(14)AR 060507 Audit Contract - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For the City Council, Colton Utility Authority and Redevelopment Agency Meeting of June 5, ZUU7 TO: Honorable Mayor and Council Members, Honorable Agency Chairperson and Board Members, And Honorable Chairperson and Utility Authority Members FROM: Dilu de Alwis, Finance Director SUBJECT: Extension of audit contract with Lance, Sol and Lunghard DATE: May 29, 2007 BACKGROUND: Every year the city is audited by an independent accounting firm in accordance with generally accepted auditing standards. On May 7, 2002, Council approved a professional services contract with the audit firm of Lance, Sol and Lunghard with the intent to contract for three years of service (fiscal years 2003-04, 2004-05 and 2005-06). This contract also included an option to renew for fiscal years 2006-07 and 2007-08. DISCUSSION/ANALYSIS: As Lance, Sol and Lunghard have successfully completed the last three audits to our satisfaction, staff recommends that Council approve the two-year extension at this time. Staff will solicit a formal "Request for Proposals" at the end of this period for the succeeding fiscal years. FINANCIAL IMPACT: Funds for this engagement are included in each year's budget. The proposed fee for the two years in question is as follows: Fiscal Year ending June 30, 2007 $69,694 Fiscal Year ending June 30, 2008 $71,725 The following proposed fee schedule details the amounts charged to professional services account for each fund: Engagement Service Fund 2006-2007 2007-2008 City of Colton 100 $34,530 $35,566 Redevelopment Agency for the 886 $ 9,835 10,130 City of Colton Rancho Mediterrania 886 $ 2,623 2,701 Enterprise Funds (1/3 each) 520/521/522 $ 7,911 8,149 Single Audit 100 $ 4,131 4,254 Child Care 206 $ 4,131 4,254 RDA Controllers Report 886 $ 2,732 2,814 Report Reproduction 100 $ 1,803 1,857 GASB 34 assistance 100 $ 2,000 2,000 TOTAL COMPENSATION $69,694 $71,725 ITEM #14