HomeMy WebLinkAbout021820-03.1pANVILLE FINANCE COMMITTEE MEMORANDUM 3.1
TO: Mayor and Town Council
February 18, 2020
SUBJECT: Authorize a Contract Extension with the Pun Group for auditing services
for FY 2019/20 and 2020/21
BACKGROUND
The Town staff is currently in the process of scheduling for interim and final audit for FY
2019/20 and is planning to work with the Town's independent auditors, the Pun Group,
to complete the audits and prepare the annual Comprehensive Annual Financial Report
(CAFR) for FY 2019/ 20. Funding to complete, the CAFR was appropriated as part of the
2019/20 Operating Budget. However Finance Committee authorization is necessary in
order to execute a contract extension with the Pun Group.
DISCUSSION
The Town has been contracting with the Pun Group for audit services since FY 2012/13.
The State Controller's Office has established guidelines for how local government
agencies must perform their annual audits. While there are no requirements that dictate
the frequency with which local agencies must change or rotate independent auditing
firms, the State Controller requires that the engagement (managing) partner in charge of
the audit must be rotated a minimum of every six years, for a minimum of at least one
year. The current management partner assigned to the Town was most recently rotated
in FY 2018/19, and was overseeing his first Town CAFR. The Pun Groups practice has
been to rotate the staff assigned to performing the technical work needed to complete the
CAFR each year, in order to ensure that fresh eyes are viewing the Town's financials.
Prior to engaging the Pun Group in 2012/13, the Town used a total of four different firms
(Caporicci and Larsen, Markum, Maze and Associates and Parodi and Cropper).
For FY 2018/19, auditing costs for the Pun Group totaled $45,900.00 with no Single Audit
services. For FY 2019/20 Single Audit services may be required, depending on
expenditures spent on Capital Improvement Projects that involve federal grant.
It is recommended that the Finance Committee authorize the approval of contracts not to
exceed $49,500 per fiscal year with the Pun Group for audit services for FY 2019/20 and
FY 2020/21. This expense amount is consistent with the budgeted amount shown in the
yearly budget.
Prepared by:
Lani I Ia
Finance Manager/ Treasurer
Approved by:
os ph Calabrigo
wn Manager
Finance Committee 2 February 18, 2020