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HomeMy WebLinkAbout04/27/2017 B A K E R S F I E L D Committee Members Staff: Chris Huot Councilmember, Andrae Gonzales, Chair Assistant City Manager Councilmember, Willie Rivera Councilmember, Ken Weir SPECIAL MEETING OF THE BUDGET AND FINANCE COMMITTEE Thursday, April 27, 2017 12:00 p.m. City Hall North – Conference Room A 1600 Truxtun Avenue, Bakersfield, CA 93301 The meeting was called to order at 12:00 p.m. 1. ROLL CALL Committee members Present: Councilmember, Andrae Gonzales, Chair Councilmember, Ken Weir Committee members Absent: Councilmember, Willie Riviera City Staff Present: Alan Tandy, City Manager Chris Huot Assistant City Manager Caleb Blaschke, Management Assistant – City Manager’s Office Joshua Rudnick, Deputy City Attorney Nelson Smith, Finance Director Randy McKeegan, Finance Supervisor Additional Attendees Present: Eric Xin, Brown Armstrong Melissa Cabezzas, Brown Armstrong Bryan Gruber, LSL CPA 2. ADOPT MARCH 2, 2017 AGENDA SUMMARY REPORT The Report was adopted as submitted. 3. PUBLIC STATEMENTS There were no public statements. /s/ Chris Huot   ____________________________________________ Budget and Finance Committee Meeting Agenda Summary Report - April 27, 2017 Page 2 4. NEW BUSINESS A. Discussion and Committee Recommendation Regarding Auditor Selections Process – Smith Finance Director Smith provided a summarization of the policies for audit reporting practices and selection of an audit services firm memorandum included in the packet. A Request for Proposal (RFP) for auditing services for the annual audit work for Fiscal Year 2016-17 with the option of up to four one year extensions was posted in March 2017, which resulted in 14 firms showing interest, two of which submitted proposals. Mr. Smith provided the following summarization of the two firms: Audit Firm Lance Soil & Lunghard Brown Armstrong Full scope all-inclusive price $58,710 $55,800 Total Staff Hours 610 632 Office Location Brea, Ca Bakersfield, Ca Mr. Bryon Grubert representing Lance Soil & Lunghard CPAs (LSL) provided a verbal synopsis of LSL experience in the auditing of government entities. Mr. Eric Xin representing Brown Armstrong Accountancy Corporation also provided a verbal synopsis of Brown Armstrong’s experience in the auditing of government entities. Ms. Melissa Cabezzas representing Brown Armstrong Accountably Corporation added that their firm has a local office in Bakersfield making them easily accessible. Committee member Weir asked the firms what other cities, those which are comparable in size to the City of Bakersfield, if any, they conduct audits for. He also asked how long Brown Armstrong has served as the City’s auditing firm. Mr. Grubert stated his firm currently audits approximately 60-65 government entities in California including Santa Monica, Pasadena, Shafter, and California City. Mr. Xin stated that his firm audits several cities in the central valley area including but not limited to Fresno, Tulare, and Modesto. Finance Director Smith stated Brown Armstrong has been the City’s auditing firm for approximately 24 years out of the last 26 years; there was a different firm from Visalia in place from July of 2005 to June 2007. When that firm declined to continue doing governmental auditing, the City had to select a new firm. Committee member Weir asked if there were any staff concerns having the same auditing firm in place for so many years. City Manager Tandy stated that although the same auditing firm has been place auditing the City’s financials, the firm assigns a new group of personnel to conduct the audits every 5 years, therefore complying with state law and providing a fresh review of the financials. This provides transparency and ensures a fresh pair of eyes to provide new perspectives regarding the City’s financials.   ____________________________________________ Budget and Finance Committee Meeting Agenda Summary Report - April 27, 2017 Page 3 Committee member Weir made a motion to recommend the selection of Brown Armstrong Accountancy Corporation to perform the annual audit work for Fiscal Year 2016-17 with the option of up to four one year extensions to the full City Council for approval. The motion was unanimously approved. Committee Chair Gonzales and Committee Member Weir thanked those representing the auditing firms for the attendance. 5. COMMITTEE COMMENTS There were no Committee comments. 6. ADJOURNMENT The meeting adjourned at 12:22 p.m.