Report Prepared by: Kuljit Singh, Deputy Finance Officer
Title
SUBJECT: Approval of a Second Amendment to Professional Services Agreement with Eide Bailly LLP for Financial Auditing and Related Services for an Additional $15,000 for a Total not to Exceed Amount of $233,850
REPORT IN BRIEF
Considers approving a Second Amendment to the Agreement with Eide Bailly LLP for Professional Auditing and Related Services for an additional $15,000 and a total not to exceed the amount of $233,850.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Second Amendment with Eide Bailly LLP to include audit of Prop 64 Public Health & Safety Grant Program Cohort 2 for an additional $15,000 and a total not to Exceed Amount of $233,850; and,
B. Authorizing the City Manager to execute all necessary documents.
Body
ALTERNATIVES
1. Adopt the motion as recommended by staff; or
2. Modify the action (specify in motion); or
3. Deny the action.
AUTHORITY
Section 1118 of Article XI of the Charter of the City of Merced.
CITY COUNCIL PRIORITIES
As provided for in the 2024-25 Adopted Budget.
DISCUSSION
In May 2021, the City was awarded $885,546 from the Board of State and Community Corrections (BSCC) and the Proposition 64 Public Health & Safety Grant Program Cohort 2 for a three-year pilot program, in partnership with Merced County Probation and Behavior Health and Recovery Services Departments, to provide prevention and early intervention services to the youth identified through middle schools and high schools by an Early Intervention Deputy Probation Officer or School Resource Officer.
At the end of the Grant Cycle, the City is required to provide the BSCC with a program-specific compliance audit that covers the three-year service delivery period of the Prop 64 Cohort 2 grant (May 1, 2021 to October 31, 2024). The audit report will be due no later than April 30, 2025. The program-specific compliance audit is required to be performed by an independent auditor and the audit expense will be reimbursed with grant funds for actual costs up to $25,000.
On March 21, 2021, the City Council approved a professional service agreement with Eide Bailly for a term of five years to complete annual citywide audit as required by the Charter. The scope of work included auditing the financial statements and performing some additional auditing-related services for the fiscal years ending 2021 through 2025. The original contract amount was not to exceed $204,850. An additional, $14,000 was approved with the first amendment which included additional audit services due to Tyler ERP implementation. Amendment two, includes completing the Prop 64 audit services for $15,000 as well as some contract language changes requested by Eide Bailly. The total agreement with Eide Bailly will increase to $233,850.
IMPACT ON CITY RESOURCES
No additional appropriation of funds is needed. Fiscal Year 2024-25 has sufficient funding through the grant budget in Fund 1018 Parks and Community Services to cover the additional $15,000 which will be reimbursed by BSCC.
ATTACHMENTS
1. Second Amendment to Agreement for Professional Services
2. Eide Bailly Proposal for Prop. 64 Audit Services
3. First Amendment to Agreement for Professional Services
4. Original Agreement for Professional Services