HomeMy WebLinkAboutItem GAGENDA REPORT
DATE: April 23, 2001
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Pamela Arends -King, Director of Administrative Services/Tremurer
SUBJECT: Renew Professional Service Contract with Independent
Auditors
SUMMARY OF REOUEST:
Staff requests Council approves renewal of professional service contract with the
independent audit firm Lance Soil & Lunghard for FY 2000/2001 through 2002/2003.
BACKGROUND:
Lance Soll & 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 Soll & 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
Soll & 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
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.
Agenda Item
April 23, 2001
Renew Professional Service Contract with Independent Auditors
Page 2
FISCAL IMPACT:
The proposed fees for the auditing services will remain the same as was charged for the
1999/2000 fiscal year audit of $29,701 and then only increase by three percent for each
year thereafter. The fees for FY 2001/2002 will be $30,548 and the fees for FY
2002/2003 will be $31,420. 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 $150/hour for Partner, $1001hour for Manager,
$80/hour for Senior and $60/hour Professional Staff.
Staff recommends council approve the three -year extension of the professional contract
with Lance Soll & Lunghard subject to review by the City Attorney.
Pamela Arends -King -
Director of Administrative Services/Treasurer
/B. ski
ity