Agenda Item Wording:
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Authorize the City Manager to enter into a contract with Brown Armstrong Accountancy Corporation (Brown Armstrong) for a not to exceed amount of $356,500 as the City’s independent financial auditor.
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Deadline for Action: 5/6/2024
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Kari Williams 559-713-4298
Department Recommendation:
Staff recommends that the City Council authorize the City Manager to enter into a three-year contractual agreement with Brown Armstrong, as the City’s independent financial auditors, to perform the annual auditing and accounting services for fiscal years ending June 30, 2024; 2025; and 2026; with an option to renew for two additional years. The annual contract amount for the first 3 years is $71,300. Staff is requesting a not to exceed amount of $356,500 to allow for contract increases in the last two years.
Background Discussion:
Periodically the City needs to evaluate its continuing contracts and review the providers of various services. The scope of work for the independent auditors for the City is to provide annual financial auditing and accounting services which include auditing the Annual Comprehensive Financial Report (ACFR) for the City and related Single Audit. Also included in the scope of work is preparing the State Controller’s Report, the Management Letter Report to the City Council, the Report on Internal Controls to the City Council and other auditing task such as performing procedures and issuing an opinion on the City’s compliance with Proposition 4 appropriation limit requirements (GANN Limitations).
The previous 3-year contract to perform the annual auditing and accounting services for the City expired with the completion of the auditing of fiscal year ending June 30, 2023 and the contract was not extended. Staff prepared and issued a Request for Proposals (RFP) for annual auditing and accounting services in March of 2024.
Proposals were solicited by advertising in the Visalia Times Delta, posting the RFP on Bid-Net, and mailing proposal notices to CPA firms. The RFP closed on April 16, 2024. The City received one proposal from Brown Armstrong.
The proposal was evaluated by a committee of three staff members from the Finance Department. As a part of the evaluation process, the committee used the following criteria:
• Merit of Proposal
• Knowledge and Expertise
• Record of Past Performance
• Cost as a Total Maximum Fee
The committed determined that Brown Armstrong met the qualifications and criteria.
Fiscal Impact:
General Fund - Estimated Cost $356,500
Prior Council Action: March 15, 2021 Council approved the use of The Pun Group to complete the fiscal year 2021, 2022, and 2023 City Audit with an option to renew for two additional years.
Recommended Motion (and Alternative Motions if expected):
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Authorize the City Manager to enter into a contract with Brown Armstrong Accountancy Corporation (Brown Armstrong) for a not to exceed amount of $356,500 as the City’s independent financial auditor.
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