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