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7.2.A. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> February 23, 2015 <br /> SUBJECT <br /> Agreement for Audit Services by Badawi & Associates for FY 2014-15 <br /> RECOMMENDATION <br /> Approve by motion a one year contract with Badawi & Associates for the auditing of <br /> fiscal year 2014-15. <br /> BACKGROUND <br /> The City engages an independent certified public accountant to conduct an audit on the <br /> City's financial records each year. The independent auditor Caporicci & Larson, was <br /> first engaged by the City Council for the fiscal year 2002-03 audit based upon a <br /> recommendation from the City Council's Audit Committee. Since that time, the <br /> agreement has been amended three times to extend the term, with the most recent <br /> amendment extending through the audit for fiscal year 2013-14. During this period, <br /> Caporicci & Larson became a subsidiary of Marcum, LLP. Subsequently, Badawi & <br /> Associates was created consisting of the former Caporicci & Larson employees, and the <br /> City of Redwood City contract was assigned to the new firm, Badawi & Associates for <br /> the fiscal year 2011-12 audit. <br /> ANALYSIS <br /> Staff is recommending a one-year contract with our current auditors to ensure <br /> consistency during the period of transition in the Finance Director position and to ensure <br /> sufficient staff capacity to undertake the analysis and work associated with a Request <br /> for Proposal process and the potential establishment of new systems within a new audit <br /> relationship. Staff has continued to find that the firm provides high quality service. <br /> Although the proposed extension will extend the current relationship to a total of 13 <br /> years, the recommended practice of rotating audit firms has been satisfied through the <br /> rotation of partners. In fiscal year 2011-12, Nasi Raissian was the partner assigned to <br /> the City of Redwood City, and Jack Georger has been the assigned partner for the last <br /> two fiscal years. Ahmed Badawi would be the assigned partner for the proposed new <br /> agreement period of fiscal year 2014-15. <br /> The current audit contract for fiscal year 2013-14 totals $59,892, and Badawi & <br /> Associates has proposed entering into the new one-year agreement at a cost of <br />