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Consent

Brentwood City Commission Agenda

Meeting Date:	05/22/2017
Resolution 2017-32 - Authorizing an Agreement with Crosslin and Associates for the Comprehensive Annual Financial Report (Audit) for Fiscal Year 2017
Submitted by:	Karen Harper, Finance
Department:	Finance

Information

Subject

Resolution 2017-32 - Authorizing an Agreement with Crosslin and Associates for the Comprehensive Annual Financial Report (Audit) for Fiscal Year 2016-2017

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, 2016 through June 30, 2017. The contract fee of $50,400 covers the base auditing services and preparation of financial statements. The contract fee represents a small increase of $1,200 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 2016-2017 is the second of four one-year renewal options, for a potential total of five years with Crosslin. The first two audits performed by Crosslin went very smoothly. For FY 2017, Crosslin will assist with the following GASB Statements: No.74, Financial Reporting for Post Employment; No.77, Tax Abatement Disclosures; No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans; and No. 82, Pension Issues. Crosslin will also assist with the change in single audit guidance for the City’s grant programs since the amount of grant expenditures will exceed $750,000 in FY 2016-2017. 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 third 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 . 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 :	50,400
Source of Funds:	Multiple
Account Number:	Various

Fiscal Impact:

Sufficient funds are included in the FY 2018 proposed budget to cover the cost of the annual audit. The total cost ($50,400) will be allocated to the following funds:

General Fund	$27,450
Water & Sewer Fund	$17,500
Municipal Center Fund	$3,400
Post-Employment Benefits Trust	$2,050

Attachments
Resolution 2017-32
Agreement
Signed Resolution