Title
External Audit Services for the Annual Comprehensive Financial Report (Ordinance S-48373)
Description
Request to authorize the City Manager, or his designee, to extend and allow additional expenditures under Contract 145008 with BKD, LLP., to conduct the FY 2021-22 financial statement audits and federal grant audits for the City Auditor Department. Further request authorization for the City Controller to disburse all funds related to this item. The additional expenditures will not exceed $579,250.
Report
Summary
The City of Phoenix Charter and Code require that the City Auditor Department arrange for an annual audit of the City's annual comprehensive financial report and the federal single audit. These audits must be conducted by one or more certified public accountants who are not City employees (external auditors). Due to changes in the Governmental Accounting Standards (i.e., GASB 87), limited staff resources for the dedicated on-going support of departments, and the need to focus staff resources on new reporting requirements for the Coronavirus Aid, Relief, and Economic Security (CARES) Act and American Rescue Plan Act (ARPA) funding, the Finance and City Auditor departments are recommending extending the contract with BKD, LLP for one year.
Contract Term
Upon approval, the contract term will be extended through June 30, 2023.
Financial Impact
Upon approval of $579,250 in additional funds, the revised aggregate value of the contract will not exceed $3,310,740. Funds are available in the City Auditor Department's budget.
Concurrence/Previous Council Action
The City Council approved:
- Contract 145008 (Ordinance S-43235) on Feb. 15, 2017;
- Payment Authority (Ordinance S-44629) on June 6, 2018;
- Payment Authority (Ordinance S-44902) on Aug. 29, 2018.
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton and the City Auditor Department.