Administrative
Report
H.19., File # 24-1635 Meeting Date: 10/15/2024
To: MAYOR AND CITY COUNCIL
From: STEPHANIE MEYER, INTERIM FINANCE DIRECTOR
TITLE
APPROVE A SECOND AMENDMENT TO THE AGREEMENT WITH LANCE, SOLL & LUNGHARD,
LLP FOR ACCOUNTING SERVICES AND TECHNICAL EXPERTISE RELATED TO COMPLIANCE
WITH GASB PRONOUNCEMENTS, FINANCIAL YEAR-END CLOSE, AND AUDIT PREPARATION FOR AN ADDITIONAL AMOUNT OF $125,000 AND TO EXTEND THE TERM TO DECEMBER 31, 2026
EXECUTIVE SUMMARY
The City engaged Lance, Soll & Lunghard, LLP (LSL) as a consultant on June 21, 2022 to assist with audit preparation, specifically anticipating the implementation of Governmental Accounting Standards Board (GASB) Statement 87, which changes the way that entities calculate the value of, and report on, the City’s lease agreements. On November 21, 2023 the contract was amended to extended the Agreement term, with no additional cost, to assist with GASB 96, and to support City staff through personnel transition.
LSL has provided valuable support to the City in this capacity, aiding in completing the City’s FY 2021 -22 audit and FY 2022-23 audits with minimal questions. The FY 2022-23 audit was completed with no findings and within the federal Single Audit deadline, despite a delay in audit start.
Staff recommends the City Council approve a second amendment with LSL for an additional $125,000 and extend the term to December 31, 2026 to provide the City with accounting and specialized technical support services related to the City’s annual financial statement preparation, including GASB implementations.
BACKGROUND
The Financial Services Department provides fiscal and other administrative support that allow the City of Redondo Beach to complete regular City operations and maintain compliance with various financial oversight agencies. Extending the Agreement with LSL will assist the Department by providing additional support and historical context as the City transitions to a new auditor and also assist staff with the preparation of supporting journals.
LSL will assist the City on a consultative basis to:
· Evaluate compliance with (GASB) pronouncements and completing FY 2023-24 calculations · Assist with financial year-end close and audit preparation · Review calculations and make recommendations as needed
H.19., File # 24-1635 Meeting Date: 10/15/2024
· Assist City staff with accounting inquiries on an ongoing basis, as needed.
LSL will invoice the City based on actual services provided. LSL’s technical assistance will provide critical support to the Financial Services Department staff to main on-time, thorough, and accurate audits. LSL has a strong history with the City and has provided value by completing similar work in the past two years.
These services are outside the scope of services for the City’s annual financial audit, which is currently being performed by CLA.
LSL is a public accounting firm located in Brea. It has provided services since 1929 and has demonstrated extensive experience with city government audits, including many clients in California.
COORDINATION
The City Attorney’s Office has reviewed and approved the Agreement as to form.
FISCAL IMPACT
Funding for the second amendment is available in the Financial Services Department’s FY 2024-25 operating budget.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - Second Amendment, Signature & Insurance - Lance, Soll & Lunghard, LLP · Agmts -First Amendment & Agmt - Lance, Soll & Lunghard, LLP