Agenda

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City Council Regular Meeting

Meeting Date:

07/23/2019

BACKGROUND

The existing auditing services contract with Armstrong, Vaughan & Associates ended after the completion of the FY 2017-18 audit and approval of the annual financial statement at the end of March 2019.

Staff published a Request for Proposals (RFP) for auditing services and received three responses. The Audit Committee consisting of Councilmember Davis, Councilmember Gutierrez, Councilmember Brown, City Manager Mark Browne, Assistant City Manager Brian James, Finance Director James Walters, and Assistant Finance Director Babett Martin, reviewed and scored the responses.

On July 9th, the scores were reviewed by the committee and it was unanimous to recommend a contract with Pattillo, Brown, & Hill to the full council for approval.

GOAL

To have an agreement with an independent audit firm to provide financial audit services.

COMMUNITY BENEFIT

An independent review of a third party auditing firm will help ensure proper financial processes are in place to reduce the risk of fraud and accurately portray the City's financial condition to all stakeholders and citizens.

SUMMARY OF RECOMMENDED ACTION

Approve the proposal from Pattillo, Brown & Hill to provide financial audit services for a three-year term with an option to renew for a two-year term.

FISCAL IMPACT

This cost is approximately the same as with the previous vendor.

City of Schertz Financial Audit (Year 1)	$55,000
Schertz Economic Development Corporation (Year 1)	$6,000
City of Schertz Financial Audit (Year 2)	$55,000
Schertz Economic Development Corporation (Year 2)	$6,000
City of Schertz Financial Audit (Year 3)	$55,000
Schertz Economic Development Corporation (Year 3)	$6,000
City of Schertz Financial Audit (Year 4)	$56,000
Schertz Economic Development Corporation (Year 4)	$6,000
City of Schertz Financial Audit (Year 5)	$56,500
Schertz Economic Development Corporation (Year 5)	$6,000

RECOMMENDATION

Staff recommends the approval of Resolution No. 19-R-85 to accept the proposal from Pattillo, Brown & Hill.

Attachments
19-R-86
Financial Audit Services Summary