Item #04
Date: January 3, 2023
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Contract with Richardson & Company, LLP for Fiscal Year 2023-2025 Audit Services Recommendation:
Pass a Motion to 1) authorize the City Manager, or designee to execute a three-year contract with Richardson & Company, LLP for Audit Services covering Fiscal Years 2022-23, 2023-24, 2024-25 with options to extend for two additional years and 2 ) pass Resolution 2023-XX approving the audit services and terms and conditions.
Rationale for Recommendation:
Richardson & Company, LLP (Richardson) passed a rigorous Request for Proposal (RFP) process to be the successful firm to provide Auditing Services for the City of Marysville.
Background:
Local governments are required to have audited financial statements for all transactions of the City in each fiscal year in accordance with Generally Accepted Government Accounting Standards (GASB). The audited financial statements are prepared to communicate the overall financial health of the City to those in charge with governance, state/federal oversight agencies, investors and the general public.
Marysville has been using the same auditing firm for the last five years to complete the annual audit per the current contract. It is best practice to go out to RFP every five years to gather bids for the best service to be provided to the City. This recommendation is the culmination of that process.
Discussion and Analysis
The Request for Proposal for Auditing Services was released in early November and posted on Marysville’s website as well as the California Society of Municipal Finance Officers website. The City received three applications from qualified applicants. Through a ranking process, the top two were invited to interview. After the review of proposals and the interview process , Richardson emerged as the successful firm.
Richardson is already familiar with the City of Marysville as they have been the City auditor for the past five fiscal years. In Fiscal Year 2023, mandatory audit partner rotation will occur resulting in a new managing auditor within Richardson which will provide a fresh set of eyes on its financials while Item #04
understanding of the City’s financial history. This rotation along with a thorough audit approach will focus on substantive testing of the City’s accounts. It is this detailed approach that will bring forward a strong audited fiscal statement for management and the City Council.
The RFP requested services for multiple financial documents include the City Audit, the Levee District Audit, the Gann Limit Review, the Federal Single Audit, and the State Controller’s Financial Transaction Report. The contract with Richardson is an all-inclusive maximum price by report. This will allow the City to utilize their services as needed for each report at an agreed upon price for the next three with an additional two year option.
Legal Review:
The contract with the Auditors has been reviewed by the City Attorney.
Fiscal Analysis:
This contract does not affect the current fiscal year as it is for audit service starting in Fiscal Year 2022-
23. The City Audit, Levee District Audit and Gann Limit Review for the FY22-23 financials will be $46,000 and subsequent years will be budgeted yearly as laid out in the attached contract.
Attachments:
1) Resolution 2023-XX
2) Professional Services Agreement with Richardson & Company, LLC