Finance Highlights 2011 0603 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: June 3, 2011 TO: Finance Committee FROM: Stephen L. Hollister, City Manager BY: Tracy Vesely, Finance Director Carla Rodriguez, Deputy Finance Director SUBJECT: New Contract for Audit Services RECOMMENDATION Staff is providing this information to the F approval of the new audit firm contract with on June 20, 2011. lance Committee, and intends to bring the Maze and Associates to the full City Council BACKGROUND On March 1, 2011, The City of San Leandro solicited proposals from qualified CPA (Certified Public Accounting) firms to independently audit the City's financial statements for fiscal years 2010 -11 through 2012 -13. Vavrinek, Trine, Day & Co. LLP has conducted the City's financial statement audits for the past 5 years. As a best management practice, staff recommends changing audit firms in order to ensure continued independence between the City and the auditor's review of the City's financial statements, continued high quality and comprehensiveness of the audit work performed, as well as ensuring competitive pricing. Criteria Used for Selection The City received eight proposals for evaluation and conducted telephone interviews with each firm. Finance staff members conducted panel interviews with the top four firms. Criteria used in the selection process included the following; • Established public sector experienced with cities comparable to San Leandro. This includes guidance and recommendations with the latest GASB pronouncements such as GASB 54 - Fund Balance Components, Enterprise Fund and Redevelopment Agency Reporting and knowledge of compliance issues (e.g. grants); • Ability to provide performance and internal control recommendations; • Ability to provide post audit consulting services; • Active involvement with policy board updates and /or professional associations; • Effective planning skills before the audit, effective communication during the audit and the ability to work with City staff; • Level of senior partner /management involvement during the audit; and • Competitive pricing and overall service quality, etc.