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HomeMy WebLinkAbout042126-06.8TO: Mayor and Town Council April 21, 2026 SUBJECT: Resolution No 29-2026, authorizing the Town Manager to approve a contract with the Pun Group for auditing services for FY 2025/26 BACKGROUND Town staff is currently in the process of scheduling the audit and Annual Comprehensive Financial Report (ACFR) for FY 25/26. This will involve working with the Town’s independent auditors, the Pun Group, to complete the audits and prepare the ACFR. Funding to complete the ACFR was appropriated as part of the 2025/26 Operating Budget. The total contract amount necessitates Town Council authorization in order to execute a contract extension with the Pun Group for FY 25/26. DISCUSSION On November 18, 2025, the Town Council Finance Committee approved extending the contract for auditing services with the Pun Group for FY 25/26. Auditing costs for FY 24/25 were $49,900. For FY 25/26, auditing costs for the Pun Group are estimated to total $55,000 including necessary Single Audit services. For FY 25/26, Single Audit services will be required, as Capital Improvement Projects that involve federal grant funding are ongoing. It is recommended that the Town Council authorize approval of a contract for audit services with the Pun Group for FY 25/26, in an amount not to exceed $55,000. This cost is included in the Finance Division operating budget for 2025/26. PUBLIC CONTACT Posting of the meeting agenda serves as notice to the general public. FISCAL IMPACT Sufficient funds are budgeted and appropriated for this purpose in the Town’s 2025/26 Operating Budget. ADMINISTRATIVE STAFF REPORT 6.8 RECOMMENDATION Adopt Resolution No 29-2026, authorizing the Town Manager to approve a contract with the Pun Group for auditing services for FY 2025/26. Prepared by: Lani Ha Finance Manager/Treasurer Approved by: Tai J. Williams Town Manager Attachments: A – Resolution No. 29–2026 B – November 18, 2025 Memo to Finance Committee The Pun Group Contract 2 April 21, 2026 RESOLUTION NO. 29-2026 AUTHORIZING THE TOWN MANAGER TO APPROVE A CONTRACT WITH THE PUN GROUP FOR AUDITING SERVICES FOR FY 2025/26 WHEREAS, the Town of Danville prepares an Annual Comprehensive Financial Report; and WHEREAS, the Pun Group has provided high quality auditing services for the Town since FY 2012/13; and WHEREAS, sufficient funds have been appropriated in the Town’s 2025/26 Operating Budget; now, therefore, be it RESOLVED, by the Danville Town Council that the Town Manager is hereby authorized to execute, on behalf of the Town, a contract with the Pun Group not to exceed $55,000. APPROVED, by the Danville Town Council at a regular meeting on April 21, 2026, by the following vote: AYES: NOES: ABSTAINED: ABSENT: MAYOR APPROVED AS TO FORM: ATTEST: CITY ATTORNEY CITY CLERK Docusign Envelope ID: 6F49F5B4-D2AC-42D3-9FF2-78988F5C3D08 ATTACHMENT A TO:Mayor and Town Council November 18, 2025 SUBJECT: Consider authorizing a Contract Extension with the Pun Group for auditing services for FY 2025/26 and 2026/27 BACKGROUND The Town staff is currently in the process of scheduling for final audit for FY 24/25 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 2024/25. Funding to complete the ACFR was appropriated as part of the 2024/25 Operating Budget. Finance Committee authorization is necessary in order to execute a contract extension with the Pun Group for FY 2025/26 and 2026/27. 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 2024/25, auditing costs for the Pun Group are estimated to total $49,900.00 including Single Audit services. For FY 2025/26 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 2025/2026 and FY 2026/27. This expense amount is consistent with the budgeted amount shown in the yearly budget. FINANCE COMMITTEE MEMORANDUM 3.2 ATTACHMENT B Prepared by: Lani Ha Finance Manager/Treasurer Approved by: Tai J. Williams Town Manager Finance Committee 2 November 18, 2025