HomeMy WebLinkAboutItem 8.4 Appoint CC Ad Hoc Audit Review G~~~ OE DUe~y
~9' STAFF REPORT CITY CLERK
~ C~ ~ CITY COUNCIL File #610-40
O`~rF~OR~~
DATE: October 4, 2011
TO: Honorable Mayor and City Councilmembers
FROM: Joni Pattillo, City Manager ~ ~o
SUBJECT: Confirmation of Appointment of City Council 2011 Ad-Hoc Audit Review
Committee
Prepared by Paul S. Rankin, Administrative Services Director
EXECUTIVE SUMMARY:
The independent auditors from the firm of Caporicci and Larson, Inc. (a subsidiary of Marcum,
LLP) have scheduled their field work necessary to complete the Comprehensive Annual
Financial Report (CAFR) for the year ending June 30, 2011. The City Council will consider the
establishment of an Ad Hoc Committee, comprised of two City Council Members, to review the
audit process and final report with the Auditors. The Committee will also review
recommendations for a new audit engagement which will begin with the financial reporting
period ending June 30, 2012.
FINANCIAL IMPACT:
The cost of the audit has been included in the City Council activity of the Fiscal Year 2011-2012
Budget.
RECOMMENDATION:
Staff recommends that the City Council confirm the Mayor's appointment of Vice Mayor Kevin
Hart and Councilmember Eric Swalwell as the 2011 Ad-Hoc Audit Review Committee that will
serve for a, limited time. The Committee will meet with the City Auditors to review and discuss
the audit report for the period ending June 30, 2011.
Submitted By Reviewed By
Administrative Services Director Assistant City Manager
Page 1 of 2 ITEM NO. 8.4
DESCRIPTION:
The independent auditors from the firm of Caporicci and Larson, (now a subsidiary of Marcum,
LLP) have scheduled to begin the field work for the City Audit the week of October 17, 2011.
The Auditing Standards Board (ASB) establishes required protocols to be followed by
independent Auditors. This governing body issues their directives in documents referenced as
the Statement on Accounting Standards (SAS), which are applicable to both private and
governmental entities.
These standards require that the Auditors communicate directly with those charged with
governance. At a future City Council Meeting, after the Ad-Hoc Audit Review Committee has
had an opportunity to review and discuss the report with the Auditors, Staff will prepare an
agenda item for action by the entire City Council.
In addition to reviewing the current audit results, the Ad-Hoc Committee will also participate in
the review of recommended firm for future audits. The completion of the Audit for the period
ending June 30, 2011 also coincides with the end of the current two-year engagement of
services from Caporicci and Larson. The audit service agreement was extended to allow the
City to get beyond the implementation of the new Finance system. Staff will be soliciting
proposals from firms which provide municipal government auditing services. The current firm
would not be precluded from participating in the proposal process. The selection process is
expected to identify a firm to perform services for a five year audit period beginning with the
period ending in June 2012. The full City Council will consider the recommendation of the Audit
firm by March of 2012.
Last year the Ad-Hoc Audit Review Committee was comprised of Mayor Tim Sbranti and
Councilmember Kasie Hildenbrand. Mayor Sbranti has recommended the appointment of Vice
Mayor Kevin Hart and Councilmember Eric Swalwell to serve as the 2011 Ad-Hoc Audit Review
Committee.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
A copy of the Staff Report has been provided to Ahmed Badawi, Partner, Caporicci & Larson,
Inc.
ATTACHMENTS: None
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