FOR THE COUNCIL MEETING OF JUNE 18, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Interim Director of Finance Xenia Bradford
SUBJECT: Independent Auditor Services Contract Approval
Description
The City Council will consider approving a professional services contract for independent Auditor services.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution authorizing a three -year agreement with CliftonLarsonAllen LLP, Certified Public Accountants, for professional auditing services for the fiscal years 2023- 24, 2024-25, and 2025-26 with an option to extend it up to two additional years.
BACKGROUND:
The City of Santa Maria is required to produce audits by an independent Auditor, Annual Comprehensive Financial Statements. In addition, the City is subject to the Single Audit requirements. The contract with the current Auditor, Moss, Levy & Hartzheim ends with the Fiscal Year 2022-23 audit. Per the City’s purchasing guidelines, audit requirements , and best practices, the City issued an Audit Services Request for Proposals (RFP) for a three-year contract with the option to extend for two additional years on December 1, 2023.
DISCUSSION:
On December 1, 2023, the Director of Finance and staff began a Request for Proposal (RFP) process for Auditing Services. The last RFP for Auditing Services was completed in 2023. Two proposals were received and reviewed by a designated team of finance staff. Review criteria included scores for firm credentials, staff credentials, audit approach, cost, and responsiveness to RFP. One of the proposals received was from the City’s current Audit Services provider, Moss, Levy & Hartzheim. The second proposal received is from CliftonLarsonAllen LLP. After careful consideration, the City wishes to exec ute a three-year contract with an option for an extension of up to two years with CliftonLarsonAllen LLP. The recommendation is based on evaluation of the criteria 2 mentioned above. In addition, Moss, Levy & Hartzheim have provided the City of Santa Maria with Audit services for over five years. It is recommended to change auditors after a five-year period.
ALTERNATIVE(S):
City Council could deny approval of the contract.
FISCAL CONSIDERATIONS:
The Audit services budget is established annually with each adopted budget as an ongoing, required expense.
IMPACT TO THE COMMUNITY:
An annual audit of the City’s financials is required by law. Independent audit benefits the community by ensuring proper financial controls.
ATTACHMENTS Attachment A – Professional Services Agreement with CliftonLarsonAllen LLP Attachment B – Final Audit RFP
Attachment C – CLA Proposal in Response to Audit RFP
Attachment D – CLA Letter re: Revised Timeline