DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICT(S) IMPACTED: City wide
SUBJECT: Approval of External Independent Audit Services Contract
SUMMARY:
This ordinance authorizes the execution of a contract with the firm of Grant Thornton LLP to provide the City external independent audit and related services for fiscal years 2017, 2018, and 2019 for a total cost not to exceed $830,000 in year one, $860,000 in year two and $895,000 in year three, with an option to extend the contract, with City Council approval, for two (2) additional one (1) year periods.
BACKGROUND INFORMATION:
On January 30, 2017 the Finance Department released a Request for Proposal (RFP) for Independent Audit Services. Firms identified in the Central Vendor Registration (CRV), 2016 Business Journal Listing of San Antonio Accounting Firms, and those who had communicated with Finance of an interest in the RFP were invited to propose. In addition, the RFP was publicly advertised. The RFP contained the following major scope requirements for potential respondents:
* Prime/Subcontractor Relationship - The RFP required an Independent Audit Services Contract ("Contract") with a prime and at least 40% of the Contract award amount for subcontractor(s) who met the definition of a small Minority and/or Women-Owned Business Enterprise (M/WBE) as defined by the City's SBEDA Program.
* Mandatory Partner Rotation - In order to maintain Auditor Independence, Objectivity, and Credibility, the City has adopted a policy of mandatory rotation of audit partners (for the prime contractor) or a change in the lead audit firm every five years.
* Independence - Selected firm must comply with the independence standards and all other standards promulgated by the American Institute of Certified Public Accountants, General Accounting Office and any other standards promulgated by any authoritative body, as applicable to the performance of independent audit services.
Six proposals were received...
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