TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
SUBJECT:Title
Resolution Awarding Professional Services Agreement to Lance, Soll & Lunghard, LLP to Perform Financial Auditing for the City for Fiscal Years 2016-2017 and 2017-2018 (Finance Director Moe).
APPROVE; ADOPT RESOLUTION
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Recommended Action
RECOMMENDATION:
Finance Subcommittee and staff recommend that the City Council adopt Resolution No. 17-0029 approving a contract extension with Lance, Soll & Lunghard, LLP, Certified Public Accountants, to provide financial audit services for two additional fiscal years for an amount not to exceed $120,000. If approved, services will be extended to include audits for the fiscal year (FY) ending June 30, 2017 and June 30, 2018. The original three year contract approved by the City Council provides for two additional one-year extensions subject to Finance Subcommittee and City Council approval.
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FISCAL IMPLICATIONS:
The proposed contract extension covers a two-year audit period (FY 2017 and FY 2018). Services are provided on a fixed fee basis of $59,642 (not to exceed) for both years. These fees include the base City Audit ($51,837) as well as optional services for: the Federal "Single Audit" ($5,305) which is needed only if the City receives Federal funds in excess of $750,000; and preparing the annual State Controllers Report ($2,500) which is currently done in-house but which may be done more efficiently by the auditor as an option. The City Audit fees under the extension represent no increase from those provided for in the existing contract approved by City Council.
BACKGROUND:
The State of California requires an annual audit of the City's finances. Such audits are to be conducted in conformance with generally accepted auditing standards by a licensed independent public accounting firm. The City's financial policies ...
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