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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
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 |