HomeMy WebLinkAboutSummary FormRE.4
Date: 1/10/2008
AGENDA ITEM SUMMARY FORM
f,u,E tD: Og- coo 33
Requesting Department: Finance
Commission Meeting Date: 1/24/2008 District impacted:
Type: Ej Resolution Ordinance Emergency Ordinance n Discussion Item
n Other _ _
Subject: Amendment #1 to the External Auditing_Services Agreement
Purpose of Item:
A Resolution authorizing the execution of Amendment #1 to the Professional Services Agreement
with McGladrey& Pullen, LLP awarded pursuant to Resolution No. 07-0543, adopted September 27,
2007, as amended, to increase the compensation amount for the first year of the contract not to exceed
$50,000.00, from $380,000 to $430,000, for a total contract amount not to exceed $1,230,000 for the
provision of External Auditing Services
Background Information:
On August 2"d, 2007, the Purchasing Department issued Request; for Proposals (RFP) No. 32050 for
the provision of External Auditing Services. The Miami City Commission on September 27, 2007,
enacted Resolution No. 07-0543 by selecting the firm of McGladrey & Pullen, LLP; and, authorizing
the City Manager to negotiate and execute a Professional Services Agreement with McGladrey &
Pullen, for a three year period, in an annual amount not to exceed $380,000, $390,000, and $410,000
for each respective contract year for a total contract amount not to exceed $1,180,000. The
Department of Finance requires an increase to the contract due to the fact that Professional
Accounting and Auditing Standards require auditors to be comfortable with the opening balances of
the entity they are auditing.
*CONTINUED ON ATTACHED PAGE
Budget Impact Analysis
No Is this item related to revenue?
Yes Is this item an expenditure? if so, please identify funding source below.;
General Account No: 00001.161000.532000.0000.00000
Special Revenue Account No:
CIP Project No:
No Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
Final Approvals
£SIGN AND _DATE),
CEP Budget_ d
If using or rcecivink cnpilnt funds
Grants
Purchas ng
Chief
Risk Manageme
Dept. Directo
City Manager
rThe City anticipated that the prior year auditors (Rachlin Cohen & Holtz) would make the prior year
workpapers available for review — as is customary when switching auditors. However, RCH is,
withholding those workpapers due to the fact that they feel that the City owes them additional monies
which the City Commission denied back in October of 2007.
As a result of not being able to obtain the workpapers, the current auditors (McGladrey & Pullen)
must perform additional procedures on the FY2006 ending balances in order to become comfortable
'with the opening FY2007 balances for the current year audit.
This additional audit work will require 340 hours of time by the current auditors as well as additional
time on the part of the Finance Department, since now we need to re -focus our efforts to recreate the
work that was performed last year. The estimated cost by the current auditors is approximately
$50,000. Additionally, the completion of the audit will be delayed by about 60 days and the City will
be in jeopardy of losing its Certificate of Excellence in Financial Reporting unless we are successful
at obtaining a filing extension.