AgdaPkt 2017-05-22 Joint SA PFA - Laserfiche WebLink

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REPORT To the Honorable Mayor and City Council From the City Manager May 22, 2017 SUBJECT Agreement with Badawi & Associates for Audit Services RECOMMENDATION By motion, approve and authorize the City Manager to execute an Agreement for Professional Services with Badawi & Associates for the auditing of fiscal years 2016-17, 2017-18, and 2018-19 in an amount not to exceed $236,520 BACKGROUND The City engages an independent certified public accountant to conduct an audit on the City’s financial records each year. The independent audit firm of Badawi & Associates (Badawi) has been the City’s auditor since the audit of Fiscal Year 2011-12. On February 28, 2017, staff issued a Request for Proposals (RFP) to seek independent, professional auditing services. The RFP resulted in six proposals. Six City staff members individually evaluated each proposal. The City Council’s Finance and Audit Committee (Committee) interviewed the top three firms on April 10, 2017. The Committee recommends that the City Council authorize an agreement with Badawi for audit services for a new three-year term. ANALYSIS Badawi was selected based upon the firm’s understanding of the work required, ability to provide outstanding professional audit services, excellent references, and recent experience in successfully performing similar services for the City and other local municipalities. The general scope of services covered in the existing contract includes conducting an audit of the City’s financial statements, examination of internal accounting controls, written reports on compliance and controls, and presentations to the Committee. The current audit contract for Fiscal Year 2015-16 totaled $65,000, and Badawi has proposed a new three-year agreement at a cost of $76,520 for the audit of Fiscal Year 2016-17; $78,810 for Fiscal Year 2017-18; and $81,190 for Fiscal Year 2018-19. This increase is due to additional work being performed, including: the separate audit of the Port of Redwood City; preparation of the California State Controller’s Reports of the City and Public Financing Authority; and the City’s annual Street Report. 6.1.E. - Page 1