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Agenda Item: 15(a) |
Prepared By: Sharon Dangles, Interim Finance Director |
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Business: City Council Item |
Department: Finance |
Subject:
Title
Authorize the City Manager to Approve a Payment for FY24 Audit Services in the Amount of $109,190 which will Increase the Total to $187,190 - Sharon Dangles, Interim Finance Director
Body
BACKGROUND:
The Original Contract with CliftonLarsonAllen (CLA) for Fiscal Year 2024 was $70,000 for auditing services, $5,000 - $10,000 for each Single Audit dependent upon the nature and complexity required, and hourly billing rates by classification of staff level needed. During the audit, Mr. Kessler from CLA communicated there would be additional charges for out-of-scope items outside of the original contract. The potential additional charges were communicated to the Council Chairman, City Manager, and previous Finance Director; however, the amount of those charges could not be determined at that time.
The total invoice for $187,190 is included for your review listing a description of audit services provided showing a payment for $78,000. The standard audit per the contract was $70,000. There was a total of 3 Single Audits totaling $30,000 and $87,190 in out-of-scope charges. The out-of-scope charges are mainly due to grants, corrections of the Annual Comprehensive Financial Report (ACFR), Self-Insurance, and reperformance of procedures.
FUNDING SOURCE / FISCAL IMPACT: The additional funding for FY24 Audit Services is provided through a combination of the City Manager’s contingency account and Water and Sewer account available balances.
RECOMMENDATION: Authorize the City Manager to approve the payment for CliftonLarsonAllen in the amount of $109,190.
POTENTIAL MOTION: “I move to Authorize the City Manager to Execute a payment to CliftonLarsonAllen in the amount of $109,190 for FY24 Audit Services.”