Staff recommends approval of the agreement amending the contract with Purvis Gray & Company to provide annual independent auditing services pursuant to RFP-05-006 as provided for and approved under Resolution 7365.
Purvis Gray was contracted to provide audit services effective May 31, 2005. The original contract expired with the delivery of the September 30, 2007 Comprehensive Annual Financial Report (CAFR). Consideration was given to bid out the audit process. However, due to the training of new staff and the related pressure of placing the reporting process back in its proper cycle, staff determined that a contract extension is the appropriate course of action. Any change in audit firms, at this time, could impede the continued development of the Accounting Staff. Staff does recommend that a RFP be issued in fiscal year 2009 prior to the expiration of this extension in order to allow for review of price and service.
The amendment reflects a new not to exceed price of $95,000.00 which allows for implementation of new audit standards. The American Institute of Certified Public Accountants (AICPA) has recently issued a series on Statements on Accounting Standards (SAS) that are effective for the fiscal year ends of December 31, 2007 and later. The new standards will result in the auditors performing more audit work in the following areas:
Staff estimates the auditors will need to spend 10% to 20% more time than previously spent on the audit to perform audits once the new SAS becomes effective.
1. Approve the extension of an Agreement with Purvis Gray & Company to provide services as
described herein; or
2. Such alternative action as the Commission may deem appropriate
The new base price of $95,000.00 for the 2007-08 audit is an increase of approximately $8,000.00 over the total costs for the prior year audit and is included in the 2008-09 proposed budget.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _______JB___________
Deputy C.M. ________EFS________
City Manager ___________________
Account No. 001-1331-513-32-10_____
Project No. _____________________
WF No. ________________________
Budget FY 2008-09 Proposed $95,000
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE EXTENSION OPTION OF RESOLUTION 7365 FOR TWO ADDITIONAL YEARS OF AUDIT SERVICE WITH PURVIS GRAY & COMPANY THROUGH AUDIT FOR FISCAL YEAR ENDING SEPTEMBER 30, 2009; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute an agreement with Purvis Gray and Company, whose address is 222 N.E. 1st Street, Gainesville, Florida 32602 for Auditing Services Pursuant to RFP-05-006.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _23rd____ day of _June____ 2008.