HomeMy WebLinkAboutAGENDA REPORT 2012 0606 CC REG ITEM 10I ITEM 10.1.
nity Council i0eeting
MOORPARK CITY COUNCIL k4CYa N:
AGENDA REPORT Ju
TO: Honorable City Council
FROM: Ron Ahlers, Finance Director62A-----'
DATE: May 15, 2012 (City Council meeting of June 6, 2012)
SUBJECT: Consider Increase in Fees for Audit Fiscal Year (FY) 2010111 and
Authorize the City Manager to Execute Amendment No. 3 to the
Agreement for Independent Auditing Services
BACKGROUND
The City's external auditors, Teaman, Ramirez and Smith (TRS) have requested an
increase in their fees by $2,500 for the FY 2010/11 audit work. The cause of the fee
increase is due to the Single Audit.
DISCUSSION
The City received the final invoice from TRS for fiscal year 2010/11 audit fees. The
services received and the amounts charged are in line with the amended agreement we
signed except for one item. The "Not to Exceed Amount" on the contract for Single
Audit and Related Reports was $2,800, assuming ONE major program as defined in
OMB Circulation A-133. In fiscal year 2010/11 the City reported two major programs.
The TRS contract did not include the cost for an additional program. The two programs
were: the 8C funds for the purchase of three buses in the amount of $1,405,510, and
the ARRA highway construction grant funds for the Mountain Trail/Spring overlay
project in the amount of $617,750. TRS has billed $2,500 extra for this one additional
major program audit. This fee is reasonable considering the amount of work involved in
the Single Audit.
FISCAL IMPACT
The request is for $2,500. This would bring the total fees for the audit for FY 2010/11 to
$37,900. No appropriation is necessary because there are sufficient funds budgeted in
the Finance Department.
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Honorable City Council
June 6, 2012
Page 2
STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED)
Approve the increase of the all-inclusive audit fee by $2,500 for fiscal year ending June
30, 2011 to include two (2) major programs in the Single Audit and related Reports; and
authorize the City Manager to execute the Amendment No. 3, subject to the final
language approval by the City Manager and City Attorney.
Attachments: -
1. TRS Invoice No. 5055-56292
2. Draft Amendment No. 3 to the Agreement between the City of
Moorpark and Teaman, Ramirez & Smith Inc., Certified Public
Accountants for Independent Auditing Services
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Attachment 1
Teaman, Ramirez & Smith
Certified Public Accountants
Invoice#5055 56292
February 20,2012
Ron Ahlers, Finance Director
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
SERVICES RENDERED:
Accounting services and technical support rendered relative to the annual audit of the
books and records of the City and Redevelopment Agency for the year ended June 30, 2011,
pursuant to Government Auditing Standards issued by the U. S. General Accounting Office and
the Single Audit Act Amendments of 1996 and OMB A-133, including an annual compliance
review and preparation of the report relative to Proposition 111 and Article XIIIB of the State
Constitution, preparation of State Controller's Reports, and other accounting assistance as
requested.
Fees at Standard Rates $ 69,979.40
Agreed-Upon
Maximum $ 35,400.00
Add: additional fees for
Single Audit-two major
programs in accorcrance
with OMB Circular A-
133 $ 2,500.00
Less: Previously Paid $ -15,000.00
Amount Due $ 22,900.00
(Please reference our invoice number on your remittance)
4201 Brockton Avenue,Suite 100•Riverside,California 92501•Telephone(951)274-9500•Facsimile(951)274-7828 222
Attachment 2
AMENDMENT NO. 3
TO AGREEMENT BETWEEN THE CITY OF MOORPARK
AND TEAMAN, RAMIREZ & SMITH, INC., CERTIFIED
PUBLIC ACCOUNTANTS FOR INDEPENDENT AUDIT
SERVICES.
THIS THIRD AMENDMENT TO THE SERVICE AGREEMENT ("Third Amendment"), is
made and entered into this day of , 2012 between the City
of Moorpark, a California public body, hereinafter referred to as "CITY" and Teaman,
Ramirez & Smith, Inc., a California corporation, hereinafter referred to as "AUDITOR".
WITNESSETH:
WHEREAS, on May 8, 2007, the CITY and the AUDITOR entered into an
Agreement for independent audit services for three (3) fiscal years beginning with the
audit for the fiscal year ending June 30, 2007; and
WHEREAS, on January 21, 2010, the CITY and the AUDITOR amended the
Agreement to include $1,000 in additional fees for CAFR format revisions for fiscal year
ending June 30, 2009; and
WHEREAS, on February 23, 2010, the CITY and the AUDITOR amended the
Agreement to extend the term to include two (2) additional fiscal years and to increase
the compensation by $70,000 to $168,000; and
WHEREAS, the Scope of Services included the preparation of the Single Audit
Report, assuming one (1) major program as defined in the OMB Circular A-133; and
WHEREAS, the CITY is required to report two (2) major programs in the Single
Audit Report for fiscal year ending June 30, 2011; and
WHEREAS, the CITY now wishes to increase the Agreement price by $2,500 for
one (1) additional program, for a total not-to-exceed contract amount of$170,500.
NOW, THEREFORE, in consideration of mutual covenants, benefits and
premises herein stated, the parties hereto agree to amend the aforesaid Agreement as
follows:
I. Item A of Section 2 Scope of Services is amended to include:
Preparation of Single Audit and Related Reports to include two (2) major
programs in accordance with OMB Circular A-133 for fiscal year ending June
30, 2011.
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II. Section 7 Compensation is amended to include:
For the audit fiscal year 2010/2011, the all-inclusive audit fee is increased by
$2,500 from $35,400 to $37,900. The maximum contract amount shall not
exceed $170,500.
III. Remaining Provisions
All other provisions of the aforesaid Agreement shall remain in full force and
effect.
In witness whereof, the parties hereto have executed this Third Amendment on
the date and year first above written.
CITY OF MOORPARK: CONSULTANT:
Steven Kueny Greg W. Fankhanel
City Manager Partner
Attest:
Maureen Benson
City Clerk
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