HomeMy WebLinkAboutE-6 Staff Report - Badawi Amendment to PSAFirst Amendment of Auditing Services Agreement
October 7, 2019
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CONSENT ITEM
E-6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES
DATE: OCTOBER 7, 2019
SUBJECT: FIRST AMENDMENT TO THE AGREEMENT WITH BADAWI &
ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS FOR PROFESSIONAL
AUDITING SERVICES
SUMMARY:
The City’s contract for professional auditing services has a term from June 6, 2017 to June 30,
2020 with two optional years to extend. Since the original Agreement date, the City has
requested additional services for preparation of financials for the Public Safety CFD and the
Azusa-RMC JPA.
RECOMMENDATIONS:
Staff recommends that the City Council take the following actions:
1) Approve the first amendment to the professional services agreement with Badawi &
Associates Certified Public Accountants for auditing services; and
2) Authorize an increase to Badawi & Associates Certified Public Accountants from
$55,680 to $64,680 for fiscal year 2018/19 auditing services and from $111,360 to
$119,360 for optional fiscal years 2019/20 and 2020/21.
ANALYSIS:
The City established a Community Facilities District (CFD) for Public Safety in June 2017 and
started collecting revenues for the CFD in FY 2018/19. Additionally, the City is part of a Joint
Powers Authority (JPA) with the Rivers and Mountains Conservancy, Azusa-RMC JPA, in
which the City’s Chief Financial Officer acts as the Treasurer Auditor Controller for the JPA.
State law requires separate financial statements be prepared for both the CFD and the JPA.
APPROVED
CITY COUNCIL
10/7/2019
First Amendment of Auditing Services Agreement
October 7, 2019
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Badawi & Associates is the City’s financial auditor and has agreed to provide additional
auditing services for the CFD and JPA.
Therefore, Staff seeks to amend the original Auditing Services Agreement’s scope of services
(Exhibit A); and to increase the total compensation (Exhibit B) under the Agreement by $9,000
for fiscal year 2018/19 and $8,000 for the two optional fiscal years 2019/20 and 2020/21.
FISCAL IMPACT:
There will be no fiscal impact to the General Fund as these services will be accounted for under
Fund 68 for the Public Safety CFD and Fund 50 for the Azusa-RMC JPA.
Prepared by: Reviewed and Approved:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachment:
1) First Amendment to Agreement for Professional Services