Please find attached the proposed annual audit contract with Blankenship CPA Group, PLLC for the City’s independent auditing services for the fiscal year July 1, 2021 through June 30, 2022. The contract fee of $48,400 covers the base auditing services and the preparation of financial statements. The contract fee represents a small increase of $1,400 from the previous year's audit. FY 2022 will require a single audit of grant expenditures exceeding $750,000 at a cost of $4,000 for each major program.
As you may recall, in FY 2021, staff solicited 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 best combination of experience, knowledge, qualifications, fees, and location earned Blankenship the recommendation from staff to be awarded the contract for audit services. The audit for FY 2021-2022 is a for year two of a five-year contract.
For FY 2022 financial and compliance audit services, Blankenship will assist with the following GASB Statements: No. 87, Leases, No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, No. 92, Omnibus 2020, No.93, Replacement of Interbank Offered Rates, and 97, Defined Contribution Plans. 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 Blankenship 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 sign the contract electronically via the TN Comptroller's Office CARS website.
Should you have any questions or need additional information, please contact the Finance Director. |