HomeMy WebLinkAboutItem JAGENDA REPORT
DATE: May 14, 2001
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Pamela Arends -King, Director of Administrative Services/Treasurer
SUBJECT: Renew Professional Service Contract with Independent
Auditors
SUMMARY OF REOUEST:
At the April 23, 2001 Council Meeting, City Council took action instructing staff to
renew the professional service contract with the independent audit firm Lance Soil &
Lunghard for FY 2000/2001 and to have staff send out an RFP for auditing services for
FY 2001/2002. By the Council's direction Staff requests Council approve renewal of
professional service contract with the independent audit firm Lance Soil & Lunghard for
FY 2000/2001. Staff will be bringing forward an RFP for auditing services later this
year.
BACKGROUND:
Lance Soil & Lunghard has served as the City's independent auditors since FY
1996/1997 through 1999/2000. The auditing and accounting services provided over
those years resulted in the City receiving the Government Finance Officer's and
California Society of Municipal Finance Officer's Awards for excellence in financial
reporting. The firm also addressed key internal control issues which resulted in
automating beach parking revenue to safeguard City revenues, the selection of new
accounting software and more efficient controls over accounts payable. The firm also
met State Controller Office Requirements including the preparation of the State
Controllers Report for both the City and Agency along with the requirements of the
Single Audit Act of 1984. Lance Soil & Lunghard have also provided invaluable
services for the Redevelopment Agency in regards to the Low/Mod housing surplus that
helped with the refinancing of the Redevelopment Agency Bonds and the purchase of the
Seal Beach Trailer Park.
There are two major events coming up for the City and those are the implementation of
GASB 34 and the accounting software conversion. Renewing the contract with Lance
Soil & Lunghard will help with the City with the implementation of both events because
the firm is familiar with the accounting software the City currently has and it is familiar
Agenda Item J
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May 14, 2001
Renew Professional Service Contract with Independent Auditors
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with the areas the City needs to improve to meet the GASB 34 requirements. Also, the
firm is on the California Society of Municipal Finance Officer's board for the
implementation of GASB 34, therefore the City will be working with an auditing staff
that is very knowledgeable with GASB 34.
FISCAL IMPACT:
The proposed fees for the auditing services will increase 3% to $30,548. This fee
includes not only the annual audit but also the preparation of the annual State Controllers
Reports for the City and the Redevelopment Agency. Should the City or Agency require
additional services above and beyond the scope of the auditing services the standard
hourly rates would be utilized for the term of any new agreement are $I50/hour for
Partner, $100/hour for Manager, $80/hour for Senior and $60/hour Professional Staff.
RECOMMENDATION:
Staff recommends council approve the one -year extension of the professional contract
with Lance Soll & Lunghard subject to review by the City Attorney.
Pamela Aremhs King `-'
Director of Administrative Services/Treasurer
Manager