Authorize the Chair to sign Agreement 2024-08 with Richardson & Company LLP, not to exceed $15,900, to conduct an independent audit of the Yolo LAFCo financial statements for the fiscal years ending in 2024, 2023, and 2022

Authorize the Chair to sign the Agreement with Richardson & Company LLP.

For fiscal year 2024/25, the proposed Final LAFCo budget appropriates $15,000 under Professional Services for Auditing and Accounting Services. Although the fixed fee contract is not to exceed a maximum of $15,900, staff plans to prepare our own financial statements to be reviewed by the auditor, which reduces the cost to $15,000. Therefore, sufficient funds are budgeted for this contract and no fiscal impacts are anticipated.

A Request for Proposals was issued for auditing services in April 2024, and while there was interest expressed by several firms, we ultimately received only one proposal. Staff believes this is because we used Richardson & Company LLP last time, and they come in at a very competitive rate that is hard to beat. For the previous audit in 2021, LAFCo received four proposals and Richardson & Company LLP was selected as the top ranked firm based on their proposal, experience and price. The firm also has experience with the County's financial and pension system, working both with LAFCo and other agencies countywide. In 2018, Yolo LAFCo contracted with another auditing firm and did not experience an efficient process. Richardson & Company LLP has also performed two audits for Yolo LAFCo in the past, both prior to 2015.

The Government Code requires rotation of a local agency lead auditor every six consecutive years, but the same firm can be used if the lead person changes (Government Code section 12410.6.(b)). Yolo LAFCo has contracted with Richardson & Company LLP for the last three years, and this contract would amount to six consecutive years when completed. 

Per Yolo LAFCo Administrative Policies and Procedures Section 5.18, LAFCo shall have financial audits performed on a three-year cycle (i.e. the auditor reviews the prior three fiscal years at one time). In addition, the LAFCo Commission must authorize and execute contracts greater than $5,000 in accordance with LAFCo's Administrative Policies and Procedures Section 5.11.