HomeMy WebLinkAbout17 Financial Auditors DONNE
- AGENDA ITEM #17
Public
MEETING DATE: September 7, 2022
TO: Board of Directors
FROM: Michael R. Salmon, Chief Financial Officer
SUBJECT: Consideration for a Professional Services Contract to
Conduct the District's FY2022 Annual Audit
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
a) Authorize the Board President to execute a contract with Moss Adams to conduct
the FY22 annual audit, in an amount not to exceed $61,600, with an option to
extend two years for FY23 and FY24; or
b) Direct staff to issue a request for proposals for a professional auditing firm to
conduct the District's FY22 annual audit
BACKGROUND:
District code requires the District's financial results to be audited annually. The audit firm
is hired by the Board and reports directly to the Board. District code outlines a cycle of
every three years issuing a request for proposals or request a proposal from current
auditors to extend their services.
Moss Adams was ranked 11t" nationally for firm size in 2021 (accountingtoday.com/the-
2021-top-100-firms-data) and is the largest firm headquartered on the west coast. Moss
Adams has been reporting the audit results to the Board since FY11. In 2019, the Board
renewed Moss Adams contract for the 2019, 2020 and 2021 fiscal year audits.
ANALYSIS/BODY:
Moss Adams services for the District are based out of the Portland, Oregon office and
has been lead the last few years primarily by former manager, now partner Keith Simovic.
Julie Desimone, National Practice Leader in Power, Utilities, & Renewable Energy, serves
as the Quality Control Reviewer Partner for the District's audit. The firm has an extensive
utility practice, as detailed in their proposal.
The District has been satisfied with the audit services provided, in particular, the depth of
utility and governmental expertise. Moss Adams consistently rotates assigned personnel
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and testing areas of the District's financials and internal controls. Further, in 2021 Moss
Adams provided valued assistance with the District's 1 st Annual Comprehensive Financial
Report for FY20, which received a Certificate of Excellence from the Governmental
Finance Officers Association.
The Board may direct staff to distribute a Request for Proposal (RFP)for next three years
of audit services or consider extending Moss Adams contract. An RFP will likely provide
a range of costs and service levels, though staff does not estimate a materially lower cost
than the current contract level. For further consideration by the Board, changing auditing
firms will require additional staff resources associated with providing comprehensive
overviews of the District's organizational structure and business practices for which Moss
Adams is already acutely familiar, with no known new benefits to the District. Staff
recommends the Board review and consider for approval a contract extension with Moss
Adams.
Moss Adams has provided a new proposal for audit services, Attachment 1. The proposal
continues to be cost effective for the District at$61,600 for FY22 with the option to renew
for the FY23 and FY24 years. Asa point of reference, Baker Tilly conducted the District's
audits from FY05 through FY10 and charged the District approximately$60,000 per audit.
Goals and Objectives:
This item is in support of the following goals and objectives:
District Code 1.05.020 Objectives:
1. Responsibly serve the public.
6. Manage the District effectively, efficiently and fiscally responsible manner.
Strategic Goals:
1. Manage for Financial Stability and Resiliency
3. Engage with our customers and communities in a welcoming and transparent way
to identify opportunities.
FISCAL IMPACT:
Moss Adams proposal for contract renewal for the FY22 audit is $61,600 and includes an
option to renew for FY23 and FY24 for$63,950 and $65,250, respectfully. These amounts
include travel expenses (which may not be incurred) and an administrative and
technology fee of 5%.
FY23 is the audit services expense year for the FY22 financial year. The District's annual
budget for FY23 audit service expense is$57,165. The Moss Adams proposal of$61,600
is $4,435 or 8% greater. The proposal amount does include $7,000 of travel expenses,
which we do not currently forecast being fully incurred. FY24 & FY25 expense years for
FY23 and FY24 financial year audits will be budgeted as part of next budget cycle in fall
of 2023.
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ATTACHMENTS:
1 — Moss Adams proposal for FY22, FY23, & FY24 audit services
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