A resolution has been prepared to extend the contract with Badawi & Associates, Certified Public Accountants, for an additional two year period to perform the annual audit of the City’s financial records. Staff recommends that the City Council approve this contract extension.

Each year the City is required to conduct an audit of its financial records and transactions.  For the past five years the City engaged the firm of Badawi & Associates to perform the City-wide audit per resolutions No. 4315-12 and 4560-14.  This two year contract extension will be the final one associated with the original contract and will be followed by a request for proposals (RFP) for audit services.

Badawi & Associates has provided excellent service to the City since the inception of this contract.  The City has continued to receive the Government Finance Officers Association (GFOA) certificate for excellence in financial reporting for each year Badawi & Associates has audited the City’s financial records.  The GFOA recommends governmental entities enter into multiyear agreements of at least five years in duration when obtaining audit services of independent auditors.  Agreements of this length allow for greater continuity and minimize the potential for staff disruption in connection with the independent audit.

The proposed cost of the contract extension for the fiscal years ending June 30, 2017 and June 30, 2018 is $82,256 and $84,724 respectively which represents a 3% yearly increase over the June 30, 2016 audit fee.