FROM:
Finance
SUBJECT:
Title
Auditing Services Contract for Fiscal Years Ending June 30, 2024, 2025, 2026
End
RECOMMENDATION:
Recommendation
1. Approve and award the professional auditing services contract to Eide Bailly for the three fiscal years beginning with the fiscal year ending June 30, 2024 to June 30, 2026, in the amount of $119,000 for first year, $124,951 for second year and $131,199 for third year, and with the option of two (2) subsequent years.in the amount of $135,134 for 2027 and $139,190 for 2028, respectively, and to authorize the City Manager to execute the auditing services agreement.
2. Authorize the City Manager to execute any future amendments to the auditing services agreement on behalf of the City of Fontana.
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COUNCIL GOALS:
• Practice sound fiscal management by producing timely and accurate financial information.
DISCUSSION:
The Fontana Municipal Code, Section 10-8 states in part, "The books, accounts and funds of the city finance department, city treasurer and all special agencies shall be audited by a registered and licensed public accountant at least once a year."
On April 26, 2024, the City sent out a Request for Proposal (RFP) No. FI-24-187-SP for Professional Auditing Services for fiscal years ending June 30, 2024, 2025 and 2026, with an option to renew for an additional two years. In response to the RFP, the City received three (3) bid proposals from qualified certified public accounting (CPA) firms. These were their base price proposals:
• Eide Bailey: $119,000
• Badawi & Associates: $79,980
• SingerLewak: $79,480
All proposals we reviewed and scored based on the following criteria:
• Expertise and experience 45%
• Audit approach 30%
• Pricing 25%
After evaluation by the Audit Selection Committee, the firm Eide Bailly was chosen. They received the highest score of the 3 proposals and was the only firm with the ability to meet the City’s December deadline for issuing the Annual Comprehensive Financial Report.
Eide Bailly is a national CPA firm that has 100 years of service, 40+ offices in 15 states and India, and more than 3,000 professional staff. The government industry represents one of Eide Bailly’s largest niche areas - with more than 1,300 government clients firmwide successor agency compliance and single audit compliance. Eide Baily has served local governments California for over 70 years performing numerous audits of government entities. They prioritize staying current with changes to the government industry, help clients adapt to changes within the existing standards, and implement any new standards. Their team members are engaged in the government industry and are well positioned in organizations associated with government entities. Eide Baily are leaders in the Governmental Accounting Standards Advisory Council (GASAC), the American Institute of Certified Public Accountants’ (AICPA) Governmental Audit Quality Center (GAQC), Private Companies Practice Section (PCPS) Technical Committee, local and national boards of the Association of Government Accountants (AGA), including the Financial Management Standards Board, and the review committee for the GFOA Certificate of Achievement.
FISCAL IMPACT:
The proposed fee for fiscal years ending June 30, 2024, 2025 and 2026 are $119,000, $124,951, and $131,199 respectively. The Finance Department currently has $100,000 budgeted for the Fiscal Year 2024/2025 audit and will be requesting additional budget in the amount of $19,000 in the first quarter of FY2024/2025 to cover the audit fee.
MOTION:
Approve staff recommendation.