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ITEM NO. 11f |
TOWN OF PRESCOTT VALLEY
STAFF REPORT
STAFF REPORT
DATE: 10/22/2026
TO: Mayor & Town Council
THROUGH: Gilbert Davidson, Town Manager
FROM: Mike Townsend, Interim Finance Director
DEPARTMENT: Finance
AGENDA TYPE: New Business
SUBJECT: Abdo Financial Solutions Agreement Change Order, Professional Accounting Support Services - Consideration & Possible Action (Approve) [Mike Townsend, Interim Finance Director]
TO: Mayor & Town Council
THROUGH: Gilbert Davidson, Town Manager
FROM: Mike Townsend, Interim Finance Director
DEPARTMENT: Finance
AGENDA TYPE: New Business
SUBJECT: Abdo Financial Solutions Agreement Change Order, Professional Accounting Support Services - Consideration & Possible Action (Approve) [Mike Townsend, Interim Finance Director]
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SUMMARY/BACKGROUND:
The Town of Prescott Valley Finance Department has been working with Abdo Financial Solutions to address significant staffing gaps. The vacant Finance Department positions are central to cash management, financial accounting, and audit preparation. The current Abdo contract addresses immediate operational and regulatory challenges that must be addressed to maintain continuity in essential financial functions.
In reviewing the tasks related to operational processes for the new self-insured health fund (and reviewing status of deliverables related to the annual audit), a Change Order is recommended to include additional tasks that need to be addressed to meet key objectives.
Abdo services are intended to meet three key objectives:
In reviewing the tasks related to operational processes for the new self-insured health fund (and reviewing status of deliverables related to the annual audit), a Change Order is recommended to include additional tasks that need to be addressed to meet key objectives.
Abdo services are intended to meet three key objectives:
- Catch up on audit-related work required for delivery of the Fiscal Year 2026 audit (delayed due to prolonged staff vacancies);
- Maintain ongoing cash management, monthly accounting, and continuing audit activities throughout the recruitment process for the vacant positions (critical to daily Town operations); and
- Support a smooth transition for new Finance Department staff (who will work alongside Abdo Financial Solutions to learn internal processes and procedures and assume responsibility for cash management, monthly accounting, and audit-related work).
RECOMMENDED MOTION:
Motion to approve the Abdo Financial Solutions Agreement Change Order for Professional Accounting Support Services (including a one-time cost increase of $70,600 and an ongoing monthly cost increase of $9,880) for accounting services. VOTE.
STAFF RECOMMENDATION:
Staff recommends approval of the proposed Abdo Financial Solutions Agreement Change Order for Professional Accounting Support Services.
FISCAL ANALYSIS:
The Change Order involves a one-time increase of $59,100 for audit deliverables, a one-time increase of $11,500 related to the Self-insurance Health Fund, and a monthly increase of $9,880 for additional accounting services. The total contract with the Change Order is $150,770 (one-time) and $41,290 recurring.
The funding to cover the work quoted by Abdo Financial Solutions is being taken from salary savings from vacant department positions. The FY 2026-27 annual appropriations for the three positions (wages and benefits) total $569,215...or $47,434 per month. Also, the current department budget includes appropriations for a new financial system that will not be moving forward given the current staffing turnover. As the vacancies are filled and the transition with Abdo training new staff takes place, there should be sufficient department appropriations to meet the planned processes.
The funding to cover the work quoted by Abdo Financial Solutions is being taken from salary savings from vacant department positions. The FY 2026-27 annual appropriations for the three positions (wages and benefits) total $569,215...or $47,434 per month. Also, the current department budget includes appropriations for a new financial system that will not be moving forward given the current staffing turnover. As the vacancies are filled and the transition with Abdo training new staff takes place, there should be sufficient department appropriations to meet the planned processes.