HomeMy WebLinkAbout2009-05-12 - AGENDA REPORTS - PROFESSIONAL AUDITING SERVICE (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by: Darren Hernandez
May 12, 2009
AWARD CONTRACT FOR PROFESSIONAL AUDITING
SERVICES
Administrative Services
RECOMMENDED ACTION
Award contract for audit services to Caporicci & Larson, Certified Public Accountants, for an
amount not to exceed $148,990 over three fiscal years, authorize the City Manager or designee to
modify the award in the event other issues of impossibility of performance arise, and execute all
documents, subject to City Attorney approval.
BACKGROUND
Annually, the City of Santa Clarita issues various audited financial and compliance reports. They
are published not only to meet various federal, state, and other regulatory requirements, but also
to report to the City Council and the citizens of Santa Clarita on the City's annual financial status.
The City's auditors are required by auditing standards to perform the audit to obtain a reasonable
assurance about whether the financial statements prepared by management are "free of material
misstatements" and to report on the results of the audit in the Independent Auditor's Report.
The contract with the current audit firm was awarded in 2002 and is now expiring. In order to
ensure the City would be receiving the highest quality auditing services, a Request for Proposal
for Professional Auditing Services was issued on March 8, 2009.
The Request for Proposal was published twice on March 8 and 11, 2009. Notifications were sent
to 54 audit firms, including 15 local firms. A total of seven firms responded. The seven firms
and the location of their corporate headquarters are as follows:
Caporicci & Larson
Diehl Evans & Co., LLP
Mayer Hoffman McCann P.C.
Lance, Soll & Lunghard, LLP
Moss, Levy & Hartzheim
Daniells, Phillips, Vaughan & Bock
Vasquez & Co., LLP
Irvine, CA.
Irvine, CA
Bakersfield, CA
Brea, CA
Beverly Hills, CA
Bakersfield, CA
Los Angeles, CA
The proposals were evaluated, and all audit firms were interviewed by staff and a representative
from an outside agency.
As a result of this process, Caporicci & Larson, Certified Public Accountants, is recommended
based on their ability to provide professionalguidance, qualified staff, price, experience auditing
comparable -sized cities, and the positive feedback received from their municipal clients
contacted for references.
Based on the results of this competitive process, the annual cost to the City for acquiring auditing
services will be approximately $50,000, compared to the current annual cost of $59,000. This is
a savings of $9,000 per year.
ALTERNATIVE ACTIONS
Other direction as determined by City Council.
FISCAL IMPACT
The project cost for year one is $48,440. Funding for this project is included in the proposed
2009-10 budget in expenditure account 12101-5161.001. The total contracted amount is not to
exceed $148,990 over three fiscal years.
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