Agenda No. 5.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | July 23, 2019 |
| Department: | Finance |
| Subject: | Resolution No. 19-R-86 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing the selection of Pattillo, Brown & Hill for financial audit services. (M. Brown/J. Walters) |
BACKGROUND
The existing auditing services contract with Armstrong, Vaughan & Associates ended after the completion of the FY 2017-18 audit and approval of the annual financial statement at the end of March 2019.
Staff published a Request for Proposals (RFP) for auditing services and received three responses. The Audit Committee consisting of Councilmember Davis, Councilmember Gutierrez, Councilmember Brown, City Manager Mark Browne, Assistant City Manager Brian James, Finance Director James Walters, and Assistant Finance Director Babett Martin, reviewed and scored the responses.
On July 9th, the scores were reviewed by the committee and it was unanimous to recommend a contract with Pattillo, Brown, & Hill to the full council for approval.
Staff published a Request for Proposals (RFP) for auditing services and received three responses. The Audit Committee consisting of Councilmember Davis, Councilmember Gutierrez, Councilmember Brown, City Manager Mark Browne, Assistant City Manager Brian James, Finance Director James Walters, and Assistant Finance Director Babett Martin, reviewed and scored the responses.
On July 9th, the scores were reviewed by the committee and it was unanimous to recommend a contract with Pattillo, Brown, & Hill to the full council for approval.
GOAL
To have an agreement with an independent audit firm to provide financial audit services.
COMMUNITY BENEFIT
An independent review of a third party auditing firm will help ensure proper financial processes are in place to reduce the risk of fraud and accurately portray the City's financial condition to all stakeholders and citizens.
SUMMARY OF RECOMMENDED ACTION
Approve the proposal from Pattillo, Brown & Hill to provide financial audit services for a three-year term with an option to renew for a two-year term.
FISCAL IMPACT
This cost is approximately the same as with the previous vendor.
| City of Schertz Financial Audit (Year 1) | $55,000 |
| Schertz Economic Development Corporation (Year 1) | $6,000 |
| City of Schertz Financial Audit (Year 2) | $55,000 |
| Schertz Economic Development Corporation (Year 2) | $6,000 |
| City of Schertz Financial Audit (Year 3) | $55,000 |
| Schertz Economic Development Corporation (Year 3) | $6,000 |
| City of Schertz Financial Audit (Year 4) | $56,000 |
| Schertz Economic Development Corporation (Year 4) | $6,000 |
| City of Schertz Financial Audit (Year 5) | $56,500 |
| Schertz Economic Development Corporation (Year 5) | $6,000 |
RECOMMENDATION
Staff recommends the approval of Resolution No. 19-R-85 to accept the proposal from Pattillo, Brown & Hill.