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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />APRIL 16, 2012 <br />TITLE: <br />AWARD CONTRACT TO MACIAS GINI & <br />O'CONNELL, LLP FOR COMPREHENSIVE <br />FINANCIAL AUDIT SERVICES <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 151 Reading <br />? Ordinance on 2°d Reading <br />? Implementing Resolution <br />? Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute the attached agreement with <br />Macias Gini & O'Connell, LLP, subject to non-substantive changes approved by the City Manager <br />and City Attorney, for three years and the option to renew annually for two succeeding years in <br />an annual amount not to exceed $208,000. <br />DISCUSSION <br />Annually, the City of Santa Ana retains the services of an independent certified public accounting <br />firm to conduct the annual audit of the City's financial statements as well as federal and state <br />grant audits known as the single audit. The audits are conducted in accordance with auditing <br />standards recognized and accepted in the United States and applicable under the Government <br />Auditing Standards issued by the Comptroller General of the United States. The standard annual <br />audits include but are not limited to the examination of processes, internal controls, segregation <br />of duties, compliance of legal requirements, application of General Accounting Standards Board <br />(GASB) requirements, and validation that financials are presented in conformity with Generally <br />Accepted Accounting Principles (GAAP). <br />The City seeks new proposals every seven years. As such, On February 9, 2012, the City <br />conducted a formal Request for Proposal (RFP) to select a certified public accounting firm. The <br />audit firm will conduct the standard financial statement preparation and audit, the City State <br />Controller report, and the on-line attestation for Section 8 Housing. However, as a result of the <br />passage of AB1 x26 (redevelopment dissolution), staff has focused on selecting an audit firm with <br />a high level of experience in Redevelopment and demonstrated knowledge of AB1 x26. The firm <br />will provide guidance regarding compliance with Successor City Agency, Successor Housing <br />Agency and federal grants. <br />As a result of the recent scrutiny placed on public accounting firms, the City is seeking an audit <br />firm that is willing to add an analytical function that is higher than the basic standards accepted <br />25D-1