COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Jill Olsen, Administrative Services Director
SUBJECT:Title
Action: Amendment No. 5 to Professional Services Contract with Clifton Larson Allen, LLP, for External Auditing Services (Jill Olsen)
Body
FUNDING SOURCE:
General Fund
PURPOSE:
To consider approval of Amendment No. 5 to the five-year Professional Services Contract for external auditing services with Clifton Larson Allen, LLP (Contract #500140) in accordance with City Code Section 3.10.020.6.
BACKGROUND:
As required by State Statute, City Code, bond covenants, and federal agencies, the City is required annually to have an independent accounting firm audit its financial statements. Without an annual audit of the City’s financial statements, the City would violate the statutes and covenants, precluding the City from receiving state-shared revenues, issuing debt, or receiving federal grants. The total cost of the original five-year contract is $358,293. To date, there have been four amendments to the contract. Amendments 1, 2 and 4 were within five percent of the total contract amount and approved by the City Manager. The Council approved Amendment 3. A summary of the amendments are as follows:
Amendment 1. Addition of National Transit Database Audit - $7,560
Amendment 2. Governmental Accounting Standards Board (GASB) Statement 87 -
Audit of implementation and financial reporting - $10,333
Amendment 3. GASB Statement 96 - Audit of implementation, financial reporting, and
new audit standards, SAS 143-145. The actual expense for these services
was an additional $14,281
Amendment 4. For the fiscal year 2024 audit, two additional grants exceeded the single
audit limits, requiring two additional audits for $12,180
Amendment 5. For the fiscal year 2025 audit, an estimated $20,549 is requested for up
to three additional grant audits and possible assistance implementing
GASB 101
COMMUNITY IMPACT:
A financial audit is essential for ensuring transparency, accountability, and maintaining public trust. Audits verify the integrity of municipal operations, review financial records, and provide independent assurance that financial information is reliable.
FISCAL IMPACT:
The total cost of the original five-year contract is $358,293, and the entire contract with all five amendments is not to exceed $423,196 as reflected in the attached Audit Contract and Amendments Summary.
ATTACHMENTS:
Amendment No. 5 to Contract 500140
Audit Contract and Amendments Summary
SUGGESTED MOTION:Recommended ACtion
I move to approve Amendment No. 5 to the Professional Services Contract with Clifton Larson Allen, LLP, for $20,549 and authorize the City Manager to execute the Amendment.