HomeMy WebLinkAbout14 Financial Audit Contract Agenda Item # 14
ACTION
To: Board of Directors
From: Robert Mescher
Date: September 10, 2014
Subject: Consideration of Extending the Contract for the 2014 Financial Audit
1. WHY THIS MATTER IS BEFORE THE BOARD
The auditors are hired by the Board of Directors and report to the Board of Directors.
2. HISTORY
District Code requires the District's financial results to be audited annually.
Baker Tilly (nationally ranked 17th in size) performed the District's annual financial
audits for 2005 through 2010. Baker Tilly professionally completed the audits and
charged the District about $60,000 per audit.
In 2011, the Board requested staff to solicit proposals from Baker Tilly and other audit
firms. The Board selected Moss Adams for the 2011 audit and extended the contract
for the two subsequent years.
Moss Adams (nationally ranked 14th in size) professionally completed the audits for all
three years and presented the results to the Board. Moss Adams charged the District
$40,000, $41,500, and $43,500 for 2011, 2012, and 2013 respectively, which was
consistent with the contract. The original contract provided options to extend only
through 2013.
3. NEW INFORMATION
Moss Adams has proposed extending the contract for another two years. The
proposed costs would be $46,000 and $47,000 for 2014 and 2015 respectively.
It is prudent for utility districts to consider changing audit firms from time to time so that
new eyes can examine documents and processes. However, Moss Adams has
regularly turned over the field audit staff so they can provide that fresh perspective,
and Moss Adams has retained Julie Desimone and Keith Simovic so the District can
benefit from their vast experience of the utility industry.
An audit firm needs to be selected for the 2014 audit. The Board can decide to extend
the contract with Moss Adams or to advertise a request for proposal.
4. FISCAL IMPACT
If the Board extends the contract with Moss Adams for the 2014 audit, the cost would
be $46,000 and expensed in FY15.
The FY15 budget for the 2014 audit is $58,360.
5. RECOMMENDATION
Authorize the Board president to extend the the Moss Adams contract for one year
with an option to extend for an additional year.
Robert Mescher Michael D. Holley
Administrative Services Manager General Manager