DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott, CPA, Deputy Chief Financial Officer
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Second and Final Renewal of the Independent External Audit Services Contract
SUMMARY:
An Ordinance approving and authorizing execution of the Second and Final Renewal of the Audit Services Contract with BKD, LLP, to provide independent audit services to the City for Fiscal Year 2021, for a total fee not to exceed $1,114,000.00. Funding in the amount of $279,590.00 is available from the FY 2021 General Fund Budget. Funding for subsequent fiscal years is subject to City Council approval of the annual budget.
BACKGROUND INFORMATION:
On June 15, 2017, Ordinance Number 2017-06-15-0450 was passed executing an external audit services contract with Grant Thornton, LLP (Grant Thornton) to provide independent audit services for fiscal years ending September 30, 2017, 2018 and 2019. The contract also permitted for two separate one-year extensions for fiscal years 2020 and 2021.
On June 18, 2020, Ordinance Number 2020-06-18-0423 was passed assigning all of Grant Thornton's right, title, and interest in the independent audit services contract to BKD, LLP effective from and after April 1, 2020, with BKD having acquired a portion of Grant Thornton's tax and audit practice in Texas, Oklahoma, and Missouri. This ordinance also executed the first extension of the audit services contract with BKD to provide independent audit services for fiscal year ending September 30, 2020.
A briefing was provided to the Audit & Accountability Committee on April 20, 2021 recommending exercising the second and final extension to BKD, LLP with an amendment to increase the fee. The contract includes a base fee for fiscal year 2021 of $970,000 that only covers eight single audit programs tested across the state and federal grants. Due to the continued receipt of COVID-19 grant funds, the Finance department estimates the City will see a significant increase in...
Click here for full text