Title
Staff Report for a City of San Leandro City Council Resolution Approving Amendment No. 2 to the Consultant Services Agreement between the City of San Leandro and Maze & Associates for Audit Services for the Year Ending June 30, 2021
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council authorize the City Manager to execute amendment No. 2 to the Consultant Services Agreement between the City of San Leandro and Maze & Associates (Maze) for audit services for the year ending June 30, 2021.
BACKGROUND
The City originally entered into an agreement with Maze following a request for proposal process. The resulting agreement covered three years with two single-year options. Two subsequent agreements extended Maze’s auditing services through June 30, 2019.
An Amendment to the Agreement with Maze is recommended not only for its extensive auditing and consulting experience with municipalities and other non-profits, but also Maze’s broad private sector experience. The firm has both municipal and private sector experience that allows it to remain current with best practices and the latest Governmental Accounting Standards Board (GASB) Pronouncements.
Analysis
The annual independent audit is submitted to the City Council in accordance with Section 555 of the City Charter. GASB recommends the financial reports be completed in the Comprehensive Annual Financial Report (CAFR) format. The CAFR and related financial statements fully disclose the financial conditions of the City and of the other reporting units.
Maze provided the following services to the City over a number of years:
• Audit of the basic financial statements, preparation of Memorandum on Internal Control including assistance with the preparation of the Annual Financial Statement;
• Audit of the Successor Agency to the Redevelopment Agency and footnote disclosures included in the City’s basic financial statements;
• Testing of one major program for compliance with the Single Audit Act and applicable laws and regulations and issuance of our reports;
• GANN Appropriation Limit review and issuance of report;
• Measure B Compliance Report;
• Measure BB Compliance Report;
• Testing of compliance for the Transportation Development Act Programs and preparation of required report; and
• Audit of the Vehicle Registration Fee Program (VRF) for funds received from the Alameda County Transportation Commission and issuance of our report.
In addition to the various audit reports, Maze will assist the Finance Department with preparation of the Annual Report of Financial Transactions for the City, Annual Report of Financial Transactions for the Special District Report, and the Annual Street Report.
Maze has provided excellent service to the City and consistently ensures that the City’s records are audited thoroughly and provide a sound opinion on whether the City’s financial records are fairly presented. Maze is also required to test the soundness of the City’s financial internal control procedures.
The Finance Department has experienced a high level of turnover in key management and accounting positions over the last few years and therefore it is highly beneficial for the City to retain the experience and knowledge of Maze for one additional year. The Department is planning to proceed with a new Request for Proposals for audit services commencing in FY2021-2022.
Maze currently has 72 municipal clients including the cities of Belmont, Brisbane, Burlingame, Cupertino, Daly City, Half Moon Bay, Larkspur, Livermore, Milpitas, Morgan Hill, Pacifica, San Bruno, San Carlos, Santa Clara, Sausalito, Sutter Creek, and Sunnyvale.
Maze’s one-year proposal for audit services, along with the three special, mandated reports, totals $95,680.
Previous Actions
The City Council previously approved agreements with Maze & Associates in 2011, 2016, and 2018. The City Council previously approved Amendment No. 1 in 2020.
Fiscal Impact
Maze has agreed to a fixed cost of $95,680 for the Fiscal Year 2020-2021 audit and the three special, mandated financial reports. No additional budget is required to fund these services. Additional costs may be necessary if the scope of service increases at City direction.
Budget Authority
The FY2020-2021 General Fund budget for the Finance Department includes $96,000 in existing appropriations in account 010-12-052-5120 to cover audit services.
ATTACHMENT
Attachment to Related Resolution
Amendment No. 2 to Consulting Services Agreement between the City of San Leandro and Maze & Associates
PREPARED BY: Susan Hsieh, Finance Director