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Brentwood City Commission Agenda

Meeting Date:	04/27/2020
Resolution 2020-38 - Authorizing an Agreement with Crosslin and Associates for the Comprehensive Annual Financial Report (Audit) for Fiscal Year 2020
Submitted by:	Karen Harper, Finance
Department:	Finance

Information

Subject

Resolution 2020-38 - Authorizing an Agreement with Crosslin and Associates for the Comprehensive Annual Financial Report (Audit) for Fiscal Year 2019-2020

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, 2019 through June 30, 2020. The contract fee of $54,200 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 2019-2020 is a one year contract since FY 2018-2019 was the final year of the five year contract with Crosslin. All five audits performed by Crosslin went very smoothly and for that reason, it was determined to recommend one additional year with the intention of soliciting proposals for auditing services for FY 2020-2021.

For FY 2020, Crosslin will assist with the following GASB Statements: No. 84, Fiduciary Activities, No. 87, Leases, No. 88, Certain Disclosures Related to Debt, No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, and No. 90, Majority Equity Interests. We do not expect any significant impacts from these new standards.

The proposed audit fee is reasonable for the scope of work and is consistent with the 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 Finance Director.

Staff Recommendation

The staff recommends approval of the accompanying resolution.

Fiscal Impact

Amount :	$54,200
Source of Funds:	Multiple
Account Number:	Various

Fiscal Impact:

General Fund	$29,345
Water Services Fund	$18,950
Municipal Center Fund	$3,685
Post-Employment Benefits Trust	$2,220

Attachments
Resolution 2020-38
FY 2019-2020 Letter of Engagement
Signed Resolution & Contract