HomeMy WebLinkAboutAGENDA REPORT 2017 0315 CCSA REG ITEM 10E ITEM 10.E.
CITY OF MOORPARK.CALIFORNIA
City Council Meeting
MOORPARK CITY COUNCIL of
AGENDA REPORT ACTION:
TO: Honorable City Council
FROM: Ron Ahlers, Finance Director
DATE: March 7, 2017 (City Council Meeting March 15, 2017)
SUBJECT: Consider Amendment No. 3 to Agreement with Rogers, Anderson,
Malody & Scott, LLP for Independent Financial Audit for the Fiscal
' Year Ending June 30, 2017
•
BACKGROUND
Rogers, Anderson, Malody & Scott, LLP (RAMS), has performed the annual financial
audit for the City of Moorpark for the past five years. During that time, RAMS has also
conducted the Due Diligence Reviews required by the California Redevelopment
Dissolution law and the Low and Moderate Income Housing Asset Fund audit and
Addendum Report to the Annual Progress report required by Senate Bill 341 (SB 341).
The term of the RAMS contract ended on February 28, 2017.
During October 2016, the City converted to a new financial system, Tyler InCode 10.
The City converted historical financial information to the new system. Finance staff
created a new chart of accounts to improve internal financial operations (eg. Bank
reconciliation) and to improve financial reporting.
Staff is requesting the City Council consider Amendment No. 3 to the RAMS contract
extending the term of the contract to May 31, 2018; which includes the audit for fiscal
year ending June 30, 2017. Staff has a good working relationship with the RAMS
auditors and the auditors possess a thorough understanding of the city's financial
system and operations. Staff believes it to be advantageous to retain the current audit
staff for one additional year since we converted to the new financial system, Tyler
InCode 10. The auditors will be required to verify the ending numbers in the old
financial system match the beginning numbers in the new financial system. This will be
somewhat cumbersome since we created a new chart of accounts in Tyler InCode 10.
Staff believes the current audit firm is the best qualified to accomplish this task.
42
Honorable City Council
March 15, 2017
Page 2
DISCUSSION
•
The current RAMS contract was for a period of five years, fiscal years 2012, 2013,
2014, 2015 & 2016, inclusive. Amendment No. 3 will extend the term by one year, to
include fiscal year 2017. The price for this additional year is a maximum of $45,200.
For comparison, the 2016 price was a maximum of $43,450. The increase is $1,750.
Staff will issue a Request for Proposal (RFP) for independent audit services during the
spring of 2018 for a new five year term.
FISCAL IMPACT
The contract amount for fiscal year ending June 30, 2017 is $45,200. This amount will
be included in the budget for fiscal year 2017-18.
STAFF RECOMMENDATION
Authorize the City Manager to execute the Amendment, subject to final language
approval by the City Manager.
•
Attachments:
Amendment No. 3 to the RAMS contract
43
AMENDMENT NO. 3
TO AGREEMENT BETWEEN THE CITY OF MOORPARK AND ROGERS,
ANDERSON, MALODY & SCOTT, LLP FOR INDEPENDENT AUDIT SERVICES
This Amendment No. 3 to the Agreement between the City of Moorpark, a
municipal corporation ("City"), and Rogers, Anderson, Melody & Scott, LLP
("Contractor"), for independent audit services ("Agreement"), is made and entered into
the day of , 2017.
RECITALS
WHEREAS, on April 19, 2012 the City and Contractor entered into an Agreement
to have the Contractor provide professional auditing services; and
WHEREAS, on October 10, 2012, the City and Contractor entered into
Amendment No. 1 to the Agreement for professional auditing services to conduct the
due diligence review as prescribed by AB 1484 Sections 34179.5 (c)(1) through
34179.5 (c)(3) and Sections 34179.5 (c)(5) through 34179.5 (c)(6) to be applied
separately to the Low and Moderate Income Housing Fund of the Successor Agency
and to all other funds of the Successor Agency combined; and to issue the reports by
the due dates established by law; and
WHEREAS, on March 3, 2015, the City and Contractor entered into Amendment
No. 2 to the Agreement for professional auditing services to provide the independent
financial audit of the Low and Moderate Income Housing Asset Fund and the addendum
to the Annual Progress Report as prescribed by SB 341; and to issue the reports by
December 31st each year; and
WHEREAS, at the public meeting held on March 15, 2017, the City Council of the
City of Moorpark approved the staff recommendation to enlist the Contractor to perform
the independent financial audit and related reports for one additional fiscal year,
increased the all-inclusive audit fees by forty-five thousand, two hundred dollars
($45,200); and authorized the City Manager to execute the Third Amendment; and
WHEREAS, the City and Contractor now desire to amend the Agreement to
extend the term for an additional fiscal year, and to increase the compensation for
services to be performed by Contractor from two hundred twelve thousand dollars
($212,000.00) by a value of forty-five thousand, two hundred dollars ($45,200.00) for a
total contract value of two hundred fifty-seven thousand and two hundred dollars
($257,200.00), and document said agreement to amend by jointly approving
Amendment No. 3 to the Agreement.
NOW, THEREFORE, it is mutually agreed by and between the parties to the
Agreement as follows:
I. Section 1, TERM, is amended by replacing this section in its entirety as follows:
44
"The term of this Agreement shall be from the date of execution and shall remain
and continue in effect until tasks describe herein are completed, but in no event
later than May 31, 2018, unless sooner terminated or suspended pursuant to the
provisions of the Agreement."
II. Section 2, SCOPE OF SERVICES, is amended by replacing this section in its
entirety as follows:
"CITY does hereby retain AUDITOR, as an independent contractor, in a
contractual capacity to perform the following tasks described below for fiscal
years 2011/12, 2012/13, 2013/14, 2014/15, 2015/16 and 2016/17, in accordance
with the prescribed standards in Section 11.6 of the RFP, attached hereto as
Exhibit C and incorporated herein by this reference as though set forth in full:
A. Conduct an annual audit of all funds of the CITY and render an auditor's report
on the basic financial statements, which will include both Government - wide
Financial Statements and Fund Financial Statements;
B. Prepare and word process the CITY's Comprehensive Annual Financial
Report (CAFR) to be in full compliance with all the Governmental Accounting
Standards Board Statements (GASB);
C. Complete a Single Audit Report on federal award programs, if applicable;
D. Assist in the preparation and submittal of the CAFR for the GFOA "Certificate
of Achievement for Excellence in Financial Reporting" and for the CSMFO
"Certificate of Award for Outstanding Financial Reporting ";
E. Prepare the State Controller's Cities Financial Transactions Report;
F. Prepare the State Controller's Transit Operators Financial Transactions
Report;
G. Issue the Independent Auditors' Management Letter that identifies issues not
required to be disclosed, but represent the auditors' concerns; include
recommendations for improvements suggestions noted in the audit as
appropriate;
H. The performance of providing the independent financial audit of the Low and
Moderate Income Housing Asset Fund and the addendum to the Annual
Progress Report as prescribed by SB 341; and to issue the reports by December
31st each year.
In the event there is a conflict between the provisions of the RFP and this
Agreement, the language contained in this Agreement shall take precedence."
III. Section 5, PAYMENT, is amended by replacing this section in its entirety as
follows:
45
Amendment No.3 to Agreement between City of Moorpark and RAMS. Page 2
"Taxpayer ID or Social Security number must be provided, on an IRS 1099 form,
before payments may be made to AUDITOR.
The CITY agrees to pay AUDITOR, in accordance with the payment rates and
terms and the schedule of payment as set forth in the Cost Proposal Form
Attachment C of Exhibit B, attached hereto and incorporated herein by this
reference as though set forth in full, based upon actual time spent on the above
tasks. The CITY agrees to pay AUDITOR, in accordance with the payment rates
and terms and the schedule of payment as set forth in the memo dated
September 25, 2014, for the preparation of the Housing Successor Fund audited
financial statements and the Addendum to Annual Progress Report attached
hereto as Exhibit E and incorporated herein by this reference as though set forth
in full, based upon actual time spent on the above tasks. This amount shall not
exceed Two Hundred Fifty-Seven Thousand, Two Hundred dollars ($257,200.00)
for the term of the Agreement. Fiscal Year (FY) maximum fees to the AUDITOR
are as follows:
46
Amendment No.3 to Agreement between City of Moorpark and RAMS. Page 3
AUDIT YEAR
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 TOTAL
Contract
Base Services
1)City Audit&related $22,000 $22,000 $22,000 $22,000 $23,000 $26,000 $ 137,000
Reports
2)Redevelopment Audit& $4,000 $4,000 $4,500 $4,500 $5,000 $5,000 $27,000
Related Reports
3)Single Audit&related $3,200 $3,200 $3,400 $3,400 $3,500 $4,000 $20,700
Reports(If applicable)
Sub-total Base Cost $29,200 $29,200 $29,900 $29,900 $31,500 $35,000 $ 184,700
Optional Services
4)State Controller's Report-
Cities Financial Transactions $2,750 $2,750 $3,000 $3,000 $3,200 $3,200 $17,900
Report
5)State Controller's Report-
Transit Operators Financials $700 $700 $725 $725 $750 $3,600
Transactions Report
6)Successor Agency-Due $20,000 $20,000
Diligence Reviews
7)Addendum to Annual $4,000 $4,000 $4,000 $4,000 $ 16,000
Progress Report
8)Housing Successor Fund
Audited Financial Statements $4,000 $4,000 $4,000 $3,000 $15,000
Sub-total Optional Costs $3,450 $23,450 $11,725 $ 11,725 $11,950 $ 10,200 $72,500
Annual Maximum Fees $32,650 $52,650 $41,625 $41,625 $43,450 $45,200 $257,200
47
Amendment No.3 to Agreement between City of Moorpark and RAMS. Page 4
AUDITOR shall not be compensated for any services rendered in connection with
the performance of this Agreement, which are in addition to those set forth
herein, unless such additional services are authorized in advance and in writing
by the City Manager. AUDITOR shall be compensated for any additional services
in the amounts and in the manner as agreed to by City Manager and AUDITOR
at the time CITY's written authorization is given to AUDITOR for the performance
of said services. The City Manager may approve additional work not to exceed
ten percent (10%) of the amount of the Agreement.
AUDITOR shall receive payment within thirty (30) days of receipt of each invoice
as to all non-disputed fees. Any expense or reimbursable cost appearing on any
invoice shall be accompanied by a receipt. If the CITY disputes any of
AUDITOR's fees or expenses it shall give written notice to AUDITOR within thirty
(30) days of receipt of any disputed fees set forth on the invoice."
IV. Remaining Provisions:
Except as revised by this Amendment No. 3, all of the provisions of the
Agreement shall remain in full force and effect.
In Witness Whereof, the parties hereto have caused this Amendment to be
executed the day and year first above written.
CITY OF MOORPARK CONTRACTOR
Steven Kueny Terry Shea
City Manager Partner
Attest:
Maureen Benson
City Clerk
Amendment No.3 to Agreement between City of Moorpark and RAMS. Page 5 4 8
Exhibit E
CITY OF MOORPARK
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE JUNE 30, 2017 FINANCIAL STATEMENTS
Base Services: Total
City Audit& Related Reports $ 26,000
Successor Agency Audit 5,000
Single Audit&Related Reports (if applicable) 4,000
Sub-total Base Costs 35,000
Optional Services:
State Controller's Report-Cities Financial Transactions Report 3,200
Prepararation of the City's Housing Assets Fund financial statements 4,000
Preparation of Addendum to Annual Progress Report required by SB 341 3,000
Sub-total Optional Costs 10,200
Annual Maximum Fees $ 45,200
49