Agenda

Return

Consent

Brentwood City Commission Agenda

Meeting Date:	04/23/2018
Resolution 2018-29- Authorizing an Agreement with Crosslin and Associates for the Comprehensive Annual Financial Report (Audit) for Fiscal Year 2018
Submitted by:	Karen Harper, Finance
Department:	Finance

Information

Subject

Resolution 2018-29 - Authorizing an Agreement with Crosslin and Associates for the Comprehensive Annual Financial Report (Audit) for Fiscal Year 2017-2018

Background

Please find attached the proposed annual audit contract with Crosslin & Associates, PLLC, for the City’s independent auditing services for the fiscal year July 1, 2017 through June 30, 2018. The contract fee of $51,700 covers the base auditing services and preparation of financial statements. The contract fee represents a small increase of $1,300 from the previous year's audit.

In the interest of good governance, in FY 2015, it was decided to solicit proposals from firms interested in performing financial audits for the City. A request for proposals (RFP) was distributed and after evaluating each of the proposals received, the highest composite score of 95 out of 100 was given to Crosslin & Associates PLLC, earning Crosslin the recommendation from staff to be awarded the contract for audit services. The audit for FY 2017-2018 is the third of four one-year renewal options, for a potential total of five years with Crosslin. The first three audits performed by Crosslin went very smoothly.

For FY 2018, Crosslin will assist with the following GASB Statements: No. 75, Accounting and Financial Reporting for Post Employment Benefits Other than Pensions; No. 81, Irrevocable Split-Interest Agreements; No. 83, Certain Asset Retirement Obligations; No. 84, Fiduciary Activities; No. 85, Omnibus 2017; No. 86, Certain Debt Extinguishment Issues; and No. 87, Leases. We do not expect any significant impacts from these new standards. Crosslin will also assist with audit guidance for the City’s grant programs if the amount of federal grant expenditures exceeds $750,000 in FY 2017-2018.

The proposed audit fee is reasonable for the scope of work and is consistent with the fourth year fee as proposed in Crosslin's original five year fee proposal. The Finance Department staff will continue to work with Crosslin to keep the hours on the engagement as low as possible. The cost of the audit is allocated to four funds, including the General Fund, Water and Sewer Fund, Municipal Center Fund and Post Employments Benefits Trust. If approved by the Board of Commissioners, the Mayor will electronically sign the agreement with a copy going to the TN Comptroller's Office also.

Should you have any questions or need additional information, please contact the City Treasurer.

Staff Recommendation

The staff recommends approval of the accompanying resolution.

Fiscal Impact

Amount :	$51,700
Source of Funds:	Multiple
Account Number:	Various

Fiscal Impact:

General Fund	$28,160
Water Services Fund	$17,950
Municipal Center Fund	$3,490
Post-Employment Benefits Trust	$2.100

Attachments
Resolution 2018-29
FY 2018 Audit Contract Crosslin
Signed Resolution