CITY COUNCIL AGENDA ITEM
Meeting Date: May 14, 2002
Subject/Title: Authorize the City Manager to execute a contract in the amount of $190,681 with Vavrinek, Trine, Day & Co., LLP for services to include the city audit for the fiscal years 2001/02 through 2005/06, Redevelopment Agency audit for the fiscal years 2001/02 through 2005/06, CAFR Preparation, and the Government Accounting Standard Boards new financial reporting model (G.A.S.B. 34) update and implementation.
Submitted by: Pam Ehler, Director of Finance and Information Systems
Approved by: John Stevenson, City Manager
Authorize the City Manager to execute a contract for auditing services with Vavrinek, Trine, Day & Company, LLP.
The City of Brentwood released a Request for Proposal for audit services for the fiscal year ending 2001/02 through 2005/06. The purpose for a five year engagement period is to lock the City in for a lower rate. The CPA firms that participated are Amanino McKenna from Walnut Creek, Caporicci & Larson from Oakland, and Vavrinek, Trine, Day & Co., from Pleasanton. Although each firm has a comparable client base as it relates to the City of Brentwood, the most evident outcome is in the difference of approximately $108,300 in savings that Vavrinek, Trine, Day & Co., LLP proposed to charge the City of Brentwood.
For the prior fiscal year, the $40,000 in fees that the City paid for audit services did not include the Comprehensive Annual Financial Report (CAFR) and the GASB 34 training and implementation. This fiscal year, our audit fees are down to $33,450 with more services included in the fee. Due to the staffing strategy in the Finance department and the ongoing training and cross-training of personnel, we have been able to derive the benefits of utilizing the employees in-house, thereby resulting in a tremendous savings in fees that would have normally gone to the preparation and printing of the CAFR, and consultant fees for GASB 34 implementation. This has garnered tremendous savings for the City of Brentwood.
Vavrinek, Trine, Day & Co., LLP has performed the annual audits for the City and the Redevelopment Agency. Due to the firmís familiarity of the Cityís operations and activities, staff desires to continue utilizing the services of Vavrinek, Trine, Day & Co. for the 2001/02 through 2005/06 audit, Redevelopment Agency audit for the fiscal years 2001/02 through 2005/06, and for the Audit and Governmental Accounting Standard Boards new financial reporting model (G.A.S.B. 34) update and implementation.
Fiscal Impact: See attached schedule.