November 7, 2023
Finance Department
DATE: November 7, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Sam Vaughn, Deputy Director-Office of Neighborhood
Safety
Jerry Chak, Accounting Manager
Subject:
Second Contract Amendment with Badawi and
Associates for Audit Services
FINANCIAL IMPACT: The contract amendment increased amount of $18,000 derives from the City’s Grants Fund (Fund 1006) as it is seeking inclusion for an audit of the California Violence Intervention and Prevention Grant Program. Funding to
cover auditing services is budgeted in the proposed
Fiscal Year (FY) 2023-2024 (Account Sting: 10612051-
400201-2BQ03).
PREVIOUS COUNCIL
ACTION:
July 11, 2023 – first amended contract approved.
March 17, 2020 – initial contract approval.
STATEMENT OF THE
ISSUE:
City Staff is seeking approval to amend its contract to include an audit of the City’s California Violence
Intervention and Prevention Grant Program for the period from October 1, 2020, to June 30, 2023.
AGENDA
REPORT
November 7, 2023
RECOMMENDED ACTION:
APPROVE a second contract amendment with Badawi
and Associates in the amount of $18,000, for a new total amount not to exceed $1,548,370, to provide an audit of the City’s California Violence Intervention and Prevention Grant Program, for the period from October 1, 2020, to
June 30, 2023 – Finance Department/ Office of
Neighborhood Safety (Andrea Miller/Mubeen Qader/Sam
Vaughn/Jerry Chak 510-620-6569).
DISCUSSION:
On March 17, 2020, City staff recommended, and the City Council approved a contract with Badawi and Associates to audit the City’s financial statements and financial statements of component entities for the Fiscal Years 2019-2020 to 2021-2022, with an option to extend the contract not to exceed a total of two additional fiscal years.
On July 11, 2023, City staff recommended, and the City Council approved an amended contract with Badawi and Associates to continue providing annual audit services to the City and its related entities for Fiscal Years 2022-2023 and 2023-2024, for an amount not to exceed $309,775 per fiscal year.
City staff is seeking a second contract amendment to the contract with Badawi and Associates to audit the City’s financial statements and financial statements of component entities, to include an audit of the City’s California Violence Intervention and Prevention Grant Program, administered by Board of State and Community Corrections, for the period from October 1, 2020, to June 30, 2023. The second amendment would increase the contract not-to-exceed amount by $18,000 from $1,530,370 to $1,548,370.
The California Violence Intervention and Prevention Grant was awarded on September 10, 2020, and approved by the Council on December 1, 2020. Through the grant, the City provided violence intervention, prevention, and suppression activities services throughout a three-year period.
Grant activity ended June 30, 2023, and as a requirement of the California Violence Intervention and Prevention Grant Program, a financial audit is required by a contracted financial auditor identified by the City after the program period ends. The audit and project evaluation are due by December 31, 2023.
DOCUMENTS ATTACHED:
Attachment 1 – Original Contract
Attachment 2 – First Amendment to the Contract
Attachment 3 – Proposed Second Amendment to the Contract