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HomeMy WebLinkAbout3C extend audit agreement SARATOGA CITY COUNCIL MEETING DATE: October 5, 2005 AGENDA ITEM: __ ORIGINATING DEPT: Administrative Svcs CITY MANAGER: Dave Anderson PREPARED BY: _________________ DEPT HEAD: Michele Braucht Michele Braucht SUBJECT: Extend current contract for annual audit services with Caporicci & Larson, LLP for an additional two years of auditing services. RECOMMENDED ACTION Per the contract that was signed May 2001, by written agreement, extend the terms of the contract for an additional two years of service at a price not to exceed $96,490. REPORT SUMMARY Without an extension, the current agreement for auditing services with Caporicci & Larson, LLP will expire in December 2005, or upon completion of the FY 2004-05 year end audit, which ever comes first. Staff is currently working in conjunction with the auditing team from Caporicci & Larson, LLP to complete a variety of projects that are in progress, that will enhance our internal controls, and improve accountability. These projects include areas such as; a refinement of the methodology used by the Community Development Department and the Public Works Department to track and record deposit accounts; the reconciliation and re-structuring of the accounting process for the Land and Light Districts, for the Public Works Department, to account for each District as an individual Fund and eliminate the co-mingling of cash between Districts. Staff recommends that the contract with the current auditing firm of Caporicci & Larson, LLP be extended for an additional two years to allow for the completion of the current work in progress. FISCAL IMPACTS The annual audit is included in the General Fund, Financial Management Program contract services budget. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION Limited staff resources will be redirected from current projects to fulfill the requirements of an RFP and selection process for auditing services. ALTERNATIVE ACTION N/A FOLLOW UP ACTION N/A ADVERTISING, NOTICING AND PUBLIC CONTACT N/A ATTACHMENTS A – Proposal from Caporicci, Cropper & Larson, LLP to perform two additional years of auditing services.