HomeMy WebLinkAbout08 EXTENSION OF AUDITING SERVICES-~ • Agenda Item 8
AGENDA REPORT Reviewed:
°~~';~''
~, , ~, City Manager
Finance Director
MEETING DATE: JUNE 1, 2010
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PAMELA ARENDS-KING, FINANCE DIRECTOR
SUBJECT: EXTENSION OF AUDITING SERVICES
SUMMARY:
Due to the finance software conversion and the incorporation of business license
processing within the Finance Department, staff time is limited. Staff proposes a one
year extension with Macias Gini & O'Connell LLP, a California limited liability
partnership ("MGO") for auditing services for fiscal year ending June 30, 2010 due to
staff's limited time constraints.
RECOMMENDATION:
It is recommended that the City Council approves amendment no. 2 to the agreement
for auditing services with MGO.
FISCAL IMPACT:
Funds for the annual audit are appropriated with the adoption of the budget. Total
auditing services are not to exceed $61,000.
BACKGROUND:
The City entered into an agreement in March 2005 with Moreland & Associates
Accountancy Corporation (Moreland) for independent auditing services. Moreland was
purchased by MGO in 2007. MGO assumed all of Moreland's obligations under the
original contract. The Audit Commission has approved the one year agreement extension
with MGO, due to the extensive amount of staff time that would be required with a new
independent audit firm. In 2011, subsequent to the finance software implementation and
the incorporation of business license processing, the Finance Department will be seeking
requests for proposals for auditing services from independent audit firms.
Respectfully submitted,
G~~~ ~~~n~ ~ .
Pamela Arends-King
Finance Director
Attachment: Amendment No. 2 to Agreement for Auditing Services
AMENDMENT N0.2 TO AGREEMENT FOR AUDITING SERVICES
This Amendment No. 2 to Agreement for Auditing Services ("Amendment No. 2") is
entered into and effective this 2nd day of June, 2010, by and between the City of Tustin, a
California municipal corporation (the "City"), and Macias Gini & O'Connell LLP, a California
limited liability partnership ("MGO"). The City and MGO are sometimes hereinafter
individually referred to as "Party," and collectively referred to as the "Parties."
RECITALS
WHEREAS, on or about the 10th day of March, 2005, the City entered into an Agreement
for Auditing Services (the "Original Contract") with Moreland & Associates Accountancy
Corporation ("Moreland") for independent auditing services to the City; and
WHEREAS, the City, Moreland, and MGO entered into an Amendment to the Original
Contract on April 18, 2008, by which MGO assumed all of Moreland's obligations under the
Original Contract; and
WHEREAS, the Parties desire to extend the term of the Original Agreement to cover the
fiscal year ending June 30, 2010.
NOW, THEREFORE , it is mutually agreed upon by and between the Parties as follows:
SECTION 1. RECITALS.
The foregoing recitals are incorporated herein by reference as terms of this Amendment
No. 2.
SECTION 2. EXTENSION OF CONTRACT TERM.
The term of the Original Contract is hereby extended to include auditing services for the
fiscal year ending June 30, 2010. Said auditing services shall be provided by MGO for the not-
to-exceed amount of sixty-one thousand dollars ($61,000).
SECTION 3. FULL FORCE AND EFFECT.
Except as expressly modified herein, all terms and conditions of the Original Contract
shall be and remain in full force and effect.
706895.1
IN WITNESS WHEREOF, the parties have caused this Amendment No. 2 to be executed
by their respective duly authorized representatives on the date first set forth above.
CITY OF TUSTIN
A California municipal corporation
By:
Jerry Amante, Mayor
APPROVED AS TO FORM:
By:
Douglas C. Holland, City Attorney
MACIAS GINI & O'CONNELL LLP
By:
Name:
Title:
706895.1