HomeMy Public PortalAbout09) 7E First Amendment to the Agreement with Vavrinek, Trine, Day and CompanyAGENDA
ITEM 7.E.
ADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
DATE: April 4, 2017
TO: The Honorable City Council
FROM: Bryan Cook , City Manager
Tracey L. Hause , Administrative Services Director
SUBJECT: APPROVAL OF A FIRST AMENDMENT TO THE AGREEMENT WITH
VAVRINEK, TRINE , DAY & COMPANY, LLP FOR PROFESSIONAL
AUDIT SERVICES
RECOMMENDATION:
The City Council is requ ested to consider a recommendation from the Audit Stand i ng
Committee to authorize the City Manager to enter into a f i rst amendment to the
agreement for professional audit services with Vavrinek, Trine , Day & Company, LLP
(VTD) for Fiscal Year (FY) 2016-17 .
BACKGROUND:
1. On January 6 , 2016 , the City requested proposals from qualified Certifi ed Public
Accounting (C PA) firms for a three-year contract to audit its financial statements
beginning with the fiscal year ending June 30 , 2016 , with the option to renew the
contract for an additional two fiscal years , for a total of 5 years.
2. On March 18 , 2016, th e Audit Standing Committee took action and recommended
to the City Council that they authorize the City Manager to enter into an agreement
for professional audit services with VTD for the FY 2015-16 .
3 . On April 4 , 2017 , the City Council accepted the Audit Standing Committee 's
recommendation and authorized the City Manager to enter into an agreement for
professional audit services VTD for the FY 2015-16 .
4 . On March 17, 2017 , the Audit Standing Committee met and took action to
recommend to the City Council that they authorize the City Manager to enter into
an agreement for professional audit services with VTD for the FY 2016 -17 .
City Counc il
April 4 , 2017
Page 2 of 2
ANALYSIS:
Since FY 2014-15 was the fifth year that Vasquez & Company LLP had completed
accounting and auditing services for the City , and in order to maintain best pract ices as
recommended by the 2012-2013 Los Angeles County Civil Grand Jury Report (Grand
Jury Report), the City requested proposals fo r professional audit services for the FY
2015-16 .
After a lengthy review process , staff recommended the f i rm of VTD for profess ional
audit services for FY 2015-16. Typically cities will retain the same audit f irm for a
minimum of three years and often times , will extend contract for another two years , for a
total of five years . Due to the time consuming process required of both the City staff
and audit firm during the first year, and sometimes also the second year of an aud iting
contract , typically a change in auditors after just one year is not efficient or effective.
However, based on the Grand Jury report, proposals will be requested at least every
five years .
VTD 's audit services were satisfactory for FY 2015-16 and as a result it is appropriate to
recommend an amendment to their contract for the ensuing fiscal year. Staff will return
to the Audit Standing Committee and the City Council annually to amend the agreement
for services for the following fiscal year.
CITY STRATEGIC GOALS:
The City Council's action to amend VTD's agreement will further the City's Strategic
Goal to promote Good Governance .
FISCAL IMPACT:
The cost proposed for auditing services by VTD for the FY 2016 -17 is an a ll-inclusive
maximum of $53 ,000 . This is the same fee that was proposed for auditing serv ices for
FY 2015-16 . VTD originally proposed the following fees for the ensuing years :
All-inclusive maximum fee for 2017/2018 Audit $ 54 ,590 ;
All-inclusive maximum fee for 2018/2019 Audit $ 56 ,228 ; and
All-inclusive maximum fee for 2019/2020 Audit$ 57 ,914 .
An appropriation for $53 ,000 will be proposed during the FY 2017-18 C ity Budget
process for the professional audit services.