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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MARCH 17, 2015 <br />TITLE: <br />AMEND AGREEMENT WITH MACIAS GINI & <br />O'CONNELL, LLC, FOR COMPREHENSIVE <br />FINANCIAL AUDIT SERVICES <br />(STRATEGIC PLAN NO. 7, 5, f) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 18' Reading <br />❑ Ordinance on 2nd 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 an agreement with Macias Gini & <br />O'Connell, LLP (MGO), subject to non - substantive changes approved by the City Manager and <br />City Attorney, to exercise its option for MGO to provide comprehensive financial audit services to <br />include fiscal year ending June 30, 2015; for MGO to perform the necessary audit service relating <br />to the implementation of Governmental Accounting Standards Board (GASB) Statement No. 68; <br />and for MGO to provide an agreed upon procedure audit of the City's Indirect Cost Allocation in <br />accordance with the Office of Management and Budget (OMB) Final Guidance on Grant Reform. <br />DISCUSSION <br />On April 16, 2012 the City Council awarded a three -year contract to Macias Gini & O'Connell, <br />LLP to provide comprehensive financial audit services for the following periods: fiscal year 2011- <br />12 thru 2013 -14 and the option to renew annually for two succeeding years in an annual amount <br />not to exceed $208,000. The City is recommending MGO to continue to provide audit services in <br />order to increase staff's knowledge in development of effective and efficient financial statement <br />presentation and also due to their expertise in two new critical reporting areas. <br />During the three most recently completed fiscal years, MGO has enhanced City staff's knowledge <br />in developing and maintaining true, current and accurate financial statements for the City's <br />internal and external customers via their examination of the City's books and records and <br />auditing of the Comprehensive Annual Financial Report. MGO has also provided City staff <br />guidance regarding the impact to financial statements as a result of new accounting <br />pronouncements. <br />Additionally, in order to address the challenges faced by cost - sharing plan employers, the <br />American Institute of Certified Public Accountants ( AICPA) has been working closely with GASB. <br />As a result, in May 2014 technical guidance, commonly referred as a whitepaper, was prepared <br />by the AICPA State and Local Government Expert Panel (SLGEP) detailing accounting and <br />25A -1 <br />