Item Number: {{item.number}}
City Council / Board of Directors
Written Communications
Meeting of: December 5, 2023
Submitted By:
Sophie L. Smith, Deputy City Manager / City Treasurer
Carmen Cun, Assistant Finance Director
Subject:
Presentation to Award a Three (3) Year Contract to Badawi & Associates for Professional Auditing Services
Recommendation:
That the City Council / Board of Directors award a three (3) year professional services agreement to Badawi & Associates, Certified Public Accountants for Professional Auditing Services with two (2) one-year option terms based on performance.
Fiscal Impact:
The full contract cost for the initial three (3) years will be $386,209.00. The total costs for Audit Year 2023/24 Budget Year 2024/25 will be $124,950.00. The previous audit service contract cost for Audit Year 2022/23 was $144,953.00.
Breakdown of first year costs would be as follows:
Account Coding / Description Amount
1001500-52300 (Finance – Contract Services) $84,548.00
4100030-52300 (Water Admin – Contract Services) $17,015.00 4500125-52300 (Airport Operations – Contract Services) $23.387.00 Strategic Plan Goal:
Goal A. Financial Sustainability – Annual auditing and preparation of financial statements for the City, Victorville Water District, and Southern California Logistics Airport Authority assists the fostering of fiscal health through transparent external review and ensures compliance and consistency.
3 3
7 6
Background:
The City solicited a Request for Proposal (RFP) for Professional Auditing Services, Project JM24-024 in September 2023 for audit of its financial statements for the fiscal year ending June 30, 2024, and the two (2) subsequent fiscal years, with an option to extend the contract for two additional one-year terms based on performance. Per Government Code Section 12410.6 (b), the City is required to either change auditing firms every six (6) years or the auditing firm would be required to change auditing partners. The City process is to solicit an RFP at minimum every five (5) years.
Discussion:
Four firms submitted a proposal on October 12, 2023. The proposals were reviewed and scored on the various requirements expressed in the RFP. Once reviewed and scored, the review committee met and discussed the evaluations. The top-ranked firm of all members was Badawi & Associates, Certified Public Accountants (the “Firm”). Badawi & Associates submitted a cost proposal for five (5) years – a three-year contract plus two one-year options. The process was completed pursuant to Victorville Municipal Code
2.28.280 - Award of consultant/professional services contracts based upon competence.
Audit Year
2024 2025 2026 2027 2028
$124,950 $128,699 $132,560 $136,537 $140,633
The Firm was founded by Ahmed Badawi who has over 20 years of experience working with state and local governments with a special focus on cities. Badawi & Associates provides a full range of accounting services including audit, tax, and accounting. The members of the firm have many years of experience with a variety of governmental agencies and complexities and have performed financial and compliance audits covering the functions of the City and its entities.
Staff recommends that the City Council / Board of Directors award Badawi & Associates, Certified Public Accountants a three-year professional services agreement for Professional Auditing Services with two one-year options, with the initial three-year agreement for audit years 2024 through 2026, in an amount not to exceed, $386,209.00.
Sufficient funds will be budgeted in future budget years.
Staff remains available for any questions the Council may have.
Attachments: A. Addendums and Sealed Bid Proposal for Badawi & Associates, Certified Public Accountants
B. Final Badawi & Associates Agreement