Title
Consider approving Resolution No. 2024-136 authorizing the City Manager to execute a professional services agreement with Forvis Mazars, LLP, for Financial Audit Services for Fiscal Year-End September 30, 2024 in the amount of $119,500; and take appropriate action.
Body
REQUESTOR:
Finance, Fleet, and Facilities Department
BACKGROUND:
The Texas Local Government Code (§103.001) requires City management to present a draft of annual audits of municipalities. The City Charter (Sec. 2-18) requires an annual audit of the books of account, financial records, and other evidence of transactions by a certified public accountant within 120 days of the end of the fiscal year. The Annual Comprehensive Financial Report (ACFR) includes all the City's funds, blended component units, and joint ventures. It complies with the accounting requirements established by the Governmental Accounting Standards Board (GASB).
DISCUSSION:
Staff is recommending that the City Council execute a Professional Services Agreement with Forvis Mazars, LLP, in an amount not to exceed $119,500 for audit services related to the Annual Comprehensive Financial Report (ACFR), Annual Financial Assurance to Texas Commission on Environmental Quality (TCEQ), and Schedule of Federal Awards (grant reporting). The service agreement also includes reporting software license renewal and optional quotes for assistance with preparation of government-wide entries in the ACFR, as well as calculations with the Governmental Accounting Standards Board (GASB) 68, 75, 87, 94, and 96.
Staff recommends Forvis Mazars, LLP due to the firm’s level of expertise and strong professional relationship with the outside, objective Certified Public Accounting firm. This agreement is a price decrease of $9,000 from FYE 2023’s contract due to the removal of GASB 94 and 96 implementation.
For fiscal year-end (FYE) September 30, 2017, we approved the Request for Proposal for independent audit services from Grant Thorton LLP, which continued through FYE 2019. For FYE 2020 and 2021, we retained the services of BKD, LLP, and for FYE 2022 and 2023, we retained the services of Forvis Mazars, LLP (previously FORVIS, LLP). The continuation of audit services with Forvis Mazars, LLP for FYE 2024 will provide a significant benefit to staff that is well acquainted with our operations and controls, which can be invaluable in identifying trends and anomalies. Forvis Mazars, LLP provides experienced audit teams with deep knowledge and understanding of governmental reporting and our specific accounting and financial reporting software that has worked well with the new pronouncements from GASB.
FISCAL IMPACT:
Budgeted Financial Impact: $119,500 in the proposed 2024-2025 budget
DISTRICT:
Citywide
POSSIBLE COUNCIL ACTION:
1. I move to approve Resolution No. 2024-136 as presented.
2. I move to approve Resolution No. 2024-136 with modifications.
3. I move to table this item for further review and discussion.
ATTACHMENT(S):
1. Resolution No. 2024-136
2. Forvis Mazars Professional Services Agreement