TITLE
Recommendation to authorize City Auditor to execute an Amendment to Contract No. 33203 with KPMG, LLC to extend the contract term three years to provide annual audit services for the Comprehensive Annual Financial Report and Federal Single Audit for the City of Long Beach and related reporting entities. The contract price will not exceed $857,000 in the first year, which includes six Single Audit programs. Contract price will increase 2.5% for the second and third years.
DISCUSSION
Pursuant to Section 803 of the City Charter, the Office of the City Auditor is charged with ensuring an annual audit of the City’s financial records is performed and an appropriate auditor’s opinion is rendered in accordance with auditing standards generally accepted in the United States.
In March 2013, the Office of the City Auditor issued a Request for Proposal (RFP) to provide external audit services for the audit of the CAFR and the Federal Single Audit for the City of Long Beach and related reporting entities for fiscal years 2013 through 2016. A five-member steering committee comprised of representatives throughout the City reviewed the proposals in depth and conducted interviews of the finalists. The committee unanimously selected KPMG, LLC to perform the requested services.
Annual audit services under the current contract will be finished over the next six months. Normally, during this time, this Office would begin the RFP process to assess the audit services with the possibility of procuring a new audit firm. Changing audit firms would require significant staff time to assist a new audit firm in understanding basic City operations, system structures, and internal processes. Currently, City resources are not available to transition new auditors because the City is in the process of implementing a Citywide Enterprise Resource Planning (ERP) system that involves 17 software modules, including financial and human resource applications. This is one of the larges...
Click here for full text