HomeMy WebLinkAbout101723-3.2
FINANCE COMMITTEE MEMORANDUM 3.2
TO: Mayor and Town Council October 17, 2023
SUBJECT: Consider authorizing a Contract Extension with the Pun Group for
auditing services for FY 2023/24 and 2024/25
BACKGROUND
The Town staff is currently in the process of scheduling for final audit for FY 2 2/23 and
is planning to work with the Town’s independent auditors, the Pun Group, to complete
the audits and prepare the Annual Comprehensive Financial Report (ACFR) for FY
2022/23. Funding to complete the ACFR was appropriated as part of the 2023/24
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.
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 2022/23, auditing costs for the Pun Group are estimated to total $49,900.00
including Single Audit services. For FY 2023/24 Single Audit services will be required,
as Capital Improvement Projects (ARPA) that involve federal grant, is ongoing.
It is recommended that the Finance Committee authorize the approval of contracts not to
exceed $49,900 per fiscal year with the Pun Group for audit services for FY 2023/2024
and FY 2024/25. This expense amount is consistent with the budgeted amount shown in
the yearly budget.
Finance Committee 2 October 17, 2023
Prepared by:
Lani Ha
Finance Manager/Treasurer
Approved by:
Joseph Calabrigo
Town Manager