Coachella Valley Mosquito and Vector Control District

Board of Trustees Meeting

February 12, 2008


 

Agenda Item:  Old Business

 

Discussion and/or Approval for Appointment of Annual Auditor.

 

Background:

 

On October 15, 2007, the District issued a request for qualifications for auditing services.

 

The District has been using the same auditing firm since fiscal year 2002/2003. The audit for fiscal year 2006/2007 was the fifth annual audit conducted by the same firm. It is normal practice for government agencies to periodically seek bids for auditing services to ensure fees are competitive and to provide a fresh perspective as the District’s records and procedures are reviewed. The District received proposals from three companies who specialize in auditing government agencies: Charles Z. Fedak and Company, Mayer Hoffman McCann P.C., and Teaman, Ramirez and Smith, Inc.

 

Charles Z. Fedak and Company is currently the auditor for a number of mosquito and vector control districts and performed work for our District in 2003. Mayer Hoffman McCann P.C., has experience in auditing special districts, i.e., Coachella Valley Recreation and Parks District, and they are currently the auditors for the Cities of La Quinta, Rancho Mirage, and Palm Springs. Teaman, Ramirez and Smith, Inc., are also experienced in auditing special districts.  They have been the District’s auditors for the last five years.  Their clients include South Orange County Wastewater Authority and the Otay Water District.

 

At the January Finance Committee Meeting, the Committee moved to schedule interviews with the firms of Charles Z. Fedak and Company and Mayer Hoffman McCann P.C. The Committee thought it prudent to engage a new firm to ensure a fresh perspective and, therefore, decided not to include Teaman, Ramirez and Smith, Inc in the interview process. The interviews will take place at the next Finance Committee meeting on Tuesday, February 12, 2008, the day of the Board Meeting.

 

Staff Recommendation:

 

Because the Finance Committee meeting is scheduled following the distribution of the Board Packet, the Finance Committee will review and make its recommendations to the Board of Trustees at the February 12, 2008, meeting.

 

 

 

Fiscal Impact:

 

Following are the cost proposals from each of the auditing firms for a three year period. The funds will come from Misc. Professional Fees budget line # 6095.01.225.

 

Auditing Firm

First Year

Second Year

Third Year

Total

Charles Z. Fedak & Company

$13,000

$13,590

$14,180

$40,770

Mayer Hoffman McCann P.C

$21,000

$21,630

$22,280

$64,910