Thirty -five proposals were mailed to various accounting firms that conduct municipal audits in southern California. Six proposals were received as of the submittal deadline of April 23. Staff is reviewing the proposals and will be conducting interviews on April 30. A complete report and recommendation will be presented to the City Council prior to its May 5 meeting. Audit firm selection Meeting of 05 May 1999 Page 02 Council is being requested to award a Service Agreement at this meeting to provide for sufficient time for the selected firm to prepare for the audit work and be completed by December 1, 1999. It is critical for the audit to be finalized on this date since the City is switching accounting software and computer system and the contract for the old systems will expire on December 31, 1999. Accounts will need to have final balance adjustments made based on the audit and transferred to the new system before the end of the year. Delays in selecting a new audit firm will require additional expenditures to extend the contracts for the current accounting software and computer. A supplemental report will be distributed to the City Council on May 3, 1999 with a recommendation for selection of a specific firm. TO: FROM: FR: ITEM 10 . L.. MOORPARK CITY COUNCIL AGENDA REPORT Honorable City Council John E. Nowak, Assistant City Manager.) 26 April 1999 (Council meeting of 05- 05 -99) SUBJECT: Consider Approval of a Service Agreement with Vavrinek, Trine, Day & Co., LLP for Independent Audit Services. DISCUSSION: In response to a Request for Proposal, six (6) firms submitted proposals to provide audit services for the City of Moorpark and the Moorpark Redevelopment Agency. The proposals included costs for performing three (3) annual audits, the City, the Redevelopment Agency and a single audit for federal funds, and to assist the City in obtaining a GFOA certification. The submittals were: Audits Certification Vavrinek , Trine, Day & Co. $23,620 $2,250 Moss, Levy & Hartzheim $19,989 NC Conrad & Associates $24,000 NC Terry E. Krieg, CPA $26,000 $3,600 Thomas, Bigbie & Smith $21,500 $3,000 Brown Armstrong $25,900 $4,200 The finance staff reviewed all six proposals and selected three for interviews on the basis of compliance with the requirements of the Request for Proposal, experience with similar size and type of agencies, and ability to meet scheduling requirements. Three firms were selected to be interviewed: Vavrinek, Trine, Day & Co., Thomas, Bigbie & Smith, and Conrad and Associates. The firms were interviewed on April 30 by the finance staff and references were contacted. Audit Services Meeting of 05 May 1999 Page 02 Staff recommends the firm of Vavrinek, Trine, Day & Co., LLP be appointed as the City of Moorpark and Moorpark Redevelopment Agency independent auditors for the fiscal year 1998/99. The basis for its recommendation is (1) the firm's extensive experience with cities of similar size and with contract cities; (2) the consultant support that is available to the City to address accounting issues that arise during the year; (3) greater staff report dedicated to the interim and field audits; (4) employees with the firm who have direct municipal finance experience; and (5) the stability of principals assigned to the city over a number of years. The total cost is $23,620 for the audit services (City, Agency and Single Audit) and $2,250 for the certification assistance. This is approximately $2,000 less for audit services than last year's audit cost. The Service Agreement would be for one year with two additional one - year extensions possible at the City's discretion. The fee for subsequent years would be negotiated as has been past practice. Copies of all proposals are available for Council's review at the Council office. RECOMMENDATION: Staff recommends the City Council approve a Service Agreement with the firm of Vavrinek, Trine, Day & Co., LLP in the amount of $25,870 for audit services and assistance with GFOA certification, and authorize the City Manager to sign the Agreement on behalf of the City.