Report Prepared by: Teri Albrecht, Deputy Finance Officer
Title
SUBJECT: Contract with Badawi & Associates, Certified Public Accountants
REPORT IN BRIEF
Agreement for annual audit and related professional services with Badawi & Associates, Certified Public Accountants.
RECOMMENDATION
City Council - Adopt a motion approving the contract with Badawi & Associates, Certified Public Accountants; and 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 2015-16 Adopted Budget.
DISCUSSION
The City Charter requires an annual audit to be performed on the City of Merced's financial records by an independent auditor selected by the City Council. An independent audit is also required by Federal and State agencies, due to the receipt of grant funding, and to comply with covenants of several outstanding bond issues.
The five-year auditing contract with Gallina, LLP has expired and the Finance Department has solicited proposals from independent audit firms to perform the work. The work includes auditing the financial statements; and performing additional auditing and related services for the fiscal year ended June 30, 2016, with four subsequent fiscal year options.
Five firms submitted proposals for the engagement. The proposals were analyzed and ranked according to the evaluation criteria, which included mandatory elements, technical qualifications and cost/hours. The technical qualifications, which include expertise, experience, and audit approach, have a maximum of 60 points. The cost/hours has a maximum of 40 points. The proposals have been evaluated and scored for both technical qualifications and cost/hours, as follows:
Technical
Qualification...
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