Agenda

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Brentwood ECD Agenda

Meeting Date:	04/10/2023
Submitted by:	Karen Harper, Finance
Department:	Finance

Information

Subject

Resolution ECD 2023-03 - A RESOLUTION AUTHORIZING AN AGREEMENT WITH KRAFT CPAs, PLLC FOR FINANCIAL AND COMPLIANCE AUDIT SERVICES FOR THE FISCAL YEAR ENDING JUNE 30, 2023, for adoption

Background

For complete background information see Resolution 2023-42 on the regular April 10, 2023 agenda for the City.

After much consideration, staff decided not to recommend the renewal with Blankenship CPA Group, PLLC for financial and compliance auditing services for the fiscal year ending June 30, 2023. Staff reached out to Kraft CPAs, PLLC (Kraft) who agreed to take on the City's audit services for FY 2023. Kraft was the auditing firm utilized by the City approximately 7 years ago. During the time prior to 2015, the City experienced an independent, positive, and professional relationship with Kraft, meeting the service needs for the annual audit of the ECD financial statements and preparation of the Annual Financial Report.

Please find attached the proposed annual audit contract with Kraft for Fiscal Year 2022-2023 for independent auditing services for the Brentwood Emergency Communications District (ECD). The proposed contract fee for the ECD audit is $9,850, which represents a $2,250 increase from the previous fiscal year, but is consistent with the increased cost in providing these services.

The ECD fund is legally established under Tennessee law and is subject to a separate audit from the City's primary audit. Kraft will be required to perform additional auditing services and issue a separate set of financial statements. Since the ECD operations are fully integrated into regular City operations, improved coordination and economies of scale are gained by using the same accounting firm for City's audit and ECD audit.

Sufficient funds are included in the proposed FY 2024 ECD Budget to cover the cost of the audit. If approved by the Board of Commissioners, the Mayor will sign the agreement electronically via the TN Comptroller's Office's website called CARS.

Should you have any questions, please contact the Finance Director or Assistant Finance Director.

Staff recommendation

Staff recommends approval of the accompanying Resolution.

Fiscal Impact

Amount:	$9,850
Source of Funds:	Emergency Communications Fund
Account Number:	450-91100-82530

Fiscal Impact:

June 30, 2023	$9,850
June 30, 2024	$10,125
June 30, 2025	$10,400

Attachments
Resolution ECD 2023-03
Kraft CPAs, PLLC Engagement Letter for FY 2023 ECD
Kraft CPAs Audit Proposal
Signed Resolution
Signed Contract