TITLE
Recommendation to authorize City Manager to amend the agreement with KPMG, LLC to exercise the two one-year options to perform the audit of the Comprehensive Annual Financial Report (CAFR) and perform the Federal Single Audit for the City of Long Beach and related reporting entities in an amount not to exceed $994,865 per year covering fiscal years 2010 and 2011; and extend the term of the agreement to September 30, 2012.
DISCUSSION
Pursuant to Section 803 of the City Charter, the Office of the City Auditor is charged with causing "an annual audit of the City's financial records" and rendering an appropriate auditor's opinion thereon in accordance with auditing standards generally accepted in the United States.
In August 2007, the Office of the City Auditor issued a Request for Proposal (RFP) to perform the annual audit of the CAFR and the Federal Single Audit for the City of Long Beach and related reporting entities. Six auditing firms responded to the RFP. An eight-member steering committee reviewed the proposals in depth and conducted interviews of the finalists. The committee unanimously selected KPMG to perform the requested services.
The original term of the contract covered fiscal years 2007 through 2009 and included two one-year renewal options the City could exercise for fiscal years 2010 and 2011. The City has contracted these auditing services with KPMG for 19 of the last 20 years. Over the years, KPMG has developed a solid knowledge of the City, its multiple reporting entities and complex operations. Exercising the renewal options will allow continuity of audit services, which is critical to meet reporting deadlines required by bond and other debt covenants, as well as audit requirements for Federal grants including American Recovery and Reinvestment Act funds.
TIMING CONSIDERATIONS
City Council approval is requested on September 21, 2010, to allow sufficient time for the planning of the audit engagement.
FISCAL IMPACT
The annual cost ...
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