Title
Consideration of and action on renewing the agreement with Belt Harris Pechacek, LLLP for professional auditing services.
Body
Summary: In March 2013, the City issued an RFP for professional auditing services and in June 2013, the City awarded the contract to Belt Harris Pechacek, LLLP ("the Auditors"). The initial three-year term of the contract expired with completion of the audit for the fiscal year ending September 30, 2015. There is an option to extend the engagement for each of the successive years (fiscal years ending in 2016 and 2017), and last year, the City extended the agreement for the fiscal year ending in 2016. The City and the Auditors are both agreeable to extending the engagement for the final renewal period for the fiscal year ending in 2017. Attached is a copy of the new engagement letter dated March 15, 2017 for professional auditing services for the fiscal year ending September 30, 2017. (Note: the City will issue an RFP sometime during early 2018 for professional audit services to begin a new contract period starting with the audit for the fiscal year ending in 2018.)
Fiscal/Budgetary Impact: The fee for the financial statement audit for the fiscal year ending September 30, 2017 is $43,775, which is unchanged from the current fee (for the fiscal year ending September 30, 2016). The fees associated with a single audit, if required, are also unchanged ($7,500 for one major program and $3,200 for each additional major program). A single audit is required if the City spends federal funds in excess of $750,000 during the fiscal year (note: the City did not require a single audit for the fiscal year ending September 30, 2016). Audit fees are proportionally allocated to the General Fund, Water/Sewer Fund, Crime and Fire Districts, and the Deer Park Community Development Corporation.
Recommended action:
Renew the agreement with Belt Harris Pechacek, LLLP for professional auditing services for the fiscal year ending September 30, 2017.