Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Consulting Services Agreement with KDC Accounting & Consulting, LLP for Preparation of the Annual Comprehensive Financial Report (ACFR) and Other Required Annual Financial Reports in an Amount Not-to-Exceed $125,000
Staffreport
COUNCIL PRIORITY
• Fiscal Sustainability and Transparency
SUMMARY
Staff recommend City Council approve a Consulting Services Agreement (CSA) with KDC Accounting & Consulting, LLP for accounting services necessary to prepare the Annual Comprehensive Financial Report (ACFR) and Other Required Annual Financial Reports as well as implement recommendations to improve internal controls.
The CSA is for a one-year term in an amount not-to-exceed $125,000 with the option to renew for up to two years.
RECOMMENDATIONS
Staff recommend City Council adopt a resolution to approve the CSA with KDC Accounting & Consulting, LLP for a one-year term in an amount not-to-exceed $125,000 with the option to renew for up to two years.
BACKGROUND
KDC Accounting & Consulting, LLP has previously provided lead support to the Finance Department in preparing the ACFR and other required annual financial reports due to significant turnover in the Finance Department. The City is finalizing the job description for a Senior Accountant that is expected to provide the competence and experience required to lead these efforts when filled.
Analysis
Staff recommend entering into an agreement with KDC Accounting & Consulting, LLP due to the firm’s expertise in governmental accounting and familiarity with the City’s systems, policies, and procedures. While the City has made strides in minimizing deficiencies in internal controls and producing a timelier ACFR, more support in this area is needed. The City has further acknowledged this as a critical area for improvement and initiated establishing a Senior Accountant classification. It is expected that after the position is established and after a successful recruitment, the need for external accounting services will diminish.
Legal Analysis
The City Attorney’s Office has approved the amendment to form and the consultant has agreed to the terms of the contract.
Financial Impacts
Sufficient funds are included in the Fiscal Year 2024-2025 Finance Department operating budget through salary savings associated with the vacant Senior Accountant position. Therefore, this Council action will not impact fund balance.
ATTACHMENTS
A: Resolution for KDC Accounting & Consulting CSA
B: KDC Accounting & Consulting CSA Scope of Work
PREPARED BY: Felicia Silva, Assistant Finance Director, Finance Department