Item Coversheet

Item Number 15.

  

City Council 
Staff Report


Subject:

Approving a Contract with Chavan and Associates for Audit Services and Authorizing the City Manager to Execute the Agreement



Date:May 24, 2022


Submitted By:

Ted Williams, Accounting Supervisor

Daniel Choe, Deputy Director of Administrative Services



Department:Administrative Services - Finance

Staff Recommendation:

Adopt a Resolution of the City Council of the City of Rocklin Approving a Contract with Chavan and Associates for Audit Services and Authorizing the City Manager to Execute the Agreement

BACKGROUND:

Rocklin Municipal Code Section 2.28.030 requires an annual audit of all City financial transactions with an independent auditor. The current independent audit services contract was executed over seven years ago triggering staff to issue a new Request for Proposal (RFP) for Audit Services.

 

On March 14, 2022, the City issued an RFP for Audit Services for the fiscal years ending June 30, 2022, 2023, and 2024, with the option to extend two additional one-year terms. The RFP was published on the City website and multiple trade websites. Two proposals were submitted.

Finance staff evaluated the two proposals on the basis of communication style, quality, experience/qualifications, approach to audit services, ability to meet the City’s requirements, and cost. After a thorough review and discussion, staff recommends that the contract be awarded to Chavan and Associates. Chavan and Associates is the City’s current auditor and has been the City’s auditor since Fiscal Year (FY) 2014/15. The City has been very happy with the firm’s work. To remain compliant with audit regulations, the firm will provide a different partner to lead their engagement with the City.

The total contract not-to-exceed amount is $123,250 for the initial three-year term.

FY 2021/22 - $40,000

FY 2022/23 - $41,000

FY 2023/24 - $42,250

 

The costs for the two optional years are:

FY 2024/25 - $44,250 (optional year 1)

FY 2025/26 - $45,500 (optional year 2)


Fiscal Impact:
Sufficient funds are available in the Administrative Services Department's operating budget to award the contract.
ATTACHMENTS:
Description
Resolution
Resolution Exhibit A - Agreement with Chavan and Associates
This Staff Report has been reviewed by the City Attorney for legal sufficiency and by the City Manager for content.
The Finance Department has reviewed this staff report and certifies that budgeted funds are available, unless a budget amendment is being requested as part of this action item.