HomeMy WebLinkAbout101921-03.2IDANVILLE FINANCE COMMITTEE MEMORANDUM 12
TO: Mayor and Town Council October 19, 2021
SUBJECT: Authorize a Contract Extension with the Pun Group for auditing services
for FY 2021,/22 and 2022/23
BACKGROUND
The Town staff is currently in the process of scheduling for final audit for FY 20/21 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 2020/21. Funding to complete the CAFR was appropriated as part of the 2021/22
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 2020/21, auditing costs for the Pun Group estimated to total $45,900.00 with no
Single Audit services. For FY 2021/22 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 2021/2022
and FY 2022/23. This expense amount is consistent with the budgeted amount shown in
the yearly budget.
Prepared by:
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Lani Ha
Finance Manager/ Treasurer
Approved by:
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JJ'SphPCalabrigo
Manager
Finance Committee 2 October 19, 2021