Laserfiche WebLink
6.1. C. - Page 1 <br /> RE PO RT <br /> To the Honorable Mayor and City Council <br /> From the Audit Committee <br /> April 9, 2012 <br /> SUBJECT <br /> Assignment of City of Redwood City audit contract from Caporicci and Larson, Inc. (a <br /> subsidiary of Marcum, LLP) to Badawi & Associates. <br /> RECOMMENDATION <br /> By motion, authorize the City Manager to execute an assignment agreement of City's <br /> existing audit services after Badawi and Associates finalizes its acquisition of the City's <br /> account. <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 current independent auditor, Caporicci & Larson <br /> (C&L) was first engaged by the City Council for the FY 2002/03 audit based upon a <br /> recommendation from the Council's Audit Committee. During the last two years of the <br /> existing contract, C&L became a subsidiary of, and operated under Marcum, LLP, a <br /> large independent accounting firm. On March 19, 2012, the City Council approved an <br /> amendment to extend the existing agreement for three additional years. Subsequent to <br /> this approval, it was brought to the City's attention that the previous partner and staff of <br /> C&L are separating from Marcum, LLP, and forming a new firm, Badawi & Associates. <br /> Badawi and Associates has purchased certain assets from Marcum, LLP, including the <br /> contract with the City of Redwood City. <br /> ANALYSIS <br /> When C&L became a subsidiary of Marcum, LLP, the staff assigned to the City's audit <br /> remained virtually the same. Similarly, if Redwood City approves the assignment to <br /> Badawi & Associates, Ahmed Badawi, President of Badawi & Associates has informed <br /> the City that all of the previous staff inembers who were assigned to the City's audit will <br /> be employed by Badawi & Associates. Therefore, the proposed assignment of the <br /> contract from C&L to Badawi & Associates will be seamless to the City. Additionally, <br /> given the recent dissolution of the Redwood City Redevelopment Agency, there is an <br /> urgent need to schedule a final audit of the Agency, to be completed by the end of May, <br /> 2012. Ahmed Badawi has assured the City that his firm is ready to provide resources to <br /> conduct this required audit within the deadline. <br /> Badawi & Associates has not officially finalized and executed its agreement with C&L to <br /> purchase the City's account. Thus, Council's action on this item is to authorize the City <br />