AGENDA
ITEM
17 AGENDA STAFF REPORT
EB
CALEKICO
Her Callo Cout Peace Pier
DATE: May 18, 2022
TO: Mayor and City Council
APPROVED BY: Diego Favila, Interim City Manager f
PREPARED BY: Sandra L. Fonseca, Interim Finance Director SF SUBJECT: Approve an Extension of The Pun Group Accountants & Advisors Contract to Provide Annual Financial Audit Services for the City of Calexico for Fiscal Years Ended June 30, 2022, with Options for 2023 and 2024 Recommendation:
Recommend that the City of Calexico approve an extension of The Pun Group Accountants & Advisors contract to provide annual Financial Audit Services for the City of Calexico for Fiscal Year ended June 30, 2022, with options for 2023 and 2024. Recommend that the City Council authorize the Interim City Manager to executive any an all documents necessary to complete the transaction.
Background:
The Pun Group has been working for the City of Calexico for several years, providing financial audits and assistance in accordance with terms of the agreement. During the past years, the Firm's staff has worked closely with City staff and the City's contract representative.
The professional quality of this Firm's work is commendable and the continuity, familiarity and track record with the City of Calexico is excellent, all good reason to continue with this Firm.
Discussion & Analysis:
It would be ideal for the City of Calexico to continue with The Pun Group as they AGENDA are familiar with the financial struggles that the City of Calexico has faced, and the ITEM Firm has diligently provided guidance through their audits and recommendations. 17 Fiscal Impact:
$77,250 for FY 2022.
2. Optional $79,500 for FY 2023.
3. Optional $81,850 for FY 2024.
Coordinated with:
None.
Attachment:
Engagement Document for Audit Services Contract Extension with The Pun Group. 2 THE
PUN GROUP
ACCOUNTANTS & ADVISORS
May 5, 2022
City of Calexico
Ms. Sandra L. Fonseca, Interim Finance Manager
420 Heber Ave
Calexico, CA 92231
RE: Audit Services Contract Extension - Fiscal Year Ending June 30, 2022, with the option to extend for two (2) additional fiscal years
Dear Ms. Fonseca:
I would like to take this opportunity to thank you for the confidence and support the City of Calexico (the "City") has provided to us over the past years and present this letter for your consideration regarding extending The Pun Group, LuP's contract with the City.
We have developed an understanding of the City's operations that has aided us in providing quality Audit Services.
With that knowledge, we have been able to expand our audit efforts and provide observations that have assisted the City's staff. We have also demonstrated our ability to respond to requests of the City and our ability to deliver quality services. It is our understanding the City of Calexico has been satisfied with our efforts.
We would like to propose an extension of our Audit Services contract to include Fiscal Year Ending June 30, 2022, with the option to extend for two (2) additional fiscal years. The objective of our audits is to issue an opinion regarding the fairness of the presentation of the City's financial statements in accordance with generally accepted accounting principles. The proposed total all-inclusive maximum price (1)(2) is presented as follows:
FY 2022 $77,250
FY 2023 (Optional) $79,500
FY 2024 (Optional) $81,850
a abero programs de shined to be sajor bil be based on OM nitor Guidance The Engagemen team l asers is vi wile City anagement before starting Single Audit work.
2) Supplemental reports, audits, or agreed-upon procedures must be added in a written agreement prior to commencing audit work. The Firm and the City will discuss and approve the scope and associated costs of these tasks.
If the City agrees with the foregoing, please sign the copy of this letter in the space provided and return it to us.
We would very much like to continue our relationship with the City of Calexico and stand ready to provide the level of service and commitment to which the City has become accustomed. If you have any questions, please feel free to call me at (949) 777-8801.
Sincerely,
The Pun Group, LLP
Kenneth H. Pun, CPA, CGMA | Managing Partner
4660 La Jolla Village Drive, Suite 100, San Diego, California 92122 www.pungroup.cpa
City of Calexico
Audit Services Contract Extension
***
This letter correctly sets forth the understanding of the City of Calexico as described.
Acknowledged by:
City of Calexico
Signature
Name and Title
Date