Report Prepared by: Kuljit Singh, Deputy Finance Officer
Title
SUBJECT: Approval of a First Amendment to Professional Services Agreement with Eide Bailly LLP for Financial Auditing and Related Services for an Additional $14,000 for a Total not to Exceed Amount of $218,850
REPORT IN BRIEF
Considers approving a First Amendment to the Agreement with Eide Bailly LLP for Professional Auditing and Related Services for an additional $14,000 and a total not to Exceed the Amount of $218,850.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the First Amendment with Eide Bailly LLP for Professional Auditing and Related Services for an additional $14,000 and a total not to Exceed Amount of $218,850; and,
B. Authorizing the City Manager or Deputy 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 2022-23 Adopted Budget
DISCUSSION
The City Charter requires an annual audit of the City of Merced’s financial records by an independent auditor selected by the City Council. Federal and State agencies also require an independent audit due to the receipt of grant funding and to comply with covenants of several outstanding bond issues.
On March 21, 2021, the City Council approved a professional service agreement with Eide Bailly for a term of five years. 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.
During the audit process for Fiscal Year 2021-22, it was determined that due to the implementation of Tyler, additional procedures typically outside of the original scope were conducted by the auditors. An additional $14,000 was incurred for the additional services above annual services.
IMPACT ON CITY RESOURCES
No additional appropriation of funds is needed. Fiscal Year 2022-23 has sufficient funding to cover the additional $14,000.
ATTACHMENTS
1. First Amendment to Agreement for Professional Services
2. Original Agreement for Professional Services