TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 33203 with KPMG LLP, a Delaware limited liability partnership, of Irvine, CA, for specialized services in connection with the annual financial audits, to increase the contract amount by $931,000, for a revised total contract amount not to exceed $9,131,476, and extend the term of the contract to June 30, 2023. (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 33203 with KPMG LLP, by $931,000 and extend the term of the contract to June 30, 2023, for continued external auditing services for the annual financial audits for Fiscal Year 2022.
City Council approval is requested to execute an amendment to Contract No. 33203 to allow for execution of these services to the City. The City Auditor’s Office and the Financial Management Department both recommend a one-year extension for the KPMG LLP contract to complete the FY 22 Annual Comprehensive Financial Reports (ACFR). Meanwhile, a new RFP is being issued to select a vendor for the FY 23 ACFR and other fiscal years within the terms of the RFP.
This matter was reviewed by Director of Financial Management Kevin Riper, City Controller Ruby Carrillo-Quincey and Purchasing Agent Michelle Wilson on September 7, 2022, Principal Deputy City Attorney Richard Anthony on September 12, 2022, and by Budget Operations and Development Officer Rhutu Amin Gharib on October 4, 2022.
TIMING CONSIDERATIONS
City Council action to amend Contract No. 33203 is requested on October 18, 2022, to allow for uninterrupted and timely services for the required FY 22 financial audits.
FISCAL IMPACT
The requested action increases the contract with KPMG LLP in an amount of $931,000. The total amount of the contract will not exceed $9,131,476. The annual cost of the audit services will be allocated to the departments and funds receiving services. Sufficient appropriation is budgeted across various departments and funds. The recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. The award of this contract will provide continued support to our local economy by assisting in the preservation of employment for one full-time employee residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LAURA DOUD
CITY AUDITOR