HomeMy WebLinkAbout05 EXTEND PROFESSIONAL SERVICES AGREEMENT FOR AUDIT SERIVCES WITH WHITE NELSON DIEHL EVANS LLPAgenda Item 5
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AGENDA
eviewed.AGENDA REPORT City Manager
Finance D4'reotor
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MEETING DATE: MAY 7, 2019
TO: MATTHEW S. WEST, CITY MANAGER
FROM: JOHN A. BUCHANAN, FINANCE DIRECTOR
JENNY LEISZ, DEPUTY DIRECTOR - FINANCIAL SERVICES
SUBJECT: EXTEND THE PROFESSIONAL SERVICES AGREEMENT FOR AUDIT SERVICES
WITH WHITE NELSON DIEHL EVANS LLP
SUMMARY:
The City's current independent auditor's agreement with White Nelson Diehl Evans LLP (WNDE)
California was for three years ending fiscal year 6/30/2018. The agreement allowed for the
extension of service for two subsequent fiscal years. Based on the satisfactory service WNDE
has provided, the Audit Commission discussed and approved the extension of
WNDE's agreement for fiscal years 2018/2019 and 2019/2020.
RECOMMENDATION:
Based on the advisement of the Audit Commission, it is recommended that the City Council approve
the extension of the professional services agreement for audit services with WNDE for fiscal years
2018/2019 and 2019/2020.
FISCAL IMPACT:
The auditing fees for fiscal year 2018/2019 are not to exceed $48,254, and for fiscal year 2019/2020
not to exceed $49,199. These amounts include AQMD audit fees of $1,020, which were not
applicable in the original 2016 agreement.
CORRELATION TO THE STRATEGIC PLAN:
Correlates with the City's Strategic Plan Goal C: Financial Strength, Item 3. The annual financial
audit examines the development and communication of a comprehensive set of financial policies
and their purpose to strengthen financial practices.
EXTEND THE PROFESSIONAL SERVICES AGREEMENT FOR AUDIT SERVICES WITH WHITE NELSON DIEHL
EVANS LLP
Page 2 of 2
DISCUSSION:
The City approved the original agreement with WNDE for fiscal year ending June 30, 2016, with the
recommendation of the Audit Commission. The agreement with WNDE allows for the extension of
services for two subsequent fiscal years. With the approval of the two-year extension, WNDE will
have provided five years of auditing services. It is the City's practice to consider changing auditing
firms every five years, therefore, when the WNDE agreement expires, staff will conduct a Request
for Proposals for auditing services for fiscal year ending 2020/2021.
nny Leisz
Deputy Director - Financial Services
9(.,c
Joh \ A. Buchanan
Finance Director
Attachment: Extension of Professional Services Agreement Audit Services
EXTENSION OF
PROFESSIONAL SERVICES AGREEMENT
AUDIT SERVICES
THIS EXTENSION OF PROFESSIONAL SERVICES AGREEMENT AUDIT
SERVICES ("Extension") is made and entered into this day of ,
2019 by and between the CITY OF TUSTIN, a California general law city ("City"), and White
Nelson Diehl Evans, LLP ("Firm").
RECITALS
A. On April 5, 2016, City and Firm entered into that certain Professional Services
Agreement Audit Services ("Agreement") pursuant to which Firm agreed to provide annual
auditing services to City.
B. All services required by the Agreement must be completed by no later than
June 30, 2019 for the financial statements for fiscal years 2015/2016, 2016/2017 and
2017/2018. Pursuant to Section 4.4 of the Agreement, the City may, at its sole discretion,
opt to extend the Agreement for two subsequent one-year terms to include financial
statements for fiscal years 2018/2019 and 2019/2020.
C. Per Section 3.1 of the Agreement, if the City exercises its option to extend,
total compensation shall not exceed Forty -Seven Thousand Two Hundred Thirty -Four
Dollars ($47,234.00) for the 2018/2019 audit, and shall not exceed Forty -Eight Thousand
One Hundred Seventy -Nine Dollars ($48,179.00) for the 2019/2020 audit (the "Extension
Maximum Amounts").
D. City desires to execute its option to extend the Agreement pursuant to Section
4.4 and subject to Section 3.1 of the Agreement.
NOW, THEREFORE, in consideration of the foregoing recitals, which are
incorporated herein by reference, the parties hereto agree as follows.
1. Extension of Term. Pursuant to Section 4.4 of the Agreement, the City
hereby exercises its. option to extend the Agreement for two subsequent one-year terms to
include financial statements for fiscal years 2018/2019 and 2019/2020. Unless earlier
terminated in accordance with Section 8.5 of the Agreement, all services required under -the
Agreement and subject to this Extension shall be completed by no later than June 30, 2021,
2. Compensation of Firm. Total compensation referred to in Recital C shall be
increased to include AQMD audit fees of $1,020, which were not applicable in the original
2016 agreement. Therefore, total compensation paid to Firm for the 2018/2019 audit shall
not exceed Forty -Eight Thousand Two Hundred Fifty -Four Dollars ($48,254.00). Total
compensation paid to Firm for the 2019/2020 audit shall not exceed Forty -Nine Thousand
One Hundred Ninety -Nine Dollars ($49,199.00).
3. Continued Force and Effect. Except as specifically modified herein, all
sections of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Extension as of the
day and year first written above.
ATTEST:
In
Erica N. Yasuda, City Clerk
APPROVED AS TO FORM:
A:
David E. Kendig, City Attorney
CITY OF TUSTIN
A California general law city
Charles E. Puckett, Mayor
WHITE NELSON DIEHL EVANS LLP
in
Title:
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