Loading...
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.