File #: 15-687    Name: Auditor Contract
Type: Resolution Status: Approved
In control: City Council Regular Meeting
On agenda: 7/21/2015 Final action: 7/21/2015
Title: Consider/Discuss/Act on a Resolution Authorizing a Contract for Professional Auditing Services with BKD, LLP
Attachments: 1. Resolution, 2. Phase I- Proposal Scoring (Compiled Results), 3. Phase II- Interview Scoring (Compiled Results), 4. Bid Opening Respondents, 5. BKD, LLP Proposal

Title

Consider/Discuss/Act on a Resolution Authorizing a Contract for Professional Auditing Services with BKD, LLP 

 

Summary

 

COUNCIL GOAL:                     Financially Sound Government

MEETING DATE:                     July 21, 2015

 

DEPARTMENT:                      Financial Services

 

CONTACT:                       Rodney Rhoades, Chief Financial Officer

 

 

RECOMMENDED CITY COUNCIL ACTION:                     

                     Authorize the contract

 

ITEM SUMMARY: 

                     Request for proposal #15-55 was advertised May 10, 2015 for professional auditing services to include the City’s annual financial audit, federal and state single audits of grant awards, and CAFR preparation.

                     Bid opening was conducted May 28, 2015 and six proposals were submitted.

                     BKD, LLP and Weaver, LLP were selected for interviews based on staff scoring of the proposals.

                     A second phase of scoring was conducted based on the interviews, presentations, client references, client portal, and CAFR preparation samples.

                     Staff recommends BKD, LLP  of Dallas, Texas.

 

BACKGROUND INFORMATION: 

                     The City Charter requires an independent audit to be made of the books of account, records, and transactions of all administrative departments of the City at least once yearly.

                     The Government Finance Officers Association recommends the use of request for proposal to obtain professional auditing services.

                     The last solicitation for professional auditing services was done in 2005, which Weaver, LLP was selected.

                     The contract with Weaver, LLP was being renewed on an annual basis as allowed by the City purchasing policy.

                     For transparency, market value and to follow GFOA best practices, staff chose to solicit for proposals.

                     BKD, LLP Background

o                     National firm serves more than 400 governmental entities

o                     Dallas office serves several Texas municipalities including:

§                     El Paso, Lubbock, North Richland Hills, Greenville, Bedford, and Roanoke - all receiving the GFOA Certificate of Excellence in Financial Reporting

o                     Extensive knowledge and experience with airports

§                     Dallas office - Lubbock and El Paso International Airports, Shreveport Regional, Greenville Municipal, and San Diego County  Regional Airport Authority

§                     Other BKD offices - Indianapolis, Minneapolis-St. Paul, Denver, Oklahoma City, and Kansas City International Airports.

 

FINANCIAL SUMMARY: 

                     Annual fees for audit and CAFR preparation services will be $87,200 which is a  17% decrease from the prior fiscal year audit fees.

                     It is a 3 year contract with an optional two-year renewal.

o                     Proposal includes a 3% fee increase in the second and third years

o                     Renewal period fees to be negotiated at renewal

 

BOARD OR COMMISSION RECOMMENDATION:   N/A