Title
Consider a resolution authorizing the Mayor to execute an Engagement Letter with Whitley Penn, LLP for the 2024 financial and compliance audit.
Body
The City’s charter requires an annual audit of the financial records to be performed by an independent certified public accountant. The objective of the audit includes: expressing an opinion as to whether the City’s financial statements are fairly presented in accordance with generally accepted accounting principles; evaluating and reporting on the City’s internal controls related to the financial statements and providing an opinion on the City’s compliance with laws and regulations associated with Uniform Guidance which is related to federal grants the City receives. In addition to audit work, the firm also assists the City with the preparation of the City’s Annual Comprehensive Financial Report.
The audit provides an independent examination of financial records, activities and operations to assess internal control practices, compliance with regulations, grant terms, bond covenants, contractual requirements and fairness of the presentation of the financial information.
The firm also provides valuable ideas and observations intended to help achieve the City’s objectives in maintaining adequate financial controls, policies, and procedures.
This will be the second year of a five-year agreement for these services. The estimated fees for year 2 of this agreement are $108,050. Total estimated cost for the five-year term is $557,210.
The estimated fees per year remaining under this agreement is as follows:
Fiscal Year Estimated Fees
2024 (year 2) $108,050
2025 (year 3) $111,340
2026 (year 4) $114,630
2027 (year 5) $118,190
Cost: $557,210
Source of Funds: General Fund and Utility Fund